What is quality control for a lender?
Lenders originating loans for secondary market sale are required to conduct quality control (QC) reviews on their loan packages. Quality control is an independent re-underwrite of a loan file and verification that the loan complies with both regulatory requirements and investor guidelines.
How long does mortgage quality control take?
The QC Review process normally only takes 24 to 48 hours. A Quality Control mortgage underwriter will review the whole mortgage loan file that was underwritten by the original underwriter. QC Review Underwriter’s role is to make sure there are no errors made.
What is a post closing review?
The post-closing mortgage loan file review process must include a review of the loan to assess the accuracy and integrity of the information used to support the lending decision, the documentation of any defects identified through the review, and an assessment as to whether or not the loan complies with the Selling …
What does QC mean in mortgage?
effective quality control
Reliable and effective quality control (QC) programs are essential to your success in the mortgage industry. Organizations with a commitment to QC recognize that quality begins before an application is taken and continues throughout the entire mortgage origination process.
What does QA mean in mortgage?
Quality Assurance
Mortgage Quality Assurance (QA) & Quality Control (QC) Underwriter.
What activities occur during closing and post closing?
Prior to closing, a number of documents must be prepared. At closing, documents are executed and ownership of the property is transferred to the borrower. Post-closing, the loan docket is completed, documents are filed, and the loan file is forwarded to the Loan Servicing staff.
What happens in post closing mortgage?
“Post Closing” is when the title company dots the i’s and crosses the t’s. This is where all of the documents signed at the closing table are properly filed and/or mailed to the appropriate parties and all necessary payments as itemized on the settlement statement (HUD) are sent out as scheduled.
What is QC in appraisal?
Appraisal quality deficiencies are among the most common defects issued in Fannie Mae’s post-acquisition due diligence reviews. This should be an alarm bell related to one of your key controls – your quality control (QC) results.
What does QC stand for in real estate?
Without it, you’re at risk of making costly errors in sales comparables and relying on unreliable information that can result in lost sales to qualified buyers or bad loans to homebuyers at high risk of default. The purpose of quality control is to minimize the risk of such errors.
What is the Quality Control Review checklist/report?
The Quality Control Review Checklist/Report is placed on top of the left side of the loan file and is used to document the progress of the Quality Control Review. Once all exhibits are assembled, it is used to review and identify deficiencies. All loan level reviews are combined into one report for a cumulative report/executive summary.
What are the loan level quality control program requirements?
Loan Level Quality Control Program Requirements: Timeliness Pre-Closing Reviews – Select sample of mortgages approved by DE underwriter and prior to closing. Must be reviewed on a monthly basis. (A3ai(A)) Post-Closing Reviews Select loans closed in the prior one-month period. Must be reviewed on a monthly basis.
Do mortgage brokers have a role in the quality control process?
There are conflicting interests when dealing with mortgage quality control plans, the quality control process of a wholesale lender and the quality control process of the mortgage broker. Clearly, mortgage brokers do not make loan underwriting decisions, or funding decisions, but must still participate in the post closing review of loans.
What is the quality control program?
The Quality Control program needs to identify loans that could contain deficiencies as early in the closing and delivery process as possible. Company Name implements a system of Quality Reviews through the production process. To this end, the quality control process begins at application and or prior to closing.