LOAN ORIGINATOR AGREEMENT
Between the
HOUSING AUTHORITY OF THE CHOCTAW NATION
and
FIRST AMERICANS MORTGAGE CORPORATION
This Loan originator Agreement (hereinafter referred to as "Agreement"), is
made and entered into this 8th day of September, 1998, by and between the
Housing Authority of the Choctaw ▇▇▇▇▇▇, ▇.▇. ▇▇▇ ▇. ▇▇▇▇, ▇▇▇▇▇▇▇▇. ▇▇▇▇▇
(hereinafter referred to as the"IHA"), and First Americans Mortgage Corporation,
8815 ▇▇▇▇, ▇▇▇▇▇▇, ▇▇▇▇▇▇ ▇▇▇▇▇, (hereinafter referred to as "FAMC").
WHEREAS, FAMC, in the conduct of its business is desirous of originating
residential loans in the name of FAMC, and
WHEREAS, FAMC function as a mortgage loan broker, selling loans originated
by loan originators, such as contemplated herein, to financial institutions with
which FAMC as executed loan purchase agreements (hereinafter referred to as
"Investors"), and
WHEREAS, the IHA wishes to enter into an agreement with. FAMC to originate
residential loan applications for FAMC, and
WHEREAS, FAMC hereby affirms it is an independent corporation in accordance
with the laws of the State of Missouri and the Internal Revenue Service, and
further maintains it is qualified, willing, and able to perform the services
herein described, and
NOW THEREFORE, and in consideration of the mutual covenants, promises,
agreements, understandings, and conditions herein contained, the parties hereto
mutually promise to the other, agree, and understand as follows, to wit:
TERM: The term of this Agreement shall be for a period of one (1) year, from
the 8th day of September, 1998 to the 8th day of September, 1999. This
Agreement may be renewed on an Annual basis by written mutual consent
of both parties.
NOTICES: All notices required hereunder shall be sent via U.S. Mail, postage
paid as follows:
To the IHA: Housing Authority of the Choctaw Nation Executive
Director ▇.▇. ▇▇▇ ▇ ▇▇▇▇, ▇▇▇▇▇▇▇▇, ▇▇▇▇▇
To the FAMC: First Americans Mortgage Corporation Attention:
▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇, President ▇.▇. ▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇
▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇▇-▇▇▇▇
PERFORMANCE REQUIREMENTS OF THE IHA AND FAMC:
The IHA agrees to originate residential mortgages in the name of FAMC in
the State of Oklahoma. All loans originated shall be subject to and shall
meet all underwriting standards set forth in FAMC's Policy and Procedure
Manual (attached hereto as Attachment "1")and that of the investors which
have committed to purchase the loans after closing. All Loans are subject
to FAMC approval prior to loan commitment. Any loan not meeting these
underwriting standards or approval conditions shall not be closed.
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The IHA agrees to use its best efforts to assist FAMC and their Investors
in obtaining documentation, authorizations, certifications, verifications,
and any other conditions required to close and subsequently sell
residential loans. FAMC agrees to use its best efforts to assist the IHA in
processing and closing residential loans.
FAMC shall provide to the IHA in conjunction with this Agreement all
necessary training and software in order for the IHA to fulfill its
performance requirements under this Agreement.
The IHA agrees to adhere to the price shedule, charges, and terms (see
Policy and Procedure manual; Exhibit section for a copy of the pricing
schedule) as provided by FAMC for those loans originated for FAMC, A rate
quote may be obtained from FAMC at any time during normal business hours
via the telephone.
The following performance requirements shall be utilized during the first
ninety (90) days or until such time as FAMC and the IHA mutually decide to
expand the responsibilities of the IHA:
1. LOAN APPLICATION: The IHA shall assist the applicant with completion
of the ▇▇▇▇▇▇ Mae Form 1003 - Uniform Residential Loan Application.
