Question:
How can Internal Audit help a mortgage lender comply with the HMDA?
Answer:
One objective of internal audit is to make sure that lenders have a compliant and robust fair lending program in place, which includes complete and accurate HMDA reporting. Internal auditors can review both a lender’s policies and procedures, as well as HMDA data for accuracy and completeness. An internal auditor’s assessment will include, but may not be limited to, a review of the following:
- The process for analyzing and reporting HMDA data;
- HMDA data integrity;
- Actions taken as a result of findings; and
- How policies and procedures are updated to address any process failures and inefficiencies.
