source:
  type: guide
  id: fhlmc-3402.2
  authority: Freddie Mac Single-Family Seller/Servicer Guide Section 3402.2 — Quality
    control processes
  description: Freddie Mac Single-Family Seller/Servicer Guide Section 3402.2 — Quality
    control processes.
  coverage_tier: operative
obligations:
- id: fhlmc-3402.2-full
  canonical_id: fhlmc-3402.2-full
  section: Freddie Mac Single-Family Seller/Servicer Guide Section 3402.2 — Quality
    control processes
  type: do
  tags:
  - regulator-direct
  - fhlmc
  - freddie-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide Section 3402.2 — Quality
      control processes
    source_class: fhlmc-guide
    source_url: https://guide.freddiemac.com/ci-guide
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-05-23T00:27:40Z'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '3402.2: Quality control processes (05/06/26) This section contains
      requirements related to: ■ Post-closing sample selection ■ Reverifications made
      by the Seller ■ Data integrity review ■ Documentation review ■ Preclosing quality
      control reviews (a) Post-closing sample selection The Seller’s post-closing
      quality control sample must, at a minimum, consist of three sample types: ■
      Random Freddie Mac Single-Family Seller/Servicer Guide Chapter 3402 As of 05/06/26
      Page 3402-4 ■ Targeted ■ Discretionary (i) Random sample Home Mortgages in the
      random sample are randomly selected from the population so that every Mortgage
      has an equal chance of selection. Loan Product Advisor® Mortgages must make
      up a representative portion of the Seller’s quality control sample. Except as
      provided under the last paragraph of this section, the Seller must: ■ Select
      at least 10% of one of the following production populations for quality control
      review: ❑ Total annual Home Mortgage production ❑ Total annual secondary market
      Home Mortgage production ❑ Total annual Freddie Mac Home Mortgage production
      However, any Mortgages excluded from the Seller’s quality control sample selection
      process, as set forth in the remaining provisions of this section, are not eligible
      for sale to Freddie Mac. ■ Schedule its sampling procedures so that every Home
      Mortgage within the selected population has a chance of being selected for review
      within 90 days of the Note Date ■ Assign to quality control personnel the authority
      to conduct additional reviews at their discretion ■ Warrant that over the course
      of each 12-month period, the selected samples are representative of the full
      scope of the Seller’s product line and production process within the selected
      population The full scope of the Seller’s product line and origination process
      includes all of the following: ■ Home Mortgages from all product lines ■ Home
      Mortgages from all States of operation ■ Home Mortgages from each branch office
      ■ Home Mortgages from each third party involved in the origination process Freddie
      Mac Single-Family Seller/Servicer Guide Chapter 3402 As of 05/06/26 Page 3402-5
      ■ Home Mortgages with high-risk characteristics (e.g., high loan-to-value ratios,
      ARMs, 3- to 4-unit properties, Manufactured Homes, cash-out refinance Mortgages,
      Investment Property Mortgages and Caution Mortgages) A Seller with a total annual
      production volume in excess of 5,000 Home Mortgages may substitute a statistically
      based sampling methodology that is of sufficient size to ensure a confidence
      level of 95% and a margin of error not to exceed 2% on an annual basis based
      on the defect rates for Mortgages recently reviewed by the Seller’s quality
      control. (ii) Targeted sample Each month, the Seller must select an appropriate
      risk-based sample of Mortgages sold to Freddie Mac that become 60 days or more
      past due in the first six months following the Note Date. These Mortgages must
      be carefully evaluated to determine the presence of any fraud or other deficiency.
      (iii)Discretionary sample Mortgages in a discretionary sample are selected on
      a non-random basis from a specific population. When selecting Mortgages to be
      reviewed as part of the Seller’s discretionary post- closing quality control
      sample, the Seller may choose to make targeted Mortgage selections that focus
      on a specific characteristic of the Mortgage, such as product, business source
      or underwriting component (e.g., income and employment, assets, credit or property).
