How Is The Post Closing File Review Done?
Post Closing file reviews are quality control tools that are helpful in assuring the quality of a loan transaction. They are a set of rules defined by the HUD-FHA, VA, Freddie Mac or any other investor etc. on all the different mortgage brokers or bankers. It basically, makes sure that the bankers or brokers should do the business with atleast 10% of their closed loans files reviewed.
Each of the file that is submitted for the review of the quality control needs to go through a proper procedure. At first place, each mortgage loan file that is submitted must contain all the necessary and required documents fully filled and accurately assembled as it has been mentioned in the sellers guide. The file has to be fastened on the right hand side of the folder that is containing the documents that have to be kept in a listed manner as mentioned. The file should also be consisting of the loan number which is provided by the local or state mortgage agency. Secondly, it is necessary for the seller to get the approval from the mortgage agency for the post closing package within 35 days from the date of closing.
In some cases, the seller might not be able to get the approval of the agency within the stipulated timeframe and therefore late delivery penalties will have to be paid. In general, it is suggested that in order to avoid such incidents, it is recommended to get the submission of the file done in less than 3 days prior to the 35th day from the date of closing.
Thirdly and lastly, the mortgage file is reviewed by the mortgage agency and the decision is faxed to seller within 3 business days. If the file is approved, the notification in the fax will also include the scheduled purchase date. In case the files are not approved because of inadequate information or documents, it will not be purchased but to help the seller, the agency will call her or him through a telephone call and send a fax containing the information about the corrections required.
The most common cases in which the file is returned to the seller include the following. These errors have to be corrected within 72 hours.
Each of the file that is submitted for the review of the quality control needs to go through a proper procedure. At first place, each mortgage loan file that is submitted must contain all the necessary and required documents fully filled and accurately assembled as it has been mentioned in the sellers guide. The file has to be fastened on the right hand side of the folder that is containing the documents that have to be kept in a listed manner as mentioned. The file should also be consisting of the loan number which is provided by the local or state mortgage agency. Secondly, it is necessary for the seller to get the approval from the mortgage agency for the post closing package within 35 days from the date of closing.
In some cases, the seller might not be able to get the approval of the agency within the stipulated timeframe and therefore late delivery penalties will have to be paid. In general, it is suggested that in order to avoid such incidents, it is recommended to get the submission of the file done in less than 3 days prior to the 35th day from the date of closing.
Thirdly and lastly, the mortgage file is reviewed by the mortgage agency and the decision is faxed to seller within 3 business days. If the file is approved, the notification in the fax will also include the scheduled purchase date. In case the files are not approved because of inadequate information or documents, it will not be purchased but to help the seller, the agency will call her or him through a telephone call and send a fax containing the information about the corrections required.
The most common cases in which the file is returned to the seller include the following. These errors have to be corrected within 72 hours.
- The loan document checklist is missing from the file itself.
- One or more documents are found missing.
- Any three errors in spellings etc. are found which are counted as minor errors.
The whole processes of pre closing file reviews and post closing file reviews are very tedious and time consuming and there is no surprise that software helping in this regard can be found easily.
