RESULTS
Since implementing ACES, Lennar has:
- Increased audit output by 30%;
- Enhanced the organization’s ability to meet regulatory requirements and provide an efficient means of demonstrating due diligence during audits;
- Increased flexibility, improved access to information, and enhanced data-sharing capabilities with other business units; and
- Witnessed an overall improvement in the quality of their reviews.
Lennar Mortgage has successfully implemented ACES enterprise-wide, utilizing its capabilities for post-closing QC, pre-funding QC, and QC servicing reviews. The ACES platform offers Lennar Mortgage instant access to comprehensive reports, ensuring it is ready for GSEs, state regulators, and audits. Moreover, ACES has made Lennar Mortgage’s loan quality objectives a simple feat. ACES equips the quality control team with the necessary resources to complete their reviews efficiently. ACES robust questionnaires and reporting work together seamlessly, allowing Lennar Mortgage’s production team to handle exceptions swiftly.
“By partnering with ACES, we have witnessed an overall improvement in the quality of our reviews. The platform has enabled us to focus on pre-funding reviews and allocate our resources to other areas where defects need correction,” Melendez explained. “As a result, we have experienced an increase in audit output for both pre-funding and post-close loan reviews. Previously, we would handle only two or three loans per day, but now we consistently handle at least four post closed, and sometimes five when including pre-funds.”
Implementation and Customer Service
Implementing a new system takes time and guidance, but the ACES team didn’t miss a beat. They walked Lennar Mortgage through the entire process, including providing spreadsheets with detailed timelines, instructions, and data mapping to support the servicing team’s audits. In cases where Lennar Mortgage had questions or needed guidance, the ACES team provided hands-on assistance, answering inquiries and simplifying complex concepts.
“ACES is extremely responsive whenever we need something, no matter how big or small. We have a great, collaborative relationship with the customer service team. This is something our entire team really appreciates. We felt really supported throughout implementation and still do to this day as we’re up and running. The ACES team is truly just a phone call away,” she said.
ACES Managed Questionnaires: Enhancing Efficiency and Accuracy
Lennar Mortgage meets monthly to review ACES Managed Questionnaires (AMQs). These meetings gather the management team and supervisors to review each question thoroughly. When disagreements or doubts arise, Lennar Mortgage goes back to the ACES team for clarification. The ACES team always provides comprehensive responses, justifying the applicability of particular questions or answers with supporting evidence.
ACES CONNECT: Streamlining Communication and Enhancing Transparency
Lennar Mortgage has utilized ACES CONNECT across various roles, ranging from loan officers to underwriters and closers to operations managers. It serves as a centralized system that enables all business units to address exceptions for which they are accountable as the AOR (Area of Responsibility).
Given the scale of audits, Lennar Mortgage receives numerous responses, ranging from hundreds to sometimes thousands, depending on the audit’s size. ACES CONNECT proves beneficial due to its user-friendly nature, allowing AORs to log into their accounts and respond to exceptions. They can provide rebuttals, and auditors on the receiving end can review the appended information. If the requested documentation is provided, auditors can clear the exception. However, if additional feedback or documentation is needed, the exception reverts to an issued status, prompting the AOR for further action. Notably, ACES CONNECT records and timestamps all entries, ensuring a comprehensive audit trail.
This system plays a crucial role when dealing with GSEs (Government-Sponsored Enterprises) and state regulators. It enables the organization to document diligent efforts conducted by the QC team, showcasing a higher level of transparency. ACES CONNECT enhances the organization’s ability to meet regulatory requirements and provides an efficient means of demonstrating due diligence during audits.
Reporting Capabilities and Compliance Ease with ACES
When it comes to reporting, Lennar Mortgage values the ability to extract specific data. It often receives requests from state regulators and various stakeholders who prefer data presented in different ways. ACES facilitates streamlined reporting by extracting only the necessary data, whether it pertains to FHA or conventional loans or specific metrics like delinquency, to save time and effort and eliminate the need to sift through data manually.
In a recent QC calibration review with Fannie Mae, Lennar Mortgage was able to navigate it with ease. Fannie Mae mandated specific data fields from selected loans. With ACES reporting, Lennar Mortgage was able to provide the requested information promptly.
In comparison to other models, ACES provides notable benefits to the organization. During a MORA (Mortgage Origination Risk Assessment) audit, Fannie Mae observed the organization’s size and recommended transitioning to a stratified statistical sample for the conventional loan process. This recommendation acknowledged ACES as a robust tool capable of efficiently handling the organization’s scale and facilitating statistical sampling.
“The adoption of ACES has provided us with increased flexibility, improved access to information, and enhanced data-sharing capabilities with other business units,” Melendez noted.
Sampling: Streamlining Auditing Processes
Lennar Mortgage performs multiple random audits, including discretionary and withdrawn/denied audits. It also internally audits underwriters and processors.
Utilizing ACES’ sampling feature allows the organization to easily set up audits and precisely select which areas it wants to review. This capability streamlines the overall auditing process, from setup to selection and import of relevant data.
“Based on our experience, we highly recommend ACES to other organizations seeking an efficient and effective solution for quality control,” Melendez said. “The platform’s ability to streamline processes, facilitate collaboration, and deliver timely results has significantly contributed to the success of our quality control operations.”