      When conducting these discretionary reviews, the Seller must consider the purpose
      of the targeted selection when determining whether certain reverifications are
      necessary. Examples: ■ If the purpose of the targeted selection is to focus
      specifically on income calculations, then reverification of assets or a review
      of the appraisal is not within the scope of the review and is not required to
      be completed; however, reverifications of income and employment are required
      ■ If the purpose of the targeted selection is to review Mortgages originated
      through a new source of business, then all aspects of the Mortgage are within
      the scope of the review, and all reverifications noted in Section 3402.2(b)
      must be performed. Freddie Mac Single-Family Seller/Servicer Guide Chapter 3402
      As of 05/06/26 Page 3402-6 As required in Section 3201.1(c), discretionary samples
      must be selected to evaluate the work of a particular employee or Mortgage transaction
      participant when there is a reason to suspect fraud. Discretionary samples should
      also be selected as needed in order to: ■ Review the work of a new branch office,
      employee or third-party originator ■ Validate that a new product or offering
      is being originated in accordance with the Seller’s policies and procedures
      ■ Comply with a request from Freddie Mac to review loans in a specific population
      (b) Reverifications made by the Seller The Seller must make certain reverifications
      on Loan Product Advisor and Non-Loan Product Advisor Mortgages selected for
      post-closing quality control review. The purposes of the reverification process
      include: ■ Evaluating the validity, accuracy and quality of the information
      used in the original underwriting decision ■ Protecting the Seller against fraud
      and misrepresentation Sellers should begin reverifying the information listed
      in this section as soon as possible after the sample selection to facilitate
      the Mortgage file review. Reverifications may be in written or verbal form.
      All reverification documentation must be retained in the Mortgage file. (i)
      Verifications of employment, income and sources of funds (A) Reverifications
      Except as noted below, for post-closing quality control reviews: ■ The Seller
      must reverify all employment, income and sources of funds used in the original
      underwriting process and based on the minimum documentation required at the
      time of origination ■ Copies of the original verifications should be submitted
      to the issuers with a request that they confirm the accuracy of the documentation
      ■ The Seller must pay any applicable fees that are charged for the reverification
      information Freddie Mac Single-Family Seller/Servicer Guide Chapter 3402 As
      of 05/06/26 Page 3402-7 I. Exceptions to the reverification requirements The
      following table contains exceptions to the reverification requirements that
      are permitted provided the Mortgage file contains no evidence of misrepresentation
      in connection with the Borrower’s application, documentation or any part of
      the underwriting of the Mortgage: Exceptions to reverification requirements
      Documentation Requirement for reverification Income, employment or sources of
      funds used in the original underwriting process received from a third-party
      service provider designated by Freddie Mac (as of the date of the post-closing
      quality control review), or from a Freddie Mac financial institution verification
      report, for the income or asset type used to qualify the Borrower1 Reverification
      not required for eligible income types (see Sections 5303.4(b), 5303.5(b) and
      5305.2(b)) or eligible asset types (see Section 5501.8(b)) when the report data
      is accessed directly from an authorized electronic database of employer provided
      information or when tax transcripts are obtained from the Internal Revenue Service
      (IRS) (see Sections 5304.2(e)(iii) and 5306.2(e)(iii)). 10-day pre-closing verification
      (10-day PCV) confirmed by the Feedback Certificate or verification report If
      the Note Date is on or before the close- by date (provided on the Feedback Certificate
      or verification report) indicating the 10-day PCV requirement is met, reverification
      of employment is not required. See Section 5302.6 for automated employment assessment
      with Loan Product Advisor requirements. 1The list of third-party service providers
