Mortgage Compliance Solutions

Quality Assurance

We provide an objective and competent third-party mortgage quality control and mortgage compliance review that will enhance the salability of your mortgage loans at a fraction of the cost of in-house quality control. With Quality Mortgage Services' Quality Assurance Program, you get a committed company that provides a series of services to customers that are not limit to:

  • The reassurance that a knowledgeable team of compliance experts will review each file
  • Total compliance with quality assurance of Fannie Mae, Freddie Mac, FHA, and VA regulations
  • Quality assurance costs adjusted proportionally to production levels
  • An economical alternative to an in-house quality assurance department
  • Professional and comprehensive reports to management
  • The objectivity of an independent third party
  • Prompt turn-around
  • Let us provide a customized program that will fit your specific immediate needs and future goals.

Training

Make it a habit to schedule training often because of the constant changes that occur in the mortgage industry. Compliance regulations change, companies change, and there always seems to be a need for good, qualified staff. Good management of these changes is a key to the success of your business. So, how can you maintain and grow a successful company while staying abreast of all these changes?

Let US help!

Quality Mortgage Services is one of the leading Quality Assurance firms in the nation. We make compliance our business. That's why there is no better solution than Quality Mortgage Services Training Division. We offer specialized training in areas such as...

CONVENTIONAL and FHA LOAN ORIGINATION - LOAN PROCESSING

REGULATORY COMPLIANCE - FHA FUNDAMENTALS

VA FUNDAMENTALS - FHA UNDERWRITING

AUTOMATED UNDERWRITING - AND MORE!

We can even customize a specific mortgage quality control program just for you.

Due Diligence

Due diligence analyst teams are familiar with all aspects of mortgage lending and the related sale or securitization of residential mortgage loans. In addition to our seasoned staff, we maintain a large database of experienced contractors located throughout the US to provide local expertise while minimizing client costs.

HVCC reporting

Section VI of the HVCC, states that 10% of appraisal be review for compliance purpose by using Desk Review, AVM, Field Review, or BTO.

National Mortgage Appraisers and Quality Mortgage Services have joined technologies in order to bring the HVCC compliance to full term by producing HVCC reports for investor and agencies that include:

  • Mortgage Production Report Summary
  • Loan Rating
  • Loan Summary
  • Mortgage File “Player Association”
  • Appraisal Finding
  • Appraiser Rotation Report
  • Appraiser Rotation Production Report (Number & Percentages)
  • Appraiser Equal Opportunity (Minority Percentages)
  • Appraiser Rotation Production Report Year-to-Date (Number & Percentages)
  • Appraisal Grading (Green, Blue, Amber, Red)
  • Red Flags
Most AMCs say they are HVCC compliance but they cannot perform Section VI. What makes Quality Mortgage Services & National Mortgage Appraisers HVCC Reports different from other is that the appraisal review is evaluated with the total loan package and the AMC package producing a report that QC managers need to link fraud and misrepresentation, LTV and credit, and loan risk with the appraisal association.

HVCC QC Plan

Engage National Mortgage Appraisers (NMA) your their Appraisal Management Company (AMC) and Quality Mortgage Services (QMS) as your Quality Control Company. NMA performs the HVCC requirements as set forth by FHFA. QMS performs a minimum 10% appraisal reviews on as required by Federal Housing Administration, Fannie Mae, Freddie Mac or investor loans. The methods to perform these reviews are Desk Reviews, Field Review Appraisals, Automated Valuation Models, and BTO. The appraisal review meets the HVCC Section VI requirements. NMA and QMS share data in order to produce these reports. NMA conduct the rotation with a certification letter that no influence or persuasion was used to obtain values. QMS performs 10% QC sampling on the appraisals. The reports include the following areas:

Exception/Finding Summary Report:

The purpose of this summary is to count the number of exceptions or finding that were found during the appraisal review, list the category of finding and the total of findings for each category. The type of review, loan type, and the name of the appraiser is listed in this summary. This summary is generated by QMS.

Association Player with the Loan Summary:

The purpose of this report is listing all players with the loan during the loan process. The data is used in link analysis when tacking and trending problematic loans. This report is created by QMS.

