Quest Advisors provides quality control services consisting of approved loan file QC reviews, adverse action reviews, defaulted file reviews, investor repurchase that satisfy agency requirements.
- Adverse Action Reviews
Quest Advisors will focus on whether an Adverse Action Notice was properly issued within the required timeframe, that the reason for the decline or withdrawal stated on the notice was appropriate, and if the reason for denial or withdrawal was documented in accordance with state and federal regulations. The disclosure is also reviewed to ensure the notice properly communicated the adverse action taken, particularly in light of fair lending requirements and regulator expectations.
- Early Payment Default (EPD) Reviews
Quest Advisors provides quality control focused reviews of loan files that have suffered early payment default, as required by HUD, FHA, VA, Fannie Mae, and Freddie Mac. EPD loans identified by the client can be submitted to Quest Advisors for audit and analysis. The review is focused on assessing the potential reasons for default, whether the lender originated the loan compliance with investor guidelines and documentation requirements, and for any sign of misrepresentation that may exist.
- Investor Repurchase
Quest Advisors will review repurchase requests to determine the validity of the request and/or help determine if there is a documented defense against the repurchase. Quest Advisors may also discover unacceptable trends or practices that if corrected may reduce future repurchase requests. Similarly, mortgage insurance (MI) claim denials can be reviewed by our team to determine the validity of the denial; and to make recommendations to help minimize or avoid future denials.
- Post Closing Quality Control Reviews
Our QC Analysts are trained and experienced in all types of loan programs including Fannie Mae, Freddie Mac, FHA, VA, USDA, Non-Conforming, Conventional, Home Equity, and alternative residential loan programs. Thorough, detailed and expedient reporting is the hallmark of our highly experienced staff. Reports are typically delivered within a thirty-day time frame.
Loan Sample Selection – Random file selection is conducted by either Quest or the client and is consistent with secondary market guidelines or customized to fit additional criteria specified in the client’s Quality Control Plan.
Reverification – Employment, income, credit, asset, and alternative documents in the loan file originally verified by the lender are reverified by a series of mailings, telephone calls, and internet searches to validate the integrity and reasonable accuracy of documents used in the credit decision process.
Appraisal Review – Appraisal review requirements are followed. A full desk review for each appraisal in the loan sample is performed, and a field review is ordered on desk reviews that encounter red flags or if required according to guidelines.
Credit reports – Credit reports are ordered to validate the credit information.
Loan Documentation – Loan file documentation is reviewed for accuracy and compliance. Final figures are recalculated, including APR, finance charges, and closing costs.
Analysis of Approval Decision – Quest reviews the credit-related documentation and recalculates required ratios and funds to close to evaluate the overall credit decision relative to program guidelines.
Fraud Detection – Throughout the loan file review process, Quest remains alert for potential fraud indications when reviewing reverifications, appraisals, and other loan documentation, utilizing third-party fraud detection tools when deemed appropriate.
Management Reporting – Quest will provide detailed, thorough and easy-to-read reports.
- Prefunding
Quest Advisors Prefunding QC review is conducted on a sampling of loans selected by the Client prior to the completion of the loan closing package, but after the loan has cleared pre-closing conditions required by the underwriting approval decision. This provides essential feedback prior to closing.