Underwriting

Underwriting: Back to the Basics on Quality Control 

In last month’s column, information was provided suggesting increased lender scrutiny of quality control plans for third-party originators. The status change from a HUD loan correspondent to a sponsored originator did not change or diminish the need for loan quality control procedures. For those companies participating in the forward loan market, there has been an increase in the profile and perspective with which lenders are assessing loan quality control activities among their customers. It is impossible to pick up an industry publication and be unaware that the agencies, investors, consumer groups and regulators are all pointing fingers at each other