LOGO
Mela Capital GroupMitigating Mortgage Risk
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Mortgage Quality Control
Mela Capital Group
Experience. The MCG difference!
www.MelaCapitalGroup.com
Contents
Auditing Solutions
Middle Market Needs
Industry Issues
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Industry Impact
Foreclosure crisis
$130 Billion in Buybacks
Assignment fraud
Securitization class action
litigation
Third Party Originator
oversight
Mortgage
Providers
Changing regulatory
environment
Dodd Frank Act
Fannie Mae enhanced LQI
requirements
HUD quality control
requirements
Repurchase demands
Mortgage fraud epidemic
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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
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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.
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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.
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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.
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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.
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Industry Impact
1
Maximum return on your Quality Control investment
Expedient turnaround times
*Management reporting in ‘plain English’
2
Secure, expedient paperless platform
Repurchase and loss mitigation support
Customized quality control processes
3
Optional audit cycles
Agency site audit preparation
Regulatory and compliance training and support
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MCG Strategy
Regulatory
Legal
Advisory
MortgageBanking
•Dodd Frank ACT•Safe ACT
•FFREA•USPAP
•SEC
LegalIndustry
•MBS•Mortgage Insurance
•Warehouse lenders•Originators
•Appraisal•Title Agents
•Realtors
MCG
Consumer Protection
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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.
The MCG Way
Experience Automation Oversight
Loss Mitigation
Reunderwriting
Postfunding QC
Prefunding QC
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Manage Operational Risk
Address operational issues
Oversee policy enforcement
Identify opportunities
Manage risk
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Experience
$10 billion loans audited
Manual Quality Control Underwriters
Industry Regulatory Participation
Unparalleled
Experience + Exceptional
Staffing =
World Class Quality
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MCG Support
Risk
ManagementManagement Reporting,
Training
Quality Control
Auditing
QC Policy & Procedure
development
Operational Risk
Assessment
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MCG Process
Loan
File
ComplianceFraud
Mitigation
Income, Assets,
Employment
Credit
Valuation
Occupancy
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MCG Partners
MCG
Knowledge
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MCG Platform
Redundant
data security
SAS 70/CICA 5970
compliant
Paperless
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Our Clients
Banks,
Credit UnionsLaw
Firms
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
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Quality Control Services
QC Auditing
Training
QC Planning
Agency approved QC
Planning
Third Party Originator
oversight
Policy and Procedure
development
Operational efficiency testing
Loss mitigation strategy
Prefunding QC auditing
Postfunding QC auditing
FNMA LQI compliance
HUD compliance
Loan quality sampling
Repurchase auditing
Mortgage fraud auditing
Summary reporting
Regulatory updates
On-site staff training
Web-based staff training
Agency, HUD, OCC audit
preparation
Mortgage fraud mitigation
training
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FNMALQI Compliance
HUDCompliance
Mortgage Fraud
SEC Violations
LitigationSupport
Forensic Auditing
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360 Quality Assurance
Operational Excellence
Loan Level
QC
Custom
Training
Audit
SupportTPO
Oversight
LOGO
Mela Capital Group
www.MelaCapitalGroup.com
Phone: 866-382-7566
Fax: 866-733-7992
Email: [email protected]
Experience. The MCG difference!