Aug 4 2017

Types of Mortgage Banking Audits #current #interest #rates

#mortgage audit


Mortgage Banking Audits

Post-Closing Audit Solutions

QMS offers comprehensive audit solutions to its clients by using a proven audit methodology through its proprietary MARS auditing software. QMS is staffed with experienced auditors knowledgeable of the many agency and investor guidelines and regulations.

QMS quality control staff is specialized to handle quality control programs while enabling mortgage bankers to reduce costs.

Without a thorough and accurate understanding of present mortgage compliance and agency guidelines, mortgage auditing loses much of its value. Thankfully, there are experts who are active with rule mark ups in the mortgage banking industry that directly affect mortgage quality control programs. You can trust the experts at Quality Mortgage Services to handle your mortgage quality control audit from start to finish.

Early Payment Default

Unfortunate things happen to good people. Mortgage defaults are a major setback for mortgage professionals. Many times mortgage defaults are caused by unfortunate things happening to good borrowers such as a job loss, illness, death, divorce, or other things that disrupt their lives. The industry wants to know why mortgage defaults occur. Mortgage investors and mortgage insurance companies want to find out if there were any poor lending practices during the loan process, or if the file contained material defects.

Repurchase Defense and Loan Buy Back Audits

Quality Mortgage Services has been performing repurchase defense or responses to claim letters before the mortgage periodicals were writing about repurchase defense and loans. There is hundreds of post-closing quality control and QC consultants who claim to be experts in mortgage loan repurchase defense, loan buy back audits, and loan rebuttals. Think about it… do you want a company to perform a rebuttal on a repurchase claim for you who has only been around since the bust of the sub-prime bubble?

There is too much money at risk to trust a green company in such an endeavor. The owner may have performed repurchase rebuttals while working for a large bank somewhere but what about the staff and auditors? With the volume of repurchase claims that the industry is facing, why risk it? Quality Mortgage Services has been addressing repurchase defense and mortgage claim rebuttals since the inception and the QC auditors have proven success.

Federal Regulatory Reviews

Banks and Credit Unions do an outstanding job at staying on top of quality control, especially, when it comes to federal regulatory audits because of the number of banking oversight agencies who dabble in banking. Quality Mortgage Services offers a comprehensive federal regulatory audit for mortgage bankers who need visibility on the regulatory risk in mortgage loans. The lack of mortgage compliance or mortgage servicing compliance may result in agency fines and potential litigation. The federal regulatory audits reports and servicing QC will bring forward regulatory discrepancies so that banks can tighten loan officer training, procedures, and process during the loan process as well as loan servicing. The federal regulatory audits will help the compliance officer see the trends from the various loan types and see weakness in the process.

HMDA Audits

The Home Mortgage Disclosure Act (HMDA) requires financial institutions to report the ethnicity, race, gender, and gross income of mortgage applicants and borrowers. During this process, lenders must also report information regarding the pricing of the loan and whether the loan is subject to the Home Ownership and Equity Protection Act.

Quality Mortgage Services, LLC (QMS) is pleased to offer financial institutions the necessary support to help them stay compliant with the HMDA LAR report and requirements.

Our team of experts is ready to assist you:

  • Evaluate the financial institution’s compliance management system to ensure compliance with HMDA.
  • Validate the financial institution’s internal control, policies and procedures, compliance review and audit procedures for HMDA.
  • Determine the accuracy and delivery of the HMDA LAR Report.
  • Assist in establishing corrective measures to help minimize errors and reporting.
  • Data Entry: QMS will provide data entry into DES for the client and provide an updated .dot file per each submission.
  • HMDA Scrub: QMS will validate the accuracy of the data and provide a report of exceptions.
  • HMDA Correction: QMS will make corrections to the .dot file for the lender’s submission.


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