defect-clarity-for-mortgage-insurance
Mortgage Loan Quality

In Search of Defect Clarity

In the interests of time, expense and competition, FHA and Private MI companies offered lenders a delegated process for loan insuring. This was great for everyone until the spit hit the fan in 2007. All of a sudden, these loan insurers were carefully reviewing every detail of each defaulted loan to identify any possibility of a lender’s failure to strictly…

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cure-lender-defects-earlier
Mortgage Industry Trends

FHA Reports “No Progress in Lender Defects”

Based on FHA’s most recent Lender Insight newsletter (Insights), FHA lenders are not doing so well in managing their initial gross defects. According to the FHA’s post-endorsement technical reviews, over the past 2 years, the initial unacceptable defect rate is averaging just south of 50%. That means that about half of the loans delivered for FHA insurance have substantial defects.…

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Lower-costs-technology
Mortgage Loan Quality

Reducing the Costs of Compliance

A Stratmore Group study released in March of this year reported that as the direct result of new TRID rules compliance costs increased $210 per loan. The report also indicated the increase was mainly attributable to an increase in staff. So, why the need for more staff when an investment in technology might do the trick? The preparation of the…

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risk-scoring-targeted-sampling
Mortgage Loan Quality

Do You Shotgun Your Loan Reviews?

How are you selecting loans for your pre and post-close reviews? Are you still using the standard random sample method? Is it every 10th loan or some variation? Do you really believe you are getting the best results for the audit dollars you spend? Probably not, if you’re still “shotgunning” your loans for selection. The 10% random selection may satisfy…

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