Can lenders obtain certification from the TPO that QC was performed for the TPO's FHA-insured loans?

No, this will not satisfy the sponsored third party originator (TPO) quality control (QC) requirement for FHA approved lenders. The lender is responsible for:
• performing QC reviews of its sponsored TPO’s FHA-insured loans, 
• documenting the methodology used to review the loans (including sample selection criteria and who performed the reviews), 
• the results of each review, and 
• any corrective actions taken as a result of review findings 

For additional information see:
Mortgagee Letter 2011-02 at: https://www.hud.gov/program_offices/administration/hudclips/letters/mortgagee
Handbook 4000.1, Section V.A.2.b.ii available 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-03400