source:
  type: guide
  id: hud-4000-1-v-b-title-ii-loan-reviews
  authority: FHA Single Family Housing Policy Handbook 4000.1, Part V — b. Title II
    Loan Reviews (04/10/2025)
  description: FHA Single Family Housing Policy Handbook 4000.1, Part V — b. Title
    II Loan Reviews (04/10/2025).
  coverage_tier: operative
obligations:
- id: hud-4000-1-v-b-title-ii-loan-reviews-full
  canonical_id: hud-4000-1-v-b-title-ii-loan-reviews-full
  section: FHA Single Family Housing Policy Handbook 4000.1, Part V — b. Title II
    Loan Reviews (04/10/2025)
  type: do
  tags:
  - regulator-direct
  - fha
  - hud-handbook
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: FHA Single Family Housing Policy Handbook 4000.1, Part V — b. Title
      II Loan Reviews (04/10/2025)
    source_class: hud-handbook
    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: 'b. Title II Loan Reviews (04/10/2025) i. Notice FHA will notify
      Mortgagees with Lender Insurance (LI) authority daily via email of its intent
      to review the Mortgagee’s LI case binders. Mortgagees that do not have LI Authority
      can view loans selected for review in the Loan Review System (LRS) on the Insurance
      Application screen in FHAC. ii. Production of Case Binders If approved to submit
      electronic Case Binders (eCBs) to FHA, the Mortgagee must submit the case binder
      using eCB delivery. Mortgagees not approved to submit eCBs to FHA must provide
      the requested case binder(s) using the FHA Catalyst: Case Binder Module to FHA.
      V. QUALITY CONTROL, OVERSIGHT, AND COMPLIANCE C. Mortgagee Monitoring 3. Loan
      Level Monitoring Handbook 4000.1 1726 Last Revised: 11/26/2025 All case binders
      must be submitted to FHA within 10 business days of FHA’s transmittal of a request.
      Failure of a Mortgagee with LI Authority to submit requested case binders may
      result in suspension of the Mortgagee’s LI Authority. iii. Scope Title II loan
      reviews consist of, but are not limited to, the Mortgagee’s compliance with
      FHA guidelines and an assessment of whether the Mortgage represents an unacceptable
      level of risk to FHA. iv. Findings FHA will document the results of each loan
      review in the LRS. Any Findings of noncompliance with Title II Insured Housing
      Program requirements will be identified in accordance with Appendix 8.0 – FHA
      Defect Taxonomy. For each unacceptable Finding, FHA will request a response
      and specify allowable remedies from the Mortgagee. The Mortgagee must resolve
      each unacceptable Finding by submitting a response and remedy requested through
      the LRS. Notwithstanding the standard process described above, FHA may refer
      any Finding for administrative or other enforcement action as described in Referrals
      for Noncompliance, with or without documenting Findings in the LRS. V. QUALITY
      CONTROL, OVERSIGHT, AND COMPLIANCE D. Monitoring of Other Participants'
  judgment: false
