SALT LAKE CITY (PRWEB) February 06, 2018
As part of its annual study of tens of thousands of post-close quality control (QC) mortgage audits, MetaSource has identified that one-third of the Top 15 findings in 2017 were closing disclosure related.
In fact, the top three findings were all related to problems with closing disclosures:
- Tolerance Violation
- Calculating Cash-to-Close
- Timing Violations
Why Are Closing Disclosures Such a Problem for Lenders?
“Mortgage lenders continue to struggle with meeting closing disclosure requirements,” said Brady Meadows, Strategic Account Manager for MetaSource. “Lenders should consider a thorough review of their document execution processes to confirm they are up-to-date with requirements," he said.
“While we did see a reduction in TRID related findings in 2017," he added, "we are still experiencing a high number of TRID related findings. We also continue to see a consistent issue with missing documents in all categories.”
What Happened with TRID Causing the Most Mortgage QC Headaches?
Known as TRID, or informally as “Know Before You Owe,” the rules were created by the U.S. Consumer Financial Protection Bureau as part of the Dodd-Frank Act’s mandate to make the mortgage process more transparent for homebuyers.
While TRID compliance issues comprised 12 of the top 15 findings last year, such issues accounted for only six of the top 15 in 2017.
The reduced number of regulatory violations pushed a number of credit defects onto the list, including missing or defective notes, mortgage insurance certificates and DU or AUS Findings reports.
These findings suggest that some processes have been improved even though the mortgage industry is still negotiating the learning curve for the disclosure requirements, which went into effect in early 2016.
As in 2016, income calculation and verification of employment were the two most common credit and collateral related issues in 2017.
The full list of the Top 15 Mortgage QC Findings for 2017 can be found on the MetaSource Mortgage blog.
About MetaSource, LLC:
MetaSource is a technology-focused provider of Business Process Outsourcing (BPO) / Business Process Management (BPM) services integrated with Enterprise Content Management (ECM), workflow solutions, compliance services and customer experience processes. MetaSource helps its clients manage risk, improve quality, increase efficiency and realize their most important goals – with special expertise serving the mortgage industry. MetaSource’s mortgage services include quality control (QC) audits (pre-fund, post-close, servicing, MERS), lien release, whole loan purchase reviews, and more. MetaSource solutions enable its clients to focus on their core business while MetaSource does the rest. More: http://mortgage.metasource.com
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