Once you enter into a mortgage agreement with a borrower, you may still want to conduct other financial transactions with that particular financial instrument. In particular, you may want to sell the loan to another lender so that you can regain liquid capital a bit faster. Unfortunately, if all of your documents are not in order, or the borrower shows signs of defaulting, you may not be able to resell the loan. That said, if you make use of virtual mortgage post closing audit services, you may find it easier to sell loans before they become a toxic asset.
Ensure Compliance With Underwriting Rules
Regardless of whether or not you deal with sub-prime mortgages, you are apt to find that the entire lending industry is bearing the brunt of increased governmental scrutiny. This, in turn, creates a situation where even the slightest mistakes in contracts or their supporting documentation can result in serious problems. When you utilize a mortgage post closing audit service, you will have a chance to make sure that all of your documents are in order. In addition, the company will also periodically review each account in order to make sure that the borrower is still in a position to continue meeting their obligations. Aside from enabling you to avoid legal problems, these services will also make it easier for you to make a decision about whether to keep or sell off certain assets.
Completing All Documentation Requirements
Even though you may take as much care as possible, some documents may not become available before you decide to offer a loan. Unfortunately, if you do not go back and review these files on a regular basis, you may never have a chance to secure all of the documents for your records. A mortgage post closing audit is designed to capture these documents, as well as alert you to the fact that they are still missing. Needless to say, if you are concerned about an upcoming government audit of your records, having an impartial company review your records may save you thousands of dollars in fines and fees.
Protect Future Business Transactions
Consider a situation where you opted to offer a mortgage to a risky borrower because you happen to be interested in the property they wanted to secure. If the business venture fails, and you have not conducted a mortgage post closing audit, you will have a very hard time convincing another lender to buy the loan from you. Aside from creating a stumbling block to expediting these kinds of decisions, failing to have an impartial mortgage post closing audit may even prevent you from finding out that you need to take action to protect a particular investment.
There is no question that all of the paperwork involved in offering a loan can be tedious as well as time consuming to obtain. Typically, mistakes or flaws in the system can easily result in all kinds of legal problems if you do not conduct a mortgage post closing audit in order to make sure that each element of the loan remains secure. At the very least, if you are concerned about borrowers defaulting, or you want to be able to buy and sell loans, having dedicated mortgage post closing audit services available will be of critical importance to your business.