Correspondent Policies and Procedures

Transcription

1 Correspondent Policies and Procedures SECTION A. DELIVERY AND FUNDING TIMELINE... 2 SECTION B. CORRESPONDENT RATE LOCK POLICY... 2 SECTION C. CORRESPONDENT LOAN DELIVERY... 3 SECTION D. NY CEMA LOAN TRANSACTION PROCEDURES SECTION E. FUNDING ANALYSIS/PURCHASE ADVICE SECTION F. MISCELLANEOUS FUNDING INFORMATION SECTION G. CONTACT INFORMATION APPENDIX A. CORRESPONDENT DELIVERY CHECKLIST Santander Bank, N.A. November 25, 2014

2 A. Delivery and Funding Timeline Original Closed loan file must be delivered within 5 calendar days of rate expiration or 10 days of closing, whichever occurs first. Files delivered for purchase will flow through a 48 hour standard review. Once a file has been reviewed for purchase, Santander Bank, N.A. will either a purchase advice to the Correspondent or notify the Correspondent of any errors or missing documentation. Conditions will be reviewed within 24 hours of receipt. B. Correspondent Rate Lock Policy Santander Bank, N.A. must receive a complete, closed loan file within 5 calendar days of the Lock Expiration Date as defined on Santander s daily rate sheet and Lock Confirmation. If the 5 th day falls on a weekend or Federal holiday, this delivery date is extended to the following business day. If the closed loan file is deficient in either underwriting, closing or delivery documentation, the loan will be placed in a suspense status. Santander will issue a Suspense Notification to the Correspondent outlining all deficiencies which will need to be corrected. The Suspense Notification will include a Cure Date, which will be the latter of 5 calendar days after the Suspense Notification Date or 5 calendar days after the original Lock Expiration Date. If the deficiencies are not cured by the Cure Date outlined in the Suspense Notification, the loan will be processed as a re-lock, which is defined below. RATE LOCK EXTENSIONS If a closed loan is unable to be delivered by the delivery expiration date, the Correspondent can contact Santander within 15 days prior to or on the delivery expiration date to request an extension. If borrower originally locked for 30 or 45days, a 15 day extension will be granted for.25pt, and a 30 day extension will be granted for.375pt. If the original lock period was for 60 (or 90) days, then the original pricing will be compared to the current 60 (or 90) day pricing. If current pricing is worse than the pricing at which the borrower originally locked, a 30 day extension from the rate lock expiration date will be granted and the cost will be the difference between the original pricing and current pricing, but never greater than.375 in price. If current pricing is better than or equal to the pricing at which borrower originally locked, a 30 day extension will be granted for no fee. If the 30 day extension is not sufficient and additional time is needed, another 30 days can be granted based on the above pricing scenarios, but at no time will a rate be extended for more than 60 days past the original lock expiration date. 2 Santander Bank, N.A. November 25, 2014

3 RE-LOCKS A closed loan that is not delivered on or before the delivery expiration date may relock within the first thirty days after the delivery expiration date for a total re-lock period of 30 days, including the delivery period. The new pricing will be the WORSE of the following: Original 60day pricing; OR Current 60day pricing If locked for 30days or 45days, the 30day relock will be based on the 60day pricing. PRODUCT CHANGE For loans that have been locked, Santander must be notified when a product change occurs. Pricing will be determined by Santander and will be subject to market conditions. The product change should be communicated to Santander as soon as possible and prior to the expiration date. CANCELLATIONS AND/OR CHANGES Correspondent is required to notify Santander of any changes to loan amount, LTV, or any other change of significance. Correspondent understands that changes to a loan may impact pricing. Santander will not purchase loans after second payment. C. Correspondent Loan Delivery Checklist This section will cover closing document submission requirements. The TPO delivers the closed and funded loan in Correspondent s name to Santander with all information itemized in the Correspondent Loan Delivery Checklist. Santander will review the closed loan file and will notify Correspondent of any errors and omissions (if applicable) prior to funding. The Loan Delivery Checklist required items are listed in detail below. A copy of the form is attached for reference, see Appendix A. The most recent version of the checklist is posted on the Forms and Disclosures webpage at 3 Santander Bank, N.A. November 25, 2014

