Representative Engagements
Anti-Money Laundering (AML) Audit
A money services business (MSB) and small dollar lender requested an independent audit of its anti-money laundering (AML) compliance program. The engagement was based on regulatory guidance and the relevant requirements of the Federal Financial Institutions Examination Council (FFIEC) Examination Procedures. We assessed the AML Program commensurate with the company’s risk profile and focused the program on the “four pillars” of AML compliance including development of internal policies, procedures, and related controls; designation of a Bank Secrecy Act compliance officer; effective training program; and independent review for compliance. As part of the engagement, we also reviewed the company’s AML risk assessment for adequacy and completeness. The MSB received a report outlining findings and recommendations for a more robust and compliant AML program.
Client Type
Consumer Finance – Money Services Business
Service Type
Compliance Audit
Anti-Money Laundering/Countering the Financing of Terrorism
CrossCheck performs Anti-Money Laundering/Countering the Financing of Terrorism independent audits for the various client segments it serves. Our approach is based on the examination guidelines published by the Federal Financial Institutions Examination Council (FFIEC) and FinCEN requirements. An independent audit provides management with an unbiased assessment of compliance with the anti-money laundering requirements and raises the state of regulatory compliance within the institution. The recommendations we provide help improve operational and compliance controls.
Client Type
Regional Bank ($10 – $50 billion in assets)
Intermediate Bank ($1 – $10 billion in assets)
Community Bank (<$1 billion in assets)
Mortgage Banking – Originator
Mortgage Banking – Servicer
Consumer Finance
Service Type
Independent Audit
Audit Co-Source
Continued growth and increased regulatory scrutiny prompted a client to have CrossCheck assist them with the implementation of an internal audit function. After developing an audit charter, performing an audit risk assessment, and providing a multi-year internal audit plan, we assigned experienced internal audit consultants to complete the audit plan. The goal of an internal audit is to identify areas for improvement in the institution’s control environment, policies, procedures and practices, and to provide practical, sustainable recommendations that address the root cause of issues identified. Each internal audit consultant assigned to the engagement was equipped with the knowledge and experience needed to fully understand the functional area being audited and make value added recommendations. In addition to completing the audit plan each year, we regularly provide reports to the Audit Committee of the Board of Directors, and provide ongoing consultation to the institution as needed.
Client Type
Intermediate Bank – ($1 – $10 billion in assets)
Community Bank (<$1 billion in assets)
Credit Union
Mortgage Banking – Originator
Mortgage Banking – Servicer
Service Type
Audit Function Development
Auto Finance Review
Review of the auto finance program covering the various elements of the auto loan life cycle, including origination and servicing processes. Such reviews include assessment of the quality of the credit union’s CMS for detecting and preventing violations of Federal regulations applicable to auto loan origination or servicing and identification of credit union practices that increase the risk of harm to consumers. CrossCheck’s reviews incorporate the CFPB’s examination procedures covering the following modules:
-
- Credit Union Business Model
- CMS
- Advertising and Marketing
- Application and Origination
- Payment Processing, Account Maintenance, and Optional Products
- Collections, Debt Restructuring, Repossessions, and Accounts in Bankruptcy
- Customer Complaints and Inquiries
- Credit Reporting, Information Sharing, and Privacy
Client Type
Credit Union
Service Type
Independent Compliance Review
California Department of Financial Protection and Innovation (DFPI, formerly DBO) Per Diem Interest Audit
Assisted a large mortgage lender defend allegations by the Department of Business Oversight that it had not properly computed per diem interest on California loan closings. The lender engaged CrossCheck to perform an audit of a sample of loans selected by the DBO and recompute the per diem interest. Our findings and insights helped the lender favorably resolve the allegations with the DBO, improve their processes and avoid significant fines.
