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“STPO” TRAINING. Sponsored Third Party Originators For Non-FHA Approved Brokers. Offered through… FIRST MORTGAGE CORPORATION.
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“STPO” TRAINING Sponsored Third Party Originators For Non-FHA Approved Brokers Offered through… FIRST MORTGAGE CORPORATION Desktop Underwriter is a registered trademark of Fannie Mae. Loan Prospector is a registered trademark of Freddie Mac. This presentation is a summary and is not complete. This information is for mortgage professionals only and should not be distributed to or used by consumers or other third-parties. Information is accurate as of the date shown below and is subject to change without notice. 8/11/2010
Agenda • Introduction • STPO Guide • Sponsorship Requirements • Broker Approval • Comergence • Training • Certification Process • Miscellaneous • Origination Process • Sample Loan Flow • Underwriting and Loan Approval
Introduction • First Mortgage Corporation is an independent residential Mortgage Banking firm with branch offices located throughout the west. • Founded in 1975, FMC is a direct-lending mortgage banker approved as a lender and/or loan servicer by the Federal Housing Administration (FHA); the Veterans Administration (VA); the Federal National Mortgage Association (Fannie Mae); the Federal Home Loan Mortgage Corporation (Freddie Mac); the Government National Mortgage Association (Ginnie Mae); National Homebuyers Fund (NHF); the California Public Employees’ Retirement System (CalPERS); the California Teachers’ Retirement System (CalSTRS); the California Housing Finance Agency (CalHFA); the Nevada Housing Division (NHD); and many other major secondary market institutions. • First Mortgage is currently rated the #5 FHA Lender in CA! • Having funded in excess of $12 billion in residential real estate loans, FMC has assisted more than sixty thousand families with their mortgage needs. FMC enables families to enjoy the American Dream of Homeownership…“it’s the only thing we do.” • FMC has a longstanding tradition of providing unparalleled customer service and a reputation built on adding value to the home loan process. That’s why FMC should be considered…“YOUR FIRST LENDING RESOURCE”.
STPO GUIDELINES STPO GUIDE Approval Requirements Business Form Licensing Requirements
STPO Introduction • Effective May 20, 2010, FHA stopped accepting new applications for loan correspondent approval. • Non-approved originators, including previously approved loan correspondents whose approval has expired, will be permitted to participate in FHA programs through sponsorship by an FHA approved Direct Endorsement mortgagee. • For the purpose of our Training and Guide, we will refer to these entities as “Sponsored Third Party Originators” (STPO). • First Mortgage Corporation (FMC), an FHA-approved mortgagee, will start accepting originations from FMC approved STPOs effective August 16, 2010.
STPO Approval Requirements STPO Approval Requirements: • A Broker must meet the following general requirements to be an approved STPO with FMC. • Become an approved broker of FMC • Attend the “Mandatory” FMC - FHA Program Training • Take the required test to obtain Sponsorship Certificate
Business Form A Broker seeking approval can be: • Sole Proprietor • To be approved as a Sole Proprietor, you must sign our personal guarantee as part of our Broker Agreement/Approval. • Corporation • To be approved as a Corporation, it must be an entity, chartered in the United States, and meet all applicable laws regarding corporations. • Partnership • Other chartered institution • Must be a permanent organization having succession.
State Licensing Requirements • The Broker must be properly licensed with the respective state, and must not have been refused a license or sanctioned.
Broker Approval • The Broker must be an approved Broker of FMC. The approval process must be done through Comergence (see next section for instructions). • New Brokers • All non-FHA approved Brokers (NEW) must apply through Comergence. • This is necessary so that we can monitor the Broker’s licensing status and adverse activity such as sanctions or any other disciplinary action including adverse action by federal agencies. • Further action will be taken by FMC against Brokers for which licensing information is identified, up to and including termination from the STPO Program.
Approval Requirements cont’d… • Existing FMC Approved Brokers (not through Comergence) • Brokers who are already approved with FMC but not through Comergence need only to register with Comergence. This step is to help ensure FMC meets all regulatory requirements and simplified broker database tracking and updating. Please take a moment to register your profile with Comergence. • In order to get started, have your Tax ID and all licensing information handy! This process must be completed within 60 days or by October 15, 2010. • Use the link below to register only without applying: https://www.comergence.com/Register.aspx?RequestId=32890250&Ver=1 • The Broker should input the licensing information for all states that they are currently approved in. • This will allow Comergence to monitor their licensing status and adverse activity such as sanctions or any other disciplinary action including adverse action by federal agencies. • There is NO FEE for registering. • See STPO Training for instructions and screen shots of the information that needs to be input.
