Mortgage Lender Audit
Comprehensive audits for mortgage lenders, correspondents, and mini-correspondents.
Audits Built for Lending Operations
Mortgage lending operations are complex. Between trust account compliance, investor reporting, secondary market transactions, and multi-state regulatory requirements, you need an auditor who understands the moving parts—not one who needs six months of education before they can start.
Guidepost's Lender Audit covers the full scope of mortgage lending compliance, from warehouse line reporting to escrow trust verification to state regulatory filings. Built for mortgage lenders, correspondents, and mini-correspondents.
We serve both non-delegated and delegated correspondent lenders, understanding the distinct compliance requirements each faces. Delegated lenders carry underwriting authority and the associated risk exposure, requiring more rigorous audit procedures. Non-delegated lenders operate under investor underwriting but still face warehouse line covenants and state regulatory requirements. We tailor our approach to your specific lending model.
What's Included in Our Lender Audit
- Full GAAS-compliant audit of lending operations
- Trust and escrow account verification and compliance
- Investor and warehouse line reporting compliance
- Multi-state regulatory filing support
- Management letter with operational recommendations
- Loan-level sampling and testing procedures
- Secondary market transaction verification
Who Needs a Mortgage Lender Audit
Non-delegated correspondent lenders
Required to submit audited statements to warehouse lenders and operating under specific investor guidelines. Our audit verifies compliance with all requirements.
Delegated correspondent lenders
Carry underwriting authority and associated risk. Our audit includes rigorous testing of underwriting decisions and loan file documentation.
Lenders applying for or maintaining FHA, Ginnie Mae, or GSE approval
FHA, Ginnie Mae, Fannie Mae, and Freddie Mac require audited financials. Our audits include specific procedures to meet their compliance requirements.
Companies with multi-state lending operations
We understand the distinct regulatory requirements for each lending state and ensure coordinated compliance across your entire operation.
Our Process
Consultation & Scoping
We assess your lending model (delegated vs. non-delegated correspondent, warehouse lender relationships, investor requirements, multi-state operations) to determine appropriate audit scope.
Planning & Fieldwork
Our team executes comprehensive audit procedures including trust account testing, loan-level sampling, investor reporting verification, and warehouse line reconciliation specific to mortgage lending.
Draft Review
You review the draft audit report and we address questions. We incorporate your feedback on accounting treatments, investor reporting, and compliance matters.
Final Delivery
Audit report delivered with investor communication support, regulatory filing assistance, and management letter highlighting operational improvements.
Lender Audit FAQ
Frequently Asked Questions
What's the difference between delegated and non-delegated correspondent audits?
Delegated correspondent lenders have underwriting authority and shoulder the associated risk—our audit includes more rigorous testing of underwriting decisions, loan file documentation, and compliance with investor guidelines. Non-delegated lenders operate under investor underwriting but still face warehouse line covenants and state regulatory requirements. Both require full GAAS audits, but the focus areas differ. We tailor our approach to your specific model.
What trust account procedures do you perform?
We verify that escrow/trust accounts are properly segregated from operating accounts, reconcile to bank statements, test borrower deposits and disbursements, and confirm compliance with state and investor requirements for trust account maintenance. This is critical for regulatory compliance and is a primary focus of our lender audits.
How do you handle secondary market reporting verification?
We test loan-level data submitted to investors, verify that pricing and terms match signed notes, reconcile investor payments to loan files, and confirm that loan buyback obligations are properly documented. Secondary market reporting accuracy directly impacts your relationships with GSEs and other investors.
Can you support multi-state lending operations?
Yes. We handle audits for lenders operating in multiple states. We understand the distinct regulatory and tax requirements for each jurisdiction and ensure your multi-state operations meet all applicable standards.
Expand Your Engagement With Additional Services
Beyond audits, we support lenders with comprehensive accounting and tax services:
- Audit + Tax Bundle
Combine your lending audit with tax return preparation for consistency and efficiency.
- Bookkeeping & CFO Advisory
Monthly bookkeeping and fractional CFO services to keep lending operations compliant and profitable.
- Tax Services
Business and individual tax planning for lender entities and principals.
Ready to Get Started?
Schedule a free consultation to discuss your lending operation's audit needs. We'll assess your structure and requirements to build the right engagement.
Or reach out directly