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Frequently
Asked
Questions
About
POST CLOSING QUALITY CONTROL REVIEWS
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What is the purpose
of having post closing loan file reviews? |
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The post closing loan
file review is a quality control tool that helps to
assure the quality of the loan transaction. HUD-FHA,
VA, Fannie Mae, Freddie Mac and most other investors
require that all mortgage brokers/bankers with whom
they do business have quality control reviews
conducted of at least 10% of their closed loan files. |
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As a HUD-approved
mortgagee/Loan Correspondent, can I conduct my own
post closing loan file reviews? |
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In order for a post
closing review to be acceptable for measuring the
quality of the loan, most investors require that it be
conducted by someone who is knowledgeable about but is
NOT INVOLVED in the mortgage origination, processing
or underwriting phases of the loan. |
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Does HUD allow me
to contract out for my post closing loan file reviews?
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HUD allows approved
mortgagees/Loan Correspondents to contract out to
outside firms to conduct their post closing file
reviews (HUD Handbook 4060.1, REV-1, 6-1 E). The
approved mortgagee/Loan Correspondent is responsible
to ensure that the contractor complies with the HUD
quality control requirements in conducting the
reviews. |
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Doesn't the
sponsor's post closing reviews of loan files satisfy
any requirement that a Loan Correspondent has for
conducting the reviews? |
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NO!
HUD's position is that a sponsor's quality control
reviews of closed loan files satisfies the sponsor’s
requirement only and not the Loan
Correspondent. Refer to HUD Handbook 4060.1, REV-1,
6-1 D. |
