What does it mean when your PCQC auditor cites the following?

"The loan file did not contain evidence that a second level review was completed by senior staff personnel. (FHA Second Level Review) "

Borrower was denied for delinquent credit obligations.

Your thoughts and citations are appreciated. Thank you.

Ask your PCQC directly to put it into English. They wrote it

My guess is a second review of denied loans is required by your institution and the auditor did not find evidence to show the second review was completed.

It used to be a requirement, but I don't see it in the current handbook:

https://www.hud.gov/sites/documents/DOC_36102.TXT

Reviving this thread as I am trying to answer the following: does FHA no longer require a second-level review of denied loan applications?

FHA does not, Ive since been told this falls to state level guidance now.