Third-Party Processing Policy

Transcription

1 Third-Party Processing Policy Statement of Purpose Stockton Mortgage recognizes a broker may use the mortgage loan processing services of thirdparty processing companies or third-party processors. This policy stipulates Stockton s requirements for third-party companies or processors and third-party processing fees. It also addresses broker requirements to obtain Stockton s approval for a broker who intends to submit loans processed by third-party companies or processors. All requirements of this policy must be met to exclude the third-party processing fee from the Qualified Mortgage points and fees test. Third-Party Processing Company Requirements A third-party processing company must meet the requirements listed below. The processing company is not affiliated with the Broker in any manner. The processing company is registered to do business in a subject property state. If required by the state where a subject property is located, the processing company must hold that state s appropriate mortgage-related license to perform processing services and must be registered with the Nationwide Mortgage Licensing System (NMLS). If the state where a subject property is located does not require the processing company to be registered and licensed, only the individual contract processor must be properly registered with the NMLS and hold a license issued by the subject property state. The processing company provides mortgage loan processing services only in states in which it holds the required license. The processing company must execute Stockton s Certification of Third-Party Processing Company. For each Broker transaction, the processing company will timely provide Stockton Mortgage and Broker a written invoice that includes at a minimum, the following information: (i) Processing company name (ii) Processing company address (iii) Borrower name (iv) Loan number (v) Detailed list of processing services provided (vi) Amount of the third-party processing fee Third-Party Processor Requirements A third-party processor, who is either an employee of a licensed processing company or an independent processor with his/her own NMLS registration, must meet the following requirements listed below. The processor is not affiliated with the Broker in any manner. The processor is registered with the NMLS and holds the appropriate mortgage-related license in each state for which he/she provides mortgage loan processing services. The processor files appropriate documents with any state regulator in which he/she provides mortgage loan processing services, as required by each state regulator. 1

2 The processor provides Stockton s with copies of all required documents filed with state regulators that are not available or viewable by the public from the state regulator websites. Third-Party Processing Fee Requirements Third-party processing fees must meet the requirements listed below. State statute does not prohibit charging a consumer a third-party processing fee in addition to origination fees. The third-party processing fee is bona fide and reasonable. The third-party processing fee is paid directly to the third-party company or processor. A copy of the invoice for the third-party processing fee is retained in the loan file, and the fee amount matches the amount on the Loan Estimate and Closing Disclosure. Broker Requirements Stockton requires a Broker to provide the following documents in conjunction with obtaining approval to use a third-party processing company or third-party processor. Executed Mortgage Broker Agreement Addendum Completed Third-Party Information form to include third-party company NMLS IDs for companies in states requiring registration and licensing Further, Stockton prohibits its brokers and its employees from sharing with Third-Party Companies access credentials to Stockton s loan processing site. Stockton requires a Broker to request Third- Party Company access credentials by including the appropriate information on the Broker s Web Access form. Stockton will require Broker to complete and execute a Certification of Compliance with this Third- Party Processing Policy in conjunction with Broker s yearly re-certification or as requested by Stockton Mortgage. 2

3 MORTGAGE BROKER AGREEMENT ADDENDUM This Mortgage Broker Agreement Addendum ( Addendum ) to that certain Mortgage Broker Agreement ( Agreement ) is entered into as of this day of, 20 (the Effective Date ), by and between Stockton Mortgage Funding ( Lender ) and ( Broker ). Lender and Broker are hereinafter collectively referred to as the Parties. Except as set forth herein, all the terms and provisions of the Agreement shall remain in full force and effect. To the extent the provisions of this Addendum conflict with the provisions of the Agreement, the provisions of this Addendum shall control. RECITALS WHEREAS, on, 20_, Lender and Broker previously entered into the Mortgage Broker Agreement, and the Parties desire to supplement the terms thereof by entering into this Addendum; WHEREAS, Broker has requested and Lender has approved the Broker s use of Third- Party Processing Company or Third-Party Processor, hereinafter collectively Third- Party Processing Company on a restricted and limited basis; NOW THEREFORE, for and in consideration of the mutual covenants and promises contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto agree as follows: 1. Broker acknowledges this Addendum restates and amends Section 1(e) and Section 9(d) of the Agreement only to the extent that Lender has approved Broker s request to use a Third-Party Processing Company and said Third-Party Processing Company is not a W-2 employee. 2. Broker acknowledges receipt of the Lender s written Third-Party Processing Policy ( Policy ) and has read and understands Policy requirements. 3. Lender reserves the right to amend, revise or revoke the Policy at any time in its sole discretion. As such, Broker confirms understanding current approval is not a Lender guarantee or promise to allow the continuation of this practice by Broker, and the term of approval may be shorter in duration than the parties Mortgage Broker Agreement. 4. Broker shall comply with all terms and conditions of the Policy and any deviation from, however minor or non-material, shall be an automatic disqualifier of any Loan Package processed by a Third-Party Processing Company that Broker submits to Lender. The term automatic disqualifier shall be defined to mean the Loan Package may be rejected, suspended or denied by Lender without further cause. Version:

