Fannie Mae Publishes Updated Quality Control Guide

December 2016, Fannie Mae published a revised edition to “Beyond the Guide” to assist lenders in building their capability for ensuring quality.   Originally published in 2010, the guide provides insight into every area of loan manufacturing.

Keys to effective quality control are presented and summarize a process for creating a culture of quality that includes management, board accountability and process governance.  The quality “life of loan” model is discussed as a risk control framework aimed to improve quality of loans through nine critical control points in the QC life cycle.   The 9 control points are:

  1. Validating Application Data (internal/third party data and fraud tools)
  2. Underwriting and Eligibility
  3. Appraisal and Collateral Assessment
  4. Prefunding Quality Control
  5. Pre-closing Document Review
  6. Post-closing Document Review
  7. Post-closing Quality Control
  8. Reporting
  9. Action Plan to Prevent Future Defects

The 30-page guide may be accessed at: https://www.fanniemae.com/content/tool/beyond-qc-guide.pdf

For information about Residential Mortgage Quality Control Services provided by Bankers Advisory, a CliftonLarsonAllen LLP Division, please contact Principal and COO Marissa Blundell, J.D.

  • 781-402-6415

Anna DeSimone founded Bankers Advisory in 1986 and is a nationally recognized authority in residential mortgage lending. She has received numerous industry awards and has authored more than 40 best practices guides and hundreds of articles.

Comments are closed.