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How Lenders Can Stay Assured With Quality Compliant Loans

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Mortgage lending is a competitive market. In recent years, the rising costs, stricter compliance requirements, and the steady increase in loan applications have led to an increase in risks. Lending involves a lot of paperwork, data processing, and verification. This needs human resources and the right tools to ensure accuracy.

Mortgage lenders can end up incurring huge losses if they do not meet the required quality criteria. However, with the ever-increasing volumes, it often goes beyond the scope of lenders to be able to detect issues and originate loans that adhere to compliance. It is in such situations that mortgage outsourcing gains prevalence. Partnering with the Right Vendor can help Mortgage lenders attain 100% Quality Compliant Loans. So, how do Mortgage Service Providers provide assured quality?

1. Expert review of loan files for accuracy and completeness

Mortgage Origination Services begin with a loan setup. Service providers assist mortgage lenders by helping them meet the compliance requirements of critical loan origination processes. This involves loan audits, complete loan portfolio review, all following strict document management processes, and established operational conditions to meet the mortgage quality standards. The Mortgage processing service providers often have a dedicated team to run an in-depth review of all loan critical documentation. The service providers also ensure that the loan application is complete and that all credit reports are verified. The expert team takes responsibility for maintaining quality by ensuring accuracy and completeness.

2. Assured the existence of all documents needed for underwriting, without compromising on accuracy.

Service providers will start by checking whether all data required for underwriting is available. Evaluation of payment history comes next and is followed by calculation of the credit score and checking for any aspects that may affect the loan repayment. The documents and data are verified thoroughly to flag any inaccuracy or gaps. The inconsistencies spotted are rectified before sending it ahead to the underwriter. This stage of pre-checks not only makes the underwriter’s work easier but also helps in speeding up the process. Experienced mortgage service provides even have a re-verification process to ensure data integrity.

3. Verification of all third-party data

Data entry can have certain flaws especially when large volumes are added at a time. The Mortgage service providers go the extra mile by validating the data as well as auditing the automated tools and reports. In certain cases, mortgage service providers use their own software to track gaps and identify loans that need corrective inputs, which ensure the loan approved meets all the prerequisites.

4. Verification of the appraisal, property eligibility, and the mortgage insurance documentation

Guaranteeing that lenders stay assured with quality compliant loans requires verifications and re-verifications. Service providers run multiple checks to make sure that the lender is issuing a good loan that has an assured payback. The borrower’s income, employment, assets, and credit history, along with the eligibility of the property and insurance details, are all verified to detect any irregularity, before the loan amount is sanctioned.

5. A final check of all compliance with federal, state, and any other local regulations

Quality compliance requires expertise. Mortgage service providers specializing in loan origination stay current with the changes in regulations coming from all the major GSEs. The custom mortgage services are created to mitigate risks involved in loan origination and ensure that the compliance standards are adhered to.

Lending is often regulated by a range of quality checks during the loan origination process. For mortgage Lenders with enormous volumes, this often means the need for additional personnel or technology support to close loans faster and prevent dropouts. Mortgage Service Outsourcing gives access to a team of experts who can enhance the mortgage process through their experience and critically compare loans with respect to rules and regulations before sending them for funding. So, while finding the right vendor can be a challenge, quality solutions can often be a primary component of the selection criteria.

PrivoCorp is a full-service mortgage solutions provider delivering mortgage origination, servicing, and title solutions. We implement strategic tools and process transformation to address the mortgage industry’s operational and customer experience challenges. Do reach out to us, in case you need any assistance with your mortgage processing. Reach us at

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