UPDATE JULY 11, 2014

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1 TOPIC PAGE Sales Contract Contingencies... 1 Reminders... 2 Financial Reform (Dodd-Frank Act): Nationstar Correspondent Information and Documentation Requirements... 2 Water Catchment Systems in the State of Hawaii... 2 Final Documents... 3 Tax Information Worksheet Form Freddie Mac s Loan Prospector (LP) Enhancements... 4 Questions... 4 Sales Contract Contingencies Effective immediately, the Loan File Submission and Delivery section of the Correspondent Seller s Guide has been updated to include requirements for the review of purchase sales contracts to ensure all contingencies have been satisfied. To confirm that the loan meets current Agency requirements, Nationstar Mortgage will validate that all of the sales contract contingencies have been met prior to loan purchase. All outstanding Contract Contingencies must be satisfied either by providing a satisfactory inspection report (e.g., pest, well, radon or foundation) -- regardless of whether the Appraiser indicates that no inspections are required -- or be removed using a Contract Addendum. Note: Required inspections are also dictated by the product, Appraiser and/or State/Municipality requirements. i.e., VA requires termite inspections in certain states, etc. Sales Contract Information All appropriate financing data and sales concessions for the subject property that will be or have been granted by anyone associated with the transaction must be disclosed to the appraiser. Typically, this information is provided in the sales contract. Therefore the lender must provide or ensure that the appraiser is provided with a copy of the complete ratified sales contract and all addenda for the property that is to be appraised. If the contract is amended, the lender must provide the updated contract to the appraiser to ensure that the appraiser has been given the opportunity to consider any changes and their affect on value. If the lender is aware of additional pertinent information that is not included in the sales contract, the lender must provide this information to the appraiser. Please refer to the specific product matrix and/or the new section of the guide (15PPP) for complete details. Seller Guide Update: Chapter 10 Conventional Underwriting, 10G - Liabilities and Debt Ratios; Chapter 15 Loan File Submission Delivery, (NEW) 15PPP Sales Contract Contingencies

2 Reminders Financial Reform (Dodd-Frank Act): Nationstar Correspondent Documentation Requirements As a part of the Financial Reform (Dodd-Frank Act), Nationstar requires the following documentation. Please note that this list is a partial list only and highlights those items in which we are seeing deficiencies in loan delivery. Correspondents are urged to review the Correspondent Seller Guide for complete documentation requirements. Requirements for Copies of Appraisals and Other Written Valuations under the Equal Credit Opportunity Act (Regulation B) Appraisal Acknowledgement Form (Signed) - Must be provided to the applicant at loan closing and must be present in the file prior to loan purchase. Right to Receive a Copy of Appraisals and Valuation Reports (Not required to be signed) Must be provided to applicants in writing within three business days of receiving an application and must be present in the file prior to loan purchase. Home Ownership and Equity Protection Act (HOEPA) Rule Homeownership Counseling Disclosure (Not required to be signed) - Must be provided to the applicant no later than three business days after receipt of an application and present in the file for loan purchase. Servicing Disclosure Statement (Not required to be signed) - Within three days, after a borrower applies for a first-lien mortgage loan, borrower shall be provided a Servicing Disclosure Statement that states whether the servicing of the mortgage loan may be assigned, sold, or transferred to any other person at any time. The document must be in file prior to laon purchase. Seller Guide Update: Chapter 15 Loan File Submission Delivery, 15UU Appraisal; 15KKK - Homeownership Counseling Rule (Reg X) Requirements; Forms and Exhibits, 21 - CFPB Summary Documentation Requirements Water Catchment Systems in the State of Hawaii As outlined in VA Circular , effective immediately, VA will process home loans for guaranty by participating VA lenders on properties with rainwater catchment systems as the source of domestic water. Please refer to the circular for complete guidelines, including clarification of its requirements concerning the acceptance of Water Catchment Systems in the State of Hawaii.

