NATTYMAC EMERGING BANKER PROGRAMnattymac.com/nattymacemergingbankerprogram.pdf · EMERGING BANKER...

NATTYMAC

®

A WHOLLY-OWNED WAREHOUSE BANKING SUBSIDIARY OF HOME POINT FINANCIAL CORPORATION

EMERGING BANKER PROGRAM

Effective June 2017

A Home Point Financial Company

NATTYMAC: FASTER, SMARTER, FRIENDLIER™

®NATTYMAC.COM HOMEPOINTFINANCIAL.COM

Home Point Financial Corporation. NMLS Unique ID No.7706 (www.nmlsconsumeraccess.org). 1194 Oak Valley Drive, Suite 80 Ann Arbor, MI 48108. Toll- Free Tel: 888-616-6866.Arizona License No. 0930854; Loans made or arranged pursuant to a California Finance Lenders Law license; Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act License No. 4131048;Georgia Residential Mortgage Licensee No. 33540; Illinois Residential Mortgage Licensee License No. MB.6760891; Kansas-Licensed Mortgage Company License No.SMC.0025367; Massachusetts Mortgage Lender License No. ML7706; Nebraska Mortgage Banker License; Licensed by the New Hampshire Banking Department; Licensed by the New Jersey Department of Banking and Insurance; Licensed Mortgage Banker—N.Y.S. Department of Financial Services; North Dakota Department of Financial Institutions-Money Broker License No. MB102834;Oklahoma Mortgage Lender License No. ML010597; Rhode Island Licensed Lender; Washington Consumer Loan Company License No. CL-7706. Some products may not be available in all states. Advertised information, rates and pricing are subject to change without prior notice and may not be available at commitment or lock-in. This is not a commitment to lend. Other restrictions may apply. All rights reserved. © 2017 Home Point Financial Corporation.

Mortgage banking firms, Emerging Mortgage Bankers,

and approved and qualified Home Point Financial

correspondent customers can apply to gain access

to NattyMac, Home Point Financial’s wholly-owned

warehouse lending subsidiary. Lenders may fund loans on

a delegated or prior-approved basis, depending on their

approval with Home Point Financial, or any of the large list

of approved take-out investors maintained by NattyMac.

We deliver better overall loan execution and process

savings for our customers by turning their warehouse line

faster and making the process easy.

Home Point’s Early Purchase Facility, or EPF, allows prior-

approved, delegated and hybrid correspondents that fund

on a NattyMac line the ability to receive higher advance

rates and lower borrowing costs for loans sold to Home

Point Financial. NattyMac’s advance rates allow our

customers to borrow up to 100% of the note amount on

Conventional and Government Home Point Financial loans

and for Non-Agency Jumbo loans as well.

Since 2004, NattyMac has been an efficient and effective

warehouse lender. We’re focused on financing prime

mortgage collateral, providing fast, accurate same-day

wires and extended hours of operation.


FUND MORE LOANS WITH NATTYMAC

◾ WAREHOUSE LINES OF CREDIT BASED ON NET WORTH

• Leverage Ratio as High as 25:1

• Establishes Line Size and Pricing

• No Limit on EPF

◾ EARLY PURCHASE FACILITY (EPF) WITH HOME POINT FINANCIAL

• Once Note and Closed Loan Package Received, Loan Transfers to EPF

• Loan Cleared from Warehouse Line of Credit

• Additional Funding Ability Created

• Clients Receive More Leverage and Can Fund

More Volume with Lower Capital Requirements

◾ OTHER INVESTORS

• Loans Can Be Sold to Any Approved Investor

• NattyMac Encourages Our Clients to Have More than One Warehouse Line, and to Sell Loans to Multiple Investors




EMERGING BANKER SETUP PROCESS (SUMMARY)

1. DECIDE TO BECOME A BANKER

• Fund Loans in Your Name

• Take Control of the Closing Process and Timeline

2. OBTAIN LENDER LICENSE

3. PREPARE PROPER FINANCIAL STATEMENTS (AUDIT OR COMPILATION)

4. APPLY TO BECOME APPROVED FOR A NATTYMAC WAREHOUSE LINE

5. EXECUTE HOME POINT CORRESPONDENT AGREEMENT

6. OBTAIN E&O AND FIDELITY BOND COVERAGES

7. ESTABLISH AIR COMPLIANT OR AMC PROCESS FOR APPRAISAL ORDERING

8. SELECT YOUR FULFILLMENT PARTNER TO PROVIDE BACK END SUPPORT: NATTYMAC MAINTAINS AN APPROVED LIST

9. SET UP MORTGAGE INSURANCE MASTER POLICY

10. HIRE APPROPRIATE STAFF TO MANAGE COMPLIANCE, CREDIT DECISIONING AND REGULATORY REPORTING

11. TRAIN WITH NATTYMAC AND YOUR FULFILLMENT PARTNER

12. LOCK AND FUND YOUR OWN LOANS




EMERGING BANKER SETUP PROCESS (DETAIL)

The diagram below shows the steps a Broker would take to become a Correspondent through the program.

