{"id":26534,"date":"2023-03-02T18:50:45","date_gmt":"2023-03-02T18:50:45","guid":{"rendered":"https:\/\/mozaiq.ai\/?p=26534"},"modified":"2023-10-13T05:02:50","modified_gmt":"2023-10-13T05:02:50","slug":"solution-spotlight-post-close-audit-and-loan-delivery","status":"publish","type":"post","link":"https:\/\/mozaiq.ai\/solution-spotlight-post-close-audit-and-loan-delivery\/","title":{"rendered":"Solution Spotlight \u2013 Post-Close Audit and Loan Delivery"},"content":{"rendered":"
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Solution Spotlight \u2013 Post-Close Audit and Loan Delivery<\/h5>\n

This extended post highlights one of MOZAIQ\u2019s most powerful pre-built automated processes\u2014Post-Close Audit and Loan Delivery<\/strong><\/a>\u2014demonstrating the positive operational impact of intelligent mortgage automation.<\/p>\n

Who is this Solution For?<\/h2>\n

The solution is used by wholesale lenders who originate mortgage loans and then sell the loans to a third party, a GSE, like Fannie or Freddie, or another third-party investor. The audit component of the automation solution\u2014Checkpoint Audit\u2014can be used in multiple parts of the loan fulfillment lifecycle. The Loan Delivery<\/strong> process is just one of many automated processes that uses the Checkpoint Audit platform.<\/a><\/p>\n

The use case is simple: before the loan is transferred to an investor, the Post-Close team<\/strong> audits the loan for any corrections that are required.\u00a0 Once the loan passes the audit, the post-close auditor marks the loan as ready for Shipping<\/strong>, and the loan is transferred, or shipped, to the investor.<\/p>\n

Why is there a need for this?<\/h2>\n

In today\u2019s market, with declining origination and refi volumes, every loan that is originated and sold to an investor is precious to the lender. It\u2019s gold. When times were good, margins were good, but now we\u2019re seeing loan margins drop by over 60%, and in some cases, lenders are processing loans at cost just to get loans in the door. This is unsustainable.<\/p>\n

Given the competitiveness of the market, another important factor comes into play\u2014Loan Quality<\/strong>, which I talked about in a prior post<\/a>.<\/p>\n

Suffice it to say that no one in the mortgage ecosystem\u2014brokers, loan officers, realtors, or borrowers\u2014wants to work with a lender that closes a loan and then must bring the borrower back to the table to re-sign or even re-negotiate loan terms or requests additional documentation.<\/p>\n

And, the faster the loan is sold to an investor, the faster the lender can replenish their line of credit and avoid incurring late fees, if it\u2019s not delivered accurately and promptly.<\/p>\n

How does it work?<\/h2>\n

The post-closing team performs audits to ensure a loan is complete prior to being sent to an investor (this is an example for a wholesale lender):<\/p>\n

    \n
  1. Import loan documents from the loan origination system (LOS) to the MOZAIQ platform<\/li>\n
  2. Classify the loan document \u2013 index, name and tag<\/li>\n
  3. Extract relevant data elements from the documents<\/li>\n
  4. Run the business rules, and automatically compare data elements on the documents to data in the system of record (LOS)<\/li>\n
  5. The Post-close auditor (human processor) reviews & validates the loan and fixes the errors where possible, for example:\n
      \n
    1. Missing and expired documents<\/li>\n
    2. Missing data<\/li>\n
    3. Mismatched data and documents<\/li>\n
    4. Checks for erroneous calculations<\/li>\n<\/ol>\n<\/li>\n
    5. Once the loan passes the audit, the auditor approves the loan, the results are uploaded into the LOS and the loan is committed to an investor, ready to be delivered.<\/li>\n<\/ol>\n

      \"\"<\/p>\n

      The largest benefit from this is that it keeps the process consistent and removes human errors, like (a) forgetting to check each and every data element across the system of record and (b) ensuring all important documents are present.<\/p>\n

      Because the automated audit leverages indexing<\/a>, data extraction<\/a> and a rules engine to ensure a consistent review, it provides the auditor with clearly identified and actionable information they can focus on resolving, as automating the repetitive steps and letting the high value team member work on resolving issues adds quantifiable value.<\/p>\n

      Once the loan is committed to an investor, an ops resource kicks off the Loan Delivery<\/strong> process in the Loan Origination System (LOS). The MOZAIQ automation platform monitors a queue in the LOS and when one or more loans are committed, imports the loan list and initiates the process \u2013 every step is then automated:<\/p>\n

        \n
      1. Committed Loan List is downloaded to the MOZAIQ platform<\/li>\n
      2. The investor package and ULDD (standard data set) fields are generated for the selected loan<\/li>\n
      3. The ULDD and cleared validations are uploaded to the LOS and the loan is submitted (transferred) to the Investor System<\/li>\n
      4. Loan delivery status is updated in both the LOS and Investor Systems<\/li>\n<\/ol>\n

        What are the benefits?<\/h2>\n

        Auditing plus<\/em>\u00a0Intelligent Automation ensures that loan reviews are consistently done the same way every time. The combination:<\/p>\n