Mortgage Post Closing Audit Checklist

The Mortgage Post Closing Audit Checklist assists lenders in creating an in-depth loan file for Fannie Mae, including documents related to credit, legal, property, insurance and miscellaneous matters that satisfy its post-purchase quality control reviews requirements.

Crossing all your t’s and dotting all your i’s are just the first steps of the mortgage process. Once approved by underwriting and conditional approval, a post closing audit must be performed to verify compliance.

Collateral
Anything of value that a lender could seize should the borrower fail to repay his or her loan according to its terms is considered collateral. Most banks utilize a borrower’s home as collateral for mortgage loans, so should repayment obligations not be met, banks take over ownership and sell off the house at a loss recoup their losses by doing so.

Fannie Mae’s post-closing Quality Control collateral risk assessment analysis review guidance and checklist is intended to assist lenders and their QC partners in conducting an effective collateral risk evaluation. This process requires reviewing each appraisal carefully for defects as part of this evaluation process.

Mortgage Post Closing Audit is a time-consuming and complex process, consisting of various steps. These steps include trailing document recovery, HMDA compliant audits, reserve audits and mortgage recording verifications. Lenders can save time by teaming with third-party providers who specialize in effectively handling these processes – this will reduce turnaround time while simultaneously processing more loans in the same amount of time.

Taxes
The mortgage closing process is an integral component of home financing, and should be managed correctly. The closing procedure must include gathering and reviewing all trailing documents relating to your loan including deeds of trust, liens, UCC records, judgments and any other pertinent details such as property taxes. These details must be checked to ensure compliance with local and federal laws by lenders.

Mortgage Post Closing is an essential step in the mortgage lending cycle and should be conducted meticulously prior to selling off on secondary market. Any issues in this step could result in expensive litigation on behalf of lenders.

Lenders can partner with an experienced mortgage post-closing audit service provider such as TENA to reduce costs. Since 1982, this audit provider has provided comprehensive and timely Post-Closing Quality Control audits which comply with Fannie Mae/Freddie Mac/FHA/VA/RHS/USDA state compliance guidelines.

Insurance
As part of the mortgage application process, lenders analyze a range of documents to ensure borrowers can afford their new home. They review your credit report and income sources. In addition to that they ask for documentation such as pay stubs and bank statements as proof. Plus they verify whether or not your property is insured!

Lenders must carefully examine each step of the mortgage process in order to avoid costly errors and avoid violations of CFPB, TRID, Freddie Mac, Fannie Mae guidelines as well as state and federal law. Furthermore, lenders should evaluate collateral loan packages carefully to make sure it satisfies investor standards.

Mortgage post-closing audits are lengthy, technical processes requiring extensive support and expertise from third-party providers. Thankfully, third-party providers specialize in this area and know how to streamline the process and reduce turnaround times so as to provide services for more customers. They specialize in document recovery as well as HMDA compliant audits along with reserve audits, title recording verifications and putting together the ultimate post-closing mortgage loan package.

Settlement Statement
When purchasing a home, the title company or escrow officer will present you with a settlement statement (or closing disclosure), detailing all charges and credits that both parties will incur; some charges may fall on buyers while some on sellers. While it can be daunting to read through such a document carefully with your mortgage professional in order to identify any errors, reviewing this document carefully is well worth your effort in order to ensure nothing slips past them.

This document, similar to a spreadsheet and divided into Debits and Credits sections, will outline what will be paid or deducted from your account at closing. Pay particular attention to Page 2, which lists how much money must be brought to closing with an itemized list of fees contributing towards that total sum – this information can help establish the basis of your new home as well as whether any taxes should be claimed against it.