Shelton, Connecticut-based ""Clayton Holdings LLC"":http://www.clayton.com, which provides risk analysis, loss mitigation, operational solutions, and staffing services to the mortgage industry, announced Tuesday that it has incorporated Fannie Mae's newly announced quality control standards into its underwriting offerings.[IMAGE]
While the GSE's requirements take effect at various times over the next few months, Clayton Holdings says it is able to help lenders integrate these changes now.
Fannie Mae's new Loan Quality Initiative, outlined in ""Lender Letter LL-2010-03"":https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2010/ll1003.pdf, specifies the policies and process and technology enhancements that it will require from sellers in order to mitigate loan repurchase risk.[COLUMN_BREAK]
Many of the requirements will require lenders to create new written operational work flow procedures and add activities that will be required pre- as well as post-closing. For example, lenders will now be required to confirm 10 basic data elements for every new loan prior to loan closing as well as perform an audit of all high-risk loans, as defined by Fannie Mae, prior to and after loan funding.
Clayton says it is well positioned to help clients meet the new standards through both its consulting and outsourcing businesses. On an outsourcing basis, Clayton currently offers a wide range of underwriting, due diligence, compliance assurance, and quality control services to help lenders and aggregators meet these new quality control targets, the company said.
Clayton says it has already made adjustments within its own systems and procedures to meet the new quality control standards, while the company's consulting services unit can help lenders build their own solutions to meet Fannie Mae's newly issued standards.
""Meeting industry standards is always an essential part of operating in the mortgage industry, but in today's environment having the ability to quickly react to changing regulatory demands is vital,"" said Tom Donatacci, EVP at Clayton Holdings. ""Whether building or outsourcing, we provide our customers with the ability to meet today's quality control demands and the flexibility to meet tomorrow's regulatory and industry demands.""