Em

erging

Banker Startup

Pro

cess — 30

to 6

0 D

ays

BROKER NATTYMAC HOME POINTMORTGAGE

INSURANCEBROKER MERS FULFILLMENT

PARTNERMI

COMPANY

Set up Master Contract

(4-5 Weeks)Develop Contract

Train Banker Staff

Process Account Request

(4 Weeks)

Client Activates (After First

Closing)

Process E&O and Fidelity Bond Application

Process Correspondent

Application (already approved

as broker)

Train Banker Staff

Activate Client Access to EB Submissions

Process Warehouse Line Application

Train Banker Staff

Activate Warehouse Line

Set up Direct Deposit Account

(DDA)

Decide to Become a Banker

Obtain State Licensing as Lender

Obtain Financials and Meet Minimum

Requirements

Apply to Selected Warehouse, Investor and

Fulfillment Providers

Ready to Submit Loan

Blank M

ortg

age/

Deed

of Trust F

or P

hase 2

Navigator Lending Solutions19345 US Highway 19 NClearwater, FL 33764727.536.2000www.navpros.com

Titan Lenders Corp.5353 West Dartmouth AveSuite 50Denver, CO 80227866.412.9180www.titanlenderscorp.com

MSYA McGlinchey Stafford and Youngblood Associates LLP2711 N Haskell AveLB25, 27th FloorDallas, TX 75204214.257.1832www.msyalaw.com

Ap

proved

Po

licy and B

ond

ME

RS

Num

ber

No

tificatio

n

Sig

ned

Co

ntract

Approved?




EMERGING BANKER RESPONSIBILITIES

1. MORTGAGE BANKING FUNCTIONS MUST BE PERFORMED BY:

• Emerging Banker

• Fulfillment Partner

• Approved Investor

• NattyMac

2. MORTGAGE BANKING ACTIVITIES

• Loan Application and Approval

• Making a Credit Decision

• Managing Compliance Risk

• Closing and Funding

• Selling Closed Loans

• Compliance Reporting and Monitoring

3. EMERGING BANKER RESPONSIBILITIES

• See Services Menu




SERVICES MENU

Activity

Key: = New Activity for Emerging Banker

X = Responsible Party BA

NK

ER

FULF

ILLM

EN

T

PAR

TNE

R

APP

RO

VED

INV

ESTO

R

NA

TTY

MA

C

APPLY AND UNDERWRITETake Loan Application XCollect Documents XSend Disclosures XPull Tax Transcripts (through Home Point’s site) XProvide Appraisal through own AMC XOrder Flood XFraud Check XProvide MERS Number (Home Point until EB has ability) X XUnderwrite Loan X XOrder MI (Home Point until EB has ability) X XReview POA XRe-Disclose if Loan Changes XResolve Underwriting Conditions XCLOSE AND FUNDRequest Closing and Provide UW Documents X XPre-Closing Due Diligence and Compliance Audit X XComplete Final Verbal VVOE X XResolve Compliance Issues - Change Fees, Re-Disclosure X XDraw Documents X XPrepare Final HUD X XDeliver Closing Package X XOrder Funds X XReview Signed Closing Package XRequest Funds X XSend Funds to Closing Table XRegister and Transfer with MERS X X

Activity

Key: = New Activity for Emerging Banker

X = Responsible Party BA

NK

ER

FULF

ILLM

EN

T

PAR

TNE

R

APP

RO

VED

INV

ESTO

R

NA

TTY

MA

C

SELL CLOSED LOANSubmit Closing Package to Investor X XResolve Purchase Conditions X XIssue Purchase Advice XSubmit Purchase Advice to Warehouse X XMove Loan Off Client Warehouse upon Receipt of Physically Signed Note and Funds Receipt X

Send Goodbye Letter to Borrower X XTransfer Flood, Hazard, Wind, MERS X XCollect First Payment X XHandle First Payment Exceptions if Investor Changes X XMake LPMI Payment XActivate MI (by ordering party) X XRemit MIP, USDA Guaranty, or VA Funding Fees XNet Fund any Required Insurance from Correspondent Purchase Advice (if applicable) X

Submit Loan for Insuring to FHA, VA, USDA XFinal Doc Follow Up X XOTHER - GENERAL WORK, NOT SPECIFIED TO ONE LOAN TRANSACTIONHMDA and other Compliance Reporting X X1098 Statement X XMonitor Warehouse Line Balance X XKeep Records of all Loan Documents X XPrepare GAAP Compliant Financials for Mortgage Bankers X

(More Than One Party Selected Indicates Either May Be Responsible)




EMERGING BANKER BUSINESS MODEL

The diagram below shows the areas impacted by the program

HP/INVESTOR - FILE INTAKE AND UW

Start LoanFile Intake

Underwrite

Clear Conditions

Flood Fraud Guard

MERS*

Order MI*

POA and Trust Review

HP/INVESTOR - PA PURCHASE REVIEW

Quality Assurance

Check

Clear Conditions

Closing Pkg Purchase Review

Issue Purchase Advice

HP/INVESTOR - SECONDARY

Issue Purchase Advice

MIP/VA Guarantee Remittance

Deliver Loan

LPMI

HP/INVESTOR - SERVICING

Collect First Payment

CLOSING SERVICES - FULFILLMENT PROVIDER

Pre-Closing Due Diligence and

Compliance Audit

Closing

Draw Documents (DOO or other

provider)

