A.2.1.1.3 Policy Objectives

A. The primary objectives of the QC Plan are to assure that:

1. The MAP Lender operates at a high-performance level in the origination, underwriting, closing, construction loan administration and servicing (as applicable) of MAP processed loans.

2. The MAP Lender operates in full compliance with the National Housing Act (NHA), HUD-FHA and MAP requirements, and with its own internal policies and procedures.

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Appendix 2 Quality Control Plans and Identity of Interest A.2.1 Lender Quality Control Plans and Identity of Interest Examples

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3. The MAP Lender adheres to the MAP Guide policies and procedures, clarifications and revisions in Frequently Asked Questions (FAQ), applicable regulations, Mortgagee Letters, HUD Notices and HUD Handbooks, and its own internal controls. These policies and procedures must be distributed to and consistently followed by the Lender’s personnel and must be supported internally by appropriate training and staff development activities.

4. The MAP Lender’s third-party contractor(s) involved in a MAP loan are familiar with, understand and adhere to the MAP Lender's own policies and procedures regarding quality control.

5. The MAP Lender's operating procedures are revised in a timely manner to:

   • Accurately reflect any changes in HUD-FHA and MAP regulations, policies, directives or instructions;

• Keep all affected, accountable personnel informed and trained so as to guarantee compliance therewith; and

• Assure that all employees and third-party contractors are held accountable for performance failures, errors and omissions.

6. The MAP Lender utilizes a program of internal and/or external audits that provide for an independent review by Lender’s staff and/or contractor(s) who are knowledgeable and have no direct MAP loan origination, underwriting, construction loan administration, and/or loan servicing responsibilities, as applicable.