BRANCH MANAGER MANUAL

Transcription

1 BRANCH MANAGER MANUAL All Rights Reserved. American Financial Network, Inc. Revised 03/15/2017

2 Table of Contents Helpful Links... 1 AFN Intranet... 1 AFN Approved Broker List... 1 AFN Bulletins... 1 AFN Business Card Order Form... 1 AFN Corporate Contacts... 1 AFN Employee Handbook... 1 Compliance Matters Bulletins... 1 Encompass Newsflashes... 1 Instructions to Sync to Your Cell Phone... 1 Motivity/ Movation Reporting... 1 NYLX Lock Instructions... 1 Getting Started as an Approved Branch... 2 Welcome to American Financial Network, Inc Welcome Message... 2 National Mortgage Licensing System (NMLS)... 2 Company Access to NMLS... 2 Procedure to Grant Company Access... 3 Viewing and Maintaining Your NMLS Records... 3 Procedure to Update Your Employment History... 4 License Status and Deficiencies... 5 Procedure to View Your License Status... 5 Onboarding for New Branch Members... 6 Orientation Training... 6 Human Resources... 9 Contacts... 9 Corporate Contacts... 9 New Hires... 9 Employee Handbook... 9 New Hire Packets... 9 Classification... 9 ADP... 9 Benefits and Paid Time Off (PTO)... 9 Benefits Eligibility... 9 PTO Eligibility Wage Garnishments/Levies Handled by HR Only Employee Termination Consult AFN HR Director Payroll Payroll Basics All Rights Reserved. American Financial Network, Inc. Revised 03/15/2017

3 Loan Officer s Compensation Agreement Purpose and Scope Commission Structure Technology...13 Contacting the Information Technology (IT) Department Telephone Helpdesk Tasks Minimum System Requirements PC/Laptop Compatibility Operating System (OS), Internet Explorer (IE) and Adobe Acrobat Virus/Malware Protection AFN Setting Up AFN in Outlook Receiving AFN Online or on a Cell Phone Adding AFN to Outlook s Safe Site List Accounting...17 General Information Branch ID Process Payroll Accounting Pay Schedule, Including LO Commission Accounts Payable New Branch Requirements Processing Invoices Duplicate Payments Payment Schedule Check Requests Cash Received Policy Borrower Payments Early Payoff (EPO) and Early Payment Default (EPD) Definitions Policy Top Five EPO/EPD Investors Secondary Marketing...23 Locks and the Lock Desk Lock Desk Hours Lock Extensions To request an extension: Lock Float Down NYLX/Loan Decisions...24 Access Codes Pricing in NYLX through Encompass All Rights Reserved. American Financial Network, Inc. Revised 03/15/2017

4 Operations...25 AFN Branch Services Credit Technology Inc. (CTI) CTI Bundled Services CTI Products and Pricing Table Ordering CTI Products and Services Assigning CTI Fees Appraisal Management Companies (AMCs) Policy AMC Approval Process Brokered Loans Policy Responsibility Compliance Matters Top Three Compliance Issues HVCC/Air Policy HPML Policy Notarizing Documents Encompass Pipeline Management Public Reports Customized Reports Motivity Reports All Rights Reserved. American Financial Network, Inc. Revised 03/15/2017

5 HELPFUL LINKS AFN Intranet AFN Approved Broker List AFN Bulletins AFN Business Card Online Orders AFN Corporate Contacts AFN Employee Handbook Compliance Matters Bulletins Encompass Newsflashes Instructions to Sync to Your Cell Phone Motivity/ Movation Reporting NYLX Lock Instructions AFN Intranet AFN Approved Closing Agents AFN Bulletins Retail Business Card Online Orders AFN Corporate Contacts (Password is TeamAFN) AFN Employee Handbook Compliance Matters Bulletins AFN Encompass Newsflashes Get on Your IPhone Get on Your Smartphone (Company Code is AFN-10097) NYLX Instructions AFN-P-Adm_BranchMgr Rev 03/15/2017 Page 1 of 31

