broker checklist comergence - eprmg.net · 6.5 broker agrees to retain records evidencing...

Broker Application Checklist

The following items are required to be approved as a Broker with PRMG:

( ) 1. PRMG Broker Agreement signed by the President/CEO/Owner/Broker of Record (rev. dated 01/14) ( ) 2. Company Formation – Articles of Incorporation or Articles of Organization (LLC) (if applicable) ( ) 3. Certified Copy of Corporate Resolution (if applicable) signed by President, Corporate Secretary and all authorized signers ( ) 4. Resumes for principals, directors and broker of record ( ) 5. Authorization to Release Information Form (Credit Consent) ( ) 6 Broker’s Personal Credit Report (Minimum 2 bureaus with scores, min. 620, dated within the last 90 days) ( ) 7. Fax/Email Authorization Form- eSign ( ) 8. Zero Loan Fraud Agreement- eSign ( ) 9. IRS Form W -9 ( ) 10. Balance Sheet and Profit & Loss Statement- current within the last 90 days ( ) 11. PRMG Broker Compensation Plan - fully executed with appropriate compensation selection marked ( ) 12. Copy of Quality Control Procedures (QC Plan) ( ) 13. AML Certification in Comergence

FHA Correspondents (Optional for FHA Approval): ( ) 12. PRMG FHA Addendum (rev. dated 01/14) ( ) 13. Resumes for qualified Processor(s), with a minimum of 12 months FHA experience specified

VA Correspondents (Optional for VA Approval): ( ) 14. Signed PRMG VA Addendum (rev. dated 8/24) ( ) 15. Complete VA Admin Info form (if applicable) ( ) 16. $100 VA fee, made payable to VA or Veterans Affairs

…………………………….…………………………….…………………………………….……………

Please Note: Based upon prior FHA experience, originators and processors may require additional FHA Certification and Training.

Please Note: Please be sure all required items are fully completed and executed before uploading to the Comergence broker site. Please also send a completed copy via e-mail to PRMG at [email protected].

Broker Services 1265 Corona Pointe Court, Suite 301, Corona, CA 92879

Tel: (951) 278-0000 Fax: (951) 278-5630

mailto:[email protected]

PRMG/ BROKER AGREEMENT 01/01/14 1

Broker Agreement

THIS BROKER AGREEMENT (herein, the “Agreement”) is made and entered into by and between Paramount Residential Mortgage Group, Inc. dba PRMG or PRMG, Inc. (, "PRMG”) and ("Broker") (herein, individually, a “Party,” and collectively, the “Parties”).

WITNESSETH:

WHEREAS, PRMG is a mortgage lender which underwrites and funds residential mortgage loans for portfolio and/or sale to investors in the secondary market;

WHEREAS, Broker assists loan applicants in locating residential mortgage lenders to finance the purchase and refinance of residential property;

WHEREAS, Broker originates by assisting loan applicants in completing and processing loan applications for consideration and review by various residential mortgage lenders;

WHEREAS, PRMG and Broker desire to enter into a non-exclusive relationship under which Broker may submit such loan applications and supporting documentation to PRMG from time to time for its consideration;

WHEREAS, PRMG desires to consider making loans secured by mortgages to such loan Applicants in accordance with established terms and conditions;

NOW THEREFORE, in consideration of the foregoing and for other good and valuable consideration the receipt, sufficiency, and adequacy of which are hereby acknowledged, the Parties hereby agree as follows:

I. DEFINITIONS

1.1 Applicant(s) means individual(s) who engage with Broker to obtain a Loan through an independent lender.

1.2 Affiliated Settlement Service Provider means a provider of mortgage loan settlement services that is controlled by or under common control with Correspondent, as “affiliate is defined in in the Bank Holding Company Act, 12 U.S.C. 1841.

1.3 CFPB means the Consumer Financial Protection Bureau. 1.4 Loan(s) means a one-to four-unit residential mortgage loan with a term that does not exceed

360 months. 1.5 Loan Closing means the date PRMG funded the loan. 1.6 Loan Application Package means a documentation package submitted to PRMG by Broker for

the Applicant(s) to apply for a Loan. 1.7 Mortgaged Property means the borrower’s real property, which consists of a fee simple

interest in real property with a one- to- four-family residential dwelling pledged to secure repayment of the Loan.


II. PREPARATION AND DELIVERY OF LOAN APPLICATIONS

2.1 Broker shall, from time to time, in the ordinary course of Broker’s business, accept from individual Applicants their applications for residential mortgage loans.

2.2 Each individual Loan Application Package submitted to PRMG by Broker shall be complete and accurate and meet all of PRMG’s standard requirements for the receipt of such packages from approved brokers in accordance with the policies, procedures and fee schedules set by PRMG and provided to Broker from time to time for a loan program currently offered by PRMG.

2.3 Broker shall submit to PRMG for PRMG’s review and approval or rejection, those Loan Application Packages for Loans that Broker, in Broker’s sole discretion, elects to submit to PRMG. Broker shall not be obligated to submit any particular Loan Application Package to PRMG.

2.4 Each individual Loan Application Package submitted to PRMG shall meet all federal and state laws and regulations, including, but not limited to, 12 C.F.R. 1026.43 and the CFPB’s Ability-to- Repay Rule.

III. SUBMISSION OF LOAN APPLICATION PACKAGES

3.1 Broker expressly understands and acknowledges that the sole purpose of the submission of Loan Application Packages to PRMG is for PRMG to make an underwriting determination of the Applicant's creditworthiness, the value of the Mortgaged Property and the suitability of the proposed loan as an investment for PRMG and, based on this review, to either approve or reject the Loan Application Package.

3.2 Broker shall indicate clearly to all Applicants that no Loan Application Package may be fully considered by PRMG for approval or rejection until a completed Loan Application Package together with all requisite supporting documentation is submitted to PRMG.

3.3 All Loan Application Packages submitted become the exclusive property of PRMG upon submission.

3.4 Broker acknowledges and agrees that in the course of its business, PRMG conducts quality control audits of Loan Application Packages. PRMG shall have the right to review the Broker’s files related to Loan Application Packages submitted to PRMG, and Broker shall make such records available to PRMG during Broker's normal business hours.

IV. APPROVAL OR REJECTION OF LOAN APPLICATION PACKAGES BY PRMG

4.1 Subsequent to Broker's submission of a completed Loan Application Package in accordance with the provisions of this Agreement, PRMG shall consider whether to approve or reject the Loan Application Package.


4.2 PRMG shall not be under any obligation to approve a particular Loan Application Package or

any minimum number of Loan Applications (and so make any Loans) at all. PRMG shall have the right, but not the obligation, to underwrite any Loan Application Package. The exercise of this right by PRMG shall not affect in any way Broker's obligations hereunder, including, without limitation, Broker's indemnification obligations under this Agreement. PRMG shall use its best efforts to be responsive to Broker but is under no obligation to approve or reject any Loan Application Package within a prescribed period of time. PRMG shall approve or reject each Loan Application Package solely for PRMG’s own benefit and account and in making such determination, PRMG expressly disclaims any inference Broker may draw as to the general quality or acceptability of the underlying Loan Application Package or the related loan application.

4.3 If Broker fails to submit a complete Loan Application Package, including all documentation requested or desired by PRMG, PRMG has the option, in PRMG’s sole discretion, to (i) commit to make the Loan based on the documentation provided, (ii) commit to make the Loan subject to submission of additional documentation required prior to closing, (iii) request further information or documentation from Broker, or (iv) reject the Loan Application Package.

4.4 Broker acknowledges that Loan Application Packages that are suspended by PRMG will be denied after 30 days if Broker does not respond to the suspense conditions.

4.5 Broker understands and acknowledges that, pursuant to Title 18, United States Code, Section 1014, it is a crime, punishable by fine, imprisonment or both, knowingly and willfully to falsify or conceal a material fact or make a false statement in a loan application.

