ISGN Corporation has launched a new Quality Control Service for Correspondents, a program for correspondent lenders with warehouse lines of credit that evaluates all quality control points in the origination of mortgage loans, from the submission of a loan application to post-closing. ISGN’s quality control (QC) expertise ensures that mortgage loans are ready for delivery into the secondary market, reducing repurchase risk. The top five banks are facing unprecedented loan repurchase requests, reaching a record high of nearly $25 billion in the first quarter. One of the nation’s top banks recently agreed to buy back $330 million of mortgages from Freddie Mac. Many correspondent lenders are facing higher operational and warehouse line costs associated with home loans that have been refused by investors due to loan quality issues and the difficulty in selling the loans.
ISGN’s QC program provides correspondent lenders with a one-stop shop for evaluating origination quality. It ensures that loan submission and underwriting standards are met, while providing essential post-closing and pre-funding quality control. ISGN’s workflow-based approach to meeting secondary market investor guidelines saves correspondents the expense of loan repurchase requests and it gets loans moving again in warehouse lines. ISGN offers lenders further quality control savings with its highly skilled global facilities, providing around-the-clock services that can highlight quality control results before the next business day.
ISGN currently is assisting one of the nation's top lenders with 100 percent pre-funding loan review, which has reduced the lender’s loan errors by 90 percent. It is targeting the lender’s high-risk areas in post-closing, such as incomplete documentation and income calculation errors. ISGN’s quality control process is dynamic and can be re-targeted to cover any new risk elements that emerge.
“Investing in quality control at strategic points in the origination process can reduce the time a mortgage sits on a warehouse line of credit, freeing the line to originate more loans,” said Anne Politis, president of origination strategy at ISGN Corporation. “Our quality control services can be quickly and seamlessly integrated into the correspondent lender’s processes.”
