On-Site Simulated Audits

HUD and the State licensing authorities are authorized to randomly visit mortgagees and loan correspondents with only minimal notice or advance warning to conduct on-site compliance audits of their operations.

QC-MAC provides a service to mortgagees and loan correspondents of conducting a "simulated" HUD and/or State Licensing authority audit. The big difference, however, is we are conducting the audit on your behalf. Our "simulated" audit essentially gets you ready for one of the regulatory or licensing agency audits. After conducting our "simulated" audit, we will provide you with a report that will tell you what is and is not in compliance with the State Licensing Agency and HUD requirements. QC-MAC is not a law enforcer but we serve as "Compliance Watch Dogs" for you. Our review provides management with an external view of its operations, internally.

QC-MAC's "Simulated" HUD/State Licensing Agency Audits consist of the following:

Sending management a list of the information required to be available during the "simulated" audit prior to the actual site visit.

Conducting an entrance conference with senior management at the beginning of the on-site "simulated" audit to review the policies and operational procedures of the office from top to bottom.

Assessing your operation's compliance with HUD/State Licensing Agency, as appropriate, regulations and other local, state and federal laws, by reviewing closed files, trust fund management and record keeping procedures, general origination operating procedures, management oversight and licensing requirements.

Conducting an exit conference at the end of the on-site visit with senior management to review verbally the findings and observations made, including technical violations or non-compliance with regulations or laws observed during the "simulated" on-site audit. Issues that require management's immediate attention also will be highlighted.

Approximately 30 days after the "simulated" on-site audit is completed, QC-MAC will provide management with a written report identifying areas of non-compliance, technical violations and/or violations of laws or regulations with appropriate citations. Our report will include recommendations for correcting problems and suggestions for bringing identified areas into compliance.