Full text of District Notices (Federal Reserve Bank of Dallas) : Action Plans for Three Supervised Financial Institutions to Correct Deficiencies in Residential Mortgage Loan Servicing and Foreclosure Processing, Notice 12-08 : IMB HoldCo

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IMB HoldCo LLC
Board Oversight Plan
and
Risk Management Evaluation Plan

Residential Mortgage Loan Servicing, Loss Mitigation and
Foreclosure Activities
Risk Management Evaluation Plan Originally Dated: July 11, 2011
This Plan Dated: January 9, 2012
***CONFIDENTIAL TREATMENT REQUESTED***
IMB HoldCo LLC respectfully requests that this document, the information contained in it, and any accompanying information
(collectively, “Confidential Information”) be afforded confidential treatment under, inter alia, 12 C.F.R. §4.36, 12 C.F.R. §261.14,
and the Freedom of Information Act (“FOIA”), 5 U.S.C. §552. In addition, certain of the Confidential Information may be
protected by the attorney-client privilege, the attorney work-product doctrine or other applicable privileges (“Privileged
Information”). By submitting the Privileged Information to the Federal Reserve Board and/or the Office of the Comptroller of
the Currency, IMB HoldCo LLC does not intend to waive any applicable privileges. The Confidential Information constitutes
trade secrets, confidential commercial information and/or investigatory records, and therefore such Confidential Information is
subject to the exemption from mandatory disclosure under FOIA.

Oversight and Risk Management Evaluation Plan
Table of Contents
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Oversight and Risk Management Evaluation Plan
Consent Order Requirement
IMB HoldCo LLC Consent Order dated April 13, 2011, Paragraph 2:
Within ninety (90) days of this Order, the Board shall submit to the Regional Director a written
plan to strengthen the Board’s oversight of the Association’s risk management, internal audit
and compliance programs concerning the residential mortgage loan servicing, Loss Mitigation
and foreclosure activities conducted through the Association.
IMB HoldCo LLC Consent Order dated April 13, 2011, Paragraph 7:
Within ninety (90 days) of this Order, the Holding Company shall submit to the Regional
Director an acceptable written plan to evaluate the effectiveness of, and strengthen, the
Association’s risk management program addressing residential mortgage loan servicing, Loss
Mitigation, and foreclosure activities and operations, and make recommendations to
strengthen the Association’s risk management program in these areas.

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Oversight and Risk Management Evaluation Plan
Executive Summary and Plan Overview





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Oversight and Risk Management Evaluation Plan
Executive Summary and Plan Overview - continued






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GOVERNANCE AND OVERSIGHT PROGRAM

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Oversight and Risk Management Evaluation Plan
Governance and Oversight
Corporate Governance is critical in establishing the guidelines for managing the operations of the Association. The Board of
Directors of the Holding Company will ensure that the Holding Company and the Association, its sole bank subsidiary, will be
managed in a safe and sound manner and in compliance with applicable laws and regulations and that effective risk management
and internal control processes are in place. The Holding Company’s Board of Directors has established committees to oversee
various functions of the Holding Company and the Association. The Holding Company’s Board has delegated its authority, but not
its oversight responsibility, to these committees. Below are key governance committees that will provide oversight as part of the
Holding Company’s Order.

1.

2.

Holding Company
Oversight
Committee of the
Board

An Oversight Committee of the Holding Company has been established consistent with the requirements of
the Holding Company’s Order and is comprised of three directors including two Non Employee directors.

Holding Company
Audit Committee of
the Board

Post completion and removal of the Consent Order, the oversight of responsibilities of the Holding Company
Oversight Committee of the Board will be transitioned to the Holding Company Audit Committee. In order to
fulfill their ongoing oversight responsibly, the Holding Company Audit Committee will ensure that Internal
Audit and Enterprise Risk Management Loan Review programs are comprehensive to address, process and
controls, compliance with Association policies and State, Federal and third party requirements for residential
mortgage loan servicing, loss mitigation and foreclosure activities. Ongoing reporting by Internal Audit and
Enterprise Risk Management Loan Review of the results of their reviews of these areas will be provided to
the Board no less than quarterly.

