Introduction to Becoming an MMC EIC

RESTRICTED

PSC ROE RPG SCC SES

Performance Standards Committee

Report of Examination Risk Profiling Group

State Coordinating Committee State Examination System

SPOC

Single Point-of-Contact

Accepting State Agency – An agency that accepts an OCOE without further review of the company and in lieu of conducting its own examination. Area for Review – A review topic used to define the scope of an examination or investigation. AFRs are also used to categorize SES library items. 4 Business Activities – Generic, non-legal definitions of financial services activities that reasonably describe the activity a company engages in. No activity can be covered by more than one definition. 5 Coordinated Examination – A multi-state examination conducted jointly between state regulators and the CFPB. The MMC schedules coordinated examinations annually in coordination with the SCC and CFPB. 6 Examination Moratorium or Moratorium – 12-month pause on the review of business activities and AFR(s) examined during the OCOE. The 12-month Moratorium begins on the OCOE onsite start date. The Moratorium provides regulatory relief to the company without overly constraining an agency’s ability to supervise the company. The application and length of the Moratorium is dependent on exam ratings and any other factors that may require immediate regulatory supervision. These factors can include company financial deterioration, consumer complaints, state or federal actions, etc. Examination Scope – Mortgage origination AFR(s) or mortgage servicing AFR(s). Lead State Agency – A participating state agency on an OCOE that designates an experienced examiner to serve as the EIC on the examination. The MMC is responsible for selecting the lead state agency who assigns the EIC. Leveraging State Agency – An agency that utilizes the results of an OCOE to conduct its own targeted examination once the Examination Moratorium ends. Moratorium State Agency – An agency that does not participate or accept the results of an OCOE and adheres to the Examination Moratorium. Mortgage Examination Standards – Uniform set of AFRs, IRs, and exam procedures used on OCOEs. The standards are established by the MMC and approved by the NDSC. The use of the standards ensures that an OCOE meets the minimum examination standards agreed upon by all agencies. 7 Non-conforming State Agency – An agency that does not adhere to the 12-month Examination Moratorium by conducting its own examination and reviewing one or more of the AFRs reviewed as part of the OCOE.

4 Definition of Area for Review as provided by the SES Policy Guide. 5 Definition of Business Activities as provided by the NMLS Policy Guidebook. 6 See 2013 CFPB-State Supervisory Coordination Framework.

7 The Mortgage Examination Standards reviewed by all state mortgage regulatory agencies during a Regulator-only Comment period. The Mortgage Examination Standards incorporate state-specific requirements received from agencies during the 2023 comment period.

One Company, One Exam Mortgage / Protocol Page 4 of 12