Internal Control Questionnaires and Verification Procedures

Mortgage Servicing Rights

  1. Has the bank formulated written policies and procedures governing MSR?

  2. Is the board required to approve significant sales and purchases of servicing rights?

  3. Does management conduct a due diligence review before purchasing a bulk servicing portfolio?

  4. Are due diligence reviews documented and reviewed by the board of directors before the transaction is approved?

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