FNMA QC Updates from SEL-2025-04
Fannie Mae's recent Selling Guide Announcement (SEL-2025-04), released on June 4, 2025, introduces significant updates to quality control (QC) requirements that will impact lender QC policies, internal review processes, and sampling methodologies. The updated announcement requires the following:
Separate QC reviews for lenders who originate or acquire loans from a third party. If this was less than 10 loans, one loan must be selected. Selected loans must represent the lender’s overall business including all of the different types of loans offered; loans originated by each branch office, manually underwritten loans, and loans that were processed through automated underwriting system(s) utilized by the lender.
Separate reviews are to be completed for lenders who originate or acquire loans from a third party for both retail and third-party originators; both require a stratified random sample (which must be identified on their QC policy).
Discretionary loan selections for TPO’s with elevated risks must be targeted in prefunding and post-closing reviews. SCA clients should inform us of what they want to target (i.e. income, employment etc.), and we will need to identify those loans during the QC review.
Corrective Action- the lender must have an established written action plan, and it must include content such as the root cause, responsible parties, as well as timeframes for completion.
Pre-Funding sample has been updated to allow lenders to use 10% of current month’s projected number of loans, but it now must include occupancy assessments as a file review requirement.
These updates underscore Fannie Mae's commitment to enhancing loan quality and risk management across the industry. SCA puts the utmost emphasis on loan quality and our QC software, ACES, keeps our reviews in line with these changes. We encourage you to review Announcement SEL-2025-04 in detail and reach out to SCA with any changes to your QC policies and procedures. Proactive engagement is key to a seamless transition and continued compliance. Contact our Director, Bill Dolan, at wdolan@scapartnering.com or by phone at (617) 694-2617 with any questions.
