Introduction to Mortgage Servicing Training - October 2023

Government Auditing Standards requires the auditor to perform limited procedures on Mortgage, LLC’s response to the noncompliance findings identified in our audit described in the accompanying Schedule of Findings, Questioned Costs and Recommendations. Mortgage, LLC’s response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response. Ginnie Mae issued All Participant Memorandum 21-08: Alternative Procedures Permitted for Certain Aspects of Issuer Annual Audit Report (APM 21-08) related to Chapter 6 of the Guide associated with the review of the processes and controls of document custodian associated with the issuer. The current restrictions, due to COVID-19 limiting the performance of audit procedures at business sites, necessitated the use of alternative procedures. The procedures in the Guide related to inspection of original, endorsed, or certified copies of loan, pool, and other documents, or copies, if the copies clearly show the document recording information, were performed remotely in lieu of an on-site inspection using copies or electronic versions of such documents. When observations were required to be performed on-site in accordance with the Guide, virtual observations were performed. Report on Internal Control Over Compliance A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a compliance requirement of a HUD program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a compliance requirement of a HUD program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a compliance requirement of a HUD program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified. Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal controls over compliance. Accordingly, no such opinion is expressed. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Guide. Accordingly, this report is not suitable for any other purpose.

March 24, 2022

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