Loan Funding Procedures

Below is a brief explanation of the funding process between our company and the mortgage company. In order to start the mortgage funding process with the mortgage company, proper documentation must be sent to us prior to funding each individual loan.

1. Request for purchase detailing summary of transaction from mortgage company.
   
   
2. Required documents to fund:
   
   
   1. Completed loan application (Form 1003)
   2. Appraisal - first two pages
   3. Firm Commitment by D.E. Underwriter (FHA), VA Loan Analysis by VA Automatic Underwriter (VA), Investor Underwriter, LP or DU approvals from authorized channels (FNMA, FHLMC)
   4. Copy of Borrower's credit report
   5. Insured closing letter in the name of the originator from the title company
   6. Wiring instructions
   7. Copy of hazard insurance policy or binder of coverage
   8. Flood certification
   9. Mortgage insurance or guaranty, certificate of eligibility (if applicable)
   10. Purchase commitment from investor - investor lock
   
   
3. Funds are wired directly to the closing agent along with specific funding instructions.
   
   
4. Closing agent is to fax a copy of the signed note on the date of the closing, and overnight the following documents to us within 24 hours.
   
   
   1. Original signed note
   2. Certified copy of deed of trust
   3. Copy of title commitment
   4. Copy of HUD-1
   5. Copy of Truth-In-Lending

1. Original signed note is to be sent directly from the closing agent back to the bank. The note is to be endorsed in blank.
   
   
2. Original Assignment of Deed of Trust in blank, plus the assignment to investor is sent with the note to us.

1. Upon receipt of note, a bailee letter is prepared and is sent with the note to the investor for payment.
   
   
2. We book the loan at the negotiated rate.

1. Funds will be wired to us from the investor.
2. The investor is to send the purchase advice confirming the borrower that is paying off.
3. Calculate the payoff from the date of closing to date of receipt of wire.
4. Credit loan for payoff amount at the negotiated rate.
5. Credit the loan income account for the difference between the negotiated rate and NYP plus the negotiated rate.
6. We deduct the appropriate fees from the wire and deposits into the mortgage company loan income account.
7. Credit the mortgage company operating account for the remainder of the wire.
8. Make a copy of the transaction and fax or e-mail it to the mortgage company for their records.