Common use of Internal or External Compliance Testing Clause in Contracts

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.

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 trendsemergingtrends. 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.

Internal or External Compliance Testing. Nationstar shall conduct transactional testing and compliance/controls testing, either internally or by retaining the services of a third-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- 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.