Academy mortgage

ACADEMY MORTGAGE

December 8, 2011

ACADEMY’S VISION

To Become the BEST Independent Mortgage Banker in the Country. • BEST in class in delivering consistent quality and outstanding

customer service to our partners.

• BEST in class in attracting, developing, supporting, and retaining top-performing loan officers.

• BEST in class in attracting, developing, supporting, and retaining top-performing employees.

• BEST in class in supporting, contributing, and improving the communities we work and live in.

• BEST in class in delivering financially sustainable results to our owners and employees.

December 8, 2011

How will we know that we’ve become the BEST Independent Mortgage Banker in the Country? When we can sustain the following:

1. A reputation as the Gold Standard in the industry

when it comes to the highest quality and most productive loan origination team.

2. A reputation as the Gold Standard in the industry in customer satisfaction and quality service scores.

ACADEMY’S VISION

ACADEMY’S MISSION

• TO BE THE 1ST CHOICE HOME LOAN LENDER with every Realtor, Builder, and Homeowner who shares our commitment to sustainable home ownership.

• TO BE THE 1ST CHOICE DIRECT LENDER for Loan Officers and employees seeking a professional career in the mortgage industry.

December 8, 2011

ACADEMY’S FOCUS

1. Understanding and serving our customer: The Realtor and Builder. 2. Marketing and supporting our product: YOU–The Loan Officer. 3. Consistently delivering value to both.

Our Value Proposition to our Customer:

To Realtors and Builders, Academy Mortgage is the Gold Standard in Loan Origination and ease of doing business. Our Loan Officers are easy to access, and provide timely response, clear communication, and absolute follow-through. We do what we say we will do. Our behaviors and actions as a company provide confidence and assurance to our Customers and Loan Officers that we can be counted on to exercise our BEST efforts to consistently deliver loans “on time every time” without compromising core values or reputations.

December 8, 2011

ACADEMY OVERVIEW

• Founded in 1988—privately held.

• Licensed in 40+ states with 136 branches (as of 1/23/13).

• Volume and unit growth of over 600% in the past 5 years.

• Over 850 new employees over the past 5 years.

• National and regional Realtor and Builder relationships.

• Solid and tenured bank and investor relationships.

• Consistently ranked as an industry leader by Mortgage Bankers Association, CoreLogic, etc.

Academy Mortgage has successfully navigated through all the market and interest rate swings over the last 24 years.

ACADEMY’S STORY

ACADEMY’S GROWTH DESPITE TURBULENT TIMES

ACADEMY’S NUMBERS UNITS & VOLUME

ACADEMY’S NUMBERS PURCHASE & REFINANCE

Academy has 136 branches and is licensed in over 43 states.

Academy Branch Locations (as of 1/23/13)

ACADEMY’S FOOTPRINT

December 8, 2011

WHY ACADEMY? Consistent Focus on Things That Matter Most

• Scale: Bigger doesn’t always equal better. However, in the lending business you need enough size and scale to weather the economic and regulatory storms. We have what is needed–and then some. We are one of the largest private lenders in the country–our focus, however, isn’t on being the biggest–it’s about being the BEST.

• Scope: People talk a lot about economies of scale. We have it (as noted above). We also have economies of scope. We’re focused on purchase business and the Realtor market. As a result, we’re not as much at risk as our counterparts when it comes to stability and predictability. In 2011 our purchase-to-refinance ratio was 85/15.

• Efficiency: No off-shore or BIG BANK processing here. We focus our efforts on in-house processing, underwriting, closing, and funding in order to better meet the needs of the Customer and You.

• Culture: Culture is something a lot of people talk about. We do more than talk about it–we live it. Come see for yourself.

TOP PRODUCERS IN THEIR OWN WORDS

“Academy Mortgage has provided me with the delivery platform to confidently grow my business. The Company has been positioned well in size to adapt to every new opportunity and hedge against regulatory threats as my business has grown. The culture has been one of a can-do spirit where ‘we’ succeed together. I love coming to work each day because of my passion for the industry and great associations and support.”

–Brett Mills, Layton, UT

“Academy Mortgage provides me with local operations, in-house processing, common-sense underwriting, and hassle-free appraisal management. Even though Academy is a large, national firm, it has the flexibility to adapt, allowing me to operate in a way that benefits me, my customers, and the company as a whole. Work is no longer a fire drill. My loans close quickly and on time. This enables me to enjoy my growing family.”

