Minimum Net Worth Requirements |
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Dec. 31, 2020 | ||||||||||||||||||||||||||||
Mortgage Banking [Abstract] | ||||||||||||||||||||||||||||
Minimum Net Worth Requirements |
NOTE 19 - MINIMUM NET WORTH REQUIREMENTS Certain secondary market investors and state regulators require the Company to maintain minimum net worth and capital requirements. To the extent that these requirements are not met, secondary market investors and/or the state regulators may utilize a range of remedies including sanctions, and/or suspension or termination of selling and servicing agreements, which may prohibit the Company from originating, securitizing or servicing these specific types of mortgage loans. The Company is subject to the following minimum net worth, minimum capital ratio and minimum liquidity requirements established by the Federal Housing Finance Agency for Fannie Mae and Freddie Mac Seller/Servicers, and Ginnie Mae for single family issuers. Minimum Net Worth The minimum net worth requirement for Fannie Mae and Freddie Mac is defined as follows:
The minimum net worth requirement for Ginnie Mae is defined as follows:
Minimum Capital Ratio
Minimum Liquidity The minimum liquidity requirement for Fannie Mae and Freddie Mac is defined as follows:
The minimum liquidity requirement for Ginnie Mae is defined as follows:
The most restrictive of the minimum net worth and capital requirements require the Company to maintain a minimum adjusted net worth balance of $78,064 and $73,118 as of December 31, 2020 and 2019, respectively. As of December 31, 2020 and 2019, the Company was in compliance with this requirement. |