![]() The method of monthly reporting of review findings Reporting: written procedures for reporting the results of the QC file reviews, including Originated using all underwriting methods (manual and each automated underwriting system) Originated under all mortgage products (for example, fixed-rate, ARM, and special or niche programs) Originated through each applicable production channel (for example, retail, correspondent, and third-party originators) Sample selection process: a process for identifying a representative sample of loans for QC file reviews using both random and discretionary selection processes that includes loans QC file review process: a process for performing prefunding and post-closing QC file reviews, including at a minimum, a process forĬonfirming compliance with Fannie Mae’s Selling Guide, all related contractual terms and agreements, and that the loans are in all respects eligible for delivery to Fannie MaeĬonfirming compliance with applicable federal, state, and local laws and regulations Procedures: detailed operating and reporting procedures for all employees involved in or affected by the QC process Methods used to ensure the QC program is an independent and unbiased function including program governance (targets, sampling) and transaction execution Specific risks to be measured, monitored, and managed Quality standards and measures, including: Lenders that fail to maintain an effective QC program will be in breach of their contractual obligations with Fannie Mae. The QC plan must guard against fraud, negligence, errors, and omissions by officers, employees, contractors (whether or not involved in the origination of the mortgage loans), brokers, borrowers, marketing partners, and others involved in the mortgage process. The loans comply with the Selling Guide, all related contractual terms and agreements, and are in all respects eligible for delivery to Fannie Mae and The loans comply with applicable federal, state, and local laws and regulations ![]() The lender’s QC program must include a documented QC plan that outlines requirements for validating that loans are originated in accordance with its established policies and procedures and Fannie Mae requires the lender to develop and implement a QC program that provides a structure for identifying the deficiencies in the loan manufacturing process and for implementing plans to quickly remediate those deficiencies and underlying issues. The QC program defines the lender’s standards for loan quality, establishes processes designed to achieve those standards, and mitigates risks associated with the lender’s origination processes. An effective QC program is a key component of the lender’s overall control environment.
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