Client Type
Mortgage Company
Law Firm
Service Type
Compliance Audit
CFPB MOU Remediation
After receiving a memorandum of understanding (MOU) from the CFPB, one of the largest independent mortgage originator/servicers engaged CrossCheck – upon CFPB non-objection – to conduct a look-back of several thousand loan modifications made over a two-year period. We reviewed each modification to determine if fees assessed and cash contributions granted as part of the approved loan workout were calculated and disclosed properly to the borrower. Detailed reporting, including identifying refunds to affected borrowers, was provided to the CFPB. As a result, the client was able to meet the CFPB’s requirements in a timely manner.
Client Type
Mortgage Banking – Servicer
Service Type
Compliance Consultation – Issue Remediation
CFPB Readiness Exams
With implementation of the Dodd-Frank Act, mortgage companies became subject to examination by the Consumer Financial Protection Bureau (CFPB). Mortgage originators and servicers alike have engaged CrossCheck to assess their readiness for these examinations. Our approach for the review is based on the CFPB examination guidance and our findings enabled the originator/servicer to remediate issues prior to the exam thereby improving their compliance management system and reducing the potential for regulatory criticism.
Client Type
Mortgage Banking – Originator
Mortgage Banking – Servicer
Service Type
Compliance Consultation
Commercial Loan Portfolio Annual Review
CrossCheck performs reviews of an institution’s commercial loan portfolio that includes assessment of underwriting and credit administrations standards and practices; effectiveness of risk identification activities, including the ratings attributed to individual loan relationships and the overall portfolio; and risk management protocols to identify, measure, monitor, and manage portfolio risk. The review provides the institution with an evaluation of its process and verification of the level of credit risk in its commercial loan portfolio.
Client Type
Intermediate Bank ($1 to $10 billion in assets)
Service Type
Independent Loan Review
Community Credit Needs Assessment
A community credit needs assessment (CCNA) was performed of the client’s primary mortgage lending market, focused on majority-Black or Hispanic census tracts (MBHCTs). The evaluation included analyses of mortgage lending, demographic, socioeconomic, and housing characteristics. Key findings discovered through statistical analysis, community contacts, and local reports indicated significant community credit needs. The mortgage lending market analysis showed distinct differences in product demand and borrower characteristics, with MBHCTs exhibiting unique needs and preferences compared to other tracts in the market. Geographic analysis showed how these needs varied regionally between MBHCT neighborhoods. Successful peer strategies and government loan programs were also reviewed to document existing products and services addressing the community credit needs. CrossCheck identified several opportunities for the client, including loan subsidy fund uses, financial education initiatives, community development partnerships, and targeted outreach efforts.
Client Type
Banks
Service Type
Community Credit Needs Assessment
Compliance Management System (CMS)
The unique relationships between an industrial bank and its strategic partners require the bank to maintain its own effective compliance management system (CMS), including a robust vendor management program comprising strong oversight of the operations and the CMS of its strategic partners. CrossCheck has completed reviews of the CMS of both sides of such relationships, ensuring that the bank’s CMS meets the requirements of its regulatory agency, while also tailoring the CMS reviews of the strategic partners to their individual operations using the bank’s overarching CMS guidance. These reviews include transaction testing of a judgmental sample of various loan products for compliance with applicable federal regulations. Products covered include private label credit cards, unsecured personal loans, and small business lending.
Client Type
Industrial Banks
Fintech
Service Type
Independent Compliance Review
Compliance Management System (CMS) Audit
A money services business (MSB) and small dollar lender requested an audit of their compliance management system (CMS) and consumer lending practices including loan origination, payment processing & servicing, returned item processing, and credit bureau reporting. The objective was to assess the effectiveness, accuracy, and timeliness of the client’s compliance controls and processes and to provide recommendations for policy and control improvements, as well as best-practice solutions to mitigate audit findings and their associated risks. The MSB received a report outlining regulatory findings and improvements to their process to help deter future regulatory issues and improve operational efficiencies.
