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 must include:

 

Employment and income. 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.

 

Sources 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 and transfer of funds if a sale of assets was involved.

 

Credit 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 repositories.

 

Owner-occupancy. For a mortgage secured by a three- to four-unit primary residence that is selected for review, Freddie Mac requires verifying that the borrower is occupying at least one unit as a primary residence.

 

Appraisals, 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.