QC & A: Questions Answered at MBA’s 2022 RMQA Forum
Welcome to the QC&A! QC Ally’s take on a Q&A blog. QC&A will aim to answer questions on topics and events in the housing industry. Make sure to check our Knowledge Center regularly for lifecycle mindset issues impacting the mortgage industry.
This edition of QC&A focuses on the recently wrapped up Mortgage Bankers Association (MBA) Risk Management, Quality Assurance and Fraud Prevention Forum (RMQA). The event brought together the risk management, quality control (QC), underwriting and fraud prevention professionals in-person for the first time since 2020, and the QC Ally Team was proud to be a Platinum Sponsor!
The multi-day event had great energy with a variety of panels and speakers, including the GSEs, Federal Bureau of Investigation, MISMO and industry executives discussing topics affecting the mortgage QC compliance space. Here are five questions answered at the 2022 MBA RMQA:
1. WHAT DID FANNIE MAE SAY ABOUT LENDER PREPAREDNESS FOR CALIBRATIONS?
Fannie Mae provided an overview of the upcoming calibrations beginning in the fourth quarter of 2022. The calibrations will be conducted on top 50 lenders annually and 51-100 roughly once every 3-5 years. They may also conduct a QC calibration if they have concerns with loan quality performance from a lender. Fannie Mae will also reinstitute its Risk Management Bootcamp in-person in 2023!
QC Ally is helping our client partners prepare now! Reach out to learn more and get tips from the largest, 100% US-based QC Team.
2. DID FREDDIE MAC PROVIDE THOUGHTS ON FRAUD AND REPURCHASE TRENDS?
Freddie Mac said fraud remains below historical highs with some areas showing recent increases. The top areas they are seeing are undisclosed non-mortgage debt, occupancy misrepresentation, and borrowers not employed at closing. They also said repurchase trends rose through 2021 and into 2022. Repurchases were driven by higher volumes and rising defect rates with 40 days as the average time to resolve.
3. WHAT DID MBA PRESIDENT BOB BROEKSMIT HAVE TO SAY ABOUT THE PURCHASE MARKET AND LOAN QUALITY?
Bob Broeksmit provided opening remarks and praised the QC community and the importance of loan quality. He also said that lenders are making higher quality loans than ever before, and while we’ve shifted to a purchase market, home price appreciation is starting to slow down. The MBA anticipates a nearly 50 percent reduction in 2022 loan origination volumes (to $2.3 trillion), including a 72 percent drop in refinance volumes and a 12 percent decline in purchase originations, and Broeksmit said QC and compliance teams are “holding the line to protect your companies.”
4. WHAT WERE THE VIEWS FROM THE RISK MANAGEMENT EXECUTIVE PANEL ABOUT ARMS, ESG AND WOMEN LEADERSHIP?
Sponsored and moderated by QC Ally, this well-attended panel of Risk Management Executives convened to provide insight on the lending environment, including how to maintain high quality operations, manage credit risk, and govern organizations in unpredictable times. The Executives said the mortgage industry is well regulated and making better quality loans – meaning they are not concerned about ARMs. They spent time discussing the important role of housing when discussing climate change and ESG and provided tips on how to mentor and advocate for women leadership and the importance of a diverse, inclusive teams for the health of organizations.
5. WHAT WERE COMMON THEMES OF THE FORUM?
The MBA RMQA community seems to have some general themes of what they’re monitoring, including fraudulent documents, occupancy misrepresentation, e-closings, and appraisals. These themes were on top of the broad industry concerns around increase in fraud, ensuring companies are educated on Environment, Social and Governance, and monitor for rising delinquencies.
As the conference season is in full swing, the Mortgage Bankers Association will move from Music City to the Nation’s Capital to hold their next event, the Regulatory Compliance Conference, September 18th – 20th. You can still sign up and learn more at https://www.mba.org/conferences-and-education/regulatory-compliance-conference, and look for QC Ally’s COO & President Donna Gibson and CMO Nicole Booth while you’re there!
QC Ally is your partner in enterprise loan quality and audit services. Have questions following the MBA RMQA? We’re here to help!