Common use of Nationstar’s Internal Audit Clause in Contracts

Nationstar’s Internal Audit. Nationstar’s IAD shall conduct audits of Nationstar’s servicing functions, including Nationstar’s compliance with the Servicing Standards. The IAD shall include the Servicing Standards in its annual risk assessment, which forms the basis for its annual audit plan, and shall conduct audits in accordance with its annual risk assessment and annual audit plan. Nationstar’s internal auditing schedule shall be based on an assessment of high risk areas and emerging trends. The audits shall be conducted in the ordinary course of Nationstar’s business consistent with industry standards and this Agreement. a. As part of its internal audit program, Nationstar shall conduct audits using a risk- based approach. Nationstar will conduct an annual risk assessment (including servicing reviews) to determine the frequency at which each Servicing Standard shall be tested. Nationstar shall assess compliance with each Servicing Standard by reviewing an appropriate and representative sample. Sample populations will be selected based on the attributes of the process and control that is being tested and will be reviewed for completeness and accuracy. b. Nationstar shall provide the annual audit plan for the Servicing Standards to the Executive Committee at least 30 days prior to the Implementation Date. The audit plan shall include the proposed schedule by which Nationstar will test each Servicing Standard. If requested by the Executive Committee within 30 days of receipt of the audit plan, the Executive Committee and Nationstar shall participate in a meet and confer to discuss any potential objections or concerns with the audit plan. Nationstar shall also provide any proposed changes to the Executive Committee at least 30 days before the change is to take effect, and the Executive Committee shall have the right to request a meet and confer within 30 days to discuss any potential objects or concerns. c. The annual audit plan, including which audits will be conducted in the coming year, shall be approved by the Audit and Risk Committee of Nationstar’s Board of Directors. The Audit and Risk Committee shall receive summaries of all audit results throughout the year, as well as, progress reports on open issues.