The advantages and pitfalls of Mortgage post closing quality control
Post-closing quality control process needs to be elaborate to ensure that the hundreds of pages of information contained in the mortgage closing file are highly accurate. It has even grown in importance to overcome the record number of foreclosures in recent years.
The post close QC checklist should meet CFPB and TRID, Fannie Mae, Freddie Mac, FHA, HUD, and VA guidelines and DocVu.AI powers financial institutions to track and manage every step through digital QC process. A QC audit team is run independently within the organization or would be outsourced to a third party. A typical QC checklist evaluate the below-
- The accuracy and completeness of the loan application
- The existence and accuracy of the underwriting documents
- The underwriting decision to confirm it is supported
- The appraisal
- The property eligibility
- Compliance with the mortgage insurer’s guidelines, and documentation of adequate mortgage insurance coverage
- The existence and accuracy of legal and closing documentation
Loan selection sampling
DocVu.AI can trigger the loan selections as per the specific requirements of the financial institutions and build customized workflows to support that. The custom requirements could be to prioritize high risk loan files. Such mechanism helps financial institutions to be always compliant with the regulatory guidelines and in the process ramp up its own risk framework.
Through DocVu.AI, your data and loan files are processed quickly and the information validated and verified for the utmost audit accuracy. This includes not only LOS data, but also data extracted from the core loan documents that make up the transaction. Full re-verifications are performed on the borrower’s income, employment, assets, credit history, etc. and the results of the digital validations are stored for the manual audits.
Integrating with service providers
As per the defined workflow, DocVu.AI can create datasets ready for re-verification of title services or field agents to check occupancy or re-valuation of the attached property. Such a process helps in providing all the necessary information for each service provider at one-go and helps reduce turnaround time with better quality results
One unified portal
With this 360-degree view of the loan files which acts as a single source of truth, auditors can then perform a variety of review services to carry out the post close QC process. As per the audit, the custom report templates can be used to generate post-closing QC report.