3 Final Documents We have recently seen a recent influx in the number of Final/Trailing documents being sent to the incorrect address. To ensure that there are no delays in the processing of documents, please ensure that all Final Documents are sent to the following address: Nationstar Mortgage Attn: Post Closing Correspondent 4000 Horizon Way Irving, Texas Utilizing the Nationstar Mortgage Final Document Transmittal Form (Form 18 in the Forms and Exhibits Section of the Correspondent Seller s Guide), Correspondents should provide the following final documents: Original (or a County Certified Copy) Recorded Security Instrument, Final Title Policy, Recorded Assignment(s), Mortgage Insurance Certificate (MIC) FHA, Loan Guaranty Certificate (LGC) for VA Loans, Loan Note Guarantee for Rural Development Guaranteed Rural Housing Loans (USDA). Note: Correspondents are also required to a copy of the completed Nationstar Mortgage Final Document Transmittal Form at the time of shipment to finaldocs@nationstarmail.com. Also, please do not include any final trailing documentation when delivering the closed loan. Seller Guide Update: Chapter 18, 17C - Final Document Delivery (Trailing Docs) Tax Information Worksheet Form 12 It is imperative that all fields on the Tax Information Worksheet (Form 12 of the Correspondent Guide) are completed to minimize risk of loan purchase delays, including: Taxing Authority Name Mailing Address of Tax Collector City, State and Zip Code Tax ID/Parcel Number Tax Paid Through Date Last Amount Paid Estimated Annual Tax Next Due Date Date Last Paid Frequency Click here to download the most recent version of the Tax Information Worksheet. Seller Guide Update: Forms and Exhibits, Form 12 Tax Information Worksheet

4 Freddie Mac s Loan Prospector (LP) Enhancements Freddie Mac is making functionality changes in LP to align with agency guideline requirements and help decrease data inconsistencies. These changes are part of a series of enhancements to improve system usability and help lenders originate higher quality loans. On June 22, 2014, Loan Prospector (LP) will be updated to: Provide actionable loan-specific underwriting feedback, with clear/concise guidance Reduce need for extra processes when entering data in LP to receive an assessment Highlight data inconsistencies, which could cause repurchase if the data is not corrected Updates will be made to the following categories: Category Change in LP Income Allow submission of income losses, such as from self-employed borrower or rental Losses loss. Remove the need to enter a borrower s losses under a different incomeproducing borrower. This change will help with accurate reporting of borrower income and improved borrower-specific income messaging from LP. No Cash-Out Align no cash-out feedback message to be returned based on the Guide requirement that allows nominal cash-out amount (lesser of $2,000 or 2 percent of the loan amount). If the cash-out amount is submitted to Loan Prospector for a no cashout refinance and the cash-out amount exceeds the amount allowed per the Guide, a feedback message will be returned to highlight the Guide requirement is not met. The change allows additional Guide-compliant loans to be assessed in Loan Prospector. Assets Allow submissions through Loan Prospector with no reported assets. For example, asset information was not provided on the loan application. This change allows the DTI and LTV Data Checks Financed Mortgage Insurance (MI) assets reported to Loan Prospector to be consistent with the loan application. Add checks to highlight inconsistencies in data that may impact the DTI and LTV ratio. This includes providing messaging if Homeowner s Associations dues are not provided for certain property scenarios and a message to report the monthly payment for subordinate financing when there is a balance. Receive a new feedback message for loans with financed MI to provide clarity regarding how the LTV is determined. Electronic Signature Nationstar Mortgage will accept electronically signed initial disclosures documents as well as internet application that are complete with an electronic signature. Seller represents and warrants that all Agency requirements and local, state, and federal legal requirements have been met, including, but not limited to, the Electronic Signatures in Global and National Commerce Act ("E-Sign") and the Uniform Electronic Transactions Act ("UETA"). Nationstar Mortgage will not accept electronically signed collateral (closing) loan documents at this time.

5 Questions Main Correspondent Lending Toll-Free Number: , then: Option 1 - Mandatory Option 2 - Operations o Sub-option 1 This option allows Correspondents to enter their 3-digit client number to be transferred to the appropriate new region-specific Correspondent Operations team. If you do not know your 3-digit client number, you will be prompted to please select from one of the following team sub-options: Sub Option Number/Name Address Account Executive(s) Colleen Flynn, Amy Hutchins, Sub-option 2 Team Arch corr.arch@nationstarmail.com Sub-option 3 Team Lone Star corr.lonestar@nationstarmail.com Option 3 Pre-Purchase Pricing Option 4 - Post-Purchase Reconciliation Thank you again for choosing Nationstar Correspondent. Dana Galiano, Mauricio Perez Jon Hodge, Page Woodall, Sara Ward, Tracy Whipple