      currently designated by Freddie Mac can be found at https://sf.freddiemac.com/tools-learning/loan-advisor/our-solutions/aim-asset-income-
      modeler. II. Requirements for reverifications The following table contains requirements
      for reverifications: Requirements for reverifications Method of reverification
      Requirements Verbal reverifications of employment, income and source of funds
      Must be documented in writing and do the following: Freddie Mac Single-Family
      Seller/Servicer Guide Chapter 3402 As of 05/06/26 Page 3402-8 Requirements for
      reverifications Method of reverification Requirements ■ Identify the name of
      the quality control reviewer who made the contact ■ Identify the name of the
      business (employer, bank, etc.) ■ Identify the name and title of the individual
      who provided the verification (employer contact, gift donor, etc.) ■ Show the
      date(s) of the contact ■ Confirm that the information in the original verification
      was accurate or identify any inaccuracy ■ Identify the phone number for the
      individual contacted. The phone number must be obtained from an acceptable third-party
      source. ■ Identify the name of the third-party source used to obtain the phone
      number (phone directory, reliable internet source, 411 information services,
      etc.) E-mail reverifications of employment and income An e-mail exchange with
      the Borrower’s employer from the independently obtained employer’s work e-mail
      address that, at a minimum, must include all of the following: ■ Borrower’s
      name and employer’s name ■ Name and title of the individual contacted at the
      employer, date of contact and the individual’s work e- mail address ■ Borrower’s
      current employment status In addition, the Mortgage file must include: Freddie
      Mac Single-Family Seller/Servicer Guide Chapter 3402 As of 05/06/26 Page 3402-9
      Requirements for reverifications Method of reverification Requirements ■ Information
      about the third-party source used to obtain the employer’s e-mail (e.g., a reliable
      internet source), and ■ Name, title and employer of the representative who contacted
      the Borrower’s employer and obtained the e-mail verification As part of quality
      control review, Freddie Mac may require, in its discretion, that the Seller
      reverify the information contained in any Mortgage file submitted to Freddie
      Mac. Freddie Mac reserves the right to independently reverify the information
      contained in any Mortgage file. (B) Tax information Tax transcripts in post-closing
      quality control reviews are a critical part of validating the income documentation
      that was used in qualifying the Borrower. Except as noted below, for post-closing
      quality control reviews, the Seller must: ■ Request the IRS income information
      using IRS Form 4506-C or an alternate form acceptable to the IRS that authorizes
      the release of comparable tax information (e.g., IRS Form 8821) for each Mortgage
      selected for quality control review ■ Request tax information covering the full
      year(s) that align with all income used in qualifying, regardless of income
      type ■ Ensure the tax information received from the IRS supports all taxable
      income used in qualifying, regardless of income type I. Exceptions to the reverification
      requirements The following table contains exceptions, which are permitted provided
      the Mortgage file contains no evidence of misrepresentation in connection with
      the Borrower’s application, documentation or any part of the underwriting of
      the Mortgage: Freddie Mac Single-Family Seller/Servicer Guide Chapter 3402 As
      of 05/06/26 Page 3402-10 Exceptions to reverification requirements Documentation
      Requirement for tax information All of the income used to qualify the Borrower
      is received from a third-party service provider designated by Freddie Mac (as
      of the date of the post-closing quality control review) or from a Freddie Mac
      financial institution verification report for the income type used to qualify
      the Borrower.1 Not required for eligible income types (see Sections 5303.4(b),
      5303.5(b) and 5305.2(b)) when the report is accessed directly from the service
      provider’s electronic database IRS income information was received during the
      origination process. Not required 1 The list of third-party service providers
      currently designated by Freddie Mac can be found at https://sf.freddiemac.com/tools-learning/loan-advisor/our-solutions/aim-asset-income-
