We are a mortgage lender in the northeast. We've been a Fannie Mae Seller/Servicer for many years. Our recent MORA audit found some problems handling our Fidelity Bond and Errors and Omissions Insurance. For example, we don't have a process to notify Fannie about losses that exceed $250,000.
Another procedure issue is we do not have a process to evaluate the insurance regularly. We were criticized for not having sufficient documentation to ensure that all insurance requirements are maintained.
MORA found several issues with the insurance itself, such as the deductible not meeting Fannie's requirements and the coverage not meeting Fannie's guidelines.
We now have a few days to correct these findings and convince MORA that this situation is fixed. However, we want to be sure we're on track to give them what they want. So, we're coming to you for some basic guidance on the requirements.
What should we expect a MORA review to examine with regard to the documentation needed for a MORA review of the Fidelity Bond and Error and Omissions insurance?
