Our Post Closing QC Audit Reports Package includes all the reports and analysis you need to properly and completely review the effectiveness of your production operations.
We provide an Executive Summary which is a narrative describing the audit process, key facts of the monthly audit and our suggestions, recommendations and matters of concern as applicable.
The Findings Section of the report package contains three groups of reports, All Findings, Loan Document Findings and Compliance Document Findings. Each of these three groups includes loan level detail reports that sorts the findings in several different ways, such as by office, loan type, origination process, and severity. All Findings Reports not only include the finding codes and finding descriptions, but auditor comments which provide a detailed explanation of each finding.
The reports package also includes several Trend Analysis Reports that provide a 12-month history of key facts, such as average findings per file, findings by loan type, findings by origination process, findings by severity and the Overall, Critical, and Important Gross and Net Defect Rates.
We will be happy to send you a sample of our reports package upon request.
Of course, we will use the selection method as outlined in your QC Plan, however, our preferred and recommended method is the Stratified Random Sample Method, whereby we first divide your total production for the month into groups, such as loan type, loan officer and branch office. We then select a minimum of 10% of each group by a simple random basis. We use this method to ensure that the sample of loans selected is statistically representative of the lender’s total book of business.
The industry standard is to audit a minimum of 10% of your closed loans each month. It is also a requirement that additional loans be selected for audit, in addition to the 10% random selection, on a targeted or discretionary basis. Targeted or Discretionary sampling should be used to focus on new types of mortgage products, to evaluate the work of particular employees or branch offices and to focus on the higher risk loans such as high LTV’s, high Qualifying Ratios, and/or low FICO scores. Also, 10% of all denied or rejected loans must be audited.
The best way to send us your loan files is to transmit them to us via our secure file transfer program provided to us by Citrix. When you upload files to us, we get an automated email telling us that you have uploaded the files. When we download the files into our servers, you get an email telling you that we have successfully received the files.
If you would prefer that we use your file transfer program, we can do that as well. Also, if you give us the log in capability, we can audit your files directly from your system should you prefer not to transmit files through the Internet.
HUD & VA require that FHA and VA loans be audited within 90 days of closing. Freddie Mac says that the results of the quality control reviews must be reported in writing to senior management within 90 days of the selection of the files for review.
Fannie Mae requires that the entire post closing quality process be completed within 120 days from the month of loan closing, with the following breakdown: Loans must be selected for audit within 30 days, the quality control review and rebuttal must be completed within 60 days, and the results of the audits must be reported to senior management with in 30 days.
At Culp QC, our method of operation is to provide the lender with a Preliminary Audit Report with in 50 days from the date we receive the selected files for audit. Once we receive the lender’s response to the Preliminary Audit Report, we issue the Final QC Audit Report within 60 days from the receipt of the selected files.
Yes we do. Our Pre-Funding Audit Program has been developed to comply with requirements as set forth by Fannie Mae, Freddie Mac and HUD. We have priced each audit step separately, so a lender can pick and choose the audit steps that fit their current procedures and policies and their risk tolerance levels.
We charge a very competitive per file fee for every file we audit. Additionally, we charge to you the cost of all field review appraisals, credit reports, online verification services and the cost of re-verifying bank statements and VOD’s when the depository charges us. Feel free to contact us for more information and to request our Sales Brochure which will provide you with a description of our services.
We audit all types of loans, including Conventional, FHA, VA, USDA, Rural Housing, Second Mortgages and Reverse Mortgages. We also audit Early Payment Defaults (EPD’s) and rejected/denied loans.
Yes we can. We have a standard QC Plan that has all the ‘bells & whistles’ as required by Fannie Mae, Freddie Mac, HUD, VA and USDA, however you will need to review the standard plan and make any modifications and updates to ensure that the Plan properly describes your company’s policies, procedures and level of acceptable risk. We provide this standard Plan to any one who signs up for our post closing quality control audit program.