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Question: What are some tips mortgage lenders may use to strengthen their Quality Control (QC) process?

Answer:

Reinforcing QC helps mortgage lenders avoid potential issues and protects against potential indemnification and repurchase demands. Fannie Mae’s Quality Insider webpage provides valuable resources and useful tips to strengthen QC.

In the December 2025 Quality Insider publication, Controlling Collateral Defects, Fannie Mae highlighted the following most common collateral-related issues:

• Ineligible property – safety, soundness and structural integrity.
• Subject Physical Features Reported Inaccurately – Condition/Quality of Construction (property condition and quality ratings).

Fannie Mae also highlighted best practices and risk controls to prevent or mitigate these issues and strengthen the appraisal review process. Risk controls included, but were not limited to, (i) verifying the appraiser’s work to identify any blatant mistakes, (ii) reviewing appraisal notes for structural concerns, such as infestations, dampness, or settlement issues, and (iii) inspecting photos closely, particularly of exterior shots and basements.

MQMR encourages all mortgage lenders to review Fannie Mae’s Quality Insider webpage for useful QC resources. The archived Quality Insider publications on the webpage address various QC items including, but not limited to, repurchase and top defect trends and self-reporting information. The webpage also includes helpful links to training resources and income calculators.