Welcome to the Q1 2025 Mortgage Chat – CrossCheck’s mortgage-focused quarterly publication which aims to address topics that arise as lenders originate, underwrite, and fund their residential mortgage products. Click the green button below to download.
In this issue, we address the following topics:
- ACES Mortgage QC Industry Trends – Q2 2024: ACES reported a 14.56% rise in critical defect rates (1.81%), with income/employment defects leading, appraisal defects surging by 98%, and USDA loan defects rising 370%, highlighting the need for robust quality control programs.
- Fraud Awareness – Appraiser Identity Theft: FNMA highlights the need for fraud prevention, citing cases of unlicensed appraisers using stolen identities and urging due diligence to verify appraiser credentials.
- Fraud Awareness – FNMA Occupancy Verification Guidance: Highlights red flags for misrepresentation and stresses strong QC measures to detect and address occupancy discrepancies.
- Agency LDP/GSA Requirements: Emphasizes the need for seller/servicers to check all involved parties, including employees and vendors, against exclusionary lists (GSA, LDP, SCP) to prevent fraud, and requires verification of third-party originators’ procedures.
- Post-Closing Quality Control – Tax Transcripts: Fannie Mae and Freddie Mac require lenders to submit IRS Form 4506-C for tax transcripts for loans selected in post-closing quality control reviews, with exceptions for certain validated income or third-party service provider access.
If you are grappling with a mortgage question, we invite you to send your query to Ask CrossCheck. Our team of mortgage experts are ready to provide the guidance and support you need.
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