Due Diligence and Ongoing Monitoring

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  • 1.  Due diligence on a federally supervised financial institution

    Posted 06-02-2021 05:11 PM
    I am interested in how others are doing due diligence on a federally supervised financial institution, such as a bank that is a secondary purchaser for our mortgage loans.
    I get push back from several of them that they are not required to provide information or complete a questionnaire.


  • 2.  RE: Due diligence on a federally supervised financial institution

    Posted 06-03-2021 09:27 AM
    We have created a listing of "exempt" relationships that we track but gather significantly less due diligence on.  We include federally supervised financial institutions as exempt based on the level of oversight they are under from Federal Regulators.  Depending on the institution, you can sometimes pull really detailed information on their performance from their regulators.  Freddie Mac and Fannie Mae you can also pull copies of the reports to Congress covering their performance directly from their websites. 

    Shelly​

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    Shelly Chase
    Senior Risk Analyst Officer
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