May 8-10, Home Lending Association Profile

Transcription

1 May 8-10, Home Lending Association Profile

2 1. What consumer products does your association offer? (Examples: Construction Loans, Lot Loans, Mortgage Insurance, Home Equity Loans, Rec Ag Loans, etc.) We offer Conventional, FHA, VA, USDA thru Brokered and Correspondent relationships. We just started offering One time Close Construction loans. We also offer Portfolio products to 85% (no MI offered on Portfolio) and lot/rec ag loans. 2. How many NMLS registered loan officers does your association employ? 4, Director and 3 Loan Officers 3. How many full-time, consumer support personnel does your association employ? (List by job function examples: processing, quality review, credit, closing, servicing) We are a small association so we only have 1 full time processor/closer at this time. Our credit and quality review is currently performed by our CCO. Servicing is split between our processor (delinquencies) and accounting department (posting payments). 4. Briefly describe the structure of your association s consumer program. Our division is apart from Ag lending, we have 4 licensed loan originators and one Processor/Closer support position. Our Ag RM's are wonderful about referring loans! a. Are any of your association s processes centralized? If so, describe: (Examples: Underwriting, Disclosures, Doc Prep, etc.) All our processes are completed by our processor/closer at this time. We are looking to add a Loan Closer/Servicing person May 1st. 5. What is the total volume of consumer loans your association originated in: m m 6. What is the total volume of consumer portfolio services by your association? a. Volume serviced in-house 21m b. Volume managed or sold to a third-party servicer 25m 7. Does your association write consumer loans using Excess Authority or Excess Capacity? If so, what lenders/investors does your association collaborate with? We Broker Excess capacity loans to CMG Financial and Stearns Lending. We have only done a few in the past year.

3 Ag New Mexico Farm Credit (Cont d) 8. What are your two top current challenges? Appraisals in our rural area, comps and distance are very difficult Dealing with Internal Controls; identifying new roles, hiring people to fit our culture that have knowledge with consumer purpose lending. 9. What process enhancements have you implemented and /or are in the process of implementing that you feel are/will be a game changer for your association s consumer program? Adding the Loan Closer position where the processor hands off the file at Clear to Close then the Closer takes it from there. Since we are still growing and developing we feel this position will separate duties a bit more clearly and allow each of them to do what they do best to keep the files flowing.

4 1. What consumer products does your association offer? (Examples: Construction Loans, Lot Loans, Mortgage Insurance, Home Equity Loans, Rec Ag Loans, etc.) Construction loans, lot loans, recreational land, real estate - purchases & refinances 2. How many NMLS registered loan officers does your association employ? ~35 lenders in total - 10 home and land lenders focused on consumer loans and credit for part-time farmers) 3. How many full-time, consumer support personnel does your association employ? (List by job function examples: processing, quality review, credit, closing, servicing) 5 which is comprised of 1 - underwriter, 4 processing & closing staff members 4. Briefly describe the structure of your association s consumer program. Home and Land Lenders are part of the branch team/retail office. The lenders report to our Regional Lending Managers. RLMs supervise loan officers (both Ag and Home & Land) and sales support staff who are located in the branches. The consumer underwriting and processing teams report to our Loan Administration Manager in a central location. a. Are any of your association s processes centralized? If so, describe: (Examples: Underwriting, Disclosures, Doc Prep, etc.) Underwriting and processing are centralized 5. What is the total volume of consumer loans your association originated in: 2017 $25 MM consumer loans, $440MM portfolio of part time farmers 2016 $445MM portfolio of part time farmers, did not separate "consumer" at this point in loan origination reporting 6. What is the total volume of consumer portfolio services by your association? a. Volume serviced in-house nearly 100% b. Volume managed or sold to a third-party servicer 7. Does your association write consumer loans using Excess Authority or Excess Capacity? No If so, what lenders/investors does your association collaborate with?

5 AgChoice Farm Credit (Cont d) 8. What are your two top current challenges? Have had lots of change with staffing for our Home & Land lenders (retirements, new staff, etc.) which creates challenges and opportunities. In 2017, we introduced a new "non-patronage" product and pricing strategy to be more competitive in the market. So our top 2 current challenges are: 1.) Establishing farm credit as a front of mind option for prospects and network allies (brand awareness, competitive pricing); 2.) Delivering a "wow" customer experience (ease to customer, speed of delivery, etc.) which working within the consumer rules/regs 9. What process enhancements have you implemented and /or are in the process of implementing that you feel are/will be a game changer for your association s consumer program? We are working on a customer experience initiative to outline roadblocks/pain points from a customer point of view. A third party consultant is facilitating this project so we have a fresh, outside perspective that way we can overcome the current challenges rather than continue to "tweak" current processes. The project outcomes will include a mix of technology solutions and process enhancements that will significantly improve our customer experience.

6 1. What consumer products does your association offer? (Examples: Construction Loans, Lot Loans, Mortgage Insurance, Home Equity Loans, Rec Ag Loans, etc.) Purchase (including rec land) Refinance Construction (fixed up front) Home Equity 2. How many NMLS registered loan officers does your association employ? 40 (only 6 are considered home loan officers) 3. How many full-time, consumer support personnel does your association employ? (List by job function examples: processing, quality review, credit, closing, servicing) 1- Lending Services Manager-Consumer 3- Consumer Lending Specialists 4. Briefly describe the structure of your association s consumer program. Loans are originated through Encompass by the loan officer. Disclosures prepared by the consumer lending specialists. Loan officer gathers financials and underwrites through Moody's, Netscore or Encompass. Appraisals ordered in house or through Mercury. Closings occur at attorney's office or title company. All loans remain in house. a. Are any of your association s processes centralized? If so, describe: (Examples: Underwriting, Disclosures, Doc Prep, etc.) Disclosures, Doc Prep 5. What is the total volume of consumer loans your association originated in: 2017 $22,382, $27,627, What is the total volume of consumer portfolio services by your association? a. Volume serviced in-house All- $250 million b. Volume managed or sold to a third-party servicer N/A 7. Does your association write consumer loans using Excess Authority or Excess Capacity? No If so, what lenders/investors does your association collaborate with? 8. What are your two top current challenges? Rate/Downpayment Pulling processes together in order to effectively grow the consumer/home loan program into the rest of our territory. Pre-merger AgCountry did not offer home loans.

