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Mortgage loan QC assessment tool offers ‘TrueView’ of lender errors

QC View will identify lenders’ most frequent errors and compare them across industry averages

Lenders, investors and regulators who need to compare the quality of loan pools within an individual lender’s portfolio or to the rest of the mortgage industry will have a new tool this summer in the form of QC View, a benchmarking solution developed by Mortgage TrueView.

The business data and intelligence provider announced this week that it will launch QC View in July. The tool identifies the most frequent errors and defects frequently associated with unacceptable loans made by lenders and across the industry.

It compares a lender’s overall error rate and compares it to specific lenders or industry averages by loan dimensions such as loan type, occupancy type, debt-to-income ratio, loan-to-value ratio and FICO score.

For example, an investor may want to know the percentage loans produced by a particular lender with a 650 FICO score that were given an “unacceptable” rating. Using QC View, the investor will be able to compare that percentage to the rest of the industry to determine if the lender’s loan quality for loans with 650 FICOs was higher or lower than the industry average, Mortgage TrueView said.

“To be able to accurately assess loan quality is everybody’s goal,” said Becky Walzak, Mortgage TrueView’s executive vice president and director of regulatory compliance.

“Regulators need to know which lenders are meeting requirements; originators want to know how their loan quality compares to competitors; and the secondary market needs better information about the quality of loans they are securitizing. With QC View, everyone will be able to get the answers they need.”

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Mortgage TrueView also announced the formation of a QC View Working Group and is inviting mortgage industry participants to assist in the development of standard data definitions and formats behind QC View. Those interested in becoming part of the working group should contact either President and CEO David K. Moffat at david@mortgagetrueview.com or (610)787-2455, or Walzak at becky@mortgagetrueview.com or (561) 459-7070.

Email Amy Swinderman.