The compliance review audit component provides all of the procedures you need for an effective in-house, quality control and regulatory compliance audit program. This component enables testing the results of employee work product by reviewing files and documentation for errors or omissions. It finds out how those responsible for producing quality loans and complying with government, investor and company policies are performing. Armed with the audit review findings management can use this knowledge in a beneficial way to correct errors, solve problems and assure that employees understand and follow its policies.


Compliance Review Program. The QC Plan details how the lender goes about testing the work of employees, third parties such as brokers, appraisers, credit bureaus and other suppliers to learn where there may be problems and identify issues that need to be addressed.


Compliance review is based on the carefully documented policies and procedures set out in the origination, servicing and quality control organization components of the QC Plan. The compliance review worksheets, which serve as the reviewer’s primary work papers, provide detailed references to explain each requirement.


The plan provides numerous workpapers for the reviewer to use including reverification requests for various kinds of documentation. It also provides other worksheets to use for reviewing compliance with a variety of other regulatory requirements including regulation of advertising, retention of records, reporting requirements, information security, predatory lending issues, web site compliance management and proper preparation of disclosures such as good faith estimates, ARM disclosures and servicing transfer disclosures.


Compliance Report. The Plan provides a model report that explains how the reviewer presents the data to management, including a variety of ways to analyze the findings and procedures for those effected by the findings to have an opportunity to have input.


The QC Plan provides numerous detailed models for how the reviewer may structure the compliance report and explain the findings. They can be presented using various ways of analyzing the data such as by loans, by function, by company office or by employee or third party supplier or contractor.


Management Response to Compliance Review Findings. This component of the QC Plan provides an array of suggested actions that management can and in some cases must take to respond to the information developed in the compliance review to assure that government and investor rules are followed and that the lender arrives at an appropriate solution to whatever problems the review process has uncovered.