Short-Sale.com
Last reviewed 10-31-2026Short-Sale.com Editorialglossary

Defect

Fannie Mae

Updated 10-31-2026

Defect

A loan-level deficiency that breaches a term contained in the Lender Contract in effect at the time of loan purchase or securitization.

Fannie Mae Glossary of Terms

Fannie Mae · p. 11

Need help?

Ask more questions about Defect in Help. You'll get answers for your situation.

People also ask

Report an issue with this page

Domain alone is fine (we'll add https). Video must be a link — not an upload.

JPEG, PNG, or WebP only. Max 4 MB each.