PRICING POLICIES & PROCEDURES Wholesale

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1 PRICING POLICIES & PROCEDURES Wholesale LOAN PRICING & LOCK POLICY LOCK DESK CONTACT INFORMATION Phone: Website: OVERVIEW & PROCEDURE Pinnacle Capital Mortgage s web site is available to provide current Loan Pricing. Pinnacle Capital Mortgage will confirm Lock Requests for Loan Pricing based upon the current (sequentially numbered) Pinnacle Capital Mortgage Rate Sheet in effect. Pinnacle Capital Mortgage makes every effort to be accurate. Clerical Errors or Inaccurate Pricing will be honored at the sole discretion of Pinnacle Capital Mortgage. LOCK DESK BUSINESS HOURS Lock Desk normally operates Monday through Friday between the hours of 8:00 AM and 4:30 PM, Pacific Time. Banking or Trading Holidays, as well as Early Closures, may reduce or eliminate these hours of operation. LOCK PERIOD Lock Period does not include the day of the Lock. The period begins the following calendar day. Example A 15 Day Lock on July 1st would expire July 16 th. The initial lock period cannot be changed after a lock request has been submitted. LOCK EXPIRATION DATE Pinnacle Capital Mortgage s policy is that a pricing Lock will expire on a business day. Lock Expirations that would naturally fall on a weekend or holiday are rolled forward to the next business day. An example would be that a Lock Expiration that would naturally fall on a Saturday or Sunday is rolled to Monday. A Lock Extension follows this same premise. Extensions will be calculated from the actual (business day) Lock Expiration Date and not be calculated by reverting back to the natural Saturday or Sunday date. LOCK EXPIRATION Lock Expiration Date is the last day for which the Loan Pricing of the current Lock will be honored. Lock Expirations will end on the corresponding business day (Lock Expiration Date). Loans must be Funded on or before the Lock Expiration Date; otherwise, the Loan will be subject to Pinnacle Capital Mortgage s Extension and Re-lock Policies which are often less advantageous than the initial Lock terms. * This policy statement does not indicate Loan Approval nor does it guarantee that your Loan will fund by the Lock Expiration Date. Pinnacle Capital Mortgage-Pricing P&P (Wholesale) Page 1 of 5

2 LOCK REQUEST Lock Requests are accepted online only. Lock Requests submitted via or fax may not be honored. Locks are not taken by telephone. The Lock Desk staff can answer Loan Pricing questions between normal Lock Desk Business Hours via or phone ( ). If loan characteristics change after a Lock Confirmation has been issued, loan pricing is subject to change. Pinnacle Capital Mortgage provides the following Lock options: Option: Purchase/Refinance Lock (60,45,30,15 Days) - You may elect to lock in Loan Pricing for a period of 60 calendar days at Pinnacle Capital Mortgage s current prevailing rate. Niche programs may not be eligible for a 60 day term. Jumbo Locks must be in approved status. 15 day locks require loan to be CTC To receive the Loan Pricing locked under any of the above plans, the Loan must fund no later than the Lock Expiration Date. If a Loan does not fund by the Lock Expiration Date, it becomes subject to Pinnacle Capital Mortgage s Extension and Re-lock Policies. OVERNIGHT PROTECTION Lock Requests submitted online after posted lock desk hours will be accepted and honored between the hours of 4:31pm (PST) to 9:00pm (PST) as per the last rate sheet posted price. Confirmations will be issued the following business day. Note: Lock volume will be monitored for all after hour locks. LOCK CONFIRMATION Pinnacle Capital Mortgage will provide the Originator with a Lock Confirmation showing the Loan Pricing terms for each confirmed Lock. Lock Confirmations will be sent to individuals or a designated recipient in accordance with the delivery instructions the Originator has established. As stated earlier, Lock Confirmations are conditional to timely Loan Submission Delivery Requirement deadlines and the accuracy of the information provided. The Loan Pricing provided on the Lock Confirmation is specific to loan characteristics priced and subject to changes. Changes include - but are not limited to - changes in loan characteristics, program eligibility, calculation errors, and commitment terms that will affect the final Loan Pricing. Pinnacle Capital Mortgage reserves the right to modify and/or revise its Lock Confirmation should any of the information submitted in the loan package differ from the information shown on the Lock Confirmation or if the loan does not meet Pinnacle Capital Mortgage s guidelines. A Lock Confirmation does not constitute a loan decision/approval. Pinnacle Capital Mortgage-Pricing P&P (Wholesale) Page 2 of 5

