Is YOUR income in JEOPARDY?

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2 2011 is proving to be a monumental year for the Mortgage Industry. New regulations such as the Dodd-Frank Bill and excessive requirements mandated by the Federal Reserve are causing many in the industry to consider closing shop or consolidating with larger companies to share the risk. In this environment, one wrong move can easily endanger your existence. As if that weren t enough, many banks and lenders are manipulating the new compensation rules to increase their profits while reducing your income! Are you and your current company ready for these challenges? Is YOUR income in JEOPARDY? Everyone has questions, and Supreme Lending has ANSWERS! Play along with us in the game of JEOPARDY. Our game board has been assembled with the Top 50 questions prospective New Branches and Loan Officers need answered. The object is to ask yourself, Do you like Supreme Lending s ANSWERS BETTER than your current company s? Let s discuss how Supreme Lending can help your team remain safe and prosperous in We have the platform and support you need to grow, capture new referral business and hire talented employees that deliver results. Kim Jacobson Business Development/Recruiter Direct Main Cell Fax Quorum Drive, Suite #300 Dallas, TX kim.jacobson@supremelending.com

3 ACCOUNTING for $200 How much is the branch reserve account? Supreme Lending will build a Branch Reserve account equal to 2 times the branch s fixed monthly expenses and salaries. We accrue the reserve account at just $200 per closed loan. The reserve account is held as a safety net to ensure sure all branch bills are paid in the event of a monthly branch revenue loss. Should the branch part ways with Supreme, reserve accounts are returned once all final expenses are paid. ACCOUNTING for $400 When are loans credited to my P&L - at closing or when the investor purchases? Unlike many of our competitors, Supreme Lending credits the branch s P&L with ALL closed loan revenue, upon funding. We do not make the Branch wait until loans are purchased from our warehouse lines or require any other arbitrary waiting period. ACCOUNTING for $600 How often do I receive P&L Statements and what costs does Supreme add? We recognize the competitive advantage of timely and accurate P&L s. They are consistently issued 2 days after the 15 th and the last day of the month. Only the branch s ACTUAL expenses are added to the P&L and all profits are accessible to the Branch Manager. An accounting expense of $350 per month and a $10 per month Encompass360 seat license per user is deducted. Otherwise, actual rent, salaries, benefits, credit reporting expenses, etc. are paid on your behalf. ACCOUNTING for $800 What is the typical profit, after expenses, for a branch? We support our Branch Managers with significant financial analysis and reports to increase profitability. We compare P&L s and provide best practices of similar branches in order to recommend possible adjustments to Managers. Our average branch profit in 2010, after all expenses and commissions were paid, was an unheard of 75 bps! ACCOUNTING for $1000 What is your 2011 Commission Plan? Supreme Lending has always been a Net Branching company, crediting the lion s share of the profits to the branches who create it. As industry compensation rules change, large lenders and Mortgage Bankers see it as an opportunity to increase their profits at the originator s expense. We do not think Branch Manager or Loan Officer incomes should be reduced. We have tirelessly studied the law and have a comprehensive plan to ensure that our current and new branches will reap the rewards for their efforts and production quality.

4 IT for $200 What type of technology do you offer? Supreme Lending was featured in MortgageMag as a finalist for Mortgage Technology Magazine s Green Originator Award for Over the past decade, we have phased out antiquated tools, such as fax machines, and have created cutting-edge proprietary technologies which include a Product & Pricing Engine and an Appraisal Management System. IT for $400 What loan origination system do you use? Operating as a mortgage banker, it is imperative to have a system that is powerful enough to ensure we stay in compliance but still flexible enough to adapt with industry evolution. We have customized over 1000 edits and templates within our LOS to streamline our processes and ensure accuracy from initial app to sale on the secondary market. The configuration is so automated and efficient that it takes second-guessing out of the equation. IT for $600 What is the procedure if we need systems help? We have an internet-based system that can be accessed from SupremeInsight. SysAid service requests can be submitted directly to our IT Department via the website. You can also track your service history and prioritize your requests depending on the severity of your issue. In addition, we have a designated help line that is monitored between the hours of 7am-6pm. IT for $800 Do you have a specific internet and phone provider that offers a discount? Yes, we have an agreement with AT&T to provide a discount with Supreme branches for all communication lines. Our IT department is fully staff at all times to assist in all aspects of the onboarding process. In many cases, we will send a member of the department out to your location to properly complete the setup. IT for $1000 Can you help with phones, scanners and other hardware? We do have preferred vendors you can utilize for discounted laptops, printers, scanners and copiers. If a new branch provides their own equipment, our IT department will inspect it to make sure it will support our paperless environment.

