Are both FHA approved lenders and their sponsored TPOs required by FHA to have a QC plan?

FHA approved lenders that sponsor third party originators (TPO) must have a Quality Control (QC) Plan that includes provisions for the quality control review of FHA insured loans originated through TPOs. FHA does not approve, or review for approval, sponsored third party originators. Thus, FHA does not require a QC plan for sponsored TPOs.

The lender may require a QC plan from its sponsored TPOs as part of its own risk management plan; however, it is not required by FHA.

ML 11-02
https://www.hud.gov/program_offices/administration/hudclips/letters/mortgagee

Handbook 4000.1 V.A.3.
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-03408