Many investors and agencies, such as the Federal Housing Administration (FHA), Fannie Mae, and Freddie Mac, require a written QC plan. Quality control is also an industry best practice, which helps you produce high quality loans and reduce risk of default.

See HUD Handbook, FHA Single Family Housing Handbook, Fannie Mae Single Family Selling Guide D1-1-02, Freddie Mac Single-Family Seller/Servicer Guide 48.1

The general rules to follow to comply with FHA, Fannie Mae, and Freddie Mac quality control guidelines are:

• Audit 10% of your pre-fund, closed, and cancelled/denied loan files.
• Complete the audit within 90 days of closing.
• Audit 100% of early payment default (EPD) files for FHA loans.

FHA also requires, as part of the overall QC audit, that a field appraisal review be completed on 10% of the audited closed loans (or 1% of a company’s closed FHA loans).

See HUD Handbook, FHA Single Family Housing Policy Handbook, Fannie Mae Single Family Selling Guide D1-3-02, Freddie Mac Single-Family Seller/Servicer Guide 48.4

• FHA, VA and USDA: Audit monthly.
• Fannie Mae: Audit monthly.
• Freddie Mac: As a best practice, audit monthly. Every loan must have a chance of selection for audit within 90 days of the Note Date, but there is no specified frequency.

See HUD SFH Handbook 4000.1 / U.S. Department of Housing and Urban Development, Fannie Mae Guide D1-3-02, Freddie Mac Guide 48.4

• HUD Handbooks
• Fannie Mae Single Family Selling Guide
• Freddie Mac Seller/Servicer Guide and Forms
• VA Handbook
• USDA HB-1-3555 SFHA Guaranteed Loan Program Technical Handbook

Each file being reviewed should include the following:

• Credit/Processing Package (with all initial disclosures and documents)
• Appraisal
• AU/Underwriting Package
• Closing Package (with all final documents, including Note, Deed, HUD’s, TIL, Right of Recession, etc.)

NOTE: For efficiency purposes, it is very important that complete file documentation is provided at submission. Partial submissions create rework for all parties involved in the QC process.

Yes, we can include a state-specific disclosure review in our post-close QC and pre-fund QC audits as requested under the Statement of Work.

The following reports are available in QLink (when applicable):

• Post-close
• Adverse
• Pre-fund
• Purchase review
• Appraisal review
• Early payment default
• Servicing

QLink also allows you to create custom QC reports based on the information that’s most important to your company. Upon logging into the platform, you will see a dashboard that provides at-a-glance insights into common findings and overall audit scores as well.

Implementation timelines vary by scope and regulatory environment, but MetaSource engagements are designed to minimize internal disruption. Many clients begin seeing stabilization and workload relief within the first few months through phased onboarding and targeted review coverage.

All compliance and quality control outsourcing services follow standardized review criteria, documented checkpoints, and layered quality assurance. This creates repeatable execution across reviewers, teams, and volumes, reducing variability that often leads to audit findings or rework.

Compliance software supports tracking and reporting. Compliance outsourcing ensures the work itself is executed consistently and accurately. MetaSource combines structured workflows, human review, and technology to drive real business outcomes.

Quality control audits may be performed in-house if you establish a unit solely for quality control. All QC staff members must be properly trained and cannot be involved in loan production.

However, many mortgage companies leverage third parties for mortgage QC auditing. By outsourcing audit services to a trusted partner who meets agency requirements, you can take advantage of a variable cost model by not having to maintain a duplicative resource that cannot be used in production. This helps you avoid overspending when volume is low and ensures that QC requirements are met when volumes are high.