Checklist

Signs Your Loan Quality Control Plan is Flawed

ABOUT THIS CHECKLIST 

When it comes to consumer lending, it is vital to ensure that your operations are built on a foundation of quality. If your loan quality is compromised, it can affect your liquidity and increase risk when it comes to safety and soundness compliance practices. This checklist was designed to help consumer lenders assess their current QC processes and determine if their loan quality is at risk.

WHO SHOULD COMPLETE THIS SELF AUDIT:

  • If you are outsourcing your quality control to a third-party vendor
  • Performing QC in-house using an audit technology vendor
  • Performing QC in-house using your own home-grown system

 

SELF ASSESSMENT IS A BEST PRACTICE

 As a best practice, it is important to conduct an annual self-evaluation of your current quality control (QC) and compliance process to ensure you are utilizing the most efficient methods to best meet the needs of your organization. All the items included in the checklist should be viewed as red flags and can negatively affect your overall loan quality. If any of these items apply to your organization, it is time to reassess your current quality control process.