presentation code of business conduct and …compliance.peopleshomeequity.com/uploads/1/3/9/1/...our...

CONTENTS

� A Message from Aaron Wimsatt and Jack Williamson…….� PHE’s Mission and Values………………………………….....� What is PHE’s Code of Business Conduct?.........................� Conflict of Interest ………………………………………….....� Gifts and Entertainment……………………………………….

� Political Activity and Contributions…………………….� Protecting Information & Assets……………………………..� Our Responsibilities as a Mortgage Banker / Lender…….� Protecting You at Work…………………………………………� Compliance with the Code…………………………………...� A Message from your C&E Office……………………………

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A Message From Aaron Wimsatt and Jack Williamson

Dear Colleagues,

Since our beginning in 2001, PHE has always taken pride in conducting our business ethically and in compliance with laws and regulations. Our clients trust us to be ethical, behave appropriately, and use sound judgment in everything we do.

PHE employees continue to earn that trust every day whenever we work with clients, providers, partners, vendors, and with our PHE colleagues.

In 2014 we will celebrate our 13th year in the mortgage industry. We are proud of everything that PHE has accomplished since its beginning. And more importantly, we are grateful that we have earned the trust of many homeowners throughout our branch offices and headquarters locations.

Please familiarize yourself with the code. Following its guidelines will equip us to act appropriately, use proper judgment, and maintain the trust of our homeowners, vendors, and mortgage partners.

PHE’s Mission:

IN THE BEGINNING...

Peoples Home Equity was formed in 2001, dedicated to helping individuals with homeownership needs in our communities. Our efforts to provide the best Service and Trust to our clients, combined with extensive mortgage experience to accommodate your needs, has given us our company motto: Trusted... Experienced… Secure.

TODAY...

We are a fully functional Conventional and Government HUD APPROVED LENDER (1953900009) servicing retail clients and mortgage affiliates across the country. In 2009, Peoples Home Equity evolved to a Full Eagle FHA Banker. We offer on-site underwriting (for much faster turnaround times), and more programs than ever. TOMORROW...To continue our vision, we wish to be the overwhelming choice in mortgage programs and services by delivering unmatched value through innovation, exceptional quality, unparalleled service, and well-earned trust.

PHE’s Values:

CUSTOMER FOCUS...

At PHE, our reason for existence is service to our homeowners and their communities. We build enduring relationships with our customers –homeowners and mortgage industry partners – by understanding and anticipating their needs, and by taking the initiative to better serve them.

QUALITY THROUGH CONTINOUS

IMPROVEMENT...

Quality is defined by customer requirements in the mortgage services we provide. We meet or exceed these requirements by continually looking for ways to improve the products we deliver, services we provide, and processes we undertake. Those who practice this value realize that remaining competitive comes not from “big leaps,” but from small, incremental improvements over time.

PHE’s Values continued:

TEAMWORK...

Teamwork means working together to accomplish our organizational objectives and to meet the needs of our customers. Those who practice this value realize that our future depends less on the initiative or expertise of a few individuals and more on highly collaborative partnerships with other PHE departments, members, employers, and providers. Teamwork also means recognizing that our best decisions come from sharing ideas, being good listeners, and taking the time to understand other points of view.

DEVELOPMENT OF

EMPLOYEES...At PHE, development of people means increasing an individuals value to our organization by providing training and development opportunities while encouraging the individual to take ownership for their development and career progression.

PHE’s Values continued:

INTEGRITY...

Integrity means we are honest and ethical in all our business dealings.Regulations require auditing and monitoring systems to detect criminal conduct. We offer anonymity and confidential reporting systems with a compliance hotline for ethics help and guidance.Unwavering dedication to doing what’s right makes us successful. Ethics represents the high road –not only complying with the law, but doing so because it’s the right thing to do.

INNOVATION...

PHE seeks to build an environment in which innovation – the development and application of new ideas – is encouraged and supported. It means being open to new products, services, business opportunities, and ways of doing business. We want our mortgage partners and providers to know we will deliver creative solutions for their needs.

