First American subsidiary, FA Business Services released QC@Closing at the Mortgage Bankers Association conference currently underway in Chicago.
QC@Closing conducts an automated evaluation of the HUD-1 settlement statement and mortgage data, at a point in the closing process at which corrections can still be made.
Changing regulations and the risk of loan repurchase and penalties are forcing lenders to allocate more time and resources than ever before on loan-processing quality controls.
Many lenders employ manual quality reviews of loan documents. FA Business Services hopes the new QC@Closing will help alleviate some of those pressures.
"While many in our industry recognize the potential to improve compliance by manually auditing the HUD-1 settlement statement, getting this data in a consumable format has been the core challenge," said Sally French Tyler, senior vice president of FA Business Services, "With QC@Closing, we’ve been able to successfully extract and standardize the closing data so that it can be automatically evaluated against lender-defined rules that are tailored to each lender’s programs."
Possible risks and discrepancies are flagged for lenders in real time, so that they can identify and act upon them while still closing on time.
The products also stores the actual closing data and results for five years, even after a loan is sold or acquired.