source:
  type: guide
  id: fnma-sel-d1-1-02
  authority: Fannie Mae Selling Guide D1-1-02 — Lender Quality Control Staﬃng and
    Outsourcing of the Quality Control Process
  description: Fannie Mae Selling Guide D1-1-02 — Lender Quality Control Staﬃng and
    Outsourcing of the Quality Control Process.
  coverage_tier: operative
obligations:
- id: fnma-sel-d1-1-02-full
  canonical_id: fnma-sel-d1-1-02-full
  section: Fannie Mae Selling Guide D1-1-02 — Lender Quality Control Staﬃng and Outsourcing
    of the Quality Control Process
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Selling Guide D1-1-02 — Lender Quality Control Staﬃng and
      Outsourcing of the Quality Control Process
    source_class: fnma-guide
    source_url: https://singlefamily.fanniemae.com/media/document/pdf/selling-guide
    snapshot_id: 5f7b8b79da595d76
    fetched_at: '2026-05-25T14:09:57Z'
    content_hash: sha256:98cf85a02861bbe84914a0e339b327c8fc131869a8a573882007bbeea60c5701
    paragraph_quote: 'D1-1-02, Lender Quality Control Staﬃng and Outsourcing of the
      Quality Control Process (04/01/2026) Introduction This topic contains information
      on lender QC staﬀ and outsourcing, including: QC Functional Area Reporting Structure
      and Staﬃng Outsourcing of the QC File Review Process QC Vendor Management QC
      Functional Area Reporting Structure and Staﬃng To preserve the integrity of
      the process, all QC employees (including those related to establishing, monitoring,
      and enforcing procedures) must be independent of the production, underwriting,
      and closing departments. If it is not evident that a lender’s organizational
      structure allows for separation of these functions, the lender’s QC plan must
      include the rationale for the lack of separation and the controls that have
      been established to mitigate the potential associated risks. When the independence
      of the functions is not evident, the lender must be able to demonstrate the
      following in its QC program: clearly deﬁned testing protocols that are governed
      by change control and approval authority that support program-level independence,
      and documentation at the loan level that supports changes to audit decisions
      made during the review and rebuttal process. The lender must establish minimum
      requirements for the skill set and expertise of the staﬀ managing and performing
      the QC ﬁle review process, including the QC vendor oversight, as applicable,
      by documenting minimum job qualiﬁcations. The lender is responsible for ensuring
      that all individuals conducting QC reviews are adequately trained and have suﬃcient
      experience levels relative to the reviews being conducted, including manual
      underwriting and/or loans processed through any automated underwriting systems
      utilized by the lender. The lender is also responsible for ensuring that reviewers
      conducting more complex or specialized Published May 6, 2026 1043 reviews (for
      example, collateral risk assessments or evaluations of self-employed borrowers)
      have the requisite knowledge and experience to perform those reviews eﬀectively.
      Detailed policies and procedures for the QC ﬁle review process must be provided
      to all employees who will be involved with the QC ﬁle reviews. Outsourcing of
      the QC File Review Process Quality control is a critical element in an eﬀective
      overall risk management framework. As such, Fannie Mae holds the lender fully
      accountable for its overall QC program and for ensuring that QC ﬁle reviews
      comply with Fannie Mae’s requirements, regardless of whether the work is performed
      by the lender itself or by an outsourced QC vendor. The lender’s contract for
      services is not a substitute for the lender establishing and maintaining its
      own QC plan. The lender must ensure the QC vendor conducts ﬁle reviews in accordance
      with the lender’s QC plan. The QC vendor must have written policies and procedures
      detailing its review methodologies, including selections, identiﬁcation of defects
      and trends, reveriﬁcations, and reporting those results to the lender. The lender
      must ensure that the vendor’s review staﬀ possesses the qualiﬁcations and experience
      required to provide quality reviews and meaningful analysis, and that the vendor’s
      policies and procedures align with the lender’s QC policies and procedures and
      meet Fannie Mae’s requirements. The lender must fully incorporate the results
      of the vendor’s reviews into its QC reporting and remediation processes. The
      lender must also have procedures to associate the appropriate severity levels
      with the identiﬁed defects, and to implement corrective actions within the lender’s
      organization, the same as it would for defects identiﬁed by the lender’s own
      QC staﬀ or QC contractors. QC Vendor Management If a lender chooses to utilize
      a third-party vendor for all or a portion of their QC ﬁle review process. The
      lender’s QC plan must include processes for reviewing the vendor’s work to ensure
      that the lender’s requirements and guidelines are applied consistently and that
      the review results accurately reﬂect the quality of the lender’s originations.
      The lender must perform a monthly review of at least 10% of the post-closing
      QC sample reviewed by the vendor to validate the accuracy and completeness of
      the vendor’s work. The 10% sample must include loans for which the vendor identiﬁed
      defects and for which no defects were identiﬁed. This review must be performed
      by the lender itself and may not be contracted out. Reports reﬂecting the ﬁnal
      results of the 10% QC vendor review must be produced monthly and completed within
      30 days following the publication of the ﬁnal QC management report. Although
      Fannie Mae does not specify an exact format, the reports must be useful to management
      in evaluating and monitoring the quality of the outsourced QC vendor. The reports,
      at a minimum, must include: a description of the sample selected for review,
      concurrence rates, and discrepancies identiﬁed by the lender. Recent Related
      Announcements The table below provides references to recently issued Announcements
      that are related to this topic. Published May 6, 2026 1044 Announcements Issue
      Date Announcement SEL-2026-03 April 01, 2026 Announcement SEL-2025-04 June 04,
      2025 Announcement SEL-2019-07 August 07, 2019'
  judgment: false
