Annoucement 2011 11-2 Correspondent Lending

2155 Louisiana Blvd., N.E., Ste 8000 Albuquerque, NM 87110 (800) 640-0635 NMLS# 932430

Superior Performance…Our Commit ment

IN THIS ANNCOUNCEMENT

In an effort to reduce duplicative credit review and improve the overall experience for our customers, we are pleased

to announce changes to our client services levels. Previously we offered three levels of service and corresponding fee structures referred to as StarSelect, StarChoice and StarPlus. Going forward we will offer two services levels with

what we believe will be more clear distinctions between them and will ultimately enhance the ability for our delegated customers to succeed in the ever-changing marketplace.

New Service Levels Effective Wednesday, 11/2/2011, Weststar will transition to a new service level structure for our clients. In the next

few days, you will notice a change in BlitzDocs when you submit a loan to Weststar that represents the two new

options for service level submissions: Delegated and Non-Delegated. Effective on 11/2/2011 our mid-tier service level

(StarChoice) will no longer be available.

Delegated Review Correspondent Delegated Review is a new service level that is granted to our best customers who demonstrate

proficiency in assessing the risk on our product lines and capital capacity to manage the outcomes of their own risk

assessments. We understand that even with this proficiency there are occasions when our clients would prefer to

defer that risk assessment (and its resulting liability) on portions of files they intend to deliver to us. To accommodate

the occasional need to preview those portions of certain loans we have added an option to our Delegated Review

tier: Delegation Exemption(s). Each requested exemption will carry an additional fee of $125 and be limited to a

maximum of two exemptions per file. Delegation Exemptions will modify Seller representation and warrant liability

specific to that portion of the file which has been fully reviewed, conditioned and approved prior to closing by

Weststar.

What are the benefits of a Delegation Exemption? The exemption has been put in place to provide our clients with an

enhanced comfort level that there will be no issues at the time of purchase resulting from a particular portion of the

file. Additionally, a granted exemption allows our clients on an as needed basis to defer to our product and risk

expertise while keeping costs low and mitigating Seller liability to the transaction. We believe that this combination

provides excellent flexibility and a needed efficiency to the loan review and approval process for our valued

customers.

Delegation Exemptions should be requested at file image submission with the attached request form and are

intended to be reviewed prior to loan closing. Exemptions are available for:

Credit

Collateral

Income

Assets

Fee structure: $250 plus $125 per exemption (max of 2 exemptions per request)

2155 Louisiana Blvd., N.E., Ste 8000 Albuquerque, NM 87110 (800) 640-0635 NMLS# 932430

Non-Delegated Underwriting Our Non-Delegated Underwriting service level is exercised on FHA loans via an established Principal Authorized Agent

relationship and allows for Weststar to underwrite an individual file for our all of our correspondent clients.

Principal Authorized Agent Relationship must be established through DU prior to loan submission

The loan closes in the correspondent’s name

Correspondent insures the loan

Available to all correspondents

Fee structure: $850

If you have any questions regarding the new service levels, our line of exceptional loan products or would like to find

out more about how Weststar can help you be more successful in a challenging market please contact your

Correspondent Account Executive. Weststar Mortgage’s Correspondent Lending Division is a boutique mortgage bank

and FNMA/GNMA Seller/Servicer dedicated to delivering niche-based lending products with outstanding customer

service in the following states: CA, OR, AZ, UT, CO, NM, TX, OK, KS, NE, MN, IA, MO, AR, LA, IL, MI, IN, KY, TN, MS, AL,

GA, NC & FL.

Assets Date

Collateral

AUS Manual

State:

LTV: CLTV:

6)7)8)9)

4)5)

YES NO1) 5)2) 6)3) 7)4)

1)2)

Title Commitment Expiration: Appraisal Expiration: Purchase Contract Expiration:1) 3)2) 4)

1) 4)2) 5)3)

Notes

Underwriting Type: (circle one)

Requested by:

Title:

Underwriter Signature: Date Completed:

If more than two exemptions are requested WMC loan review will be conducted and invoiced as a Non-Delegated Review.

