; (B) involved fraud or material misrepresentation in connection with the origination or underwriting that was a material contributing factor to the cause of the mortgage default; and (C) the financial impact on the Mutual Mortgage Insurance Fund when indemnification is required. (e) Quality control and assurance (1) Manual The FHA shall, pursuant to its existing regulatory authority, issue and update annually a manual, handbook, or guide that collects all of the origination and underwriting requirements that a mortgagee must follow to make residential mortgage loans eligible for insurance by the FHA which shall— (A) provide clear and concise directions so that a mortgagee can reasonably know what is expected of it; (B) identify examples of specific serious and material violations that could be the basis for an indemnification demand under this section; (C) apply nationally and be interpreted by the FHA uniformly with respect to all mortgages endorsed for insurance; and (D) permit prospective changes with reasonable advance notice to mortgagees, which such changes must be incorporated into the following year’s revised version of the manual, handbook, or guide and may not provide for retroactive changes to mortgages previously endorsed for insurance. (2) Requirements The FHA shall— (A) make prompt initial determinations of a mortgagee’s potential liability for either indemnification under this section or other administrative remedies or sanctions that may be available under the National Housing Act or other applicable laws, based on either self-reports by the mortgagee or other findings by the FHA through its examination processes of potential serious and material violations of such origination and underwriting requirements established under paragraph (1) or other fraud and material misrepresentations; (B) promptly notify the mortgagee of such initial determination and afford the lender the opportunity to provide additional information and analysis before a final determination is made