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c. Standard (09/30/2016)
The Mortgagee must adopt and implement a QC Program that fully complies with the requirements of this Handbook 4000.1, and, where applicable, the additional Multifamily QC requirements outlined in the Multifamily Accelerated Processing (MAP) Guide, 4430.G. The Mortgagee must maintain and update its QC Program as needed to ensure it is fully compliant with all applicable FHA requirements at all times.
The QC Program must cover the lifecycle of an FHA-insured Mortgage, including origination, underwriting, closing, endorsement, and servicing functions that are conducted by the Mortgagee.
The QC Program must cover all policies and procedures, whether performed by the Mortgagee or outsourced to a contractor, to ensure full compliance with FHA requirements for Loan Administration.
The QC Program must provide the Mortgagee’s management with information sufficient to adequately monitor and oversee the Mortgagee’s compliance, and measure performance as it relates to the Mortgagee’s FHA mortgage activity.
i. Exception for Multifamily Mortgagees
The following QC Program requirements do not apply to Mortgagees with Originate Multifamily, Service Multifamily, or Service/Originate Multifamily only authority. For Mortgagees with Originate Single Family/Multifamily, Service Single Family/Multifamily, or Service/Originate Single Family/Multifamily authority, these QC Program requirements do not apply to its Multifamily operations.
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V. QUALITY CONTROL, OVERSIGHT, AND COMPLIANCE A. Quality Control of Lenders and Mortgagees
2. Institutional Quality Control Program Requirements
• V.A.2.b.iii(A) Denied Mortgage Applications
• V.A.2.b.iv Escrow Funds
• V.A.2.b.vi Timely and Accurate Submission for Insurance
• V.A.2.d.iv(F) Method of Reporting
• V.A.3.a.i Time Frame for Selection and Review
• V.A.3.a.iii Sample Size Standard
• V.A.3.a.iv Sample Composition Standard
• V.A.3.b Loan Sample Risk Assessment
• V.A.3.c Origination and Underwriting Loan File Compliance Review
• V.A.3.d Quality Control Reviews of Specialized Mortgage Programs
• V.A.3.e Servicing Loan File Compliance Review
• V.A.3.f.ii Servicing Reviews
• V.A.4 Data Integrity
• V.B Quality Control of Other Participants
• V.C.2.a Title I Lender Monitoring Reviews
• V.C.2.c Servicer Tier Ranking System II
• V.C.3 Loan Level Monitoring
• V.D Monitoring of Other Participants
• V.E.3 Program Office Actions and Sanctions
• V.E.5.e Specific Program Participants