Income Notes:

Income Calculations:

Credit Notes:

TIL Date: Rate:

GFE Date: Term:

Loan Purpose: New Construction (OTC)

Property Address:

Transfer of Funds Documented

Comments:

Inquiry Letter

Asset Review

Funds Required for closing: Liquid Assets Available:

Divorce Decree (if applicable)

At the request of WMC's Delegated Correspondent Seller WMC has agreed to provide a detailed risk assesment of portions of the subject loan in lieu of the Seller's

delegated credit authority. For those portions WMC's underwriting departmet will therefore require certain documentation to be supplied by the Seller prior to loan

approval and purchase by WMC. Under this exemption and subject to the sufficient provision of required documentation and the subsequent loan approval and purchase

Seller is hereby released from representation and warranty liability under the Correspondent Lending Purchase Agreement to Buyer for any indemnity specifically based

on those indicated elements of risk assesment performed by WMC. Only those sections of the loan file specifically related to the indicated exemptions are subject to this

alteration of Seller's liability. Seller maintains all other representations and warranties to Buyer under the Correspondent Lending Purchase Agreement. Nothing in this

extension of WMC's exemption will alter or otherwise modify any provision of the Correspondent Lending Purchase Agreement.

Delegation Exemptions Requested by Seller ($125.00 each):

Credit

Income

Application Date: Lock Date:Disclosure Sent Date: Expiration Date:

Appraised Value: $ 203(k)HUD Repo

Dates Other

Purchase Price: $ New Construction (End Loan)Base Loan Amount: $ VA IRRLTotal Loan Amount: $ FHA Streamline

Loan Type: (circle one) FHA VA CONV USDA SS#'s:

Property Type:

Delegated Review Exemption Request

General Loan Information

Loan Number: Borrower:

Co-Borrower(s):

Improvements Documented Assessed as Real Property (Existing Homes)Documentation that home is in original

Needs:

Needs:

Manufactured Home Documentation

Form 500 NPW

Asset Notes:

Collateral Review

Tax Cert PayoffWiring Instructions Chain of Title

Expiration Date for Bank Statements:Large DepositsCompleted/Signed Gift Letter

3)

Credit SupplementChild Support (if applicable) LQI DocumentationLOE (if applicable) Address matches 1003/Docs in file

Credit Review

Credit Report Expiration: Credit Report matches most recent AUS findings:

(B) Pay Stubs: Dates Required: Dates In: Expiration:(CB) Pay Stubs: Dates Required: Dates In: Expiration:

2)(B) W-2 20_____ Years in File: 20____ 20_____(B) W-2 20_____ P&L Required: YES NO

3)(CB) W-2 20_____(CB) W-2 20_____

Income Review

1)(B) WVOE Tax Transcripts Required: YES NO(CB) WVOE Years Required: ONE TWO

1234567890 Delegation Exemptions (2 max)

1234567890 Credit - Income - Assets - Collateral

1234567890 See attached rider for each.

# Application Document(s) Agency FHA VA Stack

1 Loan Application 1003 (Initial)

2 Loan Originator License Verification N/A

3 NMLS Unique Identifyier Displayed N/A

4 Good Faith Estimate(s)

5 GFE Acknowledgement

6 GFE Change of Circumstance Disc.

6 List of Settlement Service Providers

7 Borrower Attestation of Intent to Proceed

8 Truth in Lending (Initial)

9 MDIA Cert

10 Application Date Validated N/A

11 Disclosures Sent Date Validated N/A

12 Confirm Delivery of Disclosures N/A

13 Fraud Guard (Interthinx) N/A

14 Property Type Validated N/A

15 Borrower Cert & Authorization

16 Notice to Home Loan Applicant

17 Disclosure Notices

18 Servicing Disclosure Statement

19 FACT Act Notice

20 Rate Lock/Float Agreement

21 Borrower Appraiser Acknowldegement

22IRS Form 4506-T Request for Transcript of

Tax Return (Initial)

