Post Mortgage Closing Services: Description of What They Involve
Might be interested in post-mortgage closing services? They involve strict reviews and audits to ensure compliance and document integrity. It is only after full confirmation of the documents that the lender can finance the loan. The service provider selected by your company should be very experienced and good at their job. They must know how to correct documents from various stages of origination and review them. The only documents that post-closing mortgage servicers could correct are those that have been signed and financed. The job of the contracted professionals is also to review legal, loan processing, and other documentation for regulatory compliance.
They follow the origination and underwriting rules to the letter, making sure to retrieve missing information, if any. Mortgage closing services also involve data integrity checks to generate quality control reports. When performing integrity checks on loan information, service providers also set possible exceptions. Basically, its main activities involve the following. Tracking all documents (tracking document retrieval) associated with the subsequent mortgage closing is the critical first step. Documents that need to be tracked include assignments, assumption agreements, judgments, tax records, deeds of trust, amendments, and UCC (Uniform Commercial Code), among others.
After this is complete, the issuance of the final title policy, lien, and assignment occurs. The second activity offered during the delivery of mortgage closing services is the assembly of the post-closing loan package. What this entails is the compilation of all loan documents that are typically submitted throughout the origination process. So, it means that the post-closing mortgage servicing provider will work together with underwriters, loan officers, loan processors, mortgage brokers, home appraisers, property sellers, and any other parties involved. The assembly work is quite tedious and lengthy and that is why you want a large company with many employees to do it.
Other activity includes post-closing data integrity auditing, as mentioned above. The main reason this audit is done is to address possible deficiencies in the mortgage loans. They check for and address red flags that came up during the underwriting process. After this, all the loans that have been fully approved are registered in a certain mortgage system. This entire registration process for approved loans prevents future assignments on loans. It also prevents lenders from incurring future follow-up and correction costs or facing document penalties, among others. This step of post-closing services also ensures faster loan foreclosure, zero paperwork errors, and a smooth closing process.
The Mortgage Quality Assurance Audit is also part of Mortgage Post-Closing Services. There are automated audit systems that are used for this task. The service that will be offered to you in this step includes pre-financing, post-closing, servicing, compliance, foreclosure, fraud investigation, quality control plan preparation, cancellation or denial, and commercial loan audit, among others. It is imperative to ensure that the post-closing service provider is able to audit and review the loans it normally processes. Many outsourced companies take care of FHA, VA, Fannie Mae, and Freddie Mac, among other home loans. Its basic audit process involves file document review, underwriting process evaluation, credit risk analysis, and third-party verification.