How Do Post Closing Mortgage Audits Ensure Mortgage Quality Control?

In the mortgage sector, mortgage post-closing has grown in significance, especially in light of the record numbers of foreclosures and the ensuing laws and scrutiny. The entire procedure, which includes post-close reviews and HMDA audits, title registration confirmations, tracking, trailing,  data integrity audits, retrieving documents, and other steps should be carried out without error and appropriately packaged and delivered. 

Exactly Why is a Post Closing Of a Mortgage So Crucial?

Firms should promise error-free back office post-closing support services with acceptable turnaround times. Thus they can be regarded as one of the top post closing mortgage audit support businesses.

  • Mortgage Post-Closing includes crucial procedures, including file document examination, third-party re-verification, credit risk analysis, underwriting evaluation, tax compliance, and insurance compliance. All trailing papers are collected and processed at this stage, which is the last step. 
  • It is made sure that all investor requirements are followed. To ensure everything is in order and conformity, thorough audits and reviews are carried out. Before sending the relevant service provider the loan paperwork, it is checked to ensure they have all been signed and processed. 
  • To point up inconsistencies and potential errors, quality control reports are produced. When the aforementioned stages have been correctly completed, the loan is sold. After that, the loan is sold, and the borrower is informed of the sale along with the closing papers.

Strategies to Ensure Mortgage Quality Control

Following are some of the top strategies to ensure mortgage quality control:

Retrieve Trailing Documents

  • A thorough loan analysis is necessary to evaluate the accuracy, completeness, and integrity of all the data used to support the lender’s decision. To retrieve trailing documents such as mortgage or trust deeds, assignments, tax records, revisions, mechanic’s liens, assumption agreements, UCC records, judgments, and more, we follow up with third parties by phone and email. Only once this procedure is finished are assignments made, liens released, and final title policies issued.
  • Help find lagging papers (assignments, revisions, etc.) to speed up the final title insurance policy issuance.
  • Follow up with all parties to go over all the supporting paperwork.

Put Together the Post-closing Mortgage Loan Package

  • Compile a post-closing loan package by gathering all the documentation given throughout the entire procedure after a successful loan closure. These consist of the note, the Trust Deed with Riders, and the Final HUD-1 with all required signatures, addenda, etc. When putting out and reviewing a mortgage loan audit, collaborate closely with brokers and title firms. Also, assess if the post-closing loan package satisfies your needs.
  • Assemble and consolidate all the pertinent paperwork submitted throughout the loan application procedure.
  • Review and put together the last post-closing package in collaboration with title firms and brokers.
  • Verify the authenticity and completeness of post-closing loan packages.
  • Determine whether the file complies with your requirements so the loan can be offered, insured, and fraud-protected.
  • Create a shipment according to the investor’s preferences.

Audit of Post-Closing Data Integrity

  • Carry out a post-closing mortgage audit to take care of any flaws that might have surfaced. This crucial stage for mortgage post-closing entails duties including verifying occupancy, taking care of concerns raised by the underwriters, and more.
  • Address any anomalies or underlying problems that could jeopardize the integrity of the data.
  • Government ensuring reviews

Mortgage Electronic Registration System (MERS)

As part of the post-closing procedure, such as post close QC audit support services, register all authorized loans with MERS (Mortgage Electronic Registration System). It is intended to keep track of the ownership and rights of mortgage loans.

  • Loans are protected from further assignments by registering as “MERS as Original Mortgagee” or MOM. Regardless of how often the servicing was swapped, MERS remains the mortgagee. It guarantees a streamlined closure procedure, allows quicker execution, and eliminates documentation errors. The majority of Wall Street’s rating agencies have accepted it.
  • Non-MOM loans, also known as MERS by Assignment, have previously closed but can still be registered in the lender’s name. It enables all transfers to be carried out electronically going forward.
  • Organisations with MERS registration may get loan and fraud tracking services at a discounted rate without having to record MOM in the county land records. By confirming the borrower’s property statement and correctly filling out information for property preservation, this program also guards against fraud.


A team of mortgage professionals with expertise in using the most cutting-edge technology that enables high-quality levels with post-close audits should make up a worldwide mortgage quality control organization. Review criteria that look at the mortgage loan’s key documents, credit, compliance, property title, and compliance. Keep a close eye on changes to the rules governing Fannie Mae, Freddie Mac, the FHA, the USDA, and other significant GSEs. As a result, you can assure the effectiveness of the loan application process while also making informed decisions during the audit process. Additionally, your audit services will reduce the risks connected with the underwriting process.

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