Regulatory Alerts2020-10-29
Idaho Department of Finance Guidance Statement 2020-04-CFB: Financial Analysis Review
The Idaho Department of Finance issued Guidance Statement 2020-04-CFB to clarify financial analysis requirements for mortgage broker and lender license applicants under the Idaho Residential Mortgage Practices Act. The guidance mandates the submission of unaudited financial statements via the Nationwide Multistate Licensing System and establishes specific accounting standards, including accrual-basis reporting and full disclosure. It further defines five key financial ratios, such as the Current Ratio and Tangible Net Worth, to evaluate the financial responsibility and fitness of applicants seeking licensure.
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