SCA QC Review – Q1 2025: Key Findings and Reminders
The Quality Control (QC) team at SCA completed the review of 516 loans in the first quarter of 2025, with overall production showing an increase compared to the previous quarter.
While this growth is positive, there was a notable uptick in exceptions as well, mainly in the following areas:
Closing Packages:
Missing required closing documents (e.g., Customer Information Form).
Initial Closing Disclosure (CD) not issued to all parties on time or evidence not provided.
Required addendums not being recorded.
Closing Disclosure (CD):
Evidence of notification to the borrower missing from the loan file when a new CD was issued post-consummation (letter matching CD date and reason for update).
Uniform Residential Loan Application (URLA):
Missing information or sections incomplete. Most borrowers apply online, and that process can sometimes allow borrowers to skip necessary information. Lenders are responsible for ensuring the final URLA is complete and accurate with all verified information.
New Debt Prior to Closing: How are you verifying that borrowers haven't incurred new debt before closing?
Refreshing credit reports?
Obtaining signed written documentation from the borrower?
Lenders can help limit these types of exceptions by implementing strong pre- and post- QC processes. Lenders are encouraged to review their internal processes in the identified exception areas to ensure compliance and accuracy.
If you are interested in learning more about recent QC trends, or how SCA can assist your team with pre- or post-QC services, please reach out to our Director, Bill Dolan, at wdolan@scapartnering.com or by phone at (617) 694-2617.
