MetaSource Releases Annual Analysis of Servicing QC Findings
Experts find that documentation lapses made up 90% of the top findings for 2021
Draper, UT (PRUnderground) September 14th, 2022
MetaSource, LLC, a leading mortgage solutions provider, released its 2021 Servicing QC Findings Report, which reveals that gaps in documentation remained the biggest obstacle for mortgage servicers last year.
The annual analysis of servicing QC findings shows that in a year of record high mortgage levels, servicers struggled to substantiate process requirements. From failure to document timely customer inquiry follow-ups to missing accounting histories, documentation lapses accounted for nine of the top 10 findings revealed as part of MetaSource’s servicing QC audits.
A Perennial Struggle & A Daunting Task
MetaSource’s annual analysis helps prove that documentation is a perennial challenge in the mortgage industry. The mortgage solutions provider’s QC Manager, John Morales, shed some light on why this is and why improving document management is more important than ever.
According to Morales, in many cases, servicers’ underlying processes were fully compliant. The issues were in the supporting records. Several servicers relied on insufficient documentation like notations and codes as proof that requirements were met. This is likely because the original document images were difficult to obtain.
“Establishing and maintaining adequate document management processes can be a daunting task,” said Morales.
This daunting task and perennial struggle carries added pressure in today’s environment of heightened regulatory scrutiny. Morales noted that mortgage servicers have less room for error as regulators keep a close eye on them and their processes.
Top Servicing QC Findings for 2021
The top three servicing quality control findings for 2021 included the only finding unrelated to documentation: the incorrect set up and payment of taxes and insurance. This is another common source of trouble.
Here are the top three findings for 2021:
- Incorrect set-up and timely premium payment of taxes, insurance, and mortgage insurance
- Failure to provide proof of payment within 24 hours of receipt due to inability to prove receipt date via various methods of payment acceptance (e.g., online, phone, and lockbox)
- Missing accounting histories where initial loan set-ups are completed after the first payment was submitted and now second payment is due
For the complete 2021 Servicing QC Findings Report, which includes more details around document shortcomings and best practices for improving document management processes, visit the MetaSource Mortgage Blog.
MetaSource is a Digital Transformation Solutions provider, focused on Business Process Outsourcing (BPO) / Business Process Management (BPM) services integrated with Enterprise Content Management (ECM), workflow solutions, compliance services and customer experience processes. MetaSource helps its clients manage risk, improve quality, increase efficiency and realize their most important goals — with special expertise serving the mortgage industry. MetaSource’s mortgage services include quality control (QC) audits (pre-fund, post-close, servicing, MERS), lien release, whole loan purchase reviews, and more. MetaSource’s solutions allow clients to focus on their core business while MetaSource does the rest. More: https://mortgage.metasource.com