Fannie Mae reduces lender requirements

Fannie Mae updated its Selling Guide to reduce lender quality control requirements.

Details: Fanne Mae said that in response to lender feedback, it updated Subpart D1 to streamline lender QC reverification requirements by:

• Removing asset reverification when the information is not confirmable.

• Eliminating duplicative reverifications for automated data obtained through approved vendors.

• Limiting tax transcript requirements to loans qualified with tax returns.

• Removing reverification for discretionary reviews.

• Reinstating flexibility in prefunding QC by eliminating the fixed 10% minimum sampling requirement.

• Removing certain operational reporting (including self-reporting and reverification reporting).

Timeline: Fannie Mae said lenders are encouraged to implement these changes immediately but must do so for all QC reviews conducted on or after July 1.