THE INDUSTRIAL COMMISSION OF NORTH DAKOTA ACTING AS THE NORTH DAKOTA HOUSING FINANCE AGENCY DESKTOP ORIGINATOR SPONSORSHIP AGREEMENT THIS AGREEMENT, dated as of the date signed below, is between the State of North Dakota doing business as the Industrial Commission of North Dakota acting as the North Dakota Housing Finance Agency (herein the Agency ) and (herein the Lender ) with its post office address at. NOW, THEREFORE, in consideration of the mutual covenants herein contained, the Agency and the Lender agrees to the following. This Agreement contains a discussion of the Agency s method of operation using Desktop Originator, as well as, a summary of the roles and responsibilities of the Lender. The Agency has chosen Desktop Originator because it helps us to pass significant loan processing/underwriting automation and its benefits along to our Lenders. Desktop Originator on the Web will give us a secure Internet link to you, our Lenders. Through Desktop Originator on the Web you will submit loans to the Agency and in turn you will receive credit underwriting loan recommendations and reports. Some of the potential benefits you may realize are: The loan approval process is shortened with the use of automation. Underwriting conditions are streamlined which may decrease the amount of paperwork required for a typical loan application which may, in turn, decrease your loan cycle time. Applicants may obtain their loans more timely and, in some cases, costs will go down because of reduced documentation requirements. We may use the same consistent 3 in file merge credit reports that you can request at the point of application. STAFF DESIGNATIONS: The following people have been designated to help you with Desktop Originator: Dean Melgaard Kim Becker David Flohr Coordinator, Homeownership Programs/Underwriter Email dmelgaar@nd.gov or call 701-328-8067 Underwriter, Homeownership Programs Email kabecker@nd.gov or call 701-328-8068 Director, Homeownership Programs Email dflohr@nd.gov or call 701-328-8060 North Dakota Housing Finance Agency 2624 Vermont Ave PO Box 1535 Bismarck, ND 58502-1535 Page 1 of 5
Any of the above staff can be reached at 1-800-292-8621, 701-328-8080. SIGN-UP AND SPONSORSHIP PROCEDURES: In order to have access to Desktop Originator, the Lender must execute this Agreement and establish an ACH relationship the Agency. The Lender must also enter into a software licensing agreement; register the Agency as its sponsor; and establish an ACH relationship with Fannie Mae. To register with Fannie Mae Lenders can go to Fannie Mae s website, www.fanniemae.com/singlefamily/desktop-originator. In addition, the Lender must register with at least two participating credit information providers. Equifax Beacon, Experian-FICO (formerly TRW-FICO), and Trans Union Empirica are participating credit information providers. Other providers may be added at a later date. COMPENSATION: The Lender will be responsible to pay the Desktop Originator case file charges assessed by Fannie Mae. Case file charges are paid direct to Fannie Mae by ACH. The Lender will also pay a Desktop Underwriter fee for each case file submitted to Desktop Underwriter utilizing Desktop Originator under this Agreement. Such Desktop Underwriter fee is assessed by and paid directly to the Agency by ACH. Case file charges and Desktop Underwriter fess are subject to change. See Exhibit A hereto for current case file charges and Desktop Underwriter fees. PRODUCTS: North Dakota Housing Finance Agency offers the following products for loans submitted through Desktop Originator. The products include: All loans which the Lender intends to sell to the Agency under the 1994 Mortgage Purchase Agreement, as amended (MPA); and/or the Credit Underwriting Service (CUS) Agreement. The Agency reserves the right to authorize additional or discontinue existing loan types under this Agreement by written notification to the Lender from time to time. PROCEDURES AND LENDER CONDITIONS: The following procedures have been established based on the current and ongoing relationship between the parties hereto. These procedures are subject to change at any time by written notification to the Lender. Currently, all conforming products may be submitted directly to Desktop Originator. The Agency will monitor your progress on an ongoing basis for loan quality and data integrity. Under this Agreement Lenders have the authority to submit case files directly to Desktop Originator. All findings, reports, verifications, observation and condition messages will be returned directly to the Lender. On loans in which the Lender has contracted with the Agency to provide the credit underwriting decision (CUS Agreement), the Agency reserves the right to request additional conditions and will return all Desktop Originator data after final submission and credit underwriting file review. North Dakota Housing Finance Agency 2624 Vermont Ave PO Box 1535 Bismarck, ND 58502-1535 Page 2 of 5