Client Type
Consumer Finance – Money Services Business
Service Type
Compliance Audit
Compliance Management Systems (CMS)
As non-depository mortgage entities and fintechs align their internal control structures with the expectations of the CFPB, numerous clients have engaged CrossCheck to perform compliance management system (CMS) assessments of the two interdependent control components of an effective CMS which include:
- Board and Management Oversight; and
- Compliance Program, which includes:
- Policies and procedures;
- Training;
- Monitoring and/or audit; and
- Consumer complaint response
Our approach is based on the CFPB supervisory guidance and industry best practices. Our findings assist the client in strengthening the pillars for a more robust, fully operational and sustainable CMS.
Client Type
Mortgage Banking – Originator
Mortgage Banking – Servicer
Fintech
Service Type
Independent Compliance Review
Compliance Policy and Procedures Development
As the regulatory environment and the requirements imposed on financial institutions continue to evolve, CrossCheck has been engaged by a variety of mortgage entities and community banks to review and enhance compliance related policies and procedures. This has also included the development of required policies that previously did not exist, enabling the client to strengthen the governance and internal controls within the organization.
Client Type
Community Bank (<$1 billion in assets)
Mortgage Banking – Servicer
Service Type
Compliance Consultation
CRA Parity Analysis
We assisted the bank in developing a Community Reinvestment Act (CRA) parity analysis to identify gaps in mortgage, small business, and small farm lending performance. Parity was established using owner occupied properties for mortgage and the distribution of businesses and farms for small business and small farm lending performance comparison. Distribution analysis identified deficiencies in the bank’s assessment area and at the branch level. The information provided the institution an opportunity to proactively address its HMDA and CRA lending performance.
Client Type
Intermediate Bank ($1 to <$10 billion in assets)
Service Type
CRA Parity Analysis
CRA Performance Review
We prepared a Community Reinvestment Act (CRA) performance evaluation for the bank in anticipation of its upcoming CRA examination. The performance evaluation is based on the regulatory CRA examination procedures and describes the bank’s efforts to meet the needs of the communities it serves. The engagement addressed the bank’s performance under the lending test, service test, investment test, and related community outreach efforts. Performance analytics incorporate performance context including demographics, peer performance, and other socioeconomic data.
Client Type
Intermediate Bank ($1 to <$10 billion in assets)
Service Type
CRA Performance Review
Due Diligence Review
CrossCheck was engaged to perform an assessment of an acquisition target’s commercial loan portfolio and other real estate owned to identify concerns regarding the quality and collectability of the portfolio prior to purchase. CrossCheck’s review uncovered the lack of both adequate loan monitoring and basic loan administration procedures. This independent assessment allowed our client, the acquiring bank, to proceed with the transaction informed of the potential risks inherent in the portfolio.
Client Type
Community Bank (<$1 billion in assets)
Service Type
Due Diligence
Due Diligence Review of Residential Mortgage Loans
We were engaged by a regional bank to review a sample of loans from three proposed separate bulk whole loan purchases. The bank requested we determine whether the portfolios which were predominately conventional and jumbo loans, were originated in compliance with regulatory requirements. All disclosures required by Regulation Z- Truth-in-Lending and Regulation X – Real Estate Settlement Act, including TRID as well as other compliance requirements such as flood insurance, Private Mortgage Insurance and Higher Priced Mortgages were included. The full review included examination of over 200 regulatory compliance questions per loan file as well as state disclosures for the 34 states within our sample. The weighted average maturity of the loans ranged from 3 months to 24 months. At the conclusion of the review, CrossCheck provided the bank with a summary of findings identifying high, medium and low risks for each loan so the bank could assess acceptable risk levels for each of the bulk whole loans considered for purchase.
