Post Funding Audit

As a partner and service provider for our clients, Optimal Mortgage Services provides a high level of expertise to meet quality assurance review requirements to ensure compliance with the ever-changing regulatory mortgage lending environment. This includes reviews for closed loans according to all regulatory, agency, and federal regulations.

Our auditors are trained and experienced in all types of loan programs/guidelines including Fannie Mae, Freddie Mac, FHA, VA, USDA, Non-Conforming, Conventional, Home Equity, and alternative residential loan programs. Thorough, detailed and expedient reporting is the hallmark of our highly experienced staff.

Random
A 10% sample is randomly selected for a review. Employment, income, credit and asset documentation contained in the loan file are re-verified. The loan file is reviewed for authenticity and compliance and is compared to validate the credit decision. A desk review is performed on each appraisal, and a field review is performed on a random 10% sampling. Credit reports are ordered and reviewed to validate the credit information and identify any undisclosed or additional debts.

Discretionary
Additional discretionary sampling may be used to confirm that branch offices, loan products, geographical areas, third party originators, internal originators, underwriters and appraisers, as applicable, are periodically reviewed. Additional sampling may also be done in response to any significant changes in the Lender’s product line, origination process or if results of random post funding audits reveal trends noteworthy of a target review.

Early Payment Default (EPD)
Optimal Mortgage Services will review any mortgage loan that becomes delinquent or into a default status during its first year. Early Payment Default (EPD) is one of the strongest indicators of possible mortgage fraud. Our audit includes a review of the loan file and servicing notes.

Adverse Action
Optimal Mortgage Services provides a random 10% sampling review of loans in which the application for credit resulted in a withdrawal or denial to ensure that Adverse Action notices were sent timely and that the file supports the final decision. All files are reviewed for compliance with ECOA, RESPA, HMDA and agency guidelines.