source:
  type: guide
  id: fhlmc-3402.1
  authority: Freddie Mac Single-Family Seller/Servicer Guide Section 3402.1 — Quality
    control program structure
  description: Freddie Mac Single-Family Seller/Servicer Guide Section 3402.1 — Quality
    control program structure.
  coverage_tier: operative
obligations:
- id: fhlmc-3402.1-full
  canonical_id: fhlmc-3402.1-full
  section: Freddie Mac Single-Family Seller/Servicer Guide Section 3402.1 — Quality
    control program structure
  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 3402.1 — Quality
      control program structure
    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: '3402.1: Quality control program structure (05/06/26) This section
      contains requirements related to: ■ Seller’s quality control program ■ Use of
      third-party quality control services ■ Transfers of Servicing (a) Seller’s quality
      control program The Seller must operate a quality control program for Home Mortgages
      that is acceptable to Freddie Mac. Organizations with a commitment to quality
      control recognize that quality begins before an application is taken and continues
      throughout the entire Mortgage origination process. The purpose of a quality
      control program is to monitor and evaluate the integrity of the origination
      process and to provide feedback to the organization about its originations.
      This feedback is used to adjust and improve production processes. Effective
      quality control programs are designed to monitor and evaluate the specific characteristics
      of the Seller’s organization and reflect: ■ The size and structure of the organization
      ■ The experience and expertise of the staff ■ The geographic areas of operation
      ■ The branch structure ■ The volume and types of Mortgages originated ■ The
      origination sources used (e.g., from Mortgage Brokers or Correspondents or via
      the internet) ■ Any significant changes in the product lines, origination sources
      or production process ■ Controls in place to ensure that internal policies and
      procedures are followed Freddie Mac Single-Family Seller/Servicer Guide Chapter
      3402 As of 05/06/26 Page 3402-2 Although no single specific quality control
      program can meet the needs of all Sellers, there are certain characteristics
      found in all effective quality control programs. The Seller’s quality control
      program must: ■ Be in writing ■ Provide for standard operating procedures for
      all employees who will be involved with or affected by the quality control process
      ■ Be capable of evaluating and monitoring the overall quality of Mortgage production
      on a regular and timely basis ■ Include both: • Preclosing quality control reviews,
      and • Post-closing quality control reviews ■ Include procedures to ensure timely:
      • Sample selection, • Mortgage file reviews, and • Reporting of findings to
      Senior Management The Seller may use any combination of preclosing or post-closing
      quality control reviews based on its specific operations and needs. The Seller’s
      post-closing in-house quality control program must operate independently of
      the Mortgage origination and underwriting departments. However, for Sellers
      with annual production of less than 5,000 Home Mortgages, the post-closing quality
      control function may be housed with the origination and underwriting departments.
      The Seller must also comply with the requirements of Section 3201.1(c) relating
      to fraud prevention and detection in its quality control program, as well as
      other applicable requirements of Chapter 3201 relating to fraud prevention,
      detection and reporting. A variety of reference guides, tools and technology
      resources designed to assist Seller/Servicers with their in-house quality control
      program can be found on Freddie Mac’s website at https://sf.freddiemac.com/working-with-us/selling-delivery/delivery-options-
      pricing/quality-control. (b) Use of third-party quality control services The
      Seller may use third-party quality control services for all or part of its quality
      control program. The Seller using third-party quality control services must:
      Freddie Mac Single-Family Seller/Servicer Guide Chapter 3402 As of 05/06/26
      Page 3402-3 ■ Ensure that the services performed by third-party quality control
      services comply with Freddie Mac’s requirements ■ Monitor and evaluate the performance
      of third-party quality control services on a regular basis The Seller must review
      third-party quality control findings and take the same corrective actions as
      it would with respect to quality control findings made by its own staff. (c)
      Transfers of Servicing The Seller’s post-closing quality control program must
      include policies and procedures addressing Transfers of Servicing. When Servicing
      is transferred, the Seller must: ■ Retain copies of the file documents to complete
      the quality control reviews, or ■ Make arrangements with the new Servicer to
      assist in the quality control reviews Records of completed quality control reviews
      must be provided to the new Servicer upon request.'
  judgment: false
