Wholesale Broker Guide - Home Loans

1 This document is confidential, proprietary and its subject matter is the sole property of Plaza home Mortgage, Inc. and is intended for its use only. Any unauthorized use, dissemination, or distribution of this document or its subject matter is strictly prohibited. Terms and conditions of programs and guidelines are subject to change at any time without notice. This is not a commitment to lend. Plaza home Mortgage, Inc. is an Equal Housing Lender. 2022 Plaza home Mortgage, Inc. Plaza home Mortgage and the Plaza home Mortgage logo are registered trademarks of Plaza home Mortgage, Inc. All other trademarks are the property of their respective owners. All rights reserved. Plaza NMLS 2113. Wholesale Broker Guide WH-GD-001 rev. 28 Page 1 of 82 1/27/2022 Wholesale Broker Guide Revised 1/27/2022 SECTION 1 CONTRACT.

2 6 Broker Contractual Obligations .. 6 Rules of Interpretation .. 6 Relationship of Parties Under This Guide .. 7 Power of Attorney .. 7 Broker s Responsibility .. 7 Discretionary Relationship .. 7 Confidentiality .. 7 SECTION 2 PRIVACY OF CONSUMER FINANCIAL INFORMATION .. 8 Safeguards .. 8 Unauthorized Access to Consumer Information .. 8 Confidentiality .. 8 SECTION 3 Broker ELIGIBILITY .. 9 Ineligible 9 Broker Obligations .. 9 Reporting Requirements .. 9 Audits and Inspections .. 10 Disclosure of Information .. 10 Maintenance of Records .. 10 Notification of Changes in Broker Status .. 10 SECTION 4 QUALITY CONTROL .. 11 Internal Quality Control .. 11 Notice .. 11 Best Practices for Quality Control .. 11 SECTION 5 REPRESENTATIONS, WARRANTIES & COVENANTS CONCERNING Broker .

3 12 Licensing, Due Organization, Good 12 Authority .. 13 No Conflicts .. 13 This document is confidential, proprietary and its subject matter is the sole property of Plaza home Mortgage, Inc. and is intended for its use only. Any unauthorized use, dissemination, or distribution of this document or its subject matter is strictly prohibited. Terms and conditions of programs and guidelines are subject to change at any time without notice. This is not a commitment to lend. Plaza home Mortgage, Inc. is an Equal Housing Lender. 2022 Plaza home Mortgage, Inc. Plaza home Mortgage and the Plaza home Mortgage logo are registered trademarks of Plaza home Mortgage, Inc. All other trademarks are the property of their respective owners. All rights reserved.

4 Plaza NMLS 2113. Wholesale Broker Guide WH-GD-001 rev. 28 Page 2 of 82 1/27/2022 Ability to Perform .. 13 No Adverse Action .. 13 No Consent Required .. 13 No Untrue Information .. 14 Origination .. 14 Compliance with Business and Property Laws .. 14 Compliance with Program Documents and 14 No Defenses .. 14 SECTION 6 REPRESENTATIONS/WARRANTIES BY Broker REGARDING INDIVIDUAL Loans .. 14 Mortgage Loans as Described .. 14 No Redemption .. 14 Appraiser Independence Requirements .. 15 Origination Compliance .. 15 Location and Type of Property .. 15 Origination Terms .. 15 Occupancy Certifications .. 15 Mortgaged Property Undamaged/No Condemnation .. 15 No Other Hazards .. 16 No Planned Refinance .. 16 Error or Fraud.

5 16 Adverse Selection .. 16 Predatory Lending/ home Ownership and Equity Protection Act/High Cost Loans .. 16 Fair Lending/Equal Credit Opportunity Act .. 16 Fair Pricing Policy .. 16 Prohibited Practices .. 17 Additional Broker Representations and Warranties Relating to Reverse Mortgages .. 17 Responsible Lending/Benefit to Borrower/Capacity to Repay .. 17 State Specific Restrictions .. 17 Maine 17 New Jersey Property .. 18 New York Properties .. 18 Broker Compensation Policy .. 18 loan Originator Compensation .. 18 Third Party Processing Fees .. 18 Private Transfer 19 This document is confidential, proprietary and its subject matter is the sole property of Plaza home Mortgage, Inc. and is intended for its use only.

