A new watchdog report criticizes the regulator of the government-sponsored enterprises for not ensuring that its examiners follow a formal rotation process.

At the Office of the Comptroller of the Currency, Board of Governors of the Federal Reserve System and Federal Deposit Insurance Corp., examiners are systematically rotated.

The three bank regulators have recognized the benefits of examiner rotation and have adopted written policies and practices that require the rotation of their examiners.

Source: Mortgage Daily