Published on April 10, 2023
Written by Brock Miller
Here are some questions related to mortgage servicing that we commonly receive from our partners:
What is mortgage servicing and how can it benefit lenders?
Mortgage servicing is the process of collecting mortgage payments from borrowers and managing the various components and stages of the mortgage servicing lifecycle, such as escrow administration, delinquency, loss mitigation, bankruptcy, foreclosure, etc. Mortgage servicing is a complex and highly regulated industry. There are several federal and state laws and regulations that govern the operations of mortgage servicers, including the Real Estate Settlement Procedures Act (RESPA), the Truth in Lending Act (TILA), and the Fair Debt Collection Practices Act (FDCPA). In addition, GSEs and agencies have their own mortgage servicing guidelines as well (FNMA, HUD, VA, etc.). Compliance with these guidelines and regulations is critical for mortgage servicers, as failure to comply can result in significant financial penalties and repercussions as well as damage to the company's reputation.
Why is quality control important for mortgage servicing?
An effective quality control program is essential for ensuring that mortgage servicers are operating in compliance with all relevant guidelines, laws, and regulations, and that they are providing high-quality service to borrowers. Loan servicing reviews are a key component of a sound QC plan and program and an important tool for identifying potential issues with mortgage servicing operations. These reviews can be conducted by internal staff and/or by third-party vendors and help to ensure a mortgage servicer's procedures and activities are compliant. A strong quality control program is actively monitored and reported upon to ensure that compliance is maintained, quality standards are met, and corrective action is implemented and functioning as expected.
What are some best practices for quality control in mortgage servicing?
In order to implement and maintain an effective quality control program in the mortgage servicing industry, there are several best practices that organizations should follow. These include:
Quality control is crucial for the mortgage servicing industry to function effectively and efficiently. An effective quality control program can help to identify potential issues with mortgage servicing operations and ensure that compliance with relevant guidelines, laws, and regulations is maintained. By following best practices and conducting and monitoring regular loan servicing QC reviews, mortgage servicers can minimize risk, improve operations, and ensure they’re providing high-quality service to borrowers.
Questions? If you have additional questions about QC, contact Brock Miller, Servion’s Quality Control manager at email@example.com.