Fannie Mae has updated their field review policy “to better align QC processes with available collateral data and industry-leading collateral tools. The combination of standardized data and Collateral Underwriter® allows for a more robust QC process, which reduces or eliminates the need for a field review in most circumstances.” Therefore, the new policy replaces the current appraisal QC requirements with a new collateral risk assessment (CRA) for all loans selected for a QC review in the random sample. To comply with Fannie Mae’s requirements, a CRA will need to be completed on 100% of Fannie Mae loans selected for QC that do not have a Property Inspection Waiver.
Freddie Mac mortgages selected for post-closing quality control reviews, the Seller must ensure the appraisal, or if applicable, other property valuation, meets Freddie Mac requirements. The process is expected to utilize desk reviews, field reviews, automated valuation models, multiple listing service data, public records data, online tools and/or other appropriate methods to validate and ensure the quality of origination information. For Mortgages originated with appraisals, the Seller must obtain a desk review of the appraisal report to ensure that it accurately reflects the market value, condition, and marketability of the subject property and that the Mortgaged Premises is adequate collateral for the Mortgage. To comply with Freddie Mac’s requirements, a standard desk review will need to be completed on all Freddie Mac loans selected for QC.
FHA, VA, & USDA
There have been no changes to their field review guidelines. Field reviews on these loan types are still required per their guidelines.
If you are currently a Stonehill QC Client, a communication regarding the above changes was sent out on July 15, 2021. If you did not receive this communication or have any questions, please feel free to reach out to Donna Rowe, your Client Services Manager, at firstname.lastname@example.org.