NATTYMAC EMERGING BANKER PROGRAM A WHOLLY-OWNED WAREHOUSE BANKING SUBSIDIARY OF STONEGATE MORTGAGE CORPORATION (NYSE: SGM) Effective 6.23.2015
NATTYMAC: FASTER, SMARTER, FRIENDLIER Mortgage banking firms, Emerging Mortgage Bankers, and approved and qualified Stonegate Mortgage correspondent customers can apply to gain access to NattyMac, Stonegate Mortgage s wholly-owned warehouse lending subsidiary. Lenders may fund loans on a delegated or prior-approved basis, depending on their approval with Stonegate Mortgage, or any of the large list of approved take-out investors maintained by NattyMac. We deliver better overall loan execution and process savings for our customers by turning their warehouse line faster and making the process easy. Stonegate s Early Purchase Facility, or EPF, allows priorapproved, delegated and hybrid correspondents that fund on a NattyMac line the ability to receive higher advance rates and lower borrowing costs for loans sold to Stonegate Mortgage. NattyMac s advance rates allow our customers to borrow up to 100% of the note amount on Conventional and Government Stonegate Mortgage loans and for Non-Agency Jumbo loans as well. Since 2004, NattyMac has been an efficient and effective warehouse lender. We re focused on financing prime mortgage collateral, providing fast, accurate same-day wires and extended hours of operation.
FUND MORE LOANS WITH NATTYMAC WAREHOUSE LINES OF CREDIT BASED ON NET WORTH Leverage Ratio as High as 25:1 Establishes Line Size and Pricing No Limit on EPF EARLY PURCHASE FACILITY (EPF) WITH STONEGATE MORTGAGE Once Note and Closed Loan Package Received, Loan Transfers to EPF Loan Cleared from Warehouse Line of Credit Additional Funding Ability Created Clients Receive More Leverage and Can Fund More Volume with Lower Capital Requirements OTHER INVESTORS Loans Can Be Sold to Any Approved Investor NattyMac Encourages Our Clients to Have More than One Warehouse Line, and to Sell Loans to Multiple Investors
EMERGING BANKER SETUP PROCESS (SUMMARY) 1. DECIDE TO BECOME A BANKER Fund Loans in Your Name Take Control of the Closing Process and Timeline 2. OBTAIN LENDER LICENSE 3. PREPARE PROPER FINANCIAL STATEMENTS (AUDIT OR COMPILATION) 4. APPLY TO BECOME APPROVED FOR A NATTYMAC WAREHOUSE LINE 5. EECUTE STONEGATE CORRESPONDENT AGREEMENT 6. OBTAIN E&O AND FIDELITY BOND COVERAGES 7. ESTABLISH AIR COMPLIANT OR AMC PROCESS FOR APPRAISAL ORDERING 8. SELECT YOUR FULFILLMENT PARTNER TO PROVIDE BACK END SUPPORT: NATTYMAC MAINTAINS AN APPROVED LIST 9. SET UP MORTGAGE INSURANCE MASTER POLICY 10. HIRE APPROPRIATE STAFF TO MANAGE COMPLIANCE, CREDIT DECISIONING AND REGULATORY REPORTING 11. TRAIN WITH NATTYMAC AND YOUR FULFILLMENT PARTNER 12. LOCK AND FUND YOUR OWN LOANS
EMERGING BANKER SETUP PROCESS (DETAIL) The diagram below shows the steps a Broker would take to become a Correspondent through the program. BROKER NATTYMAC STONEGATE MORTGAGE INSURANCE BROKER MERS FULFILLMENT PARTNER MI COMPANY Emerging Banker Startup Process 30 to 60 Days Decide to Become a Banker Obtain State Licensing as Lender Obtain Financials and Meet Minimum Requirements Apply to Selected Warehouse, Investor and Fulfillment Providers Ready to Submit Loan Process Warehouse Line Application Approved? Train Banker Staff Activate Warehouse Line Set up Direct Deposit Account (DDA) Notification Process Correspondent Application (already approved as broker) Approved Train Banker Staff Activate Client Access to EB Submissions Process E&O and Fidelity