4 C1.) Santander Loan Delivery Checklist Correspondent must complete the below information on the loan delivery checklist: Mortgagor(s) Property Address Closing Date Correspondent Company Name Contact Name, Phone#, Fax# & Address Closing Docs are to be hole-punched & fastened to a legal sized file folder in proper stacking order. C2.) Wire Instructions Correspondent closes loans in TPO name using either a warehouse line of credit or TPO funds. Correspondent must coordinate the delivery of Wiring Instructions & Original Note to be received on the same day that Santander Bank receives Correspondent s closing file. Please have Warehouse Bank send Wiring Instructions & Original Note to: Santander Bank One Aldwyn Lane Mail Code: WL0 Villanova, PA Attn: Correspondent Delivery Department 4 Santander Bank, N.A. November 25, 2014

5 C3.) Original Note with proper endorsement Note endorsement verbiage: Pay To The Order Of: SANTANDER BANK, N.A. WITHOUT RECOURSE Correspondent s Name BY: Name of Officer Title of Officer Sample Allonge: Name of Correspondent Address of Correspondent City, State, Zip Allonge to Note Borrower Name Borrower Name Property Address Date of Note: Note Amount: Pay To The Order Of: SANTANDER BANK, N.A. WITHOUT RECOURSE Name of Officer Title of Officer Please Note: Per Freddie Mac Bulletin , Note Endorsements via power of attorney are not permitted. 5 Santander Bank, N.A. November 25, 2014

6 C4.) Certified copy of Mortgage/Deed of Trust with applicable Riders Settlement Agent must ensure that the Security Instrument is signed dated and notarized the same date as the Note. Individual, Joint Tenants, or Tenants in Common are acceptable forms of ownership interest. Fee Simple ownership is required. Leaseholds, Trusts, Corporations, Partnerships and Life Estates are not acceptable vesting for any Santander loan product. Correspondent must send original Security Instrument for recording immediately after closing/disbursement. The subject property address on the legal description must be the same on Mortgage, Note and be consistent throughout closing package. If mistakes are found during Santander s post-closing review, it will be the Correspondent s responsibility to correct mistakes. Correspondent must re-record mortgage and provide a Letter of Intent to Re-Record on Correspondent s company letterhead (i.e. An Adjustable Rate Rider, 1-4 Family Rider, Condominium Rider, PUD Rider, Second Home Rider or legal description not being attached to Security Instrument). A Planned Unit Development Rider to the Security Instrument is mandatory where membership in a HOA is a requirement. The subject property is considered a PUD if the borrower has an automatic, non-severable interest in the Homeowners Association and is required to pay dues or assessments. Mortgage Electronic Registration System (MERS) Santander s MERS Org ID# is MERS cannot be named as the insured or loss payee on title and property insurance policies. By delivering the MIN, the Correspondent warrants that the mortgage is properly registered in MERS and names the Correspondent as the investor. Co-ops and CEMAs should not be registered in MERS. 6 Santander Bank, N.A. November 25, 2014

7 C5.) Power Of Attorney Policy Santander Bank accepts POA s specific to the subject real estate transaction. The use of a POA at closing is prohibited if no borrowers can attend closing. The only exception is if the attorney-in-fact/agent under the POA is the borrower s relative or attorney-in fact. POA s cannot be used if the transaction is a cash-out refinance. Santander Bank must review & approve a copy of the POA prior to the Clear to Close stage to confirm Investor compliance. Correspondent must provide a CIP Certification Form with Photo ID for absentee borrower. Form must be executed when POA is executed. A Santander approved, fully executed POA must be recorded prior to recording Security Instrument. C6.) Copy of Closing Instructions Closing Instructions must be specific to the transaction Correspondent s Specific Loan Closing Instructions must be included in the delivery package. Instructions must be signed by Closing Agent and Borrower(s) certifying that the loan closed in accordance with instructions. Closing Instructions must include the following information: Closing agent s name and contact information Borrower s name, subject property address and loan information (loan#, loan amount, closing date, funding date, & interest date) Escrows/Impounds and Per Diem Interest Title Requirements Underwriting and Closing Conditions. 7 Santander Bank, N.A. November 25, 2014

