Intro to Mortgage Origination Examinations - June 2022

Sensitivity to Market Risk

Rate Sensitive Assets: • Loans – Held for Sale and Held for Investment • Mortgage Servicing Rights • Investments – Bonds • Any other asset affected by interest rate changes

87

Sensitivity to Market Risk Stress Testing:

• The process used to artificially observe the effects of rate changes on the overall financial performance of the company

88