Meetings were held in August and October 2011.

Reporting by Internal Audit and Enterprise Risk Management Loan Review will transition to the Holding
Company Audit Committee from the Holding Company Oversight Committee once the Holding Company
Consent Order requirements have been satisfied and the Holding Company Oversight Committee is no longer
required.

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INTERNALAUDITANDINDEPENDENTQUALITYCONTROL
PROGRAM

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Oversight and Risk Management Evaluation Plan
Internal Audit - Overview
The Internal Audit program will be strengthened to help ensure the Association and the Holding Company
effectively assess and manage their legal, reputational, and compliance risks, and to meet the Consent Order
requirements the details of which are being provided concurrently with the submission of the Risk Management
program This program has been summarized in the following four pages.

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Oversight and Risk Management Evaluation Plan
Internal Audit –Summary of Key Changes
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Oversight and Risk Management Evaluation Plan
Internal Audit –Summary of Key Changes (continued)
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Oversight and Risk Management Evaluation Plan
Internal Audit –Summary of Key Changes (continued)
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Oversight and Risk Management Evaluation Plan
Internal Audit –Summary of Key Changes (continued)
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QUALITY CONTROL, COMPLIANCE AND OPERATIONAL RISK
MANAGEMENT PROGRAM

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OversightandRiskManagementEvaluationPlan
IndependentLoanReview/QC
The Association has established a comprehensive quality control program for Default Management which is
performed by the Enterprise Risk Management Loan Review/QC Department. This program is designed to
provide oversight and monitoring to ensure compliance with Legal Requirements, Association policy, and
investor requirements.
The quality control tests in the Annual Quality Control Plan submitted to the OTS/OCC on March 31, 2011 were
designed to provide timely feedback to the HLS unit in order to implement continual process improvement. To
accomplish this, the tests will be performed throughout the key phases of the default management process
including:
•
•
•
•
•
•
•

Loan Modifications / Loss Mitigation
Delinquent Loan Management and Breach Letters
First Legal, NOD or Complaint
Affidavit of Indebtedness / Foreclosure Motion
Borrowers in Bankruptcy
Foreclosure Sales
REO Management

Enterprise Risk Management Loan Review/QC reports to the Chief Risk Officer and is fully independent of the
Servicing and Default Management functions.
In support of the plan, The Association has established and approved a Quality Control Policy for Default
Management which was reviewed and approved by the Association’s Enterprise Risk Committee and Board of
Directors as required by the Association Order in April 2011.
The execution of 2011 plan has commenced.
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OversightandRiskManagementEvaluationPlan
IndependentLoanReview/QC
SamplingMethodology


Statisticalsamplingwillbeemployedfortheseprocesseswithsamplingbasedupon:
 95%confidencelevel
 2%marginoferror
 5%estimatedfailureorerrorrate
 Quarterlysampling,withtestingperformedmonthly



Samplingratesandfrequenciesmaybeadjustedovertimebaseduponperformance

ReportingofQualityControlResults
•

LoanReviewresultswillbereportedonamonthlybasisandwillinclude:
• Errorratesforeachprocesstested
• Identificationofrootcausesforerrors
• Specificfollowupplanstoaddresserrors,withresponsibilityassignedtospecificmanagers
includingtargetcompletiondates
• Trackingoffollowupplansfrompriorreportsthoughcompletionoftheplan

•

Reportswillbepresentedto:
• TheHoldingCompanyConsentOrderOversightCommitteeorAuditCommittee,as
applicable,nolessfrequentlythanquarterly

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Oversight and Risk Management Evaluation Plan
Independent Loan Review/Quality Control
6HUYLFLQJ&RPSOLDQFH0DQDJHPHQW3URJUDP
Review
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Frequency
Sample Type
Timing of Reviews
Loan Modifications and Loss Mitigation
Initiated Trials
Completed Trials
U/W Denials
Other Denials