2. APPLICATION ACTION: Once an application is accepted by the IHA a
credit report will be immediately ordered by the IHA. FAMC will supply
software that will allow the IHA to contact, via a modem, FAMC's
credit reporting agency. The report can be quickly downloaded and then
printed with a laser printer. The IHA shall fax a photocopy of the
credit report along with the 1003 form and a Good Faith Eestimate to
FAMC for review. Within 24 hours, FAMC shall notify the IHA of action
to be taken on the application. If the applicant is not prepared to
proceed the loan process at this time the IHA, either through
telephone or face-to-face contact, will notify the applicant of FAMCs
decision and discuss possible alternatives. The Notice of Acton Taken
will then be mailed to the applicant. All of the applicants
information received by the IHA on hardcopy as well as the applicants
mortgage software file should be forwarded to FAMC on the Friday
following any action taken. FAMC will be responsible for all long-term
storage of loan file information. If the applicant is prepared to
proceed with the loan process, the IHA shall be notified and the
process to compile a complete credit file will begin. FAMC will also
notify, the IHA of the most appropriate loan program for the
applicant.
3. BORROWER DOCUMENTS: The applicant shall bring all necessary
documentation to the mortgage application meeting. Income can be
calculated by obtaining the past two (2) years' 1040 forms, W-2 forms,
and a current year-to-date pay stub for each applicant. Assets can be
calculated by providing the past three (3) months statements on each
depository account of the applicants. A complete list of monthly
liabilities with account numbers, addresses, balances, and monthly
payments must be provided by each applicant as well as landlord and/or
mortgage information for the past two years.
4. Real Estate Settlement Procedures Act (RESPA): The IHA must provide
the following documents to each applicant within three (3) days of the
loan application date: a) Truth-in- Lending Disclosure, b) Good Faith
Estimate; c) Mortgage Servicing Disclosure; d) Special information
Booklet "Settlement Costs" (to be supplied by the IHA); e) any
additional documents necessary. All documentation, except for the
Special Information Booklet, will be located within FAMC's mortgage
software.
5. CREDIT REPORT: A Credit Report for each applicant shall be ordered
immediately after a loan application is accepted by the IHA. The
Credit Report may take the form of a Three Repostiory Merged Credit
Report or a full Residential Mortgage Credit Report depending on the
loan product needed and on the credit quality of the applicant. The
cost of the reports will be billed directly from the credit reporting
company to FAMC. FAMC will notify the IHA 15 days in advance of any
change in the cost of a credit report. It is the responsibility of the
IHA to pay for any reports pulled by the IHA. It will be the IHA's
responsibility to collect the appropriate fee and then forward it to
FAMC on a weekly basis. When appropriate the IHA will be responsible
for faxing the credit reporting worksheet (see Originators Lending
Manual) to FAMC's credit reporting agency (i.e. the borrower pays the
designated cost to receive a copy of the report).
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6. VERIFICATIONS: All loans are required to contain documentation
verifying information given by the applicant. If the IHA does not
collect the documentation mentioned in step 3 it willbe necessary to
send independent verification requests to employer(s) and
depositories. The IHA shall verify the last 24 months of rental or
mortgage history If it is not included in the applicant's credit
report, The source of funds may include a gift from a family member or
the sale of an asset. If the applicant has obtained a divorce, the
complete divorce decree and settlement statement must be provided.
Child support, alimony, or maintenance is available for consideration
as income, if received regularly. This form of income may be verified
through a court printout or canceled checks covering the past twelve
(12) months. Bankruptcy paperwork and explanations are required if
applicable. Derogatory credit, undisclosed credit and inquiries must
be satisfactorily explained by the applicant. Applicants must provide
a Certificate Degree of Indian Blood (CDIB) card (for Native American
loan programs), picture ID, and evidence of a Social Security Number,
All forms will be mailed to the verifying institutions with a stamped
return envelop to the IHA. All miscellaneous documents and a diskette
containing the loan files shall be forwarded to FAMC through overnight
delivery on Friday nights.
7. PACKAGING: The IHA shall collect, review for discrepancies, and bind
in the proper stacking order in legal manila file folders, all
necessary loan documentation prior to submission to FAMC. A loan
packaging checklist for each loan is included in FAMC's mortgage
software. The loan package should be included in the Friday overnight
delivery package unless the submission file needs immediate attention.
8. CREDIT SUBMISSION: FAMC will review the IHA's package and submit it to
the appropriate decision maker. The decision will be based upon the
information received in it the loan package. Additional verifications
and/or credit documents may be necessary. The IHA will be advised of
loan approval and any conditions.
