Common use of Loan Origination Services and Compensation Clause in Contracts

Loan Origination Services and Compensation. 3.1 Mortgage Broker/Correspondent will, at Mortgage Broker/Correspondent’s sole cost and expense, prepare, process and submit Application Packages to Secure One Capital for funding consideration and will facilitate the closing of Application Packages approved for funding by Secure One Capital. Mortgage Broker/Correspondent’s services and facilities shall include, but will not be limited to, those services and facilities required by the Lender Requirements, as amended from time to time, at the sole discretion of Secure One Capital The specified loan origination services and facilities performed by Mortgage Broker/Correspondent pursuant to this Section 3.1 shall be referred to in this Agreement as the “Loan Services.” Without limiting the generality of the foregoing, Mortgage Broker/Correspondent shall perform the following Loan Services, or any equivalent or similar service as may be required by Secure One Capital from time to time during the term of this Agreement: A. Taking information from the Borrower and filling out the loan application; B. Analyzing the Borrower’s income and debt and prequalifying the Borrower to determine the maximum mortgage that the Borrower can afford; C. Educating the Borrower in the home buying and financing process, advising the Borrower about the different types of loan products available and demonstrating how closing costs and monthly payments could vary under each product; D. Collecting financial information (tax returns, bank statements) and other related documents that are part of the application process; E. Initiating/ordering VOEs (verifications of employment) and VODs (verifications of deposit); F. Initiating/ordering requests for mortgage and other loan verifications; G. Initiating/ordering appraisals in the manner required by Secure One Capital; H. Initiating/ordering inspections or engineering reports; I. Providing disclosures (e.g., good faith estimate) to the Borrower; J. Assisting the Borrower in understanding and clearing credit problems; K. Maintaining regular contact with the Borrower, realtors, and Secure One Capital, between application and closing to apprise them of the status of the application and gather any additional information as needed; L. Ordering legal documents; M. Determining whether the property was located in a flood zone or ordering such service; and/or N. Participating in the Loan closing. 3.2 Secure One Capital may pay Mortgage Broker/Correspondent, pursuant to the terms of this Agreement and payable at the time of the closing of a Loan, compensation for the Loan Services performed by Mortgage Broker/ Correspondent at the percentage rate periodically agreed to by the Parties, as set forth in the Approval Requirements, programs and pricing options. All compensation paid by Secure One Capital to Mortgage Broker/ Correspondent, and all compensation paid by Mortgage Broker/Correspondent to its loan originators, shall comply with the Loan Originator Compensation Rule, as set forth in Regulation Z at 12 CFR 1026.36 and the Official Staff Commentary to Regulation Z, and in all Bulletins, Small Entity Compliance Guides, responses to Frequently Asked Questions, and/or orders that may be published by the Consumer Financial Protection Bureau from time to time during the term of this Agreement. All compensation paid by Secure One Capital to Mortgage Broker/ Correspondent for its provision of the Loan Services will reflect the fair market value of the Loan Services in the market area in which Mortgage Broker/Correspondent performed the same. Mortgage Broker/Correspondent shall disclose its compensation, and the cost of any bona fide and reasonable third party charge, if any, charged to Borrower on the Good Faith Estimate of Closing Costs pursuant to RESPA, and in accordance with all other applicable consumer disclosure and other legal requirements. No compensation may be received by Mortgage Broker/Correspondent from Borrower in connection with any Loan for which Mortgage Broker/Correspondent received any compensation from Secure One Capital. 3.3 Instead of compensation from Secure One Capital as described in section 3.2, Mortgage Broker/Correspondent may negotiate and receive from Borrower, payable at the time of the closing of a Loan, compensation for its services that is typical and customary in Mortgage Broker/Correspondent's market area for that particular loan type. All compensation paid to Mortgage Broker/Correspondent by a Borrower, and all compensation then paid by Mortgage Broker/Correspondent to its loan originators, shall comply with the Loan Originator Compensation Rule, as set forth in Regulation Z at 12 CFR 1026.36 and the Official Staff Commentary to Regulation Z, and in all Bulletins, Small Entity Compliance Guides, responses to Frequently Asked Questions, and/or orders that may be published by the Consumer Financial Protection Bureau from time to time during the term of this Agreement. Mortgage Broker/ Correspondent shall disclose its compensation, and the cost of any bona fide and reasonable third party charge, if any, charged to the Borrower on the Good Faith Estimate of Closing Costs pursuant to RESPA, and in accordance with all other applicable consumer disclosure and other legal requirements. No compensation will be paid by Secure One Capital to Mortgage Broker/Correspondent in connection with any Loan for which Mortgage Broker/ Correspondent received any compensation from Borrower. 3.4 THE PARTIES AGREE THAT ANY FEE OTHER THAN A FEE THAT IS COMPENSATION DESCRIBED IN SECTION 3 OF THIS AGREEMENT IS SUBJECT SOLELY TO THE CONTRACTUAL TERMS AND CONDITIONS AGREED TO BETWEEN A BORROWER AND MORTGAGE BROKER/CORRESPONDENT, AND SUCH MORTGAGE BROKER/CORRESPONDENT'S FEE IS NOT A CONDITION OR A REQUIREMENT BY Secure One Capital IN ORDER TO ACCEPT OR UNDERWRITE AN APPLICATION PACKAGE.

