ISGN Releases Loan Quality Audit And Monitoring Service

Posted by Orb Staff on September 14, 2010 No Comments
Categories : Residential Mortgage

ISGN has launched its Loan Quality Audit and Monitoring Service, which the company says helps lenders prevent errors in mortgage loan files. Such errors – which can stem from the misrepresentation of borrower income or employment, the overstatement of appraisals, as well as errors and omissions – can lead to investor buy-back requests and delayed closings, ISGN says.

The new Loan Quality Audit and Monitoring Service includes quality assurance plan review and creation, desk appraisal assessment, underwriting evaluation, compliance review, third-party re-verifications, credit report reviews, field appraisal reviews, pre-funding quality control, and post closing reviews.

Red flag reviews are conducted on all loans to identify indicators of fraud or misrepresentations, ISGN says, adding that loans to be reviewed are selected using statistical, discretionary and targeted sampling.

"Loan buybacks can significantly impact a mortgage lender's bottom line,’ says Niraj Patel, president of ISGN. ‘Therefore, it is crucial for lenders to frequently audit the quality of their loans, and reps and warranties so they don't suffer any unanticipated financial hit."

SOURCE: ISGN

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