Lenders continue to look for ways to stem the rising costs of producing a mortgage. One of the main factors contributing to these rising costs is the increased costs of compliance. One main approach to reducing this cost is through the better use of technology. Yet, would it surprise you to find out that compliance ranks fourth on the list…
With all the talk recently about quality and compliance, we need talk about if a lender has an adequate written Quality Control Policy. Do you? Whether you are outsourcing QC or performing it internally, a lender must have a written plan. This policy must clearly outline the scope of what a lender wants, and needs, to ensure their loans are…
For years, lenders were required to perform a quality control review of the loans they closed. Today, lenders need to perform both the post-closing QC review but must also conduct reviews on loans prior to the closing. These required pre and post-closing quality reviews present a great opportunity for lenders to identify potential problems, and they help to indicate where…
Lenders are constantly looking for ways to increase business and bring in more loans. The intent is to increase income and profitability. Unfortunately, many are finding that increased loan volumes alone do not necessarily translate into more profit. In many cases, more loans lead to more expense and increased problems, resulting in a decrease in net profits per loan. If…
“Lenders are doing a better job of originating loans with fewer defects,” according to a report provided by First American Financial Corp in a recent article appearing in National Mortgage News (Higher Spending on Compliance Results in Fewer Errors on Apps). The article stated that The First American Title Loan Application Defect Index decreased again in February after declining steadily…
HUD/FHA’s draft “Origination Through Post-Closing/Endorsement Handbook”, states that loan transactions must be selected for post-closing reviews on a monthly basis with the selection comprising loans closed in the prior month. The loans that are selected for review must be processed within 60 days from the end of the prior one-month period. This is quite a reduction in processing time from…
