FHA Single Family Housing Policy Handbook 4000.1, V. QUALITY CONTROL, OVERSIGHT, AND COMPLIANCE > A. QUALITY CONTROL OF LENDERS AND MORTGAGEES > 1. Quality Control Program Overview — a. Purpose of Quality Control Program
HUD effective date: 09/14/2015 · section V.A.1 · Handbook 4000.1
FHA Single Family Housing Policy Handbook 4000.1, Part V — a. Purpose of Quality Control Program (09/14/2015).
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Verbatim provisions from FHA Single Family Housing Policy Handbook 4000.1, V. QUALITY CONTROL, OVERSIGHT, AND COMPLIANCE > A. QUALITY CONTROL OF LENDERS AND MORTGAGEES > 1. Quality Control Program Overview — a. Purpose of Quality Control Program — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
FHA Single Family Housing Policy Handbook 4000.1, Part V — a. Purpose of Quality Control Program (09/14/2015)
a. Purpose of Quality Control Program (09/14/2015) Quality Control (QC) Programs must be designed to: • ensure compliance with FHA and Mortgagee policy and guidelines related to FHA Loan Administration; • protect FHA and the Mortgagee from unacceptable risk; • guard against errors, omissions, negligence, and fraud from those involved in the Mortgagee’s Loan Administration; • determine the root cause of any deficiencies and identify potential internal and external control weaknesses; • alert Mortgagee management to patterns of deficiencies with respect to mortgage process and personnel; • ensure timely and appropriate corrective action; • ensure the existence of required documentation (e.g., credit, loan, and appraisal information) that is the basis of underwriting and servicing decisions; • ensure Mortgages are secured by properties with values sufficient to support the Mortgage; and • ensure compliance with fair lending laws, including the Fair Housing Act and the Equal Credit Opportunity Act (ECOA).
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