Statistical
Statistical
Statistical
Statistical

Qtrly
Qtrly
Qtrly
Qtrly

Monthly
Monthly
Monthly
Monthly

Post Initiation
Post Completion
Post Denial
Post Denial

Short Sales

Statistical Qtrly

Monthly

Post Sale

Delinquent Loan Management and Breach Letters
Total DQ Book
Monthly Outbound Calls
Monthly Breach Letters

Statistical Qtrly
Statistical Qtrly
Statistical Qtrly

Monthly
Monthly
Monthly

N/A
Based upon Recordings
Post Mailing

First Legal, NOD or Complaint
Referrals to Legal Monthly
NOD and Complaints Filed

Statistical Qtrly
Statistical Qtrly

Monthly
Monthly

Pre-Filing
Post Filing

Affidavit of Indebtedness / Foreclosure Motion
AOI's Completed Monthly

Statistical Qtrly

Monthly

Pre-Filing

Borrowers in Bankruptcy
Total Borrowers in BK

Statistical Qtrly

Monthly

N/A

Foreclosure Sale
Initiated Foreclosure Sales
Completed Foreclosure Sales

Statistical Qrtly
Statistical Qrtly

Monthly
Monthly

Pre-sale notice
Post Sale

Real Estate Owned (REO) Management
Total REO
REO Sales Monthly

Statistical Qtrly
Statistical Qtrly

Monthly
Monthly

N/A
N/A

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Oversight and Risk Management Evaluation Plan
Servicing Compliance & Operational Risk Management Program
With the exception of certain extension items, the Association has implemented an enhanced Compliance
Program the details of which were previously submitted to the OTS/OCC by the Association on June 13, 2011
and which has been reviewed by the Holding Company Board of Directors. This program has been
summarized in the following eight pages. The requirements of the program are consistent with the
Association’s Order encompassing loss mitigation, foreclosure activities and operations.

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Oversight and Risk Management Evaluation Plan
Servicing Compliance & Operational Risk Management Program
Compliance Management Framework
The Association has largely implemented an enhanced compliance management program following a
framework described below. The major components of the framework include: monitoring Legal
Requirements, compliance risk assessment, change management and implementation and operational testing
and control. Each framework is described, in detail, on the following pages.

Monitoring Legal Requirements

Compliance Risk Assessment

Current
State

Transition
State

Improved
State

Change Management and Implementation
Operational Testing and Control

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Oversight and Risk Management Evaluation Plan
Servicing Compliance & Operational Risk Management Program
Monitoring Legal Requirements
1. Monitoring Legal Requirements
a. Scope includes monitoring and documenting changes from investors, insurers and regulators, including the
Legal Requirements outlined in the Consent Order.
b. Clear organizational responsibility for monitoring change.

c. Primary roles and responsibilities for this process include:
i.
Legal Department is responsible for monitoring, interpreting and documenting changes in applicable Legal
Requirements including OCC Interpretative Letter #1132 (interpretation of the Dodd-Frank Wall Street
Reform and Consumer Protection Act’s changes to the federal preemption standard applicable to federally
chartered banks),
ii.
Secondary Marketing is responsible for monitoring, interpreting and documenting changes in the servicing
guides of the GSEs and investors, including PSAs, and those with the Federal Housing Administration and
those required by HAMP,
iii. Corporate Treasury Department is responsible for monitoring, documenting and interpreting changes in
the Membership Rules of MERSCORP, and
iv. Residential Credit Management Department is responsible for monitoring, interpreting and documenting
changes in the loss share agreements with the Federal Deposit Insurance Corporation.

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Oversight and Risk Management Evaluation Plan
Servicing Compliance & Operational Risk Management Program
Monitoring Legal Requirements
1. Monitoring Legal Requirements (continued)
d. Process documentation which governs this Compliance Management Program element includes:
i.
Regulatory monitoring policy documented in “Regulatory Monitoring and Notification Policy,”
ii.
Requirements for maintaining the compliance with MERS Corporate Resolution Management System is
documented in “MERS Certifying Officer and Limited Signatories Policy,” and
iii. Requirements for monitoring and documenting changes in the loss share agreements with the FDIC is
documented in “Credit Management Shared-Loss Agreement Policy.”
e. Enhancements:
i.
Refined library of resources to source and monitor external environment,
ii.
Formal monitoring process with corporate and business line change management processes,
iii. An “Investor and Insurer Guideline Monitoring and Notification Policy” has been published.