4.6 Broker maintains anti-money laundering policies and procedures in compliance with 31 C.F.R. 1010 and 1029.

V. APPROVAL AND COMMITMENT OF LOANS

5.1 PRMG shall notify Broker as to the disposition of all Loan Application Packages. 5.2 Any loan commitment letters for approved Loan Application Packages shall be issued by

PRMG to Applicants and shall be effective only if executed by the appropriate authorized individuals as are granted loan signature authority by PRMG. Except for what PRMG provides pursuant to state disclosure requirements, no other commitment letter or contracts shall be valid under any circumstances. Notwithstanding any provision of this Agreement to the contrary, whether any Loan shall be made, and if so, in what amount and under what terms, is in the sole discretion of PRMG, and PRMG, in its sole discretion, shall have no obligation whatsoever to approve or fund any Loan which is not approved in writing by authorized representatives of PRMG.

5.3 All Loans underwritten and approved by PRMG shall close in PRMG’s name.

VI. BROKER COMPENSATION

6.1 Nothing shall be owed to Broker by PRMG on account of any Loan Application Package submitted to PRMG that is not closed and funded by PRMG.


6.2 Broker agrees that all Loans submitted to PRMG comply the originator compensation and anti-

steering provisions of the Truth in Lending Act and Regulation Z at 12 C.F.R. 1026.36, including but not limited to, the provisions of the CFPB’s Origination Compensation Rule applicable to compensation paid to Broker and compensation paid by Broker to individual loan originators.

6.3 Broker agrees to provide PRMG a copy of Broker’s current Originator Compensation Policy, which Broker certifies is true and correct and in compliance with all applicable federal and state laws and regulation, including the CFPB’s Originator Compensation Rule. Broker agrees to provide any updated or revised Originator Compensation Policy(ies) to PRMG within five (5) business days of the date of such revision.

6.4 Broker further agrees to provide PRMG with any records as PRMG may request to validate Broker’s compliance with the originator compensation and anti-steering provisions of Regulation Z 12 C.F.R. 1026.36.

6.5 Broker agrees to retain records evidencing Broker’s compliance with the Regulation Z originator compensation and anti-steering rules, including but not limited to, originator compensation plans, payroll records, lender rate sheets and borrower loan offer sheets, for at least three years, in compliance with 12 C.F.R. 1026.25(a).

6.6 Any fees, commissions or other consideration to which Broker may be entitled will be paid by PRMG to Broker in the event a Loan Application Package submitted by Broker to PRMG is approved and funded by PRMG. Such compensation will be paid by PRMG upon confirmation of Loan Closing; however, such compensation shall be in accordance with customary broker fees for that type of loan in the applicable market at the particular time.

6.7 If Broker’s compensation on a Loan will be paid by PRMG, Broker will be paid according to Broker’s Lender-paid Compensation Plan in effect with PRMG on the Loan submission date.

VII. INDEPENDENT CONTRACTOR

7.1 Broker is an independent contractor and shall make no oral or written representation which

has or may have the effect of leading any person to believe that Broker is an agent, employee, representative, partner or co-venturer of PRMG, or that Broker has the authority to make any contract, create any contractual obligation or bind PRMG in any way. Broker shall promptly give notice of the foregoing limitation to each Applicant assisted by Broker for whom Broker intends to submit a Loan Application Package to PRMG.

7.2 Broker may not represent that Broker's office is an office or branch of PRMG, and may not use any sign, letterhead, business card, check, or other identification which implies that Broker's office is an office or branch of PRMG or that Broker is an agent or representative of PRMG.

7.3 Broker may not use the designation "Agent" when referring to Broker's relationship with PRMG. Broker may not refer to PRMG in any solicitation including, without limitation, advertising or mailing, without prior consent of PRMG, which consent may be given or denied at PRMG’s sole discretion. Any such consent shall not be deemed consent for any subsequent solicitation. Broker shall promote PRMG’s reputation and will refrain from and avoid committing any act or deed which will in any way be detrimental to or reflect negatively on PRMG’s name and reputation.

7.4 In the event Broker employs any person or persons, all such employees are employees of the Broker and PRMG shall not be responsible for the actions of such employees.


7.5 Broker shall be responsible for all of Broker’s operational expenses, including, without limitation, office expenses, salaries for employees, insurance premiums, office equipment, appraisal, and all costs and expenses of processing loans. PRMG is not obligated or responsible to pay or reimburse Broker for any costs or expenses incurred in Broker’s business operations or in the Loan Application Package process.

VIII. AFFILIATED SETTLEMENT SERVICE PROVIDERS

8.1 Broker acknowledges and agrees to: (i) immediately notify PRMG of any Affiliated Settlement

Service Providers and (ii) identify all fees paid to Affiliate Settlement Service Providers on all Loan Application Packages and Closing Document Request Forms.

8.2 Broker understands and acknowledges that it must complete “Exhibit A” of this Agreement and receive separate approval from PRMG to use any Affiliated Settlement Service Providers. To be approved, Broker understands that additional financial requirements may be required. PRMG maintains the right to change from time to time, the additional requirements for approval to use Affiliated Service Providers in connection with their Loans.

8.3 Broker must include all Affiliated Settlement Service Providers on “Exhibit A” to this Agreement irrespective of whether Broker plans on using its Affiliated Settlement Service Providers. Broker must update “Exhibit A” to this Agreement before: (a) Broker closes any loan that involves the use of any Affiliated Settlement Service Provider; or (b) within 10 days of any changes or additions made to the Brokers Affiliated Settlement Service Providers, whichever is sooner.

8.4 Broker acknowledges and agrees that failure to comply with Section VIII constitutes an event of default under this Agreement.

IX. FINANCIAL STATEMENTS OF BROKER

9.1 Broker shall, upon request but at least annually, submit to PRMG financial statements for the most recent 12-month period that accurately and completely disclose any material adverse changes that have occurred and that otherwise are satisfactory to PRMG.

9.2 Broker’s financial Information shall be used by PRMG for monitoring of Broker's performance only and will be held in strictest confidence by PRMG.

X. AUTHORIZATION TO OBTAIN BUSINESS CREDIT REPORT

10.1 Broker authorizes PRMG to obtain a business credit report with respect to Broker upon

mutual execution of this agreement. 10.2 PRMG may update such business credit report at annual re-certification of Broker’s approval

with PRMG or from time to time in PRMG’s sole discretion.

XI. THIRD-PARTY VENDORS

11.1 Broker shall ensure that all third-party vendors’ procedures comply with all applicable federal and state laws and regulations.

11.2 Broker shall provide documentation of Broker’s third-party vendor management policies, procedures and documentation to PRMG upon request.


XII. REPRESENTATIONS AND WARRANTIES REGARDING BROKER

12.1 Broker and Broker’s agents have and will maintain an NMLS Registration and, in all applicable jurisdictions, all qualifications and licenses necessary to act as a mortgage loan originator, as defined under the SAFE Act, and to undertake the transactions contemplated by this Agreement. Broker represents and warrants that Broker holds all required qualifications and licenses in Broker’s own name and that Broker is in good standing with all state or applicable regulatory agencies. Broker will notify PRMG immediately when any such qualification or license lapses, is suspended or revoked, or an agency takes any action against Broker which in any way adversely affects Broker’s license(s).

12.2 If the Broker is in the form of a Partnership, LLC, or Corporation, it is duly organized, validly existing and in good standing under the laws of the state in which the entity was formed, and has the requisite power and authority to enter into this Agreement.

12.3 This Agreement and all actions covered herein have been duly authorized by Broker's Board of Directors, if Broker is a corporation, or by such individual or individuals empowered and authorized to enter into agreements on behalf of Broker. Broker shall provide PRMG with evidence reasonably satisfactory to PRMG of such authorization. The performance of Broker’s duties under this Agreement will not violate the provisions of Broker's organizational documents, any agreement to which Broker may be a party, or any court order, judgment or decree to which Broker may be subject.

12.4 Broker will make no oral or written statement to any Applicant which is not consistent with the facts and provisions set forth in this Agreement and the standard form documents of submission and collateral materials provided by PRMG, as such may be amended from time to time.

12.5 Except as previously disclosed by Broker to PRMG in writing, there is not pending or, to the best of 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 Broker’s current or former owners, agents, or employees which could have a materially adverse effect on Broker's business, assets, financial condition, operations or reputation. Broker further certifies that there are no federal or state sanctions pending against Broker.