6 GETTING STARTED AS AN APPROVED BRANCH Welcome to American Financial Network, Inc. Welcome Message Welcome to American Financial Network (AFN), a Direct Lender with delegated authority to underwrite and close FHA, USDA, VA, and Conventional loan products in house. The purpose of this manual is to provide basic operating information that will support your success as an AFN approved branch. If you have any questions about the information contained herein, please contact the Branch Relations Department ( them at branchrelations@afncorp.com). Mortgage Loan Officers (MLOs) are responsible for updates, deficiencies, renewals, and requirements that keep their license in an approved status. Until NMLS access is granted and your license approved, AFN cannot complete your hiring process. Branches and Loan Officers cannot originate loans until they are NMLS Approved. The information presented in the following section has four components: (1) granting NMLS company access; (2) updating MU4 employment history in NMLS; (3) viewing your license status and correcting any deficiencies; and (4) attending AFN s Onboarding Orientation Training. National Mortgage Licensing System (NMLS) Company Access to NMLS Granting AFN company access to NMLS will allow AFN to view your NMLS record, and to create a company relationship and sponsorship. Once company access has been granted, AFN will continue to have access until your company relationship is ended in NMLS. AFN-P-Adm_BranchMgr Rev 03/15/2017 Page 2 of 31

7 National Mortgage Licensing System (Continued) Procedure to Grant Company Access Viewing and Maintaining Your NMLS Records From the NMLS Resource Center website located at 1. Click the [Log In to NMLS] button in the upper right corner. 2. Log in to your NMLS account. 3. Click the Filing tab. 4. In the Form Filing Home screen, click the Company Access link in the sub-menu. 5. Click the [Add] button to.search for the company you wish to grant access 6. Search for AFN by entering AFN s NMLS ID number (237341) in the search box, or by entering the company name. 7. Check the box that corresponds to AFN and click the [Save] button. 8. The Company Access screen will open confirming that you have granted company access. o AFN will automatically receive notification that you have granted company access; therefore, no other action is required from you. 9. Once access has been granted, AFN can establish relationships and create sponsorship requests. o AFN can only sponsor licenses in jurisdictions in which the company and your branch are also licensed. When employment changes for a Mortgage Loan Originator (MLO), the NMLS MU4 must be updated to reflect accurate information. The following sections provide instructions for editing your employment history, updating your current employer, viewing your license status, and determining if any deficiencies exist in fulfilling state licensing requirements. AFN-P-Adm_BranchMgr Rev 03/15/2017 Page 3 of 31

8 National Mortgage Licensing System (Continued) Procedure to Update Your Employment History Log in to your NMLS account from the NMLS website at 1. Click the [Filing] tab. 2. Click Individual from the sub-menu. 3. Click the [Request New/Update] button. 4. Click Employment History from the left navigation panel. 5. Select the [Edit] icon and enter the employer you have listed as Current Employer; enter an end date [mm/yyyy], clear the Current Employer check box, and click [Save]. 6. Select Employment History again from the left navigation panel and click [Add]. 7. Enter a start date [mm/yyyy] for your new Current Employer 8. Tip: There can be no gaps in your employment history. If there has been a period of unemployment, it must be listed. 9. Leave the end date blank and click the [ ] Current Employer box; complete all fields for your current employer (the company name and address that you enter must match the company name and address exactly as it appears in the NMLS record), and click [Save]. 10. Review all other sections of the MU4 and update where appropriate. 11. Proceed to the Attest and Submit section on the left navigation panel; complete the Attestation and click [Submit] to update your filing. AFN-P-Adm_BranchMgr Rev 03/15/2017 Page 4 of 31

9 National Mortgage Licensing System (Continued) License Status and Deficiencies When the state regulator performs a status update in NMLS, you should receive an notification of the status change and any deficiencies. The state regulator places a deficiency in NMLS to inform applicants and licensees of any information that is still needed in order for them to issue a licensing decision/approval. To receive system-generated notifications from your state regulator, your address must be current and accurate in NMLS. Your employer does not control licensing and sponsorship approvals. The timeframe for obtaining licensing approval varies with each state licensing department. For questions or concerns about your approval status, please contact NMLS directly at (855) or contact your state licensing department. The timeframe for deficiency item review and licensing approvals varies for each state licensing department. If you have questions or concerns about a deficiency or approval status, please contact your state licensing department directly. For additional questions, please contact the Licensing Coordinator at the corporate office (see Corporate Contacts list). Procedure to View Your License Status The following information provides step-by-step instructions that will help you determine the status of your license and review for any deficiencies as determined by your state regulator. 1. Log in to your NMLS account. 2. Select the Composite View tab. 3. Select View Individual from the sub-menu. 4. Select View License/Registration List on the left navigation panel; if you would like to see your License Status History, click the license name hyperlink to display a detailed history. (Continued) AFN-P-Adm_BranchMgr Rev 03/15/2017 Page 5 of 31