COMERGENCE PROCEDURES New Brokers Current FMC Approved Brokers (not through Comergence
Introduction to Comergence Who is Comergence? • Comergence is the leading provider of broker application processing and monitoring services to both wholesale lenders and brokers. Benefits of using Comergence? • Faster approval times • Consistent approach to due diligence • Paperless process • Gathering and retention of all related documents FMC Comergence Approval Website • New Brokers – Use “Become a Partner” link from your AE’s website • Existing FMC Approved Brokers (not through Comergence) – https://www.comergence.com/Register.aspx?RequestId=32890250&Ver=1
TRAINING Mandatory Training Other available FHA Trainings
Required Training • A Broker seeking approval must have a general knowledge of FHA guidelines. • Mandatory Training • FHA PROGRAM TRAINING • Other recommended FHA Trainings • FHA Streamline Training • FHA ARMs Training • FHA ACCESS Training • FHA 203(k) Training – Separate Certification required
Training cont’d… • Training for the FHA programs is available via on-line webinars at FMC, or you can do it on your own using the training materials available on our website. • On-line trainings available once a month via webinar • “Do it yourself” training available via FMC websites • Check the FMC Wholesale websites for upcoming trainings and the training schedule. • Training is mandatory before taking Certification Test
CERTIFICATION PROCESS Certification Process How to become Certified Requesting the Test Getting your Sponsorship Certificate
STPO Certification Policy • The principal owner of the company must become certified in order for FMC to sponsor the Broker/Company. • The certificate of the principal will allow us to status our LOS to accept loans from the Broker/Company under our sponsorship program • Additionally, ALL Broker LO’s are required to also become certified to ensure they are familiar with the basic FHA Program guidelines/requirements. • The certificate of the LO is required in all loan files submitted to FMC for Underwriting • Each STPO will be assigned a special identification number on their certificate. A list of these numbers will be sent to Underwriting weekly to verify certification and for monitoring purposes. • Underwriting has the right to request the removal of a STPO from our certified list which we as a lender must comply.
STPO Certification Process • Once you’ve met all the requirements including attending the mandatory training, you can request your certification test. • The STPO Certification Test (Exhibit A) and answer sheet (Exhibit B) will be provided with the Test. • The answer sheet is formatted so that you can fill it out electronically. • To fill in an answer box, just select the answer you want and click on the corresponding box. • If you want to change your answer, click on the box again to clear the answer and select a different box. • Please make sure to complete the form in its entirety.
Requesting the Test • Certification requests must be submitted via e-mail to: CertificationHelp@firstmortgage.com • Completed answer sheets must be attached to an e-mail and submitted via e-mail to: CertificationHelp@firstmortgage.com
PASSING GRADE • In order to be certified, the Broker must pass the Certification Test with a minimum score of: 90% • Re-tests can be taken up to 3 times. After which, you will be referred back to the Training before re-taking the test again.
Getting your Certificate A status notification will be sent by e-mail. • If you’ve passed the test, your Certificate will be attached which you can print for your records. A copy of the Certificate will be sent as follows: • PRINCIPAL OFFICER • A copy of the Principal Officer’s Certificate will be sent to QA to status FirstBase to reflect the Broker as a “STPO Approved Broker” • A 2nd copy will be sent to the FMC Wholesale Branch and AE for their records • BROKER LOAN OFFICER • A copy of the Broker LO’s Certificate will be sent to the FMC AE for their records • A copy of the LO’s certificate must be included in all FHA loan files submitted to Underwriting for approval
MISCELLANEOUS Origination Process Sample STPO File Flow Underwriting and Loan Approval FMC Support
Origination Process • The origination and processing tasks related to an FHA loan transaction will be the primary responsibility of the STPO, except those tasks executed directly in FHA Connection. • Until such time that FHA is able to modify their systems to properly account for the source of these originations (expected time frame: Mid September 2010), FMC, as the sponsoring mortgagee, will need to enter their 5 digit FHA ID in the Sponsor field in FHA Connection’s case number assignment screen as the loan originator for loans originated by their STPOs. • As a result, all originations from STPOs will appear in FHA’s systems as a retail origination of FMC and handled by the corresponding FMC Wholesale Branch. • FMC Wholesale Branch orders Case Number through FHA Connection
Sample STPO File Flow • STPO takes loan application – processes loan • STPO submits loan file to FMC AE (submission requirements will be at FMC Wholesale Branch discretion). At a minimum: • 1003 • Purchase Contract • Income documentation • AE reviews file for program eligibility • FMC Wholesale Branch orders case number through FHA Connection
Underwriting & Loan Approval • Underwriting and loan approval will be performed by FMC for all loans originated by STPOs, much like any other loan. • Once a Broker is approved by FMC as a STPO, the loan will close in the name of First Mortgage Corporation, until such time that HUD requires differently. • FMC will then submit the loan to HUD for insurance endorsement. • HUD will continue to carefully review and evaluate activities and performance, and will hold FMC responsible for compliance with FHA requirements in all aspects of an FHA loan transaction, whether performed by FMC or by its STPO, unless applicable law or regulation governing the violation(s) in question require specific knowledge on the part of the party to be held responsible. • In this aspect, FMC will diligently monitor and evaluate the activities and performance of those we choose to sponsor.
FMC Support • WEB SITE • TRAINING MATERIALS • CALCULATORS • TOOLS • FORMS • MARKETING • TRAININGS • First Mortgage offers FREE Weekly ONLINE Trainings • Upcoming Trainings - See August Training Schedule • Repeat of “STPO” Training – Tuesday August 17, 2010 @ 11am PST. • Mandatory FHA Training – Wednesday August 18, 2010 @ 11am • SUPPORT • Contact your Account Executive for help with...... • Scenarios • Pricing • Program Guidelines • Loan Submissions • Fees • Marketing • Training sign ups
On behalf of First Mortgage Corporation, thank you for joining our training today and we hope the material was helpful and informative. THANK YOU FOR YOUR BUSINESS!
