Office of Lender Activities and Program Compliance FHA ...

[Pages:22]Office of Lender Activities and Program Compliance

FHA Quality Assurance Update

March 20, 2019

Last Updated: 3/8/2019

Presented by: Jack Higgins Director Quality Assurance Division

Agenda

Quarterly Loan Review Results LRS Guidance and Updates Resources Q&A

2

Quarterly Loan Review Results

3

Loan Review Volume

Selection Reason

Early Payment Defaults Random Selections Lender Monitoring Lender Self-Reports Test Cases FHA Manual Selections Early Claims Risk Algorithm Review Location QC

Quarterly Total

Review Type

Underwriting Servicing

Quarterly Total

LRS reviews completed from 10/1/2018 to 12/31/2018

# Completed

5,334 974 883 794 241 193 150 21 323

8,913

# Completed

8,359 554

8,913

4

Ratings and Outcomes

Initial Ratings (Gross)

22.1%

Final Ratings (Net)

0.9%

7.7%

22.1%

63.5%

Conforming Deficient Unacceptable

14.4%

54.9%

14.4%

Conforming Deficient Mitigated Unacceptable Indemnification/Financial Remediation

LRS reviews completed from 10/1/2018 to 12/31/2018 (excluding lender self-reports and internal QC)

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Quarterly Loan Review Summary

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Outcome Trends: Selection Date

70% 60% 50% 40% 30% 20% 10%

0%

63%

6% 2017 Q2

66%

62%

60%

62%

9%

7%

2017 Q3

2017 Q4

Gross Material Defect Rate

6%

6%

2018 Q1

2018 Q2

Net Material Defect Rate

61%

5% 2018 Q3

LRS reviews completed from 5/15/2017 to 12/31/2018 (excluding lender self-reports and internal QC)

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Outcome Trends: Endorsement Date

70%

60% 50%

63%

40%

30%

20% 9%

10%

0% Pre-2017

65%

8% 2017 Q1

61%

6% 2017 Q2

60%

6% 2017 Q3

60%

6% 2017 Q4

58%

5% 2018 Q1

56%

3% 2018 Q2

56%

4% 2018 Q3

Gross Material Defect Rate

Net Material Defect Rate

LRS reviews completed from 5/15/2017 to 12/31/2018 (excluding lender self-reports and internal QC)

8

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