–Sam Rosenblatt, Glen Burnie, MD

“Academy’s executive management team is very accessible and involved in the day-to-day business decisions. We have a state-of-the-art marketing program that helps us to retain loyal partners and form new relationships, which has served me in multiplying my business. All of this has helped my team and me take our production to another level. I can work anywhere, and so can you. Join Academy if you are serious about building a long-term career and business.”

–Chad Melin, Chandler, AZ

WHY ACADEMY

Academy’s January 2012 Partner Satisfaction Survey affirmed our long tradition of outstanding customer satisfaction with our Realtor, Builder, and other partners.

• 95% of nationwide respondents stated

that Academy significantly exceeded or met their expectations in the categories most important to them:

• Time to Close–95.2% • Responsiveness–96.0% • Communication–94.7%

• 95.3% stated they would recommend

Academy to a friend/future borrower.

• 93.3% said they would recommend the LO to a friend/future borrower.

THE GOLD STANDARD IN CUSTOMER SATISFACTION

WHY ACADEMY

WHAT REALTORS AND BUILDERS ARE SAYING ABOUT ACADEMY AND ITS LO’S

“Academy Mortgage stands alone as the best service provider I’ve ever worked with in my 9 years in real estate. With ever-changing mortgage regulations and difficult qualifying requirements, I consider the Academy team my most important business relationship.” —ST. GEORGE, UT “Academy is GREAT! In this market, it is important for every buyer to receive exceptional customer service, great rates, and overall professionalism. Academy and its representatives exceed those requirements!” —ATLANTA, GA “Mike cares about his customers. His honesty builds trust, and that’s what you need in a Loan Officer. Mike does a great job with my referrals.” — CHANDLER, AZ

“Sam has been the best at keeping me updated on the loan process. He is thorough and works hard to get the job done. I like his honesty and will always use him as my preferred lender.” —GLEN BURNIE, MD “Joe and his team are amazing. He is so helpful, efficient, and professional, and helps make me look good to my clients. And Academy Mortgage in general has been wonderful by making impossible deals possible because they can close so quickly. Kudos to all!” —CHANDLER, AZ

(Partner Survey, Jan. 2012)

WHY ACADEMY

Almost 25 years of financial prudence and experience provides the SUPPORT AND CONFIDENCE Partners and LO’s need to be productive.

Academy’s Performance Rankings in the 2012 CoreLogic Marketrac Report:

• #1 Independent Purchase Lender for purchase business. • Top 10 in total number of FHA purchase units and in total FHA purchase volume.

• Top 15 in total number of purchase units, in total purchase volume, and in total number of FHA loans.

• Top 25 in total FHA volume. • Top 50 in total number of loans/transactions.

(Source: CoreLogic Marketrac Report for 2012)

INDEPENDENT INDUSTRY RANKINGS WHY ACADEMY

December 8, 2011

If you’re an “A” Player looking for an “A” Team–welcome to Academy. OVER 275 HOME OFFICE EMPLOYEES WORKING FOR YOU

THERE’S ONLY ONE “A” TEAM WHY ACADEMY

Rick Reach, Field Marketing Manager “I work at Academy because I appreciate being part of a company with an overall vision in line with my own. Our dedication to providing nothing short of the best makes me proud to be a part of such a integrity-based organization. There’s nothing better than having a job that doesn’t feel like work!”

Kim Christensen, VP of National Production Operations “I work at Academy because I have an incredible amount of respect for the leadership. The commitment throughout the organization to assist the customers we can, and quickly deliver a decision to the ones that we can’t, is admirable and is definitely driven down from the top. However, the integrity that is shown in day-to-day business by Academy’s leadership, to customers and employees both, is respected and why I am here.”

Monique Taylor, Funding Account Manager “I have worked here since Academy started. Over the years I have watched Academy grow from one single office to a huge nationwide company. In all the trying times in the mortgage industry, and there have been many, I never felt threatened that Academy would not be around. This is probably the single most important thing to me when considering employment, that the company is stable and strong and can withstand the ups and downs of time. Academy is owned by the smartest man I have ever known, Duane Shaw. He is a good friend, as well as a great man to work for.”

MEET A FEW OF THE “A” TEAM MEMBERS

WHY ACADEMY

The task of leadership is not to put greatness into people, but to elicit it, for the greatness is there already.

– John Buchan

Bill Bent, Executive Vice President of Production Bill Bent joined Academy Mortgage as Executive Vice President of Production in 2007. In this role, Bill oversees all origination and production operations activities. He has been instrumental in growing the Company from a Utah and regional-focused originator to a national retail originator funding in excess of $3.0 billion annual of FHA, VA, FNMA, and FHLMC production.

Prior to joining Academy, Bill had a 20-year career with Waterfield Mortgage, a privately owned residential mortgage originator and servicer and a subsidiary of a $3.0 billion asset-based thrift, Union Federal Savings Bank.

Bill and his wife Liz have three children. He enjoys spending time with his family, skiing, soccer, and golf.

Adam Kessler, President Adam Kessler was appointed President of Academy Mortgage in January 2009. Under Adam’s leadership, Academy has become a national leader in the origination of conforming government and conventional mortgage lending. The Company has also experienced exponential growth, with a 378% increase in loan volume (from $814 million in 2008 to $3.075 billion in 2011); a 266% increase in its number of Corporate and Branch Office Employees (from 411 in 2008 to 1,095 in 2011); and a 656% increase in its number of Branches (from 18 in 2008 to 118 in 2011).

Adam and his wife Natalie have four children. He enjoys being a dad, mountain biking, and skiing.

LEADERSHIP MAKES A DIFFERENCE

WHY ACADEMY

David Schile Northwest Region Originated for 14 yrs. Industry 26 yrs.

Jennifer Tulcan Colorado Region Originated for 13 yrs. Industry 14 yrs.

Jerry Devlin East Region Originated for 4 yrs. Industry 30 yrs.

Kevin Haycock Southwest Region Originated for 12 yrs. Industry 28 yrs.

Rob Allphin Utah Region Originated for 13 yrs. Industry 18 yrs.

Cathy Gibb Southwest Region Originated for 15 yrs. Industry 31 yrs.

Mike Liane Western OR-WA Region Originated for 15 yrs. Industry 18 yrs.

Kriss Bates Pacific Region Originated for 10 yrs. Industry 15 yrs.

Mike Twigg Mid-Atlantic Region Originated for 7 yrs. Industry 31 yrs.

Larry Gunnin Southeast Region Originated for 5 yrs. Industry 35 yrs.

LEADERSHIP MAKES A DIFFERENCE

WHY ACADEMY

December 8, 2011

WHAT WE OFFER

1. “Fast-start” onboarding process

2. Flexible Branch model and infrastructure

3. Flexible origination platform and system support

4. Marketing and sales support

5. Market-relevant training and support

6. Competitive compensation plan and benefits

7. Industry-leading incentive trips

7 ESSENTIALS FOR HIGHLY PRODUCTIVE LO’S

December 8, 2011

WHAT WE OFFER

• We have a 1-2-3 process to make everything easy to process, from the initial stages to branch opening.

• Lease, equipment, and technology are all managed through our onboarding process.

• All departments and tasks are organized in a detailed project management system for timely results.

• Our weekly checklist ensures ease of workflow.

• An Onboarding Specialist is assigned to the branch opening and guides the new manager through the entire process.

“FAST-START” BRANCH ONBOARDING PROCESS

WHAT WE OFFER

• Producing or non-producing Branch Manager

• Loan processing in the Branch

• Underwriting and closing in Regional hubs

• Internet-ready Branch, so no need to network

FLEXIBLE BRANCH MODEL AND INFRASTRUCTURE

December 8, 2011

In-House Mortgage (IHM) Internet-Based Technology

All employees share the same system and the same data files. IHM manages loans from origination through loan reconciliation.

Key features and benefits:

• Real-time changes and status updates on loan files • Centralized database • Data security/SAS70 environment • Auto population of fees and print forms • Secondary marketing • Post-closing tools • Vendor interfaces • Data integrity checks • Detailed reports

WHAT WE PROVIDE FLEXIBLE ORIGINATION SYSTEM AND SUPPORT

The borrower can complete an application on the Loan Officer’s web site.

The Loan Officer originates the loan with In-House Mortgage (IHM) and has the ability to run DU and LP.

The Loan Officer releases the loan to the processor.

We process, underwrite, close, and lock the loan using IHM, all in-house.

The paper file is imaged into a PDF format and sent to Underwriting for approval.

The loan is approved and closing docs are prepared.

The loan is funded with our money.

The Regional closing office is responsible for sending the closed loan file to the Corporate Office.

ACADEMY LOANS

The Corporate Office ships a scanned loan file to the investor.

The government file is insured.

The Branch is responsible to cure all deficiencies in the loan. We typically clear the loan off of our warehouse line in 3 to 10 days.

