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.