AUDIT OF RTC MORTGAGE TRUST 1995-SN1

July 21, 2000Audit Report No. 00-028Review of the Claims Made to theCredit Enhancement Reserve Fund forSecuritization Transaction 1991-09 Federal Deposit Insurance Corporation Office of Audits Washington, D.C. 20434 Office of Inspector GeneralDATE: July 21, 2000MEMORANDUM TO: Mitchell Glassman, DirectorDivision of Resolutions and ReceivershipsFROM: David H. LoewensteinAssistant Inspector GeneralSUBJECT: Review of the Claims Made to the Credit Enhancement ReserveFund for Securitization Transaction 1991-09(Report No. 00-028)This report presents the results of a review of the claims made to the Credit EnhancementReserve Fund (Reserve Fund) for securitization transaction 1991-09. This is the second in aseries of nine reports that the OIG will issue relating to the securitization transactions serviced byRyland Mortgage Company. The independent professional services firm, KPMG Consulting,conducted this review under the direction of the OIG.The objective of our review was to determine if the realized losses that caused reductions to theReserve Fund for the sample items tested were allowable and adequately supported bydocumentation. The review encompassed a sample of the $17.5 million of claims made to theReserve Fund from September 1991 (inception of the transaction) through August 1995 (whenthe Reserve Fund was depleted).The Division of Resolutions and Receiverships (DRR) issued a written response receivedJuly 12, 2000 (see Appendix II) to a draft ...