3 FORWARD LOCKING (PRE-LOCKS) A Lock may be requested before the specific Loan is submitted *FORWARD LOCK/PRELOCK* (With the exception of Jumbos- All Jumbo loans require an underwriter approval prior to locking). PCM prepared LE: The Broker must provide a complete LE submission within 1 business day. Otherwise, that confirmed Lock will be canceled. After the LE is issued and the lock is confirmed, a complete submission package meeting PCM wholesale minimum submission requirements must be received meeting the below delivery timeframes. Broker prepared LE: A complete submission package meeting PCM wholesale minimum submission requirements must be received meeting the below delivery timeframes. Lock Terms: 30, 45 and 60 days only LOAN SUBMISSION DELIVERY REQUIREMENTS Loan Application Files must be submitted within the acceptable Loan Submission Requirements or have a CTC status following the Lock Date. Otherwise, that confirmed Lock may be canceled and subject to Pinnacle Capital Mortgage s Re-Lock Policy. Lock Period File Delivery Requirement Notes 15 days (Loan CTC) 30 days File must be submitted within 5 days of lock date 45 or 60 days File must be submitted within 15 days of lock date Approved Loan ONLY No prior to doc ( PTD ) Conditions remain LOAN PROGRAM, PROPERTY ADDRESS OR GUIDELINE CHANGE If the Originator changes the Loan Program after the lock has been confirmed, the Lock Expiration Date will remain unchanged and the pricing will be adjusted based upon the previous lock date. This policy will hold true as long as the program change is not going to or from a niche program. If the program change is going to or from a niche program, the pricing will be based upon the (a) previous lock date or (b) current market pricing, whichever is worse. If the Originator changes the subject property address after the lock has been confirmed, on a program that is not a niche program, the new address will constitute a new lock and the pricing will be based upon current market pricing. If the program is a niche program, the lock expiration date will remain unchanged and the pricing will be adjusted accordingly based upon the (a) previous lock date or (b) current market pricing, whichever is worse. This policy will apply regardless of the reason for the property change. If a Pinnacle Capital Mortgage Guideline change occurs prior to Loan Approval, the Loan Pricing will be evaluated case-by-case considering the change(s). Niche programs include, but are not limited to, the following products: Jumbo Fixed, Jumbo ARMs, and Bond products. Pinnacle Capital Mortgage-Pricing P&P (Wholesale) Page 3 of 5

