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.
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 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.
The defects in the Loan Package
Documentation category were within the
subcategories of Application / Processing
Documentation and Closing / Title
The defect details indicate that a DU or AUS
report was missing or defective and there was
a defect in the final settlement statement.
Detail for each
The top part of
the Area of
the defect and
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
Accountability AOA Name
Disclosures - FHA No ARM
ARM disclosures were not in file.
VA Closing Title/
Appraisal - FHA - No
Cert for Roof,
Instruments - VA
Rider not attached
Disclosures VA Form 26-0503 not
Appraisal was subject to
certification of roof repairs.
Documentation is not in file.
VA Rider was not attached.
Mary Processor FHA Legal/
FHA Loan Package
VA Loan Package
Conven- K. B. Indigo
Appraisal Oversupply of
Conven- K. B. Indigo
Sample Report Loan package
1003 - Final not in
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
Final application is not in file.
Application is file appears to be the
initial application and does not
show property address.