10 National Mortgage Licensing System (Continued) Procedure to View Your License Status (Continued) 5. Select the hyperlinked number under the License Items column to view the license item details. 6. Any deficiencies will be displayed in the Active License Items section; review the details in the Title and External Note columns to determine the action(s) required by the state to satisfy the deficiency and approve your license. 7. Once the required actions have been taken you can continue to check your license status for updates Onboarding for New Branch Members Orientation Training All Branch Managers must complete orientation training (onboarding) for the topics shown in the following table. Space is provided in the left column of the table to track the completion date for each module. Contact Branch Relations at any time to schedule training for new employees or to reschedule training for yourself. Completion Date: Completion Date: ONBOARD ORIENTATION Welcome Call Presenter: Jack Sherman (CEO), John Sherman (President) Recommended For: Branch Managers Approximate Length: 30 Minutes HR/ Payroll Presenter: Susie Sensenbach (HR & Payroll Director) Recommended for: Branch Managers Approximate Length: 60 Minutes TOPICS COVERED Mission Statement Corporate Vision Core Values Company History Future of AFN Directory/Organizational Chart New Hire Paperwork Log-Ins and Addresses Payroll & Benefits Review Employee Handbook Required Posters/Signs NMLS Licensing (Continued) AFN-P-Adm_BranchMgr Rev 03/15/2017 Page 6 of 31

11 Onboarding for New Branch Members (Continued) Completion Date: Completion Date: Completion Date: Completion Date: Completion Date: Completion Date: ONBOARD ORIENTATION Accounting Presenter: Bob Telles (CFO) Recommended for: Branch Managers Approximate Length: 60 Minutes Products & Underwriting Presenter: Edward Fink (Director of Credit Risk) & Twyla Hankins (EVP of Operations) Recommended for: All Staff Approximate Length: 60 Minutes Secondary Presenter: Scott McGinley (Executive VP Secondary) Recommended for: All Staff Approximate Length: 30 Minutes Marketing Presenter: Kim Skulavik (Marketing Manager) Recommended For: Sales Staff Approximate Length: 45 Minutes Loan Officer Training Presenter: Branch Relations Department Recommended for: Sales Staff & Processing Staff Approximate Length: 60 Minutes Loan Processing Presenter: Nasim Tourigny (Director of Processing) Recommended for: Processing Staff Approximate Length: 90 Minutes TOPICS COVERED New Branch Setup Accounts Payable Cash Received Check Requests EPO/EPD Policy Products Matrices & Guidelines Niche Products & Investors Scenario Desk Approved States Underwriting Process Brokering Loans Contact Information Lock Desk Hours Lock Extension Policy Float Down Policy Mortgage CEO Tutorial CRM Tool Marketing Materials Social Media Branch/LO Websites Business Card Ordering Encompass Overview File Flow Entering Borrower Info Sending/ Receiving Initial Disclosures Service Vendors File Flow TIL/GFE Tips Encompass Workflow Submitting Loans to U/W (Continued) AFN-P-Adm_BranchMgr Rev 03/15/2017 Page 7 of 31

12 Onboarding for New Branch Members (Continued) Completion Date: ONBOARD ORIENTATION QC & Compliance Presenter: Jimmy Vuong (Branch Relations and Compliance Supervisor) Recommended for: Sales Staff & Processing Staff Approximate Length: 30 Minutes TOPICS COVERED Compliance Dept. Overview File Flow Common Mistakes Licensing Completion Date: Onboarding Review Twyla Hankins, EVP Operations Overview of the loan process Set expectations Provide experience feedback AFN-P-Adm_BranchMgr Rev 03/15/2017 Page 8 of 31

13 HUMAN RESOURCES Contacts Corporate Contacts A list of current contacts is available on the Intranet. Contact Human Resources personnel listed there for your HR needs. New Hires Employee Handbook New Hire Packets Classification ADP All new hires should read the Employee Handbook and return a copy of the Acknowledgment of Receipt page with their new hire packet. Completed New Hire Paperwork (available on the Intranet) is to be delivered to the Branch Relations Department via (branchrelations@afncorp.com). Upon receipt and review of the New Hire Packets, Branch Relations will submit them to HR for processing. No new hires will be processed without complete paperwork and new employees may not start as an official AFN employee or receive access to any of AFN s technology or systems until all paperwork is completed, reviewed and processed. Employees must be properly classified as Exempt or Nonexempt (from overtime). Exempt employees are typically in a supervisory or head of department role, and receive a monthly salary (versus an hourly wage). Non-exempt are hourly employees. All employees must register with the ADP payroll system and sign up for automatic deposit of their payroll checks. All hourly employees must utilize the ADP timekeeping system. Training on the ADP system is offered by the HR Coordinator upon request. Benefits and Paid Time Off (PTO) Benefits Eligibility Benefits are available to employees with the effective date of the first of the month after 30 days worked. Benefits are managed through ADP. Questions regarding benefits should be directed to the Executive HR/Payroll Director (see Corporate Contacts list). AFN-P-Adm_BranchMgr Rev 03/15/2017 Page 9 of 31

