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e. Servicing Loan File Compliance Review (05/09/2022)
i. Minimum Requirements
Mortgagees must review all aspects of their servicing operations, including a review of subserviced Mortgages and activities as they relate to FHA-insured Mortgages, to guarantee that all FHA servicing and loss mitigation requirements are being met. At a minimum, Mortgagees must include the following elements in their QC review to ensure they meet the requirements outlined in the Servicing and Loss Mitigation and Claims and Disposition:
Title I Review Servicing Records ✓ ✓ Document Retention and Legibility ✓ ✓ Nondiscrimination Policies ✓ ✓
Requirement Title II Review
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V. QUALITY CONTROL, OVERSIGHT, AND COMPLIANCE A. Quality Control of Lenders and Mortgagees
3. Loan Level Quality Control Program Requirements
Title I Review Borrower Requests, Compliance and Escalated Cases ✓ ✓ Fees ✓ ✓ Transfer of Servicing Notification and Records ✓ ✓ Documentation of Purchased or Acquired Mortgages ✓ ✓ Mortgage Record Changes ✓ ✓ Escrow Account Functions ✓ ✓ Force-placed Insurance ✓ ✓ Prepayments ✓ ✓ MIP ✓ ✓ Early Default Intervention ✓ ✓ Loss Mitigation ✓ ✓ Collection Activities ✓ ✓ Reporting to Credit Repositories ✓ ✓ Home Retention Option Priority Order (Waterfall) ✓ Home Disposition Options ✓ Claims for Insurance Benefits ✓ ✓ Claims Without Conveyance of Title (CWCOT) ✓ Foreclosure Proceedings ✓ ✓ Property Preservation and Conveyance ✓ ✓ Deficiency Judgments ✓ ✓ Single Family Default Monitoring System (SFDMS) Reporting ✓ Adjustable Rate Mortgages (ARM) ✓ Assumptions ✓ ✓ Presidentially-Declared Major Disaster Areas (PDMDA) ✓ Hawaiian Home Land Mortgages (Section 247 Mortgages) ✓ Section 184 Indian Housing Loans ✓ Section 222 Mortgages ✓ Good Neighbor Next Door ✓ Servicemembers Civil Relief Act (SCRA) ✓ Section 235 Mortgages ✓ Section 203(k) Mortgages ✓ Servicing of HECM ✓
Requirement Title II Review