Fannie Mae requires lenders to maintain adequate internal audit and management control systems to assure that their mortgages are originated, sold and serviced in accordance with sound mortgage banking and accounting principles and to guard against dishonest, fraudulent or negligent acts and errors and omissions by officers, employees and other authorized persons.

The system must assure that mortgages conform to the lender's policies, are of a quality acceptable to institutional and secondary market investors, comply with insurer or guarantor requirements and meet specific Fannie Mae requirements.

Some key components of the Fannie Mae quality control guidelines include specific requirements covering:

quality assurance system to evaluate and monitor the overall quality of mortgage production,

 

origination review issues,

 

origination management system to monitor the performance of third-party originators, and

 

audit and control system to assure that mortgages are serviced in accordance with sound mortgage banking principles.

Click on the links above to learn more about the Fannie Mae guidelines.