FNMA Lender Letter LL 2012 07 Imparts Quality Control Processes

Investor Update: On October 19, Fannie Mae published Lender Letter LL-2012-07, which details the quality control and enforcement processes and practices that support the new representation and warranties framework.

Lender Letter Provides Additional Information Related to Quality Control Processes

Today, Fannie Mae published Lender Letter LL-2012-07 which expands on detail related to quality control and enforcement processes and practices that support the new representation and warranties framework.  This Lender Letter, which is issued at the direction of FHFA and in coordination with Freddie Mac, provides supplemental information on the following topics, identifying what is new and the effective date of each new provision:

  • Overview of Quality Control Principles
  • Quality Control Sample Process
  • Quality Control Review Practices
  • Enforcement Practices
  • Ongoing Communications
  • Preview of Change to Automatic Repurchase Trigger described in announcement SEL-2012-08
  • Clarification of Life of Loan Representations and Warranties Related to Misstatements, Misrepresentations, Omissions, and Data Inaccuracies described in announcement SEL-2012-08

Please review Lender Letter LL-2012-07 for details.

Investors may contact Fannie Mae's Fixed-Income Securities Marketing Help Line at 1-800-237-8627 with any questions.

To view the announcement, please click here.

About Safeguard
Safeguard Properties is the largest privately held field services company in the country. Located in Cleveland, Ohio and founded in 1990 by Robert Klein, Safeguard has grown from a regional preservation company with a few employees  and a handful of contractors performing services in the Midwest, to a national company with more than 1,600 employees. Safeguard is supported by a nationwide network of subcontractors able to perform any requested superintendence, preservation, and maintenance functions, as well as numerous ancillary services in the U.S., the Virgin Islands, and Puerto Rico.

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