CMG-Correspondent Lending Application revised 8-15-2014

CORRESPONDENT LENDING APPLICATION PACKET CHECKLIST

Minimum Requirements:

_____ Length of time the company has been in business - 2 years _____ Length of time with banking experience – 1 year _____ Minimum net worth - $2 Million

Required CMG Forms: *Note: Signature stamps, digital signatures and typed initials not accepted

_____ Correspondent Lending Application

_____ Waiver & Authorization(s) *Financial Institutions – Require Waiver only

_____ Loan Purchase Agreement *2 signed, unaltered copies to be mailed directly to corporate office

_____ Loan Fraud-Zero Tolerance

_____ Website Agreement

_____ Non-Disclosure Agreement

_____ Trademarks & Copyrighted Materials Policy

_____ Wire Authorization Form *Financial Institutions – Require Wire Instructions only

_____ Warehouse Line Information & Contact Information *Wire instructions required for each

_____ IRS Form W-9

_____ New Customer Information Form

Required Documentation:

_____ Audited Financial Statements for previous 2 years plus signed Year to Date Financial Statement’s _____ Copy of Company’s AIR (Appraisal Independence Requirements) policy _____ Copy of Company’s Quality Control Procedures (or executed contract with outside QC Firm) _____ Results of Last Quarters Quality Control Audit with Management’s response to the audit

_____ Report Cards/Score Cards from a minimum of two investors _____ Company’s Articles of Incorporation and current (within 90 days) Certificate of Good Standing _____ Resolution of Board of Directors with Secretary’s Certification (Forms available see LPA Exhibit E & 1)

_____ Organization Chart showing all current Officers/Principals/Directors and key staff

_____ Resumes for Principals/Officers/Owners/Directors showing responsibility and length of time in industry

*Financial Institutions- Require resume for Manager of Mortgage Lending Department only

_____ Errors & Omissions Insurance Policy *minimum $300,000 coverage

_____ Fidelity Bond *minimum $300,000

_____ MERS information

If Applicable:

______ VA Information Form

VA Lender Approval Letter

Underwriter LAPP/SAR Approval letter

______ USDA Approval Letter

Page 1 of 103/6/2014

CMG APPLICATION

CMG Account Executive / Regional Manager

Application Type Wholesale Wholesale Select Partner Correspondent

1. Company NMLS Federal Tax ID#

2. Legal Name of Company(Not DBA - Sole Proprietor enter Broker’s name)

3. DBA Name (if applicable)

4. Corporate/Headquarter Address

5. Authorized Principal Title

Fax Number Phone Number

Email

6. Primary Contact Phone Number

7. Is Company or Parent of Company a publicly traded entity? If so, please provide the following:

Entity Name Ticker

8. Length of time company on line 2 has been in mortgage business

Length of time company on lliine 2 has been iin morrttgage banking

9. Company is:

Sole proprietorship Gen partnership LTD partnership LLC

Corporation If so, date of incorporation state of incorporation

Federally Chartered Bank State Chartered Bank Credit Union

10. Number of full time employees:

Page 2 of 103/6/2014

11. MANAGEMENT Name Phone Email

President

CEO

CFO

Secondary Marketing

Production Manager

Operations Manager

Underwriting Manager

Funding Manager

Shipping Manager

Quality Control Manager

12. LIST ALL AFFILIATED ENTITIES *print additional pages as needed

Company Name #1

Company Type:(Title Company, AMC, Real Estate, etc.)

Company Name #2

Company Type:(Title Company, AMC, Real Estate, etc.)

Company Name #3

Company Type:(Title Company, AMC, Real Estate, etc.)

Company Name #4

Company Type:(Title Company, AMC, Real Estate, etc.)

Please document all affiliated business practices. Loans closed with unapproved affiliated entities are ineligible for purchase by CMG Financial.

Page 3 of 103/6/2014

13. LIST ALL PRINCIPAL(S) /OFFICER(S)/ OWNER(S) *print additional pages as needed

Full Name & Title

Social Security Number NMLS#

Address

Phone Email

Percent Ownership

Full Name & Title

Social Security Number NMLS#

Address

Phone Email

Percent Ownership

Full Name & Title

Social Security Number NMLS#

Address

Phone Email

Percent Ownership

Full Name & Title

Social Security Number NMLS#

Address

Phone Email

Percent Ownership

Total (must equal 100%)

Page 4 of 103/6/2014

14. AGENCY INFORMATION

Indicate with which of the following organizations the Company is approved to do business with and list the

number of loans and dollar amounts serviced.

Agency Approved Approval Date ID Number # of Loans Amount Serviced

VA

VA Automatic

FHA

FHA DE

Fannie Mae

Freddie Mae

15. ORIGINATION METHOD Average monthly Origination Volume

Retail Channel %

Branches #

Wholesale Channel %

Branches #

Correspondent Channel %

Internet/Call Center Channel %

Affinity Channel %

First Lien Mortgages %

Second Lien Mortgages %

Third Party Originators %

How long has company been using TPO?

How many TPO’s are currently approved with your company?

Minimum net worth requirement for TPO’s to become approved with your company?

