Please send the completed package to your Account Executive

Transcription

1 BROKER CHECKLIST EXECUTE THE ATTACHED DOCUMENTS LISTED BELOW Wholesale Loan Broker Application Loan Originator Roster Consumer Authorization and Release (All Officers) AML Anti Money Laundering Consent to Receive Fax and s Signed Mortgage Loan Fraud Policy Statement Completed and Signed W-9 Signed Wholesale Mortgage Agreement Loan Officers Compensation and Anti-Steering Rules Compliance Attestation and Certification Lender Paid Compensation Election PLEASE ATTACH THE FOLLOWING DOCUMENTATION Resumes on All Principal Officers Copies of Licenses Main Office, Branch Office(s) and Loan Originator(s) Copy of State Business License Copy of Articles of Incorporation Copy of Errors & Omissions and Fidelity Bond, If required by State Copy of Unaudited Year to Date P&L and Balance Sheet and/or Recent Audited Financials (Dated within 60 Days) Affiliated Business Disclosure (ABA), if applicable Copy of Quality Control Plan FOR FHA PLEASE ATTACH THE FOLLOWING Signed VA Agency Agreement Copy of VA Approval Letter, If applicable Check for $100, Payable to Veterans Administration FOR VA PLEASE ATTACH THE FOLLOWING Signed VA Agency Agreement Copy of VA Approval Letter, If applicable Check for $100, Payable to Veterans Administration Please send the completed package to your Account Executive Page 1 of 32

2 BANK/CREDIT UNION CHECKLIST EXECUTE THE ATTACHED DOCUMENTS LISTED BELOW Wholesale Loan Broker Application Loan Originator Roster Consumer Authorization and Release (All Officers) AML Anti Money Laundering Consent to Receive Fax and s Signed Mortgage Loan Fraud Policy Statement Completed and Signed W-9 Signed Wholesale Mortgage Agreement Loan Officers Compensation and Anti-Steering Rules Compliance Attestation and Certification Lender Paid Compensation Election PLEASE ATTACH THE FOLLOWING DOCUMENTATION Copy of Bank Charter Copy of Articles of Incorporation Copy of Licenses (if Applicable) Copy of Errors & Omissions and Fidelity Bond, If required by State Copy of Quality Control Plan FOR FHA PLEASE ATTACH THE FOLLOWING Signed FHA Approval Application Signed FHA Addendum to Agreement Sponsored Originators Only Signed FHA-DE Addendum to Agreement For Principal/Authorized Agent Relationship Only Copy of FHA Approval Letter(s), if Applicable Copy of Processor Resume, Sponsored Originator (No HUD Approval) FOR VA PLEASE ATTACH THE FOLLOWING Signed VA Agency Agreement Copy of VA Approval Letter, If applicable Check for $100, Payable to Veterans Administration Please send the completed package to your Account Executive Page 2 of 32

3 Wholesale Loan Broker Application Account Executive: Company Information Company Name: DBA ( if applicable): Address (Main Office): City, State, Zip: Company NMLS ID#: Tax ID: Phone: Fax: Primary Contact: Primary Address: Ownership- Please list owners and percentage of ownership Individual/Company Name Title Ownership % Principal Officers Please list all officers. Attach additional page if necessary. Name Title Loan Production Estimate of the monthly volume (in dollars) of the following loan types Conforming A ALT-A FHA VA Other Page 3 of 32

4 Financial Information Complete and attach copies of financials as required above Net Worth Agency Approval Provide copies of all applicable approval letters Agency Approval Number Date Approved Dept. Of Veterans Affairs(VA) Fannie Mae(FNMA) Freddie Mac (FHLMC) Dept. of Housing and Urban Development (HUD) Initial Dept. of Housing and Urban Development (HUD) - DE Company References Please list a minimum of three (3) Investor Contact Name Phone Monthly Volume Address: Investor Contact Name Phone Monthly Volume Address: Investor Contact Name Phone Monthly Volume Address: Insurance Please complete Type of Insurance Insurance Company Name Aggregate Amount Expiration Date Errors & Omissions Fidelity Bond General Due Diligence Questions 1. Is the company, and/or any principals, corporate officers, partners, directors, managers, supervisors, loan processors, loan underwriters, or loan originators currently suspended, debarred, under a limited denial of participation (LDP), or otherwise restricted under Part 25 of Title 24 of the Code of Federal Regulations, 2 Code of Federal Regulations, Part 180 as implemented by part 2424, or any successor regulations to such parts, or under similar provisions of any other Federal agency? Yes (please provide a detailed explanation) No 2. Is the company, and/or any principals, corporate officers, partners, directors, managers, supervisors, loan processors, loan underwriters, or loan originators subject to any unresolved findings contained in a Department of Housing and Urban Development or other governmental audit, investigation, or review? Yes (please provide a detailed explanation) No Page 4 of 32

