Introduction to Mortgage Servicing Training - October 2023

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

23

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

24