Excelling as a mortgage loan servicer takes persistence, determination, and ingenuity… and ensuring compliance with Fannie Mae and Freddie Mac guidelines takes diligence. In this era of rapid technological advancement, resorting to exclusively manual audits and traditional sampling techniques may not suffice. For most servicers it takes expertise and a hybrid approach that leverages technology but also embodies a hands-on aspect that transitions findings into meaningful knowledge. This second blog in our servicing series looks at how the scenario is significantly enhanced with a dedicated industry partner.
One that understands the nuances of your business, especially when it comes to updated guidelines, as well as where and how they impact your specific organization.
Accelerating Your Capabilities with Audit
The government-sponsored enterprises (GSEs) continue to introduce a multitude of technology tools and data solutions that servicers can access; however, servicing is not a one size fits all business. Understanding how to leverage these services amidst changes to both guidelines and the tools themselves necessitates a partnership with your compliance and due diligence audit vendor that goes beyond point solutions and process automation. Navigating these aspects of servicing can be difficult to maneuver. The importance of having guidance as you introduce changes and establish audit parameters is immeasurable. QC Verify helps you develop audit methodologies that don’t simply avoid violations and check the checkboxes, we deliver full-service quality control audit services that include sophisticated technology where needed, so we can meet you where you are, and propel you to the next level as you embrace guideline changes.
Harnessing the Power of Loan Sampling
Loan sampling, an integral component of compliance and due diligence, enables servicers to evaluate their processes and portfolios, while meeting Fannie Mae and Freddie Mac requirements. Traditional sampling methods can become too generic and often overlook the opportunities that can be gained through a more robust approach to file selection and utilization of data findings. By analyzing a smaller, strategically chosen set of loans, servicers can more succinctly identify defects, trends, and potential issues with higher confidence levels. QC Verify works closely with our clients to gain the greatest benefit from sampling findings, assisting with trend analysis, knowledge transfer, and assurance that GSE guidelines are satisfied.
Have You Missed Any Updates?
We are quickly approaching the midyear mark and Fannie Mae alone has already issued seven updates to the Selling, Servicing Guide and other policies directly related to servicing. Freddie Mac has issued two bulletins addressing eight servicing updates. Not all of these pertain to your organization but most of them do. QC Verify undertakes a personalized approach to our servicing relationships that ensures your audits are established to reduce defects, improve accuracy, meet GSE requirements, and also promote your proprietary business requirements. This following list encompasses more recent Lender Letters, Servicing Notices, Bulletins, and Servicing Guide Updates:
· Servicing responsibilities for mortgage loans with resale restriction or shared equity provisions
· Automation of the Non-Routine Litigation form
· Elimination of the MERS system requirement for eMortgages LL-2023-05
· Master Servicing processes and systems SVC-2023-02
· Miscellaneous updates
o Loan property address changes
o Compliance with requirements and laws
o Disaster Response Network™ and Know Your Options™ references LL-202304
· Payment Deferral, Disaster Payments Deferral, and other updates LL-2023-03
· Impact of COVID-19 on Servicing SVC-2023-01
· Pre-foreclosure property preservation
· Miscellaneous updates
o Third-party cost reimbursement
o LL-2022-4 incorporated into Selling Guide
o Corrected Louisiana foreclosure fee Servicing Notice
· Legacy LIBOR Replacement Index
· Updates from previous bulletins
o Custodial Accounts
o Servicing Contract Rights
o Updated fees for BPOs
o Payment Deferrals
o Information Security privacy requirements
o Grant of security interest
o Mortgage file language
· Flex Modifications and Payment Deferrals in Resolve®
QC, Audit and Reverification
In the dynamic world of mortgage servicing, staying compliant with Fannie Mae and Freddie Mac guidelines is paramount. By leveraging innovative approaches to quality control, audit, and reverification, servicers can streamline their operations, enhance accuracy, and ensure adherence to GSE requirements. When you add an innovative third-party partner like QC Verify to this effort, you additionally gain insights, automation, and expertise that is specific to your needs and your unique approach to business.
Continue following our blog series as we next explore FHA servicing updates and advanced reporting. You can also read our previous blog to see how you can reinforce your servicing business. Find out the difference that an industry experienced partner makes as we explore the plethora of agency change, along with the benefits of robust auditing and loan sampling. Strengthen your business and reputation with QC Verify.
Visit us at QCVerify.com to experience the difference that an innovative QC provider can make when the approach is personalized – sophisticated technology with a human touch.