Lender Letter LL-2020-03, Impact of COVID-19 on Originations requires a special discretionary selection if we utilize the reverification flexibilities. Is there a required sample size?
This sample should take into consideration the lender’s assessment of the risks, business source and volume. Ensure the sample size selected is meaningful relative to the risk evaluation. As a reminder, reverifications are a critical element of the post close QC process in assessing the factualness of information that was replied upon in making the lending decision.
For more information, see Lender Letter LL-2020-03, Impact of COVID-19 on Originations