Does FHA require sponsored Third-Party Originators (TPO) to have a Quality Control program?

Unless an FHA-approved Mortgagee is acting as a sponsored Third-Party Originator (TPO), FHA does not require sponsored TPOs to have a Quality Control program. It is the responsibility of the FHA-approved Mortgagee (acting as the sponsor) to perform QC reviews of sponsored TPO Mortgages as part of its 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-02816