What is PHE’s Code of Business Conduct?

It’s an Expression of

Commitment...

To reiterate, Integrity means we are honest and ethical in all our business dealings. Regulations require auditing and monitoring systems to detect criminal conduct. We offer anonymity and confidential reporting systems with a compliance hotline for ethics help and guidance.

Unwavering dedication to doing what’s right makes us successful. Ethics represents the high road –not only complying with the law, but doing so because it’s the right thing to do.

It’s a Guide to Doing the Right

Thing...Since our beginnings in 2001, our employees have worked hard to provide PHE customers and mortgage partners with access to quality mortgage services at a reasonable price. PHE has earned the trust of these clients by working in their best interests and following the letter and spirit of laws and regulations that apply to our business.

We continue to re-earn our clients trust each day by ‘doing the right thing,’ making the right decisions, and taking the right actions.

What is PHE’s Code of Business Conduct?... continued

It’s Our Responsibility...

We all share the responsibility to:� Comply with laws and regulations

that apply to our business.� Report possible compliance

issues promptly, completely, and fairly without fear of retaliation.

� Work with integrity and honesty in the best interest of our customers, community, and mortgage partners.

It’s important to speak up, ask questions, or raise issues in your daily activities if you think there are ethical implications. PHE’s reputation as an ethical company depends on you.

PHE’s Commitment to

Non-Retaliation...PHE encourages open communication of compliance and ethics issues and inquiries. PHE prohibits intimidation against any individual for reporting in good faith an actual or suspected non-compliance issue or participating in an investigation of an actual or suspected non-compliance issue. Any person engaged in retaliatory acts or any person who knows of an occurrence of retaliation and either fails to stop such an act or report it will be subject to discipline up to and including termination of employment.

What is PHE’s Code of Business Conduct?... continued

Contact Us…

Our Code of Business Conduct is a starting point and an invitation. The sections of the Code that follow provide guidance in recognizing and addressing possible compliance issues. But the guidance and support does not end with this Code.

The Compliance & Ethics Office is here for you when you have a question about compliance, when you see a potential compliance incident, or when you have a compliance concern.

How To Reach Us...

� Email us at: [email protected]

� Call us at: 1-615-872-0220 x603 for your questions.

If you wish to contact us anonymously, please call the Compliance & Ethics hotline at:1-615-872-0220 x191 or [email protected] to make an anonymous report.

The hotline is available 24hours a

day, seven days a week.

Conflict of Interest

A conflict of interest occurs when our personal interest affect or influence our ability to act in the best interest of PHE.

To maintain our high ethical standards, we are expected to avoid conflicts of interest. PHE employees must ensure they do not engage in activities that could influence or appear to influence their judgment or objectivity. Because the perception of a conflict of interest is as important as an actual one, we are expected to avoid doing anything that even appears improper.

An apparent conflict of interest arises where an employee’s personal interest could appear to influence their actions even though the outcome of those actions can be justified.

Usually, a conflict of interest can be avoided if it is disclosed in advance. If you aren’t sure if there’s a conflict of interest, talk to your supervisor or check with the Compliance & Ethics Office.

Conflict of Interest Examples:

Here are some examples of

conflicts of interest that must be

disclosed in advance:� Working for a competing lender.

It doesn’t matter what kind of work you’re doing for them – any job you have is a conflict of interest.

� Working for a Realtor, Title Agency, Credit provider, or 3rd

party Vendor or servicer.� Accepting gifts, payments or

services from people who do business with PHE (or would like to do business with PHE) if it influences your ability to act in the best interest of PHE.

� Accepting gifts, payments or services that exceed our gifts and entertainment limits from people who do business (or would like to do business) with PHE.

� Doing business on behalf of PHE with a company that is owned or controlled by a PHE employee, an employee’s family member, or someone you have a personal relationship with or may be perceived to have a personal relationship with.

