source:
  type: guide
  id: fnma-sel-a3-3-01
  authority: Fannie Mae Selling Guide A3-3-01 — Outsourcing of Mortgage Processing
    and Third-Party Originations
  description: Fannie Mae Selling Guide A3-3-01 — Outsourcing of Mortgage Processing
    and Third-Party Originations.
  coverage_tier: operative
obligations:
- id: fnma-sel-a3-3-01-full
  canonical_id: fnma-sel-a3-3-01-full
  section: Fannie Mae Selling Guide A3-3-01 — Outsourcing of Mortgage Processing and
    Third-Party Originations
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Selling Guide A3-3-01 — Outsourcing of Mortgage Processing
      and Third-Party Originations
    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: 'A3-3-01, Outsourcing of Mortgage Processing and Third-Party
      Originations (02/07/2024) Introduction This topic contains information on the
      outsourcing of mortgage originations to third parties, including: Third-Party
      Originations Management Procedures for Third-Party Originations Third-Party
      Originations A third-party origination is any loan that is completely or partially
      originated, processed, underwritten, packaged, funded, or closed by an entity
      other than the seller (or its parent company, controlled aﬃliate or subsidiary)
      that sells the loan to Fannie Mae. This includes mortgage brokers or correspondents,
      which are known as third-party originators. If a seller enters into a contract
      with a third party known for the quality of its underwriting (such as a mortgage
      insurer) to help the seller in underwriting its mortgage originations, the loans
      will not be considered third-party originations. Refer to Chapter E-3, Glossary
      for the deﬁnition of correspondent and broker. (Retail is also an origination
      type but is not considered a third-party origination.) Sellers remain fully
      responsible to Fannie Mae for functions that are outsourced to third parties.
      Certain Special Feature Codes (see Special Feature Codes) are required at delivery
      for third-party originations. A seller must have eﬀective written policies and
      procedures for the approval and management of third-party originations and must
      satisfy itself that the third-party originator is capable of producing quality
      loans. Management Procedures for Third-Party Originations Eﬀective management
      procedures for third-party originations include the items in the table below.
      Published May 6, 2026 106 ✓ Management Procedures for Third-Party Originations
      A system for evaluating and approving third-party originators to ensure that
      they produce quality loans. The seller’s procedures must include a review of
      the following: • most recent ﬁnancial statements; • current licenses; • resumes
      or other appropriate information of principal oﬃcers managing the underwriting
      and originating process; • the third party’s QC procedures so that the seller
      can determine if the party and its originations meet the seller’s standards
      for quality; • results of background checks for principal oﬃcers; and • the
      third-party originator’s hiring procedure for checking all employees involved
      in the origination of loans (including application through closing) against:
      ⚬ the U.S. General Services Administration Excluded Parties List, ⚬ the HUD
      Limited Denial of Participation List, and ⚬ the Federal Housing Finance Agency
      Suspended Counterparty Program List. A method for verifying, and periodically
      reverifying, a third-party originator’s compliance with applicable laws, licensing,
      and qualiﬁcations for originating loans. A method for conﬁrming that a third-party
      originator meets its contract with the seller and the seller’s Lender Contract
      with Fannie Mae. A requirement that a third-party originator have a written
      QC plan and a method to validate the existence of that plan. A process for resolving
      QC discrepancies and tracking corrective actions. A requirement for submitting
      periodic reports on activity and performance issues to the seller’s senior management.
      Standards for evaluating a third-party originator’s performance. Provisions
      for suspending or terminating the third-party originator’s relationship. Annual
      review of the third-party originator’s ﬁnancial statements to determine that
      it is ﬁnancially viable and capable of meeting its obligations. Quarterly review
      of the performance of loans originated by the third-party originator. Published
      May 6, 2026 107 Recent Related Announcements The table below provides references
      to recently issued Announcements that are related to this topic. Announcements
      Issue Date Announcement SEL-2024-01 February 07, 2024'
  judgment: false
