Introduction to Mortgage Servicing Training - October 2023

Mortgage, LLC Schedule of Findings, Questioned Costs, and Recommendations (continued) For the Year Ended December 31, 2021

Part II—HUD program findings, questioned costs and recommendations section

A. Corrective actions not started or in process

Finding 2021-01

HUD program information

GNMA Issuers of Mortgage-Backed Securities

Questioned Costs

Not Applicable as the noncompliance is not related to a quantifiable criterion.

Information on universe and population

The total population consisted of 5,751 pools (367,826 loans) sold by subject to the 12-month requirement as of September 30, 2021.

Mortgage into a GNMA pool and

Sample size information

The sample selected for testing consisted of 35 unique pools from the above population.

Noncompliance information

Our compliance testing procedures identified 23 pools where the final certification was not completed within 12 months of the issuance of the securities.

Condition

For the 23 pools identified, the document custodian failed to obtain all documentation and to certify pools within 12 months of the issuance of securities.

Criteria or specific requirement (including statutory, regulatory or other citation)

Government National Mortgage Association Handbook 5500.3 Chapter 13, Section 3 specifies that final certification of single family pools must be completed no later than 12 months after the issue date of related securities.

Cause

The instances of noncompliance were as a result of the custodian not completing the final certification within the 12 months timeline.

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