7 AgCountry Farm Credit Services (Cont d) 9. What process enhancements have you implemented and /or are in the process of implementing that you feel are/will be a game changer for your association s consumer program? We began using Encompass in November Electronic disclosures and electronic exchange of documents has sped up the loan process.

8 1. What consumer products does your association offer? (Examples: Construction Loans, Lot Loans, Mortgage Insurance, Home Equity Loans, Rec Ag Loans, etc.) Purchase, Refi, Home Improvement, Lot loans, Construction loans, Home Equity 2. How many NMLS registered loan officers does your association employ? How many full-time, consumer support personnel does your association employ? (List by job function examples: processing, quality review, credit, closing, servicing) 2 processors, 1 Underwriter, 2 Servicing/Closing 4. Briefly describe the structure of your association s consumer program. Myself- Residential Lending Supervisor, 7 originators, 2 processors, 1 underwriter, 2 servicing/closing. We close mostly portfolio loans. The Residential Lending (RL)dept. primarily works with Non/limited farmer borrowers and holds those loans in that branch. Residential loans to Ag/Farmer borrowers are housed in/approved by the ag branches. The RL team handles the compliance/disclosure of those loans. a. Are any of your association s processes centralized? If so, describe: (Examples: Underwriting, Disclosures, Doc Prep, etc.) Mostly just processing. Two of the 7 LO's have centralized doc prep 5. What is the total volume of consumer loans your association originated in: ,874, ,296, What is the total volume of consumer portfolio services by your association? a. Volume serviced in-house $1.9 Million b. Volume managed or sold to a third-party servicer 0 7. Does your association write consumer loans using Excess Authority or Excess Capacity? If so, what lenders/investors does your association collaborate with? Limited. Sell to Amerisbank and Homeowners Mortgage Enterprises.

9 AgCREDIT (Cont d) 8. What are your two top current challenges? -Competing with local lenders, especially with some of the limitations we have (i.e. Rural Properties, dwelling value limitations, etc.) -Getting management's support which in turn encourages the support of all employees in our organization. Many Ag customers still don't realize we make residential loans. 9. What process enhancements have you implemented and /or are in the process of implementing that you feel are/will be a game changer for your association s consumer program? Nothing major. We did implement a more complete Clear to Close process which we feel has eliminated issues that were showing up later in audits, etc. The biggest problem had been with loans approved and closed by our Ag loan officers. We pulled in our Residential team to review the closing file to catch things they are not as accustomed to thinking about.

10 1. What consumer products does your association offer? (Examples: Construction Loans, Lot Loans, Mortgage Insurance, Home Equity Loans, Rec Ag Loans, etc.) AgFirst's Correspondent Lending unit offers fixed and adjustable rate first lien consumer mortgage products meeting Fannie Mae or Farmer Mac documentation guidelines. These programs include purchase money, refinance and construction-to-permanent loans. In addition to products we provide processing, underwriting and closing services for all mortgage loans told to AgFirst. 2. How many NMLS registered loan officers does your association employ? Since AgFirst is the purchaser of the loans we do not have NMLS registered originators. 3. How many full-time, consumer support personnel does your association employ? (List by job function examples: processing, quality review, credit, closing, servicing) The unit is supported by 40 staff members to perform secondary markets, processing, underwriting, closing, auditing, quality control, compliance and servicing functions. 4. Briefly describe the structure of your association s consumer program. All loans purchased by AgFirst are originated in the name of the Association. Associations have the flexibility to user their own processors and closing staff or can take advantage of AgFirst's for fee services. a. Are any of your association s processes centralized? If so, describe: (Examples: Underwriting, Disclosures, Doc Prep, etc.) All of AgFirst's processes and services are located in Columbia, SC. 5. What is the total volume of consumer loans your association originated in: ,410 loans for $558.6 million ,323 loans for $528.4 million 6. What is the total volume of consumer portfolio services by your association? a. Volume serviced in-house None b. Volume managed or sold to a third-party servicer 18,636 loans for $3.155 billion as of 3/31/18 7. Does your association write consumer loans using Excess Authority or Excess Capacity? No

11 AgFirst Farm Credit Bank (Cont d) If so, what lenders/investors does your association collaborate with? None 8. What are your two top current challenges? As a purchaser of mortgage loans the increased competition within the marketplace is continual challenge that has a direct effect on profit margins. Additionally, continual operational efficiency enhancements within the secondary markets and compliance and their impacts on third party vendors, such as Loan Origination Systems, is a continual challenge. 9. What process enhancements have you implemented and /or are in the process of implementing that you feel are/will be a game changer for your association s consumer program? We are currently reviewing all of our third party vendor relationships in an effort to shorten cycle times, reduce costs and improve competitiveness to our partners.

12 1. What consumer products does your association offer? (Examples: Construction Loans, Lot Loans, Mortgage Insurance, Home Equity Loans, Rec Ag Loans, etc.) Construction to Permanent (1x close), purchase and refinance of conventional and government (FHA, VA, USDA) properties 2. How many NMLS registered loan officers does your association employ? How many full-time, consumer support personnel does your association employ? (List by job function examples: processing, quality review, credit, closing, servicing) 7 (including originator and processing managers) 4. Briefly describe the structure of your association s consumer program. in house origination of all loans with in house processing and closing on eligible files. Investors process and close ineligible files. a. Are any of your association s processes centralized? If so, describe: (Examples: Underwriting, Disclosures, Doc Prep, etc.) processing/closing on loans closing in association name (eligible) 5. What is the total volume of consumer loans your association originated in: ,676, ,168, What is the total volume of consumer portfolio services by your association? a. Volume serviced in-house none b. Volume managed or sold to a third-party servicer all 7. Does your association write consumer loans using Excess Authority or Excess Capacity? If so, what lenders/investors does your association collaborate with? Lender Select, Homeowners (Towne) Mortgage, Crescent 8. What are your two top current challenges? 1. need for docusign capability/approval on eligible files - technology 2. consistent marketing (in person) by Loan Officers

13 AgSouth Farm Credit (Cont d) 9. What process enhancements have you implemented and /or are in the process of implementing that you feel are/will be a game changer for your association s consumer program? Investors closing ineligible loans on their paper handle our disclosures (and redisclosures) via docusign, so that is increasing efficiencies vastly on those brokered loans. Also cuts down on any compliance issues with regard to timeline of delivery/receipt and errors on change of circumstance, etc.

