When a business is responsible for handling the finances of their customers, such as those who handle mortgages, it is important to have quality assurance policies in place. These policies help to define the way that the business handles every step of the process in order to meet the needs of the client. In addition, it can make a difference in the way that the process takes place, allowing the company to meet any goals that may be established.
In order for everything to run as smoothly as possible, quality assurance audits may need to take place from time to time. These audits can serve a number of purposes that benefit both the company and the customers that use them. For example, having quality assurance checkpoints in place can make a difference in the loan origination process, minimizing the risks of loss and the possibility of repurchase.
The first step in a quality assurance audit is typically to take a close look at the policies that are in place. Reviewing the formal policy of the organization that is handling the finances can help to ensure that they are standing on solid ground. It allows the company to be guided through the loan process, from the origination of the loan to the time that it lands at the closing table. Without the proper policies in place, the process may be ineffective and there could be confusion involved that make it more likely for mistakes to occur.
It is also important to consider the hierarchy within the company. Although any quality assurance audit is going to consider all of the employees, it should never avoid reviewing the management. Without strong management in place, there are typically lackluster results and it could also result in mistakes that would be costly. When reviewing the employees, it is also important to ensure that they are on board with any quality incentives that may be in place. Those incentives exist in order to minimize issues that occur in the loan process.
Although fraud is not typically the focus of a quality assurance audit, it may help to identify any issues that exist in this regard. Employee fraud affects everyone within the company and it certainly can have an impact on the customer. By weeding out these issues through the auditing process, it can help to make the company stronger and to avoid serious problems, which could surface at a future date.
Finally, it is the responsibility of the auditor to review the records of the company and how they are being kept. Keeping proper records during the mortgage process is vital to the success of the company and protects the interest of the customer. It can help to point out any flaws that exist in the record-keeping which could be corrected.
The ultimate goal of the quality assurance audit is to ensure that the quality assurance standards set forth by the company are well-established and being followed closely. This is important in any company, but it is especially important in those who handle finances for their customers.