Mortgage Quality Control: Post-Close QC Audit Scope

What Needs to Be Audited?

Agency:

Fannie Mae

Freddie Mac

FHA

How Much to Audit:

Audit at least 10% of all residential mortgage loans, plus pre-funding & discretionary reviews

Audit at least 10% of mortgage loans

Audit 10% of FHA loans originated, EPDs, 10% of rejected applications

How Often to Audit:

Audit at least monthly

Every mortgage must have chance of being selected for review within 90 days of Note Date

Audit at least monthly

Required Turn Times:

Select loans for review within 30 days of closing, review within 60 days of selection

Report audit results to management within 90 days of selection

Select loans for review within 30 days of closing, review due in 60 from end of month closed

Retention Requirements:

Retain reviews for
at least three years

Retain reviews for
at least three years

Retain reviews for
two years

Field Review Requirements:

Perform field reviews on 10% of loans audited

Perform field reviews on 10% of loans audited

Perform field reviews on 10% of loans audited

Important Things to Remember:

Lenders must notify Fannie Mae if their QC cycle is in arrears more than one 30-day cycle

Lenders must document all credit inquiries up to 120 days

Approved mortgagees must perform reviews of their sponsored TPOs

Where to Find the Requirements:

Fannie Mae Single Family Selling Guide Subpart D1

Freddie Mac Single-Family Seller/Servicer Guide Chapter 48

HUD 4000.1 Section V

Contact us to learn more about mortgage compliance post-close QC audits