Minimum years’ experience for TPO’s to become approved with your company?

Do you verify TPO SAFE Act Compliance?

Do you have a recertification process for TPOs

Do you perform pre-funding quality control on TPO loans?

Do you perform post funding QC for TPO loans?

Page 5 of 103/6/2014

16. LOAN VOLUME

Past 2 Years YTD Next Year To CMG

201 201 201 (Projected) (Projected)

Conforming $

Jumbo $

HELOCS $

FHA $

VA $

Totals $ $ $ $ $

17. SERVICING INFORMATION

Do you perform loan servicing?

(* Please list in dollar amounts for all years requested above.)

Prior Period Current Period

Units Dollar Volume Units Dollar Volume

Conforming $

Jumbo $

HELOCS $

FHA $

VA $

Totals

18. DELINQUENCY INFORMATION

Unit Dollar($000)

60+ Foreclosure REO 60+ Foreclosure REO

Conforming $

Jumbo $

HELOCS $

FHA $

VA $

Total Volume

Page 6 of 103/6/2014

19. REFERENCES

List of “Lender” References (Please list a minimum of three on the lines below):

Lender Contact Name Phone Length of Relationship

1

2.

3.

20. INVESTOR INFORMATION

List all Investors you are currently selling loans to. (Attach additional pages as necessary.)

Investor Type of Relationship Delegated Contact Phone (Correspondent/Broker) (Y/N)

1

2.

3.

4

5.

6.

21. GENERAL INVESTOR INFORMATION

What % of your company’s loan production is sold on a bulk basis %

What % of your company’s loan production is sold on a best efforts basis %

What % of your company’s loan production is sold on a mandatory trade basis %

What % of your company’s loan production is sold on an assignment of trade basis %

What hedging firm are you currently using? _______________________________

Page 7 of 103/6/2014

DISCLOSURES

1. In the last five years, has the Company (or its predecessors) changed its legal or capital structure,state of formation of Chief Executive Offices, or entered into mergers, acquisitions or similar transactions?

Yes No *If yes, please include a letter of explanation.

*If yes, indicate the nature of such change and the names of each company that was merged orconsolidated with or acquired by the Company (or its predecessors) including each name under which each such company has done business and the address of each place of business of each such company immediately prior to such merger, consolidation or acquisition and within four month prior to the date of this application.

2. Are there any other companies in which the Shareholders or Officers of the Company (or theirrelatives) hold any interest that are in the mortgage or real estate business that conduct any business with the Company?

Yes No *If yes, please include a letter of explanation.*If yes, indicate the name and nature of the business.

3 . Has the Company or any existing or former organization (an “Affiliate”) owned or controlled by owners or senior Officers (collectively or individually, “Principals”) of the Company ever been suspended from selling or servicing mortgages by an investor or a regulatory agency?

Yes No If yes, please include a letter of explanation.

4 . Has the Company, any Affiliate, Principals, Officers, key managers or the Broker of Record ever been named defendant in a lawsuit for alleged fraud or misrepresentation in connection with any mortgage, loan or real estate related activity?

Yes No If yes, please include a letter of explanation.

5 . Has the Company, any Affiliate, Principals, Officers, key managers or the Broker of Record filed for protection from creditors under any provision of the bankruptcy laws within the past seven (7) years?

Yes No If yes, please include a letter of explanation.

6. Has the Company, any Affiliate, Principals, key managers or the Broker of Record ever had a realestate or other professional license suspended or revoked or received any other disciplinary action from any regulatory agency?

Yes No If yes, please include a letter of explanation.

7. Has any investor, lender of warehouse facility buyer enforced or attempted to enforce the warehouseor indemnification clauses of their agreements with the Company, any Affiliate, Principals, Officers, key managers or the Broker of Record?

Yes No If yes, please include a letter of explanation.

8. Has the Company ever received notice of a material default or breach under the terms of anyagreement with an investor, lender or warehouse bank?

Yes No If yes, please include a letter of explanation.

Page 8 of 103/6/2014

9. Has the Company, any Affiliate, Principals, Officers, key managers or the Broker of Record ever hadinsurance or bonding privileges, once granted, suspended or terminated?

Yes No If yes, please include a letter of explanation.

10. Has the Company, any Affiliate, Principals, Officers, key managers or the Broker of Record everbeen convicted of a felony or crime involving moral turpitude?

Yes No If yes, please include a letter of explanation.

11. Are there any present lawsuits in which the Company, any Affiliate, Principals, Officers, keymanagers or the Broker of Record are involved as a defendant?

Yes No If yes, please include a letter of explanation.

12. Has the Company, any Affiliate, Principals, Officers, key managers or the Broker of Record had anysubstantial adverse findings with regard to mortgage originations or servicing in any audit or examination conducted by FHLBB, FHLMC, GNMA, FNMA, HUD, or any other federal or state agency in the past three years?

Yes No If yes, please include a letter of explanation.

13. Has the Company experienced any significant operating losses in the past twelve months?

Yes No If yes, please include a letter of explanation.

14. Has the Company or any of its Officers had adverse findings from any state or government agency?

Yes No If yes, please include a letter of explanation.