5 HUMAN RESOURCES for $200 How do I go about hiring a new employee for my branch? The Branch Manager can print or the new employee packet from SupremeInsight, our Intranet site. The completed packet, along with the necessary documentation is sent directly to HR where they will process the application and complete the background check. The new hire approval can be completed within 48 hours or less. Upon approval, the new employee will receive a welcome with login credentials to access the system to download all necessary software. HUMAN RESOURCES for $400 What is Supreme s dress code requirement? The dress code for Supreme Lending is business casual Monday Thursday and Fridays are casual. Business casual is slacks and a nice dress shirt, skirt or dress and casual is jeans and a nice shirt or Supreme Lending attire. HUMAN RESOURCES for $600 What is Supreme Lending s pay cycle? Supreme Lending s pay cycle is semi-monthly. All employees are paid on the 15 th and last day of the month. If the 15 th or last day of the month falls on a weekend or holiday you will be paid the business day before. HUMAN RESOURCES for $800 Do you pay hourly and how is it tracked? Supreme Lending does pay hourly. If you are an hourly paid employee then you will keep track of your hours through SupremeInsight. There is a timesheet system under the Accounting section in SupremeInsight. All hourly employees and loan officers will have access to the timesheet system and will be required to log all hours worked in that system. Hourly pay is paid in arrears, meaning time worked from the 1 st 15 th will be paid on the last day of the month and hours worked from 16 th 30 th /31 st will be paid on the following 15 th. HUMAN RESOURCES for $1000 What Benefits do you offer? Supreme Lending offers medical, dental, vision and life benefits. All full-time employees are eligible for benefits on the 1 st after the completion of 60 days of employment. For example if your start date is 7/12 you will be eligible for benefits on 10/1. All detailed information regarding all of the plans can be located under the Human Resources section of SurpemeInsight.

6 SECONDARY MARKETS for $200 How do I compare different pricing and interest rates? You can access your branch s rate sheet for general pricing or utilize Program Finder s Quick Find feature to get a quote with a range of rates and pricing. After entering simple scenario details such as loan amount, fico score and lock term, our internet based engine generates pricing automatically. In just seconds, you can also import an application from Encompass and lock in your interest rate. SECONDARY MARKETS for $400 What is the YSP limit on loans? Currently, we will pay as high as 4 points in rebate at the top of the rate sheet. Many companies limit or keep the YSP for themselves, but our rate sheet allows a branch to maximize the rebate to pay closing costs or generate revenue. April 2011 may force us to revise this system, but Supreme already has a plan in place to ensure the most aggressive Loan Officer and Branch Manager compensation. SECONDARY MARKETS for $600 Can I set my own rate sheet? Our system is designed to allow the Branch Manager to set their own pricing margin and commission structure for their individual market and business model. Your pricing margin can be modified at any time in order to be more competitive and improve your bottom line. SECONDARY MARKETS for $800 What is your warehouse capacity and stability? We are currently funding around $200,000,000 and have the capacity to fund $330,000,000. Our established infastructure and net worth have put us in the perfect position to keep on growing. Our warehouse lines with BB&T and Comerica are the largest for any lender they work with and our business model has allowed us to avoid buy-backs. SECONDARY MARKETS for $1000 Do you lock best efforts or hedge? We issue a single ratesheet for the company, hedge our own pricing and sell loans in pools. We do not deal on an investor-specific basis, but we will allow exceptions. Once a lock is confirmed, Supreme guarantees your lock term, regardless of market shifts. We eliminate most lock expiration hassles by maintaining quick turn times.

