Introduction to Mortgage Origination Examiniations

Internal Use Only

Mortgage Servicer • Servicers must advance funds • To investors, in case of borrower default • To insurers and tax assessors, if

escrow account underfunded Moderate to high risk

• Sub-servicers don’t have those risks.

Internal Use Only

Mortgage Servicer

Mortgage Servicing Rights (MSRs)

Lenders may retain or sell MSRs into the market

Master servicer may service loan, or contract out to a sub-servicer

MSR Owner must advance funds: • To investors, in case of borrower default • To insurers and tax assessors, if escrow account underfunded Moderate to High Risk