I am the compliance manager at a lender in the Midwest. We downsized our Quality Control department recently due to market conditions. However, we still have a quality control manager and two other QC employees. Frankly, we may outsource all the quality control soon.
I am interested in keeping stability in QC, whether we keep or outsource it. To do that, I need to know two things: (1) how to maintain QC independence and (2) what kind of audit will provide oversight of the QC department and functions.
We have solved the second item since we are using your firm for the QC Tune-up. But I still don't know how to determine if our QC department is truly independent. Last year, our regulator told us that our QC department was not operating independently. We expect them back soon for another examination, and I'm sure this will come up again.
How should we maintain QC independence?
And, what are some audit features for overseeing the QC department?