FHA Single Family Housing Policy Handbook 4000.1, Part V — b. Loan Sample Risk Assessment (09/14/2015)

FHA Single Family Housing Policy Handbook 4000.1, Part V — b. Loan Sample Risk Assessment (09/14/2015)

b. Loan Sample Risk Assessment (09/14/2015) i. Definition A Loan Sample Risk Assessment is a method of evaluating loans selected for QC on the basis of the severity of the violations found during QC reviews. ii. Standard Mortgagees must establish a Loan Sample Risk Assessment methodology. At a minimum, the methodology must include the categories of risk described below. The Mortgagee must compare one month’s QC sample to previous QC samples in order to conduct trend analysis. V. QUALITY CONTROL, OVERSIGHT, AND COMPLIANCE A. Quality Control of Lenders and Mortgagees 3. Loan Level Quality Control Program Requirements Handbook 4000.1 1708 Last Revised: 11/26/2025 iii. Risk Categories (A) Low Risk No issues or minor variances were identified with the origination, underwriting, or servicing of the Mortgage. (B) Moderate Risk The records contained unresolved questions or missing documentation. Issues were identified pertaining to processing, documentation, or decisions made during Loan Administration, but none were material. Failure to resolve these issues created a moderate risk to the Mortgagee and to FHA. (C) Material Risk The issues identified during the review contained Material Findings which represent an unacceptable level of risk. iv. Required Documentation The Mortgagee must document the methodology used to establish the loan sample risk assessment system and conduct trend analysis.

Source: FHA Single Family Housing Policy Handbook 4000.1, Part V — b. Loan Sample Risk Assessment (09/14/2015) · source URL · snapshot 8c03836f77f317e1