Posted By: Anonymous
Secondary Market Mortgage Loans - 10/08/21 07:48 PM
We have been out of consumer RRE mortgage lending for several years, due to the fact that the products (ARMs and HELOCs, not long term fixed rate loans) we offered and the demand we had, didn't justify the risk involved with all the applicable rule and regulations we had to comply with. Management has recently decided to get back into RRE lending, and we are looking to use another entity to underwrite, process, accept, and purchase these loans with servicing released to them. These loans will not be on our books, we would take in the application, enter it into the software portal, and this other entity takes the process from there, providing us with all required documents/disclosure, etc.
How do the mortgage servicing rules play into this set-up? Is there anything we'll need to comply with if we release the servicing? What other compliance-related items do we need to be concerned with and what audits/reviews would we be expected of us in this type of set-up?
How do the mortgage servicing rules play into this set-up? Is there anything we'll need to comply with if we release the servicing? What other compliance-related items do we need to be concerned with and what audits/reviews would we be expected of us in this type of set-up?