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Oversight and Risk Management Evaluation Plan
Servicing Compliance & Operational Risk Management Program
Compliance Risk Assessment
2. Compliance Risk Assessment
a. The Association has established an ongoing risk assessment process which will used to evaluate Servicing
operational processes and controls to ensure that loss mitigation, loan modification, bankruptcy and foreclosure
operations comply with all Legal Requirements.
b. Risk assessments are a part of an enterprise risk assessment approach and are performed to:
i.
Assess whether business processes accurately address Legal Requirements,
ii.
Identify key controls and their effectiveness to ensure business activities support compliance with
applicable law and regulatory provisions, and
iii. Determine whether business processes are operating as prescribed.
c. Primary roles and responsibilities for this process include:
i.
Servicing Compliance Department is responsible for completing the assessment process to evaluate the
inherent risks associated with legal and business requirements, and
ii.
Servicing Operational Risk Department is responsible for assessing the effectiveness of established
controls and the resulting residual risk.

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Oversight and Risk Management Evaluation Plan
Servicing Compliance & Operational Risk Management Program
Monitoring Legal Requirements
2. Compliance Risk Assessment (Continued)
d. Enhancements:
i.

Fully staffed servicing compliance, operational risk organization,

ii.

Formal risk assessment methodology which helps to measure risks and ensure that loss mitigation, loan
modification, bankruptcy and foreclosure operations comply with all Legal Requirements,

iii.

Complete risk assessments, (extension requested until 12/31/11)

iv.

Documented process changes identified during the risk assessments in a “Change Analysis” document,
which includes:
a. An accounting of the systems, policies, standards and procedures, documents, forms and agreements
and training impacted by the regulatory changes,
b. Controls that were impacted by the change(s), and
c. Recommendations and accountability for remediation.

v.

Document and publish risk assessment processes in “Risk Assessment Procedures,” and

vi.

Documentation for servicing process maps and controls.

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Oversight and Risk Management Evaluation Plan
Servicing Compliance & Operational Risk Management Program
Change Management and Implementation
3. Change Management and Implementation (extension requested to 12/31/11)
a.

Establishing a uniform risk-based change management process that can be used across all departments and
addresses regulatory, policy, process, procedure, system or service level changes.

b.

Elements of the change management and implementation framework include:
i.
ii.

Risk based framework that extends throughout the process from analysis, to approval, to testing and reporting,
Linkage to other key tenets of effective risk management including risk assessments, process documentation and control
matrices,
iii. Centralization and standardization of the change process that enables compliance reporting, and
iv. Ownership and accountability reinforced via multiple reporting levels and change control performance linked to overall
performance management framework.

c.

Primary roles and responsibilities for this process include:
i.

Servicing change management and implementation, will be responsible for the following:
a. Servicing change management will be responsible for leading the change management and implementation process, and
b. Servicing policy and procedure will be responsible for publishing new or updated servicing process documentation,
including process maps and procedures, and conducting periodic documentation reviews for compliance with the Legal
Requirements outlined in the Consent Order.
ii. Corporate Policy and Procedure Team will be responsible for publishing new or updated policies and standards and
conducting periodic documentation reviews for compliance with the Legal Requirements outlined in the Consent Order, and
iii. Training Department works during the planning and implementation phases to coordinate updates and changes to existing
training programs.

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Oversight and Risk Management Evaluation Plan
Servicing Compliance & Operational Risk Management Program
Change Management and Implementation (extension requested to 12/31/11)
3. Change Management and Implementation (continued)
d.

Planned enhancements:
i.
ii.
iii.
iv.
v.
vi.

vii.
viii.

ix.

