As we’ve written about before, on March 1st Fannie Mae announced two changes to their quality control requirements. Both will be effective September 1st, 2023. These changes move quality checks up in lenders’ origination processes. Why? Because it makes sense to look at high risk loan characteristics and make sure loans in the pipeline are quality checked before they are…
Just announced March 1st, the timeframe for completion and reporting of post close QC reviews to Fannie Mae is being reduced to 90 days from 120 days. As well, Fannie Mae is now requiring lenders complete a minimum number of prefunding reviews monthly. The total number of loans to be reviewed must equal the lesser of 10% of the prior…
Fannie Mae’s Selling Guide Announcement from 3/1/23 communicated a variety of updates. This blog is a two-part series to discuss in more detail two of the areas covered: Valuation Modernization and Lender Quality Control Updates. Also related is our recent blog, Appraisal Modernization is Now! The modernization of anything should include more flexibility and more reliance on tools versus people.…
Valuation modernization is clearly a priority for Fannie Mae who is, “on a journey of continuous improvement to make the home valuation process more efficient and accurate.” Here at Loanlogics we agree! Loanlogics is committed to ensuring efficiency and accuracy through the enhancements we make to our LoanHD® audit platform. We continually update our Appraisal Audit test set to keep…
Cars, trumpets, measurement devices, and now the loan quality control process are a few of the common calibrations we need to perform to ensure high standards in execution. Starting in 4Q 2022 and rolling out more robustly next year, Fannie Mae® announced that the agency will begin calibrations with its customer base to understand the precision and accuracy of a…
I’m back with Part 2 of my recap of the panel discussion “Improving QC Strategies in Today’s Volatile Lending Market” that I participated in during the MBA’s 2022 Risk Management, QA, and Fraud Prevention (RMQA). You can look back through part one here, where I covered four key questions I addressed in the session. At the end of the discussion,…
