Quality control in mortgage lending
means a system of rules and procedures with the goal
of assuring that loans and borrowers meet specific credit
requirements and that mortgage transactions are free
from fraud or misrepresentation. Lenders and mortgage
brokers must meet various quality control requirements
depending on the kind of loan they are originating or
servicing. The following links will guide you to information
on quality control requirements for FHA, VA, Fannie Mae
and Freddie Mac loans.
FHA-insured
mortgages. The Department of Housing and
Urban Development (HUD) has established extensive quality
control requirements that mortgage brokers, lenders
and servicers must follow. Check
this link for
a description of those guidelines.
VA-guaranteed
mortgages. The Department
of Veterans Affairs, which guarantees home mortgages
for veterans, has its own guidelines for quality control
of origination and servicing. Check
here for more on
these standards.
Fannie
Mae mortgages. Though not a government agency,
Fannie Mae, the giant government-sponsored, single-family
mortgage investor has quality control standards for
loans it buys or securitizes. Check
here.
Freddie
Mac mortgages. Freddie
Mac, the other giant government-sponsored enterprise
that buys single-family mortgages loans also has a quality
control guidelines. Check
here.