MPF Xtra® Training:Iowa Bankers Mortgage Corporation

Training Courses  
Servicing

Quality Control

Now it's time to ensure your mortgage production continues to operate at a high level.

You must conduct quality control reviews to evaluate the investment quality of your home loans, as well as detect possible fraud and false representation. 

This step provides a high level overview of your Quality Control (QC) requirements. Chapter 8 of the MPF® Program Guide provides detailed instruction regarding your QC program and your written QC plan including: file selection process, file review, internal reporting to your management, and timing from selection through completing the process. For MPF mortgage loans originated and serviced by your institution, you must perform QC duties in compliance with the MPF Guide, to include pre-closing and post-closing reviews, as well as monthly reporting to senior management.

Demo: View our MPF Quality Control webinar.

Your Responsibilities:

  1. Randomly select loans for quality control audit that meet the requirements of the MPF Guide.

    • The MPF Guide states the sample size must be no less than 10 percent. Choose either:
      • 10% of your residential 1-4 family mortgage production;
      • 10% of your secondary market 1-4 family mortgage production;
      • or 10% of all your MPF loans
    • A review appraisal will be required on 10% of the loans selected for QC Audit.
      • A desk review must be completed by someone experienced in analyzing residential mortgage appraisals for the remaining loans.
    • Each loan selected for post-closing review must have a new tri-merged credit report.
    • Two types of reviews are required:
      • Random – full file review (based on the 10% rule)
      • Targeted – review one element of the loan file (these are in addition to the 10% rule)
    • A comprehensive review is required for 2 stages of the closing process:
      • Pre-Closing (Pre-Closing reviews are in addition to the 10%)
      • Post-Closing

  2. Meet the requirements of the MPF Guide for both pre and post-closing reviews.

    • The “checklists” provided by FHLB are not designed for your internal pre- and post-close reviews. Rather, when a loan is selected for QC review by the MPF Provider, the checklist is available for use to ensure that documents are not missed in the files being uploaded into eMAQCS. 
    • Monthly reporting to senior management for pre-closing and post-closing reviews is required and should include:
      • Descriptions of the sample selection
      • Defect trending information
      • A summary of the results of your internal quality control reviews (including both pre-closing and post-closing)
    • PFIs delivering and servicing MPF Xtra Mortgage Loans must also follow the policies in the Fannie Mae Selling Guide: D1-2-01, Lender Prefunding Quality Control Review Process, and D-1-3-01 through D-1-3-06. 

Tip: Did you know you can order tax transcripts directly with the IRS? 

IBMC's Responsibilities:

  1. Conduct Servicing audit

  2. Conduct Early Payment Default audits

  3. Share any high level concerns.

MPF Program QC Reviews:

In addition to your internal QC, any mortgage loan delivered under the MPF Program is subject to a QC review.

  • The MPF Program will use a third party (Covius Real Estate Services, LLC) to select loans and conduct QC reviews.
  • When a loan is selected for review, you will receive an email request for the loan file(s) for electronic delivery using the eMAQCS Plus website. To obtain eMAQCS system login credentials, complete the online eMAQCS Access Request Form.
  • The email request will include the MPF Quality Control Review Documentation Worksheet to help you put the file together for QC. If you have documentation used in underwriting that is not listed on the worksheet, be sure to include that documentation in the file you upload to the eMAQCS website. 
  • Follow the delivery instructions and meet the required fifteen day time frame of providing loan file(s) to Covius.
  • Visit the Welcome Center for valuable information on MPF QC processes, as well as resources and information featuring custody, servicing, investor accounting, and default management.

Note: For new PFIs, MPF will automatically request the first five loans funded by MPF for a QC review. 

Note: In addition to the audit by MPF, Fannie Mae reserves the right to QC your MPF Xtra loans.