2.9 Quality Control, Records and Monitoring

A. All new and existing MAP Lenders must have a QC Plan that contains the information required by this Chapter and by Appendix 2, Section A.2.1. The QC Plan must be updated annually.

B. MAP Lenders must make their files and records available to HUD or HUD’s authorized contractors for such monitoring of MAP processed loans as HUD determines. Lenders must retain the loan origination and underwriting files for 7 years after Final Endorsement (even if the loan has been sold).

C. MAP Lenders are subject to, and must cooperate with, monitoring and periodic on-site reviews by COB or its representatives to verify that the Lender:

1. Adheres to all statutory, regulatory and MAP Guide requirements;

2. Has made underwriting decisions that are consistent with the requirements of the MAP Guide;

3. Has undertaken technical processing that is consistent with the requirements of the MAP Guide;

4. Has complied with the conditions of a Firm Commitment and the requirements for Initial or Final Endorsement; and

5. Has complied with the requirements for construction loan administration in the MAP Guide.

D. Additional information on the role, authority and procedures of COB is found in Chapter 15.