Appraiser Rotation Summary:

The purpose of this report is to demonstrate fair rotations by NMA. This report list all appraisers used during the reporting period, the percentage of appraisals perform with a total appraisal performed for the reporting period. A year-to-day report is also provided that includes the same reporting information. This data is produced by NMA.

Equal Opportunity Reporting:

HUD ML 96-36 states that equal opportunity for performing appraisals should be awarded to women and minorities. Fannie Mae and Freddie Mac are in conservatorship. Therefore, NMA exercises equal opportunity as directed by the federal government. EO reporting includes ethnicity, gender, percentages of each category and the total of each category. The EO report also includes appraisers ages 55 and above. This data is produced by NMA.

Loan Rating:

QMS audits the entire mortgage loan in a post closing review. A risk rating is assigned from 1 to 4. The rating are:

  • “1” Excellent – The loan contains insignificant or no exceptions.
  • “2” Good – This loan contains minor exceptions and/or errors.
  • “3” Fair – This loan could present future problems for the company.
  • “4” Poor – This loan is questionable and possibly should not have been made.
The purpose for this report is to identify loans marketability on the secondary market and the probability of a default or repurchase. The reason for associating this report as part of the HVCC Report is because collateral has an important role when it comes to appraisal misrepresentation, appraisal fraud, straw buyers, real estate fraud, flipping, and chunking. This report is produced by QMS.

Appraisal Grade:

QMS grades every appraisal it reviews. QMS uses color codes to determine the scoring of the appraisal.

Green – Excellent appraisal

Blue – Minor errors but no problems with values

Amber – Minor errors and some questioning of values and comparables

Red – Incorrect information with values, calculations, and comparables

This report is produced by QMS.

Loan Summary/ Appraisal Report:

This is a comprehensive report that combines many parts of the loan that may have some affect or influence with the appraisal. This information is produced by the auditor when auditing the mortgage file and appraisal. This report ties the loan with the appraisal. The exceptions are listed below the loan summary area with the Red Flags. QMS uses Freddie Mac’s Red Flags as listed in Discovery Gold Through Quality Best Practices Fraud Prevention. This report is produced by QMS auditors.

Prior to any appraisal being order NMA runs a query on every appraiser. NMA has access to QMS’ database enabling it to perform appraiser prescreening. QMS has created a query search on appraisers. QMS has millions of records on appraisers across the United State. Each appraiser is evaluated and associated with loans that were rated by QMS. This empowers NMA to research post closing audits and measure an appraiser’s ability and quality of work. This HVCC QC Plan is only possible by the sharing of data between QMS and NMA. Contact QMS a sample copy of the HVCC report.

Combined efforts of Quality Mortgage Services and National Mortgage Appraisers in providing the HVCC QC Plan and HVCC Section VI Reports.

Quality Control Plan

This all-inclusive QC Plan takes the federal regulations that affect mortgage lending from the Fannie Mae and Freddie Mac Sellers/Servicers Guide and the FHA 4060. 1 Rev. 2, and VA requirements and condenses them into a clear, comprehensive, step-by-step resource for Quality Control Plans. Your Quality Control Plan will be customized exclusively for your company, but will allow for future expansion into different areas and agencies without the need for additional Mortgage QC Plans. Many brokers turn to Quality Mortgage Services for preparing a written Quality Control Plan for their FHA approval. An outline is provided of what most FHA sponsors require. Click 4060.1 FHA Approval to learn more.


Consultations

Quality Mortgage Services personnel are widely known for their broad knowledge base. Former HUD Field Monitors, Underwriters, Mortgage Instructors, and Agency Officials create a wealth of knowledge unsurpassed by any other Quality Assurance company. This knowledge base is at your disposal. Let us help you get the answers that you need.

MARS (Mortgage Analysis Review Software)

MARS is a proprietary web-based software program that maintains and tracks the mortgage audit and provides mortgage compliance reports on mortgage reviews. MARS is available for lease for in-house mortgage compliance departments. MARS is hosted on the servers at Quality Mortgage Services where the data is maintain and managed in a safe and secure environment.



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