RI H7867

Establishes capital and liquidity requirements for "covered mortgage servicers" (nonbank servicers with 2,000+ residential mortgage loans operating in 2+ states), requiring compliance with Federal Housing Finance Agency eligibility standards for Fannie Mae/Freddie Mac seller/servicers

Requires covered mortgage servicers to maintain a board of directors responsible for establishing corporate governance frameworks, monitoring compliance with state and federal laws, and ensuring accurate regulatory reporting to the Nationwide Multistate Licensing System

Mandates annual external audits by independent certified public accountants, including audited financial statements, internal control assessments, tangible net worth computations, and verification of fidelity and errors/omissions insurance

Requires establishment of risk management programs addressing credit risk, liquidity risk, operational risk, market risk, legal risk, and reputation risk, with annual assessments reported to the board of directors

Exempts not-for-profit servicers, housing finance agencies, and reverse mortgage servicers from the financial condition requirements; grants the director authority to impose additional conditions on high-risk servicers or suspend requirements during severe economic/environmental events