4 EXTENSION, RE-LOCK & RENEGOTIATION OVERVIEW This policy is intended to address the ever-changing value of Loans in the marketplace. Pinnacle Capital Mortgage will update the pricing of Loans (i.e. the rate sheet) as necessary. This policy will not affect a Loan that already has a valid Lock Confirmation and will fund on or before the Lock Expiration Date. Loan Pricing may be extended or re-locked as needed in accordance with the following policies and procedures. PROCEDURE Requests for an Extension, Renegotiation or Re-lock must be submitted for approval to Pinnacle Capital Mortgage s Loan Pricing Department prior to 4:30pm (PST). All Renegotiation requests should be ed to lockdesksharedmbox@financeofamerica.com. Relocks and extensions must be submitted online. RE-LOCK A re-lock is defined as locking in revised Loan Pricing for a Loan that has been Locked previously, but the Lock has Expired or been Cancelled. A Loan that does not fund by its Lock Expiration Date and is not extended may be subject to a re-lock Fee. More than 30 days (60 days for Jumbos) after the Lock Expiration or Cancellation, Loan Pricing of a re- Lock is eligible for current market pricing. All Extension Fees incurred from the previous Lock will be removed when the loan is re-locked. Within 30 days (60 days for Jumbos) of Lock Expiration or Cancellation, Loan Pricing of a re-lock will include a re-lock fee (see rate sheet), plus the worse of (a) Current Market Pricing or (b) initial (previous) Lock Pricing. Re-Lock pricing is determined by comparing the pricing of the initial (previous) Lock Period with the same Lock Period at Current Market Price. Any Extension Fees incurred from the previous Lock will be removed when the loan is re-locked, with the exception of Jumbos. Any re-lock Fees incurred from the previous Lock will NOT be removed when the loan is re-locked. The loan must be in Underwriting Approved or Doc status to relock. The new (re-lock) Lock Period will be: maximum 30 days for all loans, with the exception of Jumbos. Jumbo Relocks: The new (re-lock) Lock Period will be a maximum of 15 days for Jumbos. Extension fees will not be removed from pricing on a Jumbo re-lock. If a lock cancellation has been submitted, the earliest a relock can be requested is the next business day. Re-Locks must be submitted online. EXTENSIONS An extension is defined as extending a confirmed Lock prior to the passing of its Lock Expiration Date. An extension prolongs the original Lock Expiration Date by the number of days extended. Extensions will be calculated from the actual (business day) Lock Expiration Date and not be calculated by reverting back to the natural Saturday or Sunday date. New Lock Expirations that would naturally fall on a weekend or holiday are rolled forward to the next business day. A Lock Extension must be requested on or before 4:30PM PST the day the Lock expires. Extension request must be submitted online, ed requests are not accepted. A Lock extension may be processed 3 times, not to exceed a maximum amount of 30 days (cumulative). If the lock has been extended for a cumulative 30 days and still has not closed by the expiration date, the loan will be subject to Pinnacle Capital Mortgage s relock policy. Extensions are not available on renegotiated locks. Extensions may not be available under extreme market conditions. Lock Extension Fees: See Daily Rate Sheet Pinnacle Capital Mortgage-Pricing P&P (Wholesale) Page 4 of 5

5 RENEGOTIATION Standard Policy Loans are subject to the Renegotiation Policy in place at the time of the renegotiation request. Pinnacle Capital Mortgage s Lock Desk Department, upon the Originator s request, will consider a one-time renegotiation under the following conditions: The current market pricing must be at least 1.25% better Price when compared to the existing (non-expired) Lock Interest Rate Price of the same Lock Term. The Loan must have an Underwriting (U/W) status of one of either Approved or Approved-MI or any DOC status. The benefit of the better Loan Pricing must accrue to the Borrower(s), not to the Originator or Branch. A Loan that has been re-locked cannot benefit from a Renegotiation. Jumbo, ARM, and niche Loan Programs are not eligible for Renegotiation. If an Interest Rate change or Program change has been submitted the earliest a Renegotiation can be requested is the next business day. Once a Lock has been Renegotiated: Any further changes to the new (negotiated) Interest Rate or Loan Program would be subject to the rate sheet price that was valid at the time the loan was initially locked without consideration of the renegotiation. A renegotiated lock may not be extended. Renegotiations are limited to interest rates posted on Pinnacle Capital Mortgage s Rate Sheet. Renegotiation requests must be submitted with the desired rate/price, or they cannot be honored. Renegotiation requests may not be available under extreme market conditions. Renegotiation Terms Whether maintaining or lowering the interest rate, a requested Renegotiation will be priced 0.50 worse than current Rate Sheet pricing for the same Product and Lock Term. The new expiration date will be set to the earlier of the current expiration date or 15 days from the renegotiation date. A renegotiated lock may not be extended. Pinnacle Capital Mortgage-Pricing P&P (Wholesale) Page 5 of 5