Fannie Mae Quality Control Checklist

This task involves gathering all necessary loan information, such as the loan amount, interest rate, and loan term. The information collected in this task will be used throughout the entire loan process and is crucial for accurately assessing the borrower's eligibility and determining the terms of the loan. Make sure to verify that all the required documents and forms are included in the loan file. If any information is missing, contact the borrower or loan officer to obtain the necessary documents.

This task involves creating a comprehensive profile of the borrower. Gather all relevant personal information, employment history, income details, assets, and liabilities. Use this information to assess the borrower's financial situation and determine their ability to repay the loan. Ensure that all the information provided by the borrower is accurate and complete. If anything is missing or requires clarification, reach out to the borrower for further details. The borrower profile is essential for making informed lending decisions.

Confirm the borrower's current employment details, including their job title, employer name, and length of employment. This information is crucial for assessing the borrower's stability of income and ability to repay the loan. Contact the borrower's employer to verify the provided information and obtain any necessary employment verification documents. If any discrepancies or concerns arise during the verification process, consult with the loan officer to determine the appropriate course of action.

Validate the borrower's income and net worth by reviewing their pay stubs, tax returns, bank statements, and other supporting financial documents. Calculate the borrower's total income, including salary, bonuses, commissions, and other sources of income. Assess the borrower's net worth by considering their assets and liabilities. Ensure that the borrower's income is sufficient to support the loan repayment and that their net worth meets the required criteria. If any inconsistencies or issues arise during the review process, consult with the loan officer for further guidance.

Obtain the borrower's credit report and analyze their credit score. Assess the borrower's credit history, including their payment history, debt-to-income ratio, and any previous delinquencies or bankruptcies. Verify the accuracy of the credit report and identify any potential red flags or inconsistencies. If the borrower's credit score does not meet the required criteria, consult with the loan officer to explore alternative options or determine the appropriate course of action.

Calculate the loan-to-value (LTV) ratio by dividing the loan amount by the appraised value of the property. Verify that the LTV ratio falls within the acceptable limits set by Fannie Mae's underwriting guidelines. If the LTV ratio exceeds the threshold, consult with the loan officer to determine the appropriate actions to bring it within the acceptable range. The LTV ratio is a critical factor in assessing the risk associated with the loan and determining the required loan terms.

Review the loan application, borrower profile, and supporting documentation to ensure compliance with Fannie Mae's underwriting guidelines. Check for any inconsistencies, missing information, or deviations from the guidelines. If any issues are identified, consult with the loan officer or the underwriting department for further guidance. Compliance with Fannie Mae's underwriting guidelines is essential for mitigating risk and ensuring the loan's eligibility for sale to Fannie Mae.

Send the initial disclosure documents to the borrowers for review and signing. These documents provide important information about the loan terms, costs, and potential risks. Ensure that the borrowers receive the documents in a timely manner and have sufficient time to review them. Confirm that the borrowers understand the contents of the documents and address any questions or concerns they may have. Keep a record of the delivery and acknowledgment of the disclosure documents for documentation purposes.

Arrange for a professional property appraisal to assess the property's market value accurately. Ensure that the appraiser is licensed and follows Fannie Mae's appraisal guidelines. Review the appraisal report to confirm that the property's value is sufficient to support the loan amount. If there are any concerns or discrepancies in the appraisal report, consult with the loan officer or request a reappraisal if necessary. The property appraisal is crucial for determining the loan amount and assessing the property's suitability as collateral.

Assess the borrower's ability to repay the loan by analyzing their income, expenses, debt-to-income ratio, and other relevant financial factors. Determine whether the borrower's income is stable, sufficient, and likely to continue. Consider their existing financial obligations and evaluate how the loan payments would impact their overall financial situation. If there are concerns about the borrower's ability to repay the loan, consult with the loan officer or explore alternative options.

Verify compliance with all applicable state and federal laws and regulations regarding lending practices. Ensure that the loan structure, documentation, and processes align with the legal requirements. Stay up to date with any changes or updates to lending laws and regulations. Consult with legal experts or compliance officers if any questions or concerns arise. Adherence to state and federal laws is essential for maintaining the integrity of the lending process and avoiding legal issues.

Review the loan file, borrower profile, and supporting documents to identify any errors, discrepancies, or missing information. Verify that all required forms and documents are complete, accurate, and consistent. Cross-check the loan data with the borrower's profile to ensure accuracy. If any errors or discrepancies are found, correct them promptly and notify the loan officer or the underwriting department. Thoroughly reviewing the loan file helps minimize processing errors and ensures the loan's compliance with Fannie Mae's requirements.

Prepare the final closing documents, including the promissory note, deed of trust, and other required legal forms. Ensure that the documents are accurate, properly executed, and comply with all legal and regulatory requirements. Coordinate with the borrower, title company, and other relevant parties to schedule the loan closing. Provide the borrowers with clear instructions on what to bring to the closing and what to expect. The preparation of accurate and complete closing documents is essential for a smooth and legally sound loan closing process.

Once all loan conditions and requirements are met, issue a Clear to Close (CTC) notice to the borrower. The CTC notice indicates that the loan is approved for closing and provides instructions for the borrower regarding the next steps. Ensure that the CTC notice clearly outlines the required funds, closing date, and any additional documents or information needed from the borrower. Verify that the borrower acknowledges and understands the CTC notice before proceeding with the closing process.

Collaborate with the borrower, title company, real estate agents, and other parties involved to determine the most suitable date and time for the loan closing. Coordinate all necessary arrangements, such as scheduling the closing location and ensuring the presence of all required parties. Communicate the finalized closing schedule to everyone involved and provide any additional instructions or information needed. A well-coordinated closing schedule helps ensure a smooth and efficient loan closing process.

Verify all loan details, including the loan amount, interest rate, loan terms, and borrower information, for accuracy and consistency. Cross-reference the loan documents, borrower profile, and any previous documentation to ensure that all information aligns. If any discrepancies are identified, investigate and rectify them before proceeding with the loan closing. Accurate verification of loan details is crucial for minimizing errors and ensuring the loan's compliance with Fannie Mae's requirements.

Conduct post-closing auditing and analysis to ensure that all documents, funds, and information are accurately recorded and comply with Fannie Mae's guidelines and regulatory requirements. Review the closing documents, disbursement records, and financial transactions associated with the loan closing. Identify any potential discrepancies, errors, or issues and take appropriate corrective actions. Post-closing auditing and analysis are crucial for maintaining the integrity of the loan process and facilitating Fannie Mae's loan acquisition.

Compile and submit all required documentation and reports to Fannie Mae for loan delivery and compliance purposes. Ensure that all documents are complete, accurate, and meet Fannie Mae's specific requirements. Follow the established procedures and timelines for submitting the documentation. Maintain clear records of all submissions for future reference and audit purposes. Proper submission of documentation is essential for ensuring the loan's compliance with Fannie Mae's guidelines and facilitating the loan acquisition process.