14 Benefits and Paid Time Off (PTO) (Continued) PTO Eligibility Paid Time Off (PTO) is earned by all non-sales related, full-time positions. PTO starts accruing effective the first pay period after 90 days worked, and is managed in ADP. Employees who wish to use available PTO hours must submit their request via ADP. Questions regarding PTO should be directed to the HR Coordinator. Wage Garnishments/Levies Handled by HR Only Any information you may receive regarding wage garnishments and/or levies for any employee must be forwarded to the HR Coordinator. Employees who have questions regarding these payroll deductions should also contact Alicia. Employee Termination Consult AFN HR Director Each state has its own regulations regarding employee termination, receipt of final pay, etc. Before officially terminating an employee, consult Susie Sensenbach, HR & Payroll Director. Ideally, Susie should be contacted at least three days prior to the termination. Using Susie s advice and state-regulated knowledge, branches can achieve a successful termination while reducing AFN Corporate and Branch exposure. Payroll Payroll Basics AFN employees are paid twice monthly on the 15th and the last day of the month AFN pays Loan Officer (LO) commissions on funded loans only Commission pay schedule: o Loans funded on the 20th of last month through the 4th of the current month will be paid on the 15th of the current month. o Loans funded between on the 5th of the current month through the 19th of the current month will be paid on the last day of the current month. (Continued) AFN-P-Adm_BranchMgr Rev 03/15/2017 Page 10 of 31

15 Payroll (Continued) Payroll Basics (Continued) Paying commissions on loans outside these commission pay cycles puts AFN payroll at risk of double paying on a loan, therefore there will be no exceptions to the foregoing o An employee experiencing a financial hardship may request an advance against future commissions o Such an advance must be approved by a Divisional, Regional, or Corporate Manager, and o The amount to be advanced will be 70% of any funded loan that was funded subsequent to the current pay cycle One advance per quarter maximum per employee Payback of the advance will be taken in one lump sum upon payment of the commission; other arrangements may be made upon prior approval Hourly employees are paid on the same schedule as outlined above Loan Officer s Compensation Agreement Purpose and Scope Commission Structure AFN now has an electronic version of Addendum A to the Loan Officers Compensation Agreement, Form The purpose of the electronic version of Addendum A is three-fold: (1) to aid AFN compliance with LO Compensation Rules, (2) to reduce the number of compensation plans being used within AFN, and (3) to structure LO Compensation Plans so that commission payments are processed with each payroll cycle via AFN s mortgage banking computer software. Form V17 outlines LO commission structure as follows: Minimum commission per loan Maximum commission per loan Basis Points (BPS) for funded loans where the LO generated the loan lead and where AFN generated the loan lead BPS for Bond Loans BPS for Team Loans Tiers: Box 1 BPS structure without tiers (if you do not wish to tier, use Box 1) Box 2 BPS structure with tiers (if you wish to tier, use Box 2) (Continued) AFN-P-Adm_BranchMgr Rev 03/15/2017 Page 11 of 31

16 Loan Officer s Compensation Agreement (Continued) Commission Structure (Continued) Box 2 Retroactive or Non-retroactive Retroactive calls for payment of BPS in effect for the highest tier achieved for the month Non-retroactive calls for payment of BPS for each tier achieved for the volume within each tier Box 2 - Three tier levels, Tier I, Tier II, and Tier III Box 2 Tier volume based on loan unit count or loan gross volume The comments section at the bottom of Form may be used for communication to Human Resources (HR) Lock date: The LO compensation plan in effect on the loan lock date (as documented in the AFN HR files) will be the BPS rate paid on the loan Non-retroactive commission calculation tier will be driven by funding date order Bond loans may be used to advance the monthly volume or loan count to the next tier but will be paid at the bond loan BPS in effect on the loan lock date AFN-P-Adm_BranchMgr Rev 03/15/2017 Page 12 of 31