Bond Application Policy and Bond Process Account Request (4 Weeks) MERS Number Client Activates (After First Closing) Blank Mortgage/ Deed of Trust For Phase 2 Develop Contract Signed Contract Train Banker Staff Set up Master Contract (4-5 Weeks) Navigator Lending Solutions 19345 US Highway 19 N Clearwater, FL 33764 727.536.2000 www.navpros.com Titan Lenders Corp. 5353 West Dartmouth Ave Suite 50 Denver, CO 80227 866.412.9180 www.titanlenderscorp.com MSYA McGlinchey Stafford and Youngblood Associates LLP 2711 N Haskell Ave LB25, 27th Floor Dallas, T 75204 214.257.1832 www.msyalaw.com Stonegate Mortgage Corporation is not licensed to originate loans in the following states: Hawaii and New York. This advertisement is intended for the use of professionals only and is not to be distributed to members of the general public. Visit stonegatemtg.com/state-licensing.aspx for complete licensing profiles. NattyMac has met all requirements to provide warehouse services in all states. (www.nmlsconsumeraccess.org)
EMERGING BANKER RESPONSIBILITIES 1. MORTGAGE BANKING FUNCTIONS MUST BE PERFORMED BY: Emerging Banker Fulfillment Partner Approved Investor NattyMac 2. MORTGAGE BANKING ACTIVITIES Loan Application and Approval Making a Credit Decision Managing Compliance Risk Closing and Funding Selling Closed Loans Compliance Reporting and Monitoring 3. EMERGING BANKER RESPONSIBILITIES See Services Menu
SERVICES MENU Activity Key: = New Activity for Emerging Banker = Responsible Party (More Than One Party Selected Indicates Either May Be Responsible) BANKER FULFILLMENT PARTNER APPROVED INVESTOR NATTYMAC Activity Key: = New Activity for Emerging Banker = Responsible Party BANKER FULFILLMENT PARTNER APPROVED INVESTOR NATTYMAC APPLY AND UNDERWRITE Take Loan Application Collect Documents Send Disclosures Pull Tax Transcripts (through Stonegate s site) Provide Appraisal through own AMC Order Flood Fraud Check Provide MERS Number (Stonegate until EB has ability) Underwrite Loan Order MI (Stonegate until EB has ability) Review POA Re-Disclose if Loan Changes Resolve Underwriting CLOSE AND FUND Request Closing and Provide UW Documents Pre-Closing Due Diligence and Compliance Audit Complete Final Verbal VVOE Resolve Compliance Issues - Change Fees, Re-Disclosure Draw Documents Prepare Final HUD Deliver Closing Package Order Funds Review Signed Closing Package Request Funds Send Funds to Closing Table Register and Transfer with MERS SELL CLOSED LOAN Submit Closing Package to Investor Resolve Purchase Issue Purchase Advice Submit Purchase Advice to Warehouse Move Loan Off Client Warehouse upon Receipt of Physically Signed Note and Funds Receipt Send Goodbye Letter to Borrower Transfer Flood, Hazard, Wind, MERS Collect First Payment Handle First Payment Exceptions if Investor Changes Make LPMI Payment Activate MI (by ordering party) Remit MIP, USDA Guaranty, or VA Funding Fees Net Fund any Required Insurance from Correspondent Purchase Advice (if applicable) Submit Loan for Insuring to FHA, VA, USDA Final Doc Follow Up OTHER - GENERAL WORK, NOT SPECIFIED TO ONE LOAN TRANSACTION HMDA and other Compliance Reporting 1098 Statement Monitor Warehouse Line Balance Keep Records of all Loan Documents Prepare GAAP Compliant Financials for Mortgage Bankers
