4. Industry Impact<br />www.MelaCapitalGroup.com<br />Mortgage Providers<br /><ul><li>Changing regulatory environment
5. Dodd Frank Act
6. Fannie Mae enhanced LQI requirements
7. HUD quality control requirements
8. Repurchase demands
9. Mortgage fraud epidemic
10. Foreclosure crisis
11. $130 Billion in Buybacks
12. Assignment fraud
13. Securitization class action litigation
14. Third Party Originator oversight</li></li></ul><li>www.MelaCapitalGroup.com<br /> Industry Impact<br />$170 Billion in Buybacks<br />‘Underwriter malpractice’ Breaches of policy, Operational procedure failure, Insider collusion, Organized fraud, Ineffective underwriting guidelines, and Third party originator risk result in ‘repurchases’.<br />Loan Quality accountabilitywill remain in effect long after this crisis is behind us.<br />Securitization fraud subjects institutions handling mortgage loans to requirements of the Federal Fraud Enforcement and Recovery Act <br />
15. www.MelaCapitalGroup.com<br /> Industry Impact<br />Assignment Fraud<br /><ul><li>Compliance before, during and after the funding process are critical to the future viability of today’s mortgage banker.
16. Comprehensive policies and procedures are not enough to protect your firm. Knowledgeable staff, ongoing oversight and routine loan quality auditing are vital to institutional health and longevity. </li></li></ul><li>www.MelaCapitalGroup.com<br /> Industry Impact <br />Securitization Class Action Litigation<br /><ul><li>Today exposure to risk is greater than ever before. Risk management must be assessed institutionally from originations through securitizations. Operational procedural deficiencies are the catalyst for the mortgage meltdown.
17. Insider whistle-blowing suits, Mortgage Insurance claims disputes, Shareholder complaints and foreclosure defense firms have reached epidemic proportions. Billions of dollars are being spent annually on loan quality defense as case law is handed down weekly against the industry.</li></li></ul><li>www.MelaCapitalGroup.com<br /> Industry Impact<br />Third Party Originator oversight<br /><ul><li>The FBI confirms independent industry findings: </li></ul>“Over 80% of mortgage fraud is conducted by <br /> industry insiders.”<br /><ul><li>Agencies and courts are holding Lenders accountable for their affiliate relationships. You cannot afford to be caught off guard by industry insiders colluding to defraud your firm.</li></li></ul><li>www.MelaCapitalGroup.com<br /> Industry Impact<br />Middle Market futures bright!<br /><ul><li>The needs of middle-market Mortgage Bankers are unique.
18. Unlike their larger counterparts, credit unions and regional banks’ access to credit quality resources and reserves for legal resources and repurchases may not be as robust.
19. On the other hand, mid-market mortgage providers have more control over policy development and procedural enforcement than larger institutions, and more control often leads to better bottom-line performance.</li></li></ul><li>Industry Impact<br />1<br />2<br />3<br /><ul><li>Maximum return on your Quality Control investment
20. Expedient turnaround times
21. *Management reporting in ‘plain English’
22. Secure, expedient paperless platform
23. Repurchase and loss mitigation support
24. Customized quality control processes
25. Optional audit cycles
26. Agency site audit preparation
27. Regulatory and compliance training and support</li></ul>www.MelaCapitalGroup.com<br />
39. www.MelaCapitalGroup.com<br /> The MCG Way<br />Experience<br />Automation<br />Oversight<br />MCG works with the leading mortgage industry technology innovators to develop and implement the most comprehensive data verification tools available.<br />MCG auditors are industry-leading, experienced, manual due-diligence underwriters who receive on-going, advanced loan quality and fraud identification training. <br />MCG institutes a layered oversight process of quality control checks and balances byseasoned mortgage industry management to measure procedural effectiveness.<br />