Explore our Mortgage Quality Control Checklist PDF for a comprehensive, step-by-step guide to navigate through the intricate mortgage loan process.
1
Gather borrower's information
2
Verify the borrower's employment
3
Check borrower's credit history
4
Evaluate the property (appraisal)
5
Assess the adequacy of borrower's income
6
Analyze borrower's liabilities
7
Calculate Loan-to-Value (LTV) ratio
8
Determine borrower's ability to pay (DTI ratio)
9
Assess the loan risk (risk rating)
10
Assure compliance with program requirements
11
Verify the use of correct mortgage rate
12
Approval: Underwriter check & sign-off
13
Prepare initial disclosure package
14
Send for borrower's signing
15
Receipt of signed package from borrower
16
Check the completeness and accuracy of signed documents
17
Prepare & send mortgage package to closing department
18
Approval: Final compliance review
19
Issuing & sending final Closing Disclosure
20
Final loan closing
Gather borrower's information
This task is crucial as it involves collecting all the necessary information about the borrower. It includes personal details, contact information, and identifying documents. The accuracy and completeness of this information will ensure a smooth loan process. What information do you need to collect from the borrower? Are there any specific forms or documents required?
Verify the borrower's employment
Verifying the borrower's employment is vital in assessing their ability to repay the mortgage. Verification can be done by contacting the employer directly or through income documentation. What steps will you take to verify the borrower's employment? Do you have a preferred method of contact with the employer?
Check borrower's credit history
This task involves reviewing the borrower's credit history and credit score. It helps determine the borrower's creditworthiness and ability to manage debt. How will you obtain the borrower's credit history? Are there any specific credit bureaus or reports you will refer to?
Evaluate the property (appraisal)
During this task, the property will be appraised to assess its value and condition. It helps determine the loan amount and ensures the property meets the lender's requirements. How will you conduct the property appraisal? Are there any specific criteria or regulations you will follow?
1
Full Appraisal
2
Drive-By Appraisal
3
Desktop Appraisal
Assess the adequacy of borrower's income
Evaluating the borrower's income is essential in determining their ability to make mortgage payments. It involves reviewing income documentation and calculating the borrower's debt-to-income ratio (DTI). How will you assess the borrower's income? What is the acceptable DTI ratio for the loan program?
Analyze borrower's liabilities
Analyzing the borrower's liabilities helps determine their financial obligations and potential risks. It includes reviewing existing loans, credit card debt, and other financial liabilities. How will you analyze the borrower's liabilities? Do you have any specific criteria or calculations for assessing risk?
Calculate Loan-to-Value (LTV) ratio
Calculating the Loan-to-Value (LTV) ratio is crucial in assessing the risk associated with the mortgage. It is the ratio of the loan amount to the appraised value of the property. How will you calculate the LTV ratio? What is the acceptable LTV ratio for the loan program?
Determine borrower's ability to pay (DTI ratio)
Assessing the borrower's ability to pay is important for verifying if they can afford the mortgage payment. It involves calculating the borrower's debt-to-income (DTI) ratio based on their income and monthly debt payments. How will you calculate the borrower's DTI ratio? What is the acceptable DTI ratio for the loan program?
Assess the loan risk (risk rating)
This task involves assessing the risk associated with the loan based on various factors. It includes considering the borrower's credit history, income stability, and other relevant factors. The desired result is to assign a risk rating to the loan. How will you assess the loan risk? Have you considered all relevant factors?
1
Excellent
2
Good
3
Fair
4
Poor
1
Very Stable
2
Stable
3
Unstable
1
Low
2
Medium
3
High
1
Low
2
Medium
3
High
Assure compliance with program requirements
This task involves ensuring compliance with the program requirements set by the mortgage lender. It includes reviewing the loan application and documentation to ensure it meets the program's guidelines. The desired result is to confirm compliance with the program requirements. How will you assure compliance with the program requirements? Have you thoroughly reviewed the program guidelines?
