The Essentials of Mortgage Post-Closing Review

1. Understanding the Mortgage Post-Closing Process: Mortgage post-closing is the final step in the mortgage process, vital for ensuring the accuracy and compliance of the loan documentation. It involves a thorough review and re-verification of all trailing documents gathered during the mortgage process. This includes checking the originality of documents like the mortgage, any addendums, final title insurance policy, and more. The goal is to ensure everything in the loan is consistent, secure, and adheres to investor guidelines.

2. Key Steps in Post-Closing: The process includes several crucial stages:

• File Review: A detailed examination of every file from the initial application to closing documents, ensuring consistency and adequate support.
• Financial Re-verification: Recalculation and confirmation of financial ratios and borrower’s credit history.
• Report Findings: A comprehensive report is compiled and reviewed for any issues that may render the loan ineligible.
• Appraisal Desk Review: A check on the original appraiser’s work for accuracy and documentation support.

3. Benefits of Outsourcing Post-Closing Services: Many lenders prefer to outsource post-closing services for various reasons:

• Increased Accuracy: Outsourcing firms often have specialized teams ensuring error-free processing.
• Regulatory Compliance: These services ensure absolute adherence to state and global regulations, crucial for secondary market investors.
• Efficiency in Handling Volumes: Outsourced services can manage fluctuating work volumes more effectively than in-house teams.
• Quality Control: These providers implement comprehensive quality control processes, assuring the integrity of the post-closing process.

4. Assembling the Post-Closing Mortgage Loan Package: This step involves collecting and reviewing all documents submitted during the loan process. It’s crucial for ensuring the completeness and accuracy of the loan package, and for evaluating if the file meets requirements for insurance, sale, and fraud protection.

5. Advanced Quality Control Audits: Top providers conduct elaborate quality control audits beyond the standard requirements. These audits include random, targeted, and discretionary checks at multiple levels, ensuring the highest quality of mortgage production.

6. Tax, Insurance, and Reserve Audits: After loan closure, a review of all tax, insurance, and reserve requirements is conducted to ensure compliance and proper standards.

7. Customized Loan Selection and Timeliness in Reviews: Quality control plans include customizable processes for loan selection and ensure timely monthly reviews to comply with major investor requirements.

8. Choosing the Best Post-Closing Vendor: When selecting a post-closing service provider, consider factors like the provider’s experience, fees, range of services offered, and the expertise of their team.