Capital Choice Mortgage Solutions. Getting Started

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1 Capital Choice Mortgage Solutions Our Philosophy: At Capital Choice Mortgage Solutions we try to do what's right for our clients one hundred percent of the time. We will keep you informed throughout the total lending experience and try to make the loan process easy as possible. Our Alliance: This alliance combines mortgage strategies, mortgage products, and pro-customer national lending services available to Capital Choice clients, and potential clients. It is more important than ever to work with ethical, experienced, and financially sound mortgage professionals. Proficio Mortgage Ventures LLC and Capital Choice Mortgage Solutions formed a strategic partnership we believe reflects a high standard of reliability and integrity. Proficio Mortgage Ventures LLC is owned by Proficio Bank. Planning: We understand that complex financial transactions call for flexible solutions and believe that a mortgage is an important part to everyone s financial plan. A mortgage refinance is one area where a client could reduce their debt and free up extra cash to help with life insurance, retirement savings, college savings an provide additional income for the household budget. Purchasing a home in most cases is the biggest investment a person will make in their life. Getting Started Getting started with Capital Choice Mortgage Solutions is easy. There is one step agents must take before they can participate in the marketing bonus pool. First you must be registered. There are two ways to get registered. 1) For agents already in the business simply your name address, solution number, address, and phone numbers to cc10685@capitalchoice.com. 2) If you are just getting started with Capital Choice the new representative can fill out the simple one page mortgage registration inside the new agent application for Capital Choice. It can then be faxed to When this is complete you will be added into the referring agents list. If you have signed up previously any other time you do not need to sign up again. There is no license required to participate in the Marketing Bonus Poole. Referring a Client If you have a client interested in a mortgage refinance, purchase, or reverse mortgage you have three different options to refer them. 1) Fill out a quick Application attached 2) Send a to kballasy@proficiomortgage.com with the clients contact information 3) Call x11. Be sure to talk to everybody in your Hierarchy or Base Shop about Capital Choice Mortgage Solutions. Take advantage of the upcoming webinar s, conference calls and marketing materials.

2 Adding Mortgages to Your Presentation Talking about a mortgage in your presentation can be very beneficial to your client. This could be a place to free up money for your clients financial plan. You can find this out by doing the Moneymap or the Dime information worksheet when it comes to how much your client owe on their mortgage, what interest rate they have and what additional debt they have. Just like life insurance and investments the conversation about a mortgage should be discussed at every appointment. You do not need to get into any detail other than that our company offers mortgages though a partner program and if they would like you can have someone contact them. Never go on an appointment for just a mortgage! If you don t have the mortgage conversation with every client you are more than likely leaving money on the table and potentially risking your client s ability to maximize their total financial plan. Questions to ask your clients: I work with a mortgage partner in Capital Choice. Q: If there were a way to lower your payment, reduce your debt or reduce the years of your current mortgage is that something you may be interested in? Q: If you don t mind I will pass your number to the bank and have somebody call you, fair enough? The mortgage is just a tool that can potentially free up additional money. I would let the client know that if the loan closes it will just be a bonus but either way you will come up with a financial roadmap for them. Questions your clients may ask you: Q: What is the rate? A: You can go there if you want to however I never quote rates unless someone has given have all there information. Rates are around 5% on a 30 year fixed and in the 4 s on a 15 year loan. Simple answer is I recommend you speak the bank and they can give you accurate rates. Q: How much are the closing cost? A: It varies it is usually on the size of the loan and if you have escrow. It s different for every loan but the average closing costs are 3-4 thousand. We usually roll the closing costs into the loan whenever possible. Typically the only out of pocket costs are for the appraisal that cost about $400. I recommend you speak to one of our mortgage professionals. Minimum Loan Amounts Reverse Mortgages $75,000 All other loans $90,000 Associate Information Why Capital Choice Mortgage Solutions * State Chartered Bank licensed in all 49 states (Not in NH) * It s easy to refer clients * Knowledgeable and professional friendly service * Follow-up within 48 hrs. 7 Days a week * Your clients will be talked to from a Financial Advisor s perspective

