First Colony Mortgage Outsources Mortgage Compliance Audits & Saves 15% on What It Would Cost In-House

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Executive Summary

MetaSource has provided First Colony Mortgage quality control (QC) and audit services for approximately 300 mortgages per year on a pre-fund (10% of 3,000) and post-close basis (10% of 3,000) along with about 5 reverse mortgages per year.

By outsourcing mortgage compliance audits to MetaSource, the cost of First Colony mortgage QC is approximately 15% less than what it would cost to do it in-house, every year. This is because the following is saved:

  • The cost of one full-time, in-house auditor
  • Auditor training and keeping up with updates from Fannie Mae, Freddie Mac, FHA, VA, HUD, and the CFPB
  • The need for one manager to provide part-time supervision/oversight

“MetaSource has helped alleviate the burden of mortgage compliance auditing…Fannie Mae and Freddie Mac have many QC requirements and MetaSource keeps up with them and ensures we are in compliance – a load off of our plate.”

MetaSource Services Provided

Pre-Fund Audits

For pre-fund mortgage audits, First Colony randomly selects approximately 10% of all mortgage files from the month prior. Specific attention is paid to credit criteria, compliance and appraisals.

Post-Close Audits

As with pre-fund mortgage audits, First Colony randomly selects approximately 10% of all mortgage files in production from the month prior to validate the work performed by the underwriter on a pre-fund basis. Specific attention is paid to high-risk areas.

Reverse Mortgage Audits

All reverse mortgages are audited with specific attention paid to early payment loans that are over 60 days delinquent.

The First Colony Experience

According to First Colony’s compliance CEO and head underwriter, “MetaSource has helped alleviate the burden of mortgage compliance auditing. If we didn’t use MetaSource, we’d have to do it in house. It may initially appear cheaper until you take into account the costs of hiring and managing people. Additionally, Fannie Mae and Freddie Mac have many QC requirements and MetaSource keeps up with them and ensures we are in compliance – a load off of our plate.”

“MetaSource knows exactly what to look for in the mortgage file QC process and provides accurate information via their QLink™ software. We would recommend MetaSource to any mortgage originator or servicer, especially if they do in-house audits today.”

About First Colony Mortgage

First Colony Mortgage is a full service mortgage company founded in 1984 by John Aldrich and Scott Shelley. Most mortgages are processed, underwritten and closed in house. Since inception, First Colony Mortgage has funded over 25,000 loans and over $3.5 Billion in dollar volume. First Colony Mortgage provides fast, efficient service and is ready to help you get started on the home buying process.

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About MetaSource

MetaSource delivers intelligent document management, workflow automation, and business process management solutions to help organizations streamline processes, ensure compliance, and improve efficiency. With over 30 years of experience, MetaSource successfully meets enterprise needs with secure, reliable software and managed services.

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