8 C7.) Initial Escrow Account Disclosure Statement The Reserves Deposited with Lender on the HUD-1 Settlement Statement must match the Initial Deposit on the Initial Escrow Account Disclosure Statement. Santander requires a two-month cushion for impounds. The two-month cushion is also known as the Cushion selected by servicer. The Escrow Account Balance cannot fall below the two-month cushion on the Initial Escrow Account Disclosure Statement. Santander Bank does not require a cushion for Mortgage Insurance escrows. C8.) Tax Information Sheet Tax Information Sheet must be certified by settlement agent or must provide tax certification. The settlement agent must provide the following information on the Tax Info Sheet: Date loan closed Borrower(s) name Property Address Type of Tax Current Taxes Paid Thru Date Payment Frequency: Annual, Semi-annual, Quarterly, Tri-annual Tax Authority Name & Address Last Amount Paid Next Due Date Parcel/Property ID/TMS # C9.) HUD-1 Settlement Statement A fully executed original HUD-1 Settlement Statement is required. If original cannot be provided, Settlement Agent must stamp & sign final HUD-1 as a Certified True Copy. Taxes due within 60 days of closing must be collected and paid at settlement. During the post-closing review process, Santander will compare the fees and terms on the Final GFE to the fees and terms on Page 3 (the comparison tables) of the Final HUD-1. The terms of the loan contained in the Summary of your loan section of the Final GFE and the Loan Terms section of the HUD-1 must match. 8 Santander Bank, N.A. November 25, 2014

9 Correspondent may cure a tolerance violation by reimbursing the Borrower. The cure must equal the amount by which the tolerance was exceeded. Reimbursement must be paid at settlement or within 30 calendar days from settlement date. If cure is paid at settlement, cure must be located between lines of HUD-1. If refund is not reflected on HUD-1 please provide the following documentation: A revised HUD-1 showing the correction date along with settlement agent certifying page 1 of document. A copy of the refund check to borrower Letter to borrower(s) addressing cure violation ATR/QM Loans Effective for loans with RESPA application dates on and after January 10, 2014, Santander will require a complete itemization of all points and fees as well as affiliated business relationship information with each initial loan submission. It is necessary for creditors to capture and retain this information in order to document QM eligibility. Santander will review this information when calculating total points/fees for Qualified Mortgage and High Cost Loan determinations. As previously announced, all loans originated for delivery to Santander must fit the Qualified Mortgage definition unless originated for a loan product or category that is specified by Santander as Non-QM eligible. C10.) Notice of Right of Rescission A person who has an ownership interest in the subject property and uses the property as their principal dwelling has a right to rescind. Document isn t required for investment properties, purchases or second homes C11.) Mortgage Insurance See Santander product descriptions for coverage requirements. Mortgage Insurance must be from Santander eligible provider. Santander requires declining coverage mortgage insurance. The Mortgage Insurance Certificate with declining coverage, evidence of MI remittance, Amortization Schedule and Mortgage Insurance Disclosure must be included in closing delivery package. The only exception to declining coverage is the transfer of existing mortgage insurance coverage on eligible HARP refinances. 9 Santander Bank, N.A. November 25, 2014

10 C12.) Title Commitment/Policy The Marked-up Title Commitment/ Final Title Policy must reflect an updated effective date; Schedule A should correctly reflect the proposed insured (Correspondent s name) and names of people that title is vested in; insured amount must equal loan amount. Any and all liens, assessments or encumbrances must be satisfied and released. The Marked-up Title Commitment/ Final Title Policy must list any subordinate liens and state that they are subordinate to Correspondent s loan. It s the Correspondent s responsibility to obtain a subordination agreement, if needed. The Closing Protection Letter must be included with title work. For all New York loans Errors & Omissions and Fidelity Bond Insurance for closing attorney is required. Original survey to be provided, if applicable. C13.) Hazard Insurance Policy A Hazard Insurance Policy with sufficient coverage must be provided prior to Santander issuing a Clear to Close. Name of Insured must be the same as on the security instrument. Subject Property Address must agree with title, appraisal, and security instrument. A maximum deductible of up to 5% of the face amount of the policy is allowed. The effective date of the policy must be no later than the date of loan closing. The policy term must be for a minimum of 12 months. The binder term must be for 30 days from the closing date. A policy must be issued from the insurance provider and received by Santander Bank prior to binder expiration date. A paid receipt stating that the premium has been paid-in full must accompany all policies (purchase and refinance transactions). C13b.) Condominium Insurance Requirements Replacement- For individual condominium units, the master or blanket insurance policy maintained by the association must cover all of the general and limited common elements that are normally included in coverage. HO6- If the unit interior improvements are not included under the terms of master policy, the borrower is required to have an HO-6 policy for all units in 10 Santander Bank, N.A. November 25, 2014

