Internal Control Questionnaires and Verification Procedures

Loan Production — Control Systems

Are records maintained that detail the number and dollar volume of loans acquired through retail and wholesale sources?
Does the bank track the number and type of documentation exceptions and unmarketable loans by origination source?
Is a system in place for tracking loan delinquencies, foreclosures, and losses?
Does management perform appropriate vintage analysis to monitor the quality of loans produced?
Does the quality control unit report outside of the production unit?
Does the bank prepare quality control reports on a monthly basis?
Does the quality control function meet investor requirements for content, scope, and timeliness?
Has a unit or an individual(s) been assigned responsibility for fraud detection?
Are losses on portfolio and warehouse loans recognized in a timely manner and taken against the ALLL?
Are losses on loans sold with recourse recognized in a timely manner and recorded against the recourse reserve?