Quality Control Component-Based Reviews FAQ
This information is not a replacement or substitute for the requirements in the Freddie Mac Single-Family Seller/Servicer Guide and other Purchase Documents.
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What are quality control (QC) component-based reviews (CBRs)?
CBRs are QC reviews that focus on a specific loan component.
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Why is Freddie Mac instituting CBRs as part of quality control?
CBRs allow Freddie Mac to review more loans over a shorter period of time, with additional focus on a specific area of risk.
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What components will Freddie Mac review in the CBRs?
Initially, the CBRs will focus on employed and self-employed income and employment and collateral. However, there is an expectation that they will expand to additional components (such as assets, credit and eligibility) in the future.
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How many additional loans will undergo CBRs?
We have yet to determine which loans and how many loans will be sampled for CBR. We expect to transition some of our current target samples from full reviews to CBRs.
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Can loans that were impacted by COVID-19 requirements and temporary flexibilities, including forbearance, be selected for CBR?
Yes. CBR samples may include these loans.
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How do I know if a loan is selected for CBR and do I need to submit the full loan file or just the information pertaining to the component that is being reviewed?
When a loan is selected for CBR, it will be identified by sample reason and just like with our full QC review process, the full file loan must be submitted.
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Why is Freddie Mac requiring a full loan file when only one component is being reviewed?
We are requesting a full file so clients can continue to use the same QC loan submission process that’s already in place for both Freddie Mac and Fannie Mae. This is intended to help alleviate the time and cost associated with operationalizing and implementing a new process.
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Does CBR provide additional rep and warranty relief for the component that is being reviewed?
No. Successful acceptance of a CBR does not provide additional rep and warranty relief for the component being reviewed. The Selling Representation and Warranty Framework allows for such relief only on completion of an acceptable full file QC review.
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May loans that are selected for CBR be selected for full QC review (resampled) at a later date?
Yes. Loans that are selected for CBR may still be resampled at a later date, depending on loan performance and other criteria. However, if a loan that is selected for CBR is later resampled for any reason other than fraud, the criteria reviewed in the CBR (for example, employed and self-employed income and employment) will not be reviewed again.
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Will the results of CBRs impact my performing loan (PL) not acceptable quality (NAQ) rate?
No. The random PL base sample determines the PL NAQ rate.
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Will Freddie Mac follow the current missing document process or will a repurchase be issued if the component documentation is missing?
We will continue to follow our missing document process to give lenders a second chance to provide any documents critical to the component that is under review.
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Will Quality Control Advisor® reflect CBRs?
Yes. CBRs are available in the loan file management, remedy management and management reporting modules in Quality Control Advisor. Lenders can upload loan files, missing documents, and appeals, as well as address repurchase requests just as they do for a full review. They can locate CBRs by selecting “Component” on the Sample Type filter.