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Helped a Leading Bank Originator Implement a Swift, Customized Technology Solution​ to Reduce Compliance Risk

•Helped the bank quickly address a QC compliance testing issue​
•Updated proprietary software to support a customized script in just 30 days​
•Enabled bank to expand monthly reporting without hiring staff or increasing compliance costs

Following the Great Recession, a major bank mortgage originator revamped its servicing and compliance framework to reduce risk. The internal compliance and quality control team began establishing more conservative auditing guidelines. During the process, the team recognized a need to test internal compliance around force-placed taxes. This issue occurs when a borrower who pays property taxes directly to the taxing body fails to do so, potentially triggering a lien on the home. The servicer steps in and advances the money on behalf of the borrower to pay the outstanding obligation, and then converts the loan to be escrowed for taxes, recouping its advance and collecting property taxes going forward within the monthly loan payment.​

The bank wanted to establish monthly testing to ensure its teams were following internal processes and procedures to notify borrowers and set up payment. 


The bank turned to SitusAMC, which was already performing monthly loan file reviews across the entire portfolio for the client’s quality control (QC) and compliance teams using Clarity, its proprietary loan-file review and audit software. That engagement included monthly reviews of periodic statements, escrows, hazard insurance, taxes, payment timeliness, etc., to identify any issues that might occur during the life of a performing loan. SitusAMC acts as an extension of the bank’s team, fulfilling all QC testing obligations for mortgages guaranteed by government agencies.


The bank engaged SitusAMC to support the development and implementation of a bank-specific testing script for force-placed taxes. SitusAMC’s QC team worked with the client to delineate the steps and time required of the task, and then coordinated with the SitusAMC development team to create a customized testing script for the client. The new script was incorporated in the next Clarity release cycle. Within 30 days of the request, SitusAMC was able to launch testing and provide results within the bank’s monthly Servicing QC report suites.