1
Minimum Credit Score
2
Loan-to-Value Ratio
3
Debt-to-Income Ratio
1
Verify Minimum Credit Score
2
Calculate Loan-to-Value Ratio
3
Determine Debt-to-Income Ratio
Verify the use of correct mortgage rate
This task involves verifying the use of the correct mortgage rate for the loan. It includes checking the loan agreement and ensuring that the agreed-upon rate is being used. The desired result is to confirm the use of the correct mortgage rate. How will you verify the use of the correct mortgage rate? Have you reviewed the loan agreement?
1
Fixed Rate
2
Adjustable Rate
1
Fixed Rate
2
Adjustable Rate
Approval: Underwriter check & sign-off
Will be submitted for approval:
Gather borrower's information
Will be submitted
Verify the borrower's employment
Will be submitted
Check borrower's credit history
Will be submitted
Evaluate the property (appraisal)
Will be submitted
Assess the adequacy of borrower's income
Will be submitted
Analyze borrower's liabilities
Will be submitted
Calculate Loan-to-Value (LTV) ratio
Will be submitted
Determine borrower's ability to pay (DTI ratio)
Will be submitted
Assess the loan risk (risk rating)
Will be submitted
Assure compliance with program requirements
Will be submitted
Verify the use of correct mortgage rate
Will be submitted
Prepare initial disclosure package
This task involves preparing the initial disclosure package for the borrower. It includes providing all necessary documents and information required by law to the borrower. The desired result is to have the initial disclosure package ready for the borrower. Are you ready to prepare the initial disclosure package? Do you have all the necessary documents?
1
Loan Estimate
2
Mortgage Agreement
3
Truth in Lending Statement
Send for borrower's signing
This task involves sending the initial disclosure package to the borrower for their signing. It includes providing clear instructions on how to review and sign the documents. The desired result is to have the borrower sign the documents. How will you send the initial disclosure package to the borrower? Do you have their contact information?
Initial Disclosure Package for Mortgage
Receipt of signed package from borrower
This task involves receiving the signed initial disclosure package from the borrower. It includes confirming that all necessary documents have been signed and returned. The desired result is to have the signed package in hand. How will you receive the signed package from the borrower? Have you provided clear instructions for returning the signed documents?
Signed Initial Disclosure Package Received
Check the completeness and accuracy of signed documents
This task involves checking the completeness and accuracy of the signed documents received from the borrower. It includes reviewing each document for any missing or incorrect information. The desired result is to confirm that all documents are complete and accurate. How will you check the completeness and accuracy of the signed documents? Have you created a checklist for verification?
1
Loan Estimate
2
Mortgage Agreement
3
Truth in Lending Statement
Prepare & send mortgage package to closing department
This task involves preparing the complete mortgage package and sending it to the closing department. It includes compiling all necessary documents and information for the closing process. The desired result is to have the mortgage package ready for closing. Are you ready to prepare the mortgage package? Do you have all the required documents?
1
Mortgage Agreement
2
Property Appraisal
3
Income Verification Documents
Approval: Final compliance review
Will be submitted for approval:
Prepare initial disclosure package
Will be submitted
Send for borrower's signing
Will be submitted
Receipt of signed package from borrower
Will be submitted
Check the completeness and accuracy of signed documents
Will be submitted
Prepare & send mortgage package to closing department
Will be submitted
Issuing & sending final Closing Disclosure
This task involves issuing and sending the final Closing Disclosure to the borrower. It includes providing a detailed breakdown of the loan terms, closing costs, and other relevant information. The desired result is to have the borrower acknowledge and understand the final closing details. How will you issue and send the final Closing Disclosure? Do you have the necessary information for preparing the disclosure?
Final Closing Disclosure for Mortgage
Final loan closing
This task involves the final loan closing process. It includes meeting with the borrower to complete all necessary paperwork, sign the mortgage documents, and transfer the funds. The desired result is to successfully close the loan. How will you conduct the final loan closing? Have you scheduled the closing date and informed the borrower?
