source:
  type: regulation
  id: hud-4000-1-v-a
  authority: HUD Handbook 4000.1 V.A — Quality Control of Lenders and Mortgagees
  description: 'HUD Single-Family Housing Policy Handbook 4000.1, Section V.A.

    See obligation entries for operative requirements and verbatim

    primary-source citations.

    '
obligations:
- id: hud-4000-1-v-a-full
  canonical_id: hud-4000-1-v-a-full
  section: HUD Handbook 4000.1 V.A
  description: "Standard: c. Standard (09/30/2016) \nThe Mortgagee must adopt and implement a QC Program\
    \ that fully complies with the \nrequirements of this Handbook 4000.1, and, where applicable, the\
    \ additional Multifamily QC \nrequirements outlined in the Multifamily Accelerated Processing (MAP)\
    \ Guide, 4430.G. The \nMortgagee …"
  type: do
  tags:
  - regulator-direct
  - section-complete
  - hud
  - 4000-1
  - curated
  primary_source:
    tier: 1
    authority: HUD Handbook 4000.1 V.A.1.c — Standard
    source_class: hud-handbook-4000-1
    source_url: https://www.hud.gov/hud-partners/single-family-handbook-4000-1
    snapshot_id: 8c03836f77f317e1
    fetched_at: '2026-05-23T00:28:40Z'
    content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
    paragraph_quote: "c. Standard (09/30/2016) \nThe Mortgagee must adopt and implement a QC Program that\
      \ fully complies with the \nrequirements of this Handbook 4000.1, and, where applicable, the additional\
      \ Multifamily QC \nrequirements outlined in the Multifamily Accelerated Processing (MAP) Guide,\
      \ 4430.G. The \nMortgagee must maintain and update its QC Program as needed to ensure it is fully\
      \ \ncompliant with all applicable FHA requirements at all times. \nThe QC Program must cover the\
      \ lifecycle of an FHA-insured Mortgage, including \norigination, underwriting, closing, endorsement,\
      \ and servicing functions that are conducted \nby the Mortgagee. \nThe QC Program must cover all\
      \ policies and procedures, whether performed by the \nMortgagee or outsourced to a contractor, to\
      \ ensure full compliance with FHA requirements \nfor Loan Administration. \nThe QC Program must\
      \ provide the Mortgagee’s management with information sufficient to \nadequately monitor and oversee\
      \ the Mortgagee’s compliance, and measure performance as it \nrelates to the Mortgagee’s FHA mortgage\
      \ activity. \ni. Exception for Multifamily Mortgagees \nThe following QC Program requirements do\
      \ not apply to Mortgagees with Originate \nMultifamily, Service Multifamily, or Service/Originate\
      \ Multifamily only authority. For \nMortgagees with Originate Single Family/Multifamily, Service\
      \ Single \n\n \n \nFamily/Multifamily, or Service/Originate Single Family/Multifamily authority,\
      \ these QC \nProgram requirements do not apply to its Multifamily operations. \n• V.A.2.b.iii(A)\
      \ Denied Mortgage Applications \n• V.A.2.b.iv Escrow Funds \n• V.A.2.b.vi Timely and Accurate Submission\
      \ for Insurance \n• V.A.2.d.iv(F) Method of Reporting \n• V.A.3.a.i Time Frame for Selection and\
      \ Review \n• V.A.3.a.iii Sample Size Standard \n• V.A.3.a.iv Sample Composition Standard \n• V.A.3.b\
      \ Loan Sample Risk Assessment \n• V.A.3.c Origination and Underwriting Loan File Compliance Review\
      \ \n• V.A.3.d Quality Control Reviews of Specialized Mortgage Programs \n• V.A.3.e Servicing Loan\
      \ File Compliance Review \n• V.A.3.f.ii Servicing Reviews \n• V.A.4 Data Integrity \n• V.B Quality\
      \ Control of Other Participants \n• V.C.2.a Title I Lender Monitoring Reviews \n• V.C.2.c Servicer\
      \ Tier Ranking System II \n• V.C.3 Loan Level Monitoring \n• V.D Monitoring of Other Participants\
      \ \n• V.E.3 Program Office Actions and Sanctions \n• V.E.5.e Specific Program Participants \nd.\
      \ Required Documentation (09/20/2021) \nThe Mortgagee must document the existence of its QC Program\
      \ and evidence of its \nimplementation, including written procedures, QC reports, and corrective\
      \ action plans. All \napplicable documents must be dated to demonstrate compliance with the retention\
      \ and \nreporting time frames in Quality Control of Lenders and Mortgagees. \ni. Time Frame for\
      \ Retention \ndocumentation, Findings, and actions taken to mitigate Findings, for a period of two\
      \ \nyears from the initial QC review, or from the last action taken to mitigate Findings, \nwhichever\
      \ is later. \nii. Production of Documents \nThe Mortgagee must make all documentation relating to\
      \ its QC Program available to \nFHA at any time upon request. \n\n \n \na. Who May Perform Quality\
      \ Control (03/14/2016) \nThe Mortgagee may use employees or contractors to perform QC functions\
      \ in accordance \ni. Employees \nThe Mortgagee must ensure that employees who perform QC Program\
      \ functions are, at \nall times, independent of all Loan Administration processes and do not directly\
      \ \nparticipate in any of the Loan Administration processes represented in the QC Plan. The \nMortgagee\
      \ must ensure QC employees are not within any chain of reporting or \nmanagement that is directly\
      \ connected to Loan Administration staff. \nii. Contractors \nThe Mortgagee may contract with outside\
      \ vendors to perform QC functions if: \n• the Mortgagee assumes full responsibility for the contractor’s\
      \ conduct of QC \nreviews in compliance with FHA requirements; \n• the Mortgagee and the contractor\
      \ have a valid contractual agreement in place that \nspecifies the roles and responsibilities of\
      \ each party; and \n• the Mortgagee acknowledges that the existence of such contract for the provision\
      \ \nof QC services does not satisfy the Mortgagee’s obligation to have a written QC \nPlan that\
      \ fully complies with FHA requirements. \nThe Mortgagee must ensure that contractor employees who\
      \ perform QC Program \nfunctions on behalf of the Mortgagee do not participate in any of the Loan\
      \ Administration \nprocesses represented in the QC Plan."
    drafter_attestation: Verbatim section from snapshot 8c03836f77f317e1; boundary human-curated + substring-verified
      (2026-07-23).
  judgment: false