Develop and document Servicing Change Management and Implementation process,
Design and establish membership of Servicing Change Management and Implementation Team,
Consolidate Servicing Policy and Procedure staff reporting to Servicing Operational Risk under Servicing Change
Management Leader,
Establish clear change management roles and responsibilities for compliance, operational risk and change
management teams,
Conduct a review of policy and procedure documentation supporting foreclosure, bankruptcy and loss mitigation,
Determine whether process and related process documentation, including process maps, policies, procedures,
checklists and job aids are compliant and current, and if not, (create/update, train, communicate and publish
new policies, procedures, checklists and job aids) as required,
Implement cross business tracking, monitoring and reporting of policy and procedure development and change,
Document policy and procedure development and drafting review processes, including standardized stakeholder
review based on level of risk/impact and type of content. Establish a standard for periodic reviews of process
documentation and gap remediation, and
Establish and document a process to ensure that policies, procedures, and processes are continually updated on
an ongoing basis as necessary to incorporate any changes in applicable Legal Requirements and supervisory
guidance.

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Oversight and Risk Management Evaluation Plan
Servicing Compliance & Operational Risk Management Program
Operational Testing and Control
4. Operational Testing and Control
a.

Scope includes the ongoing and independent testing of the HLS default management and foreclosure
processes.

b.

Testing and Controls Plans outlined in:
i.

“2011 Annual Quality Control Plan for: Residential Mortgage Servicing Default Management and Foreclosure

ii.

Processes,” and
“2011 Internal Audit Plan.”

c.

Primary roles and responsibilities for this process include:
i.

Enterprise Risk Management (“ERM”) Loan Review team works with a third party provider to provide an independent
testing of the key phases of the default management process,
ii. Servicing Operational Risk has established an ongoing oversight and review process to ensure that controls are
properly maintained and adhered to,
iii. Servicing Compliance Team will validate selected system and process changes after they are made, and
iv. Internal Audit provides annual audits required for regulatory or management reasons as well as a regular audit
schedule of high, medium and low risk servicing processes.

d.

Enhancements:
i.

ii.

Fully deploy “2011 Annual Quality Control Plan for: Residential Mortgage Servicing Default Management and
Foreclosure Processes” which was approved by the Association’s Board of Directors on March 31, 2011 (requested
extensions on certain items to 12/31/11), and
Establish an ongoing oversight and review process to ensure that controls are properly maintained and adhered to.

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IMB HoldCo LLC
Compliance Program Oversight Plan
Residential Mortgage Loan Servicing, Loss Mitigation and Foreclosure
Activities
Date: January 9, 2012

***CONFIDENTIAL TREATMENT REQUESTED***
IMB HoldCo LLC respectfully requests that this document, the information contained in it, and any accompanying information
(collectively, “Confidential Information”) be afforded confidential treatment under, inter alia, 12 C.F.R. §4.36, 12 C.F.R. §261.14,
and the Freedom of Information Act (“FOIA”), 5 U.S.C. §552. In addition, certain of the Confidential Information may be
protected by the attorney-client privilege, the attorney work-product doctrine or other applicable privileges (“Privileged
Information”). By submitting the Privileged Information to the Federal Reserve Board and/or the Office of the Comptroller of
the Currency, IMB HoldCo LLC does not intend to waive any applicable privileges. The Confidential Information constitutes
trade secrets, confidential commercial information and/or investigatory records, and therefore such Confidential Information is
subject to the exemption from mandatory disclosure under FOIA.

Compliance Program Oversight Plan
Table of Contents
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Compliance Program Oversight Plan
Consent Order Requirement
IMB HoldCo LLC Consent Order dated April 13, 2011, Paragraph 8:
Within ninety (90) days of this Order, the Holding Company shall submit to the Regional
Director an acceptable written plan to evaluate the effectiveness of, and strengthen, the
Association’s compliance program addressing residential mortgage loan servicing, Loss
Mitigation, and foreclosure activities and operations, as detailed in the Association Order.