XIII. REPRESENTATIONS AND WARRANTIES REGARDING THE LOANS

13.1 Broker shall, both in the conduct of Broker’s business generally, and in Broker’s handling of each Loan Application Package and the preparation of related documents and materials in particular, comply fully, completely and in a timely manner with every requirement of all applicable federal and state laws and regulations, including amendments to same, dealing with the origination of residential mortgage loans, including, without limitation, the following: (a) the Equal Credit Opportunity Act; (b) the Truth in Lending Act; (c) the Real Estate Settlement Procedures Act; (d) the Fair Credit Reporting Act; (e) Fair Lending Laws, (f) any applicable state acts, codes, rules and/or regulations; (g) to the extent applicable, all rules, requirements and regulations of the CFPB, the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, the Federal Housing Authority, the Government National Mortgage Association, the Department of Housing and Urban Development, the Veterans' Administration, and any other applicable state agencies and/or administrative authorities; and (h) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all regulations issued thereunder, including without limitation, the Consumer Financial Protection Bureau’s Ability-to-Repay, Qualified Mortgage and Originator Compensation regulations. Notwithstanding the foregoing, however, Broker shall comply with applicable federal and state law only for itself and its own name. Broker shall not name PRMG in any disclosure statement or other document or instrument except as required by law as the lender or creditor, or otherwise.

13.2 Each Loan Application Package submitted to PRMG will be complete and prepared in accordance with PRMG’s current terms, conditions, policies and procedures, and Broker shall assume all responsibility for remedying any deviation, deficiency or defect prior to the funding of any Loan by PRMG.

13.3 Broker acknowledges that all Loans closed under this Agreement become the property of PRMG and that Broker has been compensated for Broker’s involvement therein and relinquishes all claims and rights to such Loans. Broker further agrees not to solicit for refinance any Loans closed by PRMG under this Agreement for a period of six (6) months from the date of closing.

13.4 No known or unknown statement, representation or document made or submitted to PRMG in connection with this Agreement or any Loan Application Package is untrue, inaccurate or misleading in any respect whatsoever, or omits any material fact necessary to make any statement or information included therein true, accurate and understandable, and Broker will immediately report to PRMG any known or believed to be false, inaccurate, altered or forged statement, representation or document which may come to Broker’s attention. The statements and representations in this Agreement and all Loan Application Packages submitted to PRMG are made on an on-going basis and shall be true, complete and accurate throughout the term of this Agreement.

13.5 Except as otherwise disclosed to PRMG in writing before the submission of any Loan Application Package, Broker shall have no direct or indirect ownership interest in any property acting as security for the Loan.

13.6 All documents submitted by Broker in connection with Loans and Loan Application Packages submitted to PRMG are in every respect valid and genuine, being what on their face they purport to be, and all information (credit or otherwise) submitted in connection with such Loans and Loan Application Packages is true and accurate.


13.7 Broker has no knowledge of any circumstances or conditions with respect to any Loan, Mortgaged Property, mortgage or borrower’s credit standing that can be reasonably expected to cause any governmental, quasi-governmental or private institutional investors to regard any Loan as an unacceptable investment, cause any Loan to become delinquent, or adversely affect the value or marketability of any Loan.

13.8 Broker hereby agrees to comply with all applicable federal and state disclosure requirements, including but not limited to, RESPA and Truth in Lending initial and subsequent disclosure requirements.

13.9 Broker shall provide all documentation requested by PRMG, which PRMG may need to establish a funded Loan’s compliance with all federal and state laws and regulations including but not limited to, the CFPB’s Truth in Lending regulations and Ability-to-Repay/Qualified Mortgage Rule.

XIV. INDEMNIFICATION AGAINST LOSS

15.1 Broker hereby agrees to indemnify, hold harmless and defend PRMG, its agents, directors, officers, employees, successors, assigns and affiliates (collectively, the "Indemnified Parties") from and against any and all losses, causes of action, liabilities, claims, demands, obligations, damages, costs and expenses, including reasonable attorneys' and accountants' fees arising out of or in connection with any breach of Broker’s obligation(s) under this Agreement, or Broker’s negligence, willful misconduct, or bad faith with regard to any act or failure to act of Broker, its agents, employees, officers or shareholders. In the event PRMG, in its sole discretion, decides to exercise its right to indemnification, the Broker agrees to indemnify PRMG, its successors and/or assigns, against any losses for such act or failure to act as follows: (a) The unpaid principal balance on the loan; and (b) All interest accrued but unpaid on the principal balance of the Loan from the date of

funding by PRMG through and including the first day of the month following the month the obligation under the note is paid in full; and

(c) All costs and expenses by PRMG in connection with the loan; and (d) All costs and expenses incurred by PRMG in enforcing Broker's indemnification obligation

on the loan, including, without limitation, reasonable attorneys’ fees and costs of suit. 15.2 Broker's obligation to fully indemnify PRMG under this Agreement shall not be affected by

PRMG’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.

15.3 If the first payment or any of the first six (6) payments to PRMG, its successors and/or assigns becomes more than ninety (90) days delinquent, PRMG, at its sole option, may require Broker to indemnify PRMG against or make whole any losses to PRMG on such Loan pursuant to this Agreement. The decision to indemnify is PRMG’s sole discretion.


15.4 Broker hereby indemnifies PRMG from and against any claims, damages, costs and expenses,

including attorneys’ fees and court costs, that result from inaccurate or missing disclosures of any kind required to be delivered by Broker, including Broker’s failure to accurately or completely identify all points and fees and amounts paid to Affiliated Settlement Service Providers on a Loan submitted to PRMG as a Qualified Mortgage, whether such inaccurate or missing disclosure is discovered by PRMG’s own procedures or as a result of examination by a subsequent assignee or a governmental agency.

XV. EARLY LOAN PAYOFF

16.1 Notwithstanding PRMG’s rights under this Agreement, in the event that (i) a premium is paid by PRMG to Broker on a Loan and (ii) such Loan is prepaid in full by the borrower within the first six (6) payments, Broker shall, upon demand by PRMG, refund any Lender-paid Broker compensation.

XVI. COMPLIANCE WITH PRIVACY LAWS

17.1 In the course of performance of services under this Agreement, either Party may provide to the other nonpublic personal information (the “Information”) regarding consumers and customers, as these terms are defined by the Gramm-Leach-Bliley Act, Pub. L. 106-102, and the accompanying regulations, 16 C.F.R. 313.1 et seq., as amended from time to time (the “Privacy Laws”). Each Party acknowledges and agrees that they have reviewed, understand and will abide by all requirements of the Privacy Laws with respect to the Information shared in the course of each Party’s performance under this Agreement. The Parties’ restrictions under this Section include, but are not limited to: (a) Neither Party will disclose Information to any third party except as authorized by the

Privacy Laws; and (b) The Party receiving Information will use it only to carry out the performance of services as

required by this Agreement and not for any other purpose. XVII. MISCELLANEOUS

18.1 NOTICE OF MATERIAL CHANGES. Broker hereby covenants and agrees with PRMG that Broker shall promptly give written notice to PRMG of (a) the occurrence of any breach of Broker’s obligations under this Agreement; (b) Any litigation or proceeding affecting Broker involving amounts in the case of any such individual litigation, regardless of the amount in controversy, if adversely determined, could have a materially adverse effect on the business, operations, property, licensure, or financial or other condition of Broker or Broker’s ability to perform its obligations hereunder; (c) receipt by Broker of notice from any agency concerning revocation, suspension or any other adverse action or potential action relating to any of Broker's licenses to conduct business; and (d) a materially adverse change in Broker’s business, operations, property or financial or other condition.


18.2 TERMINATION. PRMG reserves the right to terminate this Agreement at any time, and for any

reason, with or without cause, which termination shall be effective upon the sending of written notice thereof to Broker’s current address on file with PRMG. In the event of such termination, this Agreement shall remain in full force and effect with respect to all obligations, representations, warranties and covenants arising under this Agreement or out of or relating to Loans subject to this Agreement. Upon termination, Broker shall, within five (5) days deliver to PRMG a mutually acceptable list of any Loan Application Packages submitted to PRMG prior to the termination of this Agreement which are either approved for funding or pending further review.

