13-13-08. Financial condition for applicant or licensee not subject to section 13-13-07

13-13-08. Financial condition for applicant or licensee not subject to section 13-13-07

1. An applicant or licensee not subject to section 13-13-07 which is operating as an

approved servicer by one or more government-sponsored enterprises must maintain

liquidity to include operating reserves, and tangible net worth that meet the standards

set by the entity. If approved by more than one entity, the applicant or licensee must

meet the highest standard of the entities for which they are approved. Applicants or

licensees with a combined portfolio are subject to this standard.

2. An applicant or licensee with a portfolio of loans not subject to any government-

sponsored enterprises requirements must maintain liquidity to include operating

reserves of 0.00035 times the unpaid principal balance of the portfolio and maintain a

minimum tangible net worth as set forth in paragraph a of this subsection or, in lieu of

the tangible net worth, maintain a one million dollar surety bond.

a. Minimum tangible net worth, based on nationwide portfolio:

0-199 loans $100,000

200-299 loans $200,000

300-399 loans $300,000

400-499 loans $400,000

500-599 loans $500,000

600-699 loans $600,000

700-799 loans $700,000

800-899 loans $800,000

900-999 loans $900,000

1,000 plus loans $1,000,000

b. An applicant or licensee servicing North Dakota residential mortgage accounts

may apply to the commissioner to waive or adjust one or more of these capital or

liquidity requirements. In considering such a request, the commissioner will

consider the number and types of loans being serviced and whether the licensee

has a positive net worth and adequate operating reserves. For purposes of this

section, "operating reserves" are funds set aside in anticipation of future

payments or obligations and are included in liquidity.

c. Licensees subject to this section must annually or more frequently report, as

prescribed by the commissioner, on liquidity, including operating reserves, and

tangible net worth.