source:
  type: guide
  id: fnma-sel-d1-3-03
  authority: Fannie Mae Selling Guide D1-3-03 — Lender Post-Closing Quality Control
    Reverifications
  description: Fannie Mae Selling Guide D1-3-03 — Lender Post-Closing Quality Control
    Reverifications.
  coverage_tier: operative
obligations:
- id: fnma-sel-d1-3-03-full
  canonical_id: fnma-sel-d1-3-03-full
  section: Fannie Mae Selling Guide D1-3-03 — Lender Post-Closing Quality Control
    Reverifications
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Selling Guide D1-3-03 — Lender Post-Closing Quality Control
      Reverifications
    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: 'D1-3-03, Lender Post-Closing Quality Control Reveriﬁcations
      (04/01/2026) Introduction This topic contains information on the lender''s post-closing
      QC reveriﬁcations, including: Overview Requirements for Reveriﬁcations Overview
      The reveriﬁcation process is designed to conﬁrm the authenticity of the loan
      documentation and verify the accuracy and integrity of the information relied
      upon in the underwriting decision. The process also serves to substantiate that
      no material changes have occurred that would aﬀect the loan''s eligibility as
      delivered to Fannie Mae. For QC random reviews, the lender must request reveriﬁcation
      of the components of the loan ﬁle utilized for qualiﬁcation, which may include
      income, employment, assets, liabilities, valuation (appraisal or property data
      collection), and occupancy. The lender must use the information in the reveriﬁcation
      documentation to reconcile the information used to underwrite the loan and make
      the lending decision. Published May 6, 2026 1056 Requirements for Reveriﬁcations
      The lender must pay any applicable fees charged by employers, ﬁnancial institutions,
      or other third- parties used to obtain reveriﬁcation information. The lender
      may supplement reveriﬁcation processes with alternative information sources
      available online, sources maintained by government agencies or other licensing
      authorities, and through the use of other third- parties to obtain a successful
      reveriﬁcation result. If the reveriﬁcation process reveals information that
      diﬀers from what was used in underwriting, the lender must re-underwrite the
      loan to conﬁrm its eligibility for delivery to Fannie Mae. For all loans selected
      for full-ﬁle review, the post-closing random QC review must reverify the following:
      income and employment, income tax returns, assets, credit history, property
      eligibility and property value, and occupancy. If the lender cannot obtain required
      post-closing QC reveriﬁcations, the lender must document the loan ﬁle with the
      request date, and that the information requested was not obtained. The lender
      must track reveriﬁcation results, including successful reveriﬁcations and unsuccessful
      attempts. The borrower''s income, employment, or assets do not have to be reveriﬁed
      (or recalculated) if they were validated by the DU Validation Service, and the
      lender satisﬁed all the requirements for obtaining representation and warranty
      enforcement relief (as described in A2-2-04, Limited Waiver and Enforcement
      Relief of Representations and Warranties), and the loan closed by the "Close
      by Date" stated in the DU validation message. For loans with representation
      and warranty enforcement relief related to undisclosed non-mortgage liabilities,
      the lender is not required to re-underwrite the loan to conﬁrm its eligibility
      for delivery to Fannie Mae when: the new, post-closing QC credit report reveals
      non-mortgage debt that was not disclosed by the borrower or discovered by the
      lender prior to or concurrent with the day of closing, the lender''s review
      of the ﬁle does not identify inconsistencies between the data or information
      in the loan ﬁle and the information submitted to DU, and all conditions for
      eligibility for relief described in A2-2-04, Limited Waiver and Enforcement
      Relief of Representations and Warranties have been met, including the reconciliation
      of conﬂicting and contradictory information and closing by the credit report
      expiration date. Income and Employment The lender must reverify the income and
      employment that was used to underwrite the loan and conﬁrm that all income of
      all borrowers has not changed to the point where the loan is ineligible for
      delivery to Fannie Mae. Reveriﬁcation of income and employment must align with
      the documentation requirements for the applicable income type. If the lender
      is required to document income using IRS W-2 forms for the most recent one-year
      Published May 6, 2026 1057 period in addition to a year-to-date paystub, all
      income and employment documents covering that period must be reveriﬁed. This
      includes reveriﬁcation of each employer if the borrower had more than one employer
      during the applicable timeframe. When an automated income veriﬁcation was obtained
      directly from an approved Fannie Mae vendor, reveriﬁcation of that income is
      not required. A verbal reveriﬁcation of employment and income is acceptable
      if the lender documents the conversation, including the date, name, title, and
      contact information of the person providing the details. Income Tax Returns
      The post-closing QC review must include the lender''s submission for tax transcripts
      to the IRS (or designee) using the IRS Form 4506-C (or an alternative IRS form
      or process that authorizes the release of comparable tax information) when tax
      returns were required and relied upon in underwriting to support the borrower''s
      income. Tax transcripts obtained through post-closing QC are used to reverify
      the accuracy and authenticity of the tax returns that supported the underwriting
      decision. The lender must reconcile the IRS transcript information with the
      corresponding income documentation in the loan ﬁle. See B3-3.1-02, Tax Return
      and Transcript Documentation Requirements, for detailed information. The following
      exception applies: If the lender obtained the appropriate IRS transcripts during
      its preclosing process (processing and underwriting), it may use the same documents
      in its post-closing QC process, without ordering new transcripts. Assets The
      lender must request reveriﬁcation of all sources of funds used for the down
      payment, closing costs, and reserves. Reveriﬁcation must be performed using
      the original documentation. The reveriﬁcation documentation obtained in post-closing
      QC must be compared to the documentation from origination to authenticate the
      amounts used are accurate and to ensure no documentation alterations were made.
