I am the Chief Compliance Officer of a mid-size mortgage lender. I started here about three months ago. We are Fannie and Freddie approved and subservice our loans. However, I have discovered some serious lapses in compliance involving our subservicing oversight.
Last week, I was shocked to find out that we have never done loan servicing quality control. To make matters worse, we have never done an annual review of the servicer. When I discussed this with the CEO, he blew me off. He doesn’t want to do loan servicing QC. As to the annual review, he only wants to do the bare minimum.
He reads your weekly newsletter and quotes you all the time. I do too. But I have to get through to him somehow about the urgency of doing loan servicing QC. We are scheduled for our Fannie MORA review soon, and I know this may be an issue. I thought you would be willing to write an article about this requirement.
I spoke to your firm’s representative to get a proposal for loan servicing QC, the most pressing issue. She sent me the proposal and other materials. But I can’t get anything done until the CEO authorizes this compliance service. I hope the CEO reads your response. I will show it to him!
What is the importance of doing loan servicing quality control?