14 1. What consumer products does your association offer? (Examples: Construction Loans, Lot Loans, Mortgage Insurance, Home Equity Loans, Rec Ag Loans, etc.) Interim Construction, Purchase, Refinance, Home Site/Lot Loans 2. How many NMLS registered loan officers does your association employ? About a dozen - we still have some ag lenders who have an NMLS ID. 3. How many full-time, consumer support personnel does your association employ? (List by job function examples: processing, quality review, credit, closing, servicing) 0 4. Briefly describe the structure of your association s consumer program. The majority of our loan officers are able to make both business and consumer loans. We have one dedicated MLO who originates SMM loans. a. Are any of your association s processes centralized? If so, describe: (Examples: Underwriting, Disclosures, Doc Prep, etc.) Underwriting, Disclosures, Doc Prep, Servicing 5. What is the total volume of consumer loans your association originated in: 2017 Approx $5M 2016 Approx $2M 6. What is the total volume of consumer portfolio services by your association? a. Volume serviced in-house Approx $12M b. Volume managed or sold to a third-party servicer Does your association write consumer loans using Excess Authority or Excess Capacity? If so, what lenders/investors does your association collaborate with? Crescent & Franklin American 8. What are your two top current challenges? 1. Market awareness 2. Regulatory compliance

15 AgTexas Farm Credit Services (Cont d) 9. What process enhancements have you implemented and /or are in the process of implementing that you feel are/will be a game changer for your association s consumer program? We still believe our SMM program is a game-changer long term.

16 1. What consumer products does your association offer? (Examples: Construction Loans, Lot Loans, Mortgage Insurance, Home Equity Loans, Rec Ag Loans, etc.) Construction loan, lot loans, long term home loans. 2. How many NMLS registered loan officers does your association employ? All RM's are registered, CCO, CEO, and VP Loan Ops. 3. How many full-time, consumer support personnel does your association employ? (List by job function examples: processing, quality review, credit, closing, servicing) None 4. Briefly describe the structure of your association s consumer program. The loan officer gathers all the informaiton to start the processes. The Credit analyst works the credit up, the loan processor quotes the Reg Z pricing, and works up the documents. The Reg Z pricing has to be approved by the CCO. The Loan officers closes the loan. a. Are any of your association s processes centralized? No If so, describe: (Examples: Underwriting, Disclosures, Doc Prep, etc.) Disclosures and doc prep are completed by loan processors, which our loan processors are in the branches but the one that is in our branch does not work on our loans. 5. What is the total volume of consumer loans your association originated in: What is the total volume of consumer portfolio services by your association? a. Volume serviced in-house All serviced in-house b. Volume managed or sold to a third-party servicer N/A 7. Does your association write consumer loans using Excess Authority or Excess Capacity? No If so, what lenders/investors does your association collaborate with? I dont know the answer to this question

17 Alabama Ag Credit (Cont d) 8. What are your two top current challenges? Loan officer can not quote rate off the cuff. It has to be requested from loan processor which makes the process a lot longer and customer to potenially go somewhere else. Younger customers are wanting a faster turn around. It also makes the loan officer look liek they don't know what they are talking about. Second challenging thing is the spread on some of the terms is so low that we cant do the low. The customer might ask for a 20/20 and we can't do it because the spread is too low and the CCO won't approve it. So then we have to have the difficult conversation with the customer why we can't do it and try to talk them into some other term, they didn't want in the first place. 9. What process enhancements have you implemented and /or are in the process of implementing that you feel are/will be a game changer for your association s consumer program? IMD Staff Training; Specialized Loan Closers; Doc Review

18 1. What consumer products does your association offer? (Examples: Construction Loans, Lot Loans, Mortgage Insurance, Home Equity Loans, Rec Ag Loans, etc.) Purchase, Refinance, Lending for Other Needs, Construction and Homesite tracts. 2. How many NMLS registered loan officers does your association employ? 163 (not all active) 3. How many full-time, consumer support personnel does your association employ? (List by job function examples: processing, quality review, credit, closing, servicing) Sales:7 Administrative: 5 Originators: 8 Underwriters: 3 Processing/Closing: 6 Legal/Compliance: 3 Management: 4 4. Briefly describe the structure of your association s consumer program. We utilize a combined structure with responsibilities in the field office as well as centralized consumer product underwriting and processing a. Are any of your association s processes centralized? If so, describe: (Examples: Underwriting, Disclosures, Doc Prep, etc.) Loan Origination, Credit Underwriting, Disclosure, and Processing (Volume and Servicing is Regional and performed in field offices). 5. What is the total volume of consumer loans your association originated in: Million Million 6. What is the total volume of consumer portfolio services by your association? a. Volume serviced in-house 100% b. Volume managed or sold to a third-party servicer None 7. Does your association write consumer loans using Excess Authority or Excess Capacity? If so, what lenders/investors does your association collaborate with? N/A

19 Capital Farm Credit (Cont d) 8. What are your two top current challenges? Appraisals (Timeliness/ Third-Party--Outside Issues) and our current Loan Origination System is comprised of multiple vendor solutions. 9. What process enhancements have you implemented and /or are in the process of implementing that you feel are/will be a game changer for your association s consumer program? Conversion to Encompass Loan Origination platform.

20 1. What consumer products does your association offer? (Examples: Construction Loans, Lot Loans, Mortgage Insurance, Home Equity Loans, Rec Ag Loans, etc.) Home Purchase/Refi, Home Equity, HELOC, Bare Land sites, Recreational Property, Construction and Consumer Purpose with bare land. 2. How many NMLS registered loan officers does your association employ? 25 loans officers plus 9 Lending Administrators - Leadership = How many full-time, consumer support personnel does your association employ? (List by job function examples: processing, quality review, credit, closing, servicing) Credit - 10; Closing - 8; Quality Review - 6; Servicing - 5; Processing - 7; System Analysis - 1; Leadership - 4; 41 total 4. Briefly describe the structure of your association s consumer program. We're an independent unit within Compeer Financial. The credit and closing teams report through leadership outside of our program. All others are within our Org. Chart. a. Are any of your association s processes centralized? If so, describe: (Examples: Underwriting, Disclosures, Doc Prep, etc.) Credit, processing, servicing and quality review are all virtually centralized. 5. What is the total volume of consumer loans your association originated in: 2017 $250,990, $259,236, What is the total volume of consumer portfolio services by your association? a. Volume serviced in-house $1.074 billion b. Volume managed or sold to a third-party servicer $564 million 7. Does your association write consumer loans using Excess Authority or Excess Capacity? If so, what lenders/investors does your association collaborate with? MB Financial. 8. What are your two top current challenges? 1. Balancing credit/compliance risk with production. 2. Merger hangover, trying to align with the rest of the organization

21 Compeer Financial (Cont d) 9. What process enhancements have you implemented and /or are in the process of implementing that you feel are/will be a game changer for your association s consumer program? The merger allowed us to restructure and have more of the support teams within the consumer loan leadership ring. This has allowed for quicker decisions, increased employee satisfaction and faster turnaround times.

