Internal Audit

Client Challenge:             

A growing loan servicing shop, looking to pursue a Primary Servicer rating, wished to enhance existing controls with an internal audit process. 

OP Approach:                   

OP performs an on-site review of each key business operation per the client’s customized schedule.  During the visit, OP interviews staff and examines documents to determine compliance with current policy and procedure.   OP delivers an extensive written report to the client within 10 days. The report includes an abbreviated assessment suitable for sharing with third parties. 

Resolution:                        

The client addresses their internal audit requirement in a cost effective manner, utilizing senior level professionals.  The detailed report findings provide Management the independent feedback they need for maximizing operations while sparing them the burden of execution.

Compliance and Reg AB Program

Client Challenge:             

A midsized Mortgage Banker wanted to implement an internal compliance program with a focus on achieving best-in-class execution against their policies and procedures while minimizing staffing costs.

OP Approach:                   

OP delivered a comprehensive Compliance Program that included Reg AB and USAP compliance, vendor management, and an internal audit component. 

Resolution:                        

The Compliance Program was adopted by senior management and provides the blueprint for the company’s authority delegations, risk management committee structure, and contract and regulatory compliance.   

Unique Strategy:             

Once the new structure was in place, the client was faced with the demands of execution on an already optimized work force.  OP provides the client with an outsourced service that provides the benefits of a full time compliance officer, without the cost and resource commitment required by a permanent staff position.  

 Special Servicing P&P Design

Client Challenge:             

A private real estate equity fund’s deep asset management experience gave them a solid foundation for performing Special Servicer functions.  Prior to pursuing a rating agency evaluation they sought to confirm their process met industry best practices and rating agency requirements. 

OP Approach:                   

The OP professionals reviewed routine operations on-site and mapped current practice against agency requirements.  The OP team quickly identified gaps and provided ready solutions to management with key assistance in implementation. 

Bonus:                                 

With extensive servicing operations experience, OP was able to recognize an untapped resource within the client’s technology platform.  OP presented a system modification proposal that integrated the proposed process changes with automated modules in the technology system. 

Resolution:    

OP helped the client document existing and enhanced processes in a policy manual that was approved and implemented. The firm went on to secure their Special Servicer rating.  In addition, the client leveraged their existing system to construct control designs and optimize operations.

 

Residential P&P Documentation

Client Challenge:             

In the midst of escalating defaults, a large residential servicer rapidly outgrew their historical practices and ad-hoc procedures evolved.  Their objective was to verify the new processes while confirming current company policy was still supported.  They chose to create desktop-level procedures across 14 departments, capturing existing processes at a keystroke-level for training and continuity.

OP Approach:                   

OP Compliance provided a team experienced in technical writing and loan servicing that worked with each department head to discuss operations and draft workflow diagrams that allowed critique, revision, and later the skeleton for the P&P manual.  OP staff then followed up with key individuals to document and trouble shoot processes. 

Resolution:                        

The servicer gained a user friendly document that included Visio charts for multiple levels of transaction flow and detailed desktop procedures.  The document remains flexible enough to allow for change, but structured enough to confirm compliance with company policy.  Later that year, the client successfully pursued a residential servicer rating, providing their new manual during the evaluation process. 

Value Add:                         

While assessing the newly emerged process, OP was able to identify critical process improvement recommendations and training opportunities.

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