© RHS HB-1-3555 SFH Guaranteed Loan Program Technical Handbook
To apply to participate in the SFHGLP in more than one state, the lender submits Form RD 3555-16, “Agreement for Participation in Single-Family Housing Guaranteed/Insured Loan Programs of the United States Government,” and the necessary supporting documentation to the Rural Development National Office.
If the lender wishes to participate in the SFHGLP in a single state, the lender should submit the application package to the State Office or the office designated by the State Office to review lender applications. A listing of State Offices and their addresses are included in Appendix 4. If the lender wishes to participate in multiple states, the lender may submit a single application package to the National Office.
A list of supporting documentation to accompany Form RD 3555-16 is outlined in Attachment 3-A to this Chapter.
Reliable and effective quality control (QC) programs are essential to a lender’s success in the mortgage industry. Quality begins prior to application intake and continues through the mortgage process. The purpose of quality control is to monitor and evaluate the integrity of the origination and servicing (as applicable) process and be customized to the lender’s organization, circumstances and needs. The quality control plan must contain the necessary controls as required by other recognized sources noted at Section 3.2A of this Chapter. At a minimum, but not limited to, the lender’s plan should:
Have written procedures for document re-verification process, sampling methodology that includes a representative sample of Rural Development loans, consistent and timely review process and document retention.
Has a quality control team that operates independently from loan origination/underwriting and servicing functions or contracts out this function.
Provides for standard operating procedures for all employees who will be involved with or affected by the quality control process.
Written procedures to report violations of laws or regulations, false statements, and program abuses directly to appropriate authorities in a timely manner. Information regarding violations will be reported to the National Office. Refer to Appendix 4 of this Handbook regarding delivery information.
Ensure adequate quality control and data integrity checks are included for loans processed through automated underwriting systems on a regular and timely basis.
Ensure adequate monitoring of all vendors or contractors involved in the origination process (for example from mortgage brokers or correspondents or via the internet).