As the mortgage QC industry evolves, it's crucial for mortgage professionals to stay up-to-date with the latest changes and requirements. The upcoming Fannie Mae compliance changes are effective September 1st, and focus primarily on the prefunding quality control (QC) process.
ADFITECH prides itself on being “In The Know” and keeping our clients up to date by shedding light on what's new and what you need to be aware of. Discover what's new in prefunding QC, and get ready to optimize your mortgage operations for enhanced loan quality, risk mitigation, and compliance.
Fannie Mae Changes Effective September 1st:
Starting September 1st, Fannie Mae will implement several updates to the prefunding QC process. These changes aim to enhance loan quality and reduce risk for lenders. The key modifications will be:
1. Revised Loan Review Process: Fannie Mae will introduce a more comprehensive loan review process, focusing on borrower eligibility, creditworthiness, and underwriting accuracy. Lenders should expect increased scrutiny during prefunding QC to ensure compliance with Fannie Mae's guidelines.
2. Expanded Income Verification Requirements: To further mitigate risk, Fannie Mae will expand income verification requirements for borrowers. Lenders will need to gather more robust and reliable documentation to validate a borrower's income and ensure it aligns with the loan application.
3. Updated Quality Control Reporting: Fannie Mae is revamping its QC reporting requirements to promote more transparent and consistent reporting across the industry. Lenders will be expected to provide more detailed information and documentation during the prefunding QC process.
Other Considerations for Prefunding QC Approaching the September 1st Deadline:
1. Communication with Stakeholders: With the impending changes, it is crucial for lenders to proactively communicate with stakeholders, including loan officers, underwriters, and other relevant parties. Educate your team about the upcoming updates, discuss potential impacts, and ensure everyone is prepared for the changes to the prefunding QC process.
2. Systems and Technology: Assess your existing systems and technology infrastructure to determine if any upgrades or adjustments are necessary to accommodate the new prefunding QC process. Review your loan origination software, document management systems, and other relevant tools to ensure seamless compliance.
3. Collaborating with QC Vendors: If you work with third-party QC vendors, engage in discussions with them well in advance of the September 1st deadline. Understand how they plan to adapt to the new Fannie Mae compliance standards and discuss any necessary adjustments to their services to ensure compliance.
By being proactive and well-prepared, you can position your organization for continued success in the dynamic world of mortgage lending. ADFITECH understands the challenges posed by the upcoming changes.
Partner with us to leverage our expertise, cutting-edge technology, and comprehensive QC processes, ensuring loan quality, regulatory compliance, and operational excellence. Contact our dedicated support team for any assistance you require.
Discover how our services can optimize your QC process or get in touch with our team or your customer service representative to discuss our Prefunding Quality Control or Post-Closing QC services.
At ADFITECH, we track industry changes daily and are always striving to support your success by sharing our knowledge of the latest updates, trends, and opportunities. For over 40 years, we have combined innovative technology with personal attention to every loan to meet each of our clients’ unique needs.
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