18.3 NOTICE. Any notice necessary to be given under the provisions of this Agreement will be sufficient if in writing and delivered either personally or by mail, first-class postage prepaid or nationally recognized overnight carrier to the address on file in each Party’s records relating to the other Party. Notices sent by first class mail shall be deemed received three days following the date when mailed, and notices personally delivered or sent by overnight carrier shall be deemed received on the earlier of actual receipt or two days after sending.

NOTICES TO PRMG SHALL BE SENT TO:

ATTN: BROKER SERVICES PARAMOUNT RESIDENTIAL MORTGAGE GROUP, INC. 1265 CORONA POINTE COURT, SUITE 301 CORONA, CA 92879

18.4 WAIVER. No provisions of this Agreement may be amended, waived, or modified in any

manner without the written consent of both Parties, executed by an authorized officer. 18.5 SEVERABILITY. Each part of this Agreement is intended to be severable. In the event any

provision of this Agreement shall be invalid, illegal or unenforceable, such invalidity, illegality or unenforceability shall not affect the remaining provisions which shall remain in full force and effect and shall be binding upon the Parties.

18.6 HEADINGS. The headings of the paragraphs of this Agreement are inserted for convenience only and shall not affect the meaning or interpretation of this Agreement or any provisions thereof.

18.7 GOVERNING LAW. This Agreement and the rights and obligations of the Parties hereto shall be governed by the laws of the State of California and the local rules of Riverside County.

18.8 CHOICE OF VENUE. Any suit or proceeding shall be brought in the federal or state courts located in Riverside County, California, which courts shall have sole and exclusive in persona, subject matter and other jurisdiction in connection with such suit or proceedings, and venue shall be appropriate for all purposes in such courts.

18.9 ASSIGNMENTS BINDING, BINDING EFFECT. This Agreement shall be binding upon and shall inure to the benefit of the Parties and their respective successors and assigns; provided, however, that Broker may not assign its right or any interest herein (voluntarily, by operation of law, or otherwise) without the prior written consent of PRMG. This Agreement shall not be construed so as to confer any right or benefit upon any person other than the Parties to this Agreement, and their respective successors and assigns.


18.10 CONFIDENTIALITY. Broker shall not disclose to any person, other than representatives of

PRMG or its counsel, any confidential information obtained by it from PRMG or about an Applicant or Loan that has been approved by PRMG. Broker shall take reasonable measures to avoid any unintentional or inadvertent disclosure of any confidential information to unauthorized parties by its employees or agents.

18.11 WAIVER OF JURY TRIAL. In the event of any litigation arising from this Agreement, PRMG and Broker hereby agree to waive any rights to a jury trial.

18.12 ATTORNEYS’ FEES. In the event of a dispute between the Parties hereto, the prevailing Party shall be entitled to recover its reasonable attorneys' fees and costs.

18.13 ENTIRE AGREEMENT; AMENDMENTS. This Agreement constitutes the entire agreement between the Parties and supersedes any and all prior agreements, representations and understandings of the Parties, written or oral. Each Party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any Party, or anyone acting on behalf of any Party, which are not embodied herein, and that no other agreement, statement or promise not contained in this Agreement shall be valid or binding. The terms of this Agreement shall not be modified or amended except by subsequent written agreement of the parties.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed this day of , 20 .

Broker:

PARAMOUNT RESIDENTIAL MORTGAGE GROUP, INC.

By: By:

Name: Name:

Title: Title:


“EXHIBIT A”

BROKER AFFILIATE SERVICE PROVIDER LIST AND CERTIFICATION

“Exhibit A” of this Agreement is to identify any and all the Broker’s Affiliated Settlement Service Providers, as defined in Section I of this Agreement. Broker hereby certifies that there are:

[ ] No third-party settlement service providers affiliated with Broker, as “affiliate” relationship is defined in the Bank Holding Company Act, 12 USC 1841.

[ ] The following third-party settlement service provider is an affiliate of Broker:

Check Box for Approval

Name of Settlement Service Provider/Affiliate

Type of Settlement Service Provider

[ ] Contract Processing

[ ] Settlement/Escrow

[ ] Notary

[ ] Title Insurance Agent

[ ]

[ ]

[ ]

Broker hereby certifies that: (i) all of Broker’s Affiliated Settlement Service Providers are identified on this form; (ii) the affiliate information contained in this List and Certification is complete and correct; (iii) Broker will not use any Affiliated Settlement Service Provider in connection with any Loan submitted to PRMG that is not approved by PRMG; and (iv) Broker will designate and include all fees paid to affiliates in the Qualified Mortgage points and fees on all loans where settlement services are provided by an affiliate.

BROKER: Title:

By: Date:

(Name of Corporation)

CERTIFIED COPY OF CORPORATE RESOLUTION

I, [INSERT NAME OF OFFICER] , [INSERT TITLE] of [INSERT NAME OF CORP.] , a Corporation, do hereby certify that at a meeting of the Board of Directors of the “Corporation”, duly called and held at the office of the Corporation at [INSERT PLACE OF MEETING] , on the [INSERT DATE OF MEETING] day of , 20 , at which a quorum was present and voting, the Resolution was unanimously adopted and that said Resolution is now in full force and effect:

BE IT RESOLVED THAT any one or more of the officers listed below, or their duly elected or appointed successors in office, are hereby authorized and empowered in the name and on behalf of the Corporation to execute any and all agreements, contracts, assignments or endorsements, and to furnish any information required or deemed necessary or proper by Paramount Residential Mortgage Group, Inc. in connection with any transactions pursuant to the Corporation’s Broker Agreement with Paramount Residential Mortgage Group, Inc.

BE IT FUTHER RESOLVED THAT any one or more of the officers listed below, or their duly elected or appointed successors in office, are hereby authorized and empowered in the name and on behalf of the Corporation to make, execute, lock-in commitments, and deliver on behalf of this Corporation as its act and deed any and all loan documents to bind the Corporation in matters involving the sale of mortgage loans (with or without concurrent funding) to Paramount Residential Mortgage Group, Inc.

DATED this [INSERT DATE EXECUTED] day of , 20 .”

, President , (SIGNATURE) (AUTHORIZED SIGNATURE) (TITLE)

(NAME PRINTED) (NAME PRINTED)

, Secretary , (SIGNATURE) (AUTHORIZED SIGNATURE) (TITLE)

(NAME PRINTED) (NAME PRINTED)

AUTHORIZATION TO RELEASE INFORMATION

Disclosure of Investigative Consumer Report

Application for Broker approval necessitates that relevant inquiries, called “Investigative Consumer Reports”, may be made on the company and its principals. In addition to credit data concerning the principals, information as to their character, general reputation, professional characteristics and financial responsibility may be gathered through interviews with credit agencies, employers and business associates. Any information received by PRMG will be held in strict confidence.

The undersigned hereby authorize Paramount Residential Mortgage Group, Inc. (PRMG), in its sole discretion, to verify any information regarding the Broker and its principals from any source, including but not limited to business references reports, personal credit reports on the principals, and all other information that concerns Broker’s transactions with PRMG. The undersigned hereby consent and agree that any third party having information sought or requested by PRMG in connection with this Broker application is authorized to release such information at the request of PRMG. The undersigned hereby consent and agree that PRMG may produce or divulge any information it may have concerning the Broker and/or its principals to third parties upon request. The undersigned hereby fully release and discharge PRMG and all such third parties from any and all liability for producing or divulging information about the Broker’s company and/or its principals. Any third party having information requested by PRMG may accept and rely upon a facsimile or photocopy of this authorization as if it were an original.

Disclosure of Responsibility Clause

The undersigned hereby assume full responsibility for the activity of all of Broker’s sales personnel. The undersigned hereby agree that ethical and proper selling practices will be followed and that immediate attention will be given to all complaints. The undersigned hereby certify that the above statements are true, and understand this application shall remain the property of PRMG and, if requested, a copy may be furnished to FHLMC, FNMA, or any other institution insuring or approving Broker’s loan packages submitted to PRMG to provide financing.

