Quality control is a critical aspect of mortgage services and involves tedious regulations that demand intense efforts and time. It’s of paramount importance for you to implement well-planned processes to quality control while simultaneously managing the multiple other daily tasks to achieve the desired results. The following tips would help you with quality control in all phases of the transaction - pre-closing, closing, and post-closing and would also enable you to manage your clientele better.
A Detailed & Written Process
It’s likely that you already have a quality control plan in place but it might not be followed by your entire team. Here, a detailed process refers to one that includes end-to-end steps involved in taking a loan, regardless of the scenario. For successful quality control, it’s imperative for the QC process to include a few critical bullet points. For a better understanding, these points are explained below.
For Pre-Closing QC
The QC process for the pre-closing phase begins with the first contact with the client. To avoid any last-minute inconveniences or troubles, expectations should be set up front. Besides other points, the pre-closing QC process should include the following:
- A complete loan application with all the necessary signatures.
- The credit report of the client verified along with their credit rating.
- Verification of employment (VOE).
- Correct calculation of the debt to income ratio.
For Closing QC
The overall QC process depends heavily on the closing quality control processes. Here, too, setting the expectations clear is important for the closing process to be smooth. The ideal closing QC process includes the following:
- Ensuring the accuracy of the closing statement (HUD-1).
- Correct calculation of all fees and transparent disclosing of the fees on the HUD-1 statement.
- The loan amount funded matches the amount mentioned in other documents.
- All regulatory disclosures provided to and executed satisfactorily by the borrower.
- Copies of all necessary legal documents obtained and filed for record retention regulation purposes.
For Post-Closing QC
The critical components of a well-drafted post-closing process include the following components:
- A thorough review of the documents to ensure the completion of all pre-closing QC processes.
- All outstanding issues and requests completed from the pre-closing section of the QC process.
- All loan documents obtained and filed to prepare for the loan sale and securitization.
Outsource Critical Quality Control Tasks
Delegating the quality-control of mortgage post-closing support, pre-closing, closing processes to your employees might produce good results but it’s an outrageously expensive practice. To deal with this obstacle, most mortgage companies around the world outsource the quality control tasks to external experts. The multiple benefits of this move include better loan compliance, lower operating costs, and the relief from the stress of hiring, training and managing employees for the role. By working with a reputable external vendor, you hand over the tasks to an experienced and dedicated team of experts. This allows you to focus on other areas of the business including connecting with more prospects and clients, building a solid reputation, and closing more loans efficiently.
