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HUD's 37 Point
Quality Control
 Plan Checklist

 

 

 

 

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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?

 

  Yes No  
1. the Mortgagee maintains compliance with HUD/FHA requirements? (6-1)
2. personnel conducting the QC reviews have no direct loan processing or underwriting responsibilities? (6-1A)
3. periodic reports which identify deficiencies are provided to senior management at least quarterly? (6-1A & 6-1G)
4. 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)
5. prompt, effective corrective measures are taken by senior management and documented when deficiencies are identified? (6-1B4 & 6-1G)
6. procedures exist for expanding scope of the QC review when fraud/patterns of deficiencies exist? (6-1B5 & 6-1D4)
7. 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)
8. loans which go into default within the first 6 months are reviewed? (6-1D3)
9. 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)
10 an on-site branch office review is completed at least once a year? (6-1D3)
11. a review of alternative document loans is completed? (6-1D6)
12. reporting to HUD (or appropriate Fed. Agency) under HMDA? (6-1D8)
13. the Mortgagee reports any violation of law or regulation, area office or OIG? (6-1H)
14. loans are processed by its employees or Authorized agents? (6-2B)
15. MIP's are remitted within 15 days from closing? (6-2C)
16. no one is employed who is debarred, suspended or subject to an LDP or otherwise restricted? (6-2G)
17. the mortgagee is in compliance with RESPA? (6-2H)
18. records of QC findings and actions taken are maintained? (6-2 & 6-1F)
19. the reviews will be performed within 90 days of loan closing? (6-3A)
20. a minimum of 10% of all rejected loans are reviewed and that senior staff concurred w/the rejection? (6-3B)
21. 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)
22. 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)
23. that a written reverification of the mortgagor's employment, deposits, gift letter or other source of funds is completed? (6-3E)
24. 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)
25. if relevant documents were signed in blank by the mortgagor or employee of lender that all corrections were initialed by mortgagor/employee? ((6-5C)
26. if more than 1 credit report was ordered, then all are to submitted with the package to HUD? (6-5E)
27 that the preliminary loan application lists each outstanding debt and asset and was used to qualify the mortgagor? (6-5F)
28. any outstanding judgements on the Credit Report was on the HUD 92900 with an explanation? (6-5G)
29. the file has documentation on source of funds and if other than deposits, the source is verified? (6-5I)
30. if mortgagor is self-employed the file has a financial statement and business credit report? (6-5I)
31. 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)
32. the HUD-1 is accurate and certified? (6-5K)
33. the loan was current when submitted for endorsement? (6-5L)
34. it determines whether the mortgagor transferred the property possibly a "strawbuyer"? (6-5M)
35. all conflicting information is resolved prior to submission to HUD? (6-5O)
36. there was accurate and complete underwriting? (6-5Q)
37. the mortgagee is monitoring and supervising overage activities to prevent illegal discrimination or tiered pricing violations? (ML-94-43)
Any No response indicates a deficiency in your Quality Control Plan.

PLEASE PRINT THIS CHECKLIST FOR YOUR USE

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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.