A company licensed under the CRMLA both makes and services residential mortgage loans, with 6 branches and about 900 loans a year. What minimum tangible net-worth floor applies, apart from any higher requirement imposed by the commissioner?
Correct Answer
A) Keep tangible net worth of at least $250,000 continuously at all times
A CRMLA licensee making or servicing residential mortgage loans continuously maintains a minimum tangible net worth of $250,000, computed under generally accepted accounting principles, and the commissioner may require more up to the FHA level. Other choices: $50,000 and $25,000 are California Financing Law figures for other kinds of licensee; and the requirement is a fixed floor rather than one scaled by branch. Source: Cal. Fin. Code § 50201
Why This Is the Correct Answer
A CRMLA licensee making or servicing residential mortgage loans continuously maintains a minimum tangible net worth of $250,000, computed under generally accepted accounting principles, and the commissioner may require more up to the FHA level. Other choices: $50,000 and $25,000 are California Financing Law figures for other kinds of licensee; and the requirement is a fixed floor rather than one scaled by branch. Source: Cal. Fin. Code § 50201
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