What are FHA’s Quality Control requirements for FHA-approved Mortgagees that sponsor Third-Party Originators (TPO)?

The procedures used by a Mortgagee to review and monitor sponsored Third-Party Originators (TPOs) must, at a minimum, include the requirements outlined in the Institution Quality Control Program Requirements and the Loan Level Quality Control Program Requirements sections of the Handbook 4000.1; and must also be reflected in the Mortgagee’s Quality Control Plan. 
For additional information see Handbook 4000.1 V.A at: https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.

Topic Number: KA-02448