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MARS
About QMS
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FAQ's
QMS can help you to solve your Quality Assurance Regulations and Requirements problems!
For QC Managers
Industry Associations
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Frequently Asked Questions
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What is your check list for conducting QC reviews?
Many who consider our services often want to know what our check list is.
We protect our analysis procedures as a trade secret. Quality Mortgage Services uses it
own proprietary software called MARS which was built around the way QMS performs its analysis of
mortgage loans. Read more about MARS
How do I build a good QC team or department?
If you are in need of good QC Manager tools, consider using MARS or allow
QMS to serve as your mortgage review analyst.
What is MARS?
MARS is a compliance software that was developed to aid in the extensive mortgage review and audit process.
It complies, retrieves, compares, stores, and analyzes the information gathered during the mortgage audit review. MARS' database
creates a statistical report using the detailed information highlighted and trends the data that may need attention. ...
(more)
How do I manage risk?
Having a risk-management plan in place is essential to track fraud. Assembling a team like Quality Mortgage Services can assist you with all your mortgage quality control and repurchase defense needs.
What is the purpose of having post closing loan file reviews?
The post closing loan file review is a quality control tool that helps to
assure the quality of the loan transaction. HUD-FHA, VA, Fannie Mae,
Freddie Mac and most other investors require that all mortgage
brokers/bankers with whom they do business have quality assurance
reviews conducted of at least 10% of their closed loan files.
How do I get a Quality Control Plan?
Send a written request to Quality Mortgage Services requesting a mortgage Quality Control Plan.
We will contact you and discuss the details of your mortgage operations in order to write the plan to fit your production line.
How often do I send production list?
Clients provide QMS with a monthly or quarterly production list of closed loans.
What information does QMS need in the production list to make an order?
You can provide as much information as you feel is necessary but the list should include loan number, loan amount,
loan type, and loan purpose.
Can I weight certain areas more than other areas for the selection?
After an arbitrary selection of a minimum of 10% from the production list we will provide to you an order of the
files for review. Guidance can be provided to weight a particular region, branch, or loan personnel at that point, if needed.
What is the minimum number of loans that should be selected for Mortgage Quality Control Review?
The industry standard for the agencies is 10%, however, management may choose to do more than 10% in regions
of the country where known problem areas exist.
What media should be used to send files to QMS?
Files can be provided in the media of your choice. We accept original, copied, and electronic .pdf files.
These can be faxed, emailed, or FTP'd.
How does QMS account for the files?
The files are inventoried for completeness and for accountability purposes after they are received by QMS. If
a file is missing or incomplete, you will be notified immediately. The review will be placed on hold until 100% accountability
is achieved with the order.
Does QMS make re-verifications?
After the inventory is completed, the processor prepares the files for the audit. The processor begins the
re-verification process and orders any credit reports and Field Review Appraisals necessary for the review.
How long does it take to receive my report?
We allow up to 6-weeks for a report to be completed. This ensures that mailings of verifications
are received and Field Review Appraisals are completed.
What security measures does QMS use to protect privacy?
All reports, orders, and invoices are accessed through MARS. The client designates who
will have access to what information during the execution of the contract. An email notification is sent via QMS’s
MARS software program, to inform you that your order, report, or invoice is ready. This email will have a link back to
MARS where the user is able to login and access the order, report or invoice.
MARS uses SSL certification for Internet security.
What happens to the files after the report is completed?
Electronic files are maintained in our archive for 3 years. Original and copied files are returned to the client.
QMS provides shredding services for copied files after the completion of the review and a certificate of destruction is maintained
on file for 3 years.
How do I get QMS to conduct an On-Site Review?
We can conduct announced or unannounced on-site reviews at the client's request. The on-site reviews need to be
coordinated at least 30 days in advance. On-site reviews are very comprehensive and are conducted at an agreed upon per day rate.
What is RESPA?
RESPA is the Real Estate Settlement Procedures Act. RESPA is about closing costs and settlement procedures, and is enforced by HUD. RESPA requires that consumers receive disclosures at various times in the transaction and outlaws kickbacks that increase the cost of settlement services. RESPA is a HUD consumer protection statute designed to help home buyers be better shoppers in the home buying process.
Where can I get more information on RESPA?
QMS provides links to RESPA FAQ's and other RESPA information.
How do I get FHA Lender Approval?
Loan Correspondent (Mini-Eagle)...(more)
As a HUD-approved mortgagee, can I
conduct my own post closing loan file reviews?
In order for a post closing review to be acceptable for measuring the
quality of the loan, most investors require that it be conducted by
someone who is knowledgeable about but is NOT INVOLVED in the
mortgage origination, processing or underwriting phases of the loan.
Does HUD allow me to contract out for my post closing loan
file reviews?
HUD allows approved mortgagees/Loan Correspondents to contract
out to outside firms to conduct their post closing file reviews
(HUD
Handbook 4060.1, REV-2, 6-1 E). The approved mortgagee/Loan
Correspondent is responsible to ensure that the contractor complies with
the HUD quality assurance requirements in conducting the reviews.
Does the sponsor's post closing reviews satisfy the requirement of HUD’s Mortgagee Letter 2010-20?
HUD's position is that a sponsored or sponsoring mortgagee is responsible for post closing quality control reviews.
What is the penalty that HUD may take if an approved mortgagee does not have post closing loan file reviews done?
HUD may make a "finding" against the approved mortgagee
which could result in referral to the Mortgagee Review
Board in Washington, DC. The MRB can take
sanctions against the approved mortgagee including monetary penalties
and disciplinary action up to suspension and loss of authority to originate
FHA loans.
Is it necessary to have written reports of the post closing loan
file reviews?
Agencies expect all post closing quality assurance reports to be in writing
for senior management review. Also, senior management must document
the corrective action taken to address all identified deficiencies.
How long does HUD require that the results of quality assurance
reviews be maintained?
HUD requires that the results of quality assurance reviews be maintained
for a period of one year. This includes the initial QC reports and all
documented corrective actions taken by management to address
identified deficiencies.
I have been a HUD approved mortgagee for more than 5 years, what is the likelihood that anyone will ever
know that I did not do post closing loan file reviews?
While many investors are not monitoring the performance of its loan
origination sources, HUD has quadrupled its compliance monitoring staff.
Contact us to learn how Quality Mortgage Services can help you.
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