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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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V. QUALITY CONTROL, OVERSIGHT, AND COMPLIANCE A. Quality Control of Lenders and Mortgagees
1. Quality Control Program Overview