mortgage pre QC process

How to Make Your Mortgage Pre-fund QC Process More Efficient

November 20, 2019

Pre-fund QC prevents closing loans with defects. It is performed to reinforce consistency in documentation and reduce the risk of fraud and should be designed in a way that supports its ability to isolate, identify, and address defects prior to loan closing. Reviewing pre-funding loan files should provide your origination staff with timely and important feedback regarding defects such as inaccurate data, calculation or analysis errors, or inadequate documentation prior to closing. In this way, the lender does not tarnish its reputation by delivering ineligible or defective loans to Fannie Mae. Any efficient pre-fund QC process enables you to make quick decisions to either move the file to funding and closing or have errors corrected. However, many lenders struggle with developing an efficient pre-fund QC process.

Here are some ways in which you can guarantee that your pre-fund QC process is efficient:

Increased Productivity

You can increase your productivity by using a real-time, automated comparison tool to help you draw comparisons between different documents contained in each loan file to check for trends in defects. Establishing defect trends early on can help you minimize errors, leading to greater efficiency.

Targeted Reviews

One of the ways in which you can ensure greater efficiency in mortgage QC process is by allowing for targeted pre-funding reviews of loan files. By ensuring that your pre-fund QC process involves targeted reviews, larger batches of loan files can be screened in-depth, leading to greater efficiencies.

Improved Document Validation

Another way to gain greater efficiency in your pre-fund QC process is by automatically validating critical documents in your loan files. This can be performed through system automation as it allows you to seamlessly verify whether the required documents are contained in the submitted file or not. Automated document validation leads to faster processing times, which then results in greater efficiencies.

Read Also Mortgage QC Check Should Always Begin at the Origination Stage – Lenders & MLOs Have a Role in Ensuring That

Data Authentication

Effectively authenticating data between documents and your Loan Origination Software (LOS) using a real-time comparison tool can also lead to greater efficiencies. This is because the comparison tool will help you determine whether the data contained in the documents match with that contained in the LOS, leading to fewer instances of double entry, and thus, greater efficiency.

Eliminate Manual Processes

The simplest way to gain greater efficiencies in the mortgage pre-fund QC process is by eliminating manual processes that require human intervention. By replacing such processes with automated solutions, you are able to minimize errors and stand to not only save time, but money as well.

We, at Expert Mortgage Assistance, are well-versed in helping our clients achieve greater efficiencies in their pre-fund QC process. One of recent success has been in assisting one leading residential mortgage lender reduce their pre-fund audit turnaround time from days to 24 hours. They came to us with quality control issues, as errors were only identified after loan closing. Using multi-tier verification measures, thorough appraisal desk reviews, and comprehensive title reviews we helped them generate monthly pre-funding reports that summarized individual audits and cut their operational costs by 50%. If you are looking to make your pre-fund QC process more efficient, talk to the experts.

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