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The most effective loan quality technology should create transparency and consistently track quality metrics across the team and the business. Automation plays a critical role in creating purified data, taking on the brunt of audit tasks, facilitating auditor workflows and focusing staff on managing system identified exceptions. Accurate centralized reporting is also a key benefit and critical for establishing and measuring benchmarks for your team.
If you’re looking to adopt new loan quality management technology or work with a new audit service provider, understanding realistic benchmarks for success is important. Below we share a few benchmarks achieved by our clients and by our own services staff who utilize LoanLogics’ audit technology, LoanHD®, day in and day out.
Post Close – Auditors can complete as many as seven to eight post close loan file reviews (credit and collateral) per day. When it comes to post close audit results, can be complete well within 30 days and released on a flow basis, eliminating month-end bottlenecks and exceeding the industry average.
One lender was even able to bring QC in house, moving away from vendor void of automation and flexibility, at a 40% savings. Robust reporting in LoanHD even helped them provided more effective insights back to the business.
TRID Compliance – Efficiency is even more dramatic for compliance reviews, where productivity averages 18 or more reviews per staff member each day.
HMDA – Greater than 90% of the tests surrounding the HMDA audit are automated, clearing loans with no defects, so staff can focus only on the issues. As a result, loan file reviews can be performed in under five minutes.
Prefund– A large correspondent client of LoanLogics was able to dramatically improve productivity, (by 300%!!!) working with LoanLogics technology internally. They reduced turn-time on STIPS back to their sellers from 3-7 business days to just 24-48 hours.
As an audit service provider, leveraging our own technology, LoanLogics also has direct experience in developing best practices for embracing technology, optimizing resources, managing retention and hiring audit staff. We shared these best practices for embracing technology in a 2019 blog post.
For a more robust guide to audit mastery leveraging automation, download our white paper. “For Mortgage Loans, Audit Mastery Takes Technology.”
To learn more about our audit technology or loan quality audit services, visit our website.
