Early Payment Default Investigations HUD's Mortgagee Letter 99-15 advised mortgagees and loan correspondents of HUD's regulatory authority to terminate lenders' authorizations to originate single family loans or alternatively, place lenders on Credit Watch Status in geographic areas where the lender has a high rate of early defaults and claims. To assist you to remain off the credit watch list, QC-MAC has upgraded its early payment default reviews into early payment default investigations. Our investigation includes a thorough review of: the purchase agreement and escrow instructions; the mortgage application; the verifications of deposits and gift funds; verifications of employment/W-2s/tax returns; verifications of signature consistency and social security numbers; the HUD-1 and appraisal; the borrower's intent to occupy the property; and the chain of title ownership of the property. At the conclusion of the investigation, QC-MAC issues a report of findings for each area reviewed, including our opinion of whether the file contains significant discrepancies, false statements, program abuses and/or possibly fraud. If the file contains some or all of these problems, QC-MAC will recommend how you should handle the situation. Our early payment default investigations provide management with an external view, internally.
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