      If the lender conﬁrms that an institution will not reverify asset account information
      on a systemic basis and maintains a separate log documenting the lender''s conﬁrmation
      of each institution''s process, the lender is not required to document the reveriﬁcation
      attempt for each individual loan. The lender must establish and follow a routine
      to reverify the institution''s process and remains responsible for the accuracy
      and integrity of the information. When an automated asset veriﬁcation was obtained
      directly from an approved Fannie Mae vendor, reveriﬁcation of that asset is
      not required. When a third-party asset veriﬁcation report is provided to DU
      for an assessment of rent payment history or a cash ﬂow assessment, reveriﬁcation
      of the full 12 months of asset data is not required. Reveriﬁcation of the assets
      used speciﬁcally for veriﬁcation of assets is required as described above. Credit
      History The post-closing QC review must include reveriﬁcation of the borrower''s
      credit history. If a borrower''s credit was evaluated by using a traditional
      credit report, the lender must reverify the borrower''s credit history by obtaining
      a new tri-merge credit report. The new report does not need to generate a new
      Published May 6, 2026 1058 inquiry that will appear on future credit reports
      or include trended credit data; even if reﬂected on the credit report used for
      underwriting purposes. The lender is not required to analyze trended credit
      data in the new credit report. If a borrower''s credit history was evaluated
      by using nontraditional credit or a nontraditional mortgage credit report, the
      lender must reverify each of the credit references on that report. If the lender
      obtained written references from creditors, the lender''s QC review process
      must include reveriﬁcation of each of the credit references. The liability information
      obtained on the new credit report must be reconciled against the credit report
      or references used at the time of underwriting to identify any discrepancies
      or the existence of any debt that may not have been taken into account when
      the loan was underwritten. Property Eligibility and Property Value The lender
      must complete a collateral risk assessment for loans with an appraisal or property
      data collection. Full appraisal collateral risk assessment must include the
      elements shown in the following table. ✓ The lender must... determine the property
      meets eligibility requirements including the LTV, CLTV, and HCLTV ratios. assess
      the appropriateness of comparable sales. Appraisal comps do not have to be reveriﬁed
      on appraisals with a Collateral Underwriter (CU) score of 2.5 or below if the
      lender satisﬁed all the requirements for obtaining representation and warranty
      enforcement relief (as described in A2-2-06, Representations and Warranties
      on Property Value. assess the appropriateness of the data presented and verify
      the appraisal report complies with B4-1.1-04, Unacceptable Appraisal Practices.
      conclude that the rationale for the reconciliation of value is supported. reconcile
      ﬂags and messages that were identiﬁed in Collateral Underwriter (CU) if the
      property was able to be scored in CU. If the property was not able to be scored
      in CU, then reconcile any known quality messages (messages, alerts, ﬂags) reﬂected
      in other third-party tools, if utilized. If the lender is unable to complete
      the collateral risk assessment or evaluate the origination appraisal, it may
      order either a desk review or ﬁeld review from a licensed appraiser. The desk
      review or ﬁeld review must account for all of the above collateral risk assessment
      requirements. Property data collection collateral risk assessment must include
      the elements shown in the following table. Published May 6, 2026 1059 ✓ The
      lender must... assess the accuracy of the data obtained through the property
      data collection. identify any property eligibility issues and items of safety,
      soundness, or structural integrity concern. determine whether the lender appropriately
      required repairs or inspections. Occupancy The post-closing QC review must include
      occupancy assessment for the subject property. The lender must review the loan
      ﬁle documentation (for example, property insurance policy, appraisal, income
      tax returns or transcripts, lease agreements, etc.) to conﬁrm the documented
      occupancy is accurate. When occupancy red ﬂags are identiﬁed, the lender must
      further investigate. For example, the lender may use publicly available listing
      or sale information or hire a door-knock service to ensure the occupancy status
      is accurate. Recent Related Announcements The table below provides references
      to recently issued Announcements that are related to this topic. Announcement
      Issue Date Announcement SEL-2026-03 April 01, 2026 Announcement SEL-2025-09
      November 05, 2025 Announcement SEL-2025-04 June 04, 2025 Announcement SEL-2019-03
      April 03, 2019 Subpart D2, Fannie Mae QC Process Introduction Fannie Mae’s Loan
      Quality Center reviews a sample of the mortgage loans purchased or securitized
      by Fannie Mae to ensure that they meet its underwriting and eligibility requirements.
      This subpart describes Fannie Mae’s policies and practices with respect to the
      selection, review, and reporting of results; and the lender’s responsibilities
      for participating in this process. Fannie Mae also reviews servicing ﬁles with
      the primary focus of Published May 6, 2026 1060 conﬁrming that the mortgage
      loan has been serviced in accordance with the and Lender Contract. See the for
      a description of the servicing QC process. In addition, within the Loan Quality
      Center, the Data Validation Center team follows up on loan-level data discrepancies
      to perform required data changes that, in some instances, may indicate eligibility
      concerns leading to a full underwriting review. Chapter D2-1, General Information
      on Fannie Mae QC Process Introduction This chapter provides general information
      on the Fannie Mae QC reviews that focus on underwriting and eligibility requirements.'
  judgment: false
