Verify the income of the borrower with the documents provided
4
Check for updated tax returns
5
Review all disclosures provided by the borrower
6
Approval: Income and Disclosures Review
7
Review the appraisal report
8
Check the property's history for liens or judgments
9
Run the borrower's credit check
10
Evaluate the borrower's debt-to-income ratio
11
Review the title insurance
12
Approve or deny the loan based on research
13
Note reasons for denial, if applicable
14
Prepare a written report detailing the mortgage QC findings
15
Approval: Report by Higher Management
16
Review any exceptions to policy/underwriting guidelines
17
Approval: Exceptions by Compliance Department
18
Prepare final wholesale mortgage quality control checklist
19
Attach all supporting documents and files
20
Deliver the closing documents to the borrower
21
Close the quality control review
Initiate a mortgage file review
Start the process of reviewing the mortgage file. This task sets the foundation for the entire quality control process. By initiating the review, we can ensure that all necessary documents and information are gathered and organized for further evaluation. What challenges or roadblocks might arise during this stage? How can they be overcome? Resources needed: mortgage file, checklist, computer.
1
Initiated
2
In progress
3
Completed
Review the borrower's income documents
Examine the borrower's income documents to ensure accuracy and completeness. This task is crucial to evaluate the borrower's ability to repay the loan. What challenges might arise when reviewing income documents? How can discrepancies or missing information be resolved? Resources needed: borrower's income documents, calculator, computer, checklist.
1
Pay stubs
2
Tax returns
3
Bank statements
4
W-2 forms
5
Other
Verify the income of the borrower with the documents provided
Cross-reference the income stated by the borrower with the supporting income documents. This is a crucial step to verify the accuracy of the borrower's income. How can any inconsistencies or discrepancies be resolved? What resources are needed for this task? Resources needed: income documents provided by the borrower, calculator, computer, checklist.
1
Check calculations
2
Compare with pay stubs
3
Verify with bank statements
4
Review tax returns
5
Other
Check for updated tax returns
Ensure that the borrower's tax returns are up-to-date before proceeding with the mortgage loan. This step is crucial to evaluate the borrower's financial situation accurately. How can you access the most recent tax returns? What challenges might arise when obtaining updated tax returns? Resources needed: computer, tax return documents, checklist.
1
Up-to-date
2
Not up-to-date
3
N/A
Review all disclosures provided by the borrower
Thoroughly examine all disclosures submitted by the borrower. This task helps to assess the borrower's understanding of the mortgage terms and conditions. Are there any challenges when reviewing the disclosures? How can any discrepancies or unclear information be addressed? Resources needed: borrower's disclosures, computer, checklist.
1
Loan estimate
2
Closing disclosure
3
Truth in Lending Act (TILA)
4
RESPA: Real Estate Settlement Procedures Act
5
Other
Approval: Income and Disclosures Review
Will be submitted for approval:
Review the borrower's income documents
Will be submitted
Review all disclosures provided by the borrower
Will be submitted
Review the appraisal report
Evaluate the property's appraised value and the accuracy of the appraisal report. This task is crucial to determine the adequacy of the collateral for the mortgage loan. What resources are needed to review the appraisal report? How can potential appraisal discrepancies be addressed? Resources needed: appraisal report, computer, checklist.
1
Approved
2
Needs review
3
Dissatisfied
4
Not applicable
Check the property's history for liens or judgments
Conduct a thorough search to identify any liens or judgments against the property. This task is important to ensure the property can serve as adequate collateral for the mortgage loan. How can any identified liens or judgments be addressed? What resources are needed for this task? Resources needed: property information, public records, computer, checklist.
1
Check county records
2
Review title insurance
3
Evaluate previous sale records
4
Verify with property owner
5
Other
Run the borrower's credit check
Perform a credit check on the borrower to evaluate their creditworthiness. This step is crucial to assess the borrower's ability to manage financial obligations. How can challenges related to credit history be addressed? What resources are needed to run the credit check? Resources needed: borrower's personal information, credit check software, computer, checklist.
1
Equifax
2
Experian
3
TransUnion
4
Other
Evaluate the borrower's debt-to-income ratio
Calculate and analyze the borrower's debt-to-income ratio to assess their ability to manage their existing and new debt obligations. This step helps determine their financial stability and repayment capacity. What challenges might arise when evaluating the debt-to-income ratio? How can potential issues be resolved? Resources needed: borrower's financial information, calculator, computer, checklist.
Review the title insurance
Thoroughly examine the title insurance to ensure it provides sufficient coverage for the mortgage loan. This task is vital to protect the lender's and borrower's interests in the property. What challenges might arise when reviewing the title insurance? How can any potential issues be resolved? Resources needed: title insurance documents, computer, checklist.
1
Sufficient coverage
2
Needs revision
3
Unclear
4
Not applicable
Approve or deny the loan based on research
Based on the research and evaluation conducted throughout the quality control process, make a decision to approve or deny the loan. The decision should be based on accurate and comprehensive information gathered. What criteria are used to approve or deny the loan? How should the decision-making process be documented? Resources needed: research findings, decision guidelines, computer, checklist.
1
Approved
2
Denied
Note reasons for denial, if applicable
If the loan is denied, provide a detailed explanation of the reasons for denial. This is critical for maintaining transparency and ensuring compliance with regulatory requirements. What specific details should be included in the explanation? How can the information be documented accurately? Resources needed: denial criteria, computer, checklist.
Prepare a written report detailing the mortgage QC findings
Compose a comprehensive written report summarizing the mortgage quality control findings. This report serves as an official documentation of the review process and its outcomes. What sections should be included in the report? How can the information be organized effectively? Resources needed: report template, research findings, computer, checklist.
Approval: Report by Higher Management
Will be submitted for approval:
Prepare a written report detailing the mortgage QC findings
Will be submitted
Review any exceptions to policy/underwriting guidelines
Review and evaluate any exceptions or deviations from the established policy or underwriting guidelines. This step helps ensure that any exceptions are justified and properly documented. What criteria should be used to assess exceptions? How can the information be documented accurately? Resources needed: policy/guidelines documentation, exceptions log, computer, checklist.
1
Income exception
2
Credit exception
3
Collateral exception
4
Guideline exception
5
Other
Approval: Exceptions by Compliance Department
Will be submitted for approval:
Review any exceptions to policy/underwriting guidelines
Will be submitted
Prepare final wholesale mortgage quality control checklist
Create the final checklist summarizing the wholesale mortgage quality control process. This checklist ensures that all necessary steps have been completed and serves as a reference for future audits. How should the checklist be organized? What key information should be included? Resources needed: checklist template, completed tasks information, computer.
Attach all supporting documents and files
Gather and attach all supporting documents and files related to the wholesale mortgage quality control process. This step ensures that all necessary information is easily accessible and organized for future reference. What types of documents and files should be attached? How can they be labeled for easy identification? Resources needed: supporting documents, computer, file storage system.
Deliver the closing documents to the borrower
Send the closing documents to the borrower to complete the mortgage loan process. This task ensures that all necessary paperwork is provided to the borrower for finalization. How should the closing documents be delivered? What verification or tracking methods should be used? Resources needed: closing documents, email or mailing system, checklist.
Close the quality control review
Conclude the wholesale mortgage quality control review process. This task ensures that all necessary steps have been completed and documented. How should the completion of the review be documented? What follow-up actions, if any, should be initiated? Resources needed: completion checklist, computer.
