Introduction to Mortgage Servicing Examination Training eBook

Internal Use Only

Prudential Servicing Standards

Follow FHFA Requirements CSBS Final Model Standards

• Read thoroughly to gain understanding of what is intended & specific exclusions • Notably, wholly owned loans, reverse mortgages, & loans serviced for others are excluded from calculations • Pure sub-servicers only required to comply with capital & liquidity provisions Financial Condition Requirements •Capital • Liquidity

Internal Use Only

Prudential Servicing Standards Capital Definition: Tangible Net Worth •Total Equity •LESS Goodwill & Other Intangible Assets •LESS Affiliated Receivables & Pledged Assets Net of Associated Liabilities •LESS Deferred Tax Assets Net of Deferred Tax Liabilities