Introduction to Becoming an MMC EIC

RESTRICTED OCOE Mortgage Company or OMC – A multi-state mortgage entity identified by the MMC as an OCOE candidate; a designation the MMC issues on an annual basis. Participating State Agency – An agency that is taking part in the OCOE on the multi-state examination team. In general, an OCOE is limited to 10 participating state agencies. SPOC State Agency – A state agency that designates an experienced regulator to serve as the SPOC on an OCOE. The SPOC state agency may be a participating agency on the examination but is not required to participate. The SPOC serves as an advisor to the EIC and examiners from the participating state agencies, and serves as a liaison to help strengthen communications, address complex or sensitive issues, and participate in meetings with the EIC, examination team, and/or OMC. Role of the MMC The MMC is responsible for implementing and overseeing this Protocol under the guidance of the NDSC and the MMC Operating Procedures . MMC responsibilities also include: • Identifying the companies receiving the ‘OCOE Mortgage Company’ (OMC) designation, scheduling the OCOEs of OMCs, identifying examination leads and participating state agencies, and sharing Mortgage OCOE report of examinations (ROEs) with state agencies to accept or leverage the exam results. • Promoting alignment with this Protocol, the CSBS/AARMR Nationwide Cooperative Protocol for Mortgage Supervision, the CSBS/AARMR Nationwide Cooperative Agreement for Mortgage Supervision 8 , and other networked supervision initiatives. • Ensuring all multi-state examination standards, procedures, State Examination System (SES) processes, and ROE templates align with the Protocol. • Providing guidance and direction to Mortgage OCOE examiners, including reviewing, and approving ROEs. • At least one MMC member must review and approve the OCOE ROE before it is provided to the OMC. The MMC determines the appropriate level of review for each OCOE. • Reviewing and revising the Protocol when changes are necessary to the process. Any changes must be communicated broadly to all state mortgage regulators. • Encouraging state mortgage regulators to adopt the OCOE supervisory approach for all multi-state mortgage entities (MMEs), not only OMCs. The MMC will endeavor to meet the parameters of this Protocol but maintains the flexibility to adjust any process or requirement outlined herein when necessary to meet the needs of individual state agencies. OCOE Mortgage Company Identification On an annual basis the MMC identifies and selects MMEs to receive an OMC designation. The MMEs with the largest nonbank market share by loan count will typically receive the designation. The MMC may consider additional risk factors in the selection process and select additional MMEs beyond the minimum criteria established in this Protocol.

8 CSBS/AARMR Nationwide Cooperative Protocol for Mortgage Supervision and CSBS/AARMR Nationwide Cooperative Agreement for Mortgage Supervision.

One Company, One Exam Mortgage / Protocol Page 5 of 12