HUD views quality control as an important responsibility of lenders. It imposes many requirements on lenders who wish to take advantage of the FHA-insured, single-family mortgage program.


As a condition of FHA-approval, lenders—including loan correspondents—must implement a written quality control plan. They submit a copy of the plan when applying for FHA approval, but the responsibility doesn't stop there. To maintain their FHA approval they must continuously revise the plan as needed due to changes in federal law, HUD regulations, handbooks or mortgagee letters or other guidelines to keep it up-to-date. Lenders that service loans must have a QC plan for FHA servicing.


A lender’s quality control plan be must be designed to assure compliance with HUD's origination or servicing requirements throughout its operations as well as with the lender’s own requirements. It must protect the lender and HUD from unacceptable risk. It must guard against errors, omissions and fraud and must assure swift and appropriate corrective action. Failure to comply with specific FHA quality control requirements can result in sanctions and civil money penalties imposed by the HUD’s mortgagee review board.

The components of the FHA quality control requirements include specific requirements covering:

basic elements of the QC program,


auditing system and procedures for origination,


origination review issues,


auditing system and procedures for servicing,


routine servicing review issues.


default servicing review issues and


regulatory compliance review issues.

Click on the links above to learn more about the FHA guidelines.