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HUD's 37 Point
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  Frequently Asked Questions About

POST CLOSING QUALITY CONTROL REVIEWS

 

What is the purpose of having post closing loan file reviews?
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.
   
As a HUD-approved mortgagee/Loan Correspondent, can I conduct my own post closing loan file reviews?
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.
   
  Does HUD allow me to contract out for my post closing loan file reviews?
  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.
     
  Doesn't the sponsor's post closing reviews of loan files satisfy any requirement that a Loan Correspondent has for conducting the reviews?
  NO! HUD's position is that a sponsor's quality control reviews of closed loan files satisfies the sponsorís requirement only and not the Loan Correspondent. Refer to HUD Handbook 4060.1, REV-1, 6-1 D.
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Callender Mortgage Services provides Pre-Closing and Post Closing Quality Control Audits of Mortgage loans to insure compliance with HUD/FHA, VA, Fannie Mae, Freddie Mac lending regulations.