13-13-07. Financial condition

13-13-07. Financial condition

This section applies to large servicers as defined in subsection 9 of section 13-13-01.

1. A large servicer must maintain capital and liquidity in compliance with this section.

2. For the purposes of complying with the capital and liquidity requirements of this

section, all financial data must be determined in accordance with generally accepted

accounting principles.

3. A large servicer that meets the federal housing finance agency eligibility requirements

for enterprise single-family seller or servicers for capital, net worth ratio, and liquidity,

regardless of whether the servicer is approved for government-sponsored enterprises

servicing, meets the requirements of subsections 1 and 2. Large servicers shall

maintain written policies and procedures implementing the capital and servicing

liquidity requirements of this section. Such policies and procedures must include a

sustainable written methodology for satisfying the requirements of this subsection and

be available to the commissioner upon request.

4. Large servicers shall maintain sufficient allowable assets for liquidity in addition to the

amounts required for servicing liquidity to cover normal business operations. Large

servicers shall have sound cash management and business operating plans that

match the size and sophistication of the institution to ensure normal business

operations. Management must develop, establish, and implement plans, policies, and

procedures for maintaining operating liquidity sufficient for the ongoing needs of the

institution. The plans, policies, and procedures must contain sustainable, written

methodologies for maintaining sufficient operating liquidity and be available to the

commissioner upon request.