22 1. What consumer products does your association offer? (Examples: Construction Loans, Lot Loans, Mortgage Insurance, Home Equity Loans, Rec Ag Loans, etc.) Niche is homes with excess (unlimited) acres and/or outbuildings. Single closing fixed rate construction to perm loans. Land loans with unlimited acres and for home lot loans. We also offer secondary market loans through AgFirst. 2. How many NMLS registered loan officers does your association employ? How many full-time, consumer support personnel does your association employ? (List by job function examples: processing, quality review, credit, closing, servicing) 6 loan processors, 4 loan closers and 1.5 underwriters. 4. Briefly describe the structure of your association s consumer program. 15 loan originators located in our branch offices funnel loans to underwriters, then to our 6 processors located centrally who hand to the four closers also located centrally. These are divided into two regional teams. The team is specialized as we only originate consumer/ consumer like mortgages with all servicing occurring in branches. All originations are booked to local branch creating positive teamwork between our staff and branches as we count toward their goals. a. Are any of your association s processes centralized? If so, describe: (Examples: Underwriting, Disclosures, Doc Prep, etc.) All consumer mortgage processes are centralized except the originators. All processors, underwriters and closers are in central locations and are specialized in consumer mortgages. 5. What is the total volume of consumer loans your association originated in: 2017 $152MM 2016 $121MM 6. What is the total volume of consumer portfolio services by your association? a. Volume serviced in-house $$720MM b. Volume managed or sold to a third-party servicer $3MM sold in Does your association write consumer loans using Excess Authority or Excess Capacity? No If so, what lenders/investors does your association collaborate with?

23 Farm Credit East (Cont d) 8. What are your two top current challenges? Timeliness is the biggest challenge. Specialized appraisals and title seem to be the culprits and we are currently testing both AVM and AMC products to alleviate some of that. Second is overall program efficiency. We have layered in several major regulatory changes while continuing to grow at a double digit pace. We are challenging the entire loan process to remove unnecessary steps and all duplication. 9. What process enhancements have you implemented and /or are in the process of implementing that you feel are/will be a game changer for your association s consumer program? While not cutting edge we recently moved to greater specialization by splitting what was a processor role that saw a loan from conditional approval through doc prep and closing to two distinct roles of loan processor and loan closer. Main drivers are efficiency as well as ramp-up time for new hires as we can now focus on more exact training needs.

24 1. What consumer products does your association offer? (Examples: Construction Loans, Lot Loans, Mortgage Insurance, Home Equity Loans, Rec Ag Loans, etc.) Construction Lot Loans Rec Ag Home Equity Home Refi/Purchase 2. How many NMLS registered loan officers does your association employ? How many full-time, consumer support personnel does your association employ? (List by job function examples: processing, quality review, credit, closing, servicing) Consumer Operations - 60 (Processors, Closers and Servicing) Credit Analysts - 20 Consumer Credit Operations - (Credit Processors) Briefly describe the structure of your association s consumer program. We employ a mobile sales force of 85 Consumer Loan Officers and transitioning to a centralized support team with Consumer Operations. Consumer Lending is a specialized business segment with 6 regional leaders and 1 Senior VP. We are working with partners to utilize our CL business model in other associations. a. Are any of your association s processes centralized? If so, describe: (Examples: Underwriting, Disclosures, Doc Prep, etc.) Underwriting Disclosures Processing Closing Servicing 5. What is the total volume of consumer loans your association originated in: 2017 $550M What is the total volume of consumer portfolio services by your association? a. Volume serviced in-house $5.8B b. Volume managed or sold to a third-party servicer N/A 7. Does your association write consumer loans using Excess Authority or Excess Capacity? No If so, what lenders/investors does your association collaborate with? 8. What are your two top current challenges? Regulatory Changes Conventional Competitors playing in the Non Conforming Niche

25 Farm Credit Mid-America (Cont d) 9. What process enhancements have you implemented and /or are in the process of implementing that you feel are/will be a game changer for your association s consumer program? cl.logic is a custom built home loan origination system that aligns technology with our people/processes.

26 1. What consumer products does your association offer? (Examples: Construction Loans, Lot Loans, Mortgage Insurance, Home Equity Loans, Rec Ag Loans, etc.) Construction Loans, Lot Loans, Secondary Market loans 2. How many NMLS registered loan officers does your association employ? 5 3. How many full-time, consumer support personnel does your association employ? (List by job function examples: processing, quality review, credit, closing, servicing) Processing Manager - 1, Processing Briefly describe the structure of your association s consumer program. I just started in this position and am still in the process of figuring that out. One of my first projects is to work on streamlining the process as much as possible. As it is right now, the LO takes the application, gathers some initial documents from the borrower and it gets assigned to a processor. It is also simultaneously submitted for underwriting. The processor takes the file from there and sends the initial disclosures, gathers documentation to clear any conditions, generates the closing documents and postcloses the file. a. Are any of your association s processes centralized? If so, describe: (Examples: Underwriting, Disclosures, Doc Prep, etc.) The entire process is centralized, from disclosures and underwriting to doc prep. 5. What is the total volume of consumer loans your association originated in: 2017 $13.8 M - this doesn't include lot loans 2016 $15 M - this doesn't include lot loans 6. What is the total volume of consumer portfolio services by your association? a. Volume serviced in-house I do not have this information b. Volume managed or sold to a third-party servicer I do not have this information 7. Does your association write consumer loans using Excess Authority or Excess Capacity? If so, what lenders/investors does your association collaborate with? Crescent Mortgage

27 Farm Credit of Central Florida (Cont d) 8. What are your two top current challenges? Getting support staff hired and trained and researching methods to help streamline our processes. 9. What process enhancements have you implemented and /or are in the process of implementing that you feel are/will be a game changer for your association s consumer program? We are currently in the middle of rolling out AgVue to our association. Once it is up and running it will cut down on duplicate data entry, reduce errors and help to speed up the process.

