CORRESPONDENT LENDING APPLICATION PACKET CHECKLIST. Required CMG Forms: *Note: Signature stamps, digital signatures and typed initials not accepted

Transcription

1 Minimum Requirements: CORRESPONDENT LENDING APPLICATION PACKET CHECKLIST Length of time the company has been in business - 2 years Length of time with banking experience 1 year Minimum net worth - $2 Million Required CMG Forms: *Note: Signature stamps, digital signatures and typed initials not accepted Correspondent Lending Application Waiver & Authorization(s) *Financial Institutions Require Waiver only Loan Purchase Agreement *2 signed, unaltered copies to be mailed directly to corporate office Loan Fraud-Zero Tolerance Website Agreement Non-Disclosure Agreement Trademarks & Copyrighted Materials Policy Wire Authorization Form *Financial Institutions Require Wire Instructions only Warehouse Line Information & Contact Information *Wire instructions required for each IRS Form W-9 New Customer Information Form Required Documentation: Audited Financial Statements for previous 2 years plus signed Year to Date Financial Statement s Copy of Company s AIR (Appraisal Independence Requirements) policy Copy of Company s Quality Control Procedures (or executed contract with outside QC Firm) Results of Last Quarters Quality Control Audit with Management s response to the audit Report Cards/Score Cards from a minimum of two investors Company s Articles of Incorporation and current (within 90 days) Certificate of Good Standing Resolution of Board of Directors with Secretary s Certification (Forms available see LPA Exhibit E & 1) Organization Chart showing all current Officers/Principals/Directors and key staff Resumes for Principals/Officers/Owners/Directors showing responsibility and length of time in industry *Financial Institutions- Require resume for Manager of Mortgage Lending Department only Errors & Omissions Insurance Policy *minimum $300,000 coverage Fidelity Bond *minimum $300,000 MERS information If Applicable: VA Information Form VA Lender Approval Letter Underwriter LAPP/SAR Approval letter USDA Approval Letter CMG-Correspondent Lending Application revised

2 CMG APPLICATION CMG Account Executive / Regional Manager Application Type Wholesale Wholesale Select Partner Correspondent 1. Company NMLS Federal Tax ID# 2. Legal Name of Company 3. DBA Name (if applicable) (Not DBA - Sole Proprietor enter Broker s name) 4. Corporate/Headquarter Address 5. Authorized Principal Title Phone Number Fax Number 6. Primary Contact Phone Number 7. Is Company or Parent of Company a publicly traded entity? If so, please provide the following: Entity Name Ticker 8. Length of time company on line 2 has been in mortgage business Length of time company on line 2 has been in mortgage banking 9. Company is: Sole proprietorship Gen partnership LTD partnership LLC Corporation If so, date of incorporation state of incorporation Federally Chartered Bank State Chartered Bank Credit Union 10. Number of full time employees: Page 1 of 10

3 11. MANAGEMENT Name Phone President CEO CFO Secondary Marketing Production Manager Operations Manager Underwriting Manager Funding Manager Shipping Manager Quality Control Manager 12. LIST ALL AFFILIATED ENTITIES *print additional pages as needed Company Name #1 Company Type:(Title Company, AMC, Real Estate, etc.) Company Name #2 Company Type:(Title Company, AMC, Real Estate, etc.) Company Name #3 Company Type:(Title Company, AMC, Real Estate, etc.) Company Name #4 Company Type:(Title Company, AMC, Real Estate, etc.) Please document all affiliated business practices. Loans closed with unapproved affiliated entities are ineligible for purchase by CMG Financial. Page 2 of 10

4 13. LIST ALL PRINCIPAL(S) /OFFICER(S)/ OWNER(S) *print additional pages as needed Full Name & Title Social Security Number NMLS# Address Phone Full Name & Title Percent Ownership Social Security Number NMLS# Address Phone Full Name & Title Percent Ownership Social Security Number NMLS# Address Phone Full Name & Title Percent Ownership Social Security Number NMLS# Address Phone Percent Ownership Total (must equal 100%) Page 3 of 10

