An effective loan quality control program produces actionable reports that clearly identify loan defect rates, causes and Areas of Accountability. This presentation looks at a sample of QC reports generated by BSI CARES, our proprietary QC management and reporting system.

Secure Data Management Efficient QC Workflow Actionable QC Reporting
Secure Data Management  Efficient QC Workflow  Actionable QC Reporting
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Total Loans with Defects Number of Loans with Defects by Major Category This report shows cumulative information for January, February and March 2014. The first bar shows nine loans with an overall rating of Critical and one loan with an overall rating of Moderate. Each loan defect is assigned to a category. The defects in this example were in the categories Income/Employment, Legal/Regulatory/ Compliance, Property Eligibility, Loan Package Documentation and Appraisal. The FHA/VA loans have similar categories, but are identified as FHA/VA.
Total Loans with Defects  Number of Loans with Defects by Major Category  This report shows cumulative information for Jan...
This table displays the audit results by month. • January - Four loans were audited. Three had an overall rating of Critical. One loan had no defects. • February - Four loans had a Critical rating. • March - Three loans were audited. One loan had an overall rating of Moderate and two had an overall rating of Critical.
This table displays the audit results by month.     January - Four loans were audited. Three had an overall rating of Crit...
This graph displays the total number of loans with Critical defects, by category. For example, the categories of Income/Employment and Legal/Regulatory Compliance each had three defects. The Loan Package Documentation category shows two defects. The table is a count of the defects. In this example there are 12 defects. The 12 defects were within the 11 loans.
This graph displays the total number of loans with Critical defects, by category. For example, the categories of Income Em...
The defects in the Loan Package Documentation category were within the subcategories of Application / Processing Documentation and Closing / Title Documentation. The defect details indicate that a DU or AUS report was missing or defective and there was a defect in the final settlement statement.
The defects in the Loan Package Documentation category were within the subcategories of Application   Processing Documenta...
The QC Reports Package includes an Individual Loan Exception Detail for each loan audited. The top part of the report displays information that identifies the loan. The Individual Loan Exception Report provides the Area of Accountability (AOA), a description of the defect and the auditor’s comments.
The QC Reports Package includes an Individual Loan Exception Detail for each loan audited. The top part of the report disp...
BSI’s QC Reports package includes a spreadsheet for all with an overall rating of Critical or Moderate. The left part of the spreadsheet includes identifier information for the audited loans; the overall rating of each loan, and the Area of Accountability by Role and individual name, if available. The right side of the spreadsheet includes the details for each defect. The data can be sorted and follow-up actions can be tracked in the Client Comments column. Sample Report Client March 2014 Master Report Acceptable, Trivial, Moderate and Critical Loan Loan Borrower Area of Number Type Name Rating Accountability AOA Name Category Sub-Category 150010 FHA N. Olive Critical Processor FHA Disclosures Disclosures - FHA No ARM ARM disclosures were not in file. 150010 FHA N. Olive Critical Underwriter 150011 VA O. Ruby Critical Funder VA O. Ruby Moderate Funder FHA Application/ Processing Documentation VA Closing Title/ Documentation VA Disclosures Appraisal - FHA - No Cert for Roof, Septic, Well Instruments - VA Rider not attached Disclosures VA Form 26-0503 not signed Appraisal was subject to certification of roof repairs. Documentation is not in file. VA Rider was not attached. 150011 Mary Processor FHA Legal/ Regulatory/ Compliance Sue FHA Loan Package Underwriter Documentation DU VA Loan Package Documentation VA Legal/ Regulatory/ Compliance 15009 Conven- K. B. Indigo tional Moderate Appraiser Al Appraiser Appraisal Data Integrity Appraisal Oversupply of properties 15009 Conven- K. B. Indigo tional Moderate Originator Sample Report Loan package Client Documentation Application/ Processing Documentation 1003 - Final not in file Appraisal Auditors additional Comments on Finding Description Finding Copy of Form VA 26-0503 which was in file submitted to QC was not signed. Unable to determine if borrower signed original form. Conflicting Data: (1) Page 1 of appraisal states supply/demand is "in balance". However, Market Conditions Addendum shows a 24month supply of housing. Discrepancy not addressed. (2) Page 1 of appraisal states marketing time is 3-6 months. This appears to be contradicted by comparables 1, 3, 4, and 5 which show DOM ranging from 195-640. Discrepancy not addressed. Final application is not in file. Application is file appears to be the initial application and does not show property address. Client Comments
BSI   s QC Reports package includes a spreadsheet for all with an overall rating of Critical or Moderate. The left part of...
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