5 3. Is the company, and/or any principals, corporate officers, partners, directors, managers, supervisors, loan processors, loan underwriters, or loan originators in violation of provisions of the S.A.F.E. Mortgage Licensing Act of 2008 (123 U.S.C et seq.) or any applicable provision of State law? Yes (please provide a detailed explanation) No 4. Has your company, and/or principals or corporate officers ever been sued, reprimanded, censured or had a license revoked or suspended by FHLMC, FNMA, HUD or VA or any other government agency, or private mortgage insurer? Yes (please provide a detailed explanation) No 5. Has your company, and/or principals, corporate officers, or employees, ever been named as defendant in a felony criminal proceeding/complaint/conviction, or who has plead guilty or nolo contendre, for alleged fraud or misrepresentation in connection with any real estate related activity? Yes (please provide a detailed explanation) No 6. Is the company, and/or principals or corporate officers involved in any legal action that could affect the company s capacity to perform under the broker agreement? Yes (please provide a detailed explanation) No 7. Have any formal complaints, lawsuits, or judgments been filed against the company, and/or principals or corporate officers with any state regulatory agency within the past 3 years? Yes (please provide a detailed explanation) No 8. Has your company, and/or principals or corporate officers, filed for protection from creditors under any provision of the bankruptcy laws within the past 7 years? Yes (please provide a detailed explanation) No 9. Has your company, and/or principals or corporate officers ever been suspended or terminated from selling or servicing mortgages by an investor or another lender? Yes (please disclose the investor/lender and describe the situation) No 10. Has your company made any indemnification to another lender due to loss or potential loss incurred? Yes (please disclose the investor/lender and describe the situation) No 11. Has your company been required to repurchase any mortgage loans from an investor within the last three years? Yes (please provide a detailed explanation) No Page 5 of 32

6 12. Will a non-affiliated contract processing company be processing your loans? Yes (please attach an explanation and a copy of your ABA Disclosure) No Non- Affiliated Third Party Contract Processing Company Please complete if applicable Third Party Contract company Processor s Name Telephone Number License Number 13. Is your company an affiliate of a builder, developer, real estate sales firm, appraisal firm, contract processing company, a firm providing title insurance or closing services, any firm involved in the mortgage insurance industries? Yes (please attach an explanation and a copy of your ABA Disclosure) No Page 6 of 32

7 Detailed Explanation Page 7 of 32

8 Per Checklist, please attach resumes of all principal officers, financial statements (if applicable), insurance binders, copy of broker and originator license(s) and all other required documents. Signature Certification All the information contained in this application and supporting information is true and complete to the best of my knowledge. Neighbor s Financial is authorized to check any sources named herein, perform a background investigation and obtain credit and other information concerning the Broker named herein, its principals, affiliates and employees. Federal law requires financial institutions to verify the identity of each person with whom they conduct business. Neighbor s Financial will verify your identity using the information provided on this application and other application documents. In some instances, we may request additional information. Please see Section 9.18 of our Wholesale Mortgage Broker Agreement for more details. Principal Officer or Owner Signature Date Printed Name with Title Page 8 of 32

9 Branch List Branch Office Name Address City State Zip Branch Manager Name Phone Page 9 of 32

10 Mortgage Loan Officer List (MLO) MLO Branch Office City Phone Page 10 of 32

11 AUTHORIZATION / RELEASE FOR BUSINESSES AND PROFESSIONALS (the Applicant ) Acknowledges that it is in the best interest of both Applicant and Neighbor s Financial (the Mortgage Lender ) for Mortgage Lender to perform due diligence concerning Applicant s background and experience. Applicant further acknowledges that Applicant benefits from the efficiencies in the due diligence process that are possible when Mortgage Lender and other similarly-situated entities in the mortgage industry exchange information about their experiences in doing business with professionals/entities such as Applicant. Therefore, Applicant hereby consents and gives Mortgage Lender permission to obtain information about Applicant s company and any and all employees/contractors of that company including, but not limited to, professional history information, criminal record information, credit information and other public record information. Applicant understands that Mortgage Lender performs quality control reviews of the loans that Applicant submits to Mortgage Lender for registration, review, underwriting, and/or purchase. Applicant understands and hereby consents to the release of information about any loan application that is believed to contain misrepresentations and/or irregularities. Applicant agrees and gives its consent that it and its employees may be named as the originating entity or loan officers on such loans, whether or not Applicant or its employees is implicated in the alleged misrepresentations and/or irregularities. Applicant hereby releases and agrees to hold harmless Mortgage Lender, ChoicePoint Public Records Inc. d/b/a Mortgage Asset Research Institute ( MARI ), all MARI subscribers, and any trade associations that endorse MARI s mortgage fraud alert products from any and all liability for damages, losses, costs, and expenses that may arise from the reporting or use of any information submitted by Mortgage Lender or any other MARI subscriber to Mortgage Asset Research Institute, Inc., recorded in MARI s MIDEX database, and used in any way by Mortgage Lender or any other MARI subscriber. By signing below, Applicant also hereby authorizes Mortgage Lender to obtain personal consumer reports/credit information (herein after referred to as Report ) from one or more of the three national credit repositories (Equifax, Experian, Trans Union) so that Mortgage Lender can use the Report for the following purpose: Approving Wholesale Broker Application. This authorization is intended to comply with a consumer report request as set forth in 15 U.S.C. 1681b(a)(2). Full Name: Home Address: City: State: Zip: Date of Birth: Social Security Number: Signature: Full Name: Full Name: Home Address: City: State: Zip: Date of Birth: Social Security Number: Signature: Full Name: Page 11 of 32

12 BANK Secrecy Act/Anti-Money Laundering (BSA/AML) Addendum to the Broker Agreement Company Name: (Broker) Address: NFC Broker Code: This addendum is incorporated in to and will be made a part of the mortgage broker agreement contract between Broker and Neighbor s Financial Corporation (NFC) hereinafter referred to as Broker. Broker hereby acknowledges that he/she has adopted and implemented a BSA/AML program in accordance with FinCEN s requirements (Section 31 CFR Parts 1010 and 1029) and that said program meets and/or exceeds the following requirements of said program: The broker has developed written policies and procedures outlining the program The program provides for a system of internal controls to assure ongoing compliance with the law, The program provides for the independent testing of the program for compliance with the law, The broker has designated an individual as the responsible individual for the coordination and day-to-day monitoring of the program. The program contains procedures for filing Suspicious Activity Reports (SAR s). The broker has conducted training as required by the law and will conduct annual training on or before the anniversary date of the implementation of the Broker s BSA/AML program every year. NFC reserves the right to request evidence of compliance with the requirements of the BSA/AML program requirements including policies and procedures, evidence of training, etc. and Broker agrees to provide evidence of compliance when requested. Signature below acknowledges and represents that Broker has read the foregoing, understands it and is signing this addendum voluntarily. No oral representations, statement or inducements apart from the foregoing written agreement, have been made. The signature below is an authorized signer for the broker as per the appropriate resolution, licensing or current broker agreement on file with NFC. Principal/Owner/Authorized Signer Date Page 12 of 32