(Must be signed by all principal officers, partners, or owners having a 5% or more interest in company)

/ _/

Principal Name Signature Date

Principal Title Social Security Number

Home Address City State Zip Code

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Page 1 of 2

FAX/E-MAIL AUTHORIZATION FORM WE APPRECIATE YOUR BUSINESS!

…………………………………………………………………………………………………………………..……………………

In order to do business with us, you need to receive our Product & Pricing information. Federal regulations require that we obtain your permission to either fax or e-mail information to you.

Accordingly, we ask that you sign below, authorizing us to continue to fax and/or e-mail you our product and pricing updates, advertisements, and other information facilitating our business relationship and your ability to service your customers.

Paramount Residential Mortgage Group, Inc. (PRMG) is hereby authorized to deliver information as described herein, including advertising, marketing and promotional materials, product and pricing updates, and any other information it deems necessary to conduct business with us.

…………………………………………………………………………………………………………………..……………………

I Prefer (Please check the following) Email □ FAX □

Email Address(s): 1) 2)

Fax No(s): 1) 2)

Broker:

Branch:

By: Date: /_ _/ Authorized Signature

Authorized Name & Title of Signer (printed)

…………………………………………………………………………………………………………………..……………… IMPORTANT: IN ORDER TO RECEIVE RATE SHEETS, PRODUCT AND PRICING UPDATES, AND OTHER INFORMATION FROM PRMG, YOU MUST RETURN THIS FORM WITH YOUR BROKER PACKAGE. NO EXCEPTIONS.

Page 2 of 2

POLICY ON MORTGAGE LOAN FRAUD

Paramount Residential Mortgage Group, Inc. (“PRMG”) does not tolerate fraud or misrepresentation in a mortgage loan transaction. The broker/correspondent is responsible for the content and quality of each application taken and each loan submitted to PRMG. The submission of a loan application containing information that is false or misrepresented is a federal crime. Evidence of loan fraud of any type will result in the immediate termination, for cause, of the broker/correspondent relationship with PRMG.

Types of Loan Fraud:

1. Submission of inaccurate information, including false statements on a loan application and falsification of documents purporting to

substantiate credit, employment, deposit and asset information; personal information including data related to identity; ownership / non- ownership of real property, etc.

2. Forgery of any information, including partially or predominantly accurate information, including forged signatures on any document(s) in the loan file.

3. Incorrect statements regarding current occupancy or intent to maintain minimum continuing occupancy status as stated in the loan application.

4. Lack of due diligence by broker / loan officer / interviewer / processor, including failure to obtain all information required in support of the application and failure to request further information as dictated by Lender or by Borrower’s responses to other questions.

5. Unquestioned acceptance of information or documentation, which is known, should be known, or should be suspected to be inaccurate. 6. 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. 7. Allowing an applicant or interested third-party to “assist” with the processing of the loan. 8. Nondisclosure of relevant information to anyone involved in the loan process (e.g., lender, title company, etc).

Consequences to PRMG:

The effect of loan fraud is costly to all parties involved. PRMG stands behind the quality of its loan production. Fraudulent loans cannot be sold into the secondary market, and if sold, will require repurchase. Fraudulent loans damage our reputation with our investors and mortgage insurance providers. The cost to parties who participate in loan fraud is even more costly. Following are a few of the potential consequences that may be incurred:

Consequences to Broker / Loan Officer / Salesperson / Employee:

1. Criminal Prosecution. 2. Loss of Real Estate License. 3. Loss of lender access due to exchange of information between lenders and submission of information to investors

(including FHLMC/FNMA) law enforcement agencies, and the Department of Real Estate. 4. Civil action by lender. 5. Civil action by applicant / borrower / other parties to the transaction. 6. Loss of approval status with lenders. 7. Termination of employment. 8. Revocation of professional license, if any.

Consequences to Borrower:

1. Acceleration of debt (FNMA / FHLMC Deed of Trust revised 9/90, Item #6 states: “Borrower shall also be in default if Borrower, during the

loan application process, gave materially false or inaccurate information or statements to lender (or failed to provide lender with any material information) in connection with the loan evidenced by the note including but not limited to representations concerning Borrower’s occupancy of the property as a principal residence.” NOTE: Foreclosure under this section of the Deed of Trust does not require that the Borrower be in “payment default”. As such, the Borrower will not have the benefit of reinstatement. In order to cure the default, the Borrower must pay off the loan in full prior to the sale date of the property.

2. Criminal Prosecution. 3. Civil action by lender. 4. Civil action by other parties to the transaction. 5. Adverse effect on credit history.

Acknowledgement: I have read the foregoing and understand PRMG’s position on loan fraud and understand the consequences to our company if involved in loan fraud in any way.

Principal: Signature:

Principal Title: Date: /_ /

Social security number – –

Employer identification number –

Part II Certification

Form W-9 (Rev. January 2005) Department of the Treasury Internal Revenue Service

Request for Taxpayer Identification Number and Certification

Give form to the requester. Do not send to the IRS.

Prin

t or

type

S

ee S

peci

fic In

stru

ctio

ns o

n pa

ge 2

. Name (as shown on your income tax return)

Business name, if different from above

Individual/ Check appropriate box: Sole proprietor Corporation Partnership Other �

Exempt from backup withholding

Address (number, street, and apt. or suite no.) Requester’s name and address (optional)

City, state, and ZIP code

List account number(s) here (optional)

Part I Taxpayer Identification Number (TIN)

Enter your TIN in the appropriate box. The TIN provided must match the name given on Line 1 to avoid backup withholding. For individuals, this is your social security number (SSN). However, for a resident alien, sole proprietor, or disregarded entity, see the Part I instructions on page 3. For other entities, it is your employer identification number (EIN). If you do not have a number, see How to get a TIN on page 3. or Note. If the account is in more than one name, see the chart on page 4 for guidelines on whose number to enter.

Under penalties of perjury, I certify that: 1. The number shown on this form is my correct taxpayer identification number (or I am waiting for a number to be issued to me), and 2. I am not subject to backup withholding because: (a) I am exempt from backup withholding, or (b) I have not been notified by the Internal

Revenue Service (IRS) that I am subject to backup withholding as a result of a failure to report all interest or dividends, or (c) the IRS has notified me that I am no longer subject to backup withholding, and

3. I am a U.S. person (including a U.S. resident alien). Certification instructions. You must cross out item 2 above if you have been notified by the IRS that you are currently subject to backup withholding because you have failed to report all interest and dividends on your tax return. For real estate transactions, item 2 does not apply. For mortgage interest paid, acquisition or abandonment of secured property, cancellation of debt, contributions to an individual retirement arrangement (IRA), and generally, payments other than interest and dividends, you are not required to sign the Certification, but you must provide your correct TIN. (See the instructions on page 4.)

Sign Here

Signature of U.S. person � Date �

Purpose of Form A person who is required to file an information return with the IRS, must obtain your correct taxpayer identification number (TIN) to report, for example, income paid to you, real estate transactions, mortgage interest you paid, acquisition or abandonment of secured property, cancellation of debt, or contributions you made to an IRA. U.S. person. Use Form W-9 only if you are a U.S. person (including a resident alien), to provide your correct TIN to the person requesting it (the requester) and, when applicable, to:

1. Certify that the TIN you are giving is correct (or you are waiting for a number to be issued),

2. Certify that you are not subject to backup withholding, or

3. Claim exemption from backup withholding if you are a U.S. exempt payee. Note. If a requester gives you a form other than Form W-9 to request your TIN, you must use the requester’s form if it is substantially similar to this Form W-9.

For federal tax purposes you are considered a person if you are: ● An individual who is a citizen or resident of the United States, ● A partnership, corporation, company, or association created or organized in the United States or under the laws of the United States, or

● Any estate (other than a foreign estate) or trust. See Regulations sections 301.7701-6(a) and 7(a) for additional information. Foreign person. If you are a foreign person, do not use Form W-9. Instead, use the appropriate Form W-8 (see Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities). Nonresident alien who becomes a resident alien. Generally, only a nonresident alien individual may use the terms of a tax treaty to reduce or eliminate U.S. tax on certain types of income. However, most tax treaties contain a provision known as a “saving clause.” Exceptions specified in the saving clause may permit an exemption from tax to continue for certain types of income even after the recipient has otherwise become a U.S. resident alien for tax purposes.

