Quality Control: Loan File Review

This course is designed for those responsible for loan file review. Specifically, for those in the role of senior loan processors, underwriters, post-closing personnel with underwriting experience and new quality control personnel.

What it's about Students should be familiar with Corporate Policy and Procedures, Agency Quality Control requirements, Underwriting and Closing functions, fraud mitigation as well as regulatory compliance. With the assumption that a Quality Control Plan is in place; students will be able to take the requirements of the plan and execute the procedures.

Classes consist of five weekly modules with instructors delivered through the Academy Learning Management System.

Space is limited, so register today!

What will I learn?

Upon completion of the course, students will be able to:

  • Explain the reasoning behind the information obtained during the loan application process from a regulatory and agency perspective
  • Recognize any inconsistencies in a loan file
  • Determine when or if changes occurred during the application process
  • Analyze data integrity and recognize red flags
  • Complete a risk analysis on all loan files


During this course, students will interact with their instructors and fellow peers through a variety of activities that will assist them in building upon their already existing knowledge base of reviewing loan files and determining risk.


During the course the following topics will be covered:

Session One

  • Loan file flow and documentation responsibility
    • Reviewing the Loan Application
    • Initial Application versus Final Application
    • What’s required by agencies and/or Regulations
    • Data integrity – consistency and processes
  • Credit Reports
    • In-file versus Full Residential Credit Reports
    • Traditional credit versus Non-Traditional Credit
    • Relationship to Automated Underwriting System
    • FICO Scores
    • Requirements for non-purchasing spouse
    • Re-Verification requirement
    • Credit Report Red Flags
  • Income documentation
    • AUS requirements
      • Salaried employment and income Red Flags
      • Self-Employment
      • Review of Tax Returns and Transcripts
      • Re-verification requirement
      • Employment documentation red flags

Session Two

  • Asset Documentation
    • AUS requirements
    • Acceptable assets
    • Gift Letters
      • Specific requirements
      • Receipt of gift funds
      • Donor’s ability to give gift
      • Risk factor
    • Reviewing Occupancy Statements
    • Re-verification requirement
    • Asset red flags

Session Three

  • Appraisal Reports
    • Who can order an appraisal – Appraisal Independence Rule
    • Types of Appraisal Reports
    • Section by Section Review of Appraisal
    • Requirements
    • Data integrity
    • Desk Reviews
    • Field Reviews
    • Appraisal documentation red flags
  • Analysis of Underwriting Decision
    • Automated approval versus Manual approval
    • Review of Conventional Transmittal Summary FNMA 1008
    • Review of FHA Transmittal Summary HUD-92900-LT
    • Review of VA Loan Analysis VA 26-6393
    • Validating Underwriting Loan Approval and conditions to loan file documentation
  • Closing Documentation Review
    • Note
    • Mortgage/Deed of Trust
    • HUD-1
    • Preliminary Title
    • Flood/Hazard Insurance

Session Four

  • Regulatory Compliance – Loan level documentation requirements
    • Real Estate Settlement Procedures Act (RESPA)
    • Truth In Lending Act (TILA)
      • TILA/RESPA Integrated Disclosures
    • Equal Credit Opportunity Act (ECOA)
    • Fair Housing Act (FHAct)
    • Gramm-Leach-Bliley Act (GLB)
    • Fair Credit Reporting Act (FCRA)
    • Anti-Money Laundering and Bank Secrecy Act
    • S.A.F.E. Mortgage Licensing Act
    • PATRIOT Act
    • Consumer Financial Protection Bureau (CFPB

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