Introduction to Mortgage Servicing Training - March 2024

Internal Use Only

Corporate Governance

Board of Directors – What should examiners look for?

Determine board committee structures and delegated responsibility and reporting lines for matters, such as to an audit committee or risk committee.

Review the meeting minutes and supporting materials of those committees for coverage of compliance matters.

Review the annual risk assessment and determine whether the company addressed the risks appropriately.

Review policies and procedures for changes management committed to make following monitoring, audit, and examination findings and recommendations.

Review board or committee consideration of audit matters for coverage of key risks, independence from business functions, and resolution of identified issues.

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Internal Use Only

Corporate Governance

 The board of directors shall establish internal audit requirements that are appropriate for the size, complexity, and risk profile of the servicer.  Internal auditors must be allowed to operate with appropriate independence to provide a reliable evaluation of the servicer’s internal control structure, risk management and governance.  It is critical to review the Board established internal audit requirements and the results of internal audits.

Internal Audits

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