11 Attached Condominium Projects (Including 2-4 Unit Projects), with coverage as determined by the insurer, sufficient to repair the condo unit to its condition prior to a loss claim event. If a condo project is covered by a master or blanket insurance policy that combines insurance coverage for multiple condo projects or other residential projects that are unaffiliated with one another an acceptable insurance policy including all schedules, endorsements, statements of value, or other associated documents must be provided prior to settlement. Fidelity Bond - Required for all units in Attached Condominium Projects (more than 20 units), Liability - Coverage min. $1 million. Declaration page must show policy dates. Maximum deductible 5% of the face amount of the policy. C14.) Flood Insurance Coverage Amounts: 1-4 unit properties Amount of flood insurance must at least be, but is not limited to, the lowest of: The outstanding principal balance of the loan(s); or The maximum amount of coverage available under the NFIP currently $250,000 (for a community that participate in the Emergency Program, the maximum amount of coverage is $35,000); or 100% Replacement Cost Value (RCV), however, the insurance limits need not exceed the maximum amount of insurance currently sold under the NFIP for the type of improvements insured. The deductible may not exceed $5,000, which is the maximum amount currently available under the NFIP. Condominiums Amount of flood insurance must be at minimum the lowest of, but may not exceed: The outstanding principal balance of the loan(s); or The replacement cost value (RCV) of the unit; or The maximum amount of coverage available under the NFIP, currently $250,000 per unit To find the RCV look on the declaration page of the insurance policy (effective 2007, the declaration page must disclose the RCV and number of units). If the RCV is not found on any document in the file, contact the condo association or insurance carrier. If the condo association does not maintain the required amount of flood coverage, the borrower will have to take out an individual flood policy to make up the difference. The Residential Condominium Building Association Policy (RCBAP) is the policy for condo associations to insure residential condo buildings. This policy covers the 11 Santander Bank, N.A. November 25, 2014

12 common and individually owned building elements within the units, improvements within the units, and contents owned in common if that coverage is purchased. The maximum amount of coverage that can be purchased under a RCBAP is the lesser of: 100% of the building s RCV; or The total number of units in the condo building times $250,000 Co-Op Projects The co-op corporation must have flood insurance coverage for each building that is located an SFHA. The policy must cover the building and any common elements and property (including machinery and equipment) that are owned in common by the shareholders of the co-op corporation. The lower 100% replacement cost or the maximum coverage available under the applicable NFIP must be maintained. The applicable NFIP coverage as of 6/1/14 is $500,000 per individual standing building. Please note maximum deductible for a Co-Op flood policy is $25,000. Confirmation of flood Zone The flood determination zone issued by Santander must be reflected on all corresponding flood polices. If Correspondent wishes to dispute determined flood zone please refer to section below. Evaluating Flood Zone Discrepancies An evaluation of flood zone discrepancy should be performed if the variation in the flood determination and the flood insurance policy is between a high-risk zone (A or V) and a low- or moderate-risk zone (B, C, D, or X). If the flood insurance policy shows a lower risk zone than the flood determination: 1) Determine if the NFIP s Grandfather Rule applies. The rule allows policyholders the continued use of a rating on an insured property when the initial flood insurance policy was issued prior to changes in the hazard rating for the particular flood zone where the property is located. Only applies to policyholders who have maintained continuous coverage and/or who have built in compliance with the Flood Insurance Rate Map. Discrepancy is permissible but the findings must be substantiated and noted. 2) Determine whether there is a mistake. Communicate with the third-party service provider that performed the flood determination. If there is a mistake, request that they recheck its determination. If there still appears to be a discrepancy, borrower may directly contact FEMA and request a Letter of Map Change (LOMC). Please note Santander will not accept any policies reflecting a zone not matching Santander s flood cert. 12 Santander Bank, N.A. November 25, 2014

