Post Mortgage Closing Services: Understanding What They Involve
Could you be interested in post-mortgage closing services? They involve strict reviews and audits to ensure compliance and document integrity. It is only after full confirmation of the documents that the lender can finance the loan. The service provider selected by your company must be highly experienced and good at their job. They must know how to correct documents from various origination stages and review them. The only documents post-closing mortgage servicers could correct are those that have been signed and financed. The contracted professionals’ job is also to review legal, loan processing, and other documentation for regulatory compliance.
They follow the origination and underwriting rules to the letter, making sure to retrieve missing information, if any. Mortgage closing services also involve data integrity checks to generate quality control reports. When performing completeness checks on loan information, service providers also set possible exceptions. Basically, its main activities involve the following. Tracking all documents (tracking document retrieval) associated with post-mortgage closing is a critical first step. Documents that need to be tracked include assignments, assumption agreements, judgments, tax records, trust deeds, amendments, and UCC (Uniform Commercial Code), among others.
After this is completed, the final title policy, lien, and assignment are issued. The second activity offered during the delivery of mortgage closing services is the assembly of the post-closing loan package. What this entails is the compilation of all the loan documents that are typically submitted throughout the origination process. Thus, it means that the post-closing mortgage servicer will work together with underwriters, loan officers, loan processors, mortgage brokers, home appraisers, property sellers, and any other parties involved. Assembly work is quite tedious and time-consuming and that’s why you want a large company with many employees to do it.
Other activity includes post-closing data integrity auditing, as mentioned above. The main reason this audit is done is to address possible deficiencies in mortgage loans. They check and address any red flags that arose during the underwriting process. After this, all loans that have been fully approved are registered in a certain mortgage system. This entire process of registering approved loans prevents future loan assignments. It also prevents lenders from incurring future follow-up and correction costs or facing document fines, among others. This step in post-closing mortgage services also ensures faster loan execution, zero documentation errors, and a smooth closing process.
The mortgage quality control audit is also part of the mortgage post-closing services. There are automated auditing systems that are used for this task. The service that will be offered to you in this step includes pre-financing, post-closing, servicing, compliance, foreclosure, fraud investigation, quality control plan preparation, cancellation or denial, and business loan audit, among others. It is imperative to ensure that the post-closing service provider is able to audit and review the loans that it normally processes. Many subcontracted companies deal with FHA, VA, Fannie Mae, and Freddie Mac, among other mortgage loans. Their basic audit process involves file document review, underwriting process evaluation, credit risk analysis, and third-party verification.