Internal Control Questionnaires and Verification Procedures

Servicing — Collections

1. Are procedures in place that ensure collection activities conform to investor requirements?

2. If a forbearance arrangement is made with a delinquent mortgagor, is the reason for the forbearance action documented?

3. Is a system in place to ensure that, if required, the investor approves the forbearance arrangement?

4. Has the bank established a foreclosure reserve?

5. Are uncollectible investor advances charged off in a timely manner?

6. When title has or will be obtained to an OREO property, does the bank follow applicable law, regulations, and financial reporting rules?

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