FHA Waives of QC Requirements for Early Payment Defaults and Appraisal Field Reviews
Articles by: Richey May, Jun 25, 2020
The FHA has released a temporary waiver of QC Requirements for Early Payment Defaults and partial waiver of field reviews of appraisals.
Mortgage lenders who originate FHA Loans will find some relief from this temporary waiver in the wake of the high volume of EPDs caused by the Coronavirus pandemic.
Lenders can now use their resources to review other loan files rather than focusing so heavily on EPDs. The waiver allows lenders to save time and money as they can:
- Avoid having to conduct Early Payment Default (EPD) reviews for the months of May, June, and July 2020.
- Avoid having to obtain field reviews on appraisals for loans selected for post-close QC reviews for the months of May, June, and July 2020 by allowing the use of third-party tools as an alternative
Quality Control and Internal Audit teams will be impacted for the waiver period, which currently applies to loans in the May/June/July 2020 QC Period.
- You can see the brief from HUD here.
- You can see the temporary waiver here.
- Access the Single Family Housing Policy Handbook 4000.1 here.
Contact us if you have any questions about the FHA’s QC Requirements and field appraisals waivers and how they impact your mortgage business.