LendingOutsourcing Quality Control

By: Debra L. Werschey, Consultant and Manager of Secondary Market Services

With the industry increasingly focusing on quality in the loan origination process, lenders’ quality control (QC) programs are more important than ever. Is your QC program effective in meeting Fannie Mae’s and Freddie Mac’s requirements and mitigating post-purchase risk?

Increasing Industry Regulation
The mortgage industry is struggling with the best ways to incorporate QC processes into a qualified mortgage (QM) world. It’s a difficult, ongoing challenge for many lenders, and new regulations make the process even more difficult. To be sure, the market is more regulated today than ever before and, as recent financial history has shown, the trend of increasing regulation is likely to continue.

Fannie Mae and Freddie Mac and other investors are demanding higher loan quality standards from lenders who want to sell loans to them and have announced their intention to get tougher on mortgage lenders regarding loan quality. The risks of non-compliance today are greater than ever. You can help control your risks by outsourcing your quality control.

Benefits of Outsourcing Your QC Reviews
QC reviews allow lenders to correct loan processes, help to mitigate loan file errors that may be discovered by examiners, and provide data upon which solutions can be based. But, maintaining the QC function in-house can be difficult for community banks given the time, staffing, and expertise needed.

Young & Associates, Inc. provides QC services that satisfy regulatory requirements:

  • Approved loan file reviews
  • ƒƒDenied file reviews
  • Defaulted file reviews

Our strong reputation has been developed through providing quality services, assuring our clients the highest level of professional service available today. We work diligently to keep apprised of the regulatory requirements and, by working with us, you will benefit from our comprehensive and extensive knowledge of the mortgage industry. Additionally, by outsourcing your quality control function, you can shift the QC workload to us and achieve high-quality results at a lower cost to the organization.

Organizations with a commitment to quality control recognize that quality begins before an application is taken and continues throughout the entire mortgage origination process. Young & Associates, Inc. has provided education, outsourcing, and a wide variety of consulting services to community financial institutions for over 37 years. We are committed to your bank’s future success and look forward to assisting you in order to ensure or enhance that success.

To learn more about outsourcing quality control, contact me directly at 1.800.525.9775 or click here to send an email.

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