13 Consent to Receive Telephone, Facsimile, and Communications (Company), whose address is:, does hereby give its express consent to receive telephone calls and messages, facsimile transmissions and electronic messages such as (hereafter referred to as Communications ) from Neighbor s Financial, and its employees, parents, subsidiaries, affiliates, agents, vendors and/or assigns (hereafter collectively referred to as Lender ), including but not limited to, those Communications that may constitute advertisements of the various loan programs, products and/or services offered from time to time by Lender. This authorization extends to all employees, agents, Loan Originators and contractors of Company. This consent shall remain in effect until it is revoked in writing and delivered to Lender at 2831 G Street 2 nd Floor Sacramento, CA 95816; after which the consent shall remain in effect until all pending business matters are resolved between Company and Lender. Broker Company Name Signature Printed Name and Title Date Page 13 of 32

14 Mortgage Loan Fraud Policy Statement Neighbor s Financial Corporation ( NFC ) takes mortgage loan fraud and all types of fraud, VERY SERIOUSLY. Brokers of NFC should be advised that they bear responsibility for all actions, performed in the course of business, of their employees or licensees. Mortgage loan fraud and misrepresentation may occur in many forms. The following are some of the most common examples: 1. Submission of inaccurate information, including false statements on loan applications and falsification of documents purporting to substantiate credit, employment, deposit and asset information or personal information including identity, ownership/non-ownership of real property, etc. 2. Forgery or misrepresentation of partially or predominately inaccurate information. 3. Inaccurate representation of current occupancy or intent to maintain required occupancy as agreed in the security instrument. 4. Lack of due diligence or concern by broker, loan officer, interviewer, or processor, including failure to obtain all information required by the application and failure to request further information as dictated by borrowers response to other questions. a. Unquestioned acceptance of information or documentation, which is known, should be known, or should be suspected as inaccurate. b. Simultaneous or consecutive processing of multiple owner-occupied loans from one applicant on multiple properties, or from one applicant supplying different information on each application. c. Allowing an applicant or interested third party to assist with the processing of the loan. d. Failure of broker to disclose any relevant or pertinent information. Consequences of Mortgage Loan Fraud The consequences of mortgage loan fraud are far-reaching and expensive. NFC warrants the quality of our mortgage loans to our investors. Fraudulent mortgage loans damage our reputation and strain our relationships with our investors and mortgage insurance providers. The consequences to those who participate in mortgage loan fraud are more severe and can happen on a state and/or federal level. The following is a list of a few of the repercussions that may be experienced: To Broker: 1. Criminal Prosecution, which may result in possible fines and imprisonment. 2. Revocation of Broker s license. 3. Loss of lender access caused by the exchange of legally permissible information between lenders, mortgage insurance companies, FNMA, FHLMC, police agencies, federal and state regulatory agencies, including any applicable state licensing agency. 4. Civil action by NFC or applicant/borrower and/or other parties to the transaction. 5. Repurchase of fraudulent mortgage loan and loss of broker approval with NFC. To Applicant/Borrower: 1. Acceleration of debt as mandated in the security instrument (Deed of Trust/Mortgage). 2. Criminal Prosecution, which may result in possible fines and imprisonment. 3. Civil action by NFC or other parties to the transaction. 4. Employment termination. 5. Loss of any professional license. 6. Adverse, long term effect on credit history. The submission of a loan application containing false or misrepresented information is a FEDERAL CRIME. We intend to report people that commit mortgage loan fraud to the appropriate state and/or federal agencies and we intend to recover any damages caused to NFC from the persons that commit mortgage loan fraud. By signing below, I acknowledge that I have read and fully understand NFC s Mortgage Loan Fraud Policy. Broker Company Name Signature Date Printed Name and Title Page 14 of 32

15 Loan Officer Compensation and Anti-Steering Rules Compliance Attestation and Certification By entering into a Wholesale Broker Agreement with Neighbor s Financial Corporation ( NFC ), ( Broker ) made certain representations, warranties and covenants to NFC regarding the Broker s compliance with various laws in its origination of mortgage loans submitted to NFC, including, but not limited to, various state and local laws as well as the Equal Credit Opportunity Act and Regulation B, RESPA and Regulation X, the Truth In Lending Act, The Homeownership and Equity Protection Act and Regulation Z. By signing below, broker acknowledges awareness and understanding of the final rules regarding loan originator compensation and anti-steering (the LO COMP RULE ), which was issued by the Federal Reserve Board and amends Regulation Z, which implements the Truth in Lending Act and the Home Ownership Equity Protection Act. Broker further certifies to the following: Broker further certifies to the following: Broker has adopted policies and procedures to comply with the LO Comp Rule Broker has established compensation agreements with its loan originators (as defined by the LO Comp Rule and Official Staff Commentary) and attests that no loan originator will be compensated based on any term or condition (as defined by the LO Comp Rule and Official Staff Commentary) of the mortgage loan Broker will be compensated by one party, either NFC or the consumer, but not both parties on a Mortgage loan Broker has the proper controls in place to ensure that no consumer will be steered to a product or program on the basis of increased compensation to the loan originator Broker will use an Anti-Steering/Safe Harbor disclosure for all required mortgage loans to demonstrate compliance with the anti-steering provisions of the LO Comp Rule Broker Company NMLS ID# Signature of Broker of Record or Authorized Signer Print Name Date Title Page 15 of 32