13 Resolving Disputes: If there is a flood zone dispute provided by Borrower or TPO regarding flood insurance requirement, it must be researched by our flood insurance vendor. The vendor must be provided a plat map or survey with property location and a copy of the appraisal. All flood insurance policies must show proof of payment with a receipt. C15.) Mortgagee Change Letter for Hazard and Flood Insurance A Mortgagee Change Letter is required if Santander Bank isn t listed as Mortgagee/Certificate Holder on Hazard or Flood Policy. If the subject Property is a Condo and doesn t have walls-in coverage, 2 Mortgagee Change Letters are required; Santander Bank as Certificate Holder for unit # on Master Policy and Santander Bank as Mortgagee on HO-6 Policy. Mortgagee Change Letter Mortgagee Clause should read: Santander Bank, NA ISAOA ATIMA P.O. Box 628 Amelia, OH C16.) Notice of Assignment, Sale or Transfer of Servicing Rights Aka Good-bye letter or Loan Servicing Transfer Letter to borrower. New Servicer information should read: Santander Bank, N.A., P. O. Box 12649, Mail Code MP4, Reading, PA Customer Service: (800) C17.) Outstanding At Closing conditions Correspondent must deliver Closing Conditions with closing Closing Conditions are found on Santander Bank s Wholesale Underwriting Disposition Form. C17a.) First Payment Letter The first payment letter must be executed by the borrower(s) and document: Loan number Borrower s name and address 13 Santander Bank, N.A. November 25, 2014

14 First payment due date Breakdown of payment amount, indicating the amount of payment being applied to principal, interest, taxes and hazard insurance. To whom payment is made payable with address C18.) Original Final 1003 Final typed application form 1003 must be signed and dated by borrower(s). Joint applicants must sign top of page 1 of Final Any discrepancies between Initial and Final 1003 will be conditioned by a Santander Bank Post-Closer for clarification. GOVERNMENT MONITORING INFORMATION (GMI) Pursuant to compliance with fair housing laws, Equal Credit Opportunity Act (ECOA), and the Home Mortgage Disclosure Act (HMDA), all Correspondents are required to collect and publicly disclose information about housing related loans; including several characteristics about the applicant s race, ethnicity and sex. The GMI data must be completed by the Correspondent Interviewer on the Uniform Residential Loan Application, example below: 14 Santander Bank, N.A. November 25, 2014

15 C19). Know Your Customer Questionnaire U.S. Anti-Money Laundering Regulations (AML) requires that banks capture specific consumer information at account opening. Santander Bank, N.A. must ensure that all Residential Mortgage applications taken are in compliance with AML regulations. The Bank is required to: Gather certain information to mitigate the AML risk with each customer type Create a profile of the customer s expected transactional behavior Monitor customer s expected transactional behavior against actual behavior Assign a risk classification to the customer type Effective for all Files Received on and after January 1, 2013, the enclosed Know Your Customer Questionnaire must be fully-completed for each loan applicant and submitted to Santander with all loan files. Your company can either use the Santander form found on the website to record the requested applicant information or create a TPO-specific form with the same data. C20.) Truth-in-Lending (TIL) Disclosure forms The closed loan file must contain: Original Final Reg Z TIL (must include PMI if applicable) Itemization of amount financed Variable Rate/ARM disclosure All applicable loan program disclosures C20a.) Itemization of Amount Financed Document MUST itemize the fees from the HUD-1 that were included in the APR calculation of the Final Truth-in-Lending Disclosure. Correspondents are required to itemize fees paid by a 3rd party (I.e., seller, lender, etc.) C20b.) ARM Disclosures ARM Disclosures must also be signed at closing. Correspondent MUST be listed as Lender on disclosure. ARM Disclosures can be found on our website C21.) Name Affidavit(s) An original notarized Name Affidavit must list each variation to borrower s name in file. Borrower s name & signature MUST be uniform on Note and Security Instrument. 15 Santander Bank, N.A. November 25, 2014