      modeler II. Income derived from sources in Puerto Rico, Guam or the U.S. Virgin
      Islands For Borrowers with income that is derived from sources in Puerto Rico,
      Guam or the U.S. Virgin Islands that are exempt from federal income taxation
      under the Internal Revenue Code, the above requirements apply, except as follows:
      ■ For Borrowers with income that is derived from sources in Puerto Rico, the
      Seller must submit Commonwealth of Puerto Rico Form 2907 titled “Request For
      Copy of the Return, Estate or Gift Certificate of Release” (Modelo SC 2907 “Solicitud
      De Copia De Planilla, Relevo De Herencia Y De Donacion”) to the Puerto Rico
      Department of the Treasury, Internal Revenue Area ■ For Borrowers with income
      that is derived from sources in Guam or the U.S. Virgin Islands, the Seller
      must submit IRS Form 4506-C or an alternate form that authorizes the release
      of comparable tax information to a third party (e.g., IRS Form 8821) to the
      Guam Department of Taxation and Revenue or Virgin Islands Bureau of Internal
      Revenue, as applicable (ii) Borrower’s Social Security number For Mortgages
      included in post-closing quality control samples, the Seller must validate the
      Social Security number provided by each Borrower. Freddie Mac Single-Family
      Seller/Servicer Guide Chapter 3402 As of 05/06/26 Page 3402-11 The Seller is
      not required to validate the Social Security number during the post-closing
      quality control review if all the following apply: ■ The Seller validated the
      Social Security number during the loan origination process or a preclosing quality
      control review, ■ The Social Security number was not initially validated by
      a Mortgage Broker or Correspondent, and ■ The Mortgage file indicates there
      were no misrepresentations in connection with the Borrower’s application or
      the underwriting of the Mortgage (iii)Credit reports The table below identifies
      the requirements for obtaining credit reports as part of the Seller’s in-house
      quality control program. For all Mortgages selected for post-closing quality
      control review, the Seller must determine whether additional credit was granted
      and considered in qualifying. Requirements for obtaining credit reports as part
      of the Seller’s in-house quality control program Credit assessment Post-close
      quality control requirements Loan Product Advisor Accept Mortgages ■ The Seller
      must verify that the Loan Product Advisor provided credit reports are for the
      correct Borrower ■ The Seller must verify that the identifying information for
      any Borrower (name, current and previous address and Social Security number)
      is true, complete and accurate and properly input into Loan Product Advisor
      on or before the Note Date ■ Any credit information obtained from sources other
      than Loan Product Advisor must be reviewed ■ The Seller is not required to obtain
      a new credit report ■ The Seller is not required to review the Loan Product
      Advisor-provided credit reports to determine that the credit report was properly
      underwritten or that it is in Freddie Mac Single-Family Seller/Servicer Guide
      Chapter 3402 As of 05/06/26 Page 3402-12 Requirements for obtaining credit reports
      as part of the Seller’s in-house quality control program Credit assessment Post-close
      quality control requirements compliance with credit underwriting guidelines
      Non-Loan Product Advisor Mortgages ■ For one out of every 10 Mortgages selected
      for post-closing quality control review, the Seller must obtain either a new
      Residential Mortgage Credit Report or a three-repository merged in-file credit
      report ■ For the remaining Mortgages in the Seller’s post-closing quality control
      sample, the Seller must obtain a new in- file credit report containing information
      from one or more of the national repositories Manually Underwritten Mortgages
      The Seller must re-underwrite the credit and continue to review the Mortgage
      file documents in accordance with Section 3402.2(d) to determine that the Mortgage
      was underwritten to Freddie Mac’s requirements. (iv) Verification of owner-occupancy
      For all Mortgages secured by Primary Residences that are selected for post-closing
      quality control review, the Seller must verify that the Borrower is occupying
      the Mortgaged Premises as a Primary Residence. (v) Property valuation As part
      of the Seller’s quality control program, for Mortgages selected for post-closing
