Lenders are notified which mortgage loans Fannie Mae has selected for QC review via an email sent by Fannie Mae’s Quality Assurance System (QAS). Therefore, lenders are required to register for QAS to obtain access to it.
Lenders must maintain a complete mortgage loan file, including all documents used to support the underwriting decision. Upon Fannie Mae’s request, lenders must provide electronic copies of the complete mortgage loan file, as described in the request.
The Loan Quality Center (LQC) supports two methods of electronic loan file delivery – the LQC File Transfer (LQC FT) Portal and a Lender Direct Business-to-Business (B2B) process (generally for lenders with higher volumes of loan file selections). Lenders should contact the Loan Quality Center for assistance in determining which electronic option best aligns with their business needs and operations, and to initiate the on-boarding process, if they have not already done so. See the following resources for additional information:
E-1-03, List of Contacts, for the Loan Quality Center; and
Quality Assurance System, for information about QAS.
Note that lenders should not upload loan files to QAS, but must use either the LQC FT Portal or the Lender Direct B2B process to ensure receipt. All loan files submitted electronically will be viewable to lenders in QAS upon confirmation.
Loan files sent electronically must include clear, complete “copies” of
any required paper documents. Lenders should remove all duplicate
documents before sending in the file. The requested files must include
the applicable documentation listed in the
Lenders that are unable to submit loan files in one of the supported formats should contact the Loan Quality Center to determine if an alternate format may be used as an interim submission method. To avoid non-compliant loan files, lenders should not submit loan files using an alternate method without approval from the Loan Quality Center to ensure that Fannie Mae can access and review the loan file documentation and that the lender receives credit for the loan file submission. Loan files submitted using an alternate method (for example, paper files) without prior approval from the Loan Quality Center may not be accepted.
Lenders must send the requested documentation for an underwriting or servicing review within 30 days after Fannie Mae notifies the lender that it has selected a mortgage loan for review. Fannie Mae, in its sole discretion, may request the documentation in a shorter or longer period of time based upon circumstances at the time.
Fannie Mae will make every effort to work with lenders when extenuating circumstances prevent them from delivering documentation in a timely manner. However, if a lender delays in providing the requested information, Fannie Mae, in its sole discretion, may require indemnification or repurchase (depending on the circumstances of the individual case) of these mortgage loans. When a lender has a pattern of extensive delays or unresponsiveness, Fannie Mae may consider this a breach of contract and consider other actions against the lender, up to and including termination.
The table below provides references to the Announcements that have been issued that are related to this topic.