Internal or External Compliance Testing Sample Clauses

The Internal or External Compliance Testing clause establishes the right or obligation for a party to conduct assessments to ensure adherence to relevant laws, regulations, or contractual requirements. This may involve periodic audits, reviews, or inspections performed either by the organization itself (internal) or by independent third parties (external). By enabling such testing, the clause helps identify and address compliance issues proactively, thereby reducing legal and operational risks and ensuring ongoing conformity with applicable standards.
Internal or External Compliance Testing. Nationstar shall conduct transactional testing and compliance/controls testing, either internally or by retaining the services of a third-party firm, to assess Nationstar’s compliance with the Servicing Standards attached as Exhibit A to this Agreement. The testing shall be conducted in the ordinary course of Nationstar’s business consistent with industry standards and Nationstar’s internal testing schedule, which shall be based on an assessment of high-risk areas and emerging trends. a. All internal testing of compliance with the Servicing Standards will be conducted via three separate “lines of defense.” First, at the business level, business line managers will monitor routine operations to identify potential issues and evaluate operations for risk. Second, the Risk and Compliance department will conduct tests of both random and targeted loan populations. Third, the IAD will conduct risk- based testing. b. As part of its compliance testing, Nationstar shall conduct monthly tests for loans from all fifty states. Each test will be comprised of a review of an appropriate and representative sample to assess compliance. Testing will include inspection of loan documentation, review of loan servicing system notes or data, and management inquiries/interviews.
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Related to Internal or External Compliance Testing

  • Internal Controls The Company shall maintain a system of internal accounting controls sufficient to provide reasonable assurances that: (i) transactions are executed in accordance with management’s general or specific authorization; (ii) transactions are recorded as necessary in order to permit preparation of financial statements in accordance with GAAP and to maintain accountability for assets; (iii) access to assets is permitted only in accordance with management’s general or specific authorization; and (iv) the recorded accountability for assets is compared with existing assets at reasonable intervals and appropriate action is taken with respect to any differences.

  • Disclosure Controls and Procedures; Deficiencies in or Changes to Internal Control Over Financial Reporting The Company has established and maintains disclosure controls and procedures (as defined in Rules 13a-15 and 15d-15 under the Exchange Act), which (i) are designed to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to the Company’s principal executive officer and its principal financial officer by others within those entities, particularly during the periods in which the periodic reports required under the Exchange Act are being prepared; (ii) have been evaluated by management of the Company for effectiveness as of the end of the Company’s most recent fiscal quarter; and (iii) are effective in all material respects to perform the functions for which they were established. Since the end of the Company’s most recent audited fiscal year, there have been no significant deficiencies or material weakness in the Company’s internal control over financial reporting (whether or not remediated) and no change in the Company’s internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting. The Company is not aware of any change in its internal control over financial reporting that has occurred during its most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.