DBR’s Oversight Was Sufficient to Ensure That FHLBanks Managed Mortgage Servicer Risks But Examiners Did Not Follow Steps Outlined in Its 2023 Supervisory Priorities

Date Issued

Friday, March 28, 2025

Submitting OIG

Federal Housing Finance Agency OIG

Agencies Reviewed/Investigated

Federal Housing Finance Agency

Report Number

AUD-2025-003

Report Type

Audit

Agency Wide

Yes

Number of Recommendations

Questioned Costs

Funds for Better Use

Report updated under NDAA 5274

Open Recommendations

This report has 2 open recommendations.

Recommendation Number	Significant Recommendation	Recommended Questioned Costs	Recommended Funds for Better Use
AUD-2025-003-1	No	$0	$0
The Deputy Director, DBR should document the rationale for omitting worksteps for the five examinations not meeting the requirements of the 2023 Supervisory Priorities. As part of the documentation, include a determination of whether a baseline assessment of mortgage servicing was achieved.
AUD-2025-003-2	No	$0	$0
The Deputy Director, DBR should consider whether examination work addressing specific supervisory priorities should be subjected to Examiner-in-Charge, Peer, or Independent Quality Control reviews. Update quality control procedures, as needed, to ensure that they assist management in achieving its objectives (e.g., specific supervisory priorities) and responding to identified risks.