If you are a U.S. resident alien who is relying on an exception contained in the saving clause of a tax treaty to claim an exemption from U.S. tax on certain types of income, you must attach a statement to Form W-9 that specifies the following five items:

1. The treaty country. Generally, this must be the same treaty under which you claimed exemption from tax as a nonresident alien.

2. The treaty article addressing the income. 3. The article number (or location) in the tax treaty that

contains the saving clause and its exceptions.

Cat. No. 10231X Form W-9 (Rev. 1-2005)

Form W-9 (Rev. 1-2005)

4. The type and amount of income that qualifies for the

exemption from tax. 5. Sufficient facts to justify the exemption from tax under

the terms of the treaty article. Example. Article 20 of the U.S.-China income tax treaty allows an exemption from tax for scholarship income received by a Chinese student temporarily present in the United States. Under U.S. law, this student will become a resident alien for tax purposes if his or her stay in the United States exceeds 5 calendar years. However, paragraph 2 of the first Protocol to the U.S.-China treaty (dated April 30, 1984) allows the provisions of Article 20 to continue to apply even after the Chinese student becomes a resident alien of the United States. A Chinese student who qualifies for this exception (under paragraph 2 of the first protocol) and is relying on this exception to claim an exemption from tax on his or her scholarship or fellowship income would attach to Form W-9 a statement that includes the information described above to support that exemption.

If you are a nonresident alien or a foreign entity not subject to backup withholding, give the requester the appropriate completed Form W-8. What is backup withholding? Persons making certain payments to you must under certain conditions withhold and pay to the IRS 28% of such payments (after December 31, 2002). This is called “backup withholding.” Payments that may be subject to backup withholding include interest, dividends, broker and barter exchange transactions, rents, royalties, nonemployee pay, and certain payments from fishing boat operators. Real estate transactions are not subject to backup withholding.

You will not be subject to backup withholding on payments you receive if you give the requester your correct TIN, make the proper certifications, and report all your taxable interest and dividends on your tax return. Payments you receive will be subject to backup withholding if:

1. You do not furnish your TIN to the requester, or 2. You do not certify your TIN when required (see the Part

II instructions on page 4 for details), or 3. The IRS tells the requester that you furnished an

incorrect TIN, or 4. The IRS tells you that you are subject to backup

withholding because you did not report all your interest and dividends on your tax return (for reportable interest and dividends only), or

5. You do not certify to the requester that you are not subject to backup withholding under 4 above (for reportable interest and dividend accounts opened after 1983 only).

Certain payees and payments are exempt from backup withholding. See the instructions below and the separate Instructions for the Requester of Form W-9.

Penalties Failure to furnish TIN. If you fail to furnish your correct TIN to a requester, you are subject to a penalty of $50 for each such failure unless your failure is due to reasonable cause and not to willful neglect. Civil penalty for false information with respect to withholding. If you make a false statement with no reasonable basis that results in no backup withholding, you are subject to a $500 penalty. Criminal penalty for falsifying information. Willfully falsifying certifications or affirmations may subject you to criminal penalties including fines and/or imprisonment.

Misuse of TINs. If the requester discloses or uses TINs in violation of federal law, the requester may be subject to civil and criminal penalties.

Specific Instructions Name If you are an individual, you must generally enter the name shown on your social security card. However, if you have changed your last name, for instance, due to marriage without informing the Social Security Administration of the name change, enter your first name, the last name shown on your social security card, and your new last name.

If the account is in joint names, list first, and then circle, the name of the person or entity whose number you entered in Part I of the form. Sole proprietor. Enter your individual name as shown on your social security card on the “Name” line. You may enter your business, trade, or “doing business as (DBA)” name on the “Business name” line. Limited liability company (LLC). If you are a single-member LLC (including a foreign LLC with a domestic owner) that is disregarded as an entity separate from its owner under Treasury regulations section 301.7701-3, enter the owner’s name on the “Name” line. Enter the LLC’s name on the “Business name” line. Check the appropriate box for your filing status (sole proprietor, corporation, etc.), then check the box for “Other” and enter “LLC” in the space provided. Other entities. Enter your business name as shown on required Federal tax documents on the “Name” line. This name should match the name shown on the charter or other legal document creating the entity. You may enter any business, trade, or DBA name on the “Business name” line. Note. You are requested to check the appropriate box for your status (individual/sole proprietor, corporation, etc.). Exempt From Backup Withholding If you are exempt, enter your name as described above and check the appropriate box for your status, then check the “Exempt from backup withholding” box in the line following the business name, sign and date the form.

Generally, individuals (including sole proprietors) are not exempt from backup withholding. Corporations are exempt from backup withholding for certain payments, such as interest and dividends. Note. If you are exempt from backup withholding, you should still complete this form to avoid possible erroneous backup withholding. Exempt payees. Backup withholding is not required on any payments made to the following payees:

1. An organization exempt from tax under section 501(a), any IRA, or a custodial account under section 403(b)(7) if the account satisfies the requirements of section 401(f)(2),

2. The United States or any of its agencies or instrumentalities,

3. A state, the District of Columbia, a possession of the United States, or any of their political subdivisions or instrumentalities,

4. A foreign government or any of its political subdivisions, agencies, or instrumentalities, or

5. An international organization or any of its agencies or instrumentalities.

Other payees that may be exempt from backup withholding include:

6. A corporation,

Form W-9 (Rev. 1-2005)

7. A foreign central bank of issue, 8. A dealer in securities or commodities required to register

in the United States, the District of Columbia, or a possession of the United States,

9. A futures commission merchant registered with the Commodity Futures Trading Commission,

10. A real estate investment trust, 11. An entity registered at all times during the tax year

under the Investment Company Act of 1940, 12. A common trust fund operated by a bank under

section 584(a), 13. A financial institution, 14. A middleman known in the investment community as a

nominee or custodian, or 15. A trust exempt from tax under section 664 or

described in section 4947. The chart below shows types of payments that may be

exempt from backup withholding. The chart applies to the exempt recipients listed above, 1 through 15.

IF the payment is for . . . THEN the payment is exempt for . . .

Interest and dividend payments All exempt recipients except for 9

Broker transactions Exempt recipients 1 through 13. Also, a person registered under the Investment Advisers Act of 1940 who regularly acts as a broker

Barter exchange transactions and patronage dividends

Exempt recipients 1 through 5

Payments over $600 required to be reported and direct sales over $5,000 1

Generally, exempt recipients 1 through 7 2

1See Form 1099-MISC, Miscellaneous Income, and its instructions. 2 However, the following payments made to a corporation (including gross proceeds paid to an attorney under section 6045(f), even if the attorney is a corporation) and reportable on Form 1099-MISC are not exempt from backup withholding: medical and health care payments, attorneys’ fees; and payments for services paid by a Federal executive agency.

Part I. Taxpayer Identification Number (TIN) Enter your TIN in the appropriate box. If you are a resident alien and you do not have and are not eligible to get an SSN, your TIN is your IRS individual taxpayer identification number (ITIN). Enter it in the social security number box. If you do not have an ITIN, see How to get a TIN below.

If you are a sole proprietor and you have an EIN, you may enter either your SSN or EIN. However, the IRS prefers that you use your SSN.

If you are a single-owner LLC that is disregarded as an entity separate from its owner (see Limited liability company (LLC) on page 2), enter your SSN (or EIN, if you have one). If the LLC is a corporation, partnership, etc., enter the entity’s EIN. Note. See the chart on page 4 for further clarification of name and TIN combinations. How to get a TIN. If you do not have a TIN, apply for one immediately. To apply for an SSN, get Form SS-5, Application for a Social Security Card, from your local Social Security Administration office or get this form online at www.socialsecurity.gov/online/ss-5.pdf. You may also get this form by calling 1-800-772-1213. Use Form W-7, Application for IRS Individual Taxpayer Identification Number, to apply for an ITIN, or Form SS-4, Application for Employer Identification Number, to apply for an EIN. You can apply for an EIN online by accessing the IRS website at www.irs.gov/businesses/ and clicking on Employer ID Numbers under Related Topics. You can get Forms W-7 and SS-4 from the IRS by visiting www.irs.gov or by calling 1-800-TAX-FORM (1-800-829-3676).