16 C22.) CIP Certification Policy Customer Identification Program Correspondents are required to confirm the identity of each borrower whose credit is used for the purpose of determining ability to meet underwriting and eligibility standards prior to the extension of credit. Santander s requirements for borrower identity verification are intended to align with lenders existing federal obligations under laws requiring information and document verification, including the Department of Treasury s Office of Foreign Assets Control (OFAC) regulations and the U.S. Patriot Act. Settlement agent must fully-execute a Customer Identification Verification Form at closing. C23.) Legible Photo ID Required Valid (unexpired) government-issued photo ID for all borrowers must be included in Correspondent s closed loan package. C24.) W-9 form Original W9 forms must be executed at closing and provided in the closed loan package. C25.) IRS form 4506T IRS form 4506-T is required to be completed and signed at the time of application and at the time of closing, regardless of income source or documentation level. C26). Original Mineral Rights Disclosure except on condominiums and co-ops. Santander Bank, N.A. policy prohibits real estate lending where the collateral is used or intended to be used (i.e., possible future use) for the harvesting, storage or transportation of fossil fuels. The closed loan file must contain evidence that the borrower(s) have been made aware of this policy by providing a signed acknowledgement. The following verbiage should be in your acknowledgement form/disclosure: 16 Santander Bank, N.A. November 25, 2014

17 Prohibition of Leasing MINERAL, OIL AND GAS RIGHTS The lender does not accept loans secured by properties that are subject to an existing lease, assignment or transfer of fossil fuel rights, such as mineral, oil or gas rights. In addition, the borrower is prohibited from leasing, assigning or transferring such rights throughout the life of the loan. By signing below, the borrower(s) hereby acknowledge and agree with this policy. Santander will require a signed disclosure prior to loan purchase. This applies to loans originated for delivery to Santander in all states and for all property types except condominiums and co-ops. C27). Fannie Mae and Freddie Mac UCDP submission summary reports The Uniform Data Portal (UCDP) is an agency website that lenders must utilize to electronically submit appraisal reports on Agency conventional loan transactions. The following Santander Bank Agency loan products require appraisals to be submitted to the UCDP: Fixed Rate Agency Conforming Agency ARM Agency High Balance Fannie Mae DU Refi Plus Freddie Mac Relief Refi Open Access Santander requires appraisal date to be submitted to Both Fannie Mae and Freddie Mac via the UCDP on all Agency loan transactions. Closed loan files must contain a copy of the Submission Status Report (SSR) with the doc file ID from both Agencies to be eligible for purchase. C28.) Miscellaneous Documentation Correspondent must deliver entire closing package. Miscellaneous closing documents include Compliance Agreement, Occupancy Statement, Servicing Disclosure, Borrower s Certification and Authorization, and Appraisal Acknowledgement Form D. Correspondent Lending Compliance Santander Bank s Wholesale Lending Correspondent Agreement states that as a business partner, compliance with all applicable federal and state laws, rules and regulations are required. It is the Correspondent s responsibility to ensure full compliance with all applicable laws. 17 Santander Bank, N.A. November 25, 2014

18 With time sensitive disclosures, the application date is essential to ensuring a Correspondent loan is in full compliance. Below is Santander Bank s interpretation of an application date under RESPA. RESPA Reform Application Date Collecting the following information in anticipation of making a credit decision constitutes the receipt of an application under RESPA: Applicant s name Applicant s Social Security Number Applicant s Gross Monthly Income Property Address House price or estimate of the property s value Mortgage Loan Amount sought Any additional information as required to complete the 1003 Once this information is collected, Correspondent is required to deliver a GFE within 3 business days. The delivery of the GFE cannot be contingent upon the Correspondent receiving additional verification information. Santander s Wholesale Team will use the Correspondent Interviewer s Signature date as the loan application date for RESPA compliance. Santander Bank requires the initial 1003 to be signed and dated by all borrowers and loan interviewer. The Bank will audit for compliance and cannot accept new loan files without a clearly defined application date. E. New York Consolidation, Extension, & Modification (CEMA) Agreement Procedures Correspondent is responsible for identifying eligible CEMA refinance transactions at the time of loan submission. Correspondent must clearly indicate loan is a CEMA when registering loan in SantanderWebMortgage. 18 Santander Bank, N.A. November 25, 2014

