Are all mortgage lenders performing “loan servicing”

ID Status Date Public/Private Industry AHACPA Contact
#16947 Closed public FHA Lender Les Sparks
Customer Reply

I looked over recently published FHA Mortgagee Letters and the current FHA Single Family Policy Handbook 4000.1 and did not find specific guidance that explicitly stated FHA considers all mortgage companies as servicers, but had the understanding that when providing our Independent Auditors’ Report on Compliance for Major HUD Programs we needed  to always state whether the mortgage company we audited, even small lenders that originate and then promptly sell their loans, met the compliance requirements for  “loan servicing.”    This has come up with a client, and I don’t have any guidance to cite for this position, other that we have discussed this during prior AHACPA webinars and conferences.  So, is this always applicable and if so, is there guidance I can cite?

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