CORE Review: Doing Better Business Together
A Consultative Review to Evaluate a Counterparty's Mortgage Operations
Freddie Mac's Counterparty Operational Risk Evaluation (CORE) team conducts operational reviews of pre-selected counterparties to assess if effective controls and processes are in place to originate, deliver and service loans for Freddie Mac. In addition, CORE performs reviews of Document Custodians to ensure the Custodian complies with all Freddie Mac requirements regarding Note Custody and Custodian eligibility requirements.
What is a CORE Review?
A CORE review is not an audit, but an informal, consultative assessment to ensure your controls are effective and compliant with the requirements of the Single-Family Seller/Servicer Guide (Guide).
The review consists of three phases: Pre-Review, On-site Review and Post-Review. The on-site review can last 3 to 5 days. At the end of each review day, we'll share our observations, review our progress and discuss the status of any outstanding items.
Your CORE Liaison
Your CORE liaison will take a holistic view of the processes and controls you have in place – from origination to closing and on through servicing for Sellers & Servicers, and Note certification and management for document custodians. Think of your liaison as your partner in the review process. Your liaison will work with you every step of the way to manage review logistics and answer your questions.
Benefits of a CORE Review
Through the collaborative nature of the CORE review process, you'll obtain an independent assessment of your level of compliance with Freddie Mac guidelines and requirements within each area of your mortgage operation. Your CORE review:
- Identifies and reduces risk.
- Provides valuable insight into your mortgage operations relative to Freddie Mac requirements.
- Shares best practices to address identified weaknesses.
- Helps strengthen your internal controls and processes.
- Provides opportunities to share your feedback with us.
Throughout the review, we make the process as smooth and seamless as possible, with little disruption to your daily business operations.
When the review is complete, you'll receive a report of the findings we've identified, which will help you enhance and strengthen your controls and processes.
For a detailed look at what the CORE review entails – including the Pre-Review, On-site Review and Post-Review phases – read What to Expect from a CORE Review, and What to Expect from a CORE Document Custodian Review.