OSF FINANCIAL SERVICES. INC.
0000 XXXXXXXXXXXX XX,. #0 00
XXXXXXX, XX 00000
EMPLOYMENT AGREEMENT
This Agreement for Employment is made June 15's', 2001 by and
between OSF Financial Services, Inc. ("Employer") and Xxxxxx X.
Xxxxx ("Employee").
For good and valuable consideration, receipt of which is hereby
acknowledged the Employer shall employ as any Employee subject to
the following terms and conditions.
1.The Employee shall commence employment on January 1, 2001.
2. The Employee shall perform the following duties and
responsibilities:
POSITION: PRESIDENT/CHIEF UNDERWRITER
DUTIES & RESPONSIBILITIES
The President/Underwriter - shall have the following duties and
responsibilities:
A. The purpose, duty and responsibility of the
President/Chief Underwriter is to provide oversight and
manage all loan processing personnel (to include
underwriters, loan processors, loan closers), analyze,
underwrite and fund residential mortgage loans in
accordance with applicable lending guidelines such as,
FHA, VA, Xxxxxx Mae, Xxxxxxx Mac, USDA Rural
Development, conventional/non-conforming and OSF Quality
Control Management policies.
President/Chief Underwriter shall provide direct
oversight and supervision over Loan Processing Center
through telephonic, electronic and personal visits with
and to the Loan Processing Center semi-monthly.
B. The President/Chief Underwriter must establish and keep
clear, concise communication with the Loan Processing
Center Manager, the Vice President and the Director of
the Loan Processing Center. Electronic messages are
highly recommended. Hard copy files are required to kept
at the corporate officc.
C. The President/Chief Underwriter is responsible for the
following:
1. For management and oversight of the loan
processing, closing and funding operations;
2. Is responsible for the implementation and enforcement of
company policies;
3. Ensuring compliance with lending guidelines along with
federal and state laws;
4. Ensuring that Loan Processing Center Management is
performing their assigned duties and responsibilities in
accordance with the standards of the industry and
policies of the company and in accordance with the laws,
rules and regulations;
5. Informing the corporation's CEO and Director of
Administration of any violation of company's policy,
lending guidelines and/or federal and state laws. This
must be in writing withing 24 hours of its occurrence;
6. Encourage subordinates to develop and implement
"Customer Relations" ideas and concepts to facilitate
and perpetuate a growing business atmosphere.
7. Ensure that loan processing staff is properly train and
capable of meeting the company's monthly goals by having
subordinates develop and implement training programs.
Participate, plan, monitor and supervise training
programs for all loan processing personnel.
D. The PresidenilChief Underwriter shall attend continuing
education classes for Residential Loan Underwriters annually.
E. The President/Chief Underwriter or his/her designate shall
perform administrative duties as the position requires.
F. The President/Chief Underwriter must have or become
knowledgeable of all lending guidelines FHA, VA, RD,
Conventional and Nonconforming, and:
1. Must monitor to ensure that staff is knowledgeable of
all loan
documentation, ie., Verication of Rent (VOR),
Verification of Mortgage
(VOM), Verification of Deposit (VOD), disclosures, Good
Faith Estimates
((WE), Truth-In-Lending (TIL), Loan Summary (FNMA),
Mortgage
Calculation Worksheet (FHA MCAW) and other required
documents.
Must know how to fill-out and/or calculate all loan
documents.
2. Must monitor to ensure that staff knows how to evaluate
all verification documents for compliance with all
lending guidelines (FHA, VA, RD, Conventional and Non-
Conforming).
G. The President/Chief Underwriter must be knowledgeable of and
cause to be enforce Federal and State consumer-oriented laws
and other lending guidelines:
1. Fair Credit Reporting Act
2. Truth-in-Lending Act
3. Equal Credit Opportunity Act
4. Fair Housing Act
5. Real Estate Settlement Procedures Act
6. Flood Disaster Protection Act
7. Veterans Administration (VA) Guidelines (Government
loans)
8. U.S. Dept. Of HUD - FHA Guidelines (Government loans)
9. U.S. Dept. Of Agriculture - Rural Development (RD)
(Government loans)
10. Xxxxxx Mae Guidelines (Convention loans)
11. Xxxxxxx Mac Guidelines (Conventional loans)
12. Non-Conforming Lending Guidelines
H. The President/Chief Underwriter shall adhere to and enforce
company policies and guidelines as indicated in the Personnel
Policy Manual along with state and federal laws.
