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#2087992 - 07/14/16 03:36 PM
Pre-Close Reviews?
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Platinum Poster
Joined: May 2013
Posts: 919
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Hi- Does anyone perform a Pre-Close "Review" of a mortgage loan closing package? Ie: dates correct, all necessary documents are included, correct forms used etc??
As a compliance officer, I do perform this because frankly, our LOS is horrible, and staff is not retaining much of their training (another issue I battle on daily basis)... but it is getting beyond tedious - However, we are heading in a new direction with a new LOS, and there is a lot of "trust" that is going into the new LOS... The goal is to not have to perform "pre-close reviews" and trust the system; deficiencies can be caught in audits. Ultimately removing me from the front end (proactive, spear-head) process and placing me in an auditing (advising) role.
Ideally, they want to see the entire review go away...even once a new LOS has established some trust, would anyone agree that a Review should still be performed?...perhaps just more high level by the actual department?
Thoughts?
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#2088006 - 07/14/16 03:54 PM
Re: Pre-Close Reviews?
Cheli
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Platinum Poster
Joined: Aug 2015
Posts: 756
Land Lacking in Lakes, IL
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I used to do those at my previous bank, not so much to proof the LOS (pre-TRID, the LOS was fine), but to proof the processors. We had tons of secondary market exceptions that had to be cleared on lots of loans, so I did some of the proofing to make sure the package that went out was correct and that we at least wouldn't have to have the borrower resign.
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"Pressure is something you feel when you don't know what you're doing" - Peyton Manning
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#2088098 - 07/14/16 07:53 PM
Re: Pre-Close Reviews?
Cheli
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Diamond Poster
Joined: May 2013
Posts: 1,781
The Mitten State
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Cheli, we have the same issue here. We did put in place a pre closing worksheet and our mortgage department is supposed to be do this, it flows from the time of application to either the loan closing/denial/withdrawal. We still find a lot of issues. When TRID came into play, and our new LOS, they were told to 'test, test' test', but they kept stating they were too busy. That did nothing but backfire for them. We do the pre-closing, and also a secondary review is done after the loan closes. Somedays we would like to beat our heads against the wall.
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Nonsense wakes up the brain cells.
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#2088102 - 07/14/16 08:02 PM
Re: Pre-Close Reviews?
Cheli
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10K Club
Joined: Nov 2002
Posts: 20,654
The Swamp
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Pre-close review here on TRID loans. Wish they'd do it on EVERYTHING! !
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My opinion only. Not legal advice. Say you'll haunt me - Stone Sour
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#2088124 - 07/14/16 09:15 PM
Re: Pre-Close Reviews?
Cheli
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Member
Joined: Mar 2011
Posts: 88
OK
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We do pre-close and post-close reviews. We don't have much volume, but I am basically working one on one with a doc prep person because each deal we do seems to have something quirky, so nothing has been black & white. The other doc prep person has refused to touch them. Apparently our department has imploded!
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#2088126 - 07/14/16 09:20 PM
Re: Pre-Close Reviews?
Cheli
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Diamond Poster
Joined: Sep 2008
Posts: 2,474
Midwest
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Pre-close review on TRID loans as well. For some, I review LEs before we issue also.
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#2088127 - 07/14/16 09:22 PM
Re: Pre-Close Reviews?
Cheli
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Power Poster
Joined: Oct 2009
Posts: 9,088
OK
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Pre-close (including a review of TRID earlies before they go out) and post-close review of every RE loan we make, whether TRID or not.
Last edited by raitchjay; 07/14/16 09:23 PM.
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#2088129 - 07/14/16 09:26 PM
Re: Pre-Close Reviews?
Cheli
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Member
Joined: Jul 2016
Posts: 73
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I'm new to this position, but I plan to start pre-closing review on a select number of files each month when I get caught up. This was a part of my previous job role, and it did help to identify trends in processing and underwriting. We don't have much volume here either so after post closing and my other duties are complete, I hope to fit a few in a month.
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#2088222 - 07/15/16 02:24 PM
Re: Pre-Close Reviews?
Cheli
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100 Club
Joined: Dec 2015
Posts: 144
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Cheli, you may already be doing this, but I think the best defense on keeping a pre- or post-review in place is to keep a running tally of the types of errors you are seeing. One institution I worked for felt there was no issues with mortgage processing until I was able to show them the percentage of files with errors . . .
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#2088246 - 07/15/16 02:53 PM
Re: Pre-Close Reviews?
Cheli
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Member
Joined: Jul 2016
Posts: 73
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Question for all on the subject of post closing & pre closing reviews...I am new to this role so I am still trying to decide on the best procedure..as there is not one set up here.
Do you meet with each individual when you see a trend, or send a general blanket email to all LOs/Processors stating general trends and findings? Of course, I am still writing up a full detailed report for audit committee--however, I'm trying to decide how to address review findings on a regular basis.
Hope Cheli doesn't mind I hijacked the thread a bit!
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#2088248 - 07/15/16 02:59 PM
Re: Pre-Close Reviews?
Cheli
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Power Poster
Joined: Oct 2009
Posts: 9,088
OK
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If i see a trend (or an error that i think could become a trend, or just an issue i think is particularly important), i will verbally notify the involved processor and then often follow up with a blanket email to all discussing the issue. I wish i could say this makes those issues go away, but it doesn't....but it does improve the situation.
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#2088249 - 07/15/16 02:59 PM
Re: Pre-Close Reviews?
Cheli
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Platinum Poster
Joined: Aug 2015
Posts: 756
Land Lacking in Lakes, IL
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Scout, I think a blanket email can be useful, but nowhere near as useful as meeting one on one (or meeting with the employee and their manager). Blanket emails can tend to get ignored because they're seen as "not about me" or "someone else's problem". Just my opinion
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"Pressure is something you feel when you don't know what you're doing" - Peyton Manning
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