Residential Mortgage Due Diligence
À la Carte Services
We believe in reviewing all credit factors in order to determine a borrower's ability to pay. Our reviews can be customized to meet your needs. Our standard review:
- Loan application
- Appraisal valuation
- Hazard, flood and mortgage insurance
- Income and asset verification
- Employment verification
- Credit score and debt history
Whether flipping, unsubstantiated income, or an inflated appraised value, fraud has devastated the mortgage industry and caused tremendous amounts of loss to owners and insurers of mortgage loans.
We dig deeper to unearth fraud by verifying occupancy, income, employment and the validity of social security numbers. Additionally, we review property valuation, flipping and validity of an appraiser's license.
We partner with Mavent to provide a dual review process, ensuring all loans are fully compliant with all regulations. Our standard review:
- Federal laws such as HOEPA and Section 32
- Over/under disclosures of APR
- Predatory lending regulations
- RESPA disclosures
- TILA / Reg Z calculations
- GSE specific tests
- Right of rescission
- State high-cost test
- State specific prepayment penalties
- Payment stream re-calculation
Legal Document Reviews
Our thorough legal documents review includes a details document exception report. We work with sellers and custodians to clear all exceptions. In addition to the basic review ensuring the legal documents match the origination documents, we review:
- Notes and riders, if any
- Mortgage instruments and assignments
- Endorsement and assignment chains
- Modification and assumption agreements
- Forms used
- Condominium/Co-op documents
- CEMA documents
- Your data versus the information contained in the documents
- Documents properly executed and notarized
- Missing or incomplete documents
- Validity of the title policy
Both during and after the review, we provide comprehensive loan-level and pool-level reporting tailored to your needs, so you can easily monitor our progress, identify issues, and take action. Our standard reports include:
Pool Summary Report detailing the overall characteristics of the loan package and status of our review findings.
Asset Summary Report detailing the major loan-level characteristics and listing the credit and compliance defects.
Data Comparison Report detailing the difference between the data provided by the originator or the seller and the data collected during our review.
Experienced experts to meet your needs.
Our experienced Underwriting Team is trained on our proprietary review system to efficiently analyze each package to your specifications. Besides having a strong background in the industry, each underwriter must also pass a rigorous exam.
Our due diligence team is staffed by a Lead Underwriter, one or more Quality Control Underwriters, and an appropriately sized Underwriting Team. The Lead Underwriter has the highest level of expertise and manages the entire due diligence process. We also staff one Quality Control Underwriter for every three underwriters. The Quality Control Underwriter performs random checks throughout the process to ensure the accuracy and quality of your file review.
Review services can be performed at a seller or buyer's office, a designated third-party site, or at our facility in Austin, Texas.
We'll help you uncover the red flags.
Our services help you make better decisions on pricing portfolios while better understanding and managing risk. We consult with you to customize the scope of each review to meet your goals.