Why does my Mortgage Company Need a Mortgage Quality Control Plan?
1.) To Meet the Requirements of the States when applying for/renewing a License
States hold employers liable for the actions of employees. Without documented policies, the Regulator cannot be sure the employer has established standards of conduct and best practices.
2.) To Answer Operational Concerns of a Regulator
Often lenders do not have sufficient operational, credit policy, or process management support which can result in concerns for examiners. Comprehensive, cohesive policies and procedures are the proper response to this concern
3.) To Meet the Requirements of FNMA, FHLMC, FHA/VA, warehouse lenders and correspondent investors
Written Policies and Procedures are a requirement of the agencies when you apply for status as a seller or servicer
4.) To Remove Legal Liability and Support Errors and Omissions
If you do not have written policies and procedures you have no recourse against your employees in the event of any violations. This is critical if you have to discipline an employee or defend yourself in a Legal Action
5.) To Provide an Internal Training Program
Mundane, repetitive training is managed uniformly. Handle simple tasks that consume an inordinate amount of management time like training:
6.) Avoid Misinformation
In any of these areas documenting the process is time consuming. Worse yet, the instruction for procedures and "how to" do something as simple as determine which credit bureau or appraiser to use tends to change from person to person. This can perpetuate misinformation.
7.) Initial Internal Training for Employees
Avoid repetitive process instruction and redundant errors. Policies and procedures manuals give you the opportunity to train a position specific function. They become the foundation for your internal new employee training program.
States hold employers liable for the actions of employees. Without documented policies, the Regulator cannot be sure the employer has established standards of conduct and best practices.
2.) To Answer Operational Concerns of a Regulator
Often lenders do not have sufficient operational, credit policy, or process management support which can result in concerns for examiners. Comprehensive, cohesive policies and procedures are the proper response to this concern
3.) To Meet the Requirements of FNMA, FHLMC, FHA/VA, warehouse lenders and correspondent investors
Written Policies and Procedures are a requirement of the agencies when you apply for status as a seller or servicer
4.) To Remove Legal Liability and Support Errors and Omissions
If you do not have written policies and procedures you have no recourse against your employees in the event of any violations. This is critical if you have to discipline an employee or defend yourself in a Legal Action
5.) To Provide an Internal Training Program
Mundane, repetitive training is managed uniformly. Handle simple tasks that consume an inordinate amount of management time like training:
- a receptionist how to answer the phones, manage communications, or order supplies
- a new processor to submit a loan, order a credit report or appraisal, or set up a loan
- a newly hired loan officer what the requirements for completing a registration form, lock in agreement, application, or good faith estimate
- an underwriter what the underwriting flow is, who the customers are, the difference between a wholesale submission and retail submission;
- an office manager how to go about hiring, interviewing, reviewing employees or setting up a new branch
6.) Avoid Misinformation
In any of these areas documenting the process is time consuming. Worse yet, the instruction for procedures and "how to" do something as simple as determine which credit bureau or appraiser to use tends to change from person to person. This can perpetuate misinformation.
7.) Initial Internal Training for Employees
Avoid repetitive process instruction and redundant errors. Policies and procedures manuals give you the opportunity to train a position specific function. They become the foundation for your internal new employee training program.
Mortgage Quality Control - Managing the Process
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