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Freddie Mac requires lenders
to operate a quality control program for home mortgages
that
is acceptable to Freddie Mac. It says that a commitment
to quality
begins before an application
is taken and
continues throughout all business functions.
The purpose
of a quality control program is to monitor and evaluate
the
integrity of the origination process and to provide
feedback to the organization about its originations.
This feedback is used to adjust and improve production
processes.
Effective quality control programs
are designed to monitor and evaluate the
specific characteristics of a lender's organization
and reflect the:
- size and structure of the lender's
organization,
- experience and expertise of
the staff,
- geographic areas of the lender's
operation,
- branch structure,
- volume and types of mortgages the
lender originates,
- origination sources used, for example,
from mortgage brokers or
correspondents or via the internet,
- any
significant changes in the product lines, origination
sources or
production process and
- controls the lender has in place
to ensure that internal policies and procedures are
followed.
Some key components of the Freddie
Mac quality control guidelines include specific requirements
covering:
basic
elements of the QC program,
auditing
system and procedures for origination,
document
reverification requirements,
documentation
reviews and
data
integrity reviews.
Click on the links above to learn
more about the Freddie Mac guidelines.
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