How Often Is the FC Part of the MCR Required to Be Filed?

The Mortgage Call Report (MCR) is a standardized reporting mechanism providing regulatory agencies with insights into the activities and financial health of licensed entities. Its Financial Condition (FC) part offers a detailed snapshot of a company’s financial standing. This reporting framework is an element of regulatory oversight, fostering a stable and transparent mortgage market and protecting consumers and the broader financial system.

Understanding the Mortgage Call Report (MCR) and its Financial Condition (FC) Part

The Mortgage Call Report (MCR) is a comprehensive regulatory tool, enabling oversight bodies to collect structured data from mortgage companies. Its primary purpose is to monitor industry trends, assess compliance, and identify potential risks to consumers or market stability. The MCR is divided into two main components: the Residential Mortgage Loan Activity (RMLA) and the Financial Condition (FC) part.

The Financial Condition (FC) part focuses on the financial health and stability of the reporting entity. This component details assets, liabilities, equity, and operational results, providing regulators with a clear picture of a company’s solvency and liquidity. Regulators require this information to ensure mortgage companies have the financial resources to operate responsibly and fulfill their obligations to consumers. This oversight helps prevent financial instability from cascading into broader market disruptions. By reviewing the FC data, authorities enforce net worth requirements and other financial safeguards.

Who is Required to File and the Filing Frequency

All state-licensed mortgage companies and those employing state-licensed mortgage loan originators (MLOs) are required to file the Mortgage Call Report (MCR), including its Financial Condition (FC) part. This mandate extends to mortgage lenders, brokers, and servicers operating under state licenses. Companies designated as Fannie Mae or Freddie Mac Seller/Servicers, or Ginnie Mae Issuers, are required to file an Expanded MCR, which also includes the FC component.

The filing frequency for the FC part of the MCR varies depending on the type of business activity a company conducts. For mortgage lenders and servicers, the FC component is due quarterly, aligning with the submission schedule for the Residential Mortgage Loan Activity (RMLA) part. These quarterly filings are required within 45 days of the end of each calendar quarter. For example, data for Quarter 1 (January 1 – March 31) is due by May 15, Quarter 2 (April 1 – June 30) by August 14, Quarter 3 (July 1 – September 30) by November 14, and Quarter 4 (October 1 – December 31) by February 14 of the following year.

Mortgage brokers usually have a different filing frequency for the FC part. For these entities, the FC component is due annually. This annual submission is required within 90 days of the company’s fiscal year-end, as reported in their Company (MU1) Form. The distinction in filing frequency reflects the differing business models and financial exposures of lenders/servicers versus brokers, with regulators requiring more frequent financial updates from entities that hold and service loans.

Key Components of the Financial Condition (FC) Part

The Financial Condition (FC) part of the Mortgage Call Report demands detailed financial data to assess a company’s fiscal health. This section requires the submission of a balance sheet and an income statement, providing a comprehensive overview of the company’s financial position and performance. Information related to assets, liabilities, and equity must be reported. Assets include cash, investments, mortgage loans held for sale or investment, and property and equipment.

Liabilities encompass items such as accounts payable, lines of credit, and warehouse lines of credit, while equity reflects the owners’ stake in the company. The income statement details revenues and expenses over the reporting period. This includes gross revenue from operations, including income from mortgage-related activities, such as loan originations, sales of mortgages, and servicing fees. Expenses, including operational costs, are itemized to arrive at net income.

Beyond these core financial statements, the FC part collects specific metrics relevant to the mortgage industry. This includes reporting on net worth, which is often subject to minimum requirements set by state regulators. Companies must demonstrate sufficient liquidity and capital to meet their obligations. The detailed breakdown of these components allows regulators to evaluate a company’s financial stability, compliance with capital requirements, and overall capacity to operate sustainably in the mortgage market.

Submission Process for the MCR

Once the necessary financial information for the Mortgage Call Report (MCR), including its Financial Condition (FC) part, has been compiled, the submission process is completed electronically. The Nationwide Multistate Licensing System & Registry (NMLS) serves as the centralized platform for this submission. Companies can manually enter data directly into the NMLS system or upload a properly formatted XML file.

A user logs into their company’s NMLS account and navigates to the Call Reports section. They then select the option to create or upload a new MCR filing for the appropriate year and period. If uploading an XML file, the system processes the data, creating the necessary FC and RMLA components based on the company’s licenses and filing requirements. After data entry or upload, the system runs completeness checks to identify any missing or inconsistent information.

The user must address any identified errors or warnings to ensure the report is accurate and complete. The user reviews the compiled report, provides an attestation of its accuracy, and submits it through the NMLS platform. Following submission, NMLS sends a confirmation, and regulators may review the filing, potentially reaching out for clarifications or additional information.