Mortgage TrueView has launched an independent benchmarking tool for quality control. The new solution, QC View, will allow lenders, investors and regulators to compare the quality of loan pools within an individual lender’s portfolio or with the rest of the mortgage industry. Here’s how it works:
Mortgage TrueView also announced the formation of a QC View Working Group and is inviting mortgage industry participants to assist in the development of standard data definitions and formats behind QC View.
“To be able to accurately assess loan quality is everybody’s goal,” said Becky Walzak, executive vice president, director of regulatory compliance with Mortgage TrueView. “Regulators need to know which lenders are meeting requirements, originators want to know how their loan quality compares to competitors, and the secondary market needs better information about the quality of loans they are securitizing. With QC View, everyone will be able to get the answers they need.”
QC View will give lenders the opportunity to make changes that are meaningful to their loan origination and servicing processes, as well as to avoid spending money on issues and reviews that add no value. Mortgage TrueView is planning to launch QC View in July of this year.
Some of the key metrics of the new tool may include:
>> A lender’s overall error rate and how the rate compares to specific lenders or industry averages
>> A comparison of error rates by loan dimensions such as loan type, occupancy type, debt-to-income ratio, loan-to-value ratio, and FICO score
>> The most frequent errors by lender and across the industry
>> The defect types that are most frequently associated with unacceptable loans
For example, an investor may want to know the percentage loans produced by a particular lender with a 650 FICO score that were given an “unacceptable” rating. Using QC View, the investor could not only get the answer, but could also compare that percentage to the rest of the industry to determine if the lender’s loan quality for loans with 650 FICOs was higher or lower than the industry average.
The QC View Working Group was formed after Mortgage TrueView held two webinars on how the mortgage industry can better approach quality control. “QC View is an industry-wide project, and it is open to all mortgage participants who want to help build the data definitions and formats behind it,” said David Moffat, president and CEO of Mortgage TrueView. “So far, we’re seeing wide support for launching a QC benchmarking tool such as QC View.”
About The Author
Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at firstname.lastname@example.org.