16 Initial Lender Paid Compensation Plan Election Company Name: Owner or Principal Officer: Primary Company Address for Elections Fixed Percent: Range: % in.25% increments Floor Compensation (Optional): Minimum Maximum: $3,000 Ceiling Compensation (Optional): Maximum Minimum $2,000 Principal Officer or Owner Signature Printed Name with Title Date Page 16 of 32

17 FHA Approval Application This FHA Approval Application must be completed by those applicants that wish to obtain approval to originate FHA loans with Neighbor s Financial Corporation as a Sponsored Originator or Principal. Applicant Company Name : ( Company ) Please complete the appropriate section (A,B, or C) only one section should be completed Section A - Sponsored Originator (no HUD approval) Complete if Company did not have HUD approval prior to January 1st, Eligibility Requirements: To be eligible for FHA approval with NFC, the Company must have at least one full-time processor on staff (W-2 employee) with at least 2 years current FHA experience. Processor Information Processor Name: Office Street Address: Office City, State, Zip: Office Phone: NMLS ID ( if applicable): Processor References Please list a minimum of three (3) Company Name Contact Name Phone Attach copy of Processor s Resume Sign FHA Addendum to Agreement Copy of Quality Control Plan Section B Sponsored Originator (HUD approval) Complete only if Company had HUD approval prior to January 1 st, HUD Approval Number: Approval Date: Provide a copy of HUD Approval letter Sign FHA Addendum to Agreement Provide Copy of Quality Control Plan Page 17 of 32

18 Section C Principal/ Authorized Agent Relationship Complete only if Company currently has unconditional DE or HECM approval with HUD HUD Approval Number: Initial Approval Date: DE Approval Date: Provide copy of both initial HUD Approval and unconditional DE Approval letters Sign FHA-DE Addendum to Agreement Provide copy of Quality Control Plan Signature Certification All the information contained in this FHA Approval Application and supporting information is true and complete to the best of my knowledge. Neighbor s Financial is authorized to check any sources named herein, perform a background investigation and obtain credit and other information concerning the Broker named herein, its principals, affiliates and employees. Federal law requires financial institutions to verify the identity of each person with whom they conduct business. Neighbor s Financial will verify your identity using the information provided on this application and other application documents. In some instances, we may request additional information. Please see Section 9.18 of our Wholesale Mortgage Broker Agreement for more details. By signing below, I also certify that the Company is currently in compliance with the employee requirements outlined in HUD Handbook , Chapter 2-9. Principal Officer or Owner Signature Date Printed Name with Title FHA ADDENDUM TO WHOLESALE MORTGAGE BROKER AGREEMENT Page 18 of 32

19 This Addendum to the Wholesale Mortgage Broker Agreement ( Agreement ) is incorporated by reference into the Agreement between Neighbor s Financial Corporation (NFC) ( Lender ) and ( Broker ) and is applicable to the origination of mortgage application packages for mortgage loans insured by the Department of Housing and Urban Development ( HUD ) through the Direct Endorsement Program under Sections 203(b) and 234(c) of Title 24 of the Code of Federal Regulations ( FHA Loans ) by and between Lender (hereafter sometimes referred to as Sponsoring Mortgagee ) and Broker (hereafter sometimes referred to as Sponsored Originator ). This Addendum shall serve as the written agreement between Sponsoring Mortgagee and Sponsored Originator for FHA Loans and both Sponsoring Mortgagee and Sponsored Originator agree to maintain a copy of this Addendum and the Agreement in their files. For FHA Loans, the Sponsoring Mortgagee and Sponsored Originator hereby agree to the following procedures: 1. Broker, as Sponsored Originator shall take the application and originate the FHA Loan under the customary wholesale procedures between Broker and Lender to include providing all upfront disclosures, as required by state and federal law, as well as any applicable upfront FHA disclosures. 2. Broker, as Sponsored Originator, shall process and submit to Lender, as Sponsoring Mortgagee, applications for FHA Loans to be underwritten by Sponsoring Mortgagee, under the customary wholesale procedures between Broker and Lender and in accordance with HUD guidelines for FHA Loans. 3. Sponsoring Mortgagee agrees to fund FHA Loans which meet Sponsoring Mortgagee s then-current underwriting criteria and which meet all requirements for insurance under HUD s Direct Endorsement program. 4. FHA Loans shall be closed in the name of the Sponsoring Mortgagee in accordance with Federal, State and Local requirements as well as HUD guidelines for FHA Loans. Sponsored Originator acknowledges that Sponsoring Mortgagee will, from time to time, conduct onsite visits to ensure Sponsored Originator s operations are adequate to originate FHA loans. Sponsored Originator represents and warrants to Sponsoring Mortgagee that a minimum of 70% of FHA Loans submitted to Sponsoring Mortgagee result in an Underwriting Approval and that a minimum of 70% of those FHA Loans will be closed and funded with Sponsoring Mortgagee. If the aforementioned requirements are not met, Sponsoring Mortgagee reserves the right to suspend or terminate the Sponsored Originator s ability to submit FHA Loans to Sponsoring Mortgagee. Nothing in this Addendum shall be construed to establish an exclusive arrangement between the Sponsoring Mortgagee and Sponsored Originator. To the extent of any conflict between the Agreement and this Addendum, this Addendum shall prevail. IN WITNESS WHEREOF, the parties have freely entered into this Addendum as of the date first set forth above. Broker Office Signature Title/Date Officer Signature Title/Date Page 19 of 32

