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Loan Servicing Quality and Compliance Solutions for Mortgage Servicers

Loan Servicing Quality and Compliance Solutions for Mortgage Servicers

  1. Michelle Doyle

    Michelle Doyle

    Principal

  2. Jim McCracken

    Jim McCracken

    Director

  3. Kevin D. Schalk

    Kevin Schalk

    CPA

    Partner

  4. Baker Tilly Professional

    Janet Twombly

    Director

Loan servicing solutions

Baker Tilly offers a dynamic quality control review platform for loan servicing. Our extensive experience in mortgage loan servicing allows us to specialize in both general servicing and default servicing activity. We follow FHA, FNMA, FHLMC, and VA guidelines, and all reviews include regulatory requirements. Additional client specific requirements, such as OCC or internal policies can be added to the review process if desired. Our clients find success with Baker Tilly in identifying issues and mitigating potential loss or regulatory issues.

The selection and review process is performed within the required time frames as specified by FHA and the GSEs. Robust reporting is a key differentiator when performing a QC servicing review. Baker Tilly can provide its clients with flexible report options to ensure audit results provide meaningful data to management.

The servicing reviews are classified as follows:

  • Conventional loan file review (monthly or quarterly depending on client need)
    – Default
    – General servicing
  • FHA loan file reviews (required monthly)
    – All servicing elements reviewed on all loans selected

Servicing gap analysis

As part of our audit and mortgage compliance services, Baker Tilly offers a servicing gap analysis with respect to compliance with GSEs, HUD, CFPB and internal servicing operations. This audit will demonstrate to the various GSEs, HUD and CFPB that our client has a compliance management system in place that monitors the entire servicing operation to verify any compliance risks and gaps that may exist. This review will include senior management’s involvement and incorporate management action plans to address any apparent weaknesses. Baker Tilly follows HUD and GSE guidelines, as well as federal regulatory requirements for servicing while conducting the analysis. Our review includes the following areas of servicing, and can be customized depending on the needs of our client or their particular business operation:

  • Quality control program
  • Policies and procedures
  • Customer service
  • Call center operations overview
  • Complaint and escalation handling
  • Customer call quality control
  • Error resolution
  • Letter administration
  • Loan level verification and/or documentation
  • ARM maintenance
  • Escrow management
  • Cash management
  • Default servicing: collections, loss mitigation, bankruptcy and foreclosure
  • Investor reporting
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Subservicer monitoring

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The agencies, FHA and CFPB require that servicers monitor their subservicer to ensure that they are following certain guidelines set forth under the seller/servicer guides, mortgagee handbooks and CFPB servicing regulations. Baker Tilly delivers a macro and micro review of a lender’s subservicing vendor. Our goal is to ensure all data supplied by the subservicing vendor meets the lender’s internal requirements and to identify any areas in need of improvement. In addition, Baker Tilly’s mortgage compliance team will review the lender’s policies and procedures with respect to subservicing monitoring and their interim servicing practices. Upon completion of the review, we will deliver a fully compliant servicing QC report noting recommended prudent servicing practices, as well as organizational deficiencies. The monitoring reviews can be performed quarterly, semiannually or annually depending upon the client’s policies and procedures.

In addition to the subservicing monitoring review, we can also perform loan level servicing QC on loans serviced by the client’s subservicer. The frequency of these reviews can be monthly or quarterly, depending on the need of the client.

Connect with our Value Architects™ today to learn more about how we can assist with your servicing needs.