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HUD's 37
Point Quality Control
Plan
Checklist
QUALITY CONTROL
PLAN CHECKLIST-LOAN ORIGINATION
(Reference: HUD Handbook 4060.1 REV-1 Chapter 6)
Does your Quality Control Plan Measure Up?
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Yes |
No |
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1. |
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the Mortgagee maintains
compliance with HUD/FHA requirements? (6-1) |
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2. |
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personnel conducting the QC
reviews have no direct loan processing or underwriting
responsibilities? (6-1A) |
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3. |
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periodic reports which identify
deficiencies are provided to senior management at least
quarterly? (6-1A & 6-1G) |
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4. |
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procedures are revised to reflect
changes in FHA requirements; personnel are informed of the
changes, employees are accountable for performance failures or
errors? (6-1B3) |
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5. |
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prompt, effective corrective
measures are taken by senior management and documented when
deficiencies are identified? (6-1B4 & 6-1G) |
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6. |
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procedures exist for expanding
scope of the QC review when fraud/patterns of deficiencies
exist? (6-1B5 & 6-1D4) |
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7. |
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the Mortgagee reviews EITHER 1)
10% of all loans closed on a monthly basis; OR 2) a random
sample that provides 95% confidence level with 2% precision?
-the selection includes loans from all branches; -from all
authorized agents, loans correspondents; -from all loan
officers, underwriters, appraisers? (6-1C1) |
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8. |
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loans which go into default
within the first 6 months are reviewed? (6-1D3) |
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9. |
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SPONSORS OF LOAN CORRESPONDENTS
MUST: perform QC reviews on loan purchased from their
correspondents (the LC MUST have it's own QC plan) (6-1D5) |
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10 |
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an on-site branch office review
is completed at least once a year? (6-1D3) |
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11. |
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a review of alternative document
loans is completed? (6-1D6) |
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12. |
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reporting to HUD (or appropriate
Fed. Agency) under HMDA? (6-1D8) |
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13. |
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the Mortgagee reports any
violation of law or regulation, area office or OIG? (6-1H) |
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14. |
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loans are processed by its
employees or Authorized agents? (6-2B) |
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15. |
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MIP's are remitted within 15 days
from closing? (6-2C) |
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16. |
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no one is employed who is
debarred, suspended or subject to an LDP or otherwise
restricted? (6-2G) |
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17. |
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the mortgagee is in compliance
with RESPA? (6-2H) |
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18. |
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records of QC findings and
actions taken are maintained? (6-2 & 6-1F) |
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19. |
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the reviews will be performed
within 90 days of loan closing? (6-3A) |
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20. |
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a minimum of 10% of all rejected
loans are reviewed and that senior staff concurred w/the
rejection? (6-3B) |
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21. |
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a desk review of appraisals on
ALL loans in the QC sampling is completed (6-3C); if there is
a STAFF appraiser, a 10% field review must also be done?
(6-3C) |
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22. |
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a new credit report (using a
3-repository in-file report) is obtained with a full RMCR on
at least 10% of all OC loans? (6-3D) |
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23. |
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that a written reverification of
the mortgagor's employment, deposits, gift letter or other
source of funds is completed? (6-3E) |
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24. |
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a face-to-face interview was
performed with the mortgagor PRIOR to signing the HUD 92900
(unless otherwise exempt-i.e. in refinances)? (6-5B)
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25. |
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if relevant documents were signed
in blank by the mortgagor or employee of lender that all
corrections were initialed by mortgagor/employee? ((6-5C) |
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26. |
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if more than 1 credit report was
ordered, then all are to submitted with the package to HUD?
(6-5E) |
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that the preliminary loan
application lists each outstanding debt and asset and was used
to qualify the mortgagor? (6-5F) |
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28. |
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any outstanding judgements on the
Credit Report was on the HUD 92900 with an explanation? (6-5G)
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29. |
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the file has documentation on
source of funds and if other than deposits, the source is
verified? (6-5I) |
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30. |
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if mortgagor is self-employed the
file has a financial statement and business credit report?
(6-5I) |
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31. |
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if there is a gift letter, it has
the relationship of donor and no repayment and funds are
deposited into mortgagor's account? (6-5J) |
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32. |
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the HUD-1 is accurate and
certified? (6-5K) |
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33. |
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the loan was current when
submitted for endorsement? (6-5L) |
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34. |
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it determines whether the
mortgagor transferred the property possibly a "strawbuyer"?
(6-5M) |
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35. |
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all conflicting information is
resolved prior to submission to HUD? (6-5O) |
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36. |
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there was accurate and complete
underwriting? (6-5Q) |
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37. |
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the mortgagee is monitoring and
supervising overage activities to prevent illegal
discrimination or tiered pricing violations? (ML-94-43) |
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Any No
response indicates a deficiency in your Quality Control Plan.
PLEASE PRINT THIS CHECKLIST FOR YOUR USE
click here for
printable checklist |
