4. www.MelaCapitalGroup.com
Industry Impact
Mortgage
Providers
Changing regulatory
Foreclosure crisis environment
$130 Billion in Buybacks Dodd Frank Act
Fannie Mae enhanced LQI
Assignment fraud requirements
Securitization class action HUD quality control
litigation requirements
Repurchase demands
Third Party Originator
oversight Mortgage fraud epidemic
5. 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 accountability will 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
6. 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.
7. 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.
8. 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.
9. 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.
10. www.MelaCapitalGroup.com
Industry Impact
1 2 3
Maximum return Secure, expedient Optional audit
on your Quality paperless platform cycles
Control investment
Repurchase and Agency site audit
Expedient loss mitigation preparation
turnaround times support
Regulatory and
*Management Customized quality compliance training
reporting in ‘plain control processes and support
English’
11. www.melacapitalgroup.com
MCG Strategy
MCG
Mortgage Legal
Banking Industry
•MBS
Dodd Frank ACT
•
Mortgage
•Safe ACT
Regulatory •
Insurance
•FFREA
•Warehouse lenders
•USPAP
Legal •Originators
•SEC
•Appraisal
•Title Agents
Advisory •Realtors
Consumer Protection
12. www.MelaCapitalGroup.com
The MCG Way
Experience Automation Oversight
MCG auditors are MCG institutes a
MCG works with the
industry-leading, layered oversight
leading mortgage
experienced, manual process of quality
industry technology
due-diligence control checks and
innovators to
underwriters who balances by
develop and
receive on-going, seasoned mortgage
implement the most
advanced loan industry
comprehensive data
quality and fraud management to
verification tools
identification measure procedural
available.
training. effectiveness.
14. www.melacapitalgroup.com
Experience
$10 billion loans audited
Unparalleled
Manual Quality Control Underwriters Experience + Exceptional
Staffing =
World Class Quality
Industry Regulatory Participation
15. www.melacapitalgroup.com
MCG Support
Operational Risk
Assessment
QC Policy & Procedure
development
Quality Control Risk
Auditing
Management Reporting,
Management
Training
16. www.melacapitalgroup.com
MCG Process
Fraud Compliance
Mitigation
Valuation Loan Income, Assets,
File Employment
Occupancy Credit
18. www.melacapitalgroup.com
MCG Platform
Paperless
SAS 70/CICA 5970
Redundant compliant
data security
19. www.melacapitalgroup.com
Our Clients
Banks, Law Law Consumer
Credit Unions Firms Enforcement Agencies
Full service suite of Mortgage Insurance Mortgage fraud Consumer
mortgage risk claims reviews * investigations and financial education
mitigation and quality Mortgage loan level forensic fraud audit * Mortgage
assurance products auditing * Forensic training and industry training *
and services to meet document support * Expert Legislative action
your deliverable examination * witness services advisory * Policy
requirements, audit Expert witness including development *
standards and reporting and underwriting Expert public
servicing loss testimony * Forensic malpractice, speaker, author
mitigation needs. financial valuation, and
investigations * Staff compliance *
training. Expert public
speaker, author
20. www.melacapitalgroup.com
Quality Control Services
Training
Summary reporting
QC Auditing
Regulatory updates
QC Planning Prefunding QC auditing
On-site staff training
Postfunding QC auditing
Agency approved QC
Web-based staff training
Planning
FNMA LQI compliance
Agency, HUD, OCC audit
Third Party Originator
HUD compliance preparation
oversight
Loan quality sampling Mortgage fraud mitigation
Policy and Procedure
training
development
Repurchase auditing
Operational efficiency testing
Mortgage fraud auditing
Loss mitigation strategy
22. www.melacapitalgroup.com
360 Quality Assurance
Operational Excellence
TPO Loan Level Custom Audit
Oversight QC Training Support
23. Mela Capital Group
www.MelaCapitalGroup.com
Phone: 866-382-7566
Fax: 866-733-7992
Email: info@melacapitalgroup.com
Experience. The MCG difference!
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