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Why
does your company need Quality Control/Policy and Procedures Manuals?
1.) To Meet the
Requirements of the States when applying for/renewing a License.
States hold employers liable for the
actions of employees. Without documented policies, the Regulator
cannot be sure the employer has established standards of conduct and
best practices.
2.) To Answer
Operational Concerns of a Regulator.
Often lenders do not have
sufficient operational, credit policy, or process management support
which can result in concerns for examiners. Comprehensive,
cohesive policies and procedures are the proper response to this concern
3.) To Meet the Requirements
of FNMA, FHLMC, FHA/VA, warehouse lenders and correspondent investors.
Written Policies and Procedures are a
requirement of the agencies when you apply for status as a seller or
servicer
4.)
To
Remove Legal Liability and Support Errors and Omissions
If
you do not have written policies and procedures you have no recourse
against your employees in the event of any violations.
This is critical if you have to discipline an employee
or defend yourself in a Legal Action
5.)
To Provide an Internal Training Program
Mundane,
repetitive training is managed uniformly. Handle simple tasks
that consume an inordinate amount of management time like training
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a
receptionist how to answer the phones, manage communications, or
order supplies a
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new
processor to submit a loan, order a credit report or appraisal, or
set up a loan
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a
newly hired loan officer what the requirements for completing a
registration form, lock in agreement, application, or good faith
estimate
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an
underwriter what the underwriting flow is, who the customers are,
the difference between a wholesale submission and retail
submission;
-
an
office manager how to go about hiring, interviewing, reviewing
employees or setting up a new branch;
6.)
Avoid Misinformation
In
any of these areas documenting the process is time consuming.
Worse yet, the instruction for procedures and "how to" do something as
simple as determine which credit bureau or appraiser to use tends to
change from person to person. This can perpetuate misinformation.
7.)
Initial Internal Training for Employees.
Avoid repetitive process
instruction and redundant errors. Policies and procedures manuals give you the opportunity to
train a position specific function. They become the foundation
for your internal new employee training program.
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