Selling Guide

The Selling Guide is organized into parts that reflect how lenders generally categorize various aspects of their business relationship with Fannie Mae. To begin browsing, select from any of the sections below. You may also download the entire Selling Guide in PDF format.

View All Selling Policy Updates

Download PDF

Hint: Ask in a form of a question.

D1-3-03, Lender Post-Closing Quality Control Review of Data Integrity (04/03/2019)

Introduction

This topic contains information on the lender's post-closing QC review of data integrity, including:

 

Verification of Data Integrity

The lender must review the final terms of the loan to ensure they align with data on which the underwriting was based. When a lender’s loan file review identifies discrepancies between the data that was used in the underwriting decision and the data verified through the QC process, the lender must reassess the underwriting decision based on the newly verified information to determine whether the loan remains eligible as delivered to Fannie Mae.

For mortgages processed through DU, the lender must ensure that all data submitted to DU is true, correct, and complete. The lender must verify that the loan file contains documentation that supports all data submitted to DU to process the mortgage loan. The lender must ensure that all of the borrower’s liabilities were included in DU’s analysis.

When there are inconsistencies between the data and/or information submitted to DU (or used for manual underwriting) and the source documents, the lender must

Step Description
1

Determine whether discrepancies are within the tolerances permitted by this Guide (see B3-2-10, Accuracy of DU Data, DU Tolerances, and Errors in the Credit Report, and B3-6-02, Debt-to-Income Ratios).

2

For loans underwritten through DU, if discrepancies are outside the DU allowed tolerances, resubmit the mortgage loan to DU using the correct data. If the lender is unable to resubmit the loan to DU, the lender must manually perform a comprehensive risk assessment using the documentation required by DU, to determine if the loan meets the Selling Guide requirements for manually underwritten loans. The DU limited waiver of representations and warranties is invalidated when loans that exceed DU tolerances are not resubmitted to DU. For additional information, see B3-2-10, Accuracy of DU Data, DU Tolerances, and Errors in the Credit Report.

 

Note: DU-only products are not eligible for a manual comprehensive risk assessment.

 

For manually underwritten loans, if discrepancies are outside of the allowed tolerances, the lender must manually perform a comprehensive risk assessment to determine if the loan meets Selling Guide requirements. For additional information, see B3-6-02, Debt-to-Income Ratios.

3

Make a determination as to whether or not the loan, with the correct data taken into consideration, remains eligible as delivered to Fannie Mae, either through the receipt of a DU recommendation of Approve/Eligible, or through manually underwriting the loan, if appropriate.

4

If the lender determines that the mortgage loan was eligible as delivered, the lender must document the underwriting file to reflect its decision.

5

If the lender determines that the mortgage loan was not eligible as delivered, the lender must advise Fannie Mae of these findings using the self-report functionality in Loan Quality Connect. For additional information, see D1-3-06, Lender Post-Closing Quality Control Reporting, Record Retention, and Audit.

 

Review of Potential Red Flag and Alert Messages

The lender’s loan file review process must include a review of any “potential red flag” messages appearing in the DU Underwriting Findings report or alerts created by sources other than DU, such as those associated with credit reports or Social Security verification systems, to ensure that all messages have been addressed and documented, and that the mortgage loan is eligible as delivered to Fannie Mae.

 

Review of Social Security Number

As part of the lender’s loan file review process, the lender must ensure that the borrower(s)’ Social Security number on loans selected for review is consistent in all file documentation and any requirements for validation of the Social Security number were satisfied prior to closing. For additional information, see B2-2-01, General Borrower Eligibility Requirements.

Related Articles

D1-3-01, Lender Post-Closing Quality Control Review Process (08/07/2019)

IntroductionThis topic contains information on the lender’s post-closing QC mortgage review process and selecting mortgage loans for the post-closing QC...

Read more

D1-3-02, Lender Post-Closing Quality Control Review of Approval Conditions, Underwriting Decisions, and Documentation (08/07/2019)

IntroductionThis topic contains information on the lender’s post-closing QC review of underwriting documents, including: Overview  Review of...

Read more

D1-3-04, Lender Post-Closing Quality Control Review of Appraisers and Appraisals (04/03/2019)

IntroductionThis topic contains information on the lender's post-closing QC review of appraisers and appraisals, including: Overview  Oversight of...

Read more

D1-3-05, Lender Post-Closing Quality Control Review of Closing Documents (06/30/2015)

IntroductionThis topic contains information on the lender’s post-closing QC review of the transaction and closing documents. Review of Transaction and...

Read more

D1-3-06, Lender Post-Closing Quality Control Reporting, Record Retention, and Audit (08/07/2019)

IntroductionThis topic contains information about the post-closing QC process pertaining to the following: Lender’s Internal QC Reporting  Lender’s...

Read more

Have guide questions? Get answers to all of your policy questions, straight from the source.

Get Started
X
Having Issues with Seeing this Page Correctly?

Use Firefox or Chrome   How to do a hard refresh in Internet Explorer
We recommend that you use the latest version of FireFox or Chrome.

Download Firefox
Download Chrome
  A hard refresh will clear the browsers cache for a specific page and force the most recent version of a page.
    Hold the Ctrl key and press the F5 key.
     

Email Us
If you still have Technical Support questions, feel free to emailAsk_Poli@fanniemae.com.