source:
  type: guide
  id: fnma-svc-a2-4-01
  authority: Fannie Mae Servicing Guide A2-4-01 — Quality Control Reviews
  description: Fannie Mae Servicing Guide A2-4-01 — Quality Control Reviews.
  coverage_tier: operative
obligations:
- id: fnma-svc-a2-4-01-full
  canonical_id: fnma-svc-a2-4-01-full
  section: Fannie Mae Servicing Guide A2-4-01 — Quality Control Reviews
  type: do
  tags:
  - regulator-direct
  - fnma
  - servicing-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Servicing Guide A2-4-01 — Quality Control Reviews
    source_class: fnma-guide
    source_url: https://singlefamily.fanniemae.com/media/document/pdf/servicing-guide
    snapshot_id: cf63a82bbb4adfba
    fetched_at: '2026-05-22T23:53:19Z'
    content_hash: sha256:89df66c43baad07f8a8dd9d224492fff7d15e8839edba02ad0e74c7e50fe5da3
    paragraph_quote: 'A2-4-01, Quality Control Reviews (08/17/2016) Introduction This
      topic contains the following: Overview Notiﬁcation of a Quality Control Review
      Timely Delivery of Individual Mortgage Loan Files Document Submission Requirements
      Fannie Mae’s Quality Control Review Requirements Speciﬁc for Servicing Quality
      Control Reviews Fannie Mae Quality Control Report Appeal of Fannie Mae QC Review
      Decisions Servicing Review File Requirements Underwriting or Servicing Reviews
      of Acquired Properties Published May 13, 2026 93 Overview Fannie Mae may review
      mortgage loans it has purchased or securitized (including those with early payment
      defaults, those that have been foreclosed, as well as any other mortgage loan)
      to ensure that its underwriting, eligibility, and servicing requirements have
      been met. When Fannie Mae’s quality assurance risk assessment identiﬁes a mortgage
      loan as having a higher degree of risk, Fannie Mae may perform a post-foreclosure
      full ﬁle QC review to evaluate the seller/servicer’s initial underwriting of
      the mortgage loan and, if applicable, the actions the seller/servicer took in
      servicing the mortgage loan. In such cases, Fannie Mae will notify the seller/servicer
      about the type of review Fannie Mae will perform and the scope of the review.
      Notiﬁcation of a Quality Control Review The seller/servicer is notiﬁed which
      mortgage loans Fannie Mae has selected for review via written or electronic
      notiﬁcation. Electronic notiﬁcation will be delivered via Loan Quality Connect
      if the seller/servicer has signed up for it. Timely Delivery of Individual Mortgage
      Loan Files The seller/servicer must send the requested documentation for an
      underwriting or servicing review so that Fannie Mae receives the review ﬁle
      within 30 days after Fannie Mae notiﬁes the seller/servicer that it has selected
      a mortgage loan for review. Fannie Mae, in its sole discretion, may request
      the documentation in a shorter or longer period of time based upon circumstances
      at the time. Fannie Mae will make every eﬀort to work with the seller/servicer
      when extenuating circumstances prevent it from delivering documentation in a
      timely manner. However, if a seller/servicer delays in providing the requested
      information, Fannie Mae, in its sole discretion, reserves the right to require
      indemniﬁcation, repurchase (depending on the circumstances of the individual
      case) of these mortgage loans, or other alternatives. When a seller/servicer
      has a pattern of extensive delays or unresponsiveness, Fannie Mae may consider
      this a breach of contract and consider other actions against the seller/servicer,
      up to and including termination. Document Submission Requirements The seller
      and servicer must maintain a complete individual mortgage loan ﬁle and be able
      to produce copies of the complete individual mortgage loan ﬁle upon Fannie Mae’s
      request. The servicing review ﬁle must include supporting documents for all
      requests for expense reimbursement it has submitted or intends to submit to
      Fannie Mae (for example, vendor invoices and third-party invoices from the vendor
      rendering services), in addition to other servicing and liquidation information
      such as property inspection reports, copies of delinquency repayment plans,
      Published May 13, 2026 94 copies of disclosures of ARM loan interest rate and
      payment changes, documents related to insurance loss settlements, and foreclosure
      records, as stated in the Servicing Guide. In all instances, the servicer must
      document its compliance with all Fannie Mae policies and procedures, including,
      but not limited to, timelines that are required by the Servicing Guide. The
      servicer must maintain in the individual mortgage loan ﬁle all documents and
      system records that preserve Fannie Mae’s ownership interest in the individual
      mortgage loan. When Fannie Mae requests both a mortgage loan origination and
      a mortgage loan servicing ﬁle, the seller/servicer must package the material
      as a single PDF ﬁle. The complete mortgage loan ﬁle must include clear copies
      of any required documents. Documents must be provided in the required format,
      via the Loan Quality Connect System to ensure successful delivery. Fannie Mae’s
      Quality Control Review Fannie Mae has QC policies and procedures in place for
      its review of performing and non-performing mortgage loans. Fannie Mae uses
      a statistically valid approach in selecting a random sample of new mortgage
      loan deliveries for review. The random sample is augmented with targeted, discretionary
      sampling, which aids in the measurement of the overall quality of mortgage loan
      deliveries. The QC process evaluates individual mortgage loan ﬁles on a comprehensive
