Pre-Audit Questionnaire

Date: Agent Name: Phone Number: E-Mail Address: 1. How many closing/escrow offices does Agent maintain or utilize? None 1 2 3 4 5 If more than (1) closing office, please list locations for other offices - - 2. Does agent have other underwriters? Yes No N/A Please list underwriter companies: - - a. When processing a new title order, how do you determine which underwriter to use? 3. What is the after average number of closings per month? None 1-5 5-10 10-15 15-20 20-25 25-30 30-35 35-40 40-50 50-75 75-100 100+ a. How many sale transactions? None 1-5 5-10 10-15 15-20 20-25 25-30 30-35 35-40 40-50 50-75 75-100 100+ b. How many refinance transactions? None 1-5 5-10 10-15 15-20 20-25 25-30 30-35 35-40 40-50 50-75 75-100 100+ c. What is the average number of closings for the last six months? None 1-5 5-10 10-15 15-20 20-25 25-30 30-35 35-40 40-50 50-75 75-100 100+ 4. How many closers/escrow officers do you have? None 1 2 3 4 5 Please provide name and title of all closers on staff: - - a. Do closers disburse and cleanout the files? Yes No N/A b. Do closers sign checks? Yes No N/A c. Who prepares the figures? (HUD & Balance) d. Do closers obtain HUD approval from the lender before the closing? Yes No N/A e. Upon disbursement, how do you account for underwriter portion of the insurance premium? i. Do you perform the underwriter/agent split upon disbursement? Yes No N/A ii. Do you issue separate checks? Yes No N/A iii. Do you maintain underwriter portion of premium in a trust account until the policy is remitted to the company? Yes No N/A 5. Number of escrow/trust checking accounts maintained by or on behalf of agent? None 1 2 3 4 5 a. How many inactive trust/escrow account(s) does agent maintain? None 1 2 3 4 5 b. Please indicate reason for inactive accounts(s)? c. Do you maintain any separate trust accounts for other underwriter or underwriter premium? Yes No N/A 6. Is any interest earned on escrow and/or trust accounts for the benefit of the agent? Yes No N/A a. Do you maintain a sweep account? Yes No N/A b. What accounts are included in the sweep? None Trust Escrow Operating c. On the face of your Trust/Escrow checks, does it indicate "Trust or Escrow Account? None Trust Escrow 7. Do you maintain a surety bond? Yes No N/A 8. Do you maintain an Errors & Omission Policy? Yes No N/A 9. Do you keep your title & escrow files separately? Yes No N/A a. Do the files contain a file bearing number? Yes No N/A b. If files are kept separately, how do you cross reference? 10. Are signed HUD settlement statements maintained in file for all closings? Yes No N/A 11. Do you maintain a separate ledger for each escrow which lists individual receipts and disbursements in chronological order showing a balance of the escrow funds for each transaction date? (Escrow Log) Yes No N/A a. Do you maintain a copy of the Escrow Agreement in all closing/escrow files? Yes No N/A 12. How often do you reconcile the trust account(s)? None Daily Weekly Monthly Yearly 13. Who is responsible for performing the trust account reconciliation? What control procedures do you have in place? For example, do you/management monitor the trust account regarding incoming and outgoing wires? Yes No N/A Do you secure check stock in locked drawer? Yes No N/A Do you segregate closing/escrow duties from accounting and reconciliation duties? Yes No N/A Do you account for all voided checks? Yes No N/A Do you have adequate "checks and balances" procedures in place? Yes No N/A Agent oversight? Yes No N/A a. Who maintains & controls check inventory? b. Who signs Checks? i. Do you require two signatures? Yes No N/A c. Checks pre-numbered? Yes No N/A d. Issued in numerical order? Yes No N/A i. File number on check? Yes No N/A ii. Who is responsible for monitoring and clearing outstanding checks that are more than 30 days old? e. Who verifies incoming & outgoing wires? i. who is responsible for initiation outgoing wires? f. Does agent/management review and initial bank statements? Yes No N/A g. Does agent/management review and initial reconciliation reports? Yes No N/A 14. Does agent utilize any banking technology and/or services & equipment provided by bank? Yes No N/A a. Does agent perform any online and/or electronic bank account management? Yes No N/A i. Transfers? Yes No N/A ii. Wire originations? Yes No N/A iii. Remote or electronic deposits Yes No N/A ? 15. What safeguards and/or control procedures has agent implemented to ensure technologies and processes are appropriately protected, utilized and monitored? Describe how deposits are made? None Earnest Money Funds to Close Escrow Funds Other a. Who is responsible for deposits? b. How often do you deposit? c. Are checks restrictively endorsed? Yes No N/A 16. What safeguards do you have in place to monitor check stock? a. Secured? Yes No N/A b. Access? Yes No N/A c. How do you account for voided checks? d. Do you keep copies of the voided checks in the closing file? Yes No N/A 17. What are your procedures for ordering payoff statements? a. Who is responsible for ordering payoff statements? b. What is considered an outdated payoff statement? c. What follow up procedures do you have in place to ensure payoffs are made before the payoff statement expires? d. Do you send a copy of the payoff statement and Transmittal letter with the payoff check? Yes No N/A e. Do you obtain and keep a copy of the authorization to close account for HELOCS? Yes No N/A Do you follow up to make sure account was closed? Yes No N/A f. How do you handle short payoffs? 18. What pre & post closing quality control procedures do you have in place? a. File balance? Yes No N/A b. Schedule B requirements are met? Yes No N/A c. Legal description and vesting are correct on Deed of Trust? Yes No N/A d. Deeds and other relevant documents signed and notarized correctly? Yes No N/A e. Disbursed according to lender's instructions? Yes No N/A f. What procedures does agent have in place to ensure the transaction is closed pursuant to real estate contract? 19. How does agent address out of balance files? a. Who is responsible for monitoring and correcting out of balance files? b. Do you maintain an "out of balance" file report or log for files that have disbursement or other post closing issues including out of balance files? Yes No N/A 20. Does agent perform own searches? a. Who performs the searches? b. How far back does agent go in the search? c. Does agent maintain the search sheet & applicable documents in the title file? Yes No N/A 21. What procedures do you have in place to ensure the title search and examination is adequate? a. Does management review the commitment before sending it out? Yes No N/A 1. Print this form for your records 2. Press submit and your form will be sent to Neil Derr (ATGF Auditor) via e-mail -