Review HUD

Deliver Closing Package

Order Funds

Funding

Review Signed Images

Register with MERS

Clear Purchase

Conditions

Get/Send Purchase Advice

Reconcile Accounts

Create Client Package

Send Goodbye Letter to Borrower

Transfer Flood, Hazard, Wind,

PMI, MERS

Generate 1098 Statement

Handle First Payment Exceptions

Compliance Reporting

NATTYMAC - WAREHOUSE

Process Wire Request

Move Loan to Early Purchase

Facility

Payoff Advice

US BANK - CUSTODIAN

Review Closing Package

Manage Note

TITLE COMPANY/CLOSING AGENT

Prepare Final HUD

Execute Closing Package

Submit EB Loan

Disclosures Initial and Updated

Create Loan Application

Collect Borrower Documents

Provide Underwriting Conditions

Monitor Warehouse

Line Balance

Final Verbal VVOE

Request Closing

Clear Closing

ConditionsReview

Final HUD

Assist with Purchase

Conditions

Receive Financials and

Doc CopiesEnd

EMERGING BANKER

Receipt of Signed NoteSigned Documents

(Paper)

Signed ImagesUnsigned Package

Funds

*Temporary


*Transitions to EB once approvedHome Point Financial Corporation. NMLS Unique ID No.7706 (www.nmlsconsumeraccess.org). 1194 Oak Valley Drive, Suite 80 Ann Arbor, MI 48108. Toll- Free Tel: 888-616-6866.Arizona License No. 0930854; Loans made or arranged pursuant to a California Finance Lenders Law license; Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act License No. 4131048;Georgia Residential Mortgage Licensee No. 33540; Illinois Residential Mortgage Licensee License No. MB.6760891; Kansas-Licensed Mortgage Company License No.SMC.0025367; Massachusetts Mortgage Lender License No. ML7706; Nebraska Mortgage Banker License; Licensed by the New Hampshire Banking Department; Licensed by the New Jersey Department of Banking and Insurance; Licensed Mortgage Banker—N.Y.S. Department of Financial Services; North Dakota Department of Financial Institutions-Money Broker License No. MB102834;Oklahoma Mortgage Lender License No. ML010597; Rhode Island Licensed Lender; Washington Consumer Loan Company License No. CL-7706. Some products may not be available in all states. Advertised information, rates and pricing are subject to change without prior notice and may not be available at commitment or lock-in. This is not a commitment to lend. Other restrictions may apply. All rights reserved. © 2017 Home Point Financial Corporation.


NATTYMAC PROGRAM GUIDE

Emerging* Preferred Elite Premier

Net Worth $75,000 Minimum $100,000-$999,999 $1,000,000-$2,499,999 $2,500,000+

Base Rate 30-Day LIBOR plus Margin with Negotiated Floor

Warehouse Line Size $1,000,000 – $30,000,000 Maximum Line Size (Leverage to 25:1)

Eligible Loans FNMA, FHLMC, FHA, VA, USDA, Home Point Non-Agency/Jumbo, Home Point 203(k)®

Underwriting Authority Prior Approved** Delegated & Prior Approved

Eligible Investors All Approved Investors

Delivery Options Best Effort Best Effort & Mandatory

Advance Rates Home Point: 100% Home Point Non-Agency: 100% Approved Investors: 99%

Package Fees Negotiable

E&O Fidelity Bond

Minimum coverage required is based on warehouse line size.

Warehouse Facility Size Minimum Coverage Amount

$1,000,000 - $4,999,999 $300,000

$5,000,000 - $9,999,999 $500,000

$10,000,000+ $1,000,000

DDA Deposit $2,500 Per $1M in LOC, $5,000 Minimum

Financial Reporting Must be GAAP Compliant, Covenants are Verified Quarterly and Maintained Monthly

*Emerging Banker partners utilize a fulfillment service for Closing and Post Funding Services **Delegated approval to $500,000 may be allowed on an exception basis




JENNY CASTEELClient Manager-Eastern Region

Ph: [email protected]

ROXIE MONTOYASenior Client Manager-Western Region


NEXT STEPS

1. DISCUSS PROGRAM DETAILS WITH:

• Your Home Point Financial Account Executive

• Your NattyMac Vice President of Sales

2. MAKE APPLICATION WITH NATTYMAC

3. TAKE CONTROL OF YOUR FUTURE

• Close Loans Faster

• Own Your Service Levels

• Be the Lender




JENNY CASTEELClient Manager-Eastern Region


ROXIE MONTOYASenior Client Manager-Western Region


NATTYMAC EMERGING BANKER PROGRAMnattymac.com/nattymacemergingbankerprogram.pdf · EMERGING BANKER...

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