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HUD-FHA Quality Control Plan for Lenders and Ginnie Mae Approval

The most critical factor in creating and managing a HUD/FHA Quality Control Plan - aside from making sure it captures all of the requirements and allows you to create and relate to a defect taxonomy - is understanding who will review it.

This said, the most frequent finding in an FHA sanction remains lenders who do not maintain an acceptable quality control plan. 

Stage 1 - Mortgagee Approval

Although this stage your quality control plan won't be thoroughly tested. This means that, while important, this review tends to focus on more cursory elements; checking to make sure the top elements are simply addressed. Whether it actually works or not as a functional plan remains for the annual review to determine. 

Stage 2- Annual Review

Annual reviews and certifications involves mortgagees submitting financial reporting, but these also focus on the independent review of your documentation by a CPA. While CPAs do not necessarily possess skills that a well versed lender would, relating to the mortgage process and the requirements of complete loan files without defects, they do have a detailed checklist (See AHCPA Quality Control Plan Checklist) which they use to determine whether the lender does, in fact, maintain a Quality Control Plan that meets FHA/HUD/Ginnie Mae Guidelines. )

This review, while extensive, isn't necessarily substantive as to whether your plan actually identifies and prevents loan defects in your delivery of FHA insured mortgages. In addition, your response to the examination isn't reviewed or criticized by HUD.

Stage 3 - HUD Audit/FHA Review

You may have a high compare ratio, loans with multiple defects, or you may simply be a convenient target. While some lenders never get audited, FHA intends to audit a sampling of mortgagees every year.  This is the review that results in suspension of your ability to originate FHA/HUD loans if it reveals substantial or even technical deficiencies. It often focuses on the Quality Control Plan, and if your plan has remained static since your mortgagee approval, you may be disappointed to note that it doesn't meet the auditor's standards. 

We interact with our lender clients and learn whether, during a review, our plans or their procedures get criticized. We help address issues and then use that information to make refinements to our plans. This is why we can guarantee our plans meet guidelines; our clients have used them and passed their exams with flying colors!
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  • Home
    • Search our site
    • The CFPB and You
    • What Does a QC Plan Do?
    • Choosing the Right One
    • Free Sample Request Form
    • Request Discount Code
    • About Us >
      • About Us
      • FAQs
      • 100% Guarantee
      • Client List
    • Industry Blog
  • Single Policies
    • Single Policies
    • Free Sample Policies >
      • TIL-RESPA Integrated Disclosure (TRID)
      • HPML Appraisal Policy
      • Social Media
      • Ability to Repay
      • SAFE Act Policy
      • E-Sign Policy
      • Loan Originator Comp
      • Complaint Resolution
    • Disaster Recovery/Business Continuity Plan
    • Fair Lending/Fair Housing
    • Secondary Marketing-Loss Mitigation
    • Anti-Money Laundering (AML/BSA/SAR) Plan
    • Appraiser Independence - Appraisal Management
    • Anti-Predatory Lending (UDAAP)
    • Vendor Management
    • Business Plan
    • MERS QA Plan
  • Modules
    • Module System
    • Mortgage Compliance Manual
    • Quality Control Options >
      • Quality Control Options
      • Lender Quality Control Plan >
        • HUD-FHA Quality Control Plan
      • Broker/Non-Del QC Plan
    • Information Security - FACTA/Red Flags & ID Theft >
      • IT/Cyber Audit
    • Origination/Production Module
    • Processing Module
    • Underwriting/Credit Policy
    • Closing/Funding/Warehouse
    • Mortgage Ops & Employee
    • Wholesale/Third Party Origination
    • Mortgage Servicing Module >
      • Mortgage Servicing
      • Mortgage Sub-Servicing
      • MERS Quality Assurance (QA)
  • Packages
    • Packages
    • Complete Mortgage Banker Package
    • Complete Correspondent Pack
    • Lender Compliance Pack
    • Broker-Non Del Compliance Pack
    • Processing Company Package
    • Anti-money laundering AML/BSA/SAR package >
      • Annual AML/BSA Audit
      • Annual AML Training
      • Free AML/BSA SAR Evaluation
    • Cyber/IT Security Audit Package
    • Advertising Audit Package
  • Services
    • Services
    • State Audit Prep >
      • State Audit Prep Package >
        • Pennsylvania Exam Preparation
        • Washington State Mortgage Lender Broker
        • New York Lender Broker Audit Prep
        • North Carolina Lender Broker
        • Ohio Mortgage Lender Broker
        • Texas Exam Preparation
      • Annual Audit Preparation
      • State Examination System (SES) Support
      • State Examination Packages >
        • Supervisory Plan
    • Training Services >
      • AML Training
      • Fair Lending Training
      • ID Theft Training FACTA
      • Cybersecurity Training GLB Safeguarding
      • Fraud Red Flag and QC Training
      • Privacy Act - GLB Training
      • Advertising Compliance Training
      • New Employee Training
    • Knowledge Base-FAQ
    • My Compliance VP - Manager >
      • My Compliance VP - Manager
      • Login Compliance Manager
      • Login Document Managment
      • Manage Subscription
    • Updates and Downloads >
      • Updates and Downloads
      • Updates and Downloads (members)
    • Warehouse Lender/Agency Approval >
      • Comergence Upload Service
    • Request Review
    • How to: Customization Services >
      • Customization Services
      • How to: Downloading Documents
      • How to: Customize Your Manual
      • Free "Generic" Customization Offer