Reporting Funding Quality StatisticsOnce the necessary funding quality data is available, the investor runs a funding quality report that generates funding quality statistics by seller. Funding quality jobs vary depending on the reporting needs of the investor. The seller funding quality report detailed in this article is intended to fulfill an investor requirement to report a seller's "Average Number of Days to Cure" for reported funding issues.
Creating the Report...
Seller Funding Quality - Average Number of Days to CureThe seller's Average Number of Days to Cure is the average number of days it takes a seller to resolve funding issues.
Step #1The seller's loan delivery funding exceptions are retrieved.
The seller's funding exceptions are the exceptions, a.k.a. funding issues or defects, entered into the investor's funding exception tracking database for loans that the seller has delivered to the investor for purchase. A single loan can have multiple funding exceptions. The loan delivery funding exception record includes an exception date; normally the date the seller is notified of the funding issue, and a cleared date. For the purposes of calculating the Average Number of Days to Cure, the report retrieves all funding exceptions that have a cleared date in the reporting period. For example, if the investor's report date were 2/1/08 the report would retrieve all of the seller's funding exceptions that cleared between 1/1/08 and 1/31/08.
Step #2The seller's Average Number of Days to Cure funding quality statistics are calculated.
In this step the funding quality job compares the exception date to the cleared date and returns a numerical days value for each cleared funding exception. The report sums the day value for each of the funding exceptions and then divides by the number of exceptions. The resulting number is the seller's Average Number of Days to Cure.
A Seller Funding Quality report similar to the Sample Seller Funding Quality Report in the Sample Mortgage Funding Quality Report section of this article can be generated by the investor for distribution to the seller.
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