mortgage quality control - managing the process
DESCRIPTION
Beyond mortgage compliance, there is the aspect of running a business like a machine. If you do not know where the problems are in a system, you are constantly guessing about how to improve it. Our systems take you down to the elemental level and allow you to see and manage your systems to their smallest components.TRANSCRIPT
© 2010
Mortgage Quality Control
Beyond Compliance
Policies and Procedures, Training Programs and Quality Control
© 2010
The Need for Quality Process
• Statistics– All New Businesses
• 90% fail in 2 Years• 50% of these fail in 5 Years
– National “A” Wholesaler List• @ 6000 brokers• @ 80% added since 2004• @ 250 on list since 2000
© 2010
The Need for Quality Process
• Defining Quality Control– Traditional
• Audit Function• Also known as
– Post Closing Review
– Investor/Agency QC Plan
– New• Business Management System
– States
– Investors/FHA/FNMA/FHLMC
• Also known as “Production Quality Control Plan”
© 2010
The Need for Quality Process
• Regulatory Climate
• Risk Management
• Business Growth and Profit
• Employee Satisfaction
© 2010
The Need for Quality Process
• Regulatory Climate– State Oversight
• Licensing Process• Audit
– Federal Oversight• Predatory Lending• Federal Law Compliance
– Industry Oversight• Warehouse/Investor Approval
© 2010
The Need for Quality Process
• Risk Management– Liability
• Employee Actions– Dishonesty– Competence
• Investor Actions– Suspension– Repurchase
• State Actions– Audit Findings
© 2010
The Need for Quality Process
• Business Growth and Profit– Shrinking Volumes– Shrinking Margins
• Efficiency• Pipeline Management• Quantifying Costs and Resources
– Survivability
© 2010
The Need for Quality Process
• Employee Satisfaction– Competency– Reliance on Systems not People– Process Management
© 2010
Proactive or Reactive?
• Crisis Management – Reactive Model– Management Priorities
• New Production – 75%
– Problem Solving • Time Management Report
– 65 - 80% of Time Spent on Problems
• Predictable Issues• Chronically Repeated
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Hot Spots and Conflict Zones
• Origination
• Processing
• Underwriting
• Closing/Funding
• Post-Closing
• Human Resources
© 2010
Hot Spots and Conflict Zones
• Origination– Incomplete Application– Fraud– Rate/Program Lock Issues– Inadvertent Pre-Approval– Customer and Referral Source
Management
© 2010
Hot Spots and Conflict Zones
• Processing– Incomplete Submission– Erroneous Submission– Closing Preparation
© 2010
Hot Spots and Conflict Zones
• Underwriting/Approval– Process/Flow– Guideline Maintenance– Conditions Management– Regulatory Compliance
© 2010
Hot Spots and Conflict Zones
• Closing/Funding– Missing Documentation– Incorrect Information– Pre-Closing Audit
© 2010
Hot Spots and Conflict Zones
• Post-Closing– Incomplete Documentation– Fraud Detection
© 2010
Proactive or Reactive?
• Business Management – Proactive Model– Management Priorities
• New Production 75%
– Problem Solving • 25% of Time Spent on Problems• Predictable Issues – Manage with System• New Issues Addressed in System
© 2010
Proactive or Reactive?
• Does your business rely on YOU?– Daily
• Decisions• Direction• Solutions
– NOT a business– Reactive Model– High % of Failure