Post-Closing Review

Accurate and actionable loan review propels higher loan sales, faster acquisition timelines and lower repurchase risk

Introduction

Post-Closing Review post closing review

For a whole loan mortgage banker, one of the greatest challenges was staying on top of an evolving compliance environment while meeting a multitude of regulatory requirements.

Challenges

In an ever-changing credit and regulatory environment, the client struggled to address a multitude of challenges. These included stringent requirements on borrower qualifications, enhanced regulatory oversight, and constant compliance updates that resulted in increasingly complex transactions.

Given the potential for severe penalties and delivery expenses, the client wanted to ensure accurate and actionable loan review analyses to greatly reduce buy-back risk, ensure acquisition of quality mortgage loans, and improve delivery timelines – all while reducing acquisition costs.

 

Solution

Opus CMC emerged as the partner of choice given its state-of-the-art systems, coupled with in-depth agency expertise to ensure that all loans meet the requirements for purchase, sale, and mortgage securitization.

We implemented a technology-backed mortgage post-closing review to:

  • Ensure the loan file documentation adheres to the specified guideline requirements.
  • Recalculate LTV, CLTV, income liabilities, and debt-to-income ratios (DTI) and compare them with specified guideline requirements.
  • Analyze asset statements to determine that funds-to-close and reserve requirements meet guidelines.
  • Examine income, employment, assets, and occupancy status for reasonableness.
  • Evaluate regulatory compliance with High-Cost, RESPA, ECOA and other federal and state compliance laws.
  • Assess legal documents against final approved loan terms and product type.
  • Review loan documentation inventory, including final loan documentation review and agency-specific loan documents.
  • Ensure regulatory compliance, including QM/ATR, TRID, Municipal, State and Federal Anti-predatory Lending.

Impact

Stringent independent mortgage due diligence resulted in tangible outcomes including:

  • Increased loan acquisition volume without added staff overhead costs.
  • Enabled seamless scalability for multi-fold growth in origination volumes and correspondent clients.
  • Improved seller client satisfaction by accelerating loan acquisition timelines.
  • Significantly reduced loan delivery buy-back risk after acquisition.

 

 

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