Several former Cogent clients have transitioned to Fannie Mae and some are leading the drive to “make loan quality more certain and simple.” In particular, the Fannie Mae QC and Underwriting Boot Camps are bringing a welcome sea change to a formerly under-served mortgage quality control and compliance function.
Consumer Financial Protection Bureau (CFPB)
While the CFPB’s role continues to evolve, the robust enforcement actions of its early years were daunting to many lenders and servicers. Several Cogent clients hosted CFPB auditors for months at a time and were uniformly pleased with the performance of their Cogent QC Systems. At the same time, Cogent received several good ideas about how to enhance Cogent systems to more quickly and easily meet the CFPB’s high standards. We continue to respond to CFPB expectations with continuous enhancements.
Rating Agencies are familiar with Cogent QC Systems and have commented favorably in their reviews of Cogent clients:
Fitch “[Client] has instituted a more robust QC and audit review since Fitch’s last review. [They have] created a separate internal QC group, complementing audits customarily conducted by the compliance unit. Also, … Cogent [QC System] was implemented this year … which provides highly customizable statistical sampling and detailed reports … All functions are audited against [Client]’s policies and procedures… Fitch views the new QC and audit programs, various internal layers of scrutiny, and regulatory oversight favorably.”
Standard & Poor’s “The company implemented a Cogent [QC System] … that facilitates reviews through statistical sampling, analysis and reporting. All Cogent reports are provided to the parent… Standard and Poor’s believes [Client]’s auditing and compliance practices provide a solid foundation to guard against risk of loss to itself and its investors due to … errors or inefficiencies.”