Freddie Mac requires the QC program to review mortgage loan files to evaluate the validity and quality of the information used in the original underwriting decision and to protect the lender against fraud and misrepresentation. The review covers reverification of documents, data integrity and analysis of the loan file to determine compliance with eligibility and underwriting requirements.

 

Reverifications. Reverifications may be written or verbal but verbal reverifications must be documented in writing. The reverifications must include employment and income, sources of funds, credit reports, owner-occupancy and appraisals, inspections and no-appraisal MAFs. Check here for more on Freddie Mac's reverification requirements.

 

Data integrity review. The QC review procedures must include
a review of the completeness and accuracy of the information obtained in the mortgage origination process. The data integrity review must include a process for checking data fields entered in Loan Prospector and ensuring that all data submitted is valid. The QC reviewer must perform a data integrity review on all mortgages sampled to ensure that the loan data is accurate and consistent. Check here for more on Freddie Mac's data integrity reviews.

 

Documentation review. For all mortgages included in the QC sample, the quality control procedures must determine:

  • the existence and accuracy of documentation required by applicable law
  • compliance with the eligibility and underwriting requirements and guidelines of the lender, the mortgage insurer and Freddie Mac, as applicable,
  • compliance with the lender's warranties regarding Freddie Mac's exclusionary list and
  • the settlement statement and related documentation to determine that all conditions of closing have been satisfied.

Check here for more on Freddie Mac's documentation reviews.