Business Process Services
QUALITY CONTROL & AUDIT
Elevate Your Expectations
Quality Control is mandated by regulators and agencies, however, there are clear benefits to evaluating your processes and loans, including higher closed loan rates, more efficient loan production or servicing, and reduced business and transaction risk. Consolidated Analytics’ Quality Control and Audit solutions help mortgage lenders and servicers capture defects, pinpoint trends, source root cause, and take steps to correct actions related to loans, people, processes, and technology.
Quality at Every Stage of the Mortgage Life Cycle
We provide Quality Control (QC) services for pre- and post-close origination, loan administration, default servicing QC, and operations. Our solutions help mortgage industry participants:
- Meet agency, regulator, and investor guidelines
- Accelerate acquisition times and improves loan salability
- Reduce repurchase or “buy-back” risk
- Reduce overhead cost associated with your internal QC process
- Capture defects early and pinpoint trend source and root cause
- Enable corrective action related to people, processes, and technology
- Drive a high-quality, efficient origination or servicing operations
Comprehensive Quality Control and Audit
Consolidated Analytics’ review staff and subject matter experts keep you compliant with regulation and investor requirements, and ensure your operations are in-line with best practices. Our QC and audit staff have extensive experience in origination and servicing operations, and are knowledgeable in a broad range of residential asset types including GSE, Agency, Conventional, FHA, Home Equity, and Reverse. We offer you multiple service level options that solve for long-term QC oversight, or monthly portfolio QC. Or, by integrating our QC leadership and management with the client’s existing processes, we deliver a complete turn-key solution.
By focusing on loan quality pre-fund, originators and correspondents can proactively capture defects and take corrective action to improve loan and operational quality. Our comprehensive QC solutions help you ensure data integrity, underwriting accuracy, and documentation of your pre-fund and pre-close loans. As part of this service, we:
- Review a sampling of loans that are consistent with regulatory or agency requirements and mirror characteristics or circumstances related to errors
- Provide granular review, validation, re-calculation, and re-verification of data entered into your AUS such as Debt-to-Income (DTI), Loan To Value (LTV), income, assets, credit report comparisons, and more
- Review all relevant and critical transaction information and closing documents, ensuring details are accurate, correct, and consistent
- Provides findings and reports within the agreed-upon timelines
Consolidated Analytics’ post-close QC review ensures that originators are in compliance with Ginnie Mae and GSE selling guidelines, and/or investor guidelines to improve salability and foster seamless secondary market execution. Our post-close QC:
- Ensures a solid sampling of loans including random, targeted, and discretionary
- Analyzes data integrity, accuracy, and completeness in the original loan file
- Re-verifies appraisal/eligibility, income, assets, fraud; and documentation
- Refreshes credit reports; analyzes and re-calculates credit decisions
- Reviews appraisal and property valuations to ensure alignment with Fannie and Freddie Home Valuation Code of Conduct (HVCC). If a new valuation or supplemental valuation is required, we can support the need with our comprehensive valuation services and analytics solutions.
- Flags and communicates suspected fraud
- Provides comprehensive findings report and/or offers ongoing QC fulfillment
We ensure that our QC services represent the population of your portfolio and utilize statistical and random sampling in compliance with HUD, GSE Loan Quality Initiative (LQI), and FHA requirements. Our servicing QC:
- Re-verifies documentation; and reviews data integrity and escrow handling
- Evaluates loans to ensure compliance with fair lending regulation and servicing guidelines
- Confirms adherence to investor requirements and regulatory requirements
- Reviews delinquent loans; loans in default; and loans in bankruptcy, foreclosure and loss mitigation status
- Evaluates mortgage insurance premium payments for accuracy
Origination and servicing operational audits review org structure, best practices, and compliance with FHA, HUD, Ginnie Mae, and Fannie/Freddie Mac requirements. These comprehensive reviews often used to identify opportunities for corrective action. We review:
- Origination-specific procedures and policies for all functions: application, processing, underwriting and QC through investor delivery
- Servicing specific procedures and policies for all functions: loan admin, QC, escrow, loss mitigation, default, and collections
- Management, leadership, team credentials, qualifications, and team set-up
- Quality Assurance (QA) and Quality Control (QC) documentation and effectiveness
- Technology workflow and compliance checks
- Compliance with best practices and adherence to Agency, FHA, GSE requirements, and investor guidelines