At this time the day-to-day handling of the loan package will be transferred to
FAMC. The IHA's role will be to support the FAMC:
9. APPRAISAL: After the funds for payment of the appraisal are recieved
from the applicant, FAMC will order the appraisal report from a
qualified appraiser. FAMC may request assistance from the IHA in
obtaining the funds for the cost of the appraisal and provide the
appraiser with a copy of the sales contract, new construction or
rehabilitation plans and specifications and other pertinent documents
needed to conduct the appraisal.
10. TITLEREPORT/ABSTRACT and TITLE STATUS REPORT (TSR): FAMC may request
assistance from the IHA in the ordering of the appropriate Title
Report/Abstract or TSR.
11. LAND STATUS FORM:FAMC may request assistance from the IHA in obtaining
a completed Land Status Form or other documents pertaining to the
proposed properties land status.
12. SUBMISSION FOR FINAL APPROVAL: FAMC will be responsible for all
submission procedure and gaining final approval from the appropriate
decision maker. It should be noted that depending upon the loan
program, a file may not go through a Credit Submission process but
could move directly to a one-time Submission. The appropriate loan
program will be identified in Step 1 so that the IHA and FAMC cam
plan, up front, the proper submission procedure.
13. FINALAPPROVAL: Upon issuance of the final approval by the decision
maker, FAMC shall order all closing documents (i.e. survey,
inspections) for immediate closure. FAMC may ask the IHA to assist in
scheduling the closing with the local closing agent (designated by the
borrower and approved by FAMC) and obtaining various other closing
documents.
14. INVESTOR FUNDING: FAMC shall provide the Investor with a copy of the
complete loan package and shall be consulted as to the timing of the
closing.
15. GUARANTEE PACKAGE: FAMC shall be responsible for all insurance
packaging if applicable.
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16. DRAW INSPECTIONS: FAMC may request from time-to-time that the IHA
assist in the accumulation of documentation needed to conduct draw
payments on loans for new construction or rehabilitation. At no time
will the IHA be responsible for construction or rehabilitation fund
disbursement.
COMPENSATION:
The IHA shall be compensated by FAMC for each loan closed and funded.
Compensation will be in the form of a flat fee. The fee will be paid as
follows:
A fee of $120.00 will be due to the IHA on each loan originated by the IHA
and subsequently closed and funded by FAMC. The fee shall be paid by FAMC
to the IHA on the first or fifteenth day of each month following the loan
funding.
SPECIAL LOAN PROGRAMS:
Any special loan programs shall be attached to this contract as an
addendum.
STATUS OF THE PARTIES:
This Agreement shall not be construed to constitute a joint venture,
partnership, nor other form of agreement creating a joint liability between
the parties. The IHA and FAMC hereto stipulate and agree that the parties
are independent contractors and shall be responsible and liable for the
acts and omissions of their own respective employees, agents and
representatives.
Notwithstanding any other provisions in this Agreement, it is the intention
of the IHA and FAMC that the employees, agents, and representatives
furnished hereunder by each party shall be the employees, agents, and
representatives of that respective party. Accordingly, at no additional
expense to either party, the IHA and FAMC shall be fully responsible for
the withholding of all state and federal employment, social security,
Medicare, and similar taxes for their own respective employees. The IHA and
FAMC, and their respective employees, agents, and representatives, hereby
agree to indemnify and hold each other harmless from any and all liability
for such taxes, as well as for any penalties, interest, or other charges or
fees which may be assessed or imposed as a result, required to be filed by
state or federal taxing authorities in connection therewith. The
obligations under this paragraph shall survive the expiration or
cancellation of this Agreement.
ASSIGNMENT OR NON-ASSIGNMENT PROVISION:
The IHA and FAMC hereby agree the services specified in this Agreement may
not be delegated or assigned without the prior written approval of both
parties hereto.
TERMINATION OR CANCELLATION CLAUSE:
This Agreement may be terminated by either party upon thirty (30) days
written notice by certified letter. In the event this Agreement is
terminated or canceled by either party, the IHA shall remain obligated to
FAMC for any outstanding fees or payments due and shall not transfer any
loans currently in process. FAMC shall remain responsible for all unpaid
fees due to the IHA prior to said termination or cancellation.
If cancellation occurs, FAMC will continue as the sole loan originator for
any loan programs defined in the "Special Loan Programs" paragraph of this
agreement. FAMC will continue to originate said loans until such time as
the loan commitment is completed, IHA withdraws their participation in the
program or FAMC waives their exclusive right.
