Third-Party Relationships and Agreements the application of 3rd events by no means diminishes the duty associated with the board of directors and administration to make sure that the third-party task is carried out in a safe and sound way plus in conformity with policies and relevant laws and regulations. Appropriate corrective actions, including enforcement actions, can be pursued for inadequacies pertaining to a third-party relationship that pose concerns about either security and soundness or even the adequacy of security afforded to customers.
Examiners should gauge the organization’s danger management system for third-party lending that is payday. An evaluation of third-party relationships will include an assessment regarding the bank’s danger evaluation and strategic preparation, plus the bank’s homework procedure for picking a qualified and qualified party provider that is third. (relate to the Subprime Lending Examination Procedures for additional information on strategic preparation and research.)