Fannie Mae Announces Lender Quality Control Requirements, Other Selling Guide Updates

On July 30, Fannie Mae announced in Selling Guide Announcement SEL-2013-05 significant revisions to its Lender Quality Control Requirements, including specific requirements related to lender’s ongoing quality control (QC) assessment of loan origination activities and associated procedures, with the aim of reducing the risk of repurchases. The announcement provides a table of numerous revised requirements and highlights several new requirements, including that lenders (i) ensure that the QC vendor complies with the lender’s QC plan and Fannie Mae’s requirements, (ii) review at least 10% of the loans reviewed by vendors, (iii) only use Fannie Mae’s appraisal field review forms, and (iv) provide to Fannie Mae upon request a copy of QC audits and audits of the QC process. The announcement also includes numerous other Selling Guide updates related to, among other things (i) compensatory fees, (ii) field reviews, and (iii) authorizations to transfer funds.

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