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.
Once again, thanks so much for your help. I think at this point we have a compliant QC process – couldn’t have done it without your assistance. GREAT customer service.Randy C.