Loan-Level Targeted Compliance Testing

Clayton® helps clients build servicing quality control plans that meet or exceed GSE and HUD requirements. Clayton can also assist with targeted loan-level testing in specific content areas where outside audit risk or potential audit violations are costly.

We offer:

Full Compliance

Clayton’s Full Compliance loan-level testing offers clients 70 different modules from which to choose, based on their specific needs. Our Full Compliance service provides granular insight into many different servicing areas, providing clients a complete picture of how their portfolio is being serviced.

QC High Risk

Clayton’s QC High Risk loan-level testing is designed to more broadly evaluate servicing across a smaller module selection. This service is geared to clients in need of a higher-level, less focused QC program that tests main servicing areas.

Hud QC/Fannie

Clayton has several options when it comes to specific regulation testing. HUD QC and Fannie and Freddie specific modules are just a few examples of federal and GSE specific testing where testing modules are tailored to the specific loan type in a client’s portfolio.

Clayton’s most requested loan-level compliance reviews include:

Claims & Advance Reviews

Mitigate risk associated with investor claims following property liquidation or as part of the loss mitigation process.

Early Buyout Reviews

Obtain transparency into potential risks and servicing compliance for loan pools purchased through an early buyout.

Flood Insurance Compliance

Avoid large servicer fines by ensuring flood compliance through oversight of your riskiest loans.

Loss Mitigation

Maintain loss mitigation volumes as Clayton helps complete full underwriting reviews and render eligibility decisions.

Loan-Level Targeted Compliance Testing Examples

Regulatory Servicing Quality

Clayton performs continual loan-level testing on behalf of a GNMA servicing client. Our monthly testing covers the HUD Servicing Quality Control requirements and includes an assessment of operational policies and procedures.

Flood Insurance Vendor Testing

In advance of the OCC’s annual audit, Clayton will perform loan-level testing on loans secured for properties located in a flood zone. We validate the various FDPA requirements, allowing the client to remediate identified issues before an OCC audit. FDPA violations are $2,000 per finding, representing a significant monetary risk to banks if the OCC identifies problems during the audit. To instill confidence in future audits, Clayton also performs ongoing flood compliance testing to ensure that the client’s insurance vendor consistently follows remediated procedures.

Claims & Advance Reviews

Clayton performs a deep dive into previously filed FHA and GSE claims for many clients. We reconcile filed claims to ensure accuracy, completeness and potential for a supplemental claim opportunity. Our reviews detail the total dollar amount of issues identified and the potential for recovery through a supplemental claim.

Loss Mitigation & Underwriting Reviews

Clayton offers a variety of solutions, including validation of loss mitigation timelines and compliance analysis of loss mitigation decisions.

Partner with Clayton today.

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