15. Has the Company or any of its Senior Officers ever been suspended or canceled from selling or

submitting loans by an Investor?

Yes No If yes, please include a letter of explanation.

16. Is the Company involved in any pending lawsuits?

Yes No If yes, please include a letter of explanation.

17. Has the Company been required to re-purchase a loan?

Yes No If yes, please include a letter of explanation.

18. Has the Company or any of your Senior Officers ever had a license denied, revoked or been undercease and desist order or administrative action in any state?

Yes No If yes, please include a letter of explanation.

Page 9 of 103/6/2014

19. Does the company have an in-house escrow? Yes No

If yes, name the escrow entity

Does the company have an ownership in an escrow company? Yes No

If yes, name of the escrow company

20. Are you a member of the Mortgage Bankers Association? Yes No

21. Are you currently using MERS? Yes No

22. What loan origination software (LOS) are you currently using?

23. Loan file audits are conducted: Internally Outsourced

24. What Mortgage Insurance Company are you approved with?

Are you delegated or non-delegated?

BONDING & INSURANCE

Fidelity Bond Carrier Bond # Exp Date

E&O Insurance Carrier Policy # Exp Date

Surety Bond Carrier Bond # Exp Date

ACKNOWLEDGEMENT & CERTIFICATION The undersigned Applicant and Broker of Record acknowledge that the information contained herein is true and correct and may be disclosed by CMG to third parties without the Applicant’s prior permission. The Applicant acknowledges that CMG and others, including federally insured financial institutions that may fund or purchase the requested facility, will rely on the Applicant’s representations in this application, all of which are material. Any inaccuracy or misrepresentation in this application may subject the Applicant or those signing this application to criminal and civil liability under both state and federal law, including Title 18 U.S.C. Section 1001 et seq. The Applicant authorizes CMG and its agents to verify the information and to conduct business credit and public information source inquiries regarding the Applicant. The Applicant agrees that CMG may disclose any information developed in its quality control review investigations to third parties. The Applicant waives any and all claims for errors, omissions or inaccuracies in information developed or disclosed by CMG. Applicant agrees to indemnify, defend and hold CMG (and its affiliates, employees, officers, shareholders and agents) harmless for any injuries, claims or damages brought against Applicant and caused by disclosure of information by CMG to others. Each individual executing this application on behalf of the Applicant warrants that he/she/they are authorized to execute this application on behalf of such Applicant of corporation and the application if binding on the Applicant.

Agreed and Accepted

Date

Signature

Printed Name

Title

Company

CMG-­‐Correspondent  Lending  Application revised  7-­‐2-­‐2014  

CORRESPONDENT LENDING APPLICATION PACKET CHECKLIST

Minimum Requirements:

_____ Length of time the company has been in business - 2 years _____ Length of time with banking experience – 1 year _____ Minimum net worth - $1 Million

Required CMG Forms: *Note: Signature stamps, digital signatures and typed initials not accepted

_____ Correspondent Lending Application _____ Waiver & Authorization(s) *Financial Institutions – Require Waiver only _____ Loan Purchase Agreement *2 signed, unaltered copies to be mailed directly to corporate office _____ Loan Fraud-Zero Tolerance _____ Website Agreement _____ Non-Disclosure Agreement _____ Trademarks & Copyrighted Materials Policy _____ Wire Authorization Form *Financial Institutions – Require Wire Instructions only _____ Warehouse Line Information & Contact Information *Wire instructions required for each _____ IRS Form W-9 _____ New Customer Information Form

Required Documentation:

_____ Audited Financial Statements for previous 2 years plus signed Year to Date Financial Statement’s _____ Copy of Company’s VIR (Valuation Independent Rules) policy _____ Copy of Company’s Quality Control Procedures (or executed contract with outside QC Firm) _____ Results of Last Quarters Quality Control Audit with Management’s response to the audit _____ Report Cards/Score Cards from a minimum of two investors _____ Company’s Articles of Incorporation and current (within 90 days) Certificate of Good Standing _____ Resolution of Board of Directors with Secretary’s Certification (Forms available see LPA Exhibit E & 1) _____ Organization Chart showing all current Officers/Principals/Directors and key staff _____ Resumes for Principals/Officers/Owners/Directors showing responsibility and length of time in industry

*Financial Institutions- Require resume for Manager of Mortgage Lending Department only_____ Errors & Omissions Insurance Policy *minimum $300,000 coverage

_____ Fidelity Bond *minimum $300,000 _____ MERS information

If Applicable: ______    VA Information Form

q VA Lender Approval Letter q Underwriter LAPP/SAR Approval letter

______ USDA Approval Letter

© 2014 CMG Financial, All Rights Reserved. CMG Financial is a registered trade name of CMG Mortgage, Inc., NMLS #1820 in most, but not all states. CMG Mortgage, Inc. is an equal opportunity lender, licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act No. 4150025, California Finance Lenders Law No. 6053674. For information about our company, please visit us at www.cmgfi.com. To verify our complete list of state licenses, please visit www.nmlsconsumeraccess.org. For more information on State licenses, please visit www.cmgfi.com/licensing.php.

Page 10 of 103/6/2014