LOAN PROCESSING AGREEMENT
This Loan Processing Agreement is entered into, and becomes effective the latest
of the dates of the signing of the principals, as named at the end of this
document.
Whereas the Broker, and his mortgage loan originators, are in the business of
originating and brokering mortgage loans. (Broker, MLO, Loan Officer, are terms
used interchangeably); and
Whereas Judith Sellens, Contract Processor, is in the business of processing
mortgage loans, and is interested in processing mