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- 1. Mela Capital Group Mitigating Mortgage Risk LOGO
- 2. www.MelaCapitalGroup.com Mortgage Quality Control Mela Capital Group Experience. The MCG difference!
- 3. www.MelaCapitalGroup.com Contents Industry Issues Middle Market Needs Auditing Solutions
- 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.
- 13. www.melacapitalgroup.com Manage Operational Risk Address operational issues Loss Mitigation Oversee policy enforcement Reunderwriting Identify opportunities Postfunding QC Manage risk Prefunding QC
- 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
- 17. www.melacapitalgroup.com MCGPartners Knowledge MCG
- 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
- 21. www.melacapitalgroup.com Forensic Auditing HUD Compliance Mortgage Fraud FNMA LQI Compliance Litigation Support SEC Violations
- 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! LOGO