Servicing Quality Control: Recurring Adverse Findings

The first full-service mortgage risk management firm in the United States.

August 10, 2023

QUESTION

We have used your servicing quality control group for many years. We like how we can have direct contact with the auditors. Recently, we asked one of your auditors for feedback about the adverse findings they see happening among the many servicers you audit.

The response was very helpful because your servicing compliance group provides servicing quality control to servicers in many states. We have virtually eliminated “confirmation bias” by getting your wide-ranging information across the servicing spectrum.

We’re hoping you would share with others a few of these findings.

What are some recurring violations in your servicing quality control findings concerning servicing transfers, payment posting, loss mitigation, and UDAAP?

ANSWER

Thank you for the opportunity to provide our servicing compliance solutions. Most of our servicing clients retain us for servicing quality control and monthly or hourly servicing compliance support.

Because we work with servicers of differing sizes, complexity, and risk profiles, we constantly update our review criteria to reflect the range of audit findings. One of the aims of servicing quality control is to anticipate the examiners’ regulatory compliance expectations.

servicing quality control.

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I will provide an outline of recurring adverse findings along with remedial recommendations. Of course, the potential list of adverse results is formidable. Since 2006, when we first began servicing quality control, we have identified numerous recurring regulatory violations.