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Credit Plus Inc. has announced that it will be offering a new loan quality control (QC) program: QC Review, powered by the LoanHD Platform. QC Review enables lenders to run quality assurance checks throughout the entire origination process using real-time QC technology—from pre-closing to closing and beyond.
“Research shows that one-in-five loans wouldn’t pass Qualified Mortgage (QM) standards,” said Greg Holmes, national director of sales and marketing for Credit Plus. “QC Review assures lenders that the loans they fund meet FHA/HUD, Fannie Mae, Freddie Mac, VA, and private investor requirements for prefunding analysis and post-closing audits.”
Using QC Review, lenders can run quality assurance checks to meet their own policies and procedures before initial disclosure, after drawing documents, upon change of circumstances, during post-funding reviews, and more. The platform provides scalable efficiency and an organized method to evaluate granular, verified and validated detail for loan quality audits. QC Review’s insight can help lenders target loan risk, prepare for agency audits, and improve compliance safeguards.
“Should a lender ever find itself facing an audit, buyback or lawsuit, QC Review’s reports can provide valuable information for their defense,” said Holmes. “The platform also supports long-term risk mitigation with business intelligence tools that enable a lender to track trends, patterns and perform root cause analysis to improve loan quality.”
►Pre-closing services: QC Review takes each loan through a series of validations. It re-verifies employment, performs a credit refresh or Undisclosed Debt Verifications, reviews the automated underwriting approval, and confirms compliance with lender, state, and federal guidelines. Results are available in 24 to 48 hours, one of the fastest turn times in the industry.
►Post-closing services: Once a loan closes, QC Review uses proprietary technology to automate audit tasks and enable significant efficiencies when reviewing audit results, performing rebuttals and producing reporting. These audits verify data, such as employment and assets; review both the automated underwriting approval and the appraisal; and transform digital images and scanned documents into granular data that is used to compare documents for inconsistencies, omissions, and compliance thresholds (such as signatures and dates). QC Review can also keep lenders in compliance with the Fannie Mae and Freddie Mac requirement that 10 percent of each type of a lender’s closed loans must be reviewed.
►Forensics review: QC Review can perform a forensics review after closing to uncover any inconsistencies in loan documents and ensure each loan remains in compliance with regulations. These reviews can be customized to search for discrepancies in specific areas of the funded loan, such as employment, identity, assets, and collateral. Results are provided in a summary report that highlights inconsistencies and contains supporting documentation.
Loans that have been underwritten in QC Review have Reps and Warranties insurance coverage included in the cost. Lenders can obtain additional protection against buybacks for underwriting, fraud, compliance and appraisal issues through The Prieston Group’s Reps and Warranties Insurance program. Those who choose this optional program receive a Mortgage Operational Safety Assessment to compare their lending processes against their peers and provide feedback on ensuring compliance using industry best practices.