      quality control reviews, the Seller must ensure the appraisal, or, if applicable,
      other property valuation, meets Freddie Mac requirements. The process is expected
      to use: ■ Desk reviews ■ Field reviews Freddie Mac Single-Family Seller/Servicer
      Guide Chapter 3402 As of 05/06/26 Page 3402-13 ■ Automated valuation models
      ■ Multiple listing service data ■ Public records data ■ Online tools ■ Other
      appropriate methods in order to validate and ensure the quality of origination
      information. Freddie Mac Enhanced Relief Refinance® Mortgages may be excluded
      from property valuation reviews. In the event the Seller’s quality control review
      determines that a quality control finding affects the eligibility of a Mortgage
      sold to Freddie Mac on the Settlement Date, the Seller must report the finding
      to Freddie Mac within 90 days or within 60 days of the finding if fraud or possible
      fraud is involved, consistent with Section 3402.3(b). For the Mortgages selected
      for quality control review, the Seller must comply with the following: (A) Mortgages
      originated with appraisals I. Review of appraisal reports that did not receive
      appraised value representation and warranty relief For Mortgages originated
      with appraisals except as described in Section 3402.2(b)(v)(A)(II) below, the
      Seller must obtain a desk review of the appraisal report to ensure that it accurately
      reflects the market value, condition and marketability of the subject property
      and that the Mortgaged Premises is adequate collateral for the Mortgage. The
      desk review is not required to be performed by an appraiser (i.e., a Uniform
      Standards of Professional Appraisal Practice compliant appraisal review meeting
      Standards 3 and 4 is not required). However, the reviewer must be familiar with
      the subject’s Market Area and be qualified to do the following: ■ Address the
      appropriateness of the data presented in the report, ■ Address the appropriateness
      of the comparable sales, and ■ Conclude that the appraiser’s rationale for the
      final reconciliation of value was supported and the appraisal and property eligibility
      meet Freddie Mac requirements Freddie Mac Single-Family Seller/Servicer Guide
      Chapter 3402 As of 05/06/26 Page 3402-14 If the Seller determines that the characteristics
      of the property or the scope of the desk review is insufficient to determine
      the accuracy of the appraisal or the adequacy of the collateral, a field review
      performed by an appraiser unaffiliated with the origination appraiser or appraisal
      firm documented on one of the following forms, as applicable, is required: ■
      If the Mortgage is secured by a one-unit property and a field review is obtained,
      the results must be reported on Form 1032, One-Unit Residential Appraisal Field
      Review Report ■ If the Mortgage is secured by a 2- to 4-unit property and a
      field review is obtained, the results must be reported on Form 1072, Two- to
      Four-Unit Residential Appraisal Field Review Report Note: The Seller does not
      need to obtain a field review during the quality control review if one was obtained
      during the origination process and adequately supported the eligibility of the
      Mortgage for sale to Freddie Mac. II. Review of appraisal reports with appraised
      value representation and warranty relief (Loan Collateral Advisor® risk score
      less than or equal to 2.5) The Seller must ensure that the Mortgage meets the
      requirement of Section 5602.2, and the Seller is required to comply with Section
      3402.2(b)(v)(A)(I) above, except that Seller is not required to review the accuracy
      of the appraiser’s opinion of market value. For example, the selection of comparable
      sales and adjustments may be excluded from the review. The Seller’s review of
      the appraisal should focus on the data quality, condition and marketability
      of the property and ensure the Mortgaged Premises is adequate collateral for
      the Mortgage. (B) Mortgages originated with automated collateral evaluation
      (ACE) or ACE+ PDR For Mortgages originated with ACE or ACE+ PDR as described
      in Section 5602.3 or 5602.4, the Seller is not required to comply with Sections
      3402.2(b)(v)(A)(I) and (II) above. However, for such Mortgages, the Seller must
      conduct a review to ensure that the data submitted to Loan Product Advisor was
      accurate and the eligibility requirements of Section 5602.3 or 5602.4 were met.
