Many have lamented the complexity of the mortgage industry. Yet today's advanced technology allows for better quality control than ever. Lenders have been grappling with methods to insure that regulations are met and that all criteria is effectively examined before the granting of a mortgage loan. Lenders who take time to invest in and implement quality control software into their process can achieve substantial benefits.
Examining the Need for Quality Control Software
The recent financial crisis, of course, has prompted the government to tighten regulations for the mortgage lending industry. Lenders are now taxed to be as transparent as possible. Billions of dollars are not at stake and mortgage lenders have much to lose if they don't get their quality control platform right. Without structured quality controls, the process suffers as does the lender.
While few in the industry dispute the need for better quality controls, many lenders still struggle with the best way to achieve those controls. Knowing that non-compliance with industry regulations is not an option, lenders have to discover what best practices regarding mortgage quality control will work for them.
The Benefits of Technology for Mortgage Lenders
It's not surprising that many lenders are incorporating more and better technology into their lending process. By employing cutting edge quality control software, lenders can confirm "facts about a loan - at any point in the loan cycle - easier and more accurate than in the past. The technology can perform that analysis in a blink of an eye, with no delay." (1) Quality control technology can, therefore, speed up the process without sacrificing accuracy. Moreover, loan applications that have inconsistent data are flagged by such systems and then more accurately assessed to see if it meets the loan requirements.
The technology associated with mortgage quality control stores original documents associated with the loan and allows quick retrieval. Experts believe that the promise associated with this technology could have amazing benefits for the mortgage industry that allow investors to return in greater numbers. For instance, there is some talk about establishing a certified qualified mortgage as the industry moves forward with much improved quality controls.
Incorporating Quality Control Software into the Lender Business
Putting off the adoption of quality control software is not recommended. Every week that quality control "delayed due to manual processes, lack of technology or vendor unresponsiveness means a systemic defect is potentially impacting more loans coming through the pipeline." (2) Quality control software greatly improves efficiency, accuracy, and productivity. It's no wonder that lenders today are adopting it at such a high rate. Effective quality control software also allows the lender to find and efficiently fix errors associated with pending loans.
Adopting quality control software is of the utmost importance for lenders who want to thrive in today's mortgage lending market. As an effective tool, this type of software safeguards the process so fewer mistakes are made and better compliance is achieved.
1. MortgageOrb.com, "The Challenges of Quality Control in Today's Qualified Mortgage World," http://www.mortgageorb.com/issues/SME1402/FEAT_02_The-Challenges-Of-Quality-Control-In-Todays-Qualified-Mortgage-World.html
2. LoanLogics, http://loanlogics.com/loan_quality_management_overview.html