3 * No license required (Must register by to * Keep the mortgage business within the Capital Choice Financial Group of companies * Almost no work on your part * Training for your hierarchy through Webinars, conference calls and printed materials also available. * It can provide loan options for your clients * It can provide you with new business and give you another financial tool * It can help build your business Other Resources: For customers that need to fix their credit score. ID For customers that need credit counseling Types Of loans Home Mortgages Capital Choice Mortgage Solutions takes great pride in our levels of both quality and service by offering a wide variety of loan products at competitive rates. Therefore, we provide objective advice to present you with the best options possible for your needs and situation. We empower our vast clientele of borrowers with the unbiased facts necessary to make well-informed decisions. Mortgages Types Fixed Rate: 30 year, 20 year, 15 year, 10 year Adjustable Rate 3/1 ARM, 5/1 ARM, 7/1 ARM 10/1 ARM Home Equity Line 25 years, 15 years draw additional 10 years to pay off Conventional Mortgages Purchase or refinance loans. Borrower must have 640 credit score or better. Bank will lend up to ninetyfive percent with a credit score over 720. Mortgage Insurance is required for less than twenty percent in equity. This loan is typically designed for clients that have better than 700 credit score or have a large deposit to put down on a purchase property. PMI insurance will continue until client has twenty percent in equity in the property. FHA Purchase or refinance loans: Borrower must have 620 min credit score. FHA purchases the bank will lend b 96.5% and on refinances with no cash out 97.75%. If the loan is a cash out the maximum is eighty-five percent. This loan is great for clients that have very little to put down on a new home or have very little equity in their property. USDA Purchase or refinance loans: Purchase must be a rural area with less than twenty thousand population. One hundred percent financing plus three percent in closing costs and no PMI insurance. In addition there is a three percent upfront fee on purchases and one percent fee on refinances. Refinance only available if the loan is already a USDA. This type of loan is for areas of population of under twenty thousand people. It is state and area specific and must qualify. There is limit on the amount of income a client can make. VA Purchase or Refinance: This is for veterans. 620 min credit score. Veteran must have certificate to qualify. One hundred percent financing with additional 2.40% funding fee for first time borrowers. If a Veteran is disabled fee is waived. No PMI required. Home Path The Home Path is a Fannie Mae mortgage program for houses for sale owned by Fannie Mae. Client can borrow up to ninety-seven percent with no PMI. DU Refi Plus This is also a Fannie Mae backed mortgage. This is for clients that are underwater on their homes and if the loan is owned by Fannie Mae. Will lend up to 105% of the first mortgage amount. Cash-out refinancing can be more than $2,000 or 2 percent of mortgage amount

4 New subordinate financing is prohibited All existing subordinations must be re-subordinated. Paying off existing subordinate financing is not allowed (limited cash out) Adjustable-rate mortgage loans with fixed terms of less than five years will not be approved Interest-only mortgages are not eligible for the Fannie Mae refinancing program Balloon mortgages are not eligible for the program MyCommunityMortgage (MCM) mortgages are not eligible Texas 50(a)(6) mortgages are not accepted HomeStyle Renovation mortgages are will not be approved for refinancing Jumbo Mortgages Jumbo mortgages are used to purchase high-priced homes that require larger than normal loans. While they're convenient, they also charge slightly higher interest rates. Since the dollar amount that defines a jumbo mortgage is redefined each year, it's subject to change. Bigger isn't always better, especially when it comes to home mortgages. The term "jumbo" mortgage applies to loans for exceptionally high dollar amounts. Each year, Fannie Mae (FNMA) and Freddie Mac (FHLMC), the government-affiliated agencies that market mortgages within the U.S., define the point at which a traditional mortgage ends, and a jumbo begins. These types of loans are increasingly popular-and necessary-for buyers trying to borrow large amounts to purchase their homes. Loans as much as two millon. HELOC A HELOC differs from a conventional home equity line in that the borrower is not advanced the entire sum up front, but uses a line of credit to borrow sums that total no more than the credit limit, similar to a credit card. HELOC funds can be borrowed during the "draw period" (typically 5 to 25 years). Repayment is of the amount drawn plus interest. A HELOC may have a minimum monthly payment requirement (often "interest only"); however, the debtor may make a repayment of any amount so long as it is greater than the minimum payment (but less than the total outstanding). The full principal amount is due at the end of the draw period, either as a lump-sum balloon payment or according to a loan amortization schedule. Loans offered through US Bank. Reverse Mortgages Understanding Reverse Mortgages A reverse mortgage is a low-interest loan for senior homeowners that use a home's equity as collateral. The loan amount is a percentage of the home's value determined by the age of the youngest homeowner. The loan does not have to be repaid until the last surviving homeowner permanently moves out of the property or passes away. At that time, the estate has approximately 12 months to repay the balance of the reverse mortgage or sell the home to pay off the balance. All remaining equity is inherited by the estate. The estate is not liable if the home sells for less than the balance of the reverse mortgage. As of January 1st, 2009 seniors may use a Reverse Mortgage to purchase a home. This allows seniors the opportunity to benefit from using fewer assets to purchase & having NO mortgage payment. A reverse mortgage is a low-interest loan for senior homeowners that use a home's equity as collateral. The loan amount is a percentage of the home's value determined by the age of the youngest homeowner. The loan does not have to be repaid until the last surviving homeowner permanently moves out of the property or passes away. At that time, the estate has approximately 12 months to repay the balance of the reverse mortgage or sell the home to pay off the balance. All remaining equity is inherited by the estate. The estate is not liable if the home sells for less than the balance of the reverse mortgage. As of January 1st, 2009 seniors may use a Reverse Mortgage to purchase a home! This allows seniors to benefit from using fewer assets to purchase & having NO mortgage payment.

