Quality Mortgage Services is offering a tool mortgage banks can use to comply with Fannie Mae’s new requirement to review at least 10% of loans reviewed by quality control vendors.
QMS has updated Mortgage Analysis Review Software, an audit management tool to enable users cope with the most recent
The firm’s CEO, Tommy Duncan, sees these changes as fulfilling vendor management requirements and expects other investors will adopt these risk mitigation policies and procedures to ensure they become an industry standard as soon as possible.
In its Fannie Mae Selling Guide Announcement published on July 30, Fannie states changes may be implemented immediately or no later than Jan. 1, 2014.
It requires lenders to sample 10% of vendor activity including loans with no defects found by the vendor, he said. Most importantly tests and vendor reviews “must be conducted by the lender and not contracted out or outsourced by a different provider.”
MARS is the proprietary software of the Brentwood, Tenn.-based loan quality control and compliance solutions provider uses to audit and review mortgage loans.
The new features include a re-underwriting section, “red flags” checklists for various loan components, regulatory compliance and “desk review” check lists, an editable predefined section that assists with correcting loan defects, standardized letters for performing reverifications, audit comparison reports and the option to create other customized component reports as requested by bank users.
Currently, MARS is available as a standalone application, Duncan said, while the company is working to further consolidate its audit capabilities. QMS was able to immediately implement the aforementioned technology and process demands through QMiS Systems, its mortgage banking back-office support subsidiary located in Cochin, India, he said.
