Keeping abreast of an ever-changing and expanding regulatory environment poses formidable challenges to mortgage loan servicers and subservicers.
Our audit specialists review individual servicing records to ascertain a servicer’s overall adherence to applicable statutory and regulatory requirements. This exacting process helps identify servicing aberrations so that they might be remedied before punitive and disciplinary actions can come into play.
In order to ascertain compliance with statutory and regulatory requirements, sophisticated selection algorithms are used to stratify each servicing portfolio so that all servicing “life-events” are properly quantified, identified and sampled. Whether reviewing the actions of a master servicer or a subservicer, this process fulfills a key component of the servicing quality control process.
Our servicing audit process utilizes loan level reviews, such as Foreclosure, Loss Mitigation, ARM Adjustments and Servicing Transfers to gauge compliance with:
- Applicable federal and state mortgage servicing statutes
- Program specific servicing requirements (HECM and HAMP, for example)
- Servicing regulatory requirements promulgated by agencies including Fannie, Freddie, FHA, VA, USDA/RHS, and CFPB
- Recent and historical audit findings are combined to produce quantified, stratified, and trend analyses, enabling servicers and oversight personnel to identify and measure the effectiveness of procedures and establish remediation when necessary.