As quality assurance auditors in the mortgage industry know, post-closing audits are an essential component of a comprehensive quality control program. But they aren’t without their challenges.  

That’s why more and more mortgage QC professionals are turning to a secure, cloud-based solution that enables them to verify financial data quickly and easily. By standardizing these requests, auditors can access all records from a single, centralized location — and easily comply with regulatory requirements. 

But what exactly is a post-closing audit and how can digital confirmations help to streamline the process and stay compliant? Let’s take a look.  

What is a compliant post-closing audit? 

In short, a mortgage post-close audit involves mortgage QC professionals conducting a quality test to uncover any deficiencies over the entire mortgage process. The auditor tracks essential documents (also known as trailing documents) which include tax records, trust deeds, liens, uniform commercial code records, and more to ensure completeness and accuracy.  

All compliances must be met in accordance with major regulatory bodies such as Fannie Mae, Freddie Mac, FHA, VA, USDA/RHS, FHLB, and state compliance.  

Stringent audits and reviews are required to ensure trailing documents adhere to all regulatory requirements. It is because of these intricacies that the process is susceptible to errors.  

What are the challenges of post-closing audits? 

From preparing the correct documentation to obtaining the appropriate signatures to providing the proper disclosures, mortgage quality control requires a significant amount work on behalf of the QC professional. Altogether, this makes mortgage post-closing very complex.  

Post-close quality control turnaround times are a major concern for mortgage originators, as are the challenges associated with data verification during the post-closing audit stage, particularly when it comes to inconsistencies, discrepancies, and omissions. 

According to the Q4 2022 ACES® Mortgage QC Industry Trends Report, which delivers nationwide findings on loan quality, the overall defect rate for CY 2022 was 2.07%, up 5% from CY 2021’s rate of 1.97%. Defects increased year-over-year in three underwriting categories, as did six of the 11 total defect categories. 

But what if there was a solution that could streamline the mortgage reverification process and enable auditors to get responses in less time? There is — and it’s secure and compliant. 

How can I simplify the mortgage reverification process? 

As part of the post-closing audit process, mortgage reverification requests include verifying checking and savings accounts as of a previous date. Managing these requests by fax, mail, or email can be a time-consuming and unorganized process that can result in inaccuracies due to manual processes and human error. 

Digital mortgage reverifications are much faster and more secure, while offering greater compliance.  

Thomson Reuters® Confirmation provides a secure, cloud-based solution that standardizes requests, allowing you to get responses to more requests in less time from a single, centralized location — all while complying with regulatory requirements.

• Complete multiple requests at once: send requests for multiple clients, to multiple banks in one order
• You can find, sort, and filter your requests for easier tracking and reporting 
• There’s no software to download or per-license fees, so onboarding new staff members is simple 
• Confirmation features the largest validated network to reduce the risk of fraud and guarantee your request goes to the right place the first time 
• We follow up with banks on your behalf, so you get a faster response 

Used by more than 5,000 asset verification requesters around the world, Confirmation exceeds industry standards, passes hundreds of security audits each year, and complies with regulatory standards. And because financial institutions prefer receiving your requests through Confirmation, their responses are faster when you do. 

With a centralized dashboard, Confirmation organizes your work in one place online. Say goodbye to faxing and filing. Everything you need is now at your fingertips. 

Ready to get started? Request a free demo here.