A Mortgage Servicer Performs All of the Servicing Functions

question 70

Multiple Choice

A mortgage servicer performs all of the servicing functions. The servicer remits all funds received on the serviced loans to the company on a monthly or other periodic basis and usually reports all transactions, including foreclosures and transactions related to foreclosed property. The contract between the company and servicer should provide that the:

• A) Company can periodically audit the servicer's records and files pertaining to the loans owned by the company. In lieu of making the audit, the company can agree to receive an annual audit report pertaining to its loans from the servicer's independent certified public accountants. This is the single audit concept
• B) Servicer should not have a fidelity bond and an errors and omission policy of stipulated minimum amounts
• C) Servicer must have a fidelity bond and an errors and omission policy of stipulated minimum amounts
• D) Servicer must have an annual independent audit, with a copy of the audited financial statements sent to the company within a certain period of time after the end of the servicer's fiscal year

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Definitions:

Cultural Diversity

The existence of a variety of cultural or ethnic groups within a society, organization, or team, emphasizing the value of diverse perspectives.

Managing Activities

The process of planning, organizing, directing, and controlling resources to achieve specific goals within an organization or project.

Employee Empowerment

The practice of giving employees the authority and autonomy to make decisions and take actions that affect their work.

Knowledge Workers

Employees whose primary capital is knowledge, such as programmers, pharmacists, architects, engineers, scientists, design thinkers, public accountants, lawyers, and academics, whose job is to "think for a living."