All about mortgage quality control plan

The key thing about developing a useful mortgage quality control plan is to ensure that policies are adopted in such a way so that employees looking after the loan processing and lending procedures comply with national and state laws keeping in view about background checks and holding the appropriate credentials and licensing to be utilized in this type of transactions. Various approaches to build up a useful mortgage quality control include is to give attention to procedure of approving the loan. The main thing about this is to create a customer file on time, issuing connected documents related with the loan approval and transferring the funds to the proper recipient on time. For this purpose the effort of quality control should include the preparation of a checklist which contains all relevant tasks, arranged in a manner which helps in the effective completion of the undertaken tasks.

The process of quality control also should ensure about the in-house requirements like maintaining the confidentiality factors of the lender and taking up ongoing training that look into the matter of continued employment. The key issue about fha mortgage quality control plan is to safeguard the interests of all concerned parties. The policies are adopted in such a way that quality control aid to refrain consumers from taking mortgage debt which they cannot manage reasonably. Similarly, confidential and private information is only utilized as and when required, and is not disclosed to the parties who are unauthorized. Quality control of mortgage safeguards the interest of lenders by adoption of such standards which should honoured by entity which provides or brokers mortgages, thereby aiding the industry to remain stable and offer others and lenders the scope to stay in business for a considerable period of time. The process of mortgage quality control also depends on applicable regulations and laws.

Fannie Mae – The Mortgage Association

After the Great Depression, the worldwide economic depression prior to World War 2, amendments were made to the National Housing Act and a mortgage association was formed in 1938. This association was known as Fannie Mae (Federal National Mortgage Association). This was signed up as part of Frankelin Roosevelt’s New Deal. The main aim of this establishment was to provide federal money to the local banks which would help in financing home mortgages. This was attempted to increase ownerships of homes and also to provide houses of affordability. Few years later it was acquired by housing and home financing agency and later due to changes in Housing Act of 1968, the establishment was split into two as Fannie Mae and Ginnie Mae( Government National Mortgage Association). While the former moved on to be a private organization, the later remained as the government organization.

In 1981, the first mortgage was issued. The laws of the company were such that it did not require the banks to subprime the loans. In the following years this establishment lost its standards and went into losses. In 2008 due to the losses they were removed from NYSE listings since they weren’t in Fannie Mae compliance to standards of the NYSE. The company then took some steps to build their performance in the financial area. In 2009, they had $3.5 trillion to their mortgage credit which helped in strengthening the US economy. This credit they give to the tax payers of US government without whom they wouldn’t have been able to achieve this profit. For the first quarter of 2013 they have reported their income to be $8.1 billion. Their ultimate aim is to improve the finance system of housing and make a difference in life on people.

The company often makes sure it adheres to the US government rules. The quarterly report submitted for made in Fannie Mae compliance with the rules of the Security Exchange Commission (SEC).