It is not surprising that the likelihood of mortgage fraud has grown this year, given how much the market is changing. Housing Wire reported on a CoreLogic mortgage fraud report on September 12 that stated that the risk of income (which increased by 27.3%) and property (which increased by 22.6%) fraud increased in the second quarter of 2022.
Here, risk and Quality Control teams have an opportunity to promote lending sector trust through rigorous processes and evaluation. The extension of the credit box and increased access to homeownership are two benefits of ensuring consumer trust in lending, which creates openings for greater creativity. That might encourage more lending and more potential borrowers.
Considering the changing market, the leadership of many lending businesses has had to make some difficult choices. Their objective is to maintain the organization’s health while continuing its expansion. This contributes to risk mitigation so that compliance and borrower safety are guaranteed. In addition, by fostering systemic trust and encouraging the growth of the credit box and innovative products, QC, risk, and loan quality play a crucial part in assisting leadership in achieving growth goals.
With the increase in the news surrounding potential loan defaults, buybacks, and the rapidly changing environment, lenders are encouraged to partner with tech-enabled and skilled specialists who handle QC across numerous lenders because they will comprehend and perceive the landscape to deliver the most remarkable enterprise loan quality service.
Furthermore, to achieve this, lenders first need to ensure their quality control procedure is thorough and compliant from start to finish. Also, ensure that the outcomes of your QC audit are properly checked regardless of whether they were generated by the internal QC team or a third-party QC vendor. Lastly, lenders need to check the procedures, accuracy, personnel, and services their QC provider provides. To read more on this, click here.
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