Regulatory Capital and Liquidity Requirements

9 Months Ended

Sep. 30, 2024

Regulatory Capital and Liquidity Requirements

Regulatory Capital and Liquidity Requirements

Note 24—Regulatory Capital and Liquidity Requirements

The Company, through PLS, is required to maintain specified levels of capital and liquidity to remain a seller/servicer in good standing with the Agencies. Such capital and liquidity requirements generally are tied to the size of the PLS’s loan servicing portfolio and loan origination volume.

The Agencies’ capital and liquidity levels and requirements, the calculations of which are specified by each Agency, are summarized below:

	September 30, 2024						December 31, 2023
Requirement/Agency	Actual (1)			Requirement (1)			Actual (1)			Requirement (1)
	(dollars in thousands)
Capital
Fannie Mae & Freddie Mac	$	7,280,027		$	1,330,147		$	6,890,144		$	1,211,365
Ginnie Mae (2)	$	6,909,409		$	1,471,131		$	6,559,001		$	1,314,677
HUD	$	6,909,409		$	2,500		$	6,559,001		$	2,500
Liquidity
Fannie Mae & Freddie Mac	$	1,155,446		$	611,836		$	1,243,927		$	543,913
Ginnie Mae	$	1,181,210		$	445,873		$	1,684,457		$	389,501
Adjusted net worth / Total assets ratio
Ginnie Mae		40	%		6	%		48	%		6	%
Tangible net worth / Total assets ratio
Fannie Mae & Freddie Mac		32	%		6	%		37	%		6	%

(1) Calculated in accordance with the respective Agency’s requirements.

(2) Ginnie Mae has issued a risk-based capital requirement that will become effective December 31, 2024. The Company believes it is in compliance with the Agency’s pending requirement as of September 30, 2024.

Noncompliance with an Agency’s requirements can result in such Agency taking various remedial actions up to and including terminating the Company’s ability to sell loans to and service loans on behalf of the respective Agency.