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PROPRIETY INFORMATION:
17. FAMC agrees and warrants that it will protect any confidential
information it receives from IHA as confidential, proprietary and not
use the confidential information for its own purpose or disclose to any
third party, either directly or indirectly, any and all business
related clients contracts, documentation, projections, business plans,
information, funding arrangements, maps or other materials.
18. The IHA agrees and warrants that it will protect any confidential
information it receives from FAMC as confidential, proprietary and not
use the confidential information for its own purpose or disclose to any
third party, either directly or indirectly, any and all business
related clients contracts, documentation, projections, business plans,
information, funding arrangements, maps or other materials.
19. FAMC agrees and warrants that it will circumvent the IHA with respect
to any contracts understandings, discussions, solicitations,
negotiations, or undertakings, with the landowners, consultants,
funding sources or other individuals or entities to whom it is
introduced by IHA.
20. IHA agrees and warrants that it will circumvent the FAMC with respect
to any contracts understandings, discussions, solicitations,
negotiations, or undertakings, with the landowners, consultants,
funding sources or other individuals or entities to whom it is
introduced by FAMC.
21. This paragraph shall become effective immediately upon signing and
remain in effect for three (3) years after cancellation of the entire
contract unless agreed to by FAMC and the IHA.
22. This agreement does not apply to any information which is a matter of
public record.
MODIFICATIONS:
Modifications or changes to the terms of this Agreement shall be in writing
and signed by each of the parties hereto.
LAWS AND REGULATIONS:
The parties' performances hereunder shall comply with all applicable laws,
ordinances, rules and regulations of any governmental agency having
jurisdiction and shall pay any fine, penalty, loss, damage, or expense
resulting from the party's failure to comply therewith. FAMC shall provide
all licenses and permits required to perform its obligations under this
Agreement.
OFFICE EXPENSES:
The IHA shall be responsible for its own office expenses (i.e., office
rent, mailing, business related telephone costs , and other reasonable
charges). The IHA shall also be responsible for all other expenses that may
be incurred in conducting a mortgage origination business (i.e., auto
expenses, meals, lodging, and transportation). FAMC shall provide a
photocopy ready promotional materials, rate sheets, training and assistance
in presentations at no additional cost to the IHA.
POLICY COMPLIANCE:
The IHA agrees to comply with the rules and regulations set forth in each
of the loan programs that FAMC is currently or will be participating in the
future (see Policy and Procedure Manual). FAMC reserves the right to amend
any policies set forth in its company Policy and Procedures Manual from
time-to-time and shall notify the IHA of any such changes.
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GENERAL PROVISIONS:
This Agreement contains the complete expression of the parties' agreement
with respect to the subject matter hereof, and shall bind the parties,
their successors and assigns. This Agreement shall supersede any and all
written or oral statements, agreements, and/or representations of the
parties made prior to or contemporaneously with the execution hereof.
This Agreement shall be governed by the laws of the United States and,
where applicable, the laws of the State of Oklahoma. The parties agree
their respective performances hereunder shall be governed by an obligation
of good faith.
FIRST AMERICANS MORTGAGE CORPORATION:
/s/ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ 9/8/98
------------
▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇, President Date
Federal Tax Identification #▇▇-▇▇▇▇▇▇▇
HOUSING AUTHORITY OF THE CHOCTAW NATION:
/s/ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ 9/8/98
------------
Executive Director Date
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SPECIAL LOAN PROGRAMS
Addendum: Housing Authority of the Choctaw Nation and
First Americans Mortgage Corporation, Loan Origination Agreement
dated September 8, 1998
It is accknowledged by both parties that First Americans assited in the loan
product development, guideline and procedures implementation and the
introduction of additional parties needed to facilitate the program (▇▇▇▇▇▇▇
Mac, Washington Mutual Bank, PMI Mortgage INsurance Corp.). The loan product
will be called: Choctaw Nation Housing "ADVANTAGE" program. Because of their
assistance in bringing this product to the Housing Authority, FAMC will be the
exclusive originator for the products $10,000,000.00 commitment.
FIRST AMERICANS MORTGAGE CORPORATION:
/s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇ 9/8/98
---------------------- ------------
▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇, President Date
Federal Tax Indentification # ▇▇-▇▇▇▇▇▇▇
HOUSING AUTHORIT OF THE CHOCTAW NATION:
/s/ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ 9/8/98
-------------------- -----------
Executive Director Date
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