7 UNDERWRITING for $200 What are Underwriting turn times? We are currently at 48 hours for new submissions and 24 hours for conditions. We rarely exceed this, as we maintain enough staff to accommodate. Working in a paperless environment enables Underwriters to share the workload, alleviates overflow and ensures that conditions submitted for review are never lost on the fax machine. UNDERWRITING for $400 Do you have an Underwriter that can answer specific scenario questions? We do have an Underwriter that manages the scenario desk to give guidance on particular situations. Communication is via and will reference the appropriate Supreme Guidelines. In addition, we allow credit only approvals, which is a condensed review of select loan documentation. If your Underwriter is unable to make a determination, the file is automatically escalated to the Underwriting Manager for final disposition. UNDERWRITING for $600 Do I work with the same Underwriter every time or is it a rotation system? You will work with the same Underwriter every time to develop a close relationship and comfort level for their style. It is important to know the submission process and file flow with one Underwriter instead of dealing with 10 Correspondent Lenders. Working with our team is not as difficult as a Wholesale Lender, where making one simple mistake can cost you time and money. UNDERWRITING for $800 Can I have in-house Underwritng? Yes, in order to maintain customer service and hour turn times, we will gladly staff your branch with a designated Underwriter as warranted, according to volume. UNDERWRITING for $1000 Do you have your guidelines posted and are they updated? The guidelines for all programs are located on SupremeInsight in full color, PDF version. The guidelines have a searchable index to quickly find any key words you enter. Each time a guideline or product is updated, it is sent in a company-wide bulletin announcement, and then immediately posted into the appropriate section of the guidelines. Supreme has one set of guidelines per loan type, making it much easier than dealing with 20 different investor manuals.

8 CLOSING for $200 How are rush files handled? Branch Managers are encouraged to prioritize their pipeline of loans with their designated closer to determine which ones are to be done first. In rush cases, requestes can be made to get loan docs out within hours! Branches are also awarded Rush Certificates through various contests and company activites to be used at Branch Manager s discretion. CLOSING for $400 How does your technology benefit the Closing Department? Being paperless allows our Closers to draw docs with just the click of a button! Docs are immediately delivered to the title company which includes the closing instructions, payoff and a preliminary HUD. The LO and Processor are notified when initial docs are sent and are always involved in HUD approval. We leverage technology to improve accuracy, communication and ensure all parties are on the same page. CLOSING for $600 What is the latest time a wire can be sent? We have individual Closing and Funding positions. Our Closers draw docs and our Funders send wires. Their daily work schedules are staggered to balance workflow and time zones. We will stay as late as your title company to facilitate same day fundings. CLOSING for $800 How is my Closer determined? We assign the same Closer/Funder team for each branch. Your team will sit in close proximity to one another and will be in constant contact on every loan. They will maintain strong relationships with your title professionals and validate Supreme s reputation as having the best Closing Department. CLOSING for $1000 Is there a Funding Checklist and can I get a copy? Yes, a funding checklist will accompany every loan file and is available on SupremeInsight. You can also send a copy of the checklist to your title partners to establish a consistent pattern and prevent delays.

9 MARKETING for $200 Do you provide marketing materials I can use? Yes, we have developed innovative, customizable marketing deliverables which are available on SupremeInsight. Logos and flyers are available for download and clothing and yard signs are available for purchase. MARKETING for $400 Can you help me put together flyers and campaigns? Our Marketing Department will be happy to set an appointment to discuss your needs. We will assist you in composing and illustrating your flyers and promotions to ensure that your message hits a home run with your potential clients. In today s competitive environment, we strongly encourage frequent marketing to the largest possible client base. MARKETING for $600 What is the cost for business cards? Business cards can be ordered through SupremeInsight for as little as $39 per 1000 cards. Different layouts, graphics, designs and corporate-approved titles can be applied as well. We can also help you design your signature and include your photo for a more personal touch. MARKETING for $800 Do you provide Branch Manager and Loan Officer websites? Websites are automatically generated by the system once a user has been entered into the Encompass database. Receipt of your Encompass Username and Password indicates that your site is ready for customization. We offer webinar training sessions on how to tailor the layout and content and how to locate loan applications that are submitted by your clients. Loan applications are sent directly to the Encompass Current Prospects folder and from there, can be sent straight to processing. MARKETING for $1000 What if I have a question about the verbiage in my ad? Supreme requires that all advertising be submitted for approval prior to publication. Any communication with a Supreme Lending logo must be approved. Simply send your draft copy to our Marketing Department, we will check spelling and grammer, and the Compliance Department will do their check for additional requirements. We will make any necessary changes and a final, approved copy will be sent back to you within days.

