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a. Title I Lender Monitoring Reviews (05/09/2022)
i. Notice
Title I Lenders are given notice prior to FHA monitoring reviews.
ii. Production of Case Binders and Records
Title I Lenders must have the files requested by FHA available for review. The Title I Lender must provide all records related to the Loans selected for review, including any and all files, whether hard copy or stored, in the Title I Lender’s systems that include data or information on the specific Loans identified.
iii. Scope
FHA will, in its sole discretion, determine the scope of any monitoring review. FHA may conduct limited reviews of a Title I Lender’s origination, underwriting, and servicing of FHA-insured Loans, or more comprehensive reviews that include not just the Title I Lender’s files, records, and practices, but also the Title I Lender’s overall operations and policies with respect to Lender relationships, QC and risk management, escrow administration, wholesale Loans, and certain FHA product lines.
iv. Findings
At the conclusion of a monitoring review, FHA will discuss Findings with the Title I Lender. FHA will provide the Title I Lender with notification of identified Findings, if any, and specify the remedies and responses that are required.