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Compliance Program Oversight Plan - Elements
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Compliance Program Oversight Plan
Detailed Requirement and Holding Company Oversight
The following table provides a detailed overview of the requirements under the Association’s Compliance Program. The
ongoing evaluation of the Compliance Program’s effectiveness will be performed by the Association’s Internal Audit and
Enterprise Risk Management Loan Review departments, which are two independent audit functions. Reporting on the results
of their review will be provided to the Holding Company Oversight Committee (currently) and Holding Company Audit
Committee (future).
Association Consent Order Requirement

Summary of Association Activities

Targeted Completion Date

9.d:“… governance and controls to ensure full compliance with all applicable
federal and state laws (including, but not limited to, the U.S. Bankruptcy Code
and the Servicemembers Civil Relief Act (SCRA)), rules, regulations, court orders
and requirements, as well as the Membership Rules of MERSCORP, servicing
guides of the Government Sponsored Enterprises (GSEs) or investors, including
those with the Federal Housing Administration and those required by the Home
Affordable Modification Program (HAMP), and loss share agreements with the
Federal Deposit Insurance Corporation (collectively Legal Requirements), and the
requirements of this Order.”

The Association will develop policies and procedures
supporting the following activities: Federal and State
law repository; enterprise risk control assessment
methodology. In addition, a comprehensive risk
assessment and remediation of any identified gaps
will be performed to evaluate process, controls and
compliance with these requirements.

12/31/11 – extension
requested to complete
remediation of identified
issues.

11.a “appropriate written policies and procedures to conduct, oversee, and
monitor mortgage servicing,”

A comprehensive review of the Association’s
Compliance Program to ensure appropriate monitoring
and oversight.

9/10/11 - Complete

11.b “processes to ensure that all factual assertions made in pleadings,
declarations, affidavits, or other sworn statements filed by or on behalf of the
Association are accurate, complete, and reliable, and that affidavits, declarations,
or other sworn statements are based on personal knowledge or a review of the
Association’s books and records when the affidavit, declaration, or sworn
statement so states;”

Policies, Standards and Procedures have been
developed as well as enhanced tools and quality
control processes to ensure accuracy.

9/10/11 - Complete

11.c “processes to ensure that affidavits filed in foreclosure proceedings are
executed and notarized in accordance with state legal requirements and
applicable guidelines, including jurat requirements;”

Standards and procedural protocols have been
developed to ensure notarization practices are
consistent with state requirements.

9/10/11 - Complete

11.d “processes to review and approve standardized affidavits and declarations
for each jurisdiction in which the Association files foreclosure actions to ensure
compliance with applicable laws, rules, and court procedures;”

Affidavits and declarations have been reviewed to
ensure compliance with applicable laws and the
Association will pursue standardization of documents,
to the extent permitted.

9/10/11 - Complete

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Compliance Program Oversight Plan
Detailed Requirement and Holding Company Oversight (continued)
Association Consent Order Requirement

Summary of Association Activities

Targeted Completion Date

11.e ““processes to ensure that the Association has properly documented ownership of
the promissory note and mortgage (or deed of trust) under applicable state law, or is
otherwise a proper party to the action (as a result of agency or other similar status) at
all stages of foreclosure and bankruptcy litigation, including appropriate transfer and
delivery of endorsed notes and assigned mortgages or deeds of trust at the formation
of a residential mortgage-backed security, and lawful and verifiable endorsement and
successive assignment of the note and mortgage or deed of trust to reflect all changes
of ownership;”

Policies and procedures have been reviewed to
ensure appropriate transfer in support of loss
mitigation and foreclosure activities.

9/10/11 - Complete

11.f “processes to ensure that a clear and auditable trail exists for all factual
information contained in each affidavit or declaration, in support of each of the charges
that are listed, including whether the amount is chargeable to the borrower and/or
claimable to the investor;”

Standards and procedures have been
developed to ensure requirements for
supporting documentation are maintained.