Client Type
Regional Bank ($10-$50B in assets)
Service Type
Independent Compliance Review
Fair Lending Advisory
We provided fair lending advisory services to a national lender on development of statistical models designed to assess fair lending risk associated with marketing, underwriting, pricing, and loss mitigation. Assistance included the review of analytical results to assess and identify potential risk of disparate treatment, disparate impact and redlining. One of our fair lending practice experts participated in client meetings to review model data requirements, analytical approach, methodology for identifying fair lending risks, and review of results. Our advice and guidance resulted in the modification of existing models and development of new models to enhance fair lending risk management efforts, as well as internal business justification of specific business practices.
Client Type
Large Bank ($50+ billion in assets)
Consumer Finance
Service Type
Advisory
Fair Lending and UDAAP Audit Program Development
One of the pillars of an effective fair lending compliance management system (FL CMS) is the independent review or audit of the fair lending and responsible lending program. We assisted the company’s internal audit function in developing audit programs to assess the effectiveness of fair lending and Unfair, Deceptive or Abusive Acts or Practices (UDAAP) risk management efforts. The audit program addressed both loan origination and servicing processes and was based on the Consumer Financial Protection Bureau’s examination procedures and industry best practices. We conducted management interviews to ensure a clear understanding of the products and services in order to tailor the audit program to the company’s activities. These interviews provided the ancillary benefit of added fair lending awareness for the management team and the internal audit function. The mortgage company received a customized audit program designed to address fair lending and UDAAP risks associated with their business model.
Client Type
Mortgage Company
Service Type
Program Review / Audit
Fair Lending Examination Assistance
Subsequent to a regulatory examination, we were engaged in an advisory role and in partnership with the bank’s legal counsel. Assistance included responses to examination requests for additional information, independent review of redlining risk and preparation for potential referral to the Department of Justice.
Client Type
Regional Bank ($10 – $50 billion in assets)
Service Type
Advisory
Fair Lending Performance Review
We performed an analysis of the bank’s HMDA lending activity to identify 1) differences in levels of assistance based on the timing of decisions and final disposition of applications; 2) disparities in application outcomes including origination, denial, and non-decisioned applications; 3) pricing variances related to the frequency and magnitude of differences in APR and rate spread; 4) steering of applicants to particular products or sales channels; and 5) redlining analysis to identify potential geographic and demographic gaps in higher minority geographies. The analyses provided the bank the information necessary to effectively manage fair lending performance risk.
Client Type
Intermediate Bank ($1 to <$10 billion in assets)
Service Type
Performance Analysis
Fair Lending Program Audit
We were engaged to perform an audit of the bank’s fair lending compliance management system (FL CMS) in coordination with the internal audit department. The objective of the engagement was for CrossCheck to provide deeper expertise to the audit team. The scope of the audit included program governance, roles and responsibilities, policies, monitoring, and analytics. Line of business interviews helped to identify risks associated with marketing, access to credit, credit risk management, and loan pricing. The audit team now has a better understanding of fair lending risks and controls and management has received valuable feedback to help improve its fair lending CMS.
Client Type
Regional Bank ($10 – $50 billion in assets)
Service Type
Program Review / Audit
Fair Lending Program Review
We conducted a comprehensive evaluation of the bank’s fair lending compliance management system (FL CMS). The review included an assessment of board management and oversight, preventive and detective controls, complaint management, and third party risks. We provided recommendations to enhance the bank’s fair lending program and assisted in the revision of policies and procedures.
Client Type
Regional Bank ($10 – $50 billion in assets)
Service Type
Program Review/Audit
False Claims Act Lawsuit
Realtors, on behalf of the federal government, brought a False Claims Act lawsuit against one of the largest mortgage servicers, alleging they had not properly performed HAMP modifications. CrossCheck reviewed and responded to the realtors’ allegations, providing expert testimony that helped the client achieve a favorable settlement.
