Mortgage Quality Control Review
Regulatory agencies – such as HUD, Fannie Mae, and Freddie Mac – have collectively strengthened the underwriting and reporting process required of institutions that sell their mortgages to the secondary market. These changes, along with increased regulatory inspection requirements, mandate the need for institutions to ensure that their Mortgage Quality Control Program is appropriate and managed by professionals who understand reporting requirements. RSK’s compliance experts work with financial institutions that sell mortgages to secondary market investors to implement, maintain, and monitor quality control functions.Some key components of our comprehensive Mortgage Quality Control Review program include the verification and review of:
- Legal and credit documentation, property appraisals, underwriting decisions, and servicing functions
- Documentation of income used the original underwriting process
- Re-underwriting of loan files to ensure they are in conformity with the institution’s policy and procedures and those of the secondary market investors
- Sources of funds
- Credit ratings
- Original appraisals which is designed to ensure integrity of the underlying data used
- Compliance with all relevant regulatory rules such as RESPA, ECOA, Truth-in-Lending Act, etc.
- Loans considered to be early payment default
- Other environmental factors, training, and operational controls