What is Internal Audit and is it a Requirement for All TMC Members?

Internal Audit is a function within an organization that independently evaluates the risks to the organization and the control environment that is in place. Typically, Internal Audit reports directly to the Board of Directors or Senior Management and is separate from all other departments to ensure that the evaluation remains independent.
 
Internal Audit is required if you, as a TMC Members, are approved or seeking approval from any of the GSEs, and it is also becoming a requirement for some states. A common deficiency in a Fannie Mae or Freddie Mac review is an inadequate or nonexistent internal audit program.
 
TMC Members approved or seeking to become approved with the GSEs must have, at a minimum, the following three items:

1. Risk Assessment: An assessment that evaluates the various risks of an organization, which may include, but is not limited to, reputational risk, compliance risk, fraud, etc.; and takes into consideration various factors such as past audit results, regulatory requirements, potential for fraud, experience of personnel, growth trends, and date of the last internal audit.
   
2. Policies and Procedures: An Internal Audit Policy and Procedure charter should be approved by the Board of Directors and put into place.
   
3. Audit Plan: A minimum 12-month audit plan should be developed which outlines ongoing audits to be performed. The audit plan should identify low, moderate, and high-risk areas, and the timeline for auditing those areas.

It appears I am required to have Internal Audit, can MQMR help me?

Of course! MQMR’s program has been developed over the previous 4+ years to ensure GSE requirements are met in addition to following the Institution of Internal Auditor (IIA) standards. MQMR has been able to leverage the findings from our clients' MORA and Freddie CORE reviews and conversations with the GSEs to adjust our program to meet Fannie/Freddie's non-published requirements.

MQMR is also offering a substantial Year End Risk Assessment Discount to all TMC Members who sign up for MQMR’s Internal Audit platform before December 31st! Reach out to Jen Peachman, Director of Member Engagement at TMC jpeachman@mtgcoop.com or (440) 342-7817 or MQMR today to find out more about the amazing discount and how MQMR’s suite of services can benefit you in 2018 and beyond!

For additional information regarding MQMR’s services, please contact:

Alan Ridenour
(818) 940-1210