Introduction to Mortgage Servicing Examinations Training

Financial Ratios

Capital Structure/ Leverage

Total Equity

Equity to Assets Ratio

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Total Assets

Indicator of long-term financial health & profitability Indicates the level of assets owned by the investors

Tangible Net Worth

Tangible Net Worth to Total Assets Ratio

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Total Assets

Measures liquidation value Excludes goodwill 7 other tangible assets from total equity

Tangible Net Worth

Prolonged Net Losses

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Average Losses

How long can they survive? "Capital burn rate" Liquidity impact

Dividends Paid

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Payout Ratio

Annualized Net Income

Measures proportion of earnings paid in dividends