5 14. AGENCY INFORMATION Indicate with which of the following organizations the Company is approved to do business with and list the number of loans and dollar amounts serviced. Agency Approved Approval Date ID Number # of Loans Amount Serviced VA VA Automatic FHA FHA DE Fannie Mae Freddie Mae 15. ORIGINATION METHOD Average monthly Origination Volume Retail Channel % Branches # Wholesale Channel % Branches # Correspondent Channel % Internet/Call Center Channel % Affinity Channel % First Lien Mortgages % Second Lien Mortgages % Third Party Originators % How long has company been using TPO? How many TPO s are currently approved with your company? Minimum net worth requirement for TPO s to become approved with your company? Minimum years experience for TPO s to become approved with your company? Do you verify TPO SAFE Act Compliance? Do you have a recertification process for TPOs Do you perform pre-funding quality control on TPO loans? Do you perform post funding QC for TPO loans? Page 4 of 10

6 16. LOAN VOLUME Past 2 Years YTD Next Year To CMG (Projected) (Projected) Conforming $ Jumbo $ HELOCS $ FHA $ VA $ Totals $ $ $ $ $ (* Please list in dollar amounts for all years requested above.) 17. SERVICING INFORMATION Do you perform loan servicing? Conforming $ Jumbo $ HELOCS $ FHA $ VA $ Totals 18. DELINQUENCY INFORMATION Conforming $ Jumbo $ HELOCS $ FHA $ VA $ Total Volume Prior Period Current Period Units Dollar Volume Units Dollar Volume Unit Dollar($000) 60+ Foreclosure REO 60+ Foreclosure REO Page 5 of 10

7 19. REFERENCES List of Lender References (Please list a minimum of three on the lines below): Lender Contact Name Phone Length of Relationship INVESTOR INFORMATION List all Investors you are currently selling loans to. (Attach additional pages as necessary.) Investor Type of Relationship Delegated Contact Phone (Correspondent/Broker) (Y/N) GENERAL INVESTOR INFORMATION What % of your company s loan production is sold on a bulk basis % What % of your company s loan production is sold on a best efforts basis % What % of your company s loan production is sold on a mandatory trade basis % What % of your company s loan production is sold on an assignment of trade basis % What hedging firm are you currently using? Page 6 of 10

8 DISCLOSURES 1. In the last five years, has the Company (or its predecessors) changed its legal or capital structure, state of formation of Chief Executive Offices, or entered into mergers, acquisitions or similar transactions? Yes No *If yes, please include a letter of explanation. *If yes, indicate the nature of such change and the names of each company that was merged or consolidated with or acquired by the Company (or its predecessors) including each name under which each such company has done business and the address of each place of business of each such company immediately prior to such merger, consolidation or acquisition and within four month prior to the date of this application. 2. Are there any other companies in which the Shareholders or Officers of the Company (or their relatives) hold any interest that are in the mortgage or real estate business that conduct any business with the Company? Yes No *If yes, please include a letter of explanation. *If yes, indicate the name and nature of the business. 3. Has the Company or any existing or former organization (an Affiliate ) owned or controlled by owners or senior Officers (collectively or individually, Principals ) of the Company ever been suspended from selling or servicing mortgages by an investor or a regulatory agency? 4. Has the Company, any Affiliate, Principals, Officers, key managers or the Broker of Record ever been named defendant in a lawsuit for alleged fraud or misrepresentation in connection with any mortgage, loan or real estate related activity? 5. Has the Company, any Affiliate, Principals, Officers, key managers or the Broker of Record filed for protection from creditors under any provision of the bankruptcy laws within the past seven (7) years? 6. Has the Company, any Affiliate, Principals, key managers or the Broker of Record ever had a real estate or other professional license suspended or revoked or received any other disciplinary action from any regulatory agency? 7. Has any investor, lender of warehouse facility buyer enforced or attempted to enforce the warehouse or indemnification clauses of their agreements with the Company, any Affiliate, Principals, Officers, key managers or the Broker of Record? 8. Has the Company ever received notice of a material default or breach under the terms of any agreement with an investor, lender or warehouse bank? Page 7 of 10

9 9. Has the Company, any Affiliate, Principals, Officers, key managers or the Broker of Record ever had insurance or bonding privileges, once granted, suspended or terminated? 10. Has the Company, any Affiliate, Principals, Officers, key managers or the Broker of Record ever been convicted of a felony or crime involving moral turpitude? 11. Are there any present lawsuits in which the Company, any Affiliate, Principals, Officers, key managers or the Broker of Record are involved as a defendant? 12. Has the Company, any Affiliate, Principals, Officers, key managers or the Broker of Record had any substantial adverse findings with regard to mortgage originations or servicing in any audit or examination conducted by FHLBB, FHLMC, GNMA, FNMA, HUD, or any other federal or state agency in the past three years? 13. Has the Company experienced any significant operating losses in the past twelve months? 14. Has the Company or any of its Officers had adverse findings from any state or government agency? 15. Has the Company or any of its Senior Officers ever been suspended or canceled from selling or submitting loans by an Investor? 16. Is the Company involved in any pending lawsuits? 17. Has the Company been required to re-purchase a loan? 18. Has the Company or any of your Senior Officers ever had a license denied, revoked or been under cease and desist order or administrative action in any state? Page 8 of 10

