Intro to Mortgage Origination Examinations - June 2022

Earnings/Profitability • Ability to generate earnings from mortgage loan activities • Purpose is to absorb losses and augment capital • Immediate source of liquidity • Short-term indicator of the adequacy of operations

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Earnings/Profitability • Generated from a variety of activities • Consider regulatory limits • Loan portfolio interest income • Volatile due to cyclical nature of industry

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