Client Type
Mortgage Servicer
Law Firm
Service Type
Expert Testimony
Foreclosure Management Look-Backs
CrossCheck has executed numerous default management and foreclosure reviews. The objectives for these reviews aligned with the lookback requirements outlined in the Consent Orders issued to the 14 largest loan servicers in 2011. Each review included the requirements set forth by the CFPB related to early Intervention with delinquent borrowers, continuity of contact, loss mitigation procedures, and foreclosure processing. These reviews have kept the clients in compliance with regulatory requirements and allowed the clients to improve their operational controls.
Client Type
Regional Bank ($10 – $50 billion in assets)
Mortgage Banking – Servicer
Service Type
Loss Mitigation
GSE Repurchase Reviews
CrossCheck has assisted a number of its clients who received repurchase requests from Fannie Mae and/or Freddie Mac. CrossCheck performed a forensic review to verify the allegations in the GSE repurchase demand. Where appropriate, CrossCheck prepared the rebuttal letter and supporting evidentiary file, successfully rebutting thousands of repurchase demands.
Client Type
Large Bank ($50 billion + in assets)
Service Type
Portfolio Review
HAMP Class Action
A plaintiff brought a class action regarding HAMP modifications against one of the largest banks. Counsel engaged CrossCheck to review the mortgage servicing files. We prepared an expert report and provided deposition testimony, which resulted in denial of class certification.
Client Type
Large Bank ($50 billion + in assets)
Law Firm
Service Type
Expert Testimony
HAMP Expert Testimony
Counsel for a top-five bank engaged CrossCheck on several cases to review plaintiffs’ declined HAMP modifications. We prepared an expert report and provided deposition testimony, resulting in favorable settlements for the bank.
Client Type
Large Bank ($50 billion + in assets)
Law Firm
Service Type
Expert Testimony
HMDA Data Integrity
We have assisted numerous mortgage companies in validating the accuracy of Home Mortgage Disclosure Act (HMDA) data previously submitted or in preparation for an upcoming submission. Our approach to HMDA data errors and omissions testing integrates systemic data routines to identify conflicts between loan origination systems (LOS) and HMDA data. Identifying statistical anomalies or “red flags” when compared to peers and/or national aggregate data is a first step that helps focus the review. Through this approach we are able to ascertain the root cause of identified data issues, provide the framework for enhancing system controls, and enabling automated corrections to the LAR resulting in improved data integrity today and for future submissions.
Client Type
Mortgage Company
Service Type
HMDA Data Integrity
Internal Audit Plan Development and Risk Assessment
Continued growth and increased regulatory and investor scrutiny have prompted a number of mid-size, private non-depository mortgage servicers, originators, and fintech companies to implement an internal audit function. CrossCheck deploys experienced and certified internal auditors to assist with development of an internal audit plan including a risk assessment, audit schedule, and management and board reporting. CrossCheck also executes the plan and provides consultation to the institution as needed on a full out-sourced or co-sourced partner arrangement. As a result, clients have an understanding of the key operational and compliance risks in their company and are successful in meeting investor (e.g. Fannie Mae MORA), state, and CFPB requirements.
Client Type
Mortgage Banking – Originator
Mortgage Banking – Servicer
Fintech
Service Type
Audit Function Development
Loan and Credit Risk Process Review
A credit union experiencing rapid growth of its member business loan portfolio requested an independent review of its business loan portfolio and related loan policies and procedures to ensure adherence to safety and soundness expectations. While overall policies and procedures were satisfactory, recommendations were made to enhance loan review procedures and compliance with the Flood Disaster Protection Act and implementing regulations. Our review facilitated a stronger business loan risk management process and attendant flood compliance procedures to help avoid potential monetary penalties.
Client Type
Credit Union ($1 – $10 billion in assets)
Service Type
Member Business Loan Review and Policy and Procedures Review
Loan Exception Policy and Procedure Review
CrossCheck conducted an independent review of the bank’s updated policy and procedure for the tracking and reporting of loan exceptions pursuant to criticism from its prudential regulator. Applicable regulatory requirements, prudent business practices, and CrossCheck’s years of experience were the basis for recommendations to further enhance controls and processes and meet regulatory and business requirements.