23 LDP and GSA printouts N/A N/A

24Addendum to the URLA (Initial) HUD

92900AN/A N/A

25 FHA Purchase Agreement Addendum N/A N/A

26 FHA Informed Consumer Choice Disc. N/A N/A

27 FHA Get a Home Inspection Disc. N/A N/A

28 Assumption Notice to Homeowner N/A N/A

29 Important Notice to Homebuyer N/A N/A

30 VA Federal Collection Policy Notice N/A N/A

31 VA Nearest Living Relative N/A N/A

32Counseling Checklist for Military

HomebuyerN/A N/A

33 Origination Statement Itemization N/A N/A

34 VA Debt Questionnaire N/A N/A

35VA Important Notice - Rights of VA

BorrowerN/A N/A

36 OTC Floating Rate Agreement N/A N/A

37 OTC Spending Authorization Form N/A N/A

38OTC Important Notice (1st Payment Due

Date)N/A

39 OTC Manufactured Home Info Sheet N/A

40 Alive and Well Statement N/A N/A

41Appraisal, all pages and all exhibits

including legible photos

42 Asset Documents

43 AUS Findings Document

44 Borrower Letters of Explanation

45 CAIVRS Printout N/A

46 Certificate of Reasonable Value N/A N/A

47 Child Care Letter N/A N/A

48 Comparison Statement of VA IRRRL N/A N/AVA Interest Rate Reduction Refinance Loan only

Notes

WMC to perform: pull report, analyze & flag for u/w as needed

WMC to perform: use Check Loan Feature

Completed and accurate

WMC to perform: registration screen vs. disclosures

WMC to perform: registration screen vs. disclosures

Email receipt, etc.

WMC to perform: both company and originator listed on 1003

Final results; All Pages

If applicable

Required only if not evidenced on 92900LT

If applicable

WMC to perform: system vs. application, lock & AUS

Includes Credit Score Disclosure

Must evidence that it was sent within 3 business days from HOEPA

application date

Including any documentation to support changes as a result of changed

circumstances and the Settlement Service Provider List (if applicable).

Initial Good Faith Estimate must evidence that it was sent within 3

business day from HOEPA application date.

Pages 1-2 must be completed, signed and dated.

Required only if not evidenced on 92900LT

If applicable

For FHA loans, first page must show FHA Case Number. For Agency

loans, must include copy of the Appraiser's license and interior photos

for appraisals with interior and exterior inspections.

Verifying all funds needed to close

N/A for Construction Loans

Appraiser Independence Provision

If applicable

One-Time Close Only

One-Time Close Only

One-Time Close & Manufactured Home Only

One-Time Close Only

Initial Review:

Completed Date:

1234567890

1234567890

Delegated Review Checklist

Weststar Mortgage Correspondent Lending

Client ID:

Borrower (Primary Last Name):

WMC Reviewer Name:

If applicable, requires supporting documentation/explanation

Completed and signed by all qualifying borrowers at closing; not

required on non qualifying VA IRRRLs

49 Condo Approval

# Application Document(s) Agency FHA VA Stack

50 Credit Report

51 Document to Clear Conditions

52 Final or Repair Inspection

53Builder's Certification or 10 yr. warranty

HUD 92541N/A N/A

54 HUD Warranty of Completion HUD 92544 N/A N/A

55 Conditional Commitment HUD 92800-5b N/A N/A

56Underwriting and Transmittal Summary

HUD 92900LTN/A N/A

57Addendum to the URLA (Final) HUD

92900AN/A N/A

58 Income Documents

59IRS Form 4506-T Request for Transcript of

Tax Return (Final)

