Loan-level Servicing Compliance ReviewComprehensive due diligence solution drives superior quality and rigorous compliance
Introduction
A top 10 U.S. mortgage company – with a significant presence in the private label servicing sector – faced unprecedented pressure to administer loans efficiently, while ensuring rigorous compliance in a dynamic mortgage and regulatory landscape.
Challenges
The mortgage servicer was under intense pressure from investors, government entities, and regulators to administer loans efficiently and accurately – all while addressing existing and evolving regulatory requirements. They sought the assistance of a proven due-diligence provider to navigate the tough balancing act.
Solution
The servicer chose to partner with Opus CMC given its proven ability to assess servicers and sub-servicers capabilities to operate within the constraints of the transactional agreements, prudent servicing standards, and the ever-changing servicing environment.
Our team of experts deployed a comprehensive mortgage due diligence solution where we:
- Conducted monthly battery of tests on 40+ processes surrounding mortgage servicing regulatory requirements.
- Identified areas of potential operational and regulatory risk based on current servicing procedures and practices.
- Pinpointed loan level process defects and observations relating to the sample population of loans reviewed.
- Provided monthly Executive Summary and Exception Detail Reporting (with trending analysis outlining month to month findings) for prompt review and remediation.
Impact
Unbiased and independent mortgage review through regular testing resulted in reliable and timely identification of process defects, driving efficient and accurate loan administration and default management.
- Empowered the client’s QC group to work across key functions, effectively identifying and resolving exceptions and gaps in current servicing processes.
- Improved overall levels of quality with the servicing operation, including updating procedures.
- Ensured rigorous compliance with investor and regulatory requirements for monthly QC program.
- Provided specific recommendations pertaining to the accuracy of sample population report, enabling the client to further modify and refine selection criteria.