� Owning or having a substantial interest in a company that competes with PHE.

� Operations staff acting as a consultant to a PHE customer.


A Second Job:

Our primary employment obligation is to PHE. We are allowed to have a second job, but the job must not require us to use confidential PHE information or affect our work at PHE.

Here are some commonly asked

Q&A’s about having a 2nd job:

� Q: I work at PHE Monday-Friday, 8am-5pm. On the weekends I have another job at a department store. Is this a conflict of interest?

� A: No. Your weekend job does not interfere with our work at PHE.

� Q: I work at PHE Monday-Friday, 8am-5pm. I also have a weekend job at another mortgage banker, is this a conflict of interest?

� A: Yes. Although your weekend hours do not interfere with your PHE hours, your job at a competing lender is a conflict of interest with PHE.

� Q: My family’s small business gets appraisal orders for homes from PHE. Can I also work for my family’s company?

� A: This may be a conflict of interest. You will need to discuss the specifics of your situation and job functions with the Compliance & Ethics Office.


Personal Financial Interests:

PHE employees should avoid any outside financial interests that may influence their decisions or actions on behalf of the company.

Examples include personal or family investment or involvement in organizations that do business or complete with PHE. A small portfolio holding of stock or other securities in publicly traded companies is permitted.

However, you should not hold stock in known vendors of PHE where your objectivity in dealing with the vendor may be questioned. Please consult the Compliance & Ethics Office at 615-872-0220 x603 or [email protected] if you have any questions.

Gifts and Entertainment

Giving and accepting gifts are a familiar part of doing business. We need to be careful, however, that exchanging gifts does not influence our business-making decisions.

Perishable gifts, such as flowers and food baskets, with a value of more than $100 may be accepted only if they can be shared by the department and appropriate management approval is obtained.

PHE often purchases goods or services from a supplier that also obtained goods or services from PHE. For example, we may purchase services from a printer who obtained mortgage loan services on their home from PHE. While this may be a normal and acceptable business practice, we must avoid any form of pressure for reciprocity.

Gifts and Entertainment continued:

Accepting Gifts and

Entertainment…

We may accept gifts which include entertainment such as meals, from individuals or entities outside of PHE only if all of the following conditions are met:• Its not in the form of cash.• Nothing of value is ever solicited

from anyone PHE does business with. This includes vendors, suppliers, providers, and subscribers.

• The value does not exceed $100 per occasion.

• The total value received does not exceed $250 per year.

Also:

� Accepting a gift must not affect our ability to act in PHE’s best interest.

� The gift should not be given with the intent to obtain or reward favorable treatment from PHE.

� The gift is reasonable and appropriate to the occasion and given infrequently, regardless of the amount.

� We must tell our supervisor about the gift and then note it on our annual conflict of interest disclosure form as appropriate.


On occasion, a vendor or supplier will offer benefits companywide, such as discounts, rebates, or credits. All such arrangements must be approved in advance by the C&E Office to ensure compliance with anti-kickback restrictions.

• Q: I was invited on an all-expense paid trip to San Francisco for a training class to learn more about a vendor’s product that PHE is interested in providing. Can I accept this offer?

• A: Each situation is different, so employees should always notify the C&E Office. In this case, it would not be appropriate to accept the offer. Accepting a free trip from a vendor may make it difficult to objectively review their product and may give the appearance that a decision to accept their product was influenced by the free trip. You may attend only if management determines that the training is in PHE’s best interest, and covers all travel expenses.


Offering Gifts and

Entertainment…

You may offer gifts and entertainment to individuals or entities outside of PHE only if all of the following conditions are met:• Its not in the form of cash.• Is not perceived to be a “thing of

value”

Also:� The gift is reasonable and

appropriate to the occasion.� It does not create the appearance

of impropriety or cause embarrassment to PHE.

� It is not extended with the intent to obtain or reward favorable treatment.

� It does not violate any policy of the recipient's company or organization.

