Freddie Mac requires the QC program
to peform reverifications of certain critical credit
documentation relied on in underwritign the mortgage.
The reverifications may be written or verbal but verbal
reverifications must be documented in writing. The reverifications
Original documentation verifying employment and income
including verification of employment and income forms,
paystubs, salary vouchers, W-2 forms, tax returns,
financial statements, compensation award letters or
other documentation verifying income.
of funds. Original documentation verifying
sources of funds for down payment,
closing costs and prepaid items may include verificationof
deposit forms, depository account statements, stock
or security account statements, gift funds, signed
settlement statement or other evidence of conveyance
transfer of funds if a sale of assets was involved.
reports. For Loan Prospector mortgages, no
new credit report is required. However, for one out
of every 10 non-Loan Prospector mortgages selected
for QC review, a reviewer must obtain
either a new residential mortgage credit report
or a three-repository merged in-file credit
report. For the remaining non-Loan Prospector mortgages
in the sample, the reviewer must obtain
new in-file credit reports
containing information from one or more of the national
For a mortgage secured by a three- to four-unit primary
residence that is selected for review, Freddie Mac requires
the borrower is occupying at least one unit
as a primary residence.
inspections and no-appraisal MAFs.
Lenders may choose to obatin one field review for every
10 mortgage selected for QC
review, and perform desk reviews for the remaining
nine mortgages, or obtain three field reviews for
every 10 mortgages selected for QC review with no desk
reviews for the other seven mortgages.
If the mortgage was originated using a no-appraisal
MAF, the lender
is only required to determine only that the mortgage
met all of the Freddie Mac eligibility
requirements but need not
order an appraisal or a review appraisal.