Managing Repurchase Exposure & Risk
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PMF Third-Party Neutral Quality Control Reviews
Fannie Mae’s new Loan Quality Initiative (LQI) mandates:
A Quality Control Plan
exhibits the policies and procedures that companies consider the responsibility
of every employee. This plan follows both requirements of key government
agencies and primary mortgage investors and is a vital resource to ensure a company’s
mission is achieved.
Mortgage Origination needs to be in compliance with Federal and State laws and an effective Quality Control Plan is necessary to ensure that loans are salable in the secondary market and follows Fannie Mae’s Loan Quality Initiative (LQI):
- Lenders are expected to develop and maintain a QC program that meets Fannie Mae requirements.
- Lenders’ QC plans are required to include a Prefunding review process.
- Implementing and maintaining re-verification and review procedure
- QC loan selections must be made within 30 days of closing, and review must be completed within 60 days of selection (previously 90 days). Lenders must notify Fannie Mae if their QC cycle is behind by more than 30 days
- Results from the Lender’s QC audits/reviews must be reported to Senior Management within 30 days after the completed review/audit.
A Quality Control Plan can be labor intensive and costly if not developed thoroughly or not implemented strictly. Make sure your Quality Control Plan is complete, your employees are trained, and your internal control audit and compliance checks on loans are proving the quality control standards set in place. It is Consistency in process and enforcement compared with the implemented written Quality Control Plan that will demonstrate integrity within your mortgage operations.
Mortgage Origination “Third-Party Neutral” quality control is required to stay in business, to avoid unacceptable risk for your company, the correspondent investors and all governmental agencies.
Quality Control Mortgage Loan Review Services include:
- Clear to Close- Prefunding Reviews
- Post Closing Mortgage Loan Reviews
- Fraud Investigation, EPD, Foreclosure & Repurchase
- Mortgage Quality Control Plan Customization
Mortgage Origination “Third-Party Neutral” quality control reviews are critical and required to stay in business, to avoid unacceptable risk for your company, the correspondent investors and all governmental agencies.
