Patrick Gluesing, President of StoneHill, discusses challenges in today’s mortgage industry and the automation benefits that visual classification technology can have to deal with the high velocity of change. Use the following link to the Dodd Frank Update to view the full article.
According to Rob Chrisman’s Blog on January 10th, 2020 people wonder, does Fannie Mae require its Seller/Servicers to perform an independent audit of the Post-Closing QC Process?
The answer is Yes! In an August 7, 2019 announcement, FNMA added further guidance to its Lender Post-Closing QC Review requirements (Chapter D1-3-06 of the Selling Guide) by specifically calling for an independent audit of the Lender’s QC processes and procedures.
The lender must have an independent audit process to ensure the following: its post-closing QC process and procedures are followed by the QC staff; assessments and conclusions are recorded and consistently applied; and findings must be accurately recorded and consistent with the defects noted in the lender’s system of record.
Results of the QC audit must be distributed to senior management and must include an affirmative statement that no influence from other business units or bias in the QC conclusions was apparent.
Management must distribute the results to the appropriate areas within the organization and an action plan must be established for remediation or changes to policies or processes, if appropriate.
The lender must provide a copy of the QC audits and the audit of the QC process to Fannie Mae upon request. Requirements related to QC independence must be incorporated into the lender’s QC plan and implemented by January 1, 2020.
Freddie Mac also issued a Quality Control Best Practices Manual which is chockfull of useful information.
As always, Stonehill is here to help. To get started or for more information, contact your Account Manager or Client Services Manager, Donna Rowe, at drowe@stonehillgroup.com.
Join Rob Chrisman’s mailing list at: https://www.robchrisman.com/
Now is a perfect time to re-evaluate your QC Plan to make sure it is up to date and compliant with Agencies and Investors. In 2019 we observed more scrutiny during regularly conducted audits from VA, FHA, and Fannie Mae than ever before.
Fannie Mae issued an updated Quality Control (QC) Self-Assessment on January 8th. This is a redesigned QC Self-Assessment that provides required elements as well as recommended but not required elements. The recommended elements should be viewed as “Best Practices”.
The update contains several important revisions that can assist in the management of risk and ensure compliance with the Fannie Mae Selling Guide, as well as assure that a lender is following established best practices and recommended monitoring of risk associated with the origination of good loans.
Let the Stonehill Group help you review/update or create your Agency approved QC Plan. We understand the agency requirements and can provide valuable insights in the process.
Whether you need a new QC plan starting from scratch or just need us to review and update your current plan, StoneHill can help.
For more information contact your Account Manager or Client Services Manager, Donna Rowe, at drowe@stonehillgroup.com.
© Stone Hill Group 2025