28 1. What consumer products does your association offer? (Examples: Construction Loans, Lot Loans, Mortgage Insurance, Home Equity Loans, Rec Ag Loans, etc.) Lot Loans and Rec Ag Loans. Typically unimproved real estate. 2. How many NMLS registered loan officers does your association employ? Three. Looking for a Fourth 3. How many full-time, consumer support personnel does your association employ? (List by job function examples: processing, quality review, credit, closing, servicing) One. Processor. 4. Briefly describe the structure of your association s consumer program. Fee Based with a partnered alliance with Compeer Financial a. Are any of your association s processes centralized? If so, describe: (Examples: Underwriting, Disclosures, Doc Prep, etc.) We rely on Compeer for operational support for underwriting, disclosures and doc prep. We centralized the origination portion from our Colorado Springs Branch office 5. What is the total volume of consumer loans your association originated in: ,500, zero 6. What is the total volume of consumer portfolio services by your association? a. Volume serviced in-house zero b. Volume managed or sold to a third-party servicer zero 7. Does your association write consumer loans using Excess Authority or Excess Capacity? No If so, what lenders/investors does your association collaborate with? 8. What are your two top current challenges? 1.) Dedicated resources to the program. Our two active loan officers also originate core loan business so its difficult to be focused to the program. You need to be dedicated. We will get there. 2.) Appraisals. Limited pool to select.

29 Farm Credit of Southern Colorado (Cont d) 9. What process enhancements have you implemented and /or are in the process of implementing that you feel are/will be a game changer for your association s consumer program? Training additional processors and hire a mortgage lender.

30 (Farm Credit of the Virginias, ACA) 1. What consumer products does your association offer? (Examples: Construction Loans, Lot Loans, Mortgage Insurance, Home Equity Loans, Rec Ag Loans, etc.) SMM - Purchase - Refinance - Construction - Construction to perm - FHA - VA - USDA Portfolio - Purchase - Refinance - 12 month construction - lot loans - other 2. How many NMLS registered loan officers does your association employ? How many full-time, consumer support personnel does your association employ? (List by job function examples: processing, quality review, credit, closing, servicing) we do not have consumer loans in portfolio centralized to one unit; hard to quantify on that side. estimate would be 6 in support. SMM - processing = 6 and dual role Loan Officers = Briefly describe the structure of your association s consumer program. Our SMM department has 10 dual role ( both portfolio & SMM ) loan officers selling the products. once they complete the application the loan is processed & sent through u/w by our SMM Processing team which has the manager and 5 processors a. Are any of your association s processes centralized? If so, describe: (Examples: Underwriting, Disclosures, Doc Prep, etc.) SMM - Processing Portfolio - Processing - Booking - Verification ( Underwriting is centralized on larger credit) 5. What is the total volume of consumer loans your association originated in: 2017 $165 million 2016 $170 million 6. What is the total volume of consumer portfolio services by your association? a. Volume serviced in-house Not available at this time b. Volume managed or sold to a third-party servicer $30 million annually 7. Does your association write consumer loans using Excess Authority or Excess Capacity? If so, what lenders/investors does your association collaborate with? SMM - AGFIRST - FIRST BANK

31 Farm Credit of the Virginias (Cont d) 8. What are your two top current challenges? Retirements - finding qualified staff Portfolio - technology that adequately addresses compliance workflows and documentation 9. What process enhancements have you implemented and /or are in the process of implementing that you feel are/will be a game changer for your association s consumer program? Cross Training Consumer product sheet - Portfolio Using CRM workflows to monitor key compliance tickless

32 1. What consumer products does your association offer? (Examples: Construction Loans, Lot Loans, Mortgage Insurance, Home Equity Loans, Rec Ag Loans, etc.) Construction (1x close) Purchase Refinance (Cash out/no cash out) Other consumer needs Homesite (Lot Loan) Bridge (short-term - 1 yr loan) Mortgage Insurance (implemented in Q1-2018) All portfolio no SMM options today 2. How many NMLS registered loan officers does your association employ? 32 Officers / 29 Specialists 3. How many full-time, consumer support personnel does your association employ? (List by job function examples: processing, quality review, credit, closing, servicing) Retail: 29 Consumer Lending Specialists (noted as licensed above) - support the Consumer Lending Officer in gathering information and closing functions including closing the loans with the customer and post close servicing. Centralized: Consumer Lend 4. Briefly describe the structure of your association s consumer program. Our Consumer Lending Program is independent from our Ag Lending Programs; however is part of our Retail Lending Division. The product is supported by a consumer-based origination system, centralized processing and underwriting as well as it's own pricing & fee structure. Specialized consumer lending sales and pre/post-close support roles are part of our broader Retail delivery structure that includes consumer, ag and crop insurance products. They are led by Regional Vice Presidents and VP of Retail Operations who also lead the sales/support for our ag products. Centralized processing is led by the VP of Consumer Lending who also provides broad, organizational leadership of the product. The credit analysts, financial specialists and loan accounting specialists are specialized in consumer lending, however are part centralized credit and loan accounting teams that also work with the ag accounts. The compliance officers fall under Risk Management. a. Are any of your association s processes centralized? If so, describe: (Examples: Underwriting, Disclosures, Doc Prep, etc.) See question 3 & 4 above for details. 5. What is the total volume of consumer loans your association originated in: 2017 $245,956, $276,026, What is the total volume of consumer portfolio services by your association? a. Volume serviced in-house $1.5B b. Volume managed or sold to a third-party servicer $0

33 Farm Credit Services of America/Frontier Farm Credit (Cont d) 7. Does your association write consumer loans using Excess Authority or Excess Capacity? No If so, what lenders/investors does your association collaborate with? n/a 8. What are your two top current challenges? 1. Adjusting an "in-house/portfolio" only product to compete with a changing customer base (shift from full-time producers to more part-time and rural residents). Down-turn in the ag economy still has less full-time producers buying/building homes and niche of non-conforming lending has diminished due to an increase in competition from balance sheet lenders and larger acreages, that had been nonconforming in the past, are now qualifying for SMM lending. 2.Identifying and implementing sales and marketing strategies that support the evolution of customers. 9. What process enhancements have you implemented and /or are in the process of implementing that you feel are/will be a game changer for your association s consumer program? 1. Currently piloting a system that will support electronic processing and tracking of construction loans. 2. Utilizing loan origination system to expand use of e-disclosure and potentially e-sign in areas it's available.

