Investors and Agencies like Fannie Mae, Freddie Mac, and FHA require a plan for quality control. As a business practice, it helps minimize risk and ensure high quality loans.
FHA guidelines require monthly audits if closing more than 15 loans per month, and quarterly audits if fewer than 15 loans per month. Fannie Mae requires monthly audits, and Freddie Mac does not have a specific time frame but recommends a random selection every 90 days.
To satisfy Fannie Mae, Freddie Mac, and FHA quality control guidelines, within 90 days of closing you will need to audit 100% of EPD loan files and audit 10% of your closed (including cancelled) loan files. FHA has some additional requirements for overall quality control.
Beginning July 2013, Fannie Mae’s SEL-2013-05 document to all lenders states: “Clarification that prefunding QC should operate independently of lender’s production, but at a minimum must be conducted by someone independent of the decision on the loan being reviewed."
Files should include the following: Appraisal, credit/processing package (include all documents), underwriting package, and closing package (include all documents.) A more detailed list will be provided during your training.
First, a list of all closed loans will be requested. From this data, we’ll pull the selections to be reviewed. Once you’ve been supplied a client login and have been trained, you’ll enter your password to access our secure server. From there, it’s a fast and easy process of uploading the specified files for review. We make sure your files are in line with agency guidelines, and then the files are thoroughly audited. Compliance issues are cross-checked, and a report is generated with detailed information on our findings.