§ 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.