20 VA Agency Agreement This Agency Agreement (the Agreement ) is entered into as of 20 between Neighbor s Financial Corporation, (hereinafter known as the Lender ) and (hereinafter known as the Agent ) WITNESSETH: WHEREAS, Agent desires to submit to Lender from time to time certain real estate mortgage loans, designated below as mortgage loan or as loan and collectively as mortgage loans or loans, and, WHEREAS, the parties desire to enter into this agreement in order to cover the terms and conditions of such transactions, NOW, THEREFORE, it is covenanted and agreed as follows: 1. This Agreement is intended to cover loans originated by the Agent, closed by the Lender, and guaranteed or intended to be guaranteed by the Department of Veterans Affairs (the VA ). 2. Agent shall submit to Lender as available, applications for mortgage loans, of the kinds and types, and on such terms and conditions, as Lender may from time to time prescribe. Upon receipt of any such applications, Lender may issue its responsive commitment letter or other indication of approval to Agent, stating the further conditions, if any, subject to which the application is being accepted. Lender shall remit or pay for each loan closed, subject to all essential loan documents having been received, examined and approved by its counsel, as being consistent and in compliance with the conditions of the commitment or other approval. Loan applications may be locked in the manner prescribed by Lender from time to time at the rate of interest and discount points offered by the Lender as in effect at the time the application is locked with the Lender. The Lender confirms that it shall honor those locked-in-loan applications received from the Agent in the manner described herein. 3. Agent shall be the originator of all loans originated under this Agreement, and shall register the loans with the Lender in advance of delivery of said loans. The Agent covenants to inform the Lender of any lock-in regarding rate and/or discounts points at the time the loan is locked-in. The Agent shall conduct a face-to-face interview with each mortgage loan applicant and shall have applicant execute appropriate disclosures and authorizations for development of credit and income history. 4. This Agreement is not assignable or transferable by the Agent. 5. Agent agrees to pay $ or such fee that VA prescribes, annually for the fee due to the VA for the right to act as an authorized agent hereunder. 6. Agent agrees that, for each loan submitted hereunder to Lender pursuant to the Agreement: A. Agent will reasonably and in a timely manner comply with all requests from Lender for additional information and/or documentation necessary to enable Lender to close and sell the loan. B. All representations and warranties of Agent contained in this Agreement shall be true and correct. C. Agent shall have performed and complied with all covenants and agreements contained in this Agreement. Page 20 of 32

21 7. With respect to each loan, Agent hereby represents and warrants that: A. Each loan was entered into for fair consideration, in the ordinary course of business, and has been made in compliance with all applicable federal and state statutes and regulations, including but not limited to, the Federal Consumer Protection Act, the Truthin- Lending Act, the Equal Credit Opportunities Act, and regulations promulgated there under, and statutes and regulations governing fraud, lack of consideration, unconscionably, consumer credit transactions and interest charges; B. Agent does not know of any suit, action, arbitration, or legal, administrative or other proceeding pending or threatened against Agent that would affect is ability to perform its obligations under the Agreement: C. All documents submitted to Lender in connection with the loan applications are in every respect valid and genuine, being what on their face they purport to be, and all information submitted in connection with each such loan application is true and accurate; D. Agent has no knowledge that any improvement located on or being part of the mortgaged property is in violation of any applicable zoning law or regulation; and e. Agent has made all disclosures required by state and federal law as applicable at the time of loan application. 8. Lender hereby warrants and represents that: A. It has the authority to accept for closing the loan applications received from Agent; B. This Agreement and all actions provided for herein have been duly authorized by the Lender s Board of Directors and lender takes full responsibility for all acts, errors, or omissions of its agents and agents employees. 9. All notices required or desired to be given pursuant to this Agreement shall be deemed sufficient if given in writing, delivered personally or sent by Certified Mail, return receipt requested, postage prepaid, addressed as follows: If to Lender; Neighbor s Financial Corporation 2831 G Street,2 nd Floor Sacramento, CA Attn: Broker Approval Department If to Agent: Address: City State Zip: Attn: 10. Subject to authorization by VA and by Lender, Agent shall be entitled to submit applications for loans secured by properties located in the following state(s): Page 21 of 32

22 11. Agents responsibilities under this Agency Agreement shall include the functions indicated below: ( ) Taking loan applications ( ) Issuing lock-ins and commitments consistent with this Agreement ( ) Processing loan applications ( ) Closing loans (correspondents only) ( ) Other: 12. This Agreement supplements the terms of the Wholesale Lending Agreement between the parties and may be modified only by means of written amendment executed by each of the parties here to. Except for the first four (4) VA loans submitted to and closed by the Lender, the Agent hereby agrees that the Department of Veterans Affairs must recognize the Agency relationship. Prior to any additional VA applications being closed by the Lender. The Lender and Agent shall retain evidence in writing from the Department of Veterans Affairs that the relationship between the Agent and Neighbor s Financial Corporation is in full force and effect. Lender: Neighbor s Financial Corporation By: Title: Agent: By: Title: Page 22 of 32