34 1. What consumer products does your association offer? (Examples: Construction Loans, Lot Loans, Mortgage Insurance, Home Equity Loans, Rec Ag Loans, etc.) Construction Loans, Lot Loans and Recreation Loans. 2. How many NMLS registered loan officers does your association employ? 38 - *29 Loan Officers *8 "Super" Financial Services Specialist (FSS-2) *1 Regional Field Service Officer 3. How many full-time, consumer support personnel does your association employ? (List by job function examples: processing, quality review, credit, closing, servicing) Loan Document Specialist - 6 Compliance Officer - 1 Loan Officer, Specific to Home Loans - 1 (services only one branch) All Loan officers and FSS-2 are qualified to make home loans. 4. Briefly describe the structure of your association s consumer program. Our consumer loans are approved with proper authority levels through the NetScore System. The system verification is backed up with basic underwriting techniques of verifying ATR, VOE and confirming PITI and TMO be compatible or in accordance with the association required ratios. It is also required to follow the association guidelines for Certified Appraisals on the property and requiring Title Insurance insuring first lien position of the financed tract. a. Are any of your association s processes centralized? If so, describe: (Examples: Underwriting, Disclosures, Doc Prep, etc.) Credit Analyst and Loan Document Specialist 5. What is the total volume of consumer loans your association originated in: 2017 $227,634, $207,982, What is the total volume of consumer portfolio services by your association? a. Volume serviced in-house 100% b. Volume managed or sold to a third-party servicer N/A 7. Does your association write consumer loans using Excess Authority or Excess Capacity? No If so, what lenders/investors does your association collaborate with?

35 Farm Credit of Western Arkansas (Cont d) 8. What are your two top current challenges? Our top two challenges are with secondary market lenders and local credit unions. With an increasing interest rate environment for the customer that doesn't mind the secondary market style of lending they will definitely take that direction. Credit Unions do not appear to be as limited as they once were and now offer fixed rates which become very competitive. 9. What process enhancements have you implemented and /or are in the process of implementing that you feel are/will be a game changer for your association s consumer program? With the implementation of the new job duties for the FSS creating the FSS-2 or Super FSS position this allows 8 additional current employees to now have authority for strictly consumer lending purposes. The idea behind this new process is to free up the current loan officer of the branch allowing them more time to return to the field and dedicating the work to stay inner office. Also with the conversion of CentRic right around the corner it is hopeful this new system will allow work to be completed in a more timely and efficient manner.

36 1. What consumer products does your association offer? (Examples: Construction Loans, Lot Loans, Mortgage Insurance, Home Equity Loans, Rec Ag Loans, etc.) Lot & Land Loans, Recreational Land Loans We currently partner with Compeer for all home loans 2. How many NMLS registered loan officers does your association employ? 15-Lenders, Branch Managers, Sr Relationship Officers 3. How many full-time, consumer support personnel does your association employ? (List by job function examples: processing, quality review, credit, closing, servicing) 3 for mortgage processing 15 between all branches, no one specifically dedicated to only consumer support 4. Briefly describe the structure of your association s consumer program. We have recently partnered with Compeer to handle all of our consumer mortgage loans; rural living loans, full time farmer home loans, and rural home loans. a. Are any of your association s processes centralized? If so, describe: (Examples: Underwriting, Disclosures, Doc Prep, etc.) Servicing is currently in process of being centralized. Mortgage processing/loan doc prep is centralized as well. 5. What is the total volume of consumer loans your association originated in: 2017 $2,631, $1,759, What is the total volume of consumer portfolio services by your association? a. Volume serviced in-house $17,025,990 b. Volume managed or sold to a third-party servicer $0 7. Does your association write consumer loans using Excess Authority or Excess Capacity? No If so, what lenders/investors does your association collaborate with? n/a 8. What are your two top current challenges? Being in Compliance with TRID disclosures. Market awareness of our products to our non-farming community.

37 Farm Credit Southeast Missouri (Cont d) 9. What process enhancements have you implemented and /or are in the process of implementing that you feel are/will be a game changer for your association s consumer program? Our partnership with Compeer in regards to compliance issues with disclosures and more competitive rates offered.

38 1. What consumer products does your association offer? (Examples: Construction Loans, Lot Loans, Mortgage Insurance, Home Equity Loans, Rec Ag Loans, etc.) Home loans Construction loans Lot loans Recreational land loans Bare land consumer loans (divorce settlement, college expenses, etc.) 2. How many NMLS registered loan officers does your association employ? How many full-time, consumer support personnel does your association employ? (List by job function examples: processing, quality review, credit, closing, servicing) Zero support positions fully dedicated to consumer loans. 4. Briefly describe the structure of your association s consumer program. Our consumer program is not currently segregated from our normal structure. Our loan officers and support staff that service our agricultural loans also originate and service our consumer loans. a. Are any of your association s processes centralized? If so, describe: (Examples: Underwriting, Disclosures, Doc Prep, etc.) All real estate consumer disclosures and loan documents are prepared centrally. RE scorecard underwriting is centralized Traditional underwriting reports centrally but is geographically disbursed. 5. What is the total volume of consumer loans your association originated in: 2017 $40MM 2016 $42MM 6. What is the total volume of consumer portfolio services by your association? a. Volume serviced in-house $227MM b. Volume managed or sold to a third-party servicer $0 7. Does your association write consumer loans using Excess Authority or Excess Capacity? No If so, what lenders/investors does your association collaborate with? NA

39 FCS Financial (Cont d) 8. What are your two top current challenges? Marketplace/Brand awareness Loan terms and pricing 9. What process enhancements have you implemented and /or are in the process of implementing that you feel are/will be a game changer for your association s consumer program? Currently exploring adding a SMM product.