EMERGING BANKER BUSINESS MODEL The diagram below shows the areas impacted by the program SGM/INVESTOR - FILE INTAKE AND UW SGM/INVESTOR - PA PURCHASE REVIEW SGM/INVESTOR - SECONDARY SGM/INVESTOR - SERVICING Start Loan Flood Fraud Guard MERS* File Intake Order MI* Clear Underwrite POA and Trust Review *Temporary Quality Assurance Check Clear Closing Pkg Purchase Review Issue Purchase Advice Issue Purchase Advice MIP/VA Guarantee Remittance Deliver Loan LPMI Collect First Payment Monitor Warehouse Line Balance Disclosures Initial and Updated Submit EB Loan Collect Borrower Documents Provide Underwriting TITLE COMPANY/CLOSING AGENT Create Loan Application EMERGING BANKER End Final Verbal VVOE Request Closing Clear Closing Receive Financials and Doc Copies Review Final HUD Assist with Purchase CLOSING SERVICES - FULFILLMENT PROVIDER Closing Pre-Closing Due Diligence and Compliance Audit Draw Documents (DOO or other provider) Review HUD Deliver Closing Package Funding Order Funds Review Signed Images Register with MERS Clear Purchase Get/Send Purchase Advice Reconcile Accounts Create Client Package Send Goodbye Letter to Borrower Transfer Flood, Hazard, Wind, PMI, MERS Generate 1098 Statement Handle First Payment Exceptions Compliance Reporting Prepare Final HUD Execute Closing Package Signed Documents (Paper) US BANK - CUSTODIAN Review Closing Package Manage Note Unsigned Package Receipt of Signed Note Funds Signed Images NATTYMAC - WAREHOUSE Process Wire Request Payoff Advice Move Loan to Early Purchase Facility *Transitions to EB once approved
NATTYMAC PROGRAM GUIDE Emerging* Preferred Elite Premier Net Worth $75,000 Minimum $100,000-$999,999 $1,000,000-$2,499,999 $2,500,000+ Base Rate 30-Day LIBOR plus Margin with Negotiated Floor Warehouse Line Size $1,000,000 $20,000,000 Maximum Line Size (Leverage to 25:1) Eligible Loans FNMA, FHLMC, FHA, VA, USDA, Stonegate Non-Agency/Jumbo, Stonegate 203(k) Underwriting Authority Prior Approved** Delegated & Prior Approved Eligible Investors All Approved Investors Delivery Options Best Effort Best Effort & Mandatory Advance Rates Stonegate: 100% Stonegate Non-Agency: 100% Approved Investors: 99% Package Fees E&O Fidelity Bond DDA Deposit Financial Reporting Negotiable Minimum coverage required is based on warehouse line size. Warehouse Facility Size Minimum Coverage Amount $1,000,000 - $4,999,999 $300,000 $5,000,000 - $9,999,999 $500,000 $10,000,000+ $1,000,000 $2,500 Per $1M in LOC, $5,000 Minimum Must be GAAP Compliant, Covenants are Verified Quarterly and Maintained Monthly CARMEL YORK Vice President Sales Western Region Ph: 831.241.2477 carmel.york@nattymac.com ASHLEY CROSSLIN Vice President Sales Eastern Region Ph: 727.824.8691 ashley.crosslin@nattymac.com Effective 6.23.15 *Emerging Banker partners utilize a fulfillment service for Closing and Post Funding Services **Delegated approval to $500,000 may be allowed on an exception basis Stonegate Mortgage is not licensed to originate loans in the following states: Hawaii and New York. This advertisement is intended for the use of professionals only and is not to be distributed to members of the general public. Visit stonegatemtg.com/state-licensing.aspx for complete licensing profiles. NattyMac has met all requirements to provide warehouse
NET STEPS 1. DISCUSS PROGRAM DETAILS WITH: Your Stonegate Mortgage Account Executive Your NattyMac Vice President of Sales 2. MAKE APPLICATION WITH NATTYMAC 3. TAKE CONTROL OF YOUR FUTURE Close Loans Faster Own Your Service Levels Be the Lender CARMEL YORK Vice President Sales Western Region Ph: 831.241.2477 carmel.york@nattymac.com ASHLEY CROSSLIN Vice President Sales Eastern Region Ph: 727.824.8691 ashley.crosslin@nattymac.com