23 Broker Agreement This Broker Agreement (the Agreement ) is entered into by and between Neighbor s Financial Corporation (NFC) ( Banker ), and ( Broker ) DBA. RECITALS: A. The parties wish to establish a non-exclusive relationship whereby Broker will submit loan packages ( Loans ) to Banker on behalf of Broker s clients ( Borrowers ) for possible funding. B. The parties now desire to enter the Broker Agreement to set forth the terms of their relationship. NOW, THEREFORE, the parties agree as follows: AGREEMENT: 1. General Broker Responsibility: All loan applications by Broker shall contain all information and original documentation then required by Banker, including but not limited to the following: loan applications, credit reports and appraisals, HUD Guide to Settlement Costs, Consumer Handbook on Adjustable Rate Mortgages and Good Faith Estimate of Settlement Costs. ARM Program Disclosures and state disclosures required at the time Broker receives the application. Banker may require, such information as Banker may reasonably request to assist Banker in marketing the Loans to secondary market investors, perform such other services as Banker shall require to close the loan(s), or provide a written explanation of why loan is being cancelled if Borrower has been approved and Broker fails to close a loan. The contents of all Loan Packages submitted to Banker immediately shall become the property of Banker, and all information contained herein may be subject to Banker s independent verification. 2. Loan Approval: Loan approval shall be within Banker s sole discretion. Broker shall not represent that Banker has approved or will approve any Loan until Broker is informed by Banker in writing. All Loans shall close in Banker s name. 3. Fees: Any fee, commission, or other consideration payable to Broker with respect to any Loan shall be paid only after Banker deducts from Loan proceeds all its fees and charges. No fee shall be owed to Broker on account of any proposed Loan that is not funded and closed Borrower Fees: Payment of the Broker s fee from Borrower is solely the responsibility of the Borrower pursuant to Broker s agreement with the borrower. However, Banker agrees to assist in the collection of the Broker s fee from Borrower at closing to the extent that such fees are reflected in the Broker s demand statement to Banker and title/closing agent and all fees are reflected properly in the estimated closing statement. Broker acknowledges that the Broker s fee to be collected is reasonable and customary under relevant state law and as expressed in the Mortgage Broker Free Agreement between the Broker and Borrower. 4. Broker s Warranties: Broker represents and warrants to Banker, as of (I) the time any Loan package is submitted to Banker, and (II) as of the time the loan is funded and closed that: 4.1. No Untrue Statements: None of the statements or information contained in ay Loan package will contain any false or erroneous statements, or omit material facts necessary to make such statements of information accurate and understandable. BROKER UNDERSTANDS THAT BY MAKING THE WARRANTY CONTAINED IN THE SUBPARAGRAPH IT IS WARRANTING THE ACCURACY OF ALL INFORMATION CONTAINED IN ANY LOAN PACKAGE SUBMITTED TO BANKER, WHETHER OR NOT BROKER HAS KNOWLEDGE, OR REASON TO SUSPECT, ANY INACCURACY. Page 23 of 32

24 4.2. Absence of Claims: Except as previously disclosed by Broker to Banker in writing, there is not pending or, to the best of the Broker s knowledge, threatened any suit, action, arbitration, or legal, administrative, or other proceeding or governmental investigation (including an allegation of fraud by another lender) against Broker or its current former owners, or employees which could have a materially adverse effect on the Broker s business, assets, financial condition or reputation Control of Documents: No Borrower shall have had in its direct or indirect possession or control any credit, income, or deposit verification document submitted to Banker with respect to any loan Duly Licensed: Broker possesses all necessary licenses, permits, and authority to engage in the activities contemplated by the Agreement. If applicable, Broker s license number and its expiration date appear below Ownership: Except as otherwise disclosed to Banker in writing before the funding of any loan, Broker shall have no direct or indirect ownership interest in any property acting as security for the loan Compliance of Laws: Broker will comply with all applicable state and federal laws with respect to the Loans. 5. Broker s Indemnification: Broker shall indemnify and hold Banker and its Shareholders, directors, officers, agents, employees, and assigns harmless from and against, and shall reimburse the same with respect to, any and all losses, damage, liability, costs and expenses, including reasonable attorney fees, from any cause whatsoever, incurred by reason or arising out of or in connection with, (A) any breach of any representation or warranty contained in paragraph 4, (B) Broker s failure to perform any obligation hereunder, and, (C) any claim by a Borrower resulting from Banker s failure or refusal to fund a Loan (collectively Loss ). Without limiting the generality of the foregoing, Brokers indemnity shall extend to all repurchase demands of any third party to which Banker has sold any loan. Broker s obligation to indemnify Banker under this Agreement shall arise upon, (A) Banker s incurring a Loss, or (B) automatically upon Banker s receipt of a Loan Repurchase demand from a secondary market investor that Banker determines in its sole and absolute discretion to be enforceable, even if Banker has not incurred any Loss with respect to such loan. 6. Banker s Rights: Broker s obligation to fully indemnify Banker under this Agreement shall not be affected by Banker s taking any of the following actions with or without notice to Broker; (A) liquidation, repayment, retirement, or sale or resale of any Loan, (B) foreclosure of any Loan; or (C) sale or resale of the property securing any Loan. 7. Disclosure of Information: Broker acknowledges and agrees that Banker may report instances of Broker making material misstatement in connection with a Loan, or Broker s knowingly aiding a Borrower to do the same, to appropriate agencies, industry facilities, state or federal regulatory authorities or law enforcement agencies. 8. Termination of Agreement: This agreement may be terminated by either party for any reason upon fifteen (15) days prior written notice and may be terminated immediately for any material breach of any covenant, obligation, or duty contained herein or for any material violation of any law, ordinance, statute, rule, regulation governing the conduct of either party hereto; provided, however, that the obligations contained in paragraph 3 through 15 shall survive termination. 9. Governing Law: This Agreement shall be governed by California Law. 10. Miscellaneous: Right of Offset: Amounts owed by Broker and Banker under this agreement may, at Banker s option and in its sole discretion, be offset by Banker against any payments then or thereafter owed by Banker to Broker. Page 24 of 32