� Gifts and entertainment extended to government agencies, state employees or legislators are not allowed; such as FNMA/FHLMC, GNMA, HUD, CFPB, IRS, and the Department of Labor, to name a few.


Offering Gifts and Entertainment…

Customer decisions should always be made on the merits of PHE’s products and services, our record of superior performance, and the strength of our proposals -- not as a result of any real or perceived unfair or illegal advantage. While offering business courtesies and entertainment is a common and accepted business practice, it should be conducted within the guidelines of this Code.

Special laws govern kickbacks from vendors and suppliers under RESPA. A kickback is any money, fee, commission, credit, gift or gratuity, thing of value, or compensation of any kind that is provided directly or indirectly for the purpose of improperly obtaining or rewarding favorable treatment.

We have a no-gift policy when dealing with any federal government

employee.


Political Activity and Contributions…

We comply with all laws and regulations regarding the use of company resources for political activities. Federal campaign finance laws generally prohibit payments from corporate funds to any candidate campaigning for federal office. State laws may vary, please contact the C&E Office for limits on corporate contributions to a candidates campaigning for state office.

We are encouraged to vote, become involved in civic affairs, and participate in political activities. We are free to make personal contributions consistent with applicable federal, state or local laws to support candidates or political organizations. Our participation should be done on our own time, however, and should not use PHE’s funds, supplies, facilities, or other resources.

Protecting Information and Assets:

Our Clients Information…

Confidential Client Information (CCI) is any information that can be used to identify a customer, or their non-public, financial information. Examples of CCI include name, address, date of birth, social security number, PHE loan number, income or employment information, loan terms, etc.

PHE clients and mortgage partners entrust us daily with their confidential information. We must diligently protect CCI to continue to earn that trust. Laws such as the Graham-Leach Bliley Act and the Privacy Act give the federal and state government authority to impose fines and criminal penalties on PHE and their employees when CCI is mishandled.

Identity Theft…Because we are concerned about our clients financial and account security and well-being, PHE has placed policies, procedures, and network restrictions to detect, prevent, and mitigate identity theft.


We are all responsible for:• Conducting our business in accordance with all federal and state laws for

privacy and security.• Disclosing CCI only on a need-to-know basis, only in the minimum amount

necessary, only if your role permits you to do so, and only as authorized by PHE.

• Asking the C&E Office if there are questions about disclosing CCI.

Our Business Information…

Confidential business information is:• Generally not disclosed both inside and outside of PHE without

authorization from management.• Requires the highest level of protection.• Could cause harm to an employee, mortgage partner, provider, vendor, or

PHE if disclosed or altered.

Protecting confidential business information is the responsibility of every PHE employee, partner, and board member. This responsibility continues even after our employment, contract, or affiliation with PHE ends.


Our Business Information

continued…

Before disclosing confidential business information to individuals or organizations outside of PHE:• Make sure that the disclosure will

not violate any federal or state laws. Check with the C&E Office if you aren’t sure.

• Make sure the document is labeled “Confidential.”

• Get approval from a PHE director or officer.

• Make sure the disclosure is covered by a non-disclosure and confidentiality agreement that has been approved by Legal Services.

• Follow PHE’s external data request procedures when applicable.

When sharing confidential business information in a letter, document, email or conversation, we must be careful to:• Encrypt and securitize external

email or electronic delivery with 128-bit encryption (i.e., email, internet).

• Label reports, spreadsheets, or other documents with the appropriate restrictive legend. Putting legends such as “Confidential” gives third parties notice that PHE considers the information to be protected.


Our Business Information

continued…

• Be aware of our surroundings to reduce the chance of accidental disclosure of confidential business information through a telephone call or casual conversation, whether at a PHE office or in a public setting (like someone appearing over your shoulder in a public internet café).

• When sending information to an external address, make sure that the information being sent is appropriate.

• Type “PHESECURE” in the subject line of all emails

containing confidential information sent to an external

address.


Using PHE’s Assets…

Company assets include intellectual property, business strategies and plans, trade secrets, financial or proprietary information, and software.