9/10/11 - Complete

11.g “processes to ensure that foreclosure sales (including the calculation of the default
period, the amounts due, and compliance with notice requirements) and post-sale
confirmations are in accordance with the terms of the mortgage loan and applicable
state and federal law requirements;”

Policies and procedures have been reviewed to
ensure appropriate controls and activities are in
place to support compliance .

9/10/11 - Complete

11.h “processes to ensure that all fees, expenses, and other charges imposed on the
borrower are assessed in accordance with the terms of the underlying mortgage note,
mortgage, or other customer authorization with respect to the imposition of fees,
charges, and expenses, and in compliance with all applicable Legal Requirements and
supervisory guidance;”

A review of Legal requirements in addition to
underlying documentation has b een performed
to evaluate requirements for fees, expenses and
other charges.

9/10/11 - Complete

11.i “processes to ensure that the Association has the ability to locate and secure all
documents, including the original promissory notes if required, necessary to perform
mortgage servicing, foreclosure and Loss Mitigation, or loan modification functions;”

Foreclosure “file documentation” standards
have been established and put into production.

9/10/11 - Complete

11.j “ongoing testing for compliance with applicable Legal Requirements and
supervisory guidance that is completed by qualified persons with requisite knowledge
and ability (which may include internal audit) who are independent of the Association’s
business lines;”

The Association has established an independent
Loan Review/Quality Control function to
provide continuous transactional testing.

9/10/11 - Complete

11.k “measures to ensure that policies, procedures, and processes are updated on an
ongoing basis as necessary to incorporate any changes in applicable Legal
Requirements and supervisory guidance;”

Policies and Standards supporting a
comprehensive change control program will be
established which include ensuring Association
documentation is updated in a timely manner.

12/31/11 – Extension requested
to allow for full implementation
of program.

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Compliance Program Oversight Plan
Detailed Requirement and Holding Company Oversight
Association Consent Order Requirement

Summary of Association
Activites

Target Completion Date

11.l “processes to ensure the qualifications of current management and supervisory personnel
responsible for mortgage servicing and foreclosure processes and operations, including collections,
Loss Mitigation and loan modification are appropriate, and a determination of whether any staffing
changes or additions are needed;”

A review of staffing adequacy
and capability has been
performed.

9/10/11 - Complete

11.m “processes to ensure that staffing levels devoted to mortgage servicing and foreclosure
processes and operations, including collections, Loss Mitigation and loan modification, are adequate
to meet current and expected workload demands;”

A review of operating staffing
models and resource
requirements has been
performed

9/10/11 - Complete

11.n “processes to ensure that workloads of mortgage servicing, foreclosure and Loss Mitigation and
loan modification personnel, including single point of contact personnel as hereinafter defined, are
reviewed and managed. Such processes, at a minimum, shall assess whether the workload levels are
appropriate to ensure compliance with the requirements of this Order, and necessary adjustments to
workloads shall promptly follow the completion of the reviews. An initial review shall be completed
within ninety (90) days of this Order, and subsequent reviews shall be conducted semi-annually;”

A review of operating staffing
models and resource
requirements has been
performed

9/10/11 - Complete

11.o “processes to ensure that the risk management, quality control, audit, and compliance programs
have the requisite authority and status within the organization so that appropriate reviews of the
Association’s mortgage servicing, Loss Mitigation, and foreclosure activities and operations may
occur and deficiencies are identified and promptly remedied;”

A review of risk functions and
alignment within the
organization has been
performed

9/10/11 - Complete

11.p “appropriate training programs for personnel involved in mortgage servicing and foreclosure
processes and operations, including collections, Loss Mitigation, and loan modification, to ensure
compliance with applicable Legal Requirements and supervisory guidance; and”

An assessment of training
requirements and content has
been performed to ensure
appropriate frequency and
content of training.

9/10/11 - Complete

11.q “appropriate procedures for customers in bankruptcy, including a prohibition on the collection
of fees in violation of bankruptcy’s automatic stay (11 U.S.C. § 362), the discharge injunction (11
U.S.C. § 524), or any applicable court order.”

A review of Policies and
procedures will be performed to
ensure compliance.

9/10/11 - Complete

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