If you are asked to complete Form W-9 but do not have a TIN, write “Applied For” in the space for the TIN, sign and date the form, and give it to the requester. For interest and dividend payments, and certain payments made with respect to readily tradable instruments, generally you will have 60 days to get a TIN and give it to the requester before you are subject to backup withholding on payments. The 60-day rule does not apply to other types of payments. You will be subject to backup withholding on all such payments until you provide your TIN to the requester. Note. Writing “Applied For” means that you have already applied for a TIN or that you intend to apply for one soon. Caution: A disregarded domestic entity that has a foreign owner must use the appropr iate For m W-8.

http://www.socialsecurity.gov/online/ss-5.pdf

http://www.irs.gov/businesses/

http://www.irs.gov/

Form W-9 (Rev. 1-2005)

For this type of account: Give name and SSN of: 1. Individual 2. Two or more individuals (joint

account) 3. Custodian account of a minor

(Uniform Gift to Minors Act) 4. a. The usual revocable

savings trust (grantor is also trustee)

b. So-called trust account that is not a legal or valid trust under state law

5. Sole proprietorship or single-owner LLC

The individual The actual owner of the account or, if combined funds, the first individual on the account 1

The minor 2

The grantor-trustee 1

The actual owner 1

The owner 3

For this type of account: Give name and EIN of: 6. Sole proprietorship or

single-owner LLC 7. A valid trust, estate, or

pension trust 8. Corporate or LLC electing

corporate status on Form 8832

9. Association, club, religious,

charitable, educational, or other tax-exempt organization

10. Partnership or multi-member

LLC 11. A broker or registered

nominee 12. Account with the Department

of Agriculture in the name of a public entity (such as a state or local government, school district, or prison) that receives agricultural program payments

The owner 3

Legal entity 4

The corporation

The organization

The partnership

The broker or nominee

The public entity

Part II. Certification To establish to the withholding agent that you are a U.S. person, or resident alien, sign Form W-9. You may be requested to sign by the withholding agent even if items 1, 4, and 5 below indicate otherwise.

For a joint account, only the person whose TIN is shown in Part I should sign (when required). Exempt recipients, see Exempt From Backup Withholding on page 2. Signature requirements. Complete the certification as indicated in 1 through 5 below.

1. Interest, dividend, and barter exchange accounts opened before 1984 and broker accounts considered active during 1983. You must give your correct TIN, but you do not have to sign the certification.

2. Interest, dividend, broker, and barter exchange accounts opened after 1983 and broker accounts considered inactive during 1983. You must sign the certification or backup withholding will apply. If you are subject to backup withholding and you are merely providing your correct TIN to the requester, you must cross out item 2 in the certification before signing the form.

3. Real estate transactions. You must sign the certification. You may cross out item 2 of the certification.

4. Other payments. You must give your correct TIN, but you do not have to sign the certification unless you have been notified that you have previously given an incorrect TIN. “Other payments” include payments made in the course of the requester’s trade or business for rents, royalties, goods (other than bills for merchandise), medical and health care services (including payments to corporations), payments to a nonemployee for services, payments to certain fishing boat crew members and fishermen, and gross proceeds paid to attorneys (including payments to corporations).

5. Mortgage interest paid by you, acquisition or abandonment of secured property, cancellation of debt, qualified tuition program payments (under section 529), IRA, Coverdell ESA, Archer MSA or HSA contributions or distributions, and pension distributions. You must give your correct TIN, but you do not have to sign the certification.

What Name and Number To Give the Requester

1 List first and circle the name of the person whose number you furnish. If only one person on a joint account has an SSN, that person’s number must be furnished.

2 Circle the minor’s name and furnish the minor’s SSN.

3 You must show your individual name and you may also enter your business or “DBA” name on the second name line. You may use either your SSN or EIN (if you have one). If you are a sole proprietor, IRS encourages you to use your SSN.

Privacy Act Notice

4 List first and circle the name of the legal trust, estate, or pension trust. (Do not furnish the TIN of the personal representative or trustee unless the legal entity itself is not designated in the account title.)

Note. If no name is circled when more than one name is listed, the number will be considered to be that of the first name listed.

Section 6109 of the Internal Revenue Code requires you to provide your correct TIN to persons who must file information returns with the IRS to report interest, dividends, and certain other income paid to you, mortgage interest you paid, the acquisition or abandonment of secured property, cancellation of debt, or contributions you made to an IRA, or Archer MSA or HSA. The IRS uses the numbers for identification purposes and to help verify the accuracy of your tax return. The IRS may also provide this information to the Department of Justice for civil and criminal litigation, and to cities, states, and the District of Columbia to carry out their tax laws. We may also disclose this information to other countries under a tax treaty, to federal and state agencies to enforce federal nontax criminal laws, or to federal law enforcement and intelligence agencies to combat terrorism.

You must provide your TIN whether or not you are required to file a tax return. Payers must generally withhold 28% of taxable interest, dividend, and certain other payments to a payee who does not give a TIN to a payer. Certain penalties may also apply.

PRMG Wholesale Division

LENDER-PAID COMPENSATION PLAN SELECTION FORM

Broker:

Lender-paid Compensation Plan Selection Effective Date: 1, 20

Please select from the following Lender-paid Compensation Plans. All PRMG Lender-paid compensation is based on a percentage of the loan amount. At your option you may also choose a minimum and a maximum compensation which will also be calculated into a percentage of Lender Paid Compensation through our pricing engine. When you elect to be paid by PRMG on a loan, you understand that you cannot also be paid by any other party, including your borrower.

If you wish to change your Lender-paid Compensation Plan with us, please contact your Account Executive. Plan changes are only allowed quarterly or every three (3) months and must be submitted by the 25th day of the month for an effective date of the first business day of the following calendar month for new submissions. When you change your Lender-paid Compensation Plan, the new level of compensation will apply to new applications submitted to PRMG on or after the effective date which is the 1st (first) of the month.

Please select your Lender-paid Compensation Plan:

Lender-paid Percentage of Compensation Plan Loan Amount*

[ ] Plan C1 1.00% [ ] Plan C2 1.25% [ ] Plan C3 1.50% [ ] Plan C4 1.75% [ ] Plan C5 2.00% [ ] Plan C6 2.25% [ ] Plan C7 2.50% [ ] Plan C8 2.75%

Please select your Minimum/Maximum:

[ ] None None [ ] 1,500.00 8,000.00 [ ] 2,000.00 10,000.00 [ ] 2,500.00 12,000.00 [ ] 3,000.00 15,000.00 [ ] 3,000.00 20,000.00

*Loan quality factors are inherent in all Comp Plans. PRMG reserves the right to modify its Compensation Plans at any time, as well as lower your selected Compensation Plan if loan quality standards are not met, including excessive errors, violations of law, loan delinquencies, or poor pull-through levels.

Please identify the Broker/Owner/individual authorized to select/change Lender-paid Compensation Plans for your Company.

Name/Title Name/Title

Broker Name Broker Signature Date

Rev. 02/20/2014

ORGINATOR COMPENSATION ADDENDUM TO PRMG BROKER AGREEMENT

This addendum is to that certain Broker Agreement (the “Agreement”), which was entered into concurrently with this Addendum or prior to this Addendum by and between PRMG and Broker. The definitions used in this Addendum shall have the same meanings as the definitions contained in the Agreement. To the extent that this Addendum may conflict with any provision of Agreement, the terms and conditions of this Addendum shall control and supersede any conflicting provision in the Agreement.

By initialing each item below and executing this Addendum, Broker hereby certifies as follows:

All loans submitted to PRMG comply with all applicable originator compensation and anti-steering provisions of the Truth in Lending Act and Federal Reserve Board Regulation Z at 12 C.F.R. 226.36. PRMG reserves the right to reject loan submissions that do not comply with the Regulation Z originator compensation and anti-steering rules.