40 1. What consumer products does your association offer? (Examples: Construction Loans, Lot Loans, Mortgage Insurance, Home Equity Loans, Rec Ag Loans, etc.) 1. Lot 2. Construction 3. Primary Residence 4. Secondary Residence 5. Secondary Market (Fannie Mae qualifying) 2. How many NMLS registered loan officers does your association employ? Approximately 70 NMLS loan officers out of 220 total employees. All located in branch offices throughout AL, MS & LA. First South has a large territory consisting of 45 branch offices, one processing center, three division offices and one corporate office 3. How many full-time, consumer support personnel does your association employ? (List by job function examples: processing, quality review, credit, closing, servicing) To be explained later. 4. Briefly describe the structure of your association s consumer program. As of March 2018, First South implemented a Point of Sale system via the association website to originate residential mortgage loans for sale in the secondary market. Prior to March all consumer loans were originated by traditional Ag Loan Officers and maintained in the association's portfolio. To date the Residential Mortgage department consists of 3 First South employees. All processing, underwriting, and closing services have been outsourced to AgFirst FCB our funding bank and secondary market investor. a. Are any of your association s processes centralized? No If so, describe: (Examples: Underwriting, Disclosures, Doc Prep, etc.) 5. What is the total volume of consumer loans your association originated in: Million Million 6. What is the total volume of consumer portfolio services by your association? a. Volume serviced in-house 100% b. Volume managed or sold to a third-party servicer 0% 7. Does your association write consumer loans using Excess Authority or Excess Capacity? No

41 First South Farm Credit (Cont d) If so, what lenders/investors does your association collaborate with? As of now the answer is no, however once we have our residential mortgage department more established we will expand into using excess capacity lenders. 8. What are your two top current challenges? 1. Marketing 2. Identifying Key Markets 9. What process enhancements have you implemented and /or are in the process of implementing that you feel are/will be a game changer for your association s consumer program?

42 1. What consumer products does your association offer? (Examples: Construction Loans, Lot Loans, Mortgage Insurance, Home Equity Loans, Rec Ag Loans, etc.) Construction Loans, contracted and do it yourself, lot loans, vacant land loans, farm real estate loans, Mortgage Insurance, real estate purchase/refinance. 2. How many NMLS registered loan officers does your association employ? 84 NMLS loan officers - 25 of which are consumer loan officers 3. How many full-time, consumer support personnel does your association employ? (List by job function examples: processing, quality review, credit, closing, servicing) About Briefly describe the structure of your association s consumer program. We have loan officers out in our branch locations that market and bring in the business. They also put their loan requests together. From there if the request is 250,000 or less we send it though an automated system. If it is greater than 250,000 we submit it to our centralized credit team for their review and approval. Each loan officer has a customer support team member that assists the loan officer in the processing of the loan requests. a. Are any of your association s processes centralized? If so, describe: (Examples: Underwriting, Disclosures, Doc Prep, etc.) Credit/Underwriting is our only centralized process 5. What is the total volume of consumer loans your association originated in: million million 6. What is the total volume of consumer portfolio services by your association? a. Volume serviced in-house 1,365,668,921 b. Volume managed or sold to a third-party servicer 0 7. Does your association write consumer loans using Excess Authority or Excess Capacity? No If so, what lenders/investors does your association collaborate with?

43 GreenStone Farm Credit Services (Cont d) 8. What are your two top current challenges? 1. Market Growth 2. Eligibility/Moderately Priced Limits 9. What process enhancements have you implemented and /or are in the process of implementing that you feel are/will be a game changer for your association s consumer program? 1. Special studies to increase our FAMC values (new construction: cost per sq. foot study)

44 1. What consumer products does your association offer? (Examples: Construction Loans, Lot Loans, Mortgage Insurance, Home Equity Loans, Rec Ag Loans, etc.) Construction, Lot, Rec. Ag loans, Rural Home and Secondary (SMM) Loans 2. How many NMLS registered loan officers does your association employ? Approximately How many full-time, consumer support personnel does your association employ? (List by job function examples: processing, quality review, credit, closing, servicing) All numbers are approximate and some positions may work on non-consumer as well. Sales - 16 Processing - 10 Closers Briefly describe the structure of your association s consumer program. We have a centralized portfolio consumer group that processes and disclosures our consumer loans and a centralized secondary departments that specializes in Fannie Mae lending a. Are any of your association s processes centralized? If so, describe: (Examples: Underwriting, Disclosures, Doc Prep, etc.) Consumer processing department 5. What is the total volume of consumer loans your association originated in: 2017 SMM - 68 Million / Portfolio Million 2016 SMM - 72 Million / Portfolio Million 6. What is the total volume of consumer portfolio services by your association? a. Volume serviced in-house All portfolio loans b. Volume managed or sold to a third-party servicer All SMM loans 7. Does your association write consumer loans using Excess Authority or Excess Capacity? If so, what lenders/investors does your association collaborate with? Towne Mortgage 8. What are your two top current challenges? Technology - no streamlined process for e-delivery and e-sign. Compliance - Keeping up with the changing environment and interpreting the gray areas of the rules.

45 MidAtlantic Farm Credit (Cont d) 9. What process enhancements have you implemented and /or are in the process of implementing that you feel are/will be a game changer for your association s consumer program? Online application and portal through BytePro Enhanced construction project

46 1. What consumer products does your association offer? (Examples: Construction Loans, Lot Loans, Mortgage Insurance, Home Equity Loans, Rec Ag Loans, etc.) Construction Loans, Rural Homesite Loans, Primary Dwelling Loans, and Recreational Ag Loans. 2. How many NMLS registered loan officers does your association employ? How many full-time, consumer support personnel does your association employ? (List by job function examples: processing, quality review, credit, closing, servicing) Processing- 3 Quality Review- 2 Credit- 13 Closing/Servicing- 13 We do not have just a consumer staff only. The above workers have additional responsibility. We are a small bank and have 39 staff members for our entire Association. We have around $ Briefly describe the structure of your association s consumer program. Our Loan Officers make both agricultural loans and consumer loans. Matt Walden is our Chief Compliance Officer and heads up our Consumer Loan Program with the help of Stephanie Wilkie and Melissa Dunn. a. Are any of your association s processes centralized? No If so, describe: (Examples: Underwriting, Disclosures, Doc Prep, etc.) Each branch handles our own processing, underwriting, closing, etc. We have an administrative team that reviews the consumer loans and also can answer questions if we have them in the local branch. 5. What is the total volume of consumer loans your association originated in: 2017 $5,000, $4,500, What is the total volume of consumer portfolio services by your association? a. Volume serviced in-house $5,000,000 b. Volume managed or sold to a third-party servicer 7. Does your association write consumer loans using Excess Authority or Excess Capacity? No If so, what lenders/investors does your association collaborate with?

