A.2.1.1.1 Background

A. As a condition of receiving or continuing to receive both Title II lending and MAP lending privileges, MAP Lenders must adopt and maintain a Quality Control Plan (QC Plan) for the origination, underwriting, closing, construction loan administration and loan servicing, if applicable, of FHA insured mortgages processed under the MAP program and procedures. Each MAP Lender must develop and maintain an acceptable QC Plan and conduct quality control using the guidelines below.

B. On December 30, 2016, the Department issued HUD Handbook 4000.1, Single Family Housing Policy, in which Chapter 1A: Doing Business with FHA; FHA Lenders and Mortgagees, and Chapter V A-E: Quality Control, Oversight and Compliance; Quality Control of Lenders and Mortgagees, apply to multifamily MAP Lenders and are incorporated herein by reference. All MAP Lenders must also comply with the applicable provisions of HUD Handbook 4000.1 and with the QC provisions in Chapter 2 of the MAP Guide and in this Appendix.