Chicago, Oct. 10, 2011 – As the industry continues to restructure and tighten lending processes, having an accurate and dependable review process is vital. Through its origination services division, LenderLive Network Inc.’s quality control (QC) offering has found many discrepancies that could have resulted in fines if left unaddressed. Here at the 98th annual Mortgage Banking Convention and Expo, LenderLive, an end-to-end mortgage services provider, reveals several trends it has found in thousands of loans reviewed across its client base.
LenderLive provides QC services to national lenders, who are required to review 10 percent of their volume on a monthly basis. Having a thorough review process prevents lenders from experiencing a myriad of regulatory violations. In a recent review of its QC program findings over a two-year period, LenderLive has been able to detect regulatory issues in nearly a third of the files reviewed; 17 percent of the loans had Good Faith Estimate (GFE) violations, 5 percent had Truth in Lending Act (TILA) violations, and another 5 percent of the files reviewed had some sort of state-level violation.
“If any of these risks were not identified and mitigated, it would result in an unsellable loan that the lender would have to hold on their books,” explained Donna Clayton, senior vice president of risk management at LenderLive. “Left unchecked, GFE and TILA violations can be costly to a lender, not to mention the possibility of an unacceptable audit finding for a state regulator due to incorrect borrower disclosure or information.”
This level of consistent, detailed review encouraged Wheat Ridge, Colo.-based America’s Mortgage, LLC to enlist the quality control services from LenderLive.
“In the midst of the most recent explosion of new regulations, it is crucial to have confidence in our loan production,” said Tom Kennedy, CEO of America’s Mortgage. “It is important to us to work with a business partner that offers user-friendly file formats and a quality control team that is very responsive to our needs.”
America’s Mortgage, a full-service mortgage banker with access to the majority of major mortgage investors throughout the U. S., has 76 loan officers in two locations. According to Kennedy, the lender started working with LenderLive because it provides a high level of service in addition to advanced technology and detailed reporting. America’s Mortgage has always had quality loan production, and LenderLive has helped the company identify areas that can improve efficiency so the lender can maintain good QC results, he added.
“We have found that LenderLive has the knowledge and expertise to give us the peace of mind that comes with knowing that our loans are being produced correctly and are compliant,” Kennedy said.
According to Rick Seehausen, CEO of LenderLive, “The new regulatory climate has made it imperative for lenders and servicers to do everything they can to ensure that their portfolios are flawless. Through our five divisions, LenderLive has the services that offer our clients a peace of mind knowing that we provide the highest level of compliance protection that they need now and moving forward.”