Brokered loans are handled in the Branch. The broker package is sent to the Home Office for file retention and cash receipts.

BROKERED LOANS

Joe and his team are amazing. He helps me look good to my clients. And Academy Mortgage has been wonderful by making impossible deals possible because they can close so quickly.

– Chandler, AZ

WHAT WE PROVIDE FLEXIBLE ORIGINATION SYSTEM AND SUPPORT

December 8, 2011

• Custom marketing materials are focused on the needs of our Loan Originators.

• Loan Officers have access to Academy’s Marketing Portal, with access to hundreds of marketing tools and ideas.

• Loan Officers have personal web sites with an online application process for borrowers.

• Contact management with CustomerManager.

• Academy has a unique relationship with BuyerAcquireTM.

WHAT WE OFFER MARKETING AND SALES SUPPORT

December 8, 2011

We offer our Originators all of the latest cutting-edge tools to help them originate loans and build relationships:

• Full-time IT support and IHM support.

• Access to a broad range of marketing materials—everything from newsletters to yellow page ads.

• Individual web pages for each Loan Officer. This allows the borrower to send an email or fill out a loan application at any time.

• A dynamic business support group that provides training, licensing assistance, system maintenance, and full Branch-support functions.


Academy’s On-Demand Marketing Center Our On-Demand Marketing Center provides you with a wide array of Compliance-approved marketing products for your customers, prospects, and partners, all at your fingertips. The Center gives you a quick, easy-to-use source for:

• A variety of individual cards: Anniversary cards, birthday cards, Loan Officer announcement cards, Partner thank you cards, and more!

• Refinance postcards • Academy-branded gifts • Newsletters • Flyers • Emails • On-demand mailings • Academy’s retention programs: We send postcards, e-mails, and/or

greeting cards to your customers for 2 or 3 years after closing.


MARKETING MATERIALS available through the On-Demand Marketing Center

WHAT WE OFFER

December 8, 2011

• CustomerManager is the leading platform for customer acquisition and retention, as well as prospect and partner marketing, including solution data management, hosting, printing, and mail fulfillment.

• CustomerManager is the leading enterprise-wide mortgage platform delivering real-time customer information to individual business users and managers. Based on advanced technology and architecture, this world-class tool embeds the highest levels of security and user-friendly access.

MARKETING AND SALES SUPPORT

WHAT WE OFFER

December 8, 2011

Buyer Acquire captures the caller’s phone number and sends the information to the listing agent and lender immediately. Its competitive advantages are:

• Building relationships: Every lead received by a listing agent strengthens your relationship. When you partner with a Realtor, you’ll both receive quality leads. You can provide a good Realtor recommendation to potential clients, and the agents can recommend you as the go-to lender.

• Buyer Acquire takes calls 24 hours a day, every day. Even if you aren’t available, your potential clients can still get the information they need when they need it.

• Buyer Acquire is an effective and easy-to-use hot-lead generation system. It turns listing information into a real human voice and captures caller information for quick follow-up with potential buyers. Callers get the information they want, and you get notified immediately by email and text message.

• Detailed reports track call traffic and advertising, so you know what methods are working best for you.


December 8, 2011

• FHA and VA products

• 203(k), 203(b), and reverse products

• FNMA and FHLMC products

• Correspondent non-conforming products with multiple investors—Jumbo

• Brokering allowed

• State housing bond programs

If you have a unique product in your marketplace that would make a significant difference to your loan production, we have the ability to add to our product guide.

WHAT WE OFFER ACADEMY’S PRODUCTS

• We build our price sheet based on providing the lowest correspondent “best efforts” price. For agency product, we provide the best pricing available for each coupon being quoted.

• We share with the Loan Originator Servicing Release Premiums, giving the Loan Originator the ability to control price.

• The Loan Originator has the ability to compete for all business based on greater price flexibility.

• Email updates throughout the day are backed by Optimal Blue’s pricing engine, which allows for real-time pricing changes.

