MDMC provides a variety of critical due diligence services, encompassing your loan review needs, such as:
HELOC Reviews – We have extensive HELOC experience, including evaluating and understanding the unique differences in both credit and compliance relating to home equity lines. We know that HELOC reviews typically include limited credit and title review, reduced collateral validation (e.g., automated valuation models, broker price opinions or tax valuation) and a more restrictive approach to TILA tolerance. We also perform a high-cost review and capture data from specific HELOC disclosures.
New Production Underwriting Services – Our capabilities for underwriting newly originated loans at our centralized underwriting facilities allow you to leverage this underwriting capacity, ultimately reducing your costs and allowing you to focus on originating more loans. We will underwrite loans to specific lender guidelines or review to DU/LP submissions, and we will work with you to properly evaluate each loan's creditworthiness.
Scratch-and-Dent Reviews – We have performed numerous scratch-and-dent reviews and understand the unique characteristics of non-performing and sub-performing loans. Our specialized underwriters have extensive experience and understand the complexities, collateral assessment and inherent causes of non-performing loans, as well as documenting these issues.
Sale Put-Back Loans – Our team provides underwriting and compliance review services for repurchase and defaulted loans at our offices. We will:
- Complete a diagnostic review and underwrite loans to the original guidelines or any other guidelines and trade stipulations provided.
- Perform state and federal predatory/high-cost compliance reviews and APR recalculation.
- Review the loan using updated value and fraud tools to verify loan value and potential fraud.
- Compile all critical information and transmit our file-review results.
Conduit Services – We provide full underwriting, legal document review, servicing data collection and funding reviews. We also work with you to understand the full spectrum of requirements, customized to specific needs to ensure a smooth process for loan submission, qualification and funding review. All processes will be completed in one of our two centralized underwriting facilities. At the end of each day the assigned deal manager will work with you to review the existing pipeline, loans to be funded and loans failed.
Quality Control Reviews – A quality assurance program must operate independently of mortgage origination and underwriting departments. It also must be tailored to focus on the specific risk criteria associated with the lender's operation and must comply with minimum investor requirements. With this in mind, MDMC will complete a diagnostic review and underwrite loans to the original guidelines you provide. We also will perform state and federal predatory/high-cost compliance review and APR recalculation, specifically including reviews for:
- Credit and verification documentation
- Legal and closing documents
- Predatory lending
- Underwriting decision
- Automated underwriting input and required documentation
- Documentation reverification
Legal Document and Funding Reviews – MDMC can conduct a full legal document and funding review. These reviews include verification that the following legal and closing documents exist in the file:
- Note and riders
- Mortgage instruments and assignments
- Mortgage insurance certificate or mortgage guaranty certificate
- Modification or assumption agreement
- Title binder or final title insurance policy or other evidence of title
- Settlement statements (generally, a HUD-1)
- Leasehold estate agreements
- Cooperative/condominium documents
- Hazard insurance policy or certificate
- Flood insurance policy or certificate
- Underwriter's approval and any conditions of closing
- Closing instructions
- CEMA documents
- Assignment and endorsement chains
Automated Underwriting Review – We perform a data integrity review to validate system information against the paper documentation in the file. The review includes:
- A representative sample of loans underwritten by the AUS
- Verification that the standard AUS reports in the file represent the final submission to the AUS
- Review of all documentation used to underwrite the loan, including income and asset documentation, credit report (if required) and appraisal
- Verification of the accuracy of all data entered into the AUS and consistency with the source documents; comparison of loan data with that reflected in the final AUS reports
- Validation of the value used by the AUS with an appraisal report that is equivalent to that required by the AUS
- Review the underwriting recommendation
HMDA File Review – We can provide assistance collecting and verifying the HMDA/GSE data that the agencies or other regulators require for delivery on funded and denied loans. This includes Freddie Mac and Fannie Mae pre- and post-delivery data, as well as loan data you need to report on an annual basis. We collect the data (e.g., race and ethnicity codes, Home Ownership and Equity Protection ACT (HOEPA) Status, annual percentage rate (APR) spread above Treasury, first-time home buyer code, and reasons for canceled and denied loans) at your location or at our offices.
We look forward to sharing our expertise and insight with you as we partner together to create customized solutions to your business needs. Contact us to learn how we can meet your precise due diligence and loan review needs.