The lender must adopt and implement a Quality Control (QC) Program that fully complies with the requirements of Handbook 4000.1 and, where applicable, the additional Multifamily QC requirements outlined in the Multifamily Accelerated Processing (MAP) Guide, 4430.G.
A QC Program is the process and written procedures through which the lender seeks to ensure that FHA operations and loan quality are in compliance with all applicable requirements. The lender must maintain and update its QC Program as needed to ensure it is fully compliant with all applicable FHA requirements at all times.
The QC Program must:
• cover the lifecycle of an FHA-insured mortgage, including origination, underwriting, closing, endorsement, and servicing functions that are conducted by the lender.
• cover all policies and procedures, whether performed by the lender or outsourced to a contractor, to ensure full compliance with FHA requirements for loan administration.
• provide the lender’s management with information sufficient to adequately monitor and oversee the lender’s compliance, and measure performance as it relates to the lender’s FHA mortgage activity.
For additional information see Handbook 4000.1 V.A.1. at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh