The Advantages of Working with
U.S. Bank Home Mortgage Wholesale
Features
Benefits
Staff with Broker Experience
Knowledge about origination side of business - assures we can fulfill your needs
Full Product Menu
"One-stop shopping" - saves you time & expense
In-house Underwriters
Fast Decisions - maximize your profit opportunities
Delegated MI Underwriting
Just one file needed for underwriting - saves your staff's time
Choice of Lock In Periods
Flexibility - allows you to control profits
Competitive Prices
Reliable earnings - strengthens your financial position
Table Funding
Immediate payment - frees up funds for new originations
Purchase Funded Loans
Fast 24 - 48 hr. turnaround - promptly returns your funds for new originations
Industry Representation
Strengthens wholesale industry - improves correspondent opportunities
APPLICATION FOR LENDER APPROVAL
Corporate Name:
Address (Main Office):
State:
City:
Zip Code:
State of Incorporation (if applicable):
Date of Inception ( or Incorporation):
President:
Phone: (
)
Primary Contact Person:
Phone: (
)
Secondary Contact Person:
Phone: (
)
Facsimile Telephone Number: (
Tax ID #:
)
Branch Office Locations:
States Licensed in:
Funding Method requested: Close in USBHM name________ Table Funding
Preferred method to receive rates:
Fax
Purchase Funding
E-mail
Current Status:
YES
NO
FHA Approved Mortgagee
FHA ID #:
FHA Direct Endorsed Mortgagee
(circle one) Unconditional or Conditional
FHA Compare Ratio
%
(for state and location)
Participant in FHA DE Authorized
Agent/Sponsorship Program
VA Approved Mortgagee
VA ID #:
VA Automatic Mortgagee
FNMA Approved Mortgagee
FHLMC Approved Mortgagee
PLEASE PROVIDE A COPY OF ALL AGENCY APPROVALS.
(03/03/06)
Page 1 of 4
Has an application by your institution ever been denied by any of the preceding? Yes
If Yes, state the reasons for this denial.
No
$
Residential Loans Sold (Past Year): Units:
%FHA/VA
(
%CONV
Residential Loans Sold (Current Year): Units:
%FHA/VA
(
%CONV
%ARM)
%PURCHASE _____%REFI)
%ARM)
%PURCHASE _____%REFI)
$
References:
Current/Previous Investor:
Contact:
Phone:
Current/Previous Investor:
Contact:
Phone:
Mortgage Insurance Company:
Contact:
Phone:
It is further understood that U. S. Bank N.A. may make reference inquiries and that it may, at the sole expense of U. S.
Bank N.A. order credit reports and/or independent background investigations on the applicant and/or principal officers.
The following information is used for the purpose of verifying this application with outside sources.
1.
Principal Officer
Date of Birth
Title
Social Security
Residential Address
% of ownership
2.
Principal Officer
Date of Birth
Title
Social Security
Residential Address
% of ownership
3.
Principal Officer
Date of Birth
(03/03/06)
Title
Residential Address
Social Security
% of ownership
Page 2 of 4
Anti-Money Laundering Program Certification
Execution of this application certifies the implemented an OFAC Alert screening process and Anti-Money Laundering
Program that meets the following requirements:
•
•
•
•
Seller to provide a “Customer Identification Notice” to each applicant at the time of application advising them of
anti-money laundering activities.
Seller to obtain customer’s complete name, middle initial, address, tax ID number and date of birth.
Face to face applications: Seller must identify their customers by reviewing driver’s license, green card, passport,
etc and document in the loan file that the identity has been verified. (Mail and phone applications will not require
any additional documentation other than what is customary in the normal course of business.)
Seller to check OFAC lists and identify matches
Fax Consent Certification
By providing the following fax number(s) below, authorization is given to receive faxes sent by or on behalf of U.S. Bank
Home Mortgage (and its subsidiaries and affiliates). This consent remains in effect until such consent is withdrawn in
writing.
I affirm that all answers and information submitted in this application are true and correct. I hereby authorize U. S. Bank
N.A. at its discretion, to verify the information with any other sources, and I hereby waive any cause of action or claim I
may have against such source with respect to any information they may provide.
By:
Name and Title:
Date Signed:
When completed please return application package to your Account Executive.
Please provide the following using the checklist below:
Executed "Agreement for Purchase of Mortgage Loans" (two originals).
1.
2.
Resolution of Board of Directors (if applicable - form enclosed).
3.
Seller's most recent quarter and most recent two years audited fiscal financial statements.
(Checklist continued on next page)
(03/03/06)
Page 3 of 4
4.
Evidence of Fidelity Bond and Errors and Omission Insurance. (If applicable)
5.
Resumes of Principle(s)
6.
Seller's Appraisal Policy
7.
Copies of Seller's Closing Protection Letters. (only required on table funding request)
8.
Seller's Quality Control Policy.
9.
Copy of state license for each state originating loans. Copy of Surety Bond (If applicable)
10.
Limited Power of Attorney (Table Funded and Purchase Funded only)
11.
List of all branches and their addresses.
12.
Primary contact individuals and their telephone numbers / Email address for price commitments,
underwriting, and purchasing questions.
13.
Disclosure of correspondent / broker owned escrow and title companies, appraisal firms, credit agencies,
and real estate brokers.
Wire Transfer Information: (Purchase Funded Only)
Depository Name:
City:
Address:
ABA #:
/
State:
/
For Credit To:
Lender:
Account #:
(03/03/06)
Page 4 of 4
U.S. BANK HOME MORTGAGE
Bloomington/Nevada (Wholesale)
‘BROKER INSTITUTION’ SECURITY
ADD/CHANGE/DELETE
Company ‘Broker’ Full Name:
Address:
City/State/Zip:
Primary Contact Name:
Phone #:
Alt Ph#:
Fax #:
Internet Email Address:
FHA Lender ID #:
FHA Sponsor ID #:
Account Executive:
USB Broker Code:
Conventional Delegated: Y / N
Type of Institution: Check ONLY One (1)
_________ Broker Company
_________ Broker Branch Office
Source of Business:
__________ Wholesale – (Bloomington MN #0050/Nevada MO #0052)
__________ CUSBN – (Bloomington MN #0500/Nevada MO#0520/Bedford OH #0490)
Requested Vendor Services: Check multiple if needed
_________ Equifax Credit
Acct # ___________________ Login: ____________ P/W: ____________
__________ Fannie Mae DU
Acct # ___________________ Login: ____________ P/W: ____________
__________ Freddie LP Classic
Acct # ___________________ Login: ____________ P/W: ____________
**Please complete form and return to Attn: Kevin Fyhrlund 1 of 2 ways listed below***
Via, US Mail To:
• U.S. Bank Home Mortgage-Wholesale
1550 American Blvd. East, Suite 300
Bloomington, MN 55425
Via, FAX:
• Fax #800-454-7928
Please return ALL FORMS TOGETHER. Thank you For Choosing US Bank Home Mortgage!
U.S. BANK HOME MORTGAGE
Bloomington/Nevada
‘EXTERNAL USER’ SECURITY
ADD/CHANGE/DELETE
Company Name:
First Name:
MI:
Last Name:
Phone #:
Internet Email Address:
Fax#:
Check ONLY One (1):
Add (add new user)
Change (change user status)
Delete (delete users access to website)
Check ONLY One (1):
Wholesale (Bloomington MN #0050/Nevada MO #0052)
___________CUSBN (Bloomington MN CUSBN#0500/Nevada MO CUSBN#0520/Bedford OH CUSBN#0490)
Check ONLY One (1):
Broker (Capability to view only your pipeline)
Broker Manager (Capability to view your whole companies pipeline)
_________Broker-Loan Officer (Can only utilize web site links)
_________Broker Branch Administrator (Capability to set up all Users for their Institution)
**Please complete form and return to Attn: Kevin Fyhrlund 1 of 2 ways listed below***
Via, US Mail To:
• U.S. Bank Home Mortgage-Wholesale
1550 American Blvd. East, Suite 300
Bloomington, MN 55425
Via, FAX:
• Fax #800/454-7928
Please return ALL FORMS TOGETHER. Thank you For Choosing US Bank Home Mortgage!
Sample
APPRAISAL POLICY STATEMENT
Purpose: (Name of institution
) provides real estate financing for the
communities in which it operates. Major importance is placed on making economical,
nondiscriminatory home mortgages available for the residents of these communities. Quality
originations of real estate home mortgages is critical to the stability and predictability of earnings
for (name of institution
). Maintenance of quality loan originations depends
upon various elements of sound underwriting of which quality real estate appraisals are a vital
element.
Statement of Policy: All appraisals prepared for (name of institution
at a minimum:
) must
♦
Comply with the standards of the Uniform Standards of Professional Appraisal
Practice (USPAP), promulgated by the Appraisal Standards Board of the
Appraisal Foundation, located at 1029 Vermont Ave., NW, Washington DC,
20005.
♦
Be written and contain sufficient information and analysis to support the decision
to engage in the transaction.
♦
Be based upon the definition of market value as set forth in the USPAP.
♦
Be performed by a State licensed or certified appraiser.
It is against (name of institution
)’s policy to discriminate against a
loan applicant or borrower because of race, color, religion, national origin, sex, marital status,
handicap, familial status or age, the fact that all or part of an applicant’s income comes from any
public assistance program or because the applicant has exercised any right under the Consumer
Protection Act or any similar state law.
This policy will be periodically reviewed and amended by the Board of Directors as necessary.
Management Directive: The Board of Directors directs management to develop procedures to
implement this policy and demonstrate their effectiveness in ensuring compliance.
This policy has been approved by the Board of Directors at its meeting dated ________.
Non-Del
03/02
U.S. BANK HOME MORTGAGE CORRESPONDENT APPROVAL PROCESS
I.
Correspondent Submits Application
II.
U.S. Bank Home Mortgage Reviews Correspondent Application
a.
b.
c.
d.
e.
III.
Review and analyze Audited Financials
Check References
Company Biography
Origination regions
Underwriting & Appraisal Guidelines
Approval Procedures
a. Review of financials by Approval Committee.
b. If acceptable, Correspondent Agreement executed by U.S. Bank Home Mortgage.
IV.
New Correspondents
a. U.S. Bank Home Mortgage’s Correspondent Representative discusses and explains program
procedures and Correspondent Lenders Manual.
V.
Loan Procedures
a. Correspondent originates mortgage loans.
b. Correspondent processes loan application.
c. Correspondent registers (or price commits) loan with U.S. Bank Home Mortgage.
d. Correspondent prepares and submits loan package to the appropriate underwriter
(depending on loan program).
e. Upon approval, the Correspondent closes the loan in their own name.
f. After closing disbursement, the Correspondent submits the closed loan package to U.S. Bank
Home Mortgage.
g. U.S. Bank Home Mortgage will review the closing package, and if requirements are met, will
fund the loan.
h. Final documents are due to U.S. Bank Home Mortgage within 90 days after
closing/disbursement date.
RESOLUTION OF BOARD OF DIRECTORS
OF
(Name of Originating Lender)
RESOLVED, That
the
, and
(Name of Officer)
(Title)
the
, and
(Name of Officer)
(Title)
the
, and
(Name of Officer)
(Title)
the
,
(Name of Officer)
(Title)
of this corporation, or any one or more of them, be and each of them hereby is authorized and
empowered to execute and deliver, in the name and on behalf of this corporation, a Master Purchase
Agreement between this corporation and U.S. Bank N.A., the form and substance of which shall be
acceptable to said officer(s) executing the same on behalf of this corporation; and that the execution of
such agreement by one or more of the officers named above shall be conclusive evidence of this
corporation's approval of the terms and conditions thereof.
CERTIFICATION
I HEREBY CERTIFY that the foregoing is a true and correct copy of a resolution presented to and
adopted by the Board of Directors of
at a meeting duly
called and held at
on the
day of
, 20
, at which a quorum was present and voting
throughout; that such resolution is duly recorded in the minute book of this corporation; that the officers
named in said resolution have been duly elected or appointed to, and are the present incumbents of the
respective offices set after their respective names; and that such resolution remains in full force and
effect on the date hereof.
Dated:
20
.
(Secretary)
U. S. BANK HOME MORTGAGE CONTACT PERSON CHECKLIST
Correspondent:___________________________________________________________
Correspondent Phone #:_____________________ Fax #:________________________
Address:________________________________________________________________
City:______________________
State:_____________ Zip:_______________
Name / Telephone #:
E-mail address:
Primary Contact:
Marketing/Pricing:
Status of Pipeline:
Closing Supervisor:
Post Closing:
Processor Supervisor:
Receptionist:
Whose "Attention" to send Memos/Updates:_________________________
CHECK ONE:
______PURCHASE FUNDED ________TABLE FUNDED
How did you hear about U.S. Bank Home Mortgage?
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
PLEASE COMPLETE THIS FORM AND RETURN IT WITH THE COMPLETED
CORRESPONDENT APPLICATION.
MIDEX AUTHORIZATION
______________________________________________________________ (“Seller”)
acknowledges that it is in the best interest of both Applicant and U.S. Bank N.A.
(“Buyer”) for the Buyer to perform due diligence concerning Applicant’s background and
experience. Seller further acknowledges that Seller benefits from the efficiencies in the
due diligence process that are possible when Buyer and other similarly situated entities in
the mortgage industry exchange information about their experiences in doing business
with individuals and companies such as Seller. Therefore, Seller hereby consents and
gives Buyer permission to submit the name of Seller’s company and any and all
employees of that company for screening through any and all mortgage industry
background databases, including, without limitation, databases operated by Mortgage
Asset Research Institute, Inc., such as the Mortgage Industry Data Exchange (“MIDEX”).
Seller hereby releases and agrees to hold harmless Buyer, Mortgage Asset Research
Institute, Inc., all MIDEX subscribers, and any trade associations that endorse the
MIDEX system from any and all liability for damages, losses, costs, and expenses that
may arise from the reporting or use of any information submitted by Buyer or any other
MIDEX subscriber to Mortgage Asset Research Institute, Inc., recorded in the MIDEX
system, and used in any way by Buyer or any other MIDEX subscriber.
Seller:
Address:
By:
Its:
Date:
LIMITED IRREVOCABLE POWER OF ATTORNEY
_______________________________________________________ a _____________________________(__________)
hereby grants to U.S. Bank N.A. (USB) a Limited Irrevocable Power of Attorney and hereby irrevocably makes,
constitutes and appoints USB and all of its officers, and such other USB employees as any of USB’s officer may designate
from time to time the true and lawful attorney-in-fact of
any of whom may act alone for
for the
following limited purposes of:
1. To sign, endorse, receive and apply the proceeds of any checks or draft
payable to
, but received by USB after the transfer of the loans from
to USB, pursuant to the Correspondent Mortgage Purchase Agreement between the parties dated
, and relating to any loan included is such sale;
2. To execute, modify, amend or revise, in the name of
, and record any Assignments, for the
purpose of completing or correcting such Assignment and/or enabling it to be recorded in the
appropriate public record;
3. To execute, in the name of _______
and record any Satisfaction of Mortgage for any
mortgage transferred from
____ to USB pursuant to the above-identified Correspondent
Mortgage Purchase Agreement for the purpose of completing or correcting such Satisfaction of
Mortgage.
4. To do any and all acts necessary and appropriate in the name of ___________, to ratify and confirm
USB’s ownership of the entire interest in the Mortgages.
IN WITNESS WHEREOF,
has caused this Limited Power of Attorney to be
executed in its name by its duly authorized officers on this ____________ day of ___________________, 200_.
__________________________________
By _______________________________
Its ______________________________
By _______________________________
Its ______________________________
STATE OF ______________________________)
) ss.
COUNTY OF ____________________________)
On this _________ day of ______________, 2002, before me a notary public in for the above county and state the
undersigned officers ____________________________, and ______________________________who acknowledged
himself/herself to be the _________________________ and _________________________ of ___________________ a
________________ corporation and that he/she as such officer being authorized to do so, executed the foregoing
instrument for the purposes therein contained, on behalf of the corporation by the authority of its board of directors, and
he/she acknowledged the execution of said instrument to be the voluntary act and deed of such corporation.
IN WITNESS WHEREOF, I have hereunto set my hand and official seal.
______________________________________________
Notary Public
This Instrument Drafted by:
SAMPLE
Quality Control Review
_________________ currently performs QC/post-funding reviews on every loan. The review consists of
the following:
Loan Application
All areas of the 1003 and boxes filled in with complete information.
No changes to income information on 1003
No white out or erasures
Signed and dated by Borrower(s) or designated representative and Loan Officer
Credit Report
Any major deficiency between loan application and debts on the credit report have been addressed
with the borrower(s) and explained in remarks sections of 1003 or on a processor’s certification.
Names, social security numbers, and address information match the initial information from borrower
and the SSN on W2’s or the 1040’s (if available)
All inquiries, derogatory information and public records have been adequately answered by bureau or
explained through the use of a processor’s certification.
Income
Salaried/Non Self-Employed – Computer generated paystub
W2’s and paystubs reviewed for consistency
VOE (mailed or delivered by the loan officer to the employer) is completed by the employer and
matches W2’s or paystub
Original W2’s and paystubs requested if information inconsistent
Salaried/Non-Self Employed – Non Computerized paystub
3 months of paystubs are matched with 3 months of bank statements to verify that paychecks have
been deposited and that income is real or 1 month of employer’s cancelled checks to verify paystubs
are real)
1040’s and W2’s to verify income is real
Review FICA withholding on W2’s and paystub to see if matches current rates
VOE (mailed to employer) to match W2’s, 1040’s and paystubs.
Self Employed – Schedule C Tax Return
3 months bank statements to verify gross income is realistic
Copy of cancelled checks to show payments match page 2 of tax return (only if discrepancies are
noted
If 1099 income is the source, verify that 1099 income matches Schedule C of Tax Return
Review prior 2 year’s 1040’s and YTD P & L
Self Employed – 1065 or 1120
2 years 1040’s, 1065/1120’s, K1/U2’s, YTD P&L
Verify that income is consistent from prepared tax return to business tax return and P&L
No Income Verification
Original Application, Credit Report and final application contain no discrepancies
Borrower has been counseled that income shown on the 1003 is a realistic approximation of income
as reported to the IRS – signed by Borrower(s)
Cash assets and flow through bank accounts support stated monthly income
Deposits
VOD’s are mailed directly to financial institution
3 months bank statements to verify no large deposits when average balances are not stated on the
statement
All money to be used at closing as reserves and prepaids have been properly documents in accordance
with investor guidelines
The source of the down payment and closing costs are identified and liquid
Appraisal
Over supply, over 6 month marketing, declining value not eligible for maximum financing
Property is a legal USP and conforms to area
Additions are either permitted or not included in square footage of house
Property had average ratings
Comps are within one mile and sold within previous six months (if not, explained by appraiser)
Any single adjustment does not exceed 15% and all net adjustments do not exceed 25% (if not,
explained by appraiser)
U.S. BANK N.A.
CORRESPONDENT MORTGAGE PURCHASE AGREEMENT
, 20 , by and between U.S. Bank N.A. , having
This Agreement, entered into this
day of
their principal mortgage banking office located at 1550 American Blvd. East, Bloomington, Minnesota 55425 and
__________
(hereinafter referred to as
"Seller") having its principal office located at ___________________________________________
______________________________________.
From time to time pursuant to this Agreement, Seller shall sell and U.S. Bank N.A. shall buy mortgage loans on
residential real estate (hereinafter collectively called the “Mortgage Loans” and individually a “Mortgage Loan”).
This Agreement shall govern the sale and transfer of such Mortgage Loans by Seller to U.S. Bank N.A. and each
such Mortgage Loan shall be subject to the warranties, representations, and agreements set forth herein, subject,
however, to the terms and conditions of any separate written offering or commitment letters applying to the
Mortgage Loans.
All future purchases of Mortgage Loans by U.S. Bank N.A. shall be governed by the terms contained herein
unless the parties shall agree in writing before or at the time such purchases are made. The purchase price and
any servicing release premium paid for each Mortgage Loan shall be established by written agreement between
the parties. The terms and conditions of any separate offering or commitment letter signed by the parties hereto
and pursuant to which U.S. Bank N.A. shall agree to buy and Seller shall agree to sell any Mortgage Loan shall
survive and be deemed to be a part of this Agreement. In this Agreement, the term “Buyer” shall refer to U.S.
Bank N.A. This Agreement, and any and all representations, warranties, or covenants of Seller hereunder, may
be enforced against Seller by U.S. Bank N.A. and/or their successors and assigns.
1.
LOANS ELIGIBLE FOR PURCHASE: Seller may offer for sale to Buyer eligible VA, FHA, RHS, or
Conventional Mortgage Loans. All such Mortgage Loans shall be sold with servicing released to Buyer. All
such Mortgage Loans shall be originated and closed according to standard agency regulations as established,
and amended from time to time, by the Federal National Mortgage Association (FNMA), the Federal Home
Loan Mortgage Corporation (FHLMC), the Government National Mortgage Association (GNMA), the
Federal Housing Administration (FHA), the Veterans Administration (VA), and/or the US Department of
Agriculture Rural Housing Service (RHS), formerly Farmers Home Administration (FmHA). It is hereby
understood and agreed, for purposes of this Agreement, that the aforementioned standard agency regulations
are incorporated in and made a part hereof. All Mortgage Loans offered by Seller must be secured by
residential first-lien mortgages or deeds of trust. Seller shall be responsible for ensuring the compliance of
Mortgage Loans sold hereunder with the applicable agency regulations which may exist at the time of
purchase.
Any Loans specifically identified as being non-conforming (Jumbo), shall be originated and closed in
accordance with the specifications as outlined in the Correspondent Lending Manual.
2.
PAYMENT FOR LOANS: Payment for Loans will be made following receipt and review of closing
documentation, including evidence of compliance with underwriting requirements, FHA, VA and/or RHS
requirements, rules and regulations, as well as all Federal and State statutes, rules and regulations, including
but not limited to the Federal Truth-In-Lending Act, the Equal Credit Opportunity Act, the Fair Housing Act
and the Real Estate Settlement Procedures Act. Payment for Loans will be made via the Federal Reserve
Wire Transfer System to the party directed by the Seller. Any amounts collected by Seller for maintenance
or improvements to the property, for the escrow of taxes or insurance not yet due, or for other reserves shall
be deducted from the wire amount.
(U.S. Bank – Correspondent 01/14/02)
Initials ________
Page 1 of 9
3.
DELIVERY OF DOCUMENTS: Seller agrees to do all acts necessary to perfect title to the Mortgage
Loans to Buyer and shall sell, assign and deliver to Buyer, with respect to the purchase of each such
Mortgage Loan, the documents set forth in the Correspondent Lending Manual, all subject to the approval of
Buyer and its legal counsel as to proper form and execution. No later than ninety (90) days from the date of
purchase Seller shall deliver to Buyer the required final documentation. Should Seller fail to satisfy, within
the aforesaid ninety (90) days, the requirements for document delivery with respect to any Mortgage Loan
purchased, Buyer reserves the right to withhold service release premiums on subsequent Mortgage Loan
purchases if required documentation is not received in a timely manner. Buyer’s right to withhold payment
of service release premiums shall be in addition to and not in lieu of Buyer’s other remedies hereunder
including the remedy of repurchase as provided in Paragraph 7 hereof.
4.
GENERAL REPRESENTATIONS, WARRANTIES AND COVENANTS OF SELLER:
Seller hereby represents, warrants, and covenants as follows:
a) Seller is and will continue to be duly organized, validly existing, and in good standing under the laws of
the jurisdiction in which it was incorporated or organized, as applicable, and has and will continue to
maintain all licenses, registrations, and certifications necessary to carry on its business as now being
conducted, and is and will continue to be licensed, registered, qualified, and in good standing in each
state where property securing a Mortgage Loan is located if the laws of such state require licensing,
registration or qualification in order to conduct business of the type conducted by Seller; and
b) Seller has and will maintain the full corporate or partnership power and authority to execute and deliver
the documents contemplated by this Agreement and to perform in accordance with each of the terms
thereof and the terms of the Correspondent Manual. The execution, delivery and performance of this
Agreement by Seller and the consummation of the transactions contemplated hereby have been duly and
validly authorized. This Agreement is a legal, valid, binding and enforceable obligation of Seller, and all
requisite corporate or partnership action has been taken by Seller to make this Agreement valid and
binding upon Seller and enforceable in accordance with its terms; and
c) Seller has the ability to perform each and every obligation and/or requirement imposed on Seller pursuant
to this Agreement, and no offset, counterclaim, or defense exists to the full performance by Seller of the
requirements of this Agreement; and
d) Neither the Correspondent Application, this Agreement, nor any statement, report or other document
furnished or to be furnished by Seller pursuant to this Agreement contains any untrue statement of
material fact or omits to state a material fact necessary to make the statements contained herein or therein
not misleading; and
e) Seller has complied with, and has not violated any law, ordinance, requirement, regulation, rule or other
order applicable to its business or properties, the violation of which might adversely affect the operations
or financial condition of Seller to consummate the transactions contemplated by this Agreement; and
f)
All financial statements required to be submitted by Seller to Buyer have been prepared in accordance
with Generally Accepted Accounting Practices applied on a consistent basis by an independent Certified
Accountant or other individual acceptable to Buyer; and
g)
Seller has established procedures with respect to real estate appraisers and appraisals in accordance with
the requirements described in the Correspondent Manual, and Title IX of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989 (“FIRREA”) and implementing regulations, Seller
maintains a list of approved appraisers (the “Approved Appraisers”) who satisfy the Buyer’s standards
for appraiser independence as set forth in the Correspondent Manual, and Seller shall, upon Buyer's
request, provide Buyer with any information Seller has in its possession regarding any appraiser or
appraisal; and
(U.S. Bank – Correspondent 01/14/02)
Initials ________
Page 2 of 9
h) Seller shall at all times comply with all federal, state, and local laws, regulations, and/or ordinances
applicable to it and, in particular, but without limitation, shall not, at any time, (i) discourage or dissuade
any person from applying for a Mortgage Loan (ii) offer or negotiate different interest rates or terms, or
(iii) treat any applicant or potential applicant differently, on the basis of that person's race, sex, religion,
national origin, age, color, disability, or marital status; or the fact that the person derives all or part of
his/her income from any public assistance program; or the fact that the person has in good faith exercised
any right under the Federal Consumer Credit Protection Act or any state anti-discrimination law; or based
upon any other characteristic of the person which is defined to be a prohibited basis for credit
discrimination under any state or federal law or regulation.
5. SELLER’S REPRESENTATIONS,
MORTGAGE LOANS
WARRANTIES,
AND
COVENANTS
REGARDING
With respect to every Mortgage Loan offered by Seller to Buyer hereunder, Seller represents, warrants,
and covenants as follows:
a) The security agreement, deed of trust or other document securing the Mortgage Loan (the “Mortgage”)
has been executed, on the date stated in the Mortgage (the “Closing Date”) by any and all person(s)
necessary to create and convey a valid and legally enforceable first lien obligation in favor of the Seller
with respect to the Mortgage Note that is superior to all other liens or other claims, and the note
evidencing the Mortgage Loan (the “Mortgage Note”) is payable to Seller as payee and has been duly
executed by the person or person(s) (the “Mortgagor”, whether one or more) to whom, or for whose
benefit, Seller has disbursed the entire proceeds of the Mortgage Note and who is/are the true and actual
person(s) who submitted an application to Seller and who have been approved by Seller and/or Buyer to
receive the Mortgage Loan represented by the Mortgage Note and Mortgage; and
b) The sale of the Mortgage Loan is in Seller’s ordinary course of business and will not result in (i) the
breach of any term or provision of Seller’s charter or bylaws, (ii) the breach of any term or provision of,
or conflict with or constitute a default of or result in the acceleration of any obligation under any
agreement, indenture, loan or credit agreement, or other instrument to which Seller or any of its property
is subject, or (iii) the violation of any law, rule, regulation, order, judgment, or decree to which Seller or
any of its property is subject; and
c) The entire proceeds of the Mortgage Loan was used by the Mortgagor to finance or refinance the
purchase or initial construction of the one to four family residential dwelling permanently affixed to that
real property described in the Mortgage (the “Mortgaged Property”), and the Mortgaged Property is or
will be used by the Mortgagor as his/her/their principal or secondary residence or for such other purpose
as is permitted by investor guidelines or under the Correspondent Lending Manual; and
d) The Mortgage contains enforceable provisions that give the Mortgage holder rights and remedies to
realize against the Mortgaged Property as expeditiously as applicable law allows, including, without
limitation, the power of sale; and
e) Seller has good and merchantable title to the Mortgage Loan as of the Closing Date and the assignment
of the Mortgage Loan from Seller to Buyer is valid, sufficient, enforceable and conveys good title to such
Mortgage Loan to Buyer, free and clear of any liens, claims, or encumbrances upon such Mortgage Loan;
and Seller has not effected any assignment, sale or hypothecation of the Mortgage Loan, except in favor
of Buyer; and
f) Seller will execute and deliver to Buyer all instruments necessary to convey to Buyer all rights, titles and
interests in and to each Loan and all documents evidencing insuring, guaranteeing or securing each Loan;
and
g) All taxes and governmental assessments that became due and owing prior to the Closing Date in respect
to the Mortgaged Property have been paid; and
(U.S. Bank – Correspondent 01/14/02)
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h) An escrow of funds in an amount sufficient, in accordance with industry standards or any applicable
HUD regulations, to cover a portion of one (1) calendar year's payments of taxes and governmental
assessments, hazard insurance and, if applicable, mortgage insurance premiums or guaranty fees on the
Mortgaged Property, has been established; and
i)
The unpaid principal balance of the Mortgage Loan is as stated; no part of the Mortgaged Property has
been released from the lien securing each Loan; the terms of the Loan have in no way been changed or
modified; and the Loan is current and not in default and no condition or circumstance exists that, with the
passage of time, would constitute a default; and
j)
Seller is the sole owner of each Mortgage Loan to be sold under this Agreement and has the requisite
power and authority to sell, transfer, and assign such Mortgage Loan on the terms herein set forth, free
and clear of all liens, claims and encumbrances upon such Mortgage Loan; and
k) Each Mortgage Loan is eligible for sale to the Federal National Mortgage Association, Government
National Mortgage Association, Federal Home Loan Mortgage Corporation, or non-conforming (Jumbo)
Investor whose Mortgage Loan eligibility specifications are outlined in the Correspondent Manual; and
l)
The Mortgage Loan was properly closed in accordance with the requirements of the Correspondent
Manual, and all applicable agencies rules and regulations. The Mortgage Loan complies with all
applicable federal and state laws, rules, and regulations, as from time to time amended, including but not
limited to the following: applicable usury limitations, the applicable laws and regulations governing
lending, the Real Estate Settlement Procedures Act, the Equal Credit Opportunity Act, the Flood Disaster
Protection Act, the Fair Housing Act, the Truth-in-Lending Act of 1968, the Depository Institutions
Deregulation and Monetary Control Act of 1980, the Garn-St. Germain Depository Institutions Act of
1982 and all applicable regulations issued pursuant thereto; and that all conditions as to the validity,
transferability and continuation of any FHA Insurance Contract, VA Loan Guaranty Certificate, or RHS
Loan Note Guaranty if any, as required by the National Housing Act of 1934, the Servicemen's
Readjustment Act of 1944, as amended, or the Cranston-Gonzales National Affordable Housing Act of
1990, and the rules and regulations thereunder, or by the FHA, VA or RHS have been properly satisfied,
and said FHA Insurance Contract, FHA Commitment, VA Loan Guaranty Certificate or right to obtain a
VA Loan Guaranty Certificate, or RHS Loan Note Guaranty, on each Mortgage Loan will be valid and
enforceable by Buyer; and
m) The Mortgagor has duly executed and delivered appropriate evidence indicating that the Mortgagor has
received any and all disclosure materials as required by applicable law and regulations; and
n) The full original principal amount of each Mortgage Loan has been advanced to the Mortgagor, either by
direct payment, or by payment made on the Mortgagor's request or approval; and all costs, fees, and
expenses incurred in making, closing and recording the Mortgage Loan, have been paid; and
o) There is in force a paid-up Mortgagee Policy of Title Insurance on the Mortgage Loan in an amount not
less than the outstanding principal balance of the Loan, affirming that the Mortgagor has fee simple,
indefeasible title to the Mortgaged Property and insuring the validity and priority of Seller's first lien
securing the Mortgage Loan, and such Mortgagee Policy of Title Insurance does not contain any
exceptions to or defects in title not otherwise disclosed to and approved in advance by Buyer in writing;
and
p) There is a valid paid-up hazard insurance policy in force, at the time of the purchase of the Mortgage
Loan by Buyer issued or written by an insurance company with a Best’s Key Rating Guide financial size
category of Class III or better, in an amount equal to at least the full replacement value of the
improvements on the property secured by the Mortgage. The policy shall be of a type at least as
protective as fire and extended coverage and shall contain a mortgagee clause and loss payable clause to
the Buyer in the form of the standard New York mortgage clause, and shall contain suitable provisions
for payment on all present and future mortgages on such premises in order of precedence. For properties
(U.S. Bank – Correspondent 01/14/02)
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in a special flood hazard area, there is in force a paid-up flood insurance policy. For properties located in
a condominium or PUD project, Seller will provide a certificate of insurance naming Buyer as the
insured plus a certified true copy of the Master Hazard and Liability Policy; and
q) All documents submitted or delivered are genuine, and all other representations as to each Mortgage
Loan sold are true and correct and meet the requirements and specifications of all parts of this Agreement
and the Correspondent Manual; and
r) The Mortgage, Mortgage Note, and all other Mortgage Loan documents executed by the Mortgagor
create a legal, valid and binding obligations of the Mortgagor, enforceable in accordance with their
terms, there exists as of the Closing Date no right of offset, defense, right of rescission, homestead right,
or counterclaim with respect to the Mortgage Note or any of the other documents, and there is no pending
or threatened litigation that might affect the validity or enforceability of the Mortgage Note or the
Mortgage; and
s) The Mortgaged Property is either free of damage and in good repair or the proceeds of the Mortgage
Loan will be used to purchase and rehabilitate the Mortgaged Property, there is no proceeding pending or
threatened for a partial or total condemnation or partition of the Mortgaged Property, and either there are
no mechanic’s or similar liens or claims that have been filed for work, labor or material (and no rights are
outstanding that under applicable law could give rise to such a lien or claim) affecting the Mortgaged
Property or such liens and claims have been insured against under the final Mortgagee Policy of Title
Insurance; and
t)
As of the Closing Date, to the best of Seller's knowledge, after reasonable inspection, the mortgaged
property was not affected by any condition arising from the presence of any dangerous, toxic or
hazardous pollutants, chemicals, wastes, or substances; and
u) All improvements on the Mortgaged Property, including new construction, have been or will be
completed in full compliance with any applicable laws, regulations, or building codes and standards, and
that the improvements comply with the laws, regulations, or building codes and standards in effect; and
v) With respect to each appraisal delivered to Buyer in connection with a prospective Mortgage Loan, the
appraisal has been prepared by an Approved Appraiser, Seller has reviewed the appraisal and found the
appraisal acceptable in accordance with the standards set forth in the Correspondent Manual, and Seller
shall, upon Buyer’s request, provide Buyer with any information Seller has in its possession regarding
the appraiser or appraisal; and
w) In addition to those representations, warranties, and covenants specifically set forth above, Seller makes
all representations, warranties, and covenants expressed by Seller to Buyer orally or in writing with
respect to any particular Mortgage Loan, and expressly makes any and all additional representations,
warranties, or covenants that are normally or customarily made in connection with a mortgage loan of the
same type and terms as the Mortgage Loan.
6.
CORRESPONDENT MANUAL: In addition to all of the obligations, agreements, representations and
warranties specifically set forth herein, Seller hereby agrees to perform all obligations and agreements, make
all representations and warranties, and comply with all the provisions of the Correspondent Manual
(including any policies and procedures contained in program announcements, memoranda, or other similar
communication) delivered to Seller, as may be modified or amended from time to time. Modifications and
additions to the Correspondent Manual shall become effective upon the date received by Seller. All
provisions of the Correspondent Manual are hereby incorporated into this Agreement by reference.
7.
REPURCHASE OF LOANS: Seller hereby agrees to repurchase any Mortgage Loan sold to Buyer at any
time during the life of such Mortgage Loan, upon the occurrence of any of the following events:
(U.S. Bank – Correspondent 01/14/02)
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a) Any false statement, misstatement, or act of omission of material fact contained in the Mortgage Loan
documentation resulting from Seller's negligence or failure to exercise due diligence as disclosed by
actual inspection by Buyer or its representative, or otherwise disclosed; or
b) Seller fails to obtain FHA insurance, VA or RHS guaranty, private mortgage insurance, or if such
insurance or guaranty lapses or for any reason becomes unavailable, as a result of any negligent act or
omission by Seller, or the failure by Seller to obtain such insurance or guaranty within ninety (90) days
from the date of purchase; or
c) Buyer is required to repurchase any Loan sold by it to GNMA, FNMA, FHLMC, or any other investor,
by reason of a deficiency in or omission with respect to the Mortgage Loan documents, instruments, and
agreements, pertaining to any Mortgage Loan; or
d) Any representation or warranty made by Seller under this Agreement or the Correspondent Manual with
respect to any Mortgage Loan shall, in the reasonable opinion of Buyer, be, in whole or in part and with
or without knowledge of Seller, false at the time when made by Seller or become false upon the
occurrence of subsequent events; or
e) Any material fraud, misrepresentation or act of omission with respect to the information submitted on a
particular Mortgage Loan is determined to exist by Buyer or another investor. This includes, but is not
limited to, Mortgagor or other third party fraud or misrepresentation, and any misrepresentation of
Mortgagor’s income, funds on deposit, or employment, or of the occupancy status of the Mortgaged
Property; or
f) Seller’s breach of any covenant or obligation to Buyer with respect to the Mortgage Loan under this
Agreement or the Correspondent Manual, specifically including, without limitation, Seller’s obligations
under Section 3, 4, or 5 hereof.
The repurchase price for any Mortgage Loan that Seller is required to repurchase from Buyer shall be an amount
equal to its then unpaid principal balance of the Mortgage Loan on the date of repurchase, plus accrued interest,
any servicing release premium paid, and direct expenses (including attorney's fees) incurred by Buyer for any
actions taken by it concerning, as a result of, or in connection with, any of the events or circumstances set forth
herein as cause for repurchase. Buyer’s exercise of its right to have Seller repurchase any Mortgage Loan
hereunder shall be in addition to, and not in lieu of, any other rights or remedies which Buyer may have against
Seller hereunder or under applicable law.
8.
INDEMNIFICATION: Seller shall protect, indemnify, and hold Buyer harmless from and in respect to,
any and all losses, liabilities, reasonable costs, and expenses (including attorneys’ fees) that may be incurred
by Buyer with respect to, or proximately resulting from any breach of, any representation, warranty, or
covenant of Seller hereunder. Buyer shall be entitled to rely upon Seller as assembler and preparer of all
Mortgage Loan documents, and is under no duty whatsoever to investigate or confirm any of the information
set forth therein as to its honesty, accuracy, or completeness. Seller hereby agrees to indemnify and hold
Buyer harmless from any claim, loss or other damage to Buyer including reasonable attorneys fees resulting
in whole or in part from any inaccuracy or incompleteness in the Mortgage Loan documents or any act or
omission by Seller, its agents and employees, including but not limited to failure to comply with applicable
state, federal and local statutes or regulations. To the extent Seller, its agents or employees, commits an
actual wrong, or makes some error or omission in the preparation of any Mortgage Loan or its documents
and as a result thereof, and based thereon, Buyer commits an act or omission for which it becomes liable to
the Mortgage(s) or any third party and/or a claim or cause of action is instituted against Buyer, Seller shall
and hereby agrees to indemnify and hold Buyer harmless from any such loss or damage, including
reasonable attorneys fees, resulting therefrom.
9.
MARI and MIDEX Release: Seller understands that Buyer performs quality control reviews of the
Mortgage Loans that Seller submits to Buyer for purchase. Seller hereby consents to the release of
(U.S. Bank – Correspondent 01/14/02)
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information about any loan application that is believed to contain misrepresentations and/or irregularities.
Seller agrees and gives its consent that it and its employees may be named as the originating entity or loan
officers on such loans, whether or not Seller or its employees are implicated in the misrepresentations and/or
irregularities. Seller hereby releases and agrees to hold harmless Buyer, Mortgage Asset Research Institute,
Inc. (“MARI”), all Mortgage Industry Data Exchange (“MIDEX”) subscribers, and any trade associations
that endorse the MIDEX system from any and all liability for damages, losses, costs, and expenses that may
arise from the reporting or use of any information submitted by Buyer or any other MIDEX subscriber to
MARI, recorded in the MIDEX system, and used in any way by Buyer or any other MIDEX subscriber.
10. REFUND OF SERVICE RELEASE PREMIUMS:
a) If any Mortgage Loan is prepaid within six (6) months following the date of purchase by Buyer, Seller
shall refund to Buyer all service release premiums received from Buyer with respect to that Mortgage
Loan.
b) If any Mortgage Loan, underwritten by Seller, becomes delinquent on any of the first three (3) scheduled
monthly payments due Buyer, and is not brought current by the borrower within 90 days of such
delinquency, Seller shall refund to Buyer all service release premiums received from Buyer with respect
to that Mortgage Loan plus an indemnification fee of $1,000 on conventional loans and $2,000 on
government loans.
11. NOTICES: Any notice provided for herein shall be sufficient if sent by first class United States mail,
postage prepaid, addressed as follows:
If to Buyer:
U.S. Bank N.A.
1550 East 79th Street, Suite 530
Bloomington, Minnesota 55425
Attn: Richard D. Kelley
If to Seller:
__________________________
__________________________
__________________________
Attn: ______________________
Either party may change its address for purposes hereof by giving notice to the other party.
12. FINANCIAL STATEMENTS AND RIGHT TO AUDIT: Seller agrees to provide annual audited
financial statements (including balance sheet, statements of income and expenses, cash flow statements,
Report of Compliance with Specific Requirements Applicable to HUD Program Transactions, Report on the
Internal Control Structure and Computation of Compliance with FHA Net Worth Requirements), to Buyer
within ninety (90) days after the close of its fiscal year prepared by independent certified public accountants
in accordance with generally accepted accounting principles. Seller will also submit copies of current
Mortgage Licenses (where applicable) and a copy of a current Fidelity Bond and E & O Insurance Policy. If
Buyer is the Sponsor of the Seller under the FHA Loan Correspondent program, Seller agrees to allow
Buyer access to their office facilities and loan records during normal business hours for an on-site
compliance audit in accordance with HUD quality control requirements.
13. INSURANCE: Seller shall maintain in full force Errors and Omissions Insurance and a Fidelity Bond,
Mortgage Banker Bond or Mortgage Originator Policy in such amounts as required by HUD or as Buyer
may reasonably require to indemnify it from any loss or damage incurred in connection with this Agreement.
Buyer must be named as a “loss payee” and must have the right to file a claim directly with the insurer if
Seller fails to file a claim for a covered loss that Buyer incurs. The insurer must agree to notify Buyer at
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least 30 days before it cancels, reduces or modifies the Seller’s coverage for any reason or within 10 days
after it receives a request from Seller to cancel or reduce any coverage.
14. RELATIONSHIP OF THE PARTIES: Buyer and Seller hereby agree that neither this Agreement nor any
purchase of Mortgage Loans pursuant hereto shall constitute any agency relationship, legal representation,
joint venture, partnership or employment. Buyer and Seller agree that neither party is in any way authorized
to make any contract, agreement, warranty, or representation, or to create any obligation, express or implied,
on behalf of the other.
15. EVENTS OF DEFAULT: Each of the following shall constitute an Event of Default on the part of Seller
under this Agreement: (i) any breach by Seller of any of Seller’s representations, warranties, or covenants
set forth in this Agreement or the Correspondent Manual; (ii) the failure of Seller to perform any of its
obligations under this Agreement or the Correspondent Manual; (iii) the occurrence of any act of insolvency
or bankruptcy concerning Seller; (iv) Seller’s failure to meet any capital, leverage, or other financial
standard imposed by any applicable regulatory authority, warehouse lender, or in Buyer’s sole opinion, any
material adverse change occurs in the financial condition of Seller; (v) any federal or state regulatory
authority or licensing agency shall cancel, rescind, or fail to renew Seller’s license or institute any action
against Seller for fraud or criminal conduct.
16. RIGHT OF OFFSET: Buyer shall have the right to deduct any penalties, fees, taxes, or other charges or
obligations of any kind owed by Seller to Buyer from the amount to be paid for any Mortgage Loan
purchased by Buyer hereunder.
17. ENTIRE AGREEMENT: This Agreement and the Correspondent Manual contain the entire agreement of
the parties with respect to the subject matter hereof, and there are no representations, inducements, or other
provisions other than those expressed in writing and included herein. All changes, addendum, additions, or
deletions to this Agreement must be made in writing and signed by each of the parties hereto. This
Agreement restates, and supersedes any and all prior Mortgage Purchase Agreements between the parties.
18. SURVIVAL OF PROVISIONS; SEVERABILITY: All of the covenants, agreements, representations and
warranties made herein by the parties hereto shall survive and continue in effect after the termination of the
Agreement or the consummation of the transactions contemplated hereby. Any provisions of the Agreement
that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the
extent of such prohibition or unenforceability without invalidation of the remaining portions hereof or
affecting the validity or enforceability of such provision in any other jurisdiction. This Agreement may be
executed in counterparts, all of which taken together shall constitute one and the same instrument.
19. ASSIGNMENT: This Agreement may not be assigned or transferred by Seller without the prior written
consent of Buyer.
20. AMENDMENT/TERMINATION: Buyer shall have the right to amend this Agreement with written
notice to the Seller. At Buyer's request, Seller shall acknowledge changes to the Agreement in writing, but
Seller's failure to provide written acknowledgment of any amendment shall not impair the enforceability of
such amendment. This Agreement may also be terminated with respect to future purchases of Mortgage
Loans by either party at any time by giving written notice of termination to the other party. Upon the
occurrence of any Event of Default as described in Paragraph 15(i), 15(ii), 15(iv) or 15(v) hereof, Buyer
may either terminate this Agreement upon notice to Seller or, without affecting any other rights or remedies
available to Buyer under this Agreement or at law or in equity, immediately suspend all registrations and
lock-ins and may refuse to fund any or all Mortgage Loans, pending the cure, to Buyer’s satisfaction, of such
Event of Default. Upon the occurrence of an Event of Default under Paragraph 15(iii), this Agreement shall
terminate automatically. Termination of this Agreement shall not in any respect change, alter, or modify the
obligations of Buyer and Seller with respect to Mortgage Loans that have been purchased by Buyer from
Seller prior to the date of such termination.
(U.S. Bank – Correspondent 01/14/02)
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21. GOVERNING LAW; INTERPRETATION: It is mutually understood and agreed that this Agreement
shall be governed by the laws of the State of Wisconsin as to both interpretation and performance. All terms
of this Agreement shall be construed and interpreted according to their plain meaning and no term shall be
more strictly construed against Buyer merely because Buyer has drafted this Agreement.
22. ACCEPTANCE: This Agreement shall become binding upon acceptance and execution by Buyer.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.
Seller:
__________________________
Buyer:
U.S. Bank N.A.
By: ______________________________
By:
___________________________________
Name:
__________________________
Name:
Richard D. Kelley
Title:
__________________________
Title:
Senior Vice President
(U.S. Bank – Correspondent 01/14/02)
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U.S. Bank Wholesale Fee schedule
Effective 07/01/05
U.S. BANK HOME MORTGAGE WHOLESALE FEE SCHEDULE
(ALT PURCHASE AND PURCHASE FUNDED ONLY)
FHA Delegated
Correspondent has own D.E. Underwriters
$305.00
VA Delegated
Correspondent has own VA Automatic Authority
or local VA Office issued VA approval
$305.00
FHA Sponsorship
U.S. Bank Home Mortgage D.E. Underwriter issues approval
(underwritten by traditional methods)
$355.00
FHA Sponsorship
U.S. Bank Home Mortgage D.E. Underwriter issues approval
(Correspondent submits loan via LP.com to U.S. Bank Home
Mortgage)
$305.00
Conventional Loans
Traditional underwriting by U.S. Bank Home Mortgage
$305.00
Conventional Loans
Underwritten by U.S. Bank Home Mortgage or MI company
but submitted via LP.com
$255.00
Conventional Loans
Underwritten by MI company but submitted via DO
$255.00
Second Mortgage (Plan 3101)
(Plan 3141)
Underwritten by U.S. Bank Home Mortgage Home
$100.00