WHAT WE OFFER ACADEMY’S PRICING PLAN

YOUR CONTINUED CAREER TRAINING through Academy Mortgage and XINNIX, the Mortgage Academy of Excellence, includes: • Sales training, which sharpens the creative sales tools of both

experienced and new Loan Originators. • Performance coaching, which provides outstanding mortgage training

with Certified Professional Coaches. • Leadership development, which empowers executives and managers

to aim high and grow their business. BENEFITS AVAILABLE TO YOU include:

• Deferred compensation. Highly compensated employees can defer up to $200,000 per year. • Life insurance: Group Life Insurance in the amount of $50,000 is provided for you at no cost. • Supplemental Voluntary Life Insurance: is available for you and your family members by The

Hartford. • Short-term disability insurance is a voluntary benefit available through Colonial Life. This

benefit provides 2/3 income replacement up to $5,000 month. • Long-term disability insurance, is a voluntary benefit available through The Hartford. This

benefit provides 60% salary replacement up to $10,000 month.

WHAT WE OFFER ACADEMY’S TRAINING AND BENEFITS

December 8, 2011 2013 Paycheck Deductions Semi-Monthly

Coverage Level

Medical Option 1 -

$500

Medical Option 2 -

$1250

Medical HSA Option 3 -

$2500

MetLife Dental

Vision

Employee $98.00 $67.50 $51.00 $15.27 $2.84

EE + SP $220.50 $151.50 $114.50 $21.99 $5.69

EE + CH(REN) $211.00 $145.00 $109.50 $38.40 $6.08

EE + FAM $304.00 $209.00 $158.00 $57.06 $9.72

• The medical plan is administered by United HealthCare (UHC). UHC is a large NATIONAL network with many doctors and pharmacy options. To see if your doctors are in the network, go to myuhc.com. (Select the UHC Choice Plus plan option.)

• We offer 3 different insurance plan options to provide a more comprehensive benefits platform for all of our employees. Each plan has unique co-pays and calendar year annual deductibles. However, the deductible is waived for office visits for injury, sickness or preventative care. Academy Mortgage will share the cost of the medical premium with the employee. The amount of co-share varies depending on the which plan is selected.

• Voluntary dental coverage is provided by MetLife. You have the Freedom of choice to go to any dentist. You have the flexibility to visit any dentist — your dentist — and receive coverage under the Plan. However, if you choose a dentist who does not participate in the network, your out-of-pocket costs may be higher because MetLife’s negotiated fees do not apply. The advantage of choosing an in-network provider is that they have agreed to accept the fee schedule used by the plan and you will not be billed for the excess charge.

• Voluntary vision coverage is provided by Vision Service Plan (VSP). To see if your provider is contracted with VSP, log onto the www.vsp.com website or call customer service at 800-877-7195.

WHAT WE OFFER ACADEMY’S BENEFITS

https://www.geoaccess.com/uhc/po/Default.asp

http://www.vsp.com/

Confidential - Not for Distribution

ACADEMY’S BENEFITS

WHAT WE OFFER

2012 PRESIDENT’S CLUB Secanquin, Guatemala April 28–May 5, 2012 PRESIDENT’S & TOP PRODUCERS CLUBS Riviera Maya, Mexico February 27–March 1, 2012 Fairmont Mayakoba Resort

2013 PRESIDENT’S CLUB Africa Expedition October 2013 PRESIDENT’S & TOP PRODUCERS CLUBS Maui, Hawaii April 29–May 2, 2013 Grand Wailea Resort and Spa

INDUSTRY-LEADING CONFERENCES

WHAT WE OFFER

2014 TO BE ANNOUNCED JANUARY 29, 2013

2013 President’s Club Qualification Level: $22 million in purchase volume or 160 units $44 million in total volume or 320 units

2013 Top Producers Club Qualification Level: $12 million in purchase volume or 80 units $24 million in total volume or 150 units

2012 SERVICE EXPEDITION PRESIDENT’S CLUB

Secanquin, Guatemala—2012

The Service Expedition is an awards trip unlike any other in our industry and represents part of what makes Academy truly different from other organizations. We sent 90+ Qualifiers in 2012 to the remote village of Secanquin, Guatemala, to build a water system, a schoolhouse, and a health center. You’ll be hard-pressed to find another organization like ours whose top performers are as committed to giving back as they are to personal and corporate growth.

President’s Club Qualification Level: $20 million in purchase volume or 150 units $40 million in total volume or 300 units

OPPORTUNITY

The opportunity to grow your business, improve your career, and be a part of thriving, passionate culture.

WHAT WE OFFER

December 8, 2011

We Realize We’re Different.

We Realize We’re Not a One-Size-Fits All.

We Realize You Have a Lot of Options.

If You’re Looking for Something Different,

If You’re Looking for a Good Fit,

If You’re Tired of Being Disappointed,

WELCOME HOME.

WHAT’S NEXT

Academy mortgage

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