Mortgage Loan Acquisition Due DiligenceExpert loan review analysis drives higher credit quality, increased deal pull-through, reduced buy-back risks
Introduction
Mortgage lenders and mortgage investors grapple with a multitude of QC related challenges at the point of acquisition – from ensuring accurate documentation to maintaining stringent compliance.
Challenges
No two mortgage loans are alike. This results in several challenges at the point of loan acquisition, including disparate income and debt calculations, disparate or missing documentation, and inconsistent regulatory compliance. Lenders and investors need accurate and actionable mortgage loan review analysis to ensure the acquisition of quality loans, fill gaps in product knowledge, and accelerate delivery timelines.
Solution
Opus CMC offers comprehensive mortgage due diligence services to ensure successful execution.
- Documentation – Confirm each loan file contains material documentation required per lender guidelines and regulatory standards.
- Income – Ensure each loan approval meets income documentation and calculation standards required by lender guidelines and investor overlays.
- Debt ratio – Assess borrower liabilities and recalculate debt-to-income ratio to meet guideline standards.
- Credit history – Examine borrower credit history to ensure conformity to guidelines.
- Regulatory compliance – Ensure proper calculation of financing terms, including annual percentage rates (APR) and finance charges.
- Legal documents – Verify loan terms meet approved terms per underwriting guidelines, loan approvals, and investor overlays.
- Value review – Check whether appraiser was appropriately licensed. Ensure secondary valuation products support the original appraised value, comparable support value, and adjustments.
Impact
Our proven mortgage servicing methodologies drove tangible results for the clients, including higher confidence in credit quality, increased deal pull-through, and reduced buy-back risks.
- Higher loan volume without additional staffing costs
- Enhanced scalability for multi-fold growth in acquisition volumes and corresponding clients
- Improved seller satisfaction due to accelerated timelines
- Significantly lower loan delivery buy-back risk after acquisition