The President/Chief Underwriter shall ensure that the Loan
Processing Center shall be in compliance with Audit
guidelines at all times by requiring the following
documentation in all loan files:
Uniform Residential Loan Application - 1003
Conventional/FHA Prequali1~ing Sheet
Notice to Applicants - Privacy Act
Disclosure Statement - Transfer & Servicing
Disclosure - Escrow
Fee Disclosure - Amount must be filled out.
Request for Copy or Transcript of Tax
Letter of Consent (2)
Good Faith Estimate of Charges (Completed and signed by
both the applicant and the RMS)
If VA loan, appropriate VA documents
If RD loan, appropriate RD documents
If FHA loan, appropriate FHA documents
Appropriate and applicable Loan Administration Fees
must be collected.
All fees collected must be properly recorded in the
loan file (hard) and electronic file (computer) by
the loan officer and loan processor.
Closing statement(s) or Termination Letter
10. Act as liaison between corporation and all governmental
agencies (HIJT)/FHA, VA, USDA/RD, Xxxxxx Mae & Xxxxxxx
Mac). Maintain relationships and keep in good standing.
11. Provide public relations for the corporation.
12 Reporting - The President/Chief Underwriter reports to the
CEO.
The Employee shall perform such further and other duties as
are required by the Employer.
3. The Employee shall work Monday through Friday from 8 A.M. to
5:30 P.M. and such additional hours as are required by the Employer
for the Employee to competently perform the duties of his position.
The Employee shall use his best efforts on behalf of the Employer.
4. The Employee shall comply with all stated standards of
performance, policies, rules, regulations and manuals, receipt of
which by the Employee is hereby acknowledged. The Employee shall
also comply with such future Employer policies, rules, regulations,
performance standards and manuals as may be published or amended
from time to time.
5. The Employee's employment under this Agreement shall commence
January 1, 2001, and shall terminate on December 31, 2005, unless
terminated prior to such time for cause. Cause is defined as
actions or lack thereof that presents actual danger to the
corporation or its employees, the value of its stock, or other
damage(s) that are deemed detrimental to the good order and
discipline of the corporation and the benefit of the shareholders.
6. The Employer shall pay to the Employee as compensation for
services, and the Employee agrees to accept the sum of $45,000.00
per year payable bi-monthly of $1875.00, and be entitled to the
following "fringe benefits": Medical, Dental & Life Insurance,
401(k) Plan, Stock Option Plan, Other Retirement Plan corporation
may put into effect.
Bonus - Based on the corporation's annual performance (amount to be
determined by the Board) the President may be eligible for a bonus.
7. This contract of employment may terminate upon the occurrence
of any of the following events: (a) the death of the Employee; (b)
the failure of the Employee to perform his duties satisfactorily
after notice or warning thereof; (c) for just cause based upon non-
performance of duties by Employee; (d) economic reasons of the
Employer which may arise during the term of this Agreement and
which may be beyond the control of the Employer.
In the event of termination by Employer, Employer agrees to the
following without change by the Employer and/or its Board of
Directors or its successors:
1. Employee shall be entitled to cash compensation in the
amount of $1,000,000.00 payable at the time of
termination;
2. Employee shall be entitled to maintain his/her Stock
Option Plan;
3. Employee shall be entitled to purchase any company
vehicle operated by the Employee for $1.00
If the Employee self-terminates employment for any reason besides
health (mental or physical) or mandatory retirement age, the
Employee shall forfeit the above guarantee benefits.
8. The Employee shall not, at any times during the period hereof,
and for five (5) years from the date of termination of this
Agreement, directly or indirectly, within a geographic area of 100
miles, engage in, or become involved in, any competitive or similar
business as that of the within Employer.
9. Any dispute under this contract shall be required to be
resolved by binding arbitration of the parties hereto. Each party
shall select one arbitrator and both arbitrators shall select a
third. The arbitration shall be governed by the rules of the
American Arbitration Association then in force and effect.
10. This Agreement may not be assigned without prior notice by
either party, and subject to the mutual consent and approval of any
such assignment.
11. This Agreement constitutes the complete understanding between
the parties, unless amended by a subsequent written instrument
signed by the employer and employee.
Employee Employer
YE.Hardy Date Date
President, Chief Underwriter Chief Executive Officer