5 Eligibility for a reverse mortgage (HECM) To be eligible for a HUD reverse mortgage, the Federal Housing Administration (FHA) requires that all homeowners be at least age 62. You must own your home or have paid off approximately half of your mortgage balance. If you do have a mortgage balance, it can be paid off completely with the proceeds of the reverse mortgage loan at the closing (the moment which you sign the legal documents). There are no income or credit requirements for a reverse mortgage. Difference between a reverse mortgage and a home equity loan Generally a home equity loan, a second mortgage, or a home equity line of credit have strict requirements for income and creditworthiness. Also, with other traditional loans you must still make monthly payments to repay the loans. A reverse mortgage has no income or credit requirements and instead of making monthly payments, you receive payments. With a reverse mortgage the amount you can borrow is determined by an FHA formula that considers your age, the current interest rate, and the appraised value of your home. The older you are, the lower the interest rate. The more valuable your home (up to a certain point), the higher the loan amount will be. As stated previously, with traditional loans you are still required to make monthly payments, but with a reverse mortgage the loan is not due as long as you live in the home. Also, with a reverse mortgage you cannot be forced to foreclose or forced to vacate your home because of a missed mortgage payment. However, you are still responsible for real estate taxes, utilities, and maintenance. Outliving the reverse mortgage. You cannot outlive a reverse mortgage. As long as at least one homeowner lives in the home (keeping taxes and insurance current) you do not need to repay the loan. Furthermore, you will never owe more than your home's value (a reverse mortgage can not become "upside down"). Estate Inheritance In the event of your death or in the event that you no longer use the home as your primary residence, your estate can choose to convert the reverse mortgage into a traditional mortgage to keep the house or else sell the home to pay the balance (the cash borrowed, interest, and fees). If the equity in your home is worth more than the amount you owe to the lender, the remaining balance belongs to your heirs. No other assets are affected by a reverse mortgage. For example, investments, second homes, cars, and other valuable possessions cannot be taken from your estate to pay off the reverse mortgage. If the sale of your home is not enough to pay off the reverse mortgage, the lender must take a loss and request reimbursement from the FHA. Loan limits: The amount that is available depends on three factors: age (older is better), current interest rate, and appraised value of the home. Distribution of money from a reverse mortgage: There are several ways to receive the proceeds of a reverse mortgage and you can mix and match as needed. Lump sum - a lump sum of cash at closing. Tenure - equal monthly payments as long as you live in the home. Term - equal monthly payments for a fixed number of years. Line of Credit - take any amount you please at any time until the line of credit is exhausted. Eligible home types: Almost all home types are eligible. However, mobile homes must be built in the last 30 years, you must own the land, it must be on a permanent foundation, and it must meet an FHA inspection. The Next Step to a Reverse Mortgage: The Reverse Mortgage Process: The process consists of 4 steps and generally takes about 6 weeks.

6 1. Education: Client must get certified by a HUD Counseling agency before an application can be taken or submitted. These agencies are state specific and can be obtained by ing cc10685@capitalchoice.com and requesting a list of providers for the state in which the client resides. The certification can be done by phone and cost about $ Application Speak with our FHA-approved reverse mortgage specialists who will handle everything related to the application and will schedule the necessary steps such as appraisal. 3. Closing After closing there is a waiting period of three days then your lump sum or first monthly payment will be mailed to you. Marketing Bonus Pool Marketing Bonus Pool: A total of $500 is paid to the Capital Choice field force. For Agent purposes only Executive Marketing Director II 3 $15 Executive Marketing Director 3 $15 Sr. National Marketing Director 3 $15 National Marketing Director 7 $35 Sr. Marketing Director 9 $45 Regional Marketing Director 75 $375 Marketing Director 65 $325 Associate Marketing Director 55 $275 Marketing Associate 45 $225 Sr. Associate 35 $175 Associate 25 $125 Contact Information Capital Choice Mortgage Solutions 298 Somers Road Ellington CT Office (860) FAX (860) cc10685@capitalchoice.com Forms Quick Application Mortgage Calculator Representative Flyer Representative Registration