Client Type
Intermediate Bank ($1 – $10 billion in assets)
Service Type
Policy and Procedures Review
Mortgage Electronic Registration Systems, Inc. (MERS®) Independent Audit
Institutions with more than 1,000 mortgage loans registered with MERS® are required to have an independent third party monitor their process for obtaining, retaining, reconciling, and submitting mortgage registration data against their MERS® quality assurance plans. We have performed this role for a number of servicers, providing both the servicer and MERS® with an unbiased evaluation of the servicer’s procedures for complying with MERS® rules and requirements. Additionally, as servicers near the 1,000 registered loan threshold CrossCheck has assisted in developing and implementing the procedures needed to successfully meet the MERS® annual requirements.
Client Type
Mortgage Banking – Servicer
Community Bank (<$1 billion in assets)
Intermediate Bank ($1 – $10 billion in assets)
Regional Bank ($10 – $50 billion in assets)
Large Bank (over $50 billion in assets)
Service Type
Operational Audit
Mortgage Electronic Registration Systems, Inc. (MERS®) System to System Reconciliation
Mortgage servicers are required to reconcile its System of Record to the MERS® System data monthly or quarterly if servicing fewer than 1,000 mortgage identification number (“MIN”) records. CrossCheck completes this reconciliation quickly and seamlessly ensuring all the required data elements including “required and conditionally required fields” are reconciled to the MERS® system. Once the data extracts are provided, CrossCheck’s data engineers complete the reconciliation and provide detailed reports of the differences identified so they can be remediated.
Client Type
Mortgage Banking – Servicer
Community Bank (<$1 billion in assets)
Regional Bank ($10 – $50 billion in assets)
Service Type
Operational Audit
Mortgage Fraud Review
The mortgage subsidiary of one of the nation’s largest banks requested a forensic review of residential mortgage loans acquired from various mortgage lenders and correspondent banks. CrossCheck’s team of mortgage fraud experts reviewed loans to determine the existence of material misrepresentation, which would result in a request to repurchase the loan. CrossCheck determined on which loans repurchase should be requested and prepared the supporting evidentiary file, resulting in millions of dollars in mortgage putbacks.
Client Type
Large Bank ($50 billion + in assets)
Service Type
Portfolio Review
Mortgage Operations Audit
The client requested CrossCheck perform an assessment of its mortgage and home equity operations. The scope and objective of this review included an assessment of compliance with applicable consumer and safety and soundness regulations, evaluation of internal controls, determination of adherence to and effectiveness of the bank’s policies and procedures, and comparison to industry standards and best practices. This independent review provided the client with an unbiased evaluation to strengthen its operations and reduce its overall risk exposure.
Client Type
Regional Bank ($10 – $50 billion in assets)
Service Type
Compliance Audit
Operational Audit
Mortgage Servicing Review
One of the nation’s largest banks, serving as trustee on various mortgage-backed securities, wanted to assess the performance of the servicer of the trust’s loans. CrossCheck performed this review, allowing the trustee to have a reliable understanding of the servicer’s performance.
Client Type
Large Bank ($50 billion + in assets)
Law Firm
Litigation Support Firm
Service Type
File Review
Mortgage-backed Securities Settlement Evaluation
CrossCheck partnered with a major litigation support firm to provide an opinion as to the fairness of a proposed settlement between an RMBS issuer and various investor groups. CrossCheck supervised the review of several thousand loans sampled from multiple RMBS trusts in order to evaluate the proposed settlement amount. The work resulted in approval of the proposed settlement.
Client Type
Large Bank $50 billion +
Litigation Support Firm
Service Type
Expert Support
Portfolio Purchase for Large Nationwide Mortgage Company
A national mortgage lender sought to acquire several mortgage companies. Our client asked us to review samples of loans from each prospective acquiree to evaluate loan quality, for both underwriting and compliance, prior to moving forward on the acquisition.
