Regulatory Alerts2017-10-04
Financial Analysis Guidance for Mortgage Broker/Lender License Applicants
The Idaho Department of Finance issued this guidance to clarify financial analysis requirements for mortgage broker and lender license applicants under the Idaho Residential Mortgage Practices Act. Applicants must submit unaudited financial statements via the NMLS that adhere to GAAP and specific accounting principles, including accrual-basis reporting and full disclosure. The department evaluates these submissions using five key financial ratios, such as the Current Ratio and Tangible Net Worth, to determine if applicants meet minimum standards for financial responsibility and fitness.
Share