Mortgage Quality Management and Research LLC (MQMR)
has announced that its Internal Audit services offering meets or exceeds the requirements for Fannie Mae seller/servicers to be in compliance with the Dec. 19, 2017 Fannie Mae Selling Guide Announcement SEL-2017-10
update. The update describes mortgage lender internal audit requirements clearly with regard to independence and reporting lines, eliminating any perceived ambiguity from the current Selling Guide Eligibility requirements. Fannie Mae enforcement of the updated requirements begins July 1, 2018.
MQMR has adapted its own policies and procedures to support the updated Fannie Mae requirements covering approved seller/servicers who “must have internal audit and management controls to evaluate and monitor the overall quality of their loan production and servicing.”
“Fannie Mae has clarified beyond a shadow of a doubt that Internal Audit independence is an integral aspect of seller/servicer compliance,” said MQMR President Michael Steer. “Given the costs and expertise needed to set up a fully functional internal audit program, outsourcing Internal Audit is probably the best solution, so the next step for mortgage lenders covered by this update is to begin evaluating Internal Audit providers immediately.”
MQMR Internal Audit services deliver the specific elements Fannie Mae requires, including:
►The risk assessment methodology used to identify the operational areas and functions to be audited and the frequency of those audits;
►The policies and procedures implemented to govern reporting to senior management and the remediation of findings; and
►The departmental and functional audit schedule for a minimum 12-month period, which should identify the areas subject to review during the current period and align with the risk assessment.