With the continuing changes in regulations with the financial and mortgage industries, being prudent with PHE’s assets for business purposes remains critical. We should follow appropriate procedures when buying supplies, equipment, or other assets to obtain quality items at the best possible price. We are also responsible for ensuring that company assets are used only for

valid company purposes. Follow these guiding rules:• Never use PHE assets in

connection with your second job or side business.

• Limit personal use of company telephones, computers, fax machines, or emails. Never use them for personal gain or illegal purposes, or in connection with your second job or side business.

• Transfer company assets to other persons or entities only to support a business need and in accordance with company policy.


Using PHE’s Assets continued…

• Assets no longer needed for PHE business may be disposed of or, in certain cases, sold to employees at market value. Such disposals or sales must be supported by properly approved and signed documentation.

Accurate Recordkeeping…PHE provides a wide variety of performance reports, financial statements, proposals, budgets, and other reports to government agencies (i.e., HMDA reporting to the FFEIC), auditors, accreditation organizations, and other entities.

These reports often include management certifications or attestations.Employees who prepare, sign, or support these reports and their underlying records must ensure that they are prepared carefully, accurately, and ethically. Late or inaccurate reports submitted can result in compliance actions that range from corrective action plans and increased agency scrutiny to fines and penalties.


Accurate Recordkeeping

continued…

PHE Recordkeeping Policies:• Labor, material, and other costs

must always be charged to the proper account. Labor timesheets and other cost records must be complete and accurate.

• PHE books and records must accurately reflect the true nature of transactions that they represent. Employees must take no action to cause PHE books and records to be misleading or inaccurate.

Contact the C&E Office at 615-872-0220 x603 or call the Hotline at 1-615-872-0220 x191 to anonymously report any concerns related to financial reporting irregularities or questionable accounting practices.


Accurate Recordkeeping

continued…

Record Retention:PHE applies effective, cost-efficient records management to maintain complete and accurate records. Records are retained to meet business needs as well as to be in compliance with federal and state laws and regulations. They should be properly destroyed after the appropriate record-retention period.

Records connected to litigation or audits may need to be kept beyond normal retention periods.

Follow special requirements issued by Legal Services to ensure that relevant records are not destroyed until such cases or investigations are closed.

Contact the C&E Office for valuable information about record retention, including definitions of “record” and “non-record” and document retention notices.

Our Responsibilities as a Mortgage Banker / Lender:

Fraud and Abuse Prevention…

To combat mortgage fraud and abuse, we investigate complaints, conduct proactive case development, raise fraud and abuse awareness, and conduct provider and vendor oversight (i.e., mock audits). PHE’s C&E Office leads our efforts to detect, investigate, and prevent fraud and abuse.

Internal Fraud and Abuse Prevention…

We are all responsible for the detection and prevention of internal fraud. Internal fraud is the intentional misrepresentation or concealment of information within PHE for financial or other gain. Examples of internal fraud may include:

• A dishonest act.• Forgery or alteration of any

official PHE document.• Misappropriation or misuse of

funds, supplies, or other PHE assets.

• Impropriety in the handling of reporting of money.

• Unauthorized alteration or manipulation of computer files.

• Unauthorized destruction, removal, or inappropriate use of records.

• Any similar or related irregularity.


Internal Fraud and Abuse Prevention continued…

PHE expects employees to recognize risks and exposures in their area of responsibility, be alert for any indication of internal fraud, and contact the C&E Office as soon as internal fraud is detected or suspected.

Any employee who is aware of an internal fraud and does not immediately report it will be subject to disciplinary actions. Employees who report suspected fraudulent activity in good faith will be protected from reprisal and retaliation. The identity of the individual conveying information will remain confidential to the extent possible within the legitimate needs of the law and the investigation.


Proper Marketing Practices…

Superior products offered at a reasonable price with superior customer service are PHE’s primary marketing tools. It is against PHE’s Code of Business Conduct to use deceptive, misleading, or unethical methods to obtain business from customers.

