LOS ANGELES, Calif. /California Newswire/ — Mortgage Quality Management and Research, LLC (MQMR) President Michael Steer today advised lenders to increase the frequency with which they conduct their internal audits to ensure secondary market activities and relationships are not negatively impacted by undiscovered risks.
“Most lenders are only conducting internal audits once or twice a year, if at all, but the GSEs are clear that internal audits should be conducted on an on-going basis. Therefore, this frequency is inadequate from both a requirements standpoint and from a total risk management perspective,” Steer said. “Without the full picture available, lenders could unknowingly be engaging in risky practices that could negatively impact loan quality and, ultimately, erode…
