For what percent of originations must a sponsored TPO perform quality control reviews?

The sponsored third party originator (TPO) is not the entity responsible for performing QC on the FHA-insured loans originated. It is the responsibility of the FHA-approved lender (sponsor) to perform the QC, and to determine the appropriate sample size, and basis for sampling (size, number of units, etc).

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

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-03448