10 Recruiting for $200 Will you help me recruit for my branch? Branch Support and Recruiting consistently receives inquiries from individual Loan Officers who are interested in Supreme Lending. If they are not ready to manage their own Branch, we will recommend they interview with the Branch where we believe they will be a good fit. If a Branch has a prospective Loan Officer that would like to tour the Corporate Office, or schedule a conference call to answer very detailed questions, we are always available. Recruiting for $400 Can I open Sub-Branches? We adhere to the FHA rule which states that a Loan Officer should be located within 50 miles of their Branch. If you wish to hire someone located futher away, they will need to have a FHA approvable and registered commercial office. A Branch Manager also has the ability to open a Sub-Branch of multiple originators. In either case, the main Branch is ultimately responsible for the operating expenses, salaries, and rent. Recruiting for $600 What happens if one of my Loan Officers wants to start their own branch? The Supreme Lending Branch Agreement assures Branch Managers that their employees will not be allowed to open their own Branch without written permission and release from their current Branch Manager. On occasion, Loan Officers that aspire to eventually have their own Branch will negotiate permission to do so with their current Branch Manager as a hiring condition. We recommend both parties agree up front, and set a realistic timeframe and benchmark of production under the original branch in order to ensure a winning outcome for both. Recruiting for $800 Do you have a Recruiting CRM or Database to help me recruit? We have built a very powerful online ACT Database which allows Branch Managers to input prospective Loan Officers contact information, notate conversations etc., and schedule followups. Recruiting calls and follow-ups can be that important thing that never gets done without a set system to schedule these tasks. Our solution makes these easy to manage. Recruiting for $1000 Do you have a Corporate Marketing Plan I can utilize for recruiting? Branch Support and Recruiting are constantly working to improve the promotion messages and marketing of Supreme Lending. Branch Managers will have access to our Flyers and Campaigns within the ACT Database and also in the Marketing Center within SupremeInsight.

11 HUMAN RESOURCES for $200 How do I go about hiring a new employee for my branch? The Branch Manager can print or the new employee packet from SupremeInsight, our Intranet site. The completed packet along with the necessary documentation is sent directly to HR where they will process the application and complete the background check. The new hire approval can be completed within 48 hours or less. Upon approval, the new employee will receive a welcome with their login credentials for accessing the system to download all necessary software. HUMAN RESOURCES for $400 What is Supreme s dress code requirement? The dress code for Supreme Lending is business casual Monday Thursday and Fridays are casual. Business casual is slacks and a nice dress shirt, skirt or dress and casual is jeans and a nice shirt or Supreme Lending attire. HUMAN RESOURCES for $600 What is Supreme Lending s pay cycle? Supreme Lending s pay cycle is semi-monthly. All employees are paid on the 15 th and last day of the month. If the 15 th or last day of the month falls on a weekend or holiday you will be paid the business day before. HUMAN RESOURCES for $800 Do you pay hourly and how is it tracked? Supreme Lending does pay hourly. If you are an hourly paid employee then you will keep track of your hours through SupremeInsight. There is a timesheet system under the Accounting section in SupremeInsight. All hourly employees and loan officers will have access to the timesheet system and will be required to log all hours worked in that system. Hourly pay is paid in arrears, meaning time worked from the 1 st 15 th will be paid on the last day of the month and hours worked from 16 th 30 th /31 st will be paid on the following 15 th. HUMAN RESOURCES for $1000 What Benefits do you offer? Supreme Lending offers medical, dental, vision and life benefits. All full-time employees are eligible for benefits on the 1 st after the completion of 60 days of employment. For example if your start date is 7/12 you will be eligible for benefits on 10/1. All detailed information regarding all of the plans can be located under the Human Resources section of SurpemeInsight. Thiis iis our busiiness..