First Mortgage Corporation

1. First Mortgage Corporation Correspondent Lending New Seller Orientation Call in #: 218/339-3600Access Code: 307355#

2. FMC Overview • First Mortgage Corporation (FMC) has been a direct lender since 1975 and is one of the Nation’s top FHA lenders to underserved communities. • As a traditional mortgage banker, we believe that careful analysis of credit, income, assets and collateral should continue to be the basis for determining loan worthiness – not credit scores alone. • The ability to underwrite, fund and securitize our loans allows us to offer financing to borrowers with FICO scores below 600 and those who have yet to establish a credit score. • FMC remains committed to FHA standards as prescribed in their guidelines, which allows us to continue to assist credit-worthy families achieve the dream of home ownership.

3. FMC Correspondent Websitewww.fmccorrespondentlending.com What’s available on the FMC CLD website today: • Rate Sheets (Excel & pdf) • If you want to build in margins you’ll need to generate separate rate sheets (vs. giving your LO’s access to our website) • States Where We Buy Closed Loans & Niche Products • Seller Guide • Online Loan Lock • Loan Conditions • Forms: • Correspondent Loan Registration Form • Correspondent Stacking Order/Submission Form • Lock Change/Extension/Cancellation Form • Product Matrices & FMC Credit Overlays • Product Training Modules: FHA, Access, Platinum • TPO & Appraiser Exclusionary Lists • Link to FHA 4155 Handbook

4. Coming soon to website: • Online Loan Registration • Electronic Loan File Delivery link • Pipeline line reports

5. CLD Programs & Products • FHA 30-yr Fixed • FHA 30-yr Jumbo Fixed • FHA 5-1 Conf & Jumbo ARMs • FHA Streamlines • VA 30-yr Fixed • CHF Access 2nd TD • Ineligible: 203ks or Conforming loans

6. Approved States(for Closed Loans) • Arizona • California • Colorado • Idaho • Indiana • Nevada • New Mexico • North Carolina • Oregon • Texas • Utah • Washington

7. Loan Registration Process • To register a loan, Correspondents must complete and email the Correspondent Loan Submission form along with the FNMA 3.2 file to CLD@firstmortgage.com. • Loan file data will be uploaded into the system and a loan # generated. • Once the loan is registered, you will be notified via email of the loan # to be used when locking and delivering the loan.

8. CorrespondentLock Policy • Locks are Best Efforts Only • No Mandatory, AOT or Direct Trade • Loan lock changes, extensions and cancellations must be requested using Loan Change form found on website. • Max Price: 105

9. Required to Lock Online • Online locking requires: • Seller ID • Loan Number • Borrowers Last Name • Last Four Digits of Borrowers Social Security Number

10. Correspondent LendingLoan Delivery Process* • Prior Approval (Shadow Underwritten) Loans • FMC will shadow underwrite the first five (5) loans delivered by Correspondent (prior to close). • All loans submitted for prior approval must be underwritten by the Correspondent before delivery to FMC. • A DU Approve/Eligible is recommended. • Manually underwritten transactions must meet FMC Overlays. (Available on FMC’s Correspondent website.) • Prior approval loans should be delivered in paper format using FMC’s preferred stacking order (see Correspondent Stacking form on website) to: First Mortgage Corporation Attn: Correspondent Lending Department 1131 W. 6th Street Ontario, CA 91762 • After the first five loans, shadow underwrites (prior approvals) are available at a cost of $495 per loan.

11. Shadow UnderwritePrior Approvals (first 5 loans) • Once loan file is re-underwritten, FMC will relay to Correspondent any missing items/conditions necessary to close and fund the loan. • Correspondent has 7 days to clear conditions. • Minimum lock period on prior approval loans: 30-days

12. Miscellaneous* • Correspondent must order FHA Case #. • At time of purchase by FMC, Correspondent must notify HUD of the new holder/servicer of record. The Servicer/Holder change (transfer) must be completed through the FHA Connection using FMC ID #64308. • Lock extensions are the responsibility of the Correspondent and must be made prior to expiration. • FMC will accept LP approvals on closed loans only providing the loan meets FHA guidelines as well as FMC Credit requirements. *Comprehensive policies and procedures are available in the Seller Guide online at: www.fmccorrespondentlending.com

