Early Payment Default (EPD)

Optimal Mortgage Services will review any mortgage loan that becomes delinquent or into a default status during its first year. Early Payment Default (EPD) is one of the strongest indicators of possible mortgage fraud. Our audit includes a review of the loan file and servicing notes.

Repurchase Defense

In the event of a re-purchase request or defaulted loan, Optimal Mortgage Services provides a review of the loan file and servicing notes to assist in defense of a request for repurchase by an investor or mortgage insurance claim denial.


Additional discretionary sampling may be used to confirm that branch offices, loan products, geographical areas, third party originators, internal originators, underwriters and appraisers, as applicable, are periodically reviewed. Additional sampling may also be done in response to any significant changes in the Lender's product line, origination process or results of random post funding audits reveal trends noteworthy of a target review.

Fraud Detection

Optimal Mortgage Services and our auditors are well trained in identifying mortgage fraud. We are actively involved with the Mortgage Bankers Association and serve on various sub-committees to keep abreast of new mortgage fraud trends. Our review is customized to encompass a targeted review of individual loans to larger sampling by origination source. The results of our review will surface whether the source is that of a training need or misrepresentation.

Due Diligence

Optimal Mortgage Services tailors our reviews based on the needs of our client. Our comprehensive portfolio review provides our clients the reasonable care needed before or after entering into a transaction with another party. Our review encompasses an audit of collateral, compliance and risk to identify underlying issues and mitigate risk.

Adverse Action

Optimal Mortgage Services provides a random 10% sampling review of loans in which the application for credit resulted in a withdrawal or denial to ensure that Adverse Action notices were timely sent and that the file supports the final decision. All files are reviewed for compliance with ECOA, RESPA, HMDA and agency guidelines.