The importance of using a pre-closing audit checklist or QA software

Quality control in the lending industry is essential in reducing risk and increasing the quality of loans. Not only is quality control a good business practice in general, it’s often required by agencies such as FHA, Fannie Mae, Freddie Mac, and VA or investors.

For example, Fannie Mae and Freddie Mac each require the auditing of at least 10 percent of all mortgage loans. These agencies require lenders to have a quality control plan in place. Though the specifics vary from one agency to the next, the requirements are quite similar. If you are closing less than 15 loans per month, monthly (or quarterly in the case of FHA loans) quality control audits are generally considered appropriate.

The agencies require that the person conducting the audit be independent of the process that they are auditing. For example, if a staff member is involved in the closing of the loan, that person should not conduct the pre-closing audit. Many lenders who conduct in-house loan audits create a separate department specifically for auditing loans to ensure compliance with this requirement.

Each agency has specific requirements covering various quality assurance checkpoints including early in the loan, just before closing the loan, and after closing the loan. Several checklists, including a pre-closing audit checklist, should be a part of your quality control plan. If you prefer, you can use a spreadsheet or specialized loan quality assurance software.

Early in the loan, the list is fairly short. However, just before closing the loan, the pre-closing … Read more

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Student loan crisis


With record numbers of young people today going to college yet unable to find a job when they graduate, many people have started to question if it still makes sense to take out loans to get a college degree. While it still holds true that a typical college graduate will out earn a typical high school graduate, the amount of debt that students have to take on to get that degree has increased exponentially over the past several years, causing many financial experts to voice the opinion that there is a looming student loan crisis.

In fact, the average student graduating with a Bachelor’s degree today has over $24,000 in student loan debt. This includes both private and federal loans, such as direct loans. This amount increases for students with Master’s and professional degrees. Unlike other loan, such as mortgage and credit card debt, it is practically impossible to discharge student loan debt during a bankruptcy. In fact, according to , in 2016 just 39 bankruptcy cases out of 39,000 cases filed had their student loans discharged.

High loan amounts combined with the fact that these loans cannot be discharged has made it extremely difficult for many former students to make the minimum payments on their loans. Unlike practically every other loan that is given to an individual, there is no vetting process for student loans. Essentially, students are encouraged to take as much as they want, and are often told that they will make enough later on … Read more

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What To Do If You Do Not Have Insurance Coverage

With the huge changes and revisions to healthcare, and the fact that it is changing every day due to politics and more, it’s important to understand exactly what you need to do if you find yourself without insurance. Many people might find themselves without insurance because of the way in which the system works now. Whether you lose your job, you’re a freelancer, or you just recently aged out of your parent’s insurance, the current market in which healthcare is governed by pushes people to get insurance. This is because right now there is a penalty of around $100 a month every month that you do not have health insurance. This is an integral part of the healthcare system right now, so it’s important to make sure that you get it taken care of.

            One of the first things you should consider when you’re looking to get healthcare  is your resources. When you get healthcare, you need a lot of information to apply. Not only are there multiple different ways in which you can apply, but you’ll need a ton of information to make sure that you get everything through that you can. One of the most important factors in healthcare is all your information, as well as your financial information. You’ll want to ensure that you have the right accounts for everything, so that you’ll be a lot less likely to have problems in the future. The documentation that you’ll need is usually a quote of how much … Read more

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What Type of Life Insurance Policy Should You Get

The primary purpose for getting life insurance will always be to protect the people you care about in case something were to happen to you. How much capital would you need in order to pay off debts, support your loved ones, or to take care of all your affairs?

After you understand what priorities you would like to protect through life insurance it is fairly easy to determine the correct amount of coverage.

What Type Of Life Insurance

The next question is what type of coverage will best serve your needs. In order to get the right amount of coverage you also have to make sure that the premiums fit comfortably into your budget.

Term Insurance Benefits

Term insurance is less expensive than whole life insurance, because you are renting the insurance. Your coverage is considered pure insurance in this case, because it doesn’t develop cash value or participate in company dividends.

Instead it allows you to get the right amount of protection for the least expensive premiums available. Term insurance has also developed over the years to offer more comprehensive options. You can get a return-of-premiums policy where you pay more during the life of the policy, but the insurance company refunds all of your premiums at the end of the fixed term.

There are also term policies that allow you to lock in your age and health for the remainder of your life, so that you can have the coverage and premiums locked in for the rest of

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