Aritas Mortgage Solutions

10 Challenges You Can Avoid with an Effective Mortgage Post-Close Audit


Aritas Mortgage Solutions

November 6, 2023
Mortgage professional post close audit document


Mortgage professional post close audit document

Let’s say that you spent a few dollars to purchase a TV in cash. You pay a certain amount and the store manager hands you the change. But if you’re a cautious buyer, the transaction won’t end until you review the change to confirm if the right balance was returned.

Post-closing mortgage audits work in a similar way. It includes a thorough review of loan documentation and processes, once the mortgage loan has been closed. The aim is to ensure that the loan complies with all necessary regulations, investor requirements and industry standards. This quality control process helps identify and address any discrepancies, errors or potential issues, ensuring that the loan documentation is error-free and appropriately packaged for delivery. As lenders and brokers looking to improve customer satisfaction, this is a step that you shouldn’t be missing.

Bookmark this blog to ensure that the post-closing quality control services you avail ticks all the boxes.

Why You Should Consider a Comprehensive Mortgage Audit After Closing

A post-closing audit demands precision, accuracy and meticulous attention to detail. You could choose to conduct these audits with the help of your in-house team or outsource to a trusted partner like Aritas who can provide a dedicated team of skilled professionals for you.

Here are 10 reasons why a post-closing audit is necessary for smooth mortgage processing:

  1. Regulatory Compliance: Mortgage lending is heavily regulated at both the federal and state levels. Non-compliance can lead to substantial fines and penalties. Conducting a post-closing audit ensures that all regulatory requirements have been met, providing assurance to regulators and protecting lenders like you from legal consequences.
  2. Investor Satisfaction: Mortgage loans are often sold to investors in the secondary market. These investors have specific guidelines and requirements that must be adhered to. A post-closing audit verifies that loans meet these criteria, ensuring investor satisfaction and reducing the risk of loan repurchases.
  3. Risk Mitigation: The mortgage industry is exposed to various risks, including credit, operational and compliance risks. A post-closing audit helps identify and address any potential issues that could lead to financial losses or damaged reputation.
  4. Quality Control: Maintaining a high level of quality control is crucial for lenders. An error-free post-closing audit reflects positively on the lender’s internal processes and their commitment to delivering high-quality loans to borrowers. At Aritas, our independent yet centralized QA team ensures that quality is never compromised
  5. Client Confidence: Borrowers place immense trust in lenders when applying for a mortgage loan. Knowing that their loan has undergone a rigorous post-closing audit instills confidence in the borrower and demonstrates the lender’s commitment to transparency and fairness.
  6. Preventing Repurchase Requests: Mortgage investors may request that lenders repurchase loans that do not meet their criteria. An error-free post-closing audit helps you avoid these costly repurchase requests, preserving your financial stability.
  7. Operational Efficiency: An accurate and well-packaged post-closing audit simplifies the loan file review process. It enables a lender to quickly assess the loan’s compliance status and efficiently take any necessary actions.
  8. Data Accuracy: Precision in packaging and delivering the post-closing audit findings is essential to ensure that the results are accurate and reliable. Errors or omissions in the audit documentation can lead to misunderstandings and misinterpretations.
  9. Legal Protection: In case of disputes or legal challenges, an error-free post-closing audit provides a strong defense. It serves as concrete evidence that the lender has followed all necessary procedures and adhered to applicable laws and regulations.
  10. Industry Reputation: A lender’s reputation in the mortgage industry is invaluable. An error-free post-closing audit contributes to a positive reputation and fosters trust among industry stakeholders, including borrowers, investors, regulators and other lenders.

How is a Mortgage Post-Closing Quality Audit Done?

A mortgage post-closing quality check is typically initiated after a mortgage loan has been closed. It is often initiated by the lender or may involve a third-party service provider like Aritas. The process involves a detailed review and audit of the loan documentation to ensure compliance with regulatory requirements as recommended by Fannie Mae, Freddie Mac and other such governing bodies.

Any discrepancies or errors detected during the review are promptly flagged to the lender for corrective action. In some cases, significant discrepancies may necessitate a re-underwriting process to correct the issues and ensure loan compliance.

At Aritas, we offer comprehensive post-closing quality control services that can enable you to effectively manage your paperwork. Our services include:

  • Keeping track of trailing documents and efficiently retrieving them
  • Precise compiling of the post-closing loan package
  • Conducting thorough post-closing data integrity audits
  • Meticulously reviewing tax, insurance and other obligations
  • Ensuring that all approved loans are properly registered with MERS

Case study of a Pennsylvania based mortgage banker

Most Important Documents for Post Closing

The first step for an efficient post-closing audit is to have your documents in place. Here’s a checklist of all documents required to help you with this process:

  1. Closing disclosure form
  2. Original recorded Mortgage or Deed of Trust
  3. Original or copy of final Title Policy/Appraisal report
  4. Mortgage insurance certificate for all FHA loans
  5. Loan Guarantee certificate for all VA loans

How We Help You Maximize Efficiency and Minimize Hassle

At Aritas Mortgage Solutions, we’ve optimized processes for leading loan originators across the country. From managing volume spikes to reducing costs, here’s how we do the heavy lifting for you:

  1. Affordable, tailored solutions: We offer affordable tailored solutions to cater to your business’ unique needs and goals. Our global service delivery model ensures 24X7 services to ensure you reach your goals smoothly and efficiently.
  2. Quick turnaround time: Quick action is a necessary aspect of a market with fluctuating rates and changing rules. We offer the right balance of optimized processes and human expertise to make sure quality remains unaffected at the cost of speed.
  3. People-first Approach: We believe that data and technology are key enablers to effective solutions and smooth operations. Our in-house teams are extensively trained to ensure you receive an unparalleled experience. Led by a personalized, human touch that ensures results without compromising on customer satisfaction.
  4. Robust quality control: Enriched by two decades of experience and a highly skilled and independent but centralized QA team, we are committed to delivering quality results, consistently. To keep up with constantly changing market circumstances, we carry out regular checks and audits to ensure there’s no compromise on quality.
  5. Data Security: In highly regulated industries like mortgage and legal services, we understand the critical need for risk monitoring, policy reviews and maintaining awareness about current laws and regulations. Not only do we ensure that your operations are compliant, but also take necessary steps to keep your data safe. We are AICPA SOC2 Type2 compliant and your search for an ISO 27001 certified partner ends with us.

Let’s leave you with the success story of a mortgage banker in Pennsylvania who leveraged our services to reduce compliance cost and increase profit margins.

Share this on


Subscribe now for weekly updates

Related Posts

Ready to Save on Processing Costs & Scale Your Mortgage Business?

Mortgage Processing: The Efficient, Effective, & Economical Way

Thank you for subscribing to our blog. Look out for a weekly round-up of all recently published blogs delivered straight to your inbox!

Thank you for entering your details. Click here to download the case study, it has not automatically begun.

Thank you for reaching out to us. Someone from the team will be in touch with you within 24 hours.

In the meantime, follow us on LinkedIn for the latest updates and developments! 

Warm regards, 

Team Aritas Mortgage Solutions 

Thank you for your interest in Aritas Mortgage Solutions. Someone from our team will be in touch within 48 hours.

In the meantime, why not explore our solutions to learn more about what we bring to the table.