Mortgage technology firm ISGN launched a new quality control service for correspondent lenders with warehouse lines of credit to double-check mortgage origination standards — from the time a potential borrower requests a mortgage until that loan finally closes.
The program hopes to get mortgage originators ahead of the costly and massive amount of repurchase requests, similar to what the top five banks are encountering. Bank of America (BAC) just repurchased $330 million in mortgages it sold to Freddie Mac because of "contractual matters."
ISGN said its workflow–based approach to meeting secondary market investor guidelines will get loans moving in warehouse lines.
“Investing in quality control at strategic points in the origination process can reduce the time a mortgage sits on a warehouse line of credit, freeing the line to originate more loans,” said Anne Politis, president of origination strategy at ISGN. “Our quality control services can be quickly and seamlessly integrated into the correspondent lender’s processes.”
— Justin T. Hilley