19 Prior to closing requirements: Correspondent must provide payoff statement for current mortgage. Correspondent must provide letter from closing attorney advising the amount of New Mortgage Money and amount of New York State Mortgage Tax If present lender is Santander Bank, the Santander underwriter will request the original note and mortgage from the loan servicing department If present lender is not Santander Bank, correspondent must contact current lender to obtain original note and mortgage. Lost note affidavits are not acceptable Required documentation for delivery: New York Consolidation, Extension and Modification (NYCEMA) Form 3172, dated 1/01 (rev. 5/01) or most current version. Consolidated Note Exhibit A (Listing of all Notes & Mortgages being consolidated, extended and modified. Exhibit B (Property Description) Exhibit C (Copy of the Consolidated Note) Exhibit D (Copy of the Consolidated Mortgage) The following documents must be originals, signed by the Borrowers: Original (Money) Note(s) Consolidated Note Gap (New Money Note), if applicable Exhibit designations must appear at the top, center of each respective document. Correspondents are not to use MERS Security Instruments for NY CEMA Transactions. If a MERS Security Instrument is used, Correspondent must assign loan out of MERS to Santander Bank. Co-Ops The closing attorney is required to generate the below documents for signing at the time of closing: Aztec Recognition Agreement, Authorization to File Financing Statement UCC-1 Stock Power Assignment of Proprietary Lease and Affidavit of No Further Encumbrances 19 Santander Bank, N.A. November 25, 2014

20 The closing attorney is required to return the below documents with the closing package: Copy of UCC-1, Original Stock Power, Original Proprietary Lease, Original Assignment of Proprietary Lease, Original Aztec Recognition Agreement and Original Affidavit of No Further Encumbrances Lien search and continuations required for the cooperative unit, and must be reviewed by Closing Attorney. The lien searches and continuations must show that Santander will obtain a first lien position on the cooperative unit stock shares, with no outstanding taxes or Mechanics Liens. E-Signatures Santander Bank is now accepting electronically-signed, pre-closing documents as part of the loan files presented by Correspondent for purchase by Santander Bank. The borrower(s) were informed, prior to electronically-signing any documents, of their rights to receive non-electronic versions and/or to withdraw their consent at a later date. The applicant received an e-sign disclosure that complies with the federal E- Sign Act, and that the applicant accepted the e-sign disclosure and thereby agreed to receive disclosures electronically The disclosures were actually provided to the applicant in an electronic manner; and That the applicant received the disclosures and, when a signature is required by a regulation to acknowledge receipt of the disclosure, that the applicant electronically acknowledged receipt of the disclosure. The indication of the electronic signature and date is clearly visible when viewed electronically and in a paper copy of each and every electronicallysigned document. Each electronic signature is individually e-signed by each borrower in a separate action. Each borrower s identity is confirmed by authentication data from an independent data source. Evidence is maintained that the electronic signature may be attributed to the individual it represents Only pre-closing documents and disclosures are electronically-signed in a loan files submitted for purchase by Santander Bank. 20 Santander Bank, N.A. November 25, 2014

21 F. Funding Analysis / Purchase Advice Commitment Fee = $400 Underwriting Fee Tax Service Fee $400 Flood Certification Fee The $400 Commitment fee will be reflected on Correspondent s purchase advice. This is a separate fee to Correspondent at time of loan purchase. A $400 Commitment fee should not appear on HUD-1 Settlement Statement. Santander Bank s Wholesale Correspondent Purchase Advice SANTANDER BANK ABC Mortgage Services Wholesale Division Purchase of Loans Servicing Released WAREHOUSE PURCHASE LOANS XYZ Bank By Wire Transfer On MAY 18, 2011 ABA #: 04607**** ACCT #: *** Total Wire Amount $716, Settlement Date 11-May-11 Funding Date 18-May-11 Interest Pd. Thru Date 01-Jun-11 Servicing Effective Date 01-Jul-11 Santander Acct. # Borrower Correspondent, Joe Principal Balance $712, Interest Rate 5.250% Interest Due (I+) ($1,455.44) Interest Per Deim $ Initial Esc. ($2,811.34) Buydown Fees: $0.00 Discount Fees: $0.00 Penalty fees: $0.00 Premium Fees: $8, Tax Service Fee $0.00 Flood Certification Fee $0.00 Commitment Fee ($400.00) Loan Prospector Fee $0.00 Remaining Term 360 purchase price % monies due purchaser ($4,666.78) total to be funded $716, funding difference $0.00 Total Wire = Principal Balance +/- Interest Due Initial Escrow Deposit +/- Premium/Discount Commitment Fee 21 Santander Bank, N.A. November 25, 2014