All loans must conform with the terms and conditions of the respective MPA, CUS Agreement, and/or Selling Guide. DISCLAIMER: Except for case files underwritten by the Agency under the CUS Agreement, the Agency makes no warranties of any kind whatsoever and the Lender agrees to hold the Agency harmless for all underwriting decisions obtained by the Lender under this Agreement. The Agency s warranty for case files underwritten under the CUS Agreement is limited in accordance with the CUS Agreement. OTHER PROVISIONS: 1. This Agreement shall remain in effect until terminated by mutual agreement of the parties by a minimum of 30 days written notice from one party to the other. 2. This Agreement is not assignable without the prior written consent of the Agency. 3. This Agreement is and at all times shall be, for all purposes, a North Dakota contract, shall take effect in the State of North Dakota and be interpreted and construed in accordance with the laws of the State of North Dakota. 4. The provisions of this Agreement cannot be waived or modified unless such waiver or modification is in writing and signed by the parties hereto. 5. All communications between the parties hereto shall be in writing and, for all purposes hereto, shall be deemed received or given when mailed, postage paid, addressed to the Agency, attention Director of Homeownership Programs, P.O. Box 1535, Bismarck, North Dakota 58502, and to the Lender at its address shown herein. Each party hereto has caused this Agreement to be executed in its name by a duly authorized officer. North Dakota Housing Finance Agency (Lender) By: By: Title: Date Signed: Title: Date Signed: North Dakota Housing Finance Agency 2624 Vermont Ave PO Box 1535 Bismarck, ND 58502-1535 Page 3 of 5
Exhibit A DESKTOP ORIGINATOR SPONSORSHIP AGREEMENT Fee Schedule Case file Charges: $ 20 Billed by Fannie Mae direct to Lender (ACH) Desktop Underwriter Fees: Non-CUS Cases $ 60 Billed by Agency to Lender (ACH) CUS Cases $160 Billed by Agency to Lender (ACH) Credit Report Actual Cost billed by CB direct to Lender Fannie Mae case file charges and Desktop Underwriter Fees are subject to change upon written notification from the Agency to Lenders in accordance with the Agreement. North Dakota Housing Finance Agency 2624 Vermont Ave PO Box 1535 Bismarck, ND 58502-1535 Page 4 of 5
HOMEOWNERSHIP PROGRAMS Desktop Underwriter/Desktop Originator Drafting Authorization Complete all information and submit to the Agency along with your Desktop Originator Sponsorship Agreement. LENDER INFORMATION Lender Name Address City State Zip Code User ID (6 character assigned by Fannie Mae) Contact Person Phone Number BANK ACCOUNT INFORMATION Please include a copy of a voided check or deposit slip Name of Financial Institution (to be drafted) City State Zip Bank ABA (9 digits) Bank Account Number Account Type (select one) Checking Savings Other AUTHORIZED SIGNATURE Printed Name of Authorizing Officer Title of Authorizing Officer Signature Date The completion of this form authorizes the North Dakota Housing Finance Agency (NDHFA) to draft for the payment of Desktop Originator services only. The automatic drafting system debits your authorized bank account by electronic transfer. Therefore, your authorized bank must be a member of Automated Clearing House (ACH). NDHFA will send you a monthly bill detailing your Desktop Originator services on or about the twentieth of the month. Your account will be drafted no sooner than ten (10) business after the invoice date on your bill. The monthly bill will disclose the drafting date and the amount to be drafted. You must have the correct amount of funds on deposit in your account on the day of drafting. There will be a $25.00 penalty for any returned draft. In order to ensure that your draft will process correctly, our bank will prenote the draft to your bank. Your bank may or may not notify you as to its receipt of our prenote. North Dakota Housing Finance Agency 2624 Vermont Ave PO Box 1535 Bismarck, ND 58502-1535 Page 5 of 5