Loan Origination Services and Compensation. 3.1 Mortgage Broker/Correspondent Broker will, at Mortgage Broker/Correspondent’s 's sole cost and expense, prepare, prepare process and submit Application Packages to Secure One Capital First Community Mortgage, Inc. for funding consideration and will facilitate the closing of Application Packages approved for funding by Secure One CapitalLender. Mortgage Broker/Correspondent’s Broker services and facilities shall include, but will not be limited to, those services and facilities required by the Lender FCM’s Requirements, as amended from time to time, at the sole discretion of Secure One Capital FCM. The specified specified loan origination services and facilities performed by Mortgage Broker/Correspondent Broker pursuant to this Section 3.1 shall be referred to in this Agreement as the “Loan Services.” Without limiting the generality of the foregoing, Mortgage Broker/Correspondent Broker shall perform the following Loan Services, or any equivalent or similar service as may be required by Secure One Capital FCM from time to time during the term of this Agreement: A. a) Taking information from the Borrower and filling out completing the loan application; B. b) Analyzing the prospective Borrower’s income and debt and prequalifying the prospective Borrower to determine the maximum mortgage that the Borrower prospective borrower can afford; C. c) Educating the prospective Borrower in the home buying and financing process, advising the prospective Borrower about the different types of loan products available available, and demonstrating how closing costs and monthly payments could vary under each product; D. d) Collecting financial information (tax returns, bank statements) and other related documents that are part of the application process; E. e) Initiating/ordering VOEs (verifications verifications of employment) and VODs (verifications verifications of deposit); F. f) Initiating/ordering requests for mortgage and other loan verificationsverifications; G. g) Initiating/ordering appraisals in the manner required by Secure One Capitalappraisals; H. h) Initiating/ordering inspections or engineering reports; I. i) Providing disclosures (e.g.truth in lending, good faith loan estimate, other disclosures) to the Borrowerborrower; J. j) Assisting the Borrower borrower in understanding and clearing credit problems; K. k) Maintaining regular contact with the Borrowerborrower, realtorsRealtors, and Secure One Capitallender, between application and closing throughout the loan process to apprise them of the status of the application and gather any additional information as needed; L. l) Ordering legal documents; M. m) Determining whether the property was is located in a flood flood zone or ordering such service; and/or N. and n) Participating in the Loan loan closing. 3.2 Secure One Capital First Community Mortgage, Inc. may pay Mortgage Broker/Correspondent, pursuant to the terms of this Agreement and payable at the time of the closing of a Loan, compensation for the Loan Services performed by Mortgage Broker/ Correspondent Broker at the percentage rate periodically agreed to by the Parties, as set forth in the Approval RequirementsFCM approval requirements, programs and pricing options. All compensation paid by Secure One Capital FCM to Mortgage Broker/ CorrespondentBroker, and all compensation paid by Mortgage Broker/Correspondent Broker to its loan originators, shall comply with the Loan Originator Compensation Rule, as set forth in Regulation Z at 12 CFR 1026.36 and the Official Staff Official Staff Commentary to Regulation Z, and in all Bulletins, Small Entity Compliance Guides, responses to Frequently Asked Questions, and/or orders that may be published by the Consumer Financial Protection Bureau from time to time during the term of this Agreement. All compensation paid by Secure One Capital Lender to Mortgage Broker/ Correspondent Broker for its provision of the Loan Services will reflect reflect the fair market value of the Loan Services in the market area in which Mortgage Broker/Correspondent Broker performed the same. Mortgage Broker/Correspondent Broker shall disclose its compensation, and the cost of any bona fide fide and reasonable third third-party charge, if any, charged to Borrower on the Good Faith Loan Estimate of Closing Costs pursuant to RESPATRID, and in accordance with all other applicable consumer disclosure and other legal requirements. No compensation may be received by Mortgage Broker/Correspondent Broker from Borrower in connection with any Loan for which Mortgage Broker/Correspondent Broker received any compensation from Secure One CapitalFCM. 