Tommy's Blog

As we approach the MERS® dead line extension for the annual MERS® compliance review that was moved from December 31, 2011 to January 24, 2012, we are finding that there are many servicers waiting to the last minute to wrap up the year.  Quality Mortgage Services continues to receive calls daily from servicers rushing in a panic to complete the MERS® QC audit.  The servicer   [more...]

When the Housing Urban and Development no longer approved brokers according to ML 2011-02, brokers were quick to seek a net-branch model to avoid disclosure of their yield spread premiums to the borrower on the HUD-1 Settlement Statement.  By joining a net-branch, brokers had a completive advantage over sponsored brokers who had to disclose the yield spread on the HUD-1.

The net-branch corporate structure was able   [more...]

Quality Mortgage Services announces manual underwritten mortgage loans are the best deterrent against fraud for housing.  From a random 10 percent sampling from 200,000 loans Quality Mortgage Services performed post closing quality control audits in 2009 and 2010.  The results from the mortgage loan audit showed that mortgage fraud for housing was 2.04 percent across the universe of loans audited up by 33.50 percent from   [more...]

For those of you still struggling with the new Good Faith Estimate, a number of our mortgage compliance auditors here at Quality Mortgage Services took a little break from mortgage auditing a few days ago to participate in Mortgage Banking Association Regulatory Compliance Conference in Washington DC  and we want to share with you some information so that you can better understand what the hot buttons   [more...]

There has been a lot of quiet talk among senior level management in the past 9 to 18 months about a “problem,” or “situation” that, while it exists and is spreading like a new strain of the flu, nobody really wants to admit to having the problem or really come out and admit it exists. Something you don’t want to admit to because it has   [more...]

The interpretations of Mortgagee Letter 2010-20 continue to manifest itself among the mortgage industry. Back in late 2009, the comment period began and a group of nation’s top post-closing quality control companies came together to address this issue through the Mortgage Bankers Association (MBA) with Tamara King acting as liaison between the MBA and the Federal Housing Administration (FHA). At that time, the FHA was   [more...]

 Quality Mortgage Services has been performing repurchase defense and rebuttals or responses to indemnification letters before the mortgage periodicals were writing about them in the papers and magazines. Now there are hundreds of post closing quality control companies and consultant who magically appeared who claim to be experts in repurchase defense and loan buy back audits and rebuttals. Think about it… do you want a   [more...]

All post closing quality control companies have seen the Non-Supervised Loan Correspondent (FHA Broker) perform virtually zero post closing quality control audit as required by the HUD Handbook 4060.1 since the publication of the HUD Mortgagee Letter 2010-20, June 11, 2010.  The reason the FHA Broker not having their post closing FHA audits performed is because the broker community was hoping the Annual Financial Audit included the   [more...]

I had a client call me who is working diligently to make sure his company is tight on compliance.  I am very proud of him taking such a proactive approach and taking ownership of this focus for a quality loan production.  He sees the value of quality loan production resulting in survival in the mortgage industry.  As we were discussing the many things in quality   [more...]

What is the biggest trend Quality Mortgage Services sees in quality control audits for 2010?

So far in 2010, we are seeing exactly what we expected to see. The big numbers are with violations with the final Truth-in-Lending and annual percentage rates (APRs).   In 2009, this category did not register in the top 10.  In 2010, it ranks number three with a 183% increase from 2009 which includes   [more...]

I think the industry is doing a good job but it could do better. One of the things it has done well is the requirement of licensing of loan originators. I was happy to see the recent Federal Deposit Insurance Corporation (FDIC) requirement for loan officers who work for banks to be held to the same standards as non-banks at lease with registration. Fannie Mae’s   [more...]

Real Estate/Mortgage Fraud: Facts

Every part of the mortgage lending process presents another window of opportunity for people in our industry who, by the very nature of their job description, are exposed to unscrupulous loan originators, builders, real estate agents, borrowers, processors, underwriters, appraisers, lender account reps, and title closers. Each one of these positions or areas, needed to obtain a mortgage, leaves an opportunity for   [more...]

We should all recognize individuals commit the act of mortgage fraud not companies. Every part of the mortgage lending process presents another window of opportunity for people in our industry who, by the very nature of their job description, are exposed to unscrupulous loan originators, builders, real estate agents, borrowers, processors, underwriters, appraisers, lender account reps, and title closers. Each one of these positions or   [more...]

As I prepare for the release of The 2009 Year End Review of Quality Control, I continue see more things as the data comes more vivid than it did a few days ago.  It is like looking at the stars at night on a cool clear sky.  The more you look into the heavens the more stars you see.  This is the way I see the data   [more...]

Welcome to my first blog posting. I hope mortgage professionals will participate to make this the best mortgage compliance blog out in the web.

Being that my company, Quality Mortgage Services LLC, is a mortgage compliance company, we help many mortgage companies combat fraud. The first thing that a company must have in place is a commitment to combating mortgage fraud or what we call the   [more...]

Welcome to Tommy’s Quality Mortgage Services Blog where you can see, ask questions, and comment on what’s happening in the Mortgage Industry.   Learn about/comment on trends, rules, changes, and services available to you.