7-1-1022. Captial, net worth, and liquidity requirements.

Mortgage lenders and mortgage brokers must maintain capital, net worth, and liquidity in compliance with this Code section. For entities within a holding company or affiliated group of companies, compliance with these requirements shall be measured solely at the licensee level.#

For the purposes of complying with the capital, net worth, and liquidity requirements of this Code section, all financial data must be reported in accordance with generally accepted accounting principles.#

Capital, minimum net worth, and liquidity, to the extent applicable, shall be continuously maintained by licensees in the following amounts:#

1. (1)

   If the licensee is a mortgage broker, then it shall maintain a net worth of at least $50,000.00;#

2. (2)

   If the licensee is a mortgage lender that is not a covered servicer, then it shall maintain a net worth of at least $100,000.00 and evidence of liquidity of $1 million which may include a warehouse line of credit; and#

3. (3)

   If the licensee is a mortgage lender that is a covered servicer, then it shall maintain capital, net worth, and liquidity that meets the Federal Housing Finance Agency Eligibility Requirements for Enterprise Single-Family Seller/Servicer, regardless of whether the covered servicer is approved for government sponsored enterprise servicing.#

Mortgage lenders and mortgage brokers shall maintain written policies and procedures implementing the applicable capital, net worth, and liquidity requirements of this Code section. Such policies and procedures shall include a sustainable written methodology for satisfying the requirements of subsection (c) of this Code section and be made available to the department upon request.#

In addition to the amounts required for liquidity under subsection (c) of this Code section, covered servicers shall maintain sufficient liquidity to cover normal business operations.#

Mortgage lenders shall have in place sound cash management and business operating plans that match the size and sophistication of the mortgage lender to ensure normal business operations. Management shall develop, establish, and implement plans, policies, and procedures for maintaining liquidity sufficient for the ongoing operational needs of the mortgage lender. Such plans, policies, and procedures shall contain sustainable, written methodologies for maintaining sufficient liquidity for operations of the licensee and be made available to the department upon request.#