17 TECHNOLOGY Contacting the Information Technology (IT) Department Telephone Helpdesk Tasks IT can be reached by using the department address, which will create a help ticket that can be claimed by anybody on the IT team: helpdesk@afncorp.com. The swiftest way to get the attention of the entire IT team is via the helpdesk noted above. To speak to an IT team member, you can use the helpdesk hotline, which is monitored by a System Support Analyst Contact the AFN Helpdesk for most technology-related matters. Following is a list of common issues. If your issue does not appear on this list, please contact the helpdesk anyway; if they cannot help you directly, they will find the person within the company who can assist with your issue. IT DEPARTMENT (helpdesk@afncorp.com) Setup Encompass Installation* General Computer Problems LO Individual Website Setup LO/Ops Laptop Setup and Distribution Third Party Credentials, such as CTI, LP, NYLX Virus Cleanup/Removal * NOTE: Encompass and DU credentials are not assigned by IT. The HR Department notifies the Encompass Administrator when to generate these credentials for all new hires. Contact the Encompass Data Support Analyst with questions regarding Encompass and DU access. AFN-P-Adm_BranchMgr Rev 03/15/2017 Page 13 of 31

18 Minimum System Requirements PC/Laptop Compatibility Operating System (OS), Internet Explorer (IE) and Adobe Acrobat Virus/Malware Protection Apple/Macintosh products are not compatible with most industry software. IBM-compatible PCs and laptops are compatible with the AFN network and industry software. For ultimate performance, following are the recommended versions of your OS, IE and Adobe: Windows 7 IE 10 Adobe Acrobat Reader X If your systems have been upgraded to higher versions and you experience technical issues, the IT Department may be able to help you downgrade. We suggest that you turn off automatic updates and do not upgrade to higher versions without consulting IT. Protecting your PC/laptop and your AFN from viruses, worms, malware and other undesirable malicious content, you must have protection software installed and it must be routinely updated. IT recommends using Microsoft Security Essentials. This is a free program provided by Microsoft. If you need help installing, running or updating this vital program, please contact the IT helpdesk for assistance (helpdesk@afncorp.com). AFN Setting Up AFN in Outlook Receiving AFN Online or on a Cell Phone When new hires are brought onboard, IT will setup an official AFN address on our Exchange server for each individual. Policy requires that all AFN employees communicate using their official AFN address. You can also access AFN online when you are away from your computer: Accessing AFN Webmail: o User Name = name in your address o Ask IT for your password Receiving AFN on an iphone: iphone Instructions Receiving AFN on other phone: Smart Phone Instructions AFN-P-Adm_BranchMgr Rev 03/15/2017 Page 14 of 31

19 AFN (Continued) Adding AFN to Outlook s Safe Site List To ensure messages are correctly routed to your inbox you will need to add AFNCorp.com to Outlook s list of safe sites. The procedure to add AFNCorp.com to Outlook s safe site list is fundamentally the same regardless of the version you are currently using, Outlook 2007, 2010, or 2013, therefore the following instructions apply to all three versions of Outlook. The examples shown below are screenshots taken from Outlook If you have Outlook 2010 or 2013 your display will have a slightly different appearance. 1. Select the Actions menu from the top of the screen. 2. From the menu, select Junk and then Junk Options 3. Click on the Safe Senders tab and then click the [Add] button. AFN-P-Adm_BranchMgr Rev 03/15/2017 Page 15 of 31

20 AFN (Continued) Adding AFN to Outlook s Safe Site List (Continued) 4. in the address line and click the [OK] button. 5. Click the [OK] button once more to confirm and complete the process of adding AFN to Outlook s safe site list. AFN-P-Adm_BranchMgr Rev 03/15/2017 Page 16 of 31

21 ACCOUNTING General Information Branch ID Process The Accounting and Payroll departments require the following information in order to set up a new branch: 1. Both Accounting and Payroll must receive a signed Branch Manager Agreement. The Branch ID number will not be issued until this requirement is completed 2. Once the Agreement is received, the Company Controller will issue your Branch ID number and Accounting and Payroll will then set up your branch in each system using your branch ID number 3. Branches with existing vendor accounts must change the account name(s) and re-direct billing to: American Financial Network, Inc. 10 Pointe Drive, Suite 330 Brea CA Payroll Accounting Pay Schedule, Including LO Commission See the Human Resources section of this guide. Accounts Payable New Branch Requirements The following information is required before a new branch can be set up in the Accounts Payable system and before a new branch can process invoices: Landlord contact information Copy of Master Lease List of any vendors to be transferred to AFN Accounts Payable department AFN-P-Adm_BranchMgr Rev 03/15/2017 Page 17 of 31