3.3 Instead of compensation from Secure One Capital as described in section 3.2Mortgage Broker may, Mortgage Broker/Correspondent may alternatively, negotiate and receive from Borrower, payable at the time of the closing of a Loan, compensation for its services that is typical and customary in Mortgage Broker/Correspondent's market area for that particular loan type. All compensation paid to Mortgage Broker/Correspondent Broker by a Borrower, and all compensation then paid by Mortgage Broker/Correspondent Broker to its loan originators, shall comply with the Loan Originator Compensation Rule, as set forth in Regulation Z at 12 CFR 1026.36 and the Official Staff Official Staff Commentary to Regulation Z, and in all Bulletins, Small Entity Compliance Guides, responses to Frequently Asked Questions, and/or orders that may be published by the Consumer Financial Protection Bureau from time to time during the term of this Agreement. Mortgage Broker/ Correspondent Broker shall disclose its compensation, and the cost of any bona fide fide and reasonable third third-party charge, if any, charged to the Borrower on the Good Faith Loan Estimate of Closing Costs pursuant to RESPATRID, and in accordance with all other applicable consumer disclosure and other legal requirements. No compensation will be paid by Secure One Capital FCM to Mortgage Broker/Correspondent Broker in connection with any Loan for which Mortgage Broker/ Correspondent Broker received any compensation from Borrower. 3.4 THE PARTIES AGREE THAT ANY FEE OTHER THAN A FEE THAT IS THE COMPENSATION DESCRIBED IN SECTION 3 OF THIS AGREEMENT IS SUBJECT SOLELY TO THE CONTRACTUAL TERMS AND CONDITIONS AGREED TO BETWEEN A BORROWER AND MORTGAGE BROKER/CORRESPONDENT, AND SUCH MORTGAGE BROKER/CORRESPONDENT'S BROKER FEE IS NOT A CONDITION OR A REQUIREMENT BY Secure One Capital FIRST COMMUNITY MORTGAGE INC. IN ORDER TO ACCEPT OR UNDERWRITE AN APPLICATION PACKAGE.

Loan Origination Services and Compensation. 3.1 Mortgage Broker/Correspondent Broker will, at Mortgage Broker/Correspondent’s Broker sole cost and expense, prepare, prepare process and submit Application Packages to Secure One Capital First Community Mortgage Inc. for funding consideration and will facilitate the closing of Application Packages approved for funding by Secure One CapitalLender. Mortgage Broker/Correspondent’s Broker services and facilities shall include, but will not be limited to, those services and facilities required by the Lender First Community Mortgage Inc.’s Requirements, as amended from time to time, at the sole discretion of Secure One Capital FCM. The specified specified loan origination services and facilities performed by Mortgage Broker/Correspondent Broker pursuant to this Section 3.1 shall be referred to in this Agreement as the “Loan Services.” Without limiting the generality of the foregoing, Mortgage Broker/Correspondent Broker shall perform the following Loan Services, or any equivalent or similar service as may be required by Secure One Capital FCM from time to time during the term of this Agreement: A. a) Taking information from the Borrower and filling out the loan application; B. b) Analyzing the prospective Borrower’s income and debt and prequalifying the prospective Borrower to determine the maximum mortgage that the Borrower prospective borrower can afford; C. c) Educating the prospective Borrower in the home buying and financing process, advising the Borrower about the different types of loan products available available, and demonstrating how closing costs and monthly payments could vary under each producteachproduct; D. d) Collecting financial information (tax returns, bank statements) and other related documents that are part of the application process; E. e) Initiating/ordering VOEs (verifications verifications of employment) and VODs (verifications verifications of deposit); F. f) Initiating/ordering requests for mortgage and other loan verificationsverifications; G. g) Initiating/ordering appraisals in the manner required by Secure One Capitalappraisals; H. h) Initiating/ordering inspections or engineering reports; I. i) Providing disclosures (e.g.truth in lending, good faith loan estimate, other disclosures) to the Borrowerborrower; J. j) Assisting the Borrower borrower in understanding and clearing credit problems; K. k) Maintaining regular contact with the Borrowerborrower, realtorsRealtors, and Secure One Capitallender, between application and closing to apprise them of the status of the application and gather any additional information as needed; L. l) Ordering legal documents; M. m) Determining whether the property was located in a flood flood zone or ordering such service; and/or N. and n) Participating in the Loan loan closing. 