13. Closed Loan File Delivery Closed Loan Delivery Once Seller has been approved to deliver closed loans to FMC, the following delivery procedures should be utilized until BlitzDocs link is available: • Using FMC’s Correspondent Stacking order, all closed loan files should be delivered indexed and electronically via email pdf attachments to: CLD@firstmortgage.com • All of Seller’s Prior to Doc or Prior to Fund conditions should be cleared prior to delivery of loan to FMC and should be included in the loan file. • Upon receipt, FMC’s Correspondent Lending Department will acknowledge receipt of loan file to Correspondent and FMC Branch/AE. • Loan file will be immediately put into queue for review. • Correspondent will be notified of conditions required PTP (prior to purchase) • Prior to fund conditions requested by FMC should be numbered and sent all at once (not piecemeal) and should not mingled with other loan documents. • Seller is allowed seven (7) days from notification to clear conditions. • A link to the BlitzDocs portal will be available within 60-days.

14. Original Note Delivery Original Note Delivery To expedite purchase, the original note should be sent to: First Mortgage Corporation Attn: Correspondent Lending Department 1131 W. 6th Street Ontario, CA 91762 Sample endorsement format: PAY TO THE ORDER OF: First Mortgage Corporation WITHOUT RECOURSE ______________________ By (Signature of Officer) (Name of Seller) (Officer’s name and title)

15. Original Note Delivery (Continued) If Correspondent’s warehouse bank (BofA or GMAC) will not release the original note directly to the investor (FMC), the note must be sent to FMC’s Custodian bank at: Deutsche Bank National Trust Company 1761 E Saint Andrew Place c/o Andrew Hays Santa Ana, Ca 92705

16. Current Turn Times • Initial File Review: 72-96 hours after receipt by Corporate office • Clearing of Conditions submitted by Seller: 72-96 hours • Correspondent has 7 days to clear conditions from time of notification (or expiration date, whichever is later). • Once all conditions are cleared: 48 hours to fund. • Purchase advice will be sent one day prior to wire.

17. Product Training • FMC offers product training • Several times each month • A Calendar attached • FMC Underwriting philosophies • FMC Credit Overlays – minimal compared to most FHA investors

18. Access DPA 2nd TD(California Only) • Access Product Code S15FA0HF combined with FHA 1st Product Code F30FA0HF • Access 2nds must be closed in the name of: CRHMFA Homebuyer’s Fund, (Formerly California Rural Home Mortgage Finance Authority). • Since these loans are closed in the name of the investor, no assignment is necessary. • RESPA requires a separate final HUD-1 be provided for the Access 2nd Trust Deeds • The Access 2nd must be identified as the 2nd lienholder on the hazard policy.  It can be included with the 1st lienholder on one policy or a separate insurance policy.  The same holds true for the title policy. • Sample documents are available from Doc Magic • Rate: 8.25% at par

19. Assignments & MICs • First mortgages sold to First Mortgage Corporation must be assigned via MERs to FMC as investor and servicer within 72 hours of purchase. • FMC MERs Org ID # 1001245 • MIC must be sent to FMC within 30-days of loan closing unless FMC review deems MIC required prior to purchase.

20. Miscellaneous • Loss Payee Clause First Mortgage Corporation/ Its successors and/or assigns P.O. Box 391674 Solon, OH 44139 • Final Docs must be delivered within 60-days of loan closing to: First Mortgage Corp. Attn: Shipping Dept/Final Docs 1131 West Sixth Street Ontario, CA 91762

21. Exhibits • Exhibit A - FMC Contact List • Exhibit B – Correspondent Loan Registration Form • Exhibit C – Correspondent Rate Sheet • Exhibit D – FMC Credit Overlays • Exhibit E – Correspondent Stacking Order/Submission Form • Exhibit F - Lock Change, Extension Cancellation Form • Exhibit G – Loan Exception Request Form (FMC Loan Committee Form) • Exhibit H – Common Discrepancies (Closed Loan Files) • Exhibit I – Product Training Calendar • Exhibit J - Access vs. Platinum Comparison