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 firstname.lastname@example.org.
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