60 Lender's Quality Certification N/A N/A

61 Loan Application 1003 (Final)

62 MI Proof of Payment N/A

63 Mortgage Insurance Certificate N/A N/A

64 Notice of Value and all NOV requirements N/A N/A

65 Payoff Statement N/A

66 Power of Attorney

67 Prior Loan Validation for IRRRL N/A N/A

68 Property Certifications N/A

69 Sales Contract

70 Social Security Number Verification

71 Tax Transcripts

72 Truth in Lending (Final)

73 Underwriting Approval Document N/A N/A

74Report and Certification of Loan

Disbursement VA 26-1820N/A N/A

75Warranty of Completion of Construction

VA 26-1859N/A N/A

76 VA 26-1880 Certificate of Eligibility N/A N/A

77 Loan Analysis VA 26-6393 N/A N/A

78Verification of VA Benefit Related

IndebtednessN/A N/A

79Addendum to URLA (Final) VA Form 26-

1802aN/A N/A

80 IRRRL Worksheet VA Form 26-8923 N/A N/A

81

Verbal Verification of Employment or

acceptable verification for self employed

borrower

# Closing Document(s) Agency FHA VA Stack

82 Assignment of Mortgage N/A N/A

83 MERS Assignment to Correspondent

84 Verbal VOE

85 Fraud Guard Report (Interthinx) N/A

86 FHA Case File Assignment N/A N/A

87 LQI Certification N/A N/A

88 Buydown Agreement and Schedule

89 Escrow Holdback Documentation

90 Escrow Waiver Letter

91 First Payment Letter

92 Flood Insurance Policy

93 Flood Zone Certification

94 Hazard Insurance Policy

95 HOEPA/HMDA Required Information

Performed within 10 days of loan closing.

Must be assigned to Correspondent

WMC to provide

Qual Score: Required Score:

If applicable

Completed and signed by all qualifying borrowers at closing; not

required on non qualifying VA IRRRLs

Must be signed and dated

If applicable

New Construction Only

New Construction Only

Form must be complete and accurate and the Commitment Terms

Section must include Underwriter's Name, Signature & Date and

Must be complete and include CAIVRS#, LDP/GSA box checked for each

borrower and CHUMS ID for Underwriter or Reviewer of Appraiser, if

applicable. Note: If 92900LT does not include CAIVR's or LDP/GSA

checkboxes, copies of CAIVRS and LDP/GSA printouts are required

Pages 1-4 must be complete and include all appropriate signatures and

dates

Based on Employment or Other Types of Income

If VA & Tax Returns are used, must be signed.

If Conv or FHA & Tax Returns, don't have to be signed

Required on all Non-IRRRL loans

For refinance loans

If applicable

Print out from VA portal or Certificate of Eligibility

Veteran's name must match 1003

(Well, Septic, Roof, if applicable)

Purchase Transactions, all pages

For FHA loans, only; if Amendatory Clause is not contained in Sales

Contract, must be provided seperately

Copy of Social Security Card, W-2's, etc

Must match SS# on 1003

Required on all transactions except non credit qualifying VA IRRRLs

Must be complete and include Underwriter's Signature and Date

Must include CAIVRS # in box 46 or 47 or printouts will be needed

Required only if borrower is EXEMPT from paying a Funding Fee

Pages 1-2 must be complete and include all appropriate signatures and

date signed

VA Interest Rate Reduction Loan Only

Required on all loan types except non-credit qualifying VA IRRRLs

Final Truth in Lending must be signed at closing

1008 or equivalent document

Must be signed and dated by the Lender and the Borrower

New Construction Only

Notes

Notes

If not using MERS

Single Premium only

With Transfer Letter

With Transfer Letter

If applicable

If applicable

If applicable

96 HUD-1 (Final)

# Closing Document(s) Agency FHA VA Stack

97 Loan Payment History

98 Mortgage/Deed of Trust

99 Name Affidavit

100 Note

101 Notice of Assignment, Sale or Transfer

102 Riders

103 Right of Rescission Notice

104 Subordination Agreement

105 Survey

106 Tax Information Sheet

107 Termite Report

108 Title Commitment

109W-9/W-8 Request for Taxpayer

Identification Number and Certification

110 Wiring Instructions or Bailee Agreement

If applicable

If applicable

Original with appropriate endorsement

Notes

Date

Notes:

WMC Reviewer Signature:

If Applicable

Signed by Primary Borrower

If Applicable

If Applicable

If Applicable