6 Any unauthorized use, dissemination, or distribution of this document or its subject matter is strictly prohibited. Terms and conditions of programs and guidelines are subject to change at any time without notice. This is not a commitment to lend. Plaza home Mortgage, Inc. is an Equal Housing Lender. 2022 Plaza home Mortgage, Inc. Plaza home Mortgage and the Plaza home Mortgage logo are registered trademarks of Plaza home Mortgage, Inc. All other trademarks are the property of their respective owners. All rights reserved. Plaza NMLS 2113. Wholesale Broker Guide WH-GD-001 rev. 28 Page 3 of 82 1/27/2022 Document Signed Using E-Sign Technology .. 19 Ability to Repay and Qualified Mortgages (ATR/QM), Residual Income Evaluation .. 19 SECTION 7 RESPONSIBLE LENDING REPRESENTATIONS, WARRANTIES, COVENANTS.

7 20 HOEPA/Section 32 Loans .. 20 State and Local High Cost Loans .. 21 Agency 5% Limit on Point and Fees Investment Properties .. 21 Higher Priced Loans .. 21 Prohibited Terms and Practices .. 22 Survival .. 23 SECTION 8 DEFAULTS AND REMEDIES, EARLY PAY OFF .. 23 Defaults .. 23 Early Pay Off and Premium Recapture First Lien Transactions .. 24 Early Pay Off and Premium Recapture Second Lien Transactions .. 24 Reverse Mortgage Early Payoff and Premium Recapture .. 24 SECTION 9 PLAZA EXCLUSIONARY LIST .. 25 No Individuals or Businesses on the Exclusionary List .. 25 Prohibited Settlement Agents .. 25 SECTION 10 TERMS OF USE AND ELECTRONIC SERVICES .. 26 Overview and Incorporation of Terms of Use .. 26 General Terms and Conditions of Use.

8 26 SECTION 11 loan INTEGRITY .. 29 Communications Regarding Legal Issues and Plaza Policies .. 29 Indemnification .. 29 Set Off .. 30 Suspension Inactivation or Termination .. 30 SECTION 12 FRAUD .. 30 Overview .. 30 Types of Fraud .. 31 Fraud Indicators or Red Flags .. 31 SECTION 13 loan DOCUMENTS .. 38 loan Application .. 38 Occupancy .. 38 Borrower Contact .. 39 Credit Report .. 39 Verifications of Rent (VOR) .. 40 This document is confidential, proprietary and its subject matter is the sole property of Plaza home Mortgage, Inc. and is intended for its use only. Any unauthorized use, dissemination, or distribution of this document or its subject matter is strictly prohibited. Terms and conditions of programs and guidelines are subject to change at any time without notice.

9 This is not a commitment to lend. Plaza home Mortgage, Inc. is an Equal Housing Lender. 2022 Plaza home Mortgage, Inc. Plaza home Mortgage and the Plaza home Mortgage logo are registered trademarks of Plaza home Mortgage, Inc. All other trademarks are the property of their respective owners. All rights reserved. Plaza NMLS 2113. Wholesale Broker Guide WH-GD-001 rev. 28 Page 4 of 82 1/27/2022 Assets .. 40 Verification of Employment (VOE) .. 41 Paystub .. 41 W-2 .. 42 Tax Returns .. 42 Phantom Employment, Credit, Income .. 43 Cancelled Checks .. 43 Appraisal .. 44 Sales Contract .. 44 Preliminary Title Report .. 45 Escrow/Closing Instructions .. 45 SECTION 14 REGISTRATION AND LOCK COMMITMENTS .. 46 Licensing .. 46 Escrow Waivers.

10 46 Locked loan Changes .. 46 Rate Lock Extensions .. 46 Rate Lock/Commitment Expirations .. 46 Intra-Day Pricing Changes .. 46 Error Notification .. 47 SECTION 15 WITHDRAWING OR CANCELING Loans .. 47 Declined Loans .. 47 SECTION 16 SUBMITTING Loans TO PLAZA .. 47 SECTION 17 INSURANCE AND SURVEY REQUIREMENTS .. 48 General Hazard Insurance Requirements .. 48 Earthquake 53 Lava Zone Insurance .. 53 Mine Subsidence Insurance (Pennsylvania only) .. 53 Flood Insurance .. 54 Wind Storm Insurance .. 57 Liability Insurance for PUDs and Condominiums .. 57 Fidelity or Employee Dishonesty Insurance for Condominiums .. 57 Mortgage Insurance (MI) .. 58 Title Insurance .. 59 Survey Requirements .. 63 SECTION 18 POWER OF ATTORNEY .. 64 This document is confidential, proprietary and its subject matter is the sole property of Plaza home Mortgage, Inc.