Deloitte and Touche: Compliance Reviews of Ginnie Mae Issuers

Situation
Concentrance Consulting was subcontracted by Deloitte & Touche to perform on-site risk-based reviews of Issuers of Ginnie Mae securities and the associated Document Custodians. These reviews are central to Ginnie Mae assuring that Investors are properly reimbursed, mortgage funds are handled appropriately, and important collateral and investment documents are safe.

Approach
To successfully complete our reviews, Concentrance deployed teams of mortgage finance experts to Issuer and Document Custodian sites around the country. We performed thorough reviews documenting appropriate findings including risk factors to Ginnie Mae. Issuer reviews focused on determining compliance with Ginnie Mae’s established procedures. Document Custodian reviews determined program compliance and verified that undrelying collateral for each security was present and in good order. Areas of focus included facilities and fiscal soundness, management and custodial procedures, and review of collateral documents.

Outcome
Our performance throughout this engagement was well received by the prime contractor and Ginnie Mae.  Our work resulted in a series of well-documented findings for Ginnie Mae that provided concomitant corrective actions to address our findings from the reviews. The end result was enhanced protection of the Ginnie Mae portfolio against frauf and negligence.