      basis with the primary focus of conﬁrming that mortgage loans meet Fannie Mae’s
      underwriting and eligibility requirements. Fannie Mae will continue to review
      any servicing ﬁles requested with the primary focus of conﬁrming that the mortgage
      loan has been serviced in accordance with the Lender Contract. The QC process
      also provides the seller/servicer with data and feedback about the quality of
      its mortgage loan origination process. The goal is to engage the seller/servicer
      in frequent, meaningful exchanges of information about trends in the quality
      of delivered mortgage loans and to inform the seller/servicer about signiﬁcant
      underwriting deﬁciencies identiﬁed through the QC review process. Together,
      Fannie Mae and its sellers/servicers should share a commitment to improving
      the quality of mortgage loan originations. Fannie Mae requires that the seller/servicer
      implement and enforce strong underwriting processes and, if necessary, will
      work with the seller/servicer to develop action plans to improve origination
      quality. Fannie Mae’s QC policies are administered by its LQC. The selection
      process may change at any time to address concerns. Requirements Speciﬁc for
      Servicing Quality Control Reviews Fannie Mae will utilize delinquent mortgage
      loan status code data and other information collected from the servicer during
      other interactions to identify delays in the default management process. Fannie
      Mae may elect to perform a servicing review to further evaluate the actions
      the servicer took in servicing those mortgage loans. Fannie Mae will notify
      the servicer of the intention to perform a desk review or an on-site review.
      The servicer must submit the requested documentation or make it available for
      an on-site review in the time frame speciﬁed in the notiﬁcation. If the servicer
      fails to do so, Fannie Mae may exercise available remedies, including Published
      May 13, 2026 95 compensatory fees, without ﬁrst reviewing the individual mortgage
      loan ﬁle. The list of documents that must be included in any servicing review
      ﬁle Fannie Mae request are outlined in Servicing Review File Requirements. Fannie
      Mae will communicate any performance deﬁciencies noted to the servicer. Unless
      Fannie Mae elects to immediately terminate the servicer’s right to service the
      mortgage loans, the servicer will be given an opportunity to explain any mitigating
      circumstances or factors that justify the servicing actions it took or did not
      take within the time frame speciﬁed by Fannie Mae in its communication of the
      performance deﬁciencies. Fannie Mae’s evaluation of the actions the servicer
      took in servicing the mortgage loan will focus primarily on determining whether
      the servicer took all of the appropriate steps to cure the delinquency or avoid
      foreclosure (through Fannie Mae’s various relief provisions or foreclosure prevention
      alternatives) and, if a foreclosure could not be avoided, on conﬁrming that
      the servicer completed the legal actions within Fannie Mae’s required time frames.
      For the most part, Fannie Mae will rely on various reports that are produced
      by its automated delinquency and foreclosure prevention management systems to
      evaluate the servicer’s performance. However, when Fannie Mae’s analysis of
      these reports indicates that there is a possibility that the servicer’s delinquency
      management performance is poor or if Fannie Mae believes certain servicing ﬁles
      should be reviewed for other reasons, Fannie Mae may require the servicer to
      submit a servicing review ﬁle for a mortgage loan to Fannie Mae’s SF CPM division
      (see F-4-02, List of Contacts). If Fannie Mae identiﬁes deﬁciencies in its evaluation
      of the servicing review ﬁle, it will communicate them to the servicer. The servicer,
      in most instances, will be given an opportunity to explain any mitigating circumstances
      or factors that justify the servicing actions it took (or did not take). When
      the servicer’s review identiﬁes signiﬁcant deﬁciencies, it may oﬀer to purchase
      the property from Fannie Mae when it submits the complete individual mortgage
      loan ﬁle (rather than waiting for the results of Fannie Mae’s review). Fannie
      Mae will entertain such oﬀers–as long as they will make Fannie Mae whole and
      are permitted by the Trust Agreement, if applicable–since Fannie Mae would no
      longer have to be concerned about the property disposition process. When Fannie
      Mae has received the origination and/or servicing review ﬁle, it will begin
      the process of reviewing the ﬁle(s) to determine whether the mortgage loan met
      Fannie Mae’s origination, eligibility and/or servicing standards. If Fannie
      Mae concludes that a repurchase demand should be issued on a mortgage loan pursuant
      to the origination defect remedies framework, Fannie Mae generally will issue
      a request for repurchase (calling for the servicer to take title to the property
      and pay Fannie Mae for its full investment in it). Fannie Mae may, on occasion,
      give the servicer the option of having Fannie Mae dispose of the property (and
      agreeing to indemnify Fannie Mae for any loss Fannie Mae incurs in connection
      with the sale), or require the lender to fully reimburse Fannie Mae for its
      loss through a demand for a make whole payment in the event that Fannie Mae
      sells the property or accepts a purchase oﬀer prior to notifying the servicer
      that the mortgage loan did not meet Fannie Mae’s eligibility or underwriting
      requirements. In the event the servicing defect identiﬁed by Fannie Mae also
