Pre-Funding/Post-Closing Audits
Conducted before loans are disbursed to ensure that all processes meet the necessary guidelines and regulatory standards
What is it?
Prefunding audits are conducted before loans are disbursed to ensure that all documentation and underwriting processes meet the necessary guidelines and regulatory standards. These audits assess loan applications, borrower information, and supporting documentation to verify that the loan meets investor, regulatory, and internal requirements before funding is approved. By conducting pre-funding audits, organizations can identify discrepancies or issues early in the process, preventing costly mistakes later.
Post-closing audits, on the other hand, occur after a loan has been closed and funded. These audits focus on verifying the completeness, accuracy, and compliance of the loan file with investor and regulatory requirements. Post-closing audits are essential for identifying any missing or incorrect documentation that could lead to buybacks, repurchase demands, or compliance issues. Both types of audits are critical for managing risk, ensuring loan quality, and avoiding costly mistakes that could impact your business.
Our Process
Our Prefunding and Post-Closing Audit process is designed to provide a thorough review of your loan files, helping you stay compliant and mitigate risks. The process includes:
1
Initial Consultation & Scoping
We start by understanding your specific needs, whether for prefunding or post-closing audits. This helps us tailor the audit scope to your operational and regulatory requirements.
3
Compliance Testing
We test the loan files against industry, investor, and regulatory standards to identify any potential issues related to underwriting, documentation, or compliance.
5
Recommendations & Remediation
After completing the audit, we provide actionable recommendations to address any compliance gaps, along with support to resolve any issues and improve future loan origination processes.
2
Documentation & Data Review
Our team reviews all loan documentation, including application forms, credit reports, income verification, appraisal reports, and more. For pre-funding audits, we check for completeness and accuracy before the loan is disbursed. For post-closing audits, we ensure that all documents are present and compliant with investor and regulatory guidelines.
4
Reporting & Findings
We provide a comprehensive audit report, detailing any discrepancies, compliance gaps, or missing documents. For pre-funding audits, we focus on identifying any issues that may prevent funding. For post-closing audits, we address potential issues that could lead to repurchase requests or regulatory penalties.
Your Deliverables
After completing your Regulation AB 1122 audit, you will receive the following:
Comprehensive Audit Report:
This Comprehensive Audit Report outlines the findings, including any discrepancies, non-compliance issues, or documentation errors.
Detailed Compliance Checklist:
This Detailed Compliance Checklist ensures that all investor, regulatory, and internal requirements are met.
Recommendations Report:
This Recommendations Report offers actionable steps to resolve issues, mitigate risk, and improve loan quality for future transactions.
Post-Audit Support
Provides assistance in implementing corrective actions and improving loan origination & closing procedures.
Why Choose NDB?
At NDB, we bring extensive experience and industry knowledge to every Prefunding and Post-Closing Audit we conduct. Our team of experts understands the intricacies of mortgage lending and regulatory compliance, and we work diligently to identify risks, errors, and inefficiencies in your loan files.
Whether you need to ensure that your loans are ready for funding or protect against future buybacks and penalties, our audits provide the thorough review and detailed reporting you need to stay compliant and mitigate risk. We offer clear, actionable insights that help improve your processes and reduce the likelihood of compliance issues down the road. By partnering with NDB, you gain a trusted advisor committed to ensuring your loan files are in perfect order, every step of the way.
Key Highlights about NDB:
Expert Team: Certified professionals with extensive experience in compliance and cybersecurity.
Comprehensive Services: Offering a wide range of services, including SOC 1, SOC 2, PCI DSS, ISO 27001, HIPAA, GDPR, CCPA, and more.
Tailored Solutions: Customizing our services to meet the specific needs of various industries and organizational sizes.
Commitment to Excellence: Focused on delivering high-quality services that empower clients to thrive in a complex regulatory environment.
Client-Centric Approach: Prioritizing collaboration and communication to build strong partnerships with our clients.
California’s Leading Provider for All Things Compliance
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