22 G. Miscellaneous Funding Information Assignment, Title & Closing Protection Letter: Santander Bank, NA ISAOA ATIMA 824 North Market Street, Suite 100 Wilmington, DE Mortgagee Clause for Insurance Policy & Billing: (Homeowners, Cert. of Ins., HO6, & Flood): Santander Bank, NA ISAOA ATIMA P.O. Box 628 Amelia, OH Mail tax and insurance bills to: Santander Bank, NA Mail Code: TX5 P.O. Box Reading, PA Attention: Mortgage Escrow Monthly Payment Remittances: Santander Bank, NA Mail Code: MP4 P.O. Box Reading, PA Overnight Payment Remittances: Santander Bank, NA Mail Code: MP2 450 Penn Street Reading, PA Phone: Final (recorded) Documentation Submission: Santander Bank, NA Mail Code: CA2 450 Penn Street Reading, PA Santander Bank, N.A. November 25, 2014

23 H. Contact Information Correspondent Funding Department One Aldwyn Lane Mail Code: WL0 Villanova, PA Attn: Correspondent Delivery Department Phone: Wholesale Mortgage Customer Service Hotline Phone: or Loan Servicing Department Customer Service Phone: Santander Bank, N.A. November 25, 2014

24 Appendix A: Villanova, PA Wholesale Headquarters One Aldwyn Lane Mail Code, WLO Villanova, PA Phone: Fax: CORRESPONDENT LOAN DELIVERY CHECKLIST PROVIDE THE FOLLOWING INFORMATION WITH YOUR ORIGINAL CLOSED LOAN PACKAGE: Mortgagor(s): Loan #: Property Address: Closing Date: Correspondent Company Name Contact Name Phone#: Fax: Contact s Address: Loans are to be hole punched and fastened to a legal sized file folder in the following order REQUIRED DOCUMENTS: 1. Santander Loan Delivery Checklist w/above section full completed 2. Wire Instructions 3. Original Note w/proper endorsement to Santander Bank, N.A. or original Allonge 4. Certified copy of Mortgage/Deed of Trust w/ applicable riders 5. Certified copy of Power of Attorney, if applicable (MUST BE APPROVED PRIOR TO CLOSING) 6. Copy of Closing Instructions signed by Closing Agent 7. Original Initial Escrow Account Disclosure Statements (Santander requires a twomonth cushion) or Escrow Waiver 8. Original Tax information sheet certified by Settlement agent. Taxes due w/in 60 days of closing must be collected & paid at settlement. 9. Original HUD-1 Settlement Sheet 10. Original Notice of Right of Rescission, if applicable 11. Original Mortgage Insurance (MI) Certificate & evidence of MI remittance, if applicable, Mortgage Insurance Disclosure & Amortization Schedule 12. Marked Up Title Commitment and/or Binder w/ Closing Protection letter (for all NY loans E&O & Fidelity Bond for closing attorney required); & if applicable, the original survey 13. Original Hazard Insurance Policy Dec page w/paid receipt. If condo, original Certificate of Insurance showing borrower(s) and unit number. 24 Santander Bank, N.A. November 25, 2014

25 14. Flood Certificate; Flood Insurance Policy w/paid receipt, if applicable 15. Copy of Mortgagee Change Letter for Hazard; Flood Insurance, if applicable 16. Original Notice of Assignment, Sale or Transfer of Servicing Rights Letter to borrower(s). 17. Executed original First Payment Letter to borrower(s). 18. Original and FINAL Know Your Customer Questionnaire ( if not previously submitted) 20. Original FINAL Reg Z TIL (must include PMI, if applicable); Itemization of Amount Financed; Variable Rate/ARM Disclosure (if applicable); and all applicable loan program disclosures. 21. Original Name Affidavit(s) 22. Original Fully-executed Customer Identification Verification Form at closing. 23. LEGIBLE PHOTO ID REQUIRED. Valid (unexpired) government-issued Photo ID for borrower(s). (Used to complete USA Patriot Act Disclosures) 24. Original W-9 Forms 25. Original IRS form #4506T is required to be signed by all borrower(s) at origination AND at closing. 26. Original Mineral Rights Disclosure except on condominiums and co-ops. 27. Fannie Mae & Freddie Mac UCDP submission summary reports ( if not provided in the credit package) 28. Miscellaneous documentation. 25 Santander Bank, N.A. November 25, 2014