EXPERT THIRD PARTY QUALITY CONTROL AND AUDIT SERVICES
Investor in the secondary market will be looking for evidence of compliance with all the regulations and the soon to be enacted 6/15/15 FHA QC changes.
FULL SERVICE - FHA, VA and Conventional Quality Control reviews
Whether your a Lender, Mortgage Banker or Broker and are looking for an Independent Third Party to perform QC reviews/audits of your closed loans and denials, MCC is here to help.
Mortgage Compliance Consultants can handle ALL your Quality Control needs to keep you compliant. Performing Quality Control reviews/audits is an "ABSOLUTE MUST" for mortgage lenders and yes, even brokers.
MCC QC Services:
- Due Diligence (QC) audits
- Early Payment Defaults
- Cancelled/Denied files
- Quality Control Plans
- State Specific Compliance
- Fraud Detection
Get started now - MCC only charges a per file fee with loan volume and service discounts that are second to none. There are no hidden costs, set up fees or cancellation fees.
QUALITY CONTROL REQUIREMENTS:
To reduce risk and errors, many investors and agency regulations require quality control file audits. To comply with the FHA, Fannie Mae, and Freddie Mac guidelines, the general rules are:
- Audit 10% of your closed and cancelled/denied loan files
- Complete the audit within 90 days of closing
- Audit 100% of EPD loan files (FHA)
- Audit 10% of Cancelled/Denied files
FHA also requires (as part of the overall QC auditing) a field appraisal review completed on 10% of the audited closed loans (or 1% of a company’s closed FHA loans).
Servicing Guide, Part I, Section 404.05: Operational Requirements for All Document Custodians
Requirement to Engage an Independent Third-Party Audit Firm Fannie Mae has been performing on-site reviews of document custodians to determine eligibility and operational compliance. Fannie Mae is now implementing a requirement that document custodians engage the services of an independent third-party audit firm to perform an annual audit to assess eligibility and operational compliance. Document custodians will be responsible for all costs associated with the independent audit. The required compliance dates for the new audit requirements are as follows:
- Document custodians that had a Fannie Mae on-site review completed prior to August 1, 2011, must engage an independent third-party auditor and complete their first annual audit by July 31, 2013. Subsequent audits must be conducted annually thereafter.
- Document custodians that had or will have a Fannie Mae on-site review completed during the period August 1, 2011, to July 31, 2012, must engage an independent third-party auditor and complete their first annual audit by December 31, 2013. Subsequent audits must be conducted annually thereafter.
HUD's new QC requirements:
"The adoption and implementation of a Quality Control Plan is a required of a lender’s application for approval to participate in FHA programs. Beginning January 1, 2011, FHA will neither approve applications for approval as a loan correspondent, nor monitor lenders acting in such capacity for the purpose of the origination of loans submitted for FHA insurance.All FHA-approved mortgagees, including those in sponsored relationships must have a Quality Control Plan that requires the review of loans that are originated or underwritten."
"For those mortgagees that have Sponsored Third Party Originators, the Quality Control Plan must require the review of loans originated and sold to the mortgagee by each of its Sponsored Third Party Originators. Mortgagees must determine the appropriate sample amount of each Sponsored Third Party Originator’s loans to review based on volume, past experience, and other factors..."