25 10.2. Notices: All notices required hereunder shall be in writing and shall be deemed to have been given, made, and received only, (A) upon delivery, if personally delivered to a party, (B) one business day after the date of dispatch, if by facsimile transmission, (C) one business day after receipt, if delivered by a nationally recognized courier service offering guaranteed overnight delivery; or (D) three business days after deposit in the United States first class mail, certified mail, postage prepaid, return receipt requested, at the addresses appearing below Attorney s Fees: If any legal action or other proceeding is brought from the enforcement of this Agreement, or because of an alleged dispute, breach, default, or misrepresentation in connection with any of the provisions of this Agreement, the prevailing party shall be entitled to reasonable attorney s fees and other costs incurred in that action or proceeding, in addition to any other relief to which it or they may be entitled Assignment: Broker May not assign this Agreement Entire Agreement, Amendment: This Agreement constitutes the entire agreement between the parties and supersedes all prior and contemporaneous agreements, representation, and understanding. No supplement, modification, or amendment shall be binding unless executed in writing by both parties Waivers, Remedies: Failure or delay to audit any Loan or to exercise any right shall not act as a waiver of any other right, nor shall any single or partial exercise of any right prelude any other or further exercise thereof. No waiver or any of the provisions of this Agreement shall be deemed, or shall constitute, a waiver of any other provision, whether or not similar, nor shall any waiver constitute a continuing waiver. No waiver shall be binding unless executed in writing by the party making the waiver. All remedies shall be cumulative and nonexclusive Partial Invalidity: If any provision of the Agreement is held invalid, void, or unenforceable, the remaining provisions shall nevertheless continue in full force and effect Further Assurances: Each party shall perform any further acts and execute and deliver any documents that may be reasonable necessary to carry out the provisions of the agreement. 11. Repurchase Demands and Makewhole Demands: Except as provided in Section 6.02, the Broker agrees to comply with any Repurchase Demand or Makewhole Demand relating to any Mortgage Loan sold to Neighbor s Financial Corporation (NFC) pursuant to this Agreement, or any REO Property following foreclosure of such Mortgage Loan, within ten (1 0) Business Days of receipt of such demand from Neighbor s Financial Corporation (NFC) based on any of the following events or circumstances: A. A violation of, or failure to comply with, any federal, state or local law or regulation prior to purchase of such Mortgage Loan by Neighbor s Financial Corporation (NFC) which would give rise to a right of the Mortgagor to refuse further payment on such Mortgage Loan and/or seek a refund of amounts previously paid and/or claim a penalty of any kind or nature; B. Any breach by the Broker of any representation, warranty or covenant under this Agreement; C. Any default by the Broker under this Agreement with respect to a Mortgage Loan Funded by Neighbor s Financial Corporation (NFC); D. Any statement of fact made or deemed made by the Broker, any employee or agent of Broker, regarding a Mortgage Loan, is inaccurate; Page 25 of 32

26 E. The Mortgagor fails to occupy the Mortgaged Property as represented in the Mortgage File, unless it is determined by Neighbor s Financial Corporation (NFC), in its sole discretion, that extenuating circumstances exist that excuse the Mortgagor's failure; E. Any statement of fact made by or regarding a Mortgagor, or contained in a Mortgage File, is inaccurate, including without limitation any statement regarding a Mortgagor's financial condition, assets, liabilities, income, and/or debts, regardless of the type of Mortgage Loan or mortgage loan program pursuant to which the Mortgage Loan was made; G. Any Investor to whom Neighbor s Financial Corporation (NFC) shall have sold or transferred such Mortgage Loan demands its repurchase by Neighbor s Financial Corporation (NFC) or demands indemnification with respect to actual or potential losses on such Mortgage Loan from Neighbor s Financial Corporation (NFC) due to an inaccuracy of any representation or warranty made by the Broker with respect to such Mortgage Loan, any loan quality defect and/or any default by the Broker hereunder; H. The Mortgagor's first, second, third, and/or fourth Monthly Payment with a due date subsequent to the Loan Purchase Date is not received by Neighbor s Financial Corporation (NFC) or it investors, whether from the Mortgager directly or forwarded by the Broker if the Mortgager has submitted the payment to the Broker, by the last day of the month in which such payment is due, and any such payment becomes 90 days past due; I. Any event of default under the Mortgage Note or Mortgage or any other Mortgage Loan Document relating to such Mortgage Loan (other than an early payment default as described in Section 6.01(H)) shall have occurred within one hundred and twenty (120) days from the date of Neighbor s Financial Corporation (NFC)'s funding of such Mortgage Loan; J. The Broker is obligated to repurchase such Mortgage Loan pursuant to the provisions of Section 5.07 or any other provision of this Agreement. There is no deadline by which Neighbor s Financial Corporation (NFC) must invoke its rights pursuant to this Section 6.01 with respect to any Mortgage Loan or REO Property. If the Broker is otherwise obligated to comply with a Repurchase Demand or Makewhole Demand, it shall not be a defense that the Broker did not knowingly breach a representation and warranty or did not know of the Mortgage Loan defect, inaccurate statement of fact, or other ground for the Repurchase Demand or Makewhole Demand. The representations and warranties made by the Broker in Article IV of this Agreement are absolute and unqualified, and they are not limited to the best of the Broker's knowledge or belief or otherwise restricted in scope. In its sole discretion, Neighbor s Financial Corporation (NFC) may accept an indemnification agreement from the Broker in lieu of requiring that a Mortgage Loan or REO Property be repurchased Notice to Broker: Upon receipt of a Repurchase Demand or Makewhole Demand from Neighbor s Financial Corporation (NFC) under Section 6.01 of this Agreement, the Broker may contest its obligation by preparing a written response to the Repurchase Demand or Makewhole Demand ("Demand Response"). Said Demand Response must be delivered to Neighbor s Financial Corporation (NFC) by no later than ten (10) Business Days following the Broker's receipt of the Repurchase Page 26 of 32

