Vendor Management Policy and Procedures

Description

The Vendor Management Policy and Procedures identifies the best practices when using third-party vendors and specific management practices to protect the mortgage company and its consumers. Mortgage companies are required to manage their vendors to ensure compliance with federal consumer financial laws and to protect consumer interests. Under 12 U.S. Code § 5481(26), a vendor is defined as “any person that provides a material service to a covered person in connection with the offering or provision of a consumer financial product or service.”

This Vendor Management Policy and Procedures provides clear guidance for maintaining compliance and vendor oversight. It outlines how to assess each vendor based on the nature of services provided and the level of access they have to consumer data or company systems. Risk levels are assigned accordingly.

The procedures also detail how to review and document a vendor’s licensing, insurance, and contractual agreements to ensure they meet company and regulatory standards.