How does your bank gauge loan quality?
Abstract: The real estate and financial crisis highlights the need for lender quality control (QC) programs. Recognizing this risk, Fannie Mae recently beefed up its QC policies, and Freddie Mac may follow suit. Banks that sell loans to the secondary market are required to have a QC program. But even those that don’t should consider following Fannie Mae’s guidelines to help ensure the quality of their loans. This article looks at the new requirements.