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Specific risks to be measured, monitored, and managed Quality standards and measures, including: Lenders that fail to maintain an effective QC program will be in breach of their contractual obligations with Fannie Mae.
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The QC plan must guard against fraud, negligence, errors, and omissions by officers, employees, contractors (whether or not involved in the origination of the mortgage loans), brokers, borrowers, marketing partners, and others involved in the mortgage process. The loans comply with the Selling Guide, all related contractual terms and agreements, and are in all respects eligible for delivery to Fannie Mae and The loans comply with applicable federal, state, and local laws and regulations The lender’s QC program must include a documented QC plan that outlines requirements for validating that loans are originated in accordance with its established policies and procedures and Fannie Mae requires the lender to develop and implement a QC program that provides a structure for identifying the deficiencies in the loan manufacturing process and for implementing plans to quickly remediate those deficiencies and underlying issues.
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The QC program defines the lender’s standards for loan quality, establishes processes designed to achieve those standards, and mitigates risks associated with the lender’s origination processes. An effective QC program is a key component of the lender’s overall control environment.