4 5. Broker shall be liable to Lender for any and all actions, misdeed, errors and/or omissions of the Third-Party Processing Company and it shall not be a defense that Third-Party Processing Company is an independent party over whom Broker did not exercise control. 6. Broker shall indemnify Lender from any damages or injuries caused by the actions, misdeeds, errors and/or omissions of the Third-Party Processing Company. 7. Any loan or loans submitted by Broker and closed by Lender that are not in full compliance with Policy shall be an additional repurchase obligation of Broker as new item (h) of Section 11 of the parties Agreement. 8. Broker agrees to complete, execute and deliver to Lender at its yearly re-certification or as requested by Lender a Certification of Compliance with Lender s Policy in a format acceptable to Lender. 9. Broker agrees to prepare any and all Lender s Loan Submission Checklists with the accurate and current information of the Third-Party Processing Company. In the event Broker fails to provide the Third-Party Processing Company information on the Lender s Loan Submission Checklists at the time of initial loan registration, Lender may reject the Loan Package. 10. This Addendum may be unilaterally terminated at any time by Lender, without advance written or oral notice. In the event termination of the addendum occurs, the parties Mortgage Broker Agreement will continue in full force and effect. IN WITNESS WHEREOF, Lender and Broker accept and agree to the terms and provisions contained in this Addendum, which shall be incorporated into and made part of the Agreement. This Addendum shall be effective as of the day and year first above written. By Name: Title: Stockton Mortgage Funding By: Name: Title: Version:

5 THIRD-PARTY PROCESSING INFORMATION Broker Company Name Please provide the following information for each third-party processing company and contract processor used. State Third-Party Processing Company Legal Name Company NMLS ID 1 Processor Name Processor Processor NMLS ID 2 IMPORTANT NOTE Please ensure you include the contract processor(s) on the Web User registration form. 1 In Florida, the company is not required to have an NMLS ID; other states requirements may vary. 2 In Florida, the individual processor must have an NMLS ID; other states requirements may vary.

6 Certification of Third-Party Processing Company By signing below, I certify that I have first-hand knowledge that all the following statements are factual, true, and correct; I am aware that Stockton Mortgage Funding will rely upon the truth, accuracy, and contents of this certification; and that I am duly authorized to execute this Certification on behalf of the ( Third Party Processing Company ) as the owner, control person, or through Board Resolution. 1. Third Party Processing Company is not affiliated with or connected to any mortgage broker ( Broker ) in any way. This includes control person, manager, or Broker loan originator or any spouse or relative of such person. 2. No employees of the Broker are employed by or retained by Third-Party Processing Company in any capacity, or receive or share fees, costs and/or expenses from, without regard to form or structure, whether by salary commission, consultant, joint venture, independent contractor, and/or other professional relationship. 3. Third-Party Processing Company is duly and actively licensed and in good standing to perform processing services in the state where the subject property is located. 4. Third Party Processing Company is duly and actively registered with, has filed timely all annual reports with, and has remitted timely all annual fees to the Secretary of State in all states where processing is conducted. 5. No license or registration referenced in item 3 and 4 above is the subject of a pending or anticipated investigation and/or disciplinary proceeding. 6. All processing fees are bona fide and reasonable. 7. Third Party Processing Company will perform all processing-related services. Further, by signing below I agree to provide written invoices for each transaction and that each invoice will include specific details, which consist of the following minimum information: 1. Third-Party Processing Company name 2. Third-Party Processing Company address 3. Borrower name 4. Loan number 5. Detailed list of processing services provided 6. Dollar amount of the third-party processing fee Company Legal Name: By: Date: (signature) Name: Title: (print) Version: