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#1499481 - 01/24/11 09:45 PM Loan Audits
Tdollar Offline
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Joined: Jan 2011
Posts: 8
Maybe I should rephrase my question. For those who do audit, do you have any tips, or forms that you could share? I am new to this and looking for any help that I can get. The loan side is what I particularly need to be focused on right now.

Thanks
smile

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Audit
#1499507 - 01/24/11 10:07 PM Re: Loan Audits Tdollar
Irishguy Offline
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Joined: Aug 2008
Posts: 580
Kentucky
BOL had a nice webinar last year entitled "New Headaches in Auditing Residential Real Estate Loans." The presenter even supplied an audit workprogram that was very comprehensive. But I must point out that the webinar focused primarily on compliance issues.

If you are new to audit, you may want to see about attending ICBA's auditing certification courses.

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#1499517 - 01/24/11 10:15 PM Re: Loan Audits Irishguy
Tdollar Offline
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Joined: Jan 2011
Posts: 8
Thank you! I have already put that date on my calendar. It's not until May. Would you happen to have any of the material from that Webinar? smile

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#1500418 - 01/26/11 04:03 PM Re: Loan Audits Tdollar
Irishguy Offline
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Irishguy
Joined: Aug 2008
Posts: 580
Kentucky
The Webinar can be purchased from BOL. Here is the link:

http://www.bankersonline.com/bankerstore/index.php?main_page=product_info&products_id=984

Even though it is archived, you will still get the materials and they are well worth it. I hope this helps!

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#1506325 - 02/07/11 09:40 PM Re: Loan Audits Irishguy
ahkcompliance Offline
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Joined: Sep 2008
Posts: 2,470
Midwest
After performing a loan audit, do you keep your audit findings in the file? I've been comtemplating if I should keep in file to prove that I found the error but then again don't want to open up anything hoping an examiner doesn't see it??

Curious to see what others do.

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#1506404 - 02/08/11 12:29 AM Re: Loan Audits ahkcompliance
rlcarey Offline
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rlcarey
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Posts: 78,649
Galveston, TX
If you don't save your workpapers with the documented findings, sample sizes, sample populations, etc., many examiners will just totally discount the audit findings and start doing thier own digging.
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#1506471 - 02/08/11 01:57 PM Re: Loan Audits ahkcompliance
A_G Offline
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Posts: 18,957
Originally Posted By: ahkcompliance
After performing a loan audit, do you keep your audit findings in the file? I've been comtemplating if I should keep in file to prove that I found the error but then again don't want to open up anything hoping an examiner doesn't see it??


You're in audit - that's your job.

Imo, both unprofessional and unethical if you are the IA. Just imagine if an examiner found out you did this.
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#1506647 - 02/08/11 05:23 PM Re: Loan Audits A_G
#12 Offline
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Posts: 1,338
I think ahkcompliance is talking about keeping the audit findings in the actual loan file. I do not. I keep my loan review worksheets with the rest of my workpapers.
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#1507048 - 02/09/11 01:25 PM Re: Loan Audits #12
CEK Offline
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Joined: Jul 2009
Posts: 34
GA
Here is an Examiners' Training Site that may be of interest to you since it provides Loan Review training for new examiners. Whatever audit program you develop or use should consider what the examiner will be looking for when they come onsite.
http://www.stlouisfed.org/col/courses/tool/start/start.cfm?m=040&l=06&s=2.htm
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#1507621 - 02/09/11 08:05 PM Re: Loan Audits CEK
DerrickAuditor Offline
Member
Joined: Mar 2008
Posts: 91
USA
I do not put audit findings in the loan file - but my audit workpapers contain a copy of the disclosure form or whatever was wrong. Examiners will request your audit reports that list all the findings so they are going to see them all anyways. They may or may not ask for your workpapers. Having no findings gives you little credibility.

I've had multiple experiences in which we've issued unsatisfactory audit reports - the examiners reviewed the report and then did some additional testing of their own to confirm management fixed the problems going forward. Because they found no problems after our audit, the examiner did not make any mention of the problems I discovered in their report.

When you have issues with examiners is if your audit report says everything is great and then the examiners find consistent errors that you didn't catch - or worse, they continue to find problems after your audit because management didn't take corrective action.

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#1507955 - 02/10/11 03:15 PM Re: Loan Audits DerrickAuditor
ahkcompliance Offline
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Joined: Sep 2008
Posts: 2,470
Midwest
Thanks #12, that is what I was referring to. I wasn't sure if I should keep in the actual loan file or just start a seperate file. I have seperate file set up for my loan audit reports and workpapers.

Thanks again!

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#1540853 - 04/26/11 04:13 PM Re: Loan Audits ahkcompliance
MTW75 Offline
Member
Joined: Apr 2007
Posts: 64
Lexington, Kentucky
Your audit workpapers should basically serve as a roadmap of everything you did for the audit that led to your report. They should be clear and concise so that anyone can pick up your workpapers and follow them from beginning to end and, using the exact same samples, come to the same conclusions.
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#1543015 - 04/28/11 07:58 PM Re: Loan Audits MTW75
Happy Drugs Offline
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Happy Drugs
Joined: Feb 2007
Posts: 597
Central Texas
I keep all my audits and work papers together in folders. When the examiners come it is all there and when we had our last OCC exam in February they said they liked how easy it was to follow through on everything. I keep these folders in a vault for safekeeping!!
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