Specific laws and regulations govern Unfair, Deceptive and Abusive Practices (UDAAP) under Section 5 of the FTC Act. PHE performs due diligence to mitigate UDAAP occurrences, including misleading or unfair marketing practices. Questions in this area should be referred to the C&E Office.

Protecting You at Work:

Equal Employment Opportunity…

To ensure a safe, supportive, respectful workplace, we have policies on employee relations issues, three of which are summarized as: Individuals with Disabilities, Sexual Harassment, and a Drug-Free Workplace. You may find details on these and other issues in the PHE Employee Handbook.

Report any suspected violations or questions about these issues to your supervisor. If you prefer, talk to your department head or the Equal Employment Opportunity (EEO) compliance officer in Human Resources.

Individuals with Disabilities…

PHE complies with the Americans with Disabilities Act and related state laws. We are committed to recruiting, hiring, developing, and retaining qualified individuals with disabilities, and will review requests for reasonable accommodation from qualified employees or job applicants to perform the essential functions of the job.

Sexual Harassment…

We are expected to treat each other with professional respect and courtesy. Any form of sexual harassment in the workplace is prohibited, whether by a supervisor manager, co-worker, or any other employee or consultant. Those who engage in sexual harassment will be subject to disciplinary action, which can include termination.

Protecting You at Work continued:

Drug-Free Workplace…

Any activity related to the unlawful possession, manufacture, distribution, dispensation, or use of a controlled substance in the workplace is prohibited. This applies to activities that occur anywhere on company property or while on work time outside the workplace. Any employee who engages in prohibited activities will be immediately suspended without pay pending an investigation and final decision on disciplinary action. Depending on the circumstances, PHE may terminate an employee for the first offense.

Protecting You at Work continued:

Compliance with the Code:

Failure to comply with PHE’s Code of Business Conduct will result in disciplinary action. Disciplinary action may include suspension, termination, and reimbursement to the company for any losses or damages resulting from the Code violation. Anyone charged with a violation of the Code will have the opportunity to explain their actions before any disciplinary measures are taken.

Disciplinary action will be taken when:� An employee authorizes or participates in actions that violate the Code.� An employee deliberately provides misleading information about violations

of the Code.� A supervisor’s or manager’s actions reflect poor judgment, inadequate

supervision, or lack of diligence regarding a violation of the Code.� Anyone who retaliates, directly or indirectly, or encourages others to

retaliate against an employee who reports a violation of the Code or participates in an investigation of a violation of the Code.

The Code will be enforced at all levels, fairly, and without prejudice.

A Message From Your C & E Office

Dear Fellow PHE Employees,

Thank you for reading PHE’s Code of Business Conduct. The Compliance & Ethics Office hope that this Code reinforces the importance of conducting our business with integrity and honesty.

The Code ends here, but the journey continues…

We all have a personal responsibility to comply with this Code and the laws, regulations, and company policies that govern our business. It is our responsibility and duty to ask questions or raise concerns if we encounter possible violations of this Code, misconduct, or unethical behavior. Talk to your manager, the Compliance & Ethics Office, or Human Resources when:

• You need advice.• You don’t know the proper

course of action.• You believe someone has

violated the law or our policies.

• You believe someone has acted unethically.

• You may have been involved in misconduct.

Message continued:

The Compliance & Ethics Office is here for you when you have a question about compliance, when you see a potential compliance incident, or when you have a compliance concern.

� Email us at: [email protected]� Call us at: 1-615-872-0220 x603 for your questions.

If you wish to contact us anonymously, please call the C&E Hotline at:� Email at: [email protected]� Call at: 1-615-872-0220 x191 to leave anonymous voicemail.The hotline is available 24hours a day, seven days a week.

Sincerely,

Your C&E OfficeBobbie Adams, Brian Dutton, Cosmo Zaharof, Donna Thompson, Dottie Stump, Rebecca Gonzalez, and Tracey Branson.

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