I'm trying to obtain some information regarding the quality control requirements for FHA approved mortgagees, including loan correspondents.

Currently, our loan officers can close a FHA loan for the secondary market. The loan does not hit our books. As a bank, do we still have to have a quality control plan for these loans? Everything is approved by a secondary market lender and the only thing that we do is to provide the information and close the loan.

Also, in regards to the requirements, who is considered an originator and who is considered a loan correspondent?

Any help would be appreciated.

Here is a link on Hud's website that takes you to their guidebook for quality control programs:

www.hud.gov/offices/adm/hudclips/handbooks/hsgh/4060.1/40601c7HSGH.pdf

Your process for selling mortgages sounds the same as ours. We had not been doing a quality control review because our understanding was that the investors we sold to took care of that for us.

However, recently we were trying to establish a relationship with a new investor and that was one of their requirements.

I can't answer your question on the definitions, but I'm sure you could do some research on the hud.gov website.