Fannie Mae’s updated mortgage quality control (QC) requirements under Selling Guide Part D took effect on September 2, 2025. The comprehensive changes represent the most substantial updates to agency compliance standards in years and are fundamentally altering how lenders must approach QC. In Fannie Mae’s own words, they “revamp requirements for lender QC processes.”
If you haven’t updated your processes yet, you’re already behind. Every review conducted after September 2nd must meet the new, expanded requirements for both prefunding and post-closing processes. Here’s what you need to know to ensure your compliance strategy is on track, so you can maintain operational excellence, avoid unnecessary fines, and protect your organization from potential repurchase risk.
Key Updates Every Lender Must Implement
The new Fannie Mae QC requirements introduce three major areas of transformation:
- Enhanced reporting standards
- Expanded review scope
- Strategic risk management
All reviews conducted and reports published must now reflect the new requirements, and your QC plan, processes, and procedures must be updated to document them. The requirements significantly broaden the scope of both prefunding and post-closing reviews while emphasizing a more sophisticated approach to risk identification and mitigation. Let’s break down the key changes.
Third-Party Origination QC Review Modernization
One of the most impactful changes affects how lenders manage third-party origination quality control. Previously, lenders were required to review a minimum of one loan from each third-party originator every 12 months. That requirement has been replaced with a more strategic sampling methodology.
Under the new Fannie Mae compliance framework, lenders must implement monthly post-closing random sampling with full file reviews for third-party originations. The agency requires the sampling to be supplemented by discretionary targeted sampling focused on elevated risks identified through the random sampling process. To provide flexibility while simultaneously ensuring rigorous oversight, the agency is allowing discretionary samples to be implemented in either the prefunding/prepurchase phase or the post-closing phase.
Expanded Prefunding Review Criteria
Greater flexibility is a result of the enhanced prefunding QC sampling options as well. Now, you can either use 10% of the current month’s projected volume (total loans to be closed or acquired) or continue to use the lesser of 10% of the previous month’s total loans closed or acquired or 750 loans.
Additionally, prefunding occupancy assessment review requirements have expanded beyond principal residences. They now include second homes and investment properties, meaning lenders must implement more comprehensive occupancy verification processes across all property types.
Enhanced Post-Closing Review Requirements
Post-closing review criteria have undergone substantial updates too – particularly regarding mortgage insurance (MI) coverage requirements. The focus has shifted from simply obtaining MI documentation to completing comprehensive data validation. Lenders must now conduct a deeper analysis of coverage adequacy and accuracy.
Reverification criteria have also been updated. Now, lenders must conduct further investigation when occupancy red flags are identified – regardless of property type. Both reverification results and unsuccessful attempts must be tracked, trended, and included in monthly summary reports to management, creating a complete audit trail.
How to Ensure Compliance with the New Fannie Mae QC Requirements
Successfully navigating these updated requirements and ensuring Fannie Mae compliance requires a multi-faceted approach that addresses technology, partnerships, and internal processes.
Leverage Advanced QC Reporting Software
The best QC reporting software systems offer reporting formats that encompass all required data points and severity ratings mandated by the new Fannie Mae QC requirements. Opt for software that makes it easy to track, trend, and report on all verification activities and outcomes, so you can seamlessly meet the new reverification standards.
Partner with a Knowledgeable Mortgage QC Services Provider
Working with a mortgage QC services partner that’s committed to staying current with government-sponsored enterprise (GSE) and investor guidelines is essential. Your partner should continuously update review templates and checklists to reflect expanded criteria and adjust sampling logic to meet evolving guidelines. Partnering with a provider like this ensures that mortgage compliance updates don’t go unnoticed and that you’re not navigating complex requirement updates alone.
Update Internal Documentation
Review and update your internal QC plan to reflect the new Fannie Mae requirements, but keep in mind that this isn’t a one-time activity. Your documentation should continuously evolve with regulatory changes and industry best practices.
Maintain Open Communication
Keeping an open line of communication with your mortgage QC partner is critical to ensuring mortgage compliance. Don’t hesitate to ask them for assistance with updating your current processes or for further clarification of the changes. The complexity of the requirements makes collaboration essential for successful implementation.
Navigate Fannie Mae Compliance with Expert QC Support
While the updated requirements may be causing some stress for your organization, they also represent an opportunity to strengthen your QC processes and enhance loan quality. Staying ahead of regulatory changes positions lenders for sustainable growth while maintaining strong relationships with the agencies.
MetaSource helps mortgage lenders across the country do just that. We can help you ensure your QC processes meet agency and investor requirements through our trusted outsourced post-close QC and prefund QC services. When you partner with us, you also gain access to our advanced QC reporting software, which we continuously update to better position our clients for success.
If interested in learning more about how we can help you navigate QC requirements with confidence and precision, contact us today. You can also download our Mortgage QC Checklist for more expert advice on meeting industry standards.
Your Resource for Developing a Successful Mortgage QC Process
Download our checklist to learn how you can establish a quality control (QC) process that will prevent errors, hefty fines, and strained relationships with the agencies.