22 Accounts Payable (Continued) Processing Invoices Print a copy of the invoice Vet the invoice If appropriate, authorized Branch/Regional Manager must approve the invoice by writing on the face of the invoice "ok to pay" with branch ID and loan number (if specific to a loan) Sign the face of the invoice under the OK to Pay designation Scan and the invoice with your Branch ID and loan number to accountspayable@afncorp.com. Duplicate Payments Payment Schedule Check Requests The following procedures will help prevent duplicate payments: Branches with scanning capability: submit invoices one time only by scanning the invoice to Accounts Payable and destroy the original invoice Branches without scanning capability: mail original invoice via USPS to: American Financial Network, Inc. Attention: Accounts Payable 10 Pointe Drive, Suite 330, Brea, CA AFN s policy is to pay all invoices within 30 days of the due date. In cases where payment is urgent, write RUSH in large letters on the front of the invoice and proceed with processing as described above. When a vendor does not provide an invoice, a Check Request form with supporting documentation must be submitted to Accounts Payable. Examples of documentation include but are not limited to receipts and/or s. The Check Request form is to be used only for expenses that do not have an invoice and the Check Request form must be printed and signed by the Branch or Regional Manager. AFN-P-Adm_BranchMgr Rev 03/15/2017 Page 18 of 31

23 Cash Received Policy Borrower Payments Borrowers will receive a Hello Letter and temporary payment coupon from AFN. When AFN sells the loan to an investor, the borrower will receive a Goodbye Letter from AFN and a Hello Letter and payment instructions from the investor. If a borrower contacts a branch to make a payment, the borrower should be told to follow the instructions they received from AFN. In no event is the borrower to be instructed to send payments to the branches. Borrowers are to follow Borrower Payments instructions in the section below. Checks are to be made payable to American Financial Network, Inc. and sent with the payment coupon (see example below) to: Loan Servicing Center 10 Pointe Drive, Suite 330 Brea, CA If a payment is in transit to AFN that is due to the investor, we will forward the payment to the investor immediately upon receipt If borrowers have questions regarding their mortgage payments, direct them to contact our Loan Servicing Center toll-free at (888) , ext between 8:00 AM and 5:00 PM Pacific Standard Time o The borrower must be advised that it is standard industry practice to sell loans on the secondary market, and their loan may be sold in the future o At that time the new lender may re-evaluate their escrow account which may result in a payment adjustment o The borrower will receive timely notification in the event their loan is sold AFN-P-Adm_BranchMgr Rev 03/15/2017 Page 19 of 31

24 Early Payoff (EPO) and Early Payment Default (EPD) Definitions Policy EPO: Loans re-financed before 180 days have lapsed since the loan purchase. EPD: Borrower defaults on his or her payment within the first four payments due to the investor. Investor Policy - EPO and EPD charge back is driven by each investor s policy. That policy may change from time to time without notice. AFN Policy - AFN Corporate will charge the branch or region profit and loss statement (P&L) for all branch margins previously posted to the regional and/or branch P&L. While it appears that 180 days must lapse before it is safe to do an EPO refinance, such a refinance is at your own risk and will be charged to your P&L if a charge is incurred Corporate will share with you in the EPO or EPD cost in that Corporate will incur an expense for its share of margin returned to the investor, and will pay any administration or indemnification fees incurred; Corporate may further absorb a derivative loss related to the returned margin Corporate will not be bound by any Corporate EPO preapprovals; all EPOs and EPDs will be charged back to the branch Top Five EPO/EPD Investors (Continued) AFN-P-Adm_BranchMgr Rev 03/15/2017 Page 20 of 31

25 Early Payoff and Early Payment Default (Continued) Top Five EPO/EPD Investors (Continued) (Continued) AFN-P-Adm_BranchMgr Rev 03/15/2017 Page 21 of 31

26 Early Payoff and Early Payment Default (Continued) Top Five EPO/EPD Investors (Continued) AFN-P-Adm_BranchMgr Rev 03/15/2017 Page 22 of 31