Client Type
Mortgage Companies
Service Type
Portfolio Acquisitions
Post Closing Quality Control/Denied Applications
Wishing to assure the quality and integrity of its consolidated student loan originations, a bank has engaged CrossCheck to perform quality control reviews on a sample of its monthly originations and denials. CrossCheck reviews the underwriting and compliance of the loans, and provides a monthly report on its findings, which includes trending analysis. As a result, the bank has confidence that its student loans and securities they back conform to the bank’s and markets high standards.
Client Type
Community Bank (<$1 billion in assets)
Service Type
Quality Assurance
Post-Purchase Portfolio Review
Upon a client’s acquisition of the assets of a failed bank, CrossCheck performed a credit and documentation review of the acquired loans and interviewed loan department personnel at the failed bank. The review uncovered issues and loan documentation errors that posed credit and financial risk to our client. Our review provided the information needed to address ongoing administration of the acquired loans thereby mitigating future credit and financial risk of loss.
Client Type
Intermediate Bank ($1 – $10 billion in assets)
Service Type
Portfolio Review
Predatory Lending Litigation
A borrower sued the client, a national mortgage lender, alleging that the lender engaged in predatory lending and loan flipping. CrossCheck reviewed the underwriting of the subject mortgage loan and provided expert opinions on the quality of the underwriting (including the borrower’s ability to repay), benefit to the borrower, and suitability of the type of loan. As a result, the client was able to achieve a favorable settlement of the case.
Client Type
Mortgage Banker
Law Firm
Service Type
Expert Testimony
Review of New Products and Services
A fintech company sought consulting services to assist them with a review of its home equity line of credit (“HELOC”) program documents by counsel licensed in 48 states. CrossCheck Compliance utilized its relationships with financial services law firms to source local counsel in each of the states with the expertise to perform the state specific reviews and managed the process including negotiating the services/fees of local counsel on behalf of the client, providing instructions for the reviews, responding to questions, tracking status, deliverables, and managing the invoicing/billing of the client. As a result of this engagement, the client was able to quickly and cost effectively roll out its HELOC program nationwide with a built-in network of legal counsel to support future needs.
Client Type
Fintech
Law Firm
Service Type
Compliance Consultation
RMBS Investor Litigation
Mortgage-backed securities investors, including government-sponsored enterprises regulated by FHFA, have filed actions under the Securities Exchange Act of 1933 and various state investment acts. Defendants’ counsel has retained CrossCheck to provide loan file review and expert testimony on many of these cases. We review the mortgage loan files underlying the security to evaluate the original underwriting and due diligence process. We determine the consistency of the loan portfolio’s attributes with security offering documents. CrossCheck has utilized its experience with loan products and underwriting standards to provide evaluations relevant to the historical context in which the loans were originated. Our work has culminated in expert reports, deposition testimony, and trial testimony.
Client Type
Large Bank ($50 Billion + in assets)
Law Firm
Litigation Support Firm
Service Type
Expert Testimony
Second Lien Portfolio Repurchase Review
A large regional bank, who had purchased a portfolio of second lien loans on a servicing retained basis, was concerned that the original underwriting was not as represented and was dissatisfied with the servicing. CrossCheck reviewed the loan origination and servicing contracts to understand each party’s rights (e.g. repurchase, termination of servicing) and performed a thorough review of the loan origination and servicing files. We provided our opinions regarding servicing in accordance with the contract and industry-standard practices. We also evaluated underwriting exceptions, compliance issues, and misrepresentation. As a result, the client was able to negotiate a favorable settlement and move the portfolio to another servicer.
Client Type
Regional bank ($10 – $50 billion in assets)
Service Type
Portfolio Review
Securitization Due Diligence
In anticipation of securitization, multiple clients have engaged CrossCheck to perform due diligence on non-QM portfolios. The reviews are designed to meet rating agency requirements and included analyses of credit, compliance, collateral, and data accuracy.
