Jul 8, 2024 2024-09
Urgent: Improvement of Purchase File Quality Necessary
Dear Participating Lenders:
New Mexico Mortgage Finance Authority (MFA) respectfully requests all participating lenders take immediate action to ensure loans are closed correctly and that files are accurate and complete before uploading to LenderConnection.
There have been file deliveries with a large percentage of incomplete and/or serious defects. These files cause staff to spend an extraordinary amount of time contacting lenders to resolve issues, and some files have had incurable defects.
Contending with defective loans impedes our ability to purchase loans in a timely manner, which adversely affects all lenders. Certain types of defects, such as incorrect loan documents and interest rates, can negatively impact borrowers as well. Moreover, if defects should go unnoticed, it could have a detrimental impact on MFA’s relationships with our investors.
We are aware that some lenders have made significant reductions in staff and are facing challenges related to the resulting lack of capacity. While we are sympathetic to companies experiencing these issues, we must work together to find a solution.
With your help and commitment, we are confident this situation can be rectified immediately. We urge all lenders to review their quality control processes and make whatever adjustments are needed. Furthermore, we ask that priority be given to the resolution of any currently outstanding purchase conditions and trailing documents.
Defective loans may result in an adjustment to lender compensation or MFA’s refusal to purchase the loan.
Closed loan delivery checklists may be accessed in the Lenders and Realtors section of MFA’s website or through links found on LenderConnection’s login page.
Your cooperation is greatly appreciated.
Should you have questions, please contact a member of the MFA Homeownership Department at 505-843-6880 or by email: singlefamily@housingnm.org.