      (c) Data integrity review The Seller’s post-closing quality control review procedures
      for all Mortgages must include a review of the completeness and accuracy of
      the information obtained in the Mortgage origination process. Freddie Mac Single-Family
      Seller/Servicer Guide Chapter 3402 As of 05/06/26 Page 3402-15 The data integrity
      review of the information must include a process for checking data fields entered
      in Loan Product Advisor and ensuring that all data submitted is valid. The Seller
      must perform a data integrity review on all Mortgages sampled to ensure that
      the loan data is accurate and consistent. Source documentation to be reviewed
      includes: ■ Form 65, Uniform Residential Loan Application(s) ■ Employment and
      income verifications ■ Sales contracts ■ Tax returns ■ Credit data ■ Asset documentation
      ■ Property valuation documentation ■ Mortgage delivery data, including the Key
      Number when applicable. If the business area that conducts the post-closing
      quality control review does not have access to the delivery data, including
      the Key Number, this portion of the review may be conducted by another business
      area if there are documented controls in place to mitigate any delivery data
      errors. (d) Documentation review For Mortgages included in the post-closing
      quality control sample, the Seller must review and affirm: ■ The existence and
      accuracy of documentation necessary to determine compliance with applicable
      law, as required in Section 4202.1(a) ■ Compliance with the eligibility and
      underwriting requirements and guidelines of the Seller, the MI and Freddie Mac,
      as applicable, including: ❑ Compliance with the Seller’s warranties regarding
      Freddie Mac’s Exclusionary List ❑ The Settlement/Closing Disclosure Statement
      and related documentation to determine that all conditions of closing have been
      satisfied Alternatively, a Seller may choose to perform reviews of the existence
      and accuracy of documentation required by applicable law on a post-closing quality
      control sample separate from the review of eligibility and underwriting requirements,
      but the review must be performed on no fewer Mortgages than required by Section
      3402.2(a)(i). Freddie Mac Single-Family Seller/Servicer Guide Chapter 3402 As
      of 05/06/26 Page 3402-16 In the event a Seller chooses to conduct this separate
      sample, the Seller must have a process to review for compliance with applicable
      law all Mortgages identified through its review of eligibility and underwriting
      requirements that may: ■ Exceed Home Ownership and Equity Protection Act of
      1994 Mortgage thresholds, ■ Meet the definition of a Higher-Priced Mortgage
      Loan (HPML) or Higher-Priced Covered Transaction (HPCT), as defined in the Glossary,
      or ■ Exceed the points and fees limitation indicated in Section 4202.2(c) The
      Seller must also include the following documents in its quality control review
      for comparison with the reverifications received: ■ Form 65 ■ Credit documentation
      ■ Employment and income documentation* ■ Asset documentation* ■ Property valuation
      documentation ■ Sales contract ■ Form 1077, Uniform Underwriting and Transmittal
      Summary, or equivalent form (e.g., a Feedback Certificate) *When the Seller
      uses a System (as defined in Section 2401.1(b)) for an automated income and/or
      asset assessment and receives a representation and warranty eligibility relief
      result of “Eligible” or “Partial”, the following table contains exceptions with
      respect to evaluating the validity, accuracy and quality of the information
      used in the original underwriting decision: Evaluation exceptions based on document
      type Document type Evaluation exception Third-party verification report using
      employed income data or paystub(s) and W-2 form(s) The Seller is not required
      to recalculate such income for eligible income types described in Section 5303.4(b)
      that are on the verification report or paystub(s) and W-2 form(s). Freddie Mac
      Single-Family Seller/Servicer Guide Chapter 3402 As of 05/06/26 Page 3402-17
      Evaluation exceptions based on document type Document type Evaluation exception
      Income Calculation Report The Seller is not required to: ■ Recalculate income
      for eligible self- employed income described in Section 5304.2(b) or eligible
      rental income described in Section 5306.2(b) that is on the Income Calculation
      Report, and ■ Perform the business review and analysis described in Section
      5304.1(d) for eligible self-employed income that is on the Income Calculation
      Report Only when the eligible result is returned for tax return data representation
      and warranty relief, the Seller is not responsible for accuracy and integrity
      of the tax return data for eligible income described in Section 5304.2(b) that
      is on the Income Calculation Report. Asset verification report The Seller is
      not required to recalculate eligible asset types described in Section 5501.8(b)
      that are indicated on the verification report. Verification report using Borrower’s