27 SECONDARY MARKETING Locks and the Lock Desk Lock Desk Hours Lock Extensions Lock Float Down The lock desk s standard hours of operation are Monday through Friday from 8:00 AM until 4:00 PM Pacific Time. The lock desk may be closed on federal holidays, AFN holidays and is subject to early closure certain days preceding holidays. Any closures and/or early closures will be announced in advance. Locks due to expire on a day the lock desk is closed will be extended to the next business day at no additional cost. There is a fee for lock extensions. The extension can be paid by the borrower or the branch as follows: Borrower: The cost of the extension will be charged on the HUD-1 Settlement Statement Branch: Must be approved by Branch Manager and will be charged to the branch Cost of extension is.025% per day, regardless of investor Cannot extend a lock into a weekend or holiday To request an extension: Address an to lockdesk@afncorp.com Be sure to cc the Branch Manager on the Type Lock Extension ######### in the subject line (replacing the #s with the loan number) Indicate in the body of the o Borrower or Branch paid o Number of days for extension The locked rate is compared to the updated market rate. The lock is eligible for a one-time float down if: The rate decreases by more than one percentage point; and The new rate is for the exact same investor and number of days locked. AFN-P-Adm_BranchMgr Rev 03/15/2017 Page 23 of 31

28 NYLX/LOAN DECISIONS Access Codes Pricing in NYLX through Encompass If you have not received login credentials for NYLX, the help desk and request NYLX access. Access the loan you wish to lock in Encompass and perform the following tasks: 1. Go to the Services tab and select Search Product and Pricing. 2. When the PRODUCT AND PRICING dialog box appears, select the LoanDecisions option (double-click). 3. When the Product and Pricing Request dialog box appears: a.) Enter User Login Information (click the Save Login Information box to bypass this step in the future). b.) Click the [Continue] button. 4. In NYLX/LoanDecisions: a.) Double-check that all transferred information is correct. b.) Enter Borrower Type information. c.) Select investor(s). d.) Select the loan program. e.) Select the Go Price option. f.) Select the loan program that is the best fit for your borrower. 5. For assistance, please contact Branch Relations AFN-P-Adm_BranchMgr Rev 03/15/2017 Page 24 of 31

29 OPERATIONS AFN Branch Services Credit Technology Inc. (CTI) CTI Bundled Services Phone: (888) Fax: (888) Web: CTI provides bundled services for retrieving a borrower s credit score report. These bundled services include credit analysis, flood certification, fraud alerts, LOS reissues, TRVs, and more. The following table provides a list of CTI s bundled services. CTI Products and Pricing Table The table provided on the following pages provides a breakdown of CTI products and fees. (Continued) AFN-P-Adm_BranchMgr Rev 03/15/2017 Page 25 of 31

30 AFN Branch Services (Continued) CTI Products and Services Unit Price Consumer Credit Reports Bureau price includes scores (Fair Isaac, FICO and Beacon), Fannie Mae connectivity fee, and Fair and Accurate Credit Transactions Act (FACTA) fee. Individual 1 Bureau $ Bureau $ Bureau $8.00 Joint 1 Bureau $ Bureau $ Bureau $8.00 Fraud Alerts / Red Flags Experian: Fraud Shield (SSA) Per Bureau Included Equifax: SafeScan Per Bureau Included TransUnion: High Risk Fraud Alert Per Bureau Included Office of Foreign Asset Control (OFAC) Per Bureau Included ID Risk Review Per Report Included Surcharges Fanny Mae Reissue Per Reissue Included Freddy Mac Reissue Per Reissue Included Secondary Use Per Bureau Included Loan Origination Software (LOS) Reissue Per Reissue Included (Continued) AFN-P-Adm_BranchMgr Rev 03/15/2017 Page 26 of 31

31 AFN Branch Services (Continued) CTI Products and Services (Continued) Unit Price Refresh Report (Soft Inquiry/LQI) Other Reports Same as bureau pricing Comparison Report Per Report Included Rapid Rescore Per Bureau $30.00 Credit Analyzer Per Bureau Included What-If Simulator Per Bureau Included Credit Assurance (Score Preview) Per Bureau Included Business Credit Report Per Report $65.00 Risk-Based Pricing (RBP) Disclosure Per Report Included SSA Form 89 Verification Per Report Included Customer Services Residential Mortgage Credit Report (RMCR) Per Report $60.00 Trade Line Verification (Supplements) Each Included Mortgage Rating Each Included Miscellaneous Services Automated Valuation Model (AVM) Per Report $ T Tax Return Verification (TRV) 1 year Included Additional Years Included Flood Certification Basic Included Life of Loan Included Site Inspection $ AFN-P-Adm_BranchMgr Rev 03/15/2017 Page 27 of 31

