Monday, September 27, 2010

Fannie: Launches EarlyCheck™ - Prior to Closing

EarlyCheck™ is a new web-based program that provides lenders with access to Fannie Mae Loan Quality Initiative (LQI) delivery data checks at any point in the lender's business process. The goal is to help lenders identify potential problems prior to loan delivery.

The initial offering of EarlyCheck has these access options:

  • Support for loans prior to closing: weekend of September 25, 2010, two new EarlyCheck access options were implemented.
  • An integration solution that can be directly integrated with a lender's LOS
  • A Web-based user interface
  • Support for loans in post-closing through the pre-delivery stage: effective with the July 26, 2010 Loan Delivery Release Notes, lenders access EarlyCheck data checks via the Loan Delivery system.

EarlyCheck has its own web page at that contains all the information needed to get started, including Registration, Release Notification, Additional Services, Resources, Training and Education, and Support.

The Early Check facility responds in real-time, and Fannie claims it offers loan-level results in a user-friendly report or data file. Findings contain messages that highlight the issues that need to be resolved (i.e., failed checks), the corresponding delivery severities, and key result data (including key calculated values and the standardized property address for the subject property).

For DU loans, the findings also show a comparison of the input loan data with the data used in the most recent DU submission, as well as key DU Underwriting Findings information.

There is also a new management reporting capability that assists lenders in monitoring usage of the EarlyCheck access options for loans prior to closing and help identify recurring potential eligibility and/or data quality issues that may need to be addressed.

We have been keeping you up to date on Fannie's LQI developments, guidelines, and requirements.

For more information and documentation, please visit eFannie's LQI web page.


Identify Potential Data Issues

  • Helps identify potential data issues early in the loan process, when they can be remedied more effectively through:
    • Fewer delivery stops and corresponding financial and operational impacts;
    • Less manual error resolution during the delivery process and post-purchase;
    • Reduced funding/pooling delays resulting from delivery issues.

Process Points Access

  • At any point in their processes prior to delivery:
    • Underwriting
    • Prior to loan closing
    • Prior to funding correspondent loans
    • During post-closing and secondary marketing process

Supports Various Underwriting Methodologies

  • Desktop Underwriter (DU)
  • Manually underwritten loans
  • Non-DU AUS loans.


  • DU Compare (comparison of input loan application data with the data used in the most recent DU submission)
  • SSN checks
  • Occupancy checks
  • Address checks
  • Unit number checks
  • DTI checks
  • Loan limit checks
  • Required delivery fields
  • Other basic eligibility and data integrity checks.

The initial release does not include:

  • Product eligibility checks (loan terms, mortgage insurance coverage, Etc.)
  • Customer contract and commitment pricing checks
  • Pooling rules

Access Options

  • Via the Loan Delivery system to support loans in the post-closing stage. Users can import a Fannie Mae 2000-character delivery file, run the checks, and view or download the results.
  • EarlyCheck access options to support loans prior to loan closing include:
    • An integration option that can be directly integrated with a lender's LOS via a DU-like integration solution (i.e., it takes a 1003 flat file or MISMO AUS 2.3.1 file as input and returns viewable results and/or a result data file).
    • A Web-based user interface that enables a user to import loan data in a 1003 flat file format (which can be exported from most loan origination systems) or the MISMO AUS 2.3.1 file format, run the checks, and view the results.

Visit Library for Issuance

Law Library Image

EarlyCheck™ FAQs, July 29, 2910
EarlyCheck™ Release Notification, July 29, 2010
Loan Delivery Release Notes, July 26, 2010


LENDERS COMPLIANCE GROUP is the first full-service, mortgage risk management firm in the country, specializing exclusively in mortgage compliance and offering a full suite of hands-on and automated services in residential mortgage banking.