On loans submitted with Lender-paid compensation, Broker is not additionally compensated by any other party, including the borrower.

Broker compensates all of Broker’s loan originators in compliance with the Regulation Z originator compensation rules, and Broker’s loan originators are not compensated based on any of the loan terms except for the loan amount.

If Broker adjusts compensation to Broker’s loan originators for additional hours required to originate government (e.g., FHA/VA/USDA) loans, Broker has analyzed and will continue to analyze on an ongoing basis the additional hours spent on government loan origination and has determined that any such adjustments are made on the hours worked on government loan originations and are not based on loan pricing, profitability or other impermissible loan terms. Broker retains records and documentation of Broker’s analysis of government loan originations and will provide copies of same to PRMG promptly within ten (10) business days upon request.

By initialing each item below and executing this Addendum, Broker further agrees to:

Comply with the anti-steering Safe Harbor on all loans funded by PRMG on which Broker is compensated by PRMG (Lender- paid compensation) by offering those borrowers three loan options from lenders with whom Broker regularly does business in accordance with Section 226,36(e) of Regulation Z.,

Retain records evidencing Broker’s compliance with the Regulation Z originator compensation and anti-steering rules, including but not limited to, originator compensation plans, payroll and commission records, borrower compensation, lender compensation, lender compensation plans, lender rate sheets and borrower loan option disclosures, for at least two years, in compliance with 12 C.F.R. 226.25(a).

Provide PRMG with any records as PRMG may request to validate Broker’s compliance with the originator compensation and anti-steering requirements of Regulation Z, even if such records are requested subsequent to termination of Broker’s relationship with PRMG pursuant to any loan(s) that may have been funded by PRMG. Any such records requested by PRMG shall be furnished promptly, within ten (10) business days of such request.

Broker understands and agrees to indemnify and hold PRMG harmless from Broker’s failure to comply or to provide satisfactory evidence of compliance with the originator compensation and/or anti-steering provisions of Regulation Z. In the event PRMG is required to repurchase a loan funded for Broker for non-compliance or failure to provide satisfactory evidence of compliance with these regulations, Broker understands and agrees that Broker will be required to repurchase such loan from PRMG within five (5) business days upon request by PRMG. In the event litigation arises on a loan originated by Broker and funded by PRMG with respect to these originator compensation and anti-steering regulations, Broker understands and agrees that legal costs and expenses will be borne by Broker.

Broker Name Date

Signature of Broker/Owner (or individual authorized to sign pursuant to Corporate Resolution on file with PRMG)

Rev. 02/20/2014


FHA Addendum to PRMG Broker Agreement

This addendum is to that certain Broker Agreement (the “Agreement”), which was entered into concurrently with or prior to this Addendum by and between PRMG and Broker. The definitions used in this Addendum shall have the same meanings as the definitions of the Agreement. To the extent that this Addendum may conflict with any provision of Agreement, the terms and conditions of this Addendum shall control and supersede any conflicting provision in the Agreement.

Broker desires to be approved to originate FHA loans on PRMG’s behalf under PRMG’s FHA Sponsorship program. PRMG desires to be a willing sponsor of Broker to originate FHA loans, provided Broker has originated such loans in compliance with HUD (FHA) guidelines and the Agreement.

In addition to the various representations, warranties, and covenants contained in the Agreement, Broker represents, warrants, and covenants as to each FHA mortgage loan application submitted to PRMG:

1. Broker will not issue to Applicants a lock-in agreement unless Broker has received written

confirmation of approval of the interest rate, points, and terms from PRMG.

2. Broker agrees to comply with HUD Mortgagee Letters 94-43 and 94-16, as well as any other HUD Mortgagee Letters as they relate to fees, overages, and tiered pricing. Broker also agrees to comply with regional HUD (FHA) office guidelines as to maximum allowable fees, such as origination fees, broker fees, inspection fees, attorney fees, overnight delivery fees, etc. In the event that it is discovered by a HUD audit of PRMG that excess fees or points that do not comply with HUD’s guidelines have been charged, then Broker will be responsible for refunding the excess to the borrower. Underwriting approval by PRMG does not negate Broker’s responsibility hereunder.

3. Broker acknowledges that Broker meets and observes all PRMG eligibility requirements for

originating FHA loans under the Sponsorship status, including, but not limited to:

a. Broker maintains commercial office space for the purpose of interviewing and meeting with FHA loan Applicants/borrowers, in addition to any home office from which Broker may conduct conventional loan business;

b. Broker employs loan originators and processors who possess at least one year

of recent FHA loan experience, current FHA knowledge, and who have access to HUD’s FHA Handbooks and Mortgagee Letters for reference; and

c. All loan originators submitting FHA loans to PRMG for Broker are employed by

and compensated as employees of Broker (W2) and are not independent contractors (1099).

Should Broker’s eligibility to originate or process FHA loans in compliance with HUD’s FHA requirements be impaired subsequent to Broker’s approval herewith, Broker shall promptly notify PRMG.


Broker understands that approval for the submission of FHA applications to PRMG may be terminated by PRMG at PRMG’s sole discretion without notice to Broker. In any event, should FHA loans submitted to PRMG by Broker experience a delinquency rate in excess of 100% of the HUD HOC average at any time, Broker’s FHA Sponsorship approval with PRMG may be terminated.

Broker acknowledges that Broker is sponsored by PRMG and that PRMG shall be responsible for obtaining the MIC (Mortgage Insurance Certificate) on all loans closed hereunder. Broker further agrees that if HUD denies the insurance for any reason except for acts and omissions by PRMG, Broker will take all measures to correct the deficiencies in documentation, etc., to insure the loan.

BROKER: Title:

By: Date:


VA Addendum to PRMG Broker Agreement

This addendum is to that certain Broker Agreement (the “Agreement”), which was entered into concurrently with this Addendum or prior to this Addendum by and between PRMG and Broker. The definitions used in this Addendum shall have the same meanings as the definitions of the Agreement. To the extent that this Addendum may conflict with any provision of Agreement, the terms and conditions of this Addendum shall control and supersede any conflicting provision in the Agreement.

Broker desires to be approved to originate VA loans, and PRMG is willing to sponsor and purchase VA loans originated from Broker originated in conformance and compliance with VA guidelines and the Agreement.

In addition to the various representations, warranties, and covenants contained in the Agreement, Broker represents, warrants, and covenants as to each VA mortgage loan application submitted to PRMG:

1. Broker will not issue to Applicants a lock-in agreement unless Broker has received written confirmation of approval of the interest rate, points, and terms from PRMG.

2. Broker will not charge any fees above the maximum fees allowed by its regional VA. In event that fees

are charged in excess of those allowed by VA, Broker will refund those fees to borrower so that the loan can be guaranteed.

3. Broker acknowledges that Broker must pay the annual renewal fee (currently $100.00) and will do so

in a timely manner each year.

4. Broker acknowledges that if a loan has been submitted to VA and declined, Broker will not bring or submit that loan to PRMG. Loans previously declined by the VA can be subsequently approved only by the VA and not by any lender.

5. Broker acknowledges that PRMG will be responsible for obtaining the loan guarantee (LGC) from VA

on all loans closed hereunder. Broker further agrees that if VA denies the insurance (LGC) for any reason except for acts and omissions by PRMG, Broker will take all measures to correct the deficiencies in documentation, etc., so that the loan can be guaranteed.

BROKER: Title:

By: Date:

Veterans Administration requires the following information completed for processing:

Veterans Administration Information Form

Veterans Administration requires the following information completed for processing:

*Company Name:

DBA:

*Address:

*City, State & Zip:

Federal Tax ID (TIN) or SSN:

*Phone: *Fax:

*Email address:

*Main Contact:

(*) Denotes required field. Please ensure all entries are legible.

PRMG Broker Code (to be filled in by PRMG):

1265 Corona Pointe Court, Suite 301, Corona, CA 92879 Tel: (951) 278-0000 Fax: (951) 278-5630

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