47 Mississippi Land Bank (Cont d) 8. What are your two top current challenges? 1. Dealing with all the extra paperwork and pre-disclosures that are involved in a consumer loan that are very time consuming to us as the lender. 2. Trying to get competitive from an interest rate prospective when competing with home mortgage companies. Typically, our interest rates are higher than a home mortgage company. 9. What process enhancements have you implemented and /or are in the process of implementing that you feel are/will be a game changer for your association s consumer program? I think the Farm Credit Bank of Texas is working on getting out a better system to assist us with consumer loans that could lessen some of the work load we currently have with consumer loans. Our Association makes very few consumer loans but we see consumer loans as an area of growth for our Association. The majority of what we do is land, equipment, and crop/cattle loans. The reason I am taking this class is to expand my knowledge of consumer loans to hopefully help our Association grow our number of consumer loans and our volume of consumer loans.

48 1. What consumer products does your association offer? (Examples: Construction Loans, Lot Loans, Mortgage Insurance, Home Equity Loans, Rec Ag Loans, etc.) Purchase and refinance residential loans, home construction loans, lot loans, consumer purpose loans using agricultural collateral 2. How many NMLS registered loan officers does your association employ? How many full-time, consumer support personnel does your association employ? (List by job function examples: processing, quality review, credit, closing, servicing) 16 Field Processors, 5 Operations (doc prep), 5 Central Servicing, 3 compliance, 2 underwriters, 4 Administrative/supervisory Staff 4. Briefly describe the structure of your association s consumer program. Field staff reports thru state lending divisions, Operations and Central Servicing report through association operations group, 2 VP administrators directly report to EVP Lending & Insurance, Underwriter Supervisor reports through Risk Management, Compliance reports through legal department a. Are any of your association s processes centralized? If so, describe: (Examples: Underwriting, Disclosures, Doc Prep, etc.) Centralized disclosure from initial LE through CD also Doc prep by Operations team, Underwriting for manual approvals, automated scorecard is delegated to field staff 5. What is the total volume of consumer loans your association originated in: 2017 $ Million 2016 $ Million 6. What is the total volume of consumer portfolio services by your association? a. Volume serviced in-house $ Million b. Volume managed or sold to a third-party servicer none 7. Does your association write consumer loans using Excess Authority or Excess Capacity? No If so, what lenders/investors does your association collaborate with? n/a

49 Northwest Farm Credit Services (Cont d) 8. What are your two top current challenges? Adoption of less acreage restrictive home loan programs by regional banks Utilization of competitive Farmer Mac loan programs by mortgage brokers & community banks 9. What process enhancements have you implemented and /or are in the process of implementing that you feel are/will be a game changer for your association s consumer program? Centralized disclosures to standardize, resulting is significant reduction in costs to cure In process of implementing utilization of residential loan origination platform for all consumer purpose real estate transactions.

50 1. What consumer products does your association offer? (Examples: Construction Loans, Lot Loans, Mortgage Insurance, Home Equity Loans, Rec Ag Loans, etc.) Construction Loans (two time close) Purchase Refinance Home Equity (all secured by real property) 2. How many NMLS registered loan officers does your association employ? How many full-time, consumer support personnel does your association employ? (List by job function examples: processing, quality review, credit, closing, servicing) VP Compliance-ensures regulatory compliance, writes procedures and administers training programs Compliance Assistant-loan processing, closing and servicing Consumer Loan Specialist: assists with regulatory compliance and processes consumer loans Consu 4. Briefly describe the structure of your association s consumer program. We are centralized with the exception of the credit work. The Loan Officers market the program and send our department all applications. We process the application and have the Loan Officer complete the credit work. We then work through the closing process. a. Are any of your association s processes centralized? If so, describe: (Examples: Underwriting, Disclosures, Doc Prep, etc.) All with the exception of credit 5. What is the total volume of consumer loans your association originated in: million million 6. What is the total volume of consumer portfolio services by your association? a. Volume serviced in-house 16 million b. Volume managed or sold to a third-party servicer 7. Does your association write consumer loans using Excess Authority or Excess Capacity? No If so, what lenders/investors does your association collaborate with?

51 Oklahoma AgCredit (Cont d) 8. What are your two top current challenges? We are challenged by the fact that we do not sell to the secondary market, which makes us not as competitive. We are also fairly new, so we are still working on streamlining our processes. 9. What process enhancements have you implemented and /or are in the process of implementing that you feel are/will be a game changer for your association s consumer program? We are working on making our rates and fees more competitive. We have also centralized the majority of the process, leaving less room for errors.

52 1. What consumer products does your association offer? (Examples: Construction Loans, Lot Loans, Mortgage Insurance, Home Equity Loans, Rec Ag Loans, etc.) Construction Loans, Home loans, Home Equity Loans 2. How many NMLS registered loan officers does your association employ? 4 3. How many full-time, consumer support personnel does your association employ? (List by job function examples: processing, quality review, credit, closing, servicing) 5 4. Briefly describe the structure of your association s consumer program. Our consumer program is completely centralized and separate from our commercial lending program. a. Are any of your association s processes centralized? If so, describe: (Examples: Underwriting, Disclosures, Doc Prep, etc.) All of our consumer lending processes are centralized. 5. What is the total volume of consumer loans your association originated in: 2017 $52 Million 2016 $39 Million 6. What is the total volume of consumer portfolio services by your association? a. Volume serviced in-house $50 Million currently in our portfolio b. Volume managed or sold to a third-party servicer about $20-30 Million per year 7. Does your association write consumer loans using Excess Authority or Excess Capacity? If so, what lenders/investors does your association collaborate with? AgFirst, Compeer, Crescent 8. What are your two top current challenges? Finding loan originators that fit our culture in the areas we need to service.