Failure to have an adequate prefunding QC process is no different than failing to have an adequate post-funding QC process.
Chapter D1-1, Lender Quality Control Process
Lender Quality Control Program
Lenders that fail to maintain an effective QC program will be in breach of their contractual obligations with Fannie Mae.
A2-3.1-01, Lender Breach of Contract
Fannie Mae may terminate the Lender Contract (in its entirety or its individual selling arrangement or servicing arrangement) with cause at any time and immediately, if the lender breaches any provisions of its Lender Contract.