27 Demand or Makewhole Demand. If a Demand Response is not timely received by Neighbor s Financial Corporation (NFC), it shall be of no force or effect and need not be considered by Neighbor s Financial Corporation (NFC). Neighbor s Financial Corporation (NFC) shall promptly consider any timely Demand Response and indicate in writing to the Broker whether the Repurchase Demand or Makewhole Demand is withdrawn or modified as a result of the Demand Response. The decision of Neighbor s Financial Corporation (NFC) shall be made in its sole discretion, shall be final, and shall not be subject to further review or challenge by Broker. If the basis for the Repurchase Demand or Makewhole Demand was a finding or demand made by an Investor, then Neighbor s Financial Corporation (NFC) shall promptly forward to the Investor any timely Demand Response to the Repurchase Demand or Makewhole Demand received from the Broker, for Investor's consideration as to whether the Repurchase Demand or Makewhole Demand will be withdrawn or modified as a result of the Demand Response. The decision of the Investor shall be made in Investor's sole discretion, shall be final, and shall not be subject to further review or challenge by the Broker. Upon receipt of written notice from Neighbor s Financial Corporation (NFC) indicating that a Repurchase Demand or Makewhole Demand has not been withdrawn or modified as a result of a Demand Response from the Broker, the Broker shall comply with the Repurchase Demand or Makewhole Demand within five (5) Business Days of receipt of said notice from Neighbor s Financial Corporation (NFC) Repurchase Price for Mortgage Loan: The price the Broker shall pay to Neighbor s Financial Corporation (NFC) for each Mortgage Loan that the Broker is obligated to repurchase pursuant to Section 6.01 shall equal the sum of: A. The original Loan Purchase Price of such Mortgage Loan, including without limitation the Premium, if any (but in any event not less than par) less the sum of all principal reductions of such Mortgage Loan after the original purchase thereof by Neighbor s Financial Corporation (NFC); B. Plus all accrued and unpaid interest on such Mortgage Loan from the Loan Purchase Date of such Mortgage Loan through and including the first day of the month following the month during which the repurchase of such Mortgage Loan '1s made by the Broker pursuant to this Article VI; C. Plus the entire "Final SRP" as shown in the Lock Confirmation relating to such Mortgage Loan, if applicable; and D. Plus all expenses, including but not limited to, escrow advances, late fees, NSF fees, attorney's fees, inspection fees, miscellaneous Fees, repair costs, and any other expenses incurred and not reimbursed by the Investor, together with actual attorney's fees and expenses incurred by Neighbor s Financial Corporation (NFC) in enforcing the Broker's obligation to repurchase such Mortgage Loan Return of Notes: Upon each such repurchase of a Mortgage Loan by the Broker pursuant to this Article VI, Neighbor s Financial Corporation (NFC) shall promptly endorse the Mortgage Note (without recourse), shall assign the related Mortgage (without recourse and in recordable form) to Page 27 of 32

28 the Broker (or its designee) and shall promptly take any and all other actions necessary or appropriate to vest title in the applicable Mortgage Loan in the Broker (or its designee) Repurchase Price For REO Property: The price the Broker shall pay to Neighbor s Financial Corporation (NFC) for each REO Property that the Broker is obligated to repurchase pursuant to Section 6.01 shall equal the sum of: A. The original Loan Purchase Price of such Mortgage Loan, including without limitation the Premium, if any (but in any event not less than par) less the sum of all principal reductions of such Mortgage Loan after the original purchase thereof by Neighbor s Financial Corporation (NFC); B. Plus all accrued and unpaid interest on such Mortgage Loan from the Loan Purchase Date of such Mortgage Loan through and including the first day of the month following the month during which the repurchase of such Mortgage Loan is made by the Broker pursuant to this Article VI; C. Plus the entire "Final SRP" as shown in the Lock Confirmation relating to such Mortgage Loan, if applicable; and D. Plus all expenses, including but not limited to, escrow advances, foreclosure expenses, late fees, NSF fees, attorney's fees, inspection fees, miscellaneous fees, repair costs, and any other expenses incurred and not reimbursed by the Investor, together with actual attorney's fees and expenses incurred by Neighbor s Financial Corporation (NFC) in enforcing the Broker's obligation to repurchase such Mortgage Loan 1. No Adverse Information: Broker has no adverse information concerning Borrower that it has not communicated to Banker. 2. Services: Broker, who represents and warrants that it is knowledgeable in all aspects of residential real estate lending in the state(s) where Broker is located and all Federal regulatory requirements for consumer lending agrees to comply for the purpose of soliciting and semi processing applications for real estate secured loans in the aforementioned state(s). It is hereby agreed that the Banker will accept only those loan applications that, in its opinion, meet its current loan program parameters (as provided by Banker to Broker) and that result from purchase and refinance transactions Banker s Responsibilities: The Banker s responsibilities will include loan underwriting, preliminary approval, notice of final approval of declination, preparation of loan closing documents and settlement instructions in Banker s name, closing, and funding of approved loan transactions. Banker shall have no recourse against Broker for damages relating to any loan approved and closed by Banker based on any defect in any closing, closing document, settlement instructions or disclosures prepared by Banker. Banker further agrees that the review of all title policies, property survey s and hazard and flood insurance policies are the responsibility of Banker. It is hereby understood that Broker shall make no credit commitments on behalf of Banker and that Banker shall have the sole and absolute discretion to determine whether a loan will be granted and under what conditions. Page 28 of 32