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#2023085 - 06/25/15 05:15 PM Pre-closing mortgage quality control audit
Rollerman Offline
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I'm hoping to get some feedback on how long it takes a mortgage QC auditor at your bank to complete a single file review.

I know some files are more complex than others so maybe share a range. 30 minutes to an hour? hour to an hour and a half?

Thanks in advance!

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#2023086 - 06/25/15 05:16 PM Re: Pre-closing mortgage quality control audit Rollerman
Skittles Offline
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It depends - like you said. If all of the documentation is there then I'd guess about 30 minutes. Ours recalculates the DTI, etc. If there are errors they are corrected (if it is correctable) and returned to him.

ETA: To clarify, we only perform this review on in-house mortgage loans.
Last edited by Skittles; 06/25/15 06:43 PM. Reason: Added Information
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#2023115 - 06/25/15 06:19 PM Re: Pre-closing mortgage quality control audit Rollerman
Tater Offline
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I do ours and can knock out a file for FNMA or FHLB-MPF in 10-20 minutes based on checklists we've developed. Manual underwriting can take up to 40.
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#2023118 - 06/25/15 06:22 PM Re: Pre-closing mortgage quality control audit Rollerman
Truffle Royale Offline

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About 30 minutes here on average.
To some extent, it depends on the scope of your auditor's review.
Interruptions and fires to put out tag on time when you have to go back and figure out where you were.

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#2023122 - 06/25/15 06:26 PM Re: Pre-closing mortgage quality control audit Rollerman
Rocky P Offline
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It all depends on what you are QC for. If the number of tests are limited, with experience (all documents accessible) it could be 20 minutes. If there are recalculations, tying back information, re-underwriting, again, assuming all information is available and indexed, it could take a few hours to reverify/revalidate everything.
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#2023124 - 06/25/15 06:29 PM Re: Pre-closing mortgage quality control audit Rocky P
Rollerman Offline
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Do you think the latter is typical of pre-closing QC or should be?

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#2023157 - 06/25/15 07:16 PM Re: Pre-closing mortgage quality control audit Rollerman
Truffle Royale Offline

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For PRE-closing, I think a few hours would not be typical. But let me ask this, is the auditor just looking at a sample of files or all files pre-closing? If it's just a sample, they're likely to be doing everything Rocky outlined and then some, in effect redoing everything done up to that point. That would take much more time than just reviewing the work done.

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#2023160 - 06/25/15 07:20 PM Re: Pre-closing mortgage quality control audit Rollerman
Rollerman Offline
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It is a sample and the auditor is a former Underwriter and my concern is that file review is taking too long and maybe diving too deep (1 1/2 to 2 hours per file on average). Seems to me even a thorough pre-closing review shouldn't take so long.

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#2023162 - 06/25/15 07:23 PM Re: Pre-closing mortgage quality control audit Rollerman
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As politely as I can say this, unless the files are being held up from timely delivery to the closing agent (or you're the auditor's boss) what difference does it make how long the review takes? Comparing how long it takes any of us here vs your auditor is meaningless because the scope remains undefined in all cases.

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#2023175 - 06/25/15 07:39 PM Re: Pre-closing mortgage quality control audit Rollerman
Rollerman Offline
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I am the auditor's supervisor. This function was not in my department until recently. I oversee all other types of audits performed, including commercial lending, and understand auditing and what typically goes into it. Admittedly, however, I am not as familiar with Fannie Mae requirements and mortgage QC. That said, it seems odd to me that a full-file audit of a commercial real estate loan takes less time than a pre-closing mortgage audit.

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#2023176 - 06/25/15 07:45 PM Re: Pre-closing mortgage quality control audit Rollerman
Truffle Royale Offline

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May I suggest you ask your question in the audit forum then? Other auditors may be able to give you a better time estimate.

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#2023187 - 06/25/15 08:07 PM Re: Pre-closing mortgage quality control audit Rollerman
rlcarey Online
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If you feel it is taking too long, I guess you need to review exactly what they are checking. The minimum for a pre-closing audit is:

•data entered into an automated underwriting system;

•borrower(s)’ Social Security number(s);

•income calculations and supporting documentation;

•employment documentation, including verbal verification of employment;

•assets needed to close or meet reserve requirements;

•appraisal; and

•documentation of adequate mortgage insurance coverage.

If they are doing more than that, I would be asking why?
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#2023192 - 06/25/15 08:12 PM Re: Pre-closing mortgage quality control audit Rollerman
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I think most of us answering here review the closing package too.

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#2023199 - 06/25/15 08:18 PM Re: Pre-closing mortgage quality control audit Rollerman
rlcarey Online
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FannieMae pre-closing and post closing QCs are two different animals.
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#2023223 - 06/25/15 08:57 PM Re: Pre-closing mortgage quality control audit Rollerman
Rollerman Offline
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Good call on the audit forum. I didn't see that when I posted. I appreciate the responses, they've been helpful.

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