| ID | Status | Date | Public/Private | Industry | AHACPA Contact |
|---|---|---|---|---|---|
| #6747 | Closed | public | FHA Lender |
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I have a two questions on sampling of lender loan files for compliance. 1. The HUD audit guide is not clear on selection, i.e. should we select samples from only FHA insured loans or from the lender’s entire portfolio of underwritten loans for the year? 2. If we should select samples from the entire pool of loans underwritten during the year, are there specific samples sizes for FHA underwritten loans and conventional? |
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From Les Sparks: The HUD Audit Guide only applies to FHA insured loans. Therefore, your sample should be selected from FHA insured loans. That being said, because of CFPB and the Yellow Book I believe you also are a responsibility to test some non FHA insured loans. For your second question, here is a copy of a our FHA Lender training that should help answer you question. Appropriate for populations of greater > 250 Significance of Control and Inherent Risk Very significant and higher inherent risk 60 or Moderately significant and higher inherent risk Based on the above chart, chances are 25 may not be enough for your testing. Thanks |