source:
  type: guide
  id: hud-4000-1-v-a-who-may-perform-quality-control
  authority: FHA Single Family Housing Policy Handbook 4000.1, Part V — a. Who May
    Perform Quality Control (03/14/2016)
  description: FHA Single Family Housing Policy Handbook 4000.1, Part V — a. Who May
    Perform Quality Control (03/14/2016).
  coverage_tier: operative
obligations:
- id: hud-4000-1-v-a-who-may-perform-quality-control-full
  canonical_id: hud-4000-1-v-a-who-may-perform-quality-control-full
  section: FHA Single Family Housing Policy Handbook 4000.1, Part V — a. Who May Perform
    Quality Control (03/14/2016)
  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 — a. Who May
      Perform Quality Control (03/14/2016)
    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: 'a. Who May Perform Quality Control (03/14/2016) The Mortgagee
      may use employees or contractors to perform QC functions in accordance with
      the following requirements. i. Employees The Mortgagee must ensure that employees
      who perform QC Program functions are, at all times, independent of all Loan
      Administration processes and do not directly participate in any of the Loan
      Administration processes represented in the QC Plan. The Mortgagee must ensure
      QC employees are not within any chain of reporting or management that is directly
      connected to Loan Administration staff. ii. Contractors The Mortgagee may contract
      with outside vendors to perform QC functions if: • the Mortgagee assumes full
      responsibility for the contractor’s conduct of QC reviews in compliance with
      FHA requirements; • the Mortgagee and the contractor have a valid contractual
      agreement in place that specifies the roles and responsibilities of each party;
      and • the Mortgagee acknowledges that the existence of such contract for the
      provision of QC services does not satisfy the Mortgagee’s obligation to have
      a written QC Plan that fully complies with FHA requirements. The Mortgagee must
      ensure that contractor employees who perform QC Program functions on behalf
      of the Mortgagee do not participate in any of the Loan Administration processes
      represented in the QC Plan.'
  judgment: false