10 19. Does the company have an in-house escrow? Yes No If yes, name the escrow entity Does the company have an ownership in an escrow company? Yes No If yes, name of the escrow company 20. Are you a member of the Mortgage Bankers Association? Yes No 21. Are you currently using MERS? Yes No 22. What loan origination software (LOS) are you currently using? 23. Loan file audits are conducted: Internally Outsourced 24. What Mortgage Insurance Company are you approved with? Are you delegated or non-delegated? BONDING & INSURANCE Fidelity Bond Carrier Bond # Exp Date E&O Insurance Carrier Policy # Exp Date Surety Bond Carrier Bond # Exp Date ACKNOWLEDGEMENT & CERTIFICATION The undersigned Applicant and Broker of Record acknowledge that the information contained herein is true and correct and may be disclosed by CMG to third parties without the Applicant s prior permission. The Applicant acknowledges that CMG and others, including federally insured financial institutions that may fund or purchase the requested facility, will rely on the Applicant s representations in this application, all of which are material. Any inaccuracy or misrepresentation in this application may subject the Applicant or those signing this application to criminal and civil liability under both state and federal law, including Title 18 U.S.C. Section 1001 et seq. The Applicant authorizes CMG and its agents to verify the information and to conduct business credit and public information source inquiries regarding the Applicant. The Applicant agrees that CMG may disclose any information developed in its quality control review investigations to third parties. The Applicant waives any and all claims for errors, omissions or inaccuracies in information developed or disclosed by CMG. Applicant agrees to indemnify, defend and hold CMG (and its affiliates, employees, officers, shareholders and agents) harmless for any injuries, claims or damages brought against Applicant and caused by disclosure of information by CMG to others. Each individual executing this application on behalf of the Applicant warrants that he/she/they are authorized to execute this application on behalf of such Applicant of corporation and the application if binding on the Applicant. Agreed and Accepted Date Signature Printed Name Title Company Page 9 of 10

11 Minimum Requirements: CORRESPONDENT LENDING APPLICATION PACKET CHECKLIST Length of time the company has been in business - 2 years Length of time with banking experience 1 year Minimum net worth - $1 Million Required CMG Forms: *Note: Signature stamps, digital signatures and typed initials not accepted Correspondent Lending Application Waiver & Authorization(s) *Financial Institutions Require Waiver only Loan Purchase Agreement *2 signed, unaltered copies to be mailed directly to corporate office Loan Fraud-Zero Tolerance Website Agreement Non-Disclosure Agreement Trademarks & Copyrighted Materials Policy Wire Authorization Form *Financial Institutions Require Wire Instructions only Warehouse Line Information & Contact Information *Wire instructions required for each IRS Form W-9 New Customer Information Form Required Documentation: Audited Financial Statements for previous 2 years plus signed Year to Date Financial Statement s Copy of Company s VIR (Valuation Independent Rules) policy Copy of Company s Quality Control Procedures (or executed contract with outside QC Firm) Results of Last Quarters Quality Control Audit with Management s response to the audit Report Cards/Score Cards from a minimum of two investors Company s Articles of Incorporation and current (within 90 days) Certificate of Good Standing Resolution of Board of Directors with Secretary s Certification (Forms available see LPA Exhibit E & 1) Organization Chart showing all current Officers/Principals/Directors and key staff Resumes for Principals/Officers/Owners/Directors showing responsibility and length of time in industry *Financial Institutions- Require resume for Manager of Mortgage Lending Department only Errors & Omissions Insurance Policy *minimum $300,000 coverage Fidelity Bond *minimum $300,000 MERS information If Applicable: VA Information Form q VA Lender Approval Letter q Underwriter LAPP/SAR Approval letter USDA Approval Letter CMG- Correspondent Lending Application revised CMG Financial, All Rights Reserved. CMG Financial is a registered trade name of CMG Mortgage, Inc., NMLS #1820 in most, but not all states. CMG Mortgage, Inc. is an equal opportunity lender, licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act No , California Finance Lenders Law No For information about our company, please visit us at To verify our complete list of state licenses, please visit For more information on State licenses, please visit Page 10 of 10