www.MelaCapitalGroup.com Industry Impact $170 Billion in Buybacks ‘Underwriter malpractice’ Breaches of policy, Operational procedure failure, Insider collusion, Organized fraud, Ineffective underwriting guidelines, and Third party originator risk result in ‘repurchases’. Loan Quality accountabilitywill remain in effect long after this crisis is behind us. Securitization fraud subjects institutions handling mortgage loans to requirements of the Federal Fraud Enforcement and Recovery Act
www.MelaCapitalGroup.com Industry Impact Assignment Fraud
Compliance before, during and after the funding process are critical to the future viability of today’s mortgage banker.
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.
www.MelaCapitalGroup.com Industry Impact Securitization Class Action Litigation
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.
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.
www.MelaCapitalGroup.com Industry Impact Third Party Originator oversight
The FBI confirms independent industry findings:
“Over 80% of mortgage fraud is conducted by industry insiders.”
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.
www.MelaCapitalGroup.com Industry Impact Middle Market futures bright!
The needs of middle-market Mortgage Bankers are unique.
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.
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.
www.MelaCapitalGroup.com The MCG Way Experience Automation Oversight MCG works with the leading mortgage industry technology innovators to develop and implement the most comprehensive data verification tools available. MCG auditors are industry-leading, experienced, manual due-diligence underwriters who receive on-going, advanced loan quality and fraud identification training. MCG institutes a layered oversight process of quality control checks and balances byseasoned mortgage industry management to measure procedural effectiveness.
www.melacapitalgroup.com Experience $10 billion loans audited Unparalleled Experience + Exceptional Staffing = World Class Quality Manual Quality Control Underwriters Industry Regulatory Participation
MCG Support Quality Control Auditing www.melacapitalgroup.com Operational Risk Assessment QC Policy & Procedure development Risk Management Management Reporting, Training
MCG Process www.melacapitalgroup.com Compliance Fraud Mitigation Loan File Income, Assets, Employment Valuation Occupancy Credit
MCG Partners IAFCI FQC RMA MCG PHL MBA WBENC www.melacapitalgroup.com Knowledge
www.melacapitalgroup.com MCG Platform Paperless SAS 70/CICA 5970 compliant Redundant data security
www.melacapitalgroup.com Our Clients Law Firms Banks, Credit Unions Law Enforcement Consumer Agencies Full service suite of mortgage risk mitigation and quality assurance products and services to meet your deliverable requirements, audit standards and servicing loss mitigation needs. Mortgage Insurance claims reviews * Mortgage loan level auditing * Forensic document examination * Expert witness reporting and testimony * Forensic financial investigations * Staff training. Mortgage fraud investigations and forensic fraud audit training and support * Expert witness services including underwriting malpractice, valuation, and compliance * Expert public speaker, author Consumer financial education * Mortgage industry training * Legislative action advisory * Policy development * Expert public speaker, author
www.melacapitalgroup.com Quality Control Services QC Planning Agency approved QC Planning Third Party Originator oversight Policy and Procedure development Operational efficiency testing Loss mitigation strategy Training Summary reporting Regulatory updates On-site staff training Web-based staff training Agency, HUD, OCC audit preparation Mortgage fraud mitigation training QC Auditing Prefunding QC auditing Postfunding QC auditing FNMA LQI compliance HUD compliance Loan quality sampling Repurchase auditing Mortgage fraud auditing