Intro to Mortgage Origination Examinations Training - July 2025

Internal Use Only

Knowledge Check #2 Which of the following best reflects sound corporate governance regarding board composition? A. All board members should be company employees with deep operational knowledge B. The board should include a mix of executive, non-executive, and independent directors with relevant experience C. Board seats should be assigned based solely on shareholder ownership percentage D. Board members should serve for life to maintain continuity

Internal Use Only

Knowledge Check #3 What is an appropriate responsibility of the board of directors in relation to the company’s risk management function? A. Delegating all risk-related decisions to the internal audit team B. Ensuring that risk management is only considered during a financial crisis C. Overseeing the development and monitoring of a comprehensive risk management framework D. Avoiding involvement in risk oversight to maintain independence