Client Type
Mortgage Companies
Service Type
Rated Securitizations
Telephone Consumer Protection Act (TCPA) and Fair Debt Collection Practices Act (FDCPA)
Due to the growth of class action TCPA litigation and settlements, the client engaged CrossCheck to perform a targeted review of its debt collection practices with a focus on compliance with TCPA requirements. Our engagement covered the client’s practices as well as the client’s third-party loan servicer and collection agents and included a review of policies and procedures related to FDCPA and TCPA, the client’s internal monitoring of its own collectors as well as the third parties, and specific transaction testing. The transaction testing focused on both written communication (collections letters and notices) related to past-due and charged-off accounts as well as review of recordings of collections calls initiated manually and by predictive auto-dialing equipment. Our approach included an in-depth review of recent TCPA litigation to provide useful recommendations for the client to consider as management strengthens its TCPA policies and procedures.
Client Type
Credit Unions
Service Type
Independent Compliance Review
Training
Clients taking a proactive approach or responding to regulatory finding have engaged CrossCheck to prepare and conduct a variety of training sessions for business lines, senior management, and board committees. Training topics included Home Mortgage Disclosure Act; Community Reinvestment Act requirements; Bank Secrecy/Anti-Money Laundering, and loan servicing rules. As a result of the training, clients have enhanced internal training curriculums and procedural documentation.
Client Type
Community Bank (<$1 billion in assets)
Mortgage Banking – Originator
Mortgage Banking – Servicer
Service Type
Compliance Consultation
Truth in Lending and RESPA Integrated Disclosure (TRID) Compliance Monitoring
With all the challenges and nuances of the new Know Before You Owe (TRID) rules, management requested CrossCheck perform quarterly monitoring of its compliance with the TRID requirements. We established a quarterly process to select and review a sample of the bank’s new loan production, stratifying the sample for higher risk issues and out of tolerance situations that could result in expensive customer reimbursements. We identified the root causes of many of the issues, and recommended operational enhancements to reduce recurrence of errors. Management used the trending analysis reports we provided to track progress over time, and was able to make the operational changes it needed to address compliance going forward.
Client Type
Intermediate Bank ($1 – $10 billion in assets)
Service Type
Compliance Audit
Unfair, Deceptive, or Abusive Acts or Practices (UDAAP) and Debt Protection Products
Due to regulatory concerns related to UDAAP compliance, the bank requested CrossCheck assist with a multi-phased review of its administration of debt protection products including a look-back of thousands of customer loans with debt protection originated over several years. We provided a project manager and a team of a dozen consultants.The project manager assisted in developing the methodology to complete the review, trained the review team, provided management reporting, and maintained quality assurance throughout the project. Detailed analysis of each customer’s activity and loan servicing was performed over the life of the loan to identify situations that resulted in customer harm. Recommendations for customer remediation were provided to management. We also provided management with the information it needed to evaluate its practices, and take appropriate corrective action to mitigate any future risk and the potential for consumer harm.
Client Type
Regional Bank – ($10 – $50 billion in assets)
Service Type
Compliance Consultation – Issue Remediation
Website Compliance Review
Continued growth and the ensuing regulatory scrutiny led a large credit union to request a compliance review of its extensive website. CrossCheck focused the review on the advertising provisions of all applicable regulations, including those specific to credit unions, as well as potential UDAAP pitfalls. The review encompassed all pages and all links on the company’s website. The resulting report detailed regulatory findings and recommendations for correction. Of added value in this review is a list of weblinks that were either broken or resulted in an unexpected ‘landing,’ which could cause user frustration and increased complaints. For ease of correction, the report included both the link to the page and a screenshot highlighting the subject of the report comment.
Client Type
Credit Unions
Regional Bank ($10-$50 billion in assets)
Service Type
Independent Compliance Review