3.2 Secure One Capital First Community Mortgage Inc. may pay Mortgage Broker/Correspondent, pursuant to the terms of this Agreement and payable at the time of the closing of a Loan, compensation for the Loan Services performed by Mortgage Broker/ Correspondent Broker at the percentage rate periodically agreed to by the Parties, as set forth in the Approval RequirementsFCM approval requirements, programs and pricing options. All compensation paid by Secure One Capital First Community Inc. to Mortgage Broker/ CorrespondentBroker, and all compensation paid by Mortgage Broker/Correspondent Broker to its loan originators, shall comply with the Loan Originator Compensation Rule, as set forth in Regulation Z at 12 CFR 1026.36 and the Official Staff Official Staff Commentary to Regulation Z, and in all Bulletins, Small Entity Compliance Guides, responses to Frequently Asked Questions, and/or orders that may be published by the Consumer Financial Protection Bureau from time to time during the term of this Agreement. All compensation paid by Secure One Capital Lender to Mortgage Broker/ Correspondent Broker for its provision of the Loan Services will reflect reflect the fair market value of the Loan Services in the market area in which Mortgage Broker/Correspondent Broker performed the same. Mortgage Broker/Correspondent Broker shall disclose its compensation, and the cost of any bona fide fide and reasonable third third-party charge, if any, charged to Borrower on the Good Faith Loan Estimate of Closing Costs pursuant to RESPATRID, and in accordance with all other applicable consumer disclosure and other legal requirements. No compensation may be received by Mortgage Broker/Correspondent Broker from Borrower in connection with any Loan for which Mortgage Broker/Correspondent Broker received any compensation from Secure One Capital.First Community Mortgage Inc. 3.3 Instead of compensation from Secure One Capital as described in section 3.2Mortgage Broker may, Mortgage Broker/Correspondent may alternatively, negotiate and receive from Borrower, payable at the time of the closing of a Loan, compensation for its services that is typical and customary in Mortgage Broker/Correspondent's Broker market area for that particular loan type. All compensation paid to Mortgage Broker/Correspondent Broker by a Borrower, and all compensation then paid by Mortgage Broker/Correspondent Broker to its loan originators, shall comply with the Loan Originator Compensation Rule, as set forth in Regulation Z at 12 CFR 1026.36 and the Official Staff Official Staff Commentary to Regulation Z, and in all Bulletins, Small Entity Compliance Guides, responses to Frequently Asked Questions, and/or orders that may be published by the Consumer Financial Protection Bureau from time to time during the term of this Agreement. Mortgage Broker/ Correspondent Broker shall disclose its compensation, and the cost of any bona fide fide and reasonable third third-party charge, if any, charged to the Borrower on the Good Faith Loan Estimate of Closing Costs pursuant to RESPATRID, and in accordance with all other applicable consumer disclosure and other legal requirements. No compensation will be paid by Secure One Capital First Community Mortgage Inc. to Mortgage Broker/Correspondent Broker in connection with any Loan for which Mortgage Broker/ Correspondent Broker received any compensation from Borrower. 3.4 THE PARTIES AGREE THAT ANY FEE OTHER THAN A FEE THAT IS THE COMPENSATION DESCRIBED IN SECTION 3 OF THIS AGREEMENT IS SUBJECT SOLELY TO THE CONTRACTUAL TERMS AND CONDITIONS AGREED TO BETWEEN A BORROWER AND MORTGAGE BROKER/CORRESPONDENT, AND SUCH MORTGAGE BROKER/CORRESPONDENT'S BROKER FEE IS NOT A CONDITION OR A REQUIREMENT BY Secure One Capital FIRST COMMUNITY MORTGAGE INC. IN ORDER TO ACCEPT OR UNDERWRITE AN APPLICATION PACKAGE.