Quality Control Component-Based Reviews FAQ

CBRs are QC reviews that focus on a specific loan component.

CBRs allow Freddie Mac to review more loans over a shorter period of time, with additional focus on a specific area of risk.

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.

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.

Yes. CBR samples may include these loans.

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.

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.

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.

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.

No. The random PL base sample determines the PL NAQ rate.

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.

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.