In case you missed it, Fannie Mae released its new list of Loan Defect Categories on August 27, 2013.
Says Fannie, “The list shows the loan defects, by categories, identified by Fannie Mae in post-purchase review of our acquisitions. These defects (which may be eligibility violations) are referenced in reporting to lenders on the quality of their deliveries.”
So if you are setting up or overhauling your standard post-closing audit checklist, this is a good generic template to begin with. It covers all of the essential categories of loan QC errors (or of loan quality, to put it another way). If you are using Cogent’s loan audit software, in which these are called audit question categories, all that’s missing is a category and question coding scheme. With that, your reporting possibilities are almost limitless, allowing you to report by defect category or sub-category, by individual audit question, and so on.
Thanks to Fannie for taking another step towards standardizing the scope of loan quality reviews.