Regulatory Capital and Liquidity Requirements

12 Months Ended

Dec. 31, 2024

Regulatory Capital and Liquidity Requirements

Regulatory Capital and Liquidity Requirements

Note 26—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 liquid asset requirements generally are tied to the size of the Company’s loan servicing portfolio, loan origination volume and delinquency rate.

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

	December 31, 2024						December 31, 2023
Requirement/Agency	Actual (1)			Requirement (1)			Actual (1)			Requirement (1)
	(dollars in thousands)
Capital
Fannie Mae & Freddie Mac	$	7,457,748		$	1,380,100		$	6,890,144		$	1,211,365
Ginnie Mae	$	6,952,347		$	1,526,074		$	6,559,001		$	1,314,677
HUD	$	6,952,347		$	2,500		$	6,559,001		$	2,500
Risk-based capital
Ginnie Mae (2)		40	%		6	%
Liquidity
Fannie Mae & Freddie Mac	$	870,243		$	630,698		$	1,243,927		$	543,913
Ginnie Mae	$	1,208,755		$	460,200		$	1,684,457		$	389,501
Adjusted net worth / Total assets ratio
Ginnie Mae		35	%		6	%		48	%		6	%
Tangible net worth / Total assets ratio
Fannie Mae & Freddie Mac		29	%		6	%		37	%		6	%

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

(2) Ginnie Mae has issued a risk-based capital requirement that became effective December 31, 2024.

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