Third-Party Relationships and Agreements the usage 3rd events certainly not diminishes the duty for the board of directors and administration to make sure that the third-party activity is carried out in a secure and sound manner as well as in conformity with policies and relevant regulations. Appropriate corrective actions, including enforcement actions, can be pursued for deficiencies associated with a third-party relationship that pose concerns about either security and soundness or perhaps the adequacy of security afforded to customers.
Examiners should measure the organization’s danger management system for third-party payday financing relationships. An evaluation of third-party relationships ought to include an assessment associated with bank’s danger evaluation and strategic preparation, plus the bank’s homework procedure for picking a qualified and qualified party provider that is third. (make reference to the Subprime Lending Examination Procedures for extra information on strategic preparation and research.)