Are you Ready to Comply Under Fannie Mae’s SEL-2013-05 and CFPB Third-Party Vendor Management Requirements? Established a new requirement that the lender establish a process to
review at least 10% of the loans reviewed by vendors, including those
with and without findings. This review must be conducted by the lender
and not contracted out.

Quality Mortgage Services is pleased to announce the latest added tool to its proprietary software called MARS (Mortgage Analysis Review Software.) ATQ (Audit the QC) is a tool built in MARS that allows the user to perform an audit of their quality control as required under Fannie Mae Selling Guide Announcement SEL-2013-05 (D1-1-02) dated July 30th in regards to outsourcing of the QC file review process.

The new requirement stipulates that the lender establish a process to review at least 10% of the loans reviewed by vendors, including those with and without findings. This review must be conducted by the lender and not by a third party. Fannie Mae is clear that strict quality control procedures must be in place to validate lender quality control programs.

ATQ also fulfills CFPB third-party vendor management requirements. Lenders need a consistent methodology for testing and validating third-party vendor audits.

Quality Mortgage Services is one of the first quality control providers to meet the Fannie Mae requirement through its analytical software. MARS enables the lender to use the same audit methodology and platform that QMS auditors use on a daily basis to perform their reviews.

The MARS ATQ tool generates a report that the lender can use to compare defect categories and descriptions against the QMS post-closing audit. The lender then has the ability to score each file it tests and QMS receives feedback in the form of a score card as well.

Consider this:

  • Can your current vendor help you meet this requirement?
  • Have you adjusted your quality control plan to accommodate the new requirement?
  • Are you aware that this is required for Post-Closing QC?