      account data The Seller is not required to recalculate such income for eligible
      income types described in Sections 5303.5(b) and 5305.2(b) that are on the verification
      report. Freddie Mac Income Calculator Certificate using paystub(s) and W-2 form(s)
      The Seller is not required to recalculate such income for eligible income types
      described in Section 5303.4(b) that are on the paystub(s) and W-2 form(s). Freddie
      Mac Income Calculator Certificate using tax data The Seller is not required
      to: ■ Recalculate income for eligible self- employed income described in Section
      5304.2(b) or eligible rental income described in Section 5306.2(b) that is on
      the Freddie Mac Income Calculator Certificate, and Freddie Mac Single-Family
      Seller/Servicer Guide Chapter 3402 As of 05/06/26 Page 3402-18 Evaluation exceptions
      based on document type Document type Evaluation exception ■ Perform the business
      review and analysis described in Section 5304.1(d) for eligible self-employed
      income that is on the Freddie Mac Income Calculator Certificate Asset and income
      modeler (AIM) payroll application programming interface (API) with income representation
      and warranty relief result (“AIM Payroll API R&W Assessment”) The Seller is
      not required to recalculate such income for eligible income types described
      in Section 5303.4(b) that are on the paystub(s) and W-2 form(s). The Seller
      must include the following applicable closing documents in its post-closing
      quality control review to ensure that the information is accurate, complete
      and consistent with other documents in the Mortgage file: ■ Notes and riders
      ■ Security Instruments and assignments ■ Mortgage insurance certificate or policy
      or Mortgage guaranty certificate ■ Modification or assumption agreement ■ Title
      binder or final title insurance policy (both if available) or other evidence
      of title ■ Plat or survey ■ Settlement/Closing Disclosure Statements and related
      documentation ■ Leasehold estate documents ■ Hazard insurance policy or certificate
      ■ Flood insurance policy or certificate or flood zone determination documents
      ■ Underwriter’s approval and any conditions of closing ■ Closing instructions
      Freddie Mac Single-Family Seller/Servicer Guide Chapter 3402 As of 05/06/26
      Page 3402-19 (e) Preclosing quality control reviews The Seller’s quality control
      program must include a process to perform quality control reviews on a sampling
      of its Mortgages prior to closing. The goal of an effective preclosing review
      process is to monitor the Seller’s origination policies, ensure the accuracy
      of the Mortgage data and prevent the closing of Mortgages with deficiencies
      such as fraud, inaccurate data and insufficient documentation. The Seller’s
      in-house preclosing quality control process should operate independently of
      the Mortgage origination and underwriting departments when operationally possible.
      (i) Procedures The Seller’s preclosing review process should include procedures
      for: ■ Completing sample selection and ensuring timing permits reviews to be
      completed prior to closing ■ Reporting deficiencies and taking appropriate corrective
      measures ■ Documenting the resolution of defects ■ Canceling or postponing settlement
      when the preclosing review reveals deficiencies or when the review cannot be
      completed prior to the scheduled settlement (ii) Sample selection The Seller’s
      sampling process should include Mortgages that are representative of the full
      scope of the Seller’s product line and production process as defined in Section
      3402.2(a)(i). The Seller should regularly assess its sampling methodology to
      ensure that its preclosing quality control process is effective. Additionally,
      the Seller should target samples, as needed, in order to: ■ Review the work
      originated by a new branch office, employee or third-party originator ■ Validate
      that a new product or offering is being originated in accordance with the Seller’s
      policies and procedures ■ Evaluate the work of a particular employee or Mortgage
      transaction participant when there is a reason to suspect fraud as required
      in Section 3201.1(c) (iii) Validation and reverification An effective preclosing
      quality control review process should include validation or reverification of:
      Freddie Mac Single-Family Seller/Servicer Guide Chapter 3402 As of 05/06/26
      Page 3402-20 ■ Data entered into Loan Product Advisor ■ Social Security number
      provided by each Borrower, unless the Seller validated the number during the
      loan origination process ■ Income documentation and calculation ■ Employment
      ■ Assets required to close or meet reserves requirements ■ Property valuation
      documentation or property valuation data ■ Mortgage insurance commitment reflecting
      adequate coverage ■ Whether additional credit was granted and considered in
      qualifying when the Borrower’s credit report reveals inquiries within the previous
      90-day period Note: See Sections 3402.2(b) and 3402.2(d) for reverification
      exceptions and requirements.'
  judgment: false
