Vision Pro preaudit balance adjustment

PreAudit Balance Adjustment^ã

Often, complete payment history is not available, especially with acquired loans.   MACC-TRAC/Vision Pro^© creates a Preaudit Balance Adjustment

Because of the manner in which MACC-TRAC/Vision Pro^ã stores and manages data, any loan that is recalled or updated with new information can be fully recomputed each time.  This means that customer inquiries are always up to date and servicing for sale can always be supported by the most recent, 100 percent accurate quality assurance report.

 Certain procedures are necessary to conduct valid ARM audits whether you do in-house or outsource auditing

The following procedures are considered essential:

• MQA consults with Client to determine audit practice and legal principles. Differences researched and  documented. Final determination rests with client and its legal counsel.

• Client selects calculation protocol preference: net difference, lowest interest or FNMA guideline 94-04 and a plan to implement different protocols for different loan pools.

• MQA consults with Client to determine a risk-based schedule targeting loan pools by type and source. Acquired loans, loans subject to multiple system conversions and correspondent loans generally have a higher rate of error.

• MQA assists Client in coordinating download of specific data from client's servicing system.

• MQA will consult with Client regarding access to all necessary documentation refered  to as "controlling documents" (Notes, Riders, Security Instruments, Modifications, etc.) together with  payment and servicing records in hard copy or image documents and system data.

• Note: MACC-TRAC/Vision Pro^© is designed to minimize excessive research of older payment histories and unnecessary data entry, particularly when implemented in-house. If the reconstructed loan reconciles with the servicing balance, the necessity of entering payment  history may be eliminated. This is an extremely cost effective feature.

• Audits are processed using MQA’s proprietary MACC-TRAC/Vision Pro^© computer software program. Each loan is totally reconstructed from date of origination to last available servicing date (record date). If complete history is not available, MACC-TRAC/Vision Pro^© institutes a PreAudit Balance Adjustment^© to the point in time where history becomes available.The pre-audit balance adjustment may be -0- or a negative or positive dollar amount. This process identifies residual errors. The cause of residual errors can sometimes be determined by more extensive file review. Missing modifications or curtailments may  explain the difference. When no information can be discovered, the residual error provides notice of a potential claim.

• If the reconstructed loan does not reconcile with the current servicing balance, payment history is entered on the system and reconciled against the reconstructed model. The system will produce an individual report for each loan indicating correct reconciliation, undercharge or overcharge, if any, together with a payment reconciliation schedule.