First American Unit Unveiling Quality Control at Closing Product

FA Business Services LLC, a subsidiary of First American Corp., is unveiling QC@Closing, its new, fully automated loan quality product. The company said the purpose behind the new product is to help lenders avoid or mitigate loan repurchase risk from the government-sponsored enterprises or other secondary market investors.

According to FA Business Services, many lenders do a manual review of loan documents. This kind of review, it added, has limited success in reducing buybacks and can be costly and time-consuming.

Its new QC@Closing product conducts an automated evaluation of the HUD-1 settlement statement and loan data, based on user-defined rules, at a point in the closing process at which corrections can still be made.

Possible risks and discrepancies are flagged for lenders in real time, so that they can identify and act upon them and not delay the loan closing.

Another feature is that QC@Closing stores the actual closing data and results for five years, even after a loan is sold or acquired.

First American said it would be doing demos of QC@Closing at the Mortgage Bankers Association convention trade show in Chicago.