FHA Single Family Housing Policy Handbook 4000.1, Part V — a. Who May Perform Quality Control (03/14/2016)
FHA Single Family Housing Policy Handbook 4000.1, Part V — a. Who May Perform Quality Control (03/14/2016).
Verbatim regulatory text
Verbatim provisions from FHA Single Family Housing Policy Handbook 4000.1, Part V — a. Who May Perform Quality Control (03/14/2016) — 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. Who May Perform Quality Control (03/14/2016)
a. Who May Perform Quality Control (03/14/2016) The Mortgagee may use employees or contractors to perform QC functions in accordance with the following requirements. i. Employees The Mortgagee must ensure that employees who perform QC Program functions are, at all times, independent of all Loan Administration processes and do not directly participate in any of the Loan Administration processes represented in the QC Plan. The Mortgagee must ensure QC employees are not within any chain of reporting or management that is directly connected to Loan Administration staff. ii. Contractors The Mortgagee may contract with outside vendors to perform QC functions if: • the Mortgagee assumes full responsibility for the contractor’s conduct of QC reviews in compliance with FHA requirements; • the Mortgagee and the contractor have a valid contractual agreement in place that specifies the roles and responsibilities of each party; and • the Mortgagee acknowledges that the existence of such contract for the provision of QC services does not satisfy the Mortgagee’s obligation to have a written QC Plan that fully complies with FHA requirements. The Mortgagee must ensure that contractor employees who perform QC Program functions on behalf of the Mortgagee do not participate in any of the Loan Administration processes represented in the QC Plan.