D1-1-03, Lender Quality Control Reporting (04/01/2026)

Although Fannie Mae does not specify an exact format for reports, the lender must design reports that are useful to management for evaluating and monitoring the quality of the lender's loan production.

The lender must provide Fannie Mae with a copy of its QC reports upon request.

At a minimum, the lender's reporting must:

• be in writing and shared with management monthly;
• summarize results into a comprehensive, summary report of all QC findings;
• communicate defects to responsible parties (that is, lender departments or business units); and
• use consistent methodology and terminology, including defect categories and severity levels.

Prefunding reports must, at a minimum, include:

• the date the report was published;
• a description of each sample selection, including the sample criteria, number of loans reviewed, and percentage of total eligible loans reviewed;
• summaries of the results of all random, discretionary, and component reviews;
• summaries of monthly third-party originations, including random, discretionary, and component reviews, if applicable;
• defect trending for at least three months; and
• shared with management within 30 days of completion.

Post-closing reports must, at a minimum, include:

• the date the report was published;
• a description of each sample selection, including the sampling criteria, number of loans reviewed, and percentage of total eligible loans reviewed;
• summaries of the results of all random, discretionary, and component reviews;
• summaries of monthly third-party originations, including random, discretionary, and component reviews, if applicable;
• defect trending for at least three months; and
• data for the highest severity classification defect rate, benchmarked against its defined target rate, at least quarterly, as described in D1-1-01, Lender Quality Control Programs, Plans, and ProcessesD1-1-01, Lender Quality Control Programs, Plans, and Processes.

In addition, post-closing reports must

• distinguish between defects related to compliance with applicable law and underwriting and eligibility defects, and
• include the final results of the 10% QC vendor review described in D1-1-02, Lender Quality Control Staffing and Outsourcing of the Quality Control ProcessD1-1-02, Lender Quality Control Staffing and Outsourcing of the Quality Control Process, if applicable.