The concept of zero-defects is challenging to achieve,
and even Fannie Mae does not evaluate lenders by a
zero-defect-rate standard. Instead, Fannie Mae expects
lenders to set defect rate targets as reasonably low
as possible based on formal cost-benefit analysis and
demonstrate to Fannie Mae how they are managing loan
quality to meet their established target. But with the rise
of technology companies helping mortgage originators,
lenders can get one step closer to that zero-defect loan
without compromising time or profits.
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