§ 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.