Risk Management Solutions for Mortgage Servicers

Power Performance and Protect Value With Mature Internal Controls

Mortgage Servicers face increased operational and compliance risks in an economy and regulatory environment impacted by COVID-19. Increased volatility in the business and regulatory environment is a strong incentive to mature risk management to protect value and improve operational resilience. Organizations that effectively leverage their system of internal control can confidently navigate the impact of changing risks on their mortgage servicing operations. When executed properly, effective risk management leads to competitive advantage.

We help our mortgage servicing clients minimize compliance risk and optimize performance across servicing and back-office operations. Our team of current and former servicing professionals offers the following services:

• Risk Assessment

Streamlined risk and control diagnostic tools that quickly assess risks, control maturity and compliance risk across servicing operations, backoffice and critical information systems.

• Audit & QC

On-demand risk resources for effective second and third lines of defense. Turn-key Quality Control (“QC”), compliance and internal audit services, sub-servicer audits, vendor audits, SOC 1 & 2, SOX, consent orders and regulatory audit support.

• Risk Analytics

Risk data, analytics and automation increases risk coverage through effective monitoring, driving down compliance costs and re- engineer mortgage servicing risk management programs. Elevate your data and automate compliance controls.

How Cherry Bekaert Can Help Mortgage Servicers with Risk Management

Our Risk Advisory practice helps mortgage servicers address financial, operational and compliance risks using customized risk management solutions, industry insights, and innovative analytical procedures tailored to your organization’s objectives. Our mission is to improve servicing operations and compliance through effective internal control.

Risk Assessment

• Streamlined diagnostics designed to quickly surface relevant servicing risks, evaluate internal control maturity over the risks that matter, identify gaps in control design, and surface potential compliance exposure
• Ready-built diagnostic libraries, powered by SerDox Servicing Library®, covering core servicing lines of business, loan administration processes and internal control expectations to support timely risk perspectives and control baseline
• Targeted assessments designed support compliance readiness, exam readiness, and operational process improvement initiatives

Internal Audit & Compliance Co-sourcing

• Cost effective, scalable risk management staffing designed to mitigate and manage key risks, and able to complement existing or stand-up new QC, Compliance, and Internal Audit functions
• On-demand professional resources with industry-specific regulatory and compliance expertise supports scalable, efficient compliance cost structure
• Audit programs for core servicing operations and back-office functions powered by SerDoc Servicing Library®
• Comprehensive support including compliance audit, internal audit, exam readiness, internal control maturity, deficiency remediation, SOC 1 & SOC 2, SOX, IT audit and cyber, and operational process improvement

Risk Data, Analytics & Automation

• Risk management re-engineering to optimize risk exposure and power organizational performance
• Advanced analytics and automation solutions designed to effectively and efficiently monitor risks so you can respond more timely
• Risk data reporting, KPI/KRI and dashboards designed to elevate transactional data into actionable information
• Risk management process automation to improve operational efficiency and effectiveness and enhance the quality and speed of decision making

SerDox Servicing Library

Our offerings cover core Servicing Operations including:

• Service Transfer
• Loan Resolution & Loss Mitigation
• Foreclosure
• Bankruptcy
• Real Estate Owned
• Special Loans (ARM, HECM)
• Escrow
• Complaints & Correspondence

Our clients get access to SerDox, an online library of over 2000 servicing document examples and accelerators including:

• Investor & Regulatory Guides
• Fee/State Matrices
• Notice/Letter Samples
• Fillable Forms
• Disclosures
• Regulatory Bulletins
• Compliance Calendar
• Servicing News

Your Guide Forward

Cherry Bekaert provides guidance and support that helps our clients move forward to reach their organizational goals. Our Firm’s advisory professionals understand your marketplace, so we can help you make the most of emerging opportunities while minimizing compliance headaches. Contact us today at riskadvisory@cbh.com to learn more about how we can help you navigate your risk exposure.