The Client
A Top 20 U.S. Bank originating residential mortgages
Challenge
- High rejection rate of portfolios in the secondary market
- Increase in “pend” rate at closing stage
Solution
- Conducted analysis using proprietary SmarTrans® methodology
- Discovered underwriter missing out on required conditions
- Designed and implemented an Underwriting QA process to review loans approved by Underwriters
Execution
- Loan documents reviewed and DTI tolerance and lending guidelines were validated
- Audit findings were shared with Underwriters and Processors to improve quality
Value Delivered
- Reduced loan rejections in the secondary market 1.7% errors were detected prior to closing (up from 5%)
- Effective process designed to identify/ coach Underwriters & Processors with higher error rates