What are the net worth and liquidity requirements for nonsupervised loan correspondents and mortgagees?
Nonsupervised Loan correspondents (also known as mortgage brokers in the industry) must have a minimum adjusted net worth of $63,000, with at least 20% being liquid assets. They also must have an additional $25,000 of adjusted net worth for each branch (both traditional and non-traditional) they wish to register with FHA up to a maximum adjusted net worth of $250,000 that includes the initial $63,000. The requirements for nonsupervised mortgagees (also known as mortgage lenders in the industry) are higher. They must have a minimum adjusted net worth of $250,000, with at least 20% being liquid assets to be initially approved. To recertify (renew) their FHA approval each year, they are required to maintain an adjusted net worth of one percent of the volume of insured mortgages the mortgagee originated, purchased, or serviced, but not less than $250,000, up to a maximum of $1,000,000. Adjusted net worth must be determined in accordance with chapter 7 of the most recent version of the HUD