32 AFN Branch Services (Continued) Ordering CTI Products and Services Assigning CTI Fees Instructions for ordering any of the products shown in the preceding table can be found on the CTI website at You can also set up a new account and/or log in to request CTI products and services from CTI s home page Please note: CTI services are not ordered through the Encompass Services tab When closing a loan, the full $73.00 CTI fee will be charged to the branch and the fee will appear on the branch P&L. If the Loan Officer were to be charged, the CTI fee would be processed through the payroll system. If the loan does not close, only the $8.00 Tri-Merge Report Fee will apply. If you choose to charge the borrower s credit card directly, this can be done from the CTI website, (not Encompass). When charging the CTI fee to the borrower through the CTI website, you must manually import the credit report into Encompass. Assigning a closed loan fee: Find the credit report in question Click Closed Loan Adjust button under Charges View and print invoice AFN-P-Adm_BranchMgr Rev 03/15/2017 Page 28 of 31

33 Appraisal Management Companies (AMCs) Policy To maintain full regulatory compliance all AFN branches and representatives are required to use AFN-approved Appraisal Management Companies (AMCs) when an approved AMC is available in your area. A current list of approved Appraisal Management Companies may be obtained by contacting Branch Relations. AMC Approval Process When there is a legitimate reason for using other than a currently approved AMC, send a request to add an AMC to the AFN Project Manager of Legal Operations for review and determination of approval. (See Corporate Contacts list.) Brokered Loans Policy To maintain full regulatory compliance all AFN branches and representatives must use AFN-approved lenders when brokering out loans. To refer a lender for approval, submit a request that includes a brief description of the services provided by the prospective broker to the AFN Project Manager of Legal Operations for review and determination of approval. A current list of Approved Lenders for Brokering Out Loans is available on the Intranet. Responsibility A full loan must be uploaded and kept current including the required PTD and PTF conditions throughout the entire process. Compliance Matters Top Three Compliance Issues 1. FHA Case Numbers cannot be pulled until you have a signed Form 1003, a signed A or a A, and signed disclosures The processor is responsible for pulling the FHA case number Contact your processor once the initial disclosure package has been signed and returned by the borrower (Continued) AFN-P-Adm_BranchMgr Rev 03/15/2017 Page 29 of 31

34 Compliance Matters Top Three Compliance Issues (Continued) HVCC/Air Policy HPML Policy Notarizing Documents 2. Appraisals should not be ordered until you have a full set of signed disclosures including the Truth in Lending (TIL) The processor is responsible for ordering the appraisal Contact your processor once the initial disclosure package is signed and returned by the borrower No fee can be incurred by the borrower until the initial disclosure package has been signed and returned 3. Automated Underwriting System (AUS) running an AUS with full details (that is, all 6 pieces of RESPA information) and not sending disclosures within 3 days puts the company at risk Errors on disclosures can only be fixed by: o Cancelling the loan within 3 days of inputting the 6 pieces of RESPA information and starting all over o Disclosing within 3 days: Branch Relations will send out daily s to notify you of any loans that need to be cancelled or disclosed Loan Processors are required to send a copy of the Appraisal to the Borrower. Compliance with HPML rules requires: Verifying and documenting the borrower s ability to pay Determining repayment ability using fully indexed rate and fully amortized payment along with property taxes and insurance Assessing the borrower s ability to pay using a DTI (debt to income) Ratio Completion of the AFN HPML Checklist AFN does not allow ARM HPMLs. All documents that require notarization must be notarized by a neutral third-party licensed Notary Public having no connection to or interest in AFN. Employees of AFN are not authorized to notarize documents. Having an AFN employee notarize documents can be problematic in the event of litigation with a borrower. AFN-P-Adm_BranchMgr Rev 03/15/2017 Page 30 of 31

35 Encompass Pipeline Management Public Reports Customized Reports Motivity Reports From the Encompass home page, click the Reports tab to access all Public Reports. You can also create customized personal reports. Refer to Creating Personal Reports in Encompass or call Branch Relations for help. Two examples of customized reports are: Move from Prospects to Pipeline Folder This report allows you to see loans that are still in the Prospects folder that need to be moved to the Pipeline folder by the Processor Need to Disclose Displays loans that have a GFE date soon to expire; the LO must either cancel the loan or send initial disclosures. To set up your Motivity user name and password, please contact the AFN Database Administrator. (See Corporate Contacts list.) For help navigating Motivity and generating reports, please contact a Branch Relations Coordinator. AFN-P-Adm_BranchMgr Rev 03/15/2017 Page 31 of 31