      turns out to be a breach of any provision of any MI policy issued with respect
      to a mortgage loan, the seller/servicer is not released from any breach of the
      Lender Contract that may result if the MI company insuring the loan rescinds,
      cancels, denies, or curtails the MI beneﬁt due to the same or similar acts or
      omissions that make up the defect. Fannie Mae Quality Control Report Published
      May 13, 2026 96 Fannie Mae provides the seller/servicer with ongoing feedback
      about their overall QC performance. The feedback identiﬁes defect types, reporting
      on frequent or common defects, and describes quality trend analyses and signiﬁcant
      underwriting deﬁciencies identiﬁed through the QC review process. This information
      is provided through a variety of methods that range from regular electronic
      transmissions to more formal periodic discussions. When Fannie Mae identiﬁes
      a defective mortgage loan, it may in its sole discretion, impose a condition
      to retaining the mortgage loan, such as requiring the seller/servicer to agree
      to an alternative remedy to repurchase. In some cases, as permitted by the Lender
      Contract, Fannie Mae will issue a repurchase or make whole payment request to
      the seller/servicer. The Servicing Guide contains timelines by which the seller/servicer
      must pay Fannie Mae the funds that are due in connection with a demand for a
      servicing remedy in A1-3-02, Fannie Mae-Initiated Repurchases, Indemniﬁcations,
      Make Whole Payment Requests and Deferred Payment Obligations. If the seller/servicer
      delays in this or has a pattern of unresponsiveness, Fannie Mae may consider
      this an independent breach of contract and consider other actions against the
      seller/servicer, up to and including termination. Certain servicing repurchase
      alternatives may be available only to certain seller/servicers that are in good
      standing with Fannie Mae. See Servicer Responses to a Demand in A1-3-02, Fannie
      Mae-Initiated Repurchases, Indemniﬁcations, Make Whole Payment Requests and
      Deferred Payment Obligations for more information. Appeal of Fannie Mae QC Review
      Decisions Fannie Mae maintains processes for the seller/servicer to appeal a
      demand for a servicing remedy, including an IDR process, in certain instances.
      See the Selling Guide for more information on the origination defect remedies
      framework appeals process and Servicer Responses to a Demand in A1-3-02, Fannie
      Mae-Initiated Repurchases, Indemniﬁcations, Make Whole Payment Requests and
      Deferred Payment Obligations for more information on the servicing defect remedies
      framework appeal and escalation processes. A demand for a repurchase servicing
      remedy or reimbursement may be rescinded or withdrawn because the seller/servicer
      provides documentation within the time period speciﬁed by Fannie Mae (when Fannie
      Mae determines that a breach of the Lender Contract may be corrected). Servicing
      Review File Requirements The following table provides a list of the documentation
      that must be included in the servicing review ﬁle. ✓ The servicer must include
      in the servicing review ﬁle... The collection history for the default that led
      to the foreclosure or mortgage release (including the reason for the default,
      delinquency notices sent, and copies of borrower’s previous payment histories).
      A summary of all attempts to develop a workout plan or arrange a workout option,
      including evidence of any communication with Fannie Mae. Published May 13, 2026
      97 ✓ The servicer must include in the servicing review ﬁle... A bankruptcy tracking
      log, or a separate report indicating the dates of any bankruptcy ﬁlings and
      the dates that any lifting of a bankruptcy stay was attempted and attained.
      The foreclosure tracking log, or a separate report indicating the date that
      the case was referred to the foreclosure attorney and the date of the foreclosure
      sale, as well as summarizing any communications with Fannie Mae about delays
      in the foreclosure process (including delays resulting from the presence of
      hazardous waste, natural disasters, massive layoﬀs, etc.) or departures from
      standard foreclosure procedures (such as using judicial foreclosure in a power
      of sale state). Any other type of information that is requested, given the type
      of review. The outside of the servicing review ﬁle must clearly identify the
      case, as follows: servicing ﬁle for acquired property; mortgage remittance type
      (A/A, S/A, or S/S); servicing option (special or shared risk); Fannie Mae mortgage
      loan number; servicer mortgage loan number; borrower’s name; and property address.
      Underwriting or Servicing Reviews of Acquired Properties When Fannie Mae receives
      an oﬀer to purchase an acquired property that is also subject to an underwriting
      or servicing review, Fannie Mae may accept the purchase oﬀer without ﬁrst notifying
      the servicer, whether or not a ﬁnal decision has been reached with respect to
      the review. If, after completion of the review, Fannie Mae determines that the
      mortgage loan did not meet its eligibility or underwriting requirements and
      Fannie Mae has incurred a loss by selling the property, the seller/servicer
      will be required to fully reimburse Fannie Mae for its loss. Recent Related
      Announcements There are no recently issued Announcements related to this topic.
      Chapter A2-5, Individual Mortgage Loan Files and Records Introduction Published
      May 13, 2026 98 This chapter contains information on resources for mortgage
      loan ﬁles and records, including electronic transactions.'
  judgment: false
