Internal Control Questionnaires and Verification Procedures

Mortgage Servicing — Documentation and Recordkeeping

1. Does the bank have an adequate recordkeeping system in place to support and account for MSRs?

2. Are records maintained that document original valuation assumptions for each bulk acquisition of servicing rights?

3. Are records maintained by product type and month of origination for MSRs acquired through retail production (origination) and production flow (purchase) activities?

4. Does the bank have a system in place to track actual prepayment experience on individual pools of mortgages?

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