D2-1-02, Fannie Mae QC File Request and Submission Requirements (03/06/2024)

Lenders are notified which loans Fannie Mae has selected for QC review via an email sent by Fannie Mae’s Loan Quality Connect. Therefore, lenders are required to register for Loan Quality Connect to obtain access to it.

Lenders must maintain a complete loan file, including all documents used to support the underwriting decision. Upon Fannie Mae’s request, lenders must provide electronic copies of the complete loan file, as described in the request.

When a third-party asset verification report is provided to DU for an assessment of rent payment history or a cash flow assessment, an asset verification report covering the minimum period of time described in  A2-4.1-01, Establishing Loan FilesA2-4.1-01, Establishing Loan Files, is required to be maintained in the loan file and provided upon request.

When income or employment are validated by the DU validation service using an asset verification report, the asset report covering the period of time that is required to be retained in the loan file (that is, 30- or 60- days) must be provided upon request. The lender will be required to provide the full asset verification report containing the entirety of the data provided to DU only if requested by Fannie Mae.

Loan files or documents can be uploaded using the drag-and-drop feature or by uploading to the corresponding task in Loan Quality Connect. 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:

• Bulk Upload of Loan Files or Documents

• E-1-02, List of ContactsE-1-02, List of Contacts, for the Digital Data Control Team - LQC; and

• Loan Quality Connect.

Loan files must include clear, complete “copies” of any required documents. Lenders should remove all duplicate documents before sending in the file. The requested files must include the applicable documentation listed in the Post-Closing Loan File Document Checklist (Form 1032). For information concerning the required contents of a loan file, see A2-4.1-02, Ownership and Retention of Loan Files and RecordsA2-4.1-02, Ownership and Retention of Loan Files and Records. (Completion and submission of Form 1032 is optional.) Lenders must follow the electronic submission naming protocol to associate the Fannie Mae loan number with the electronic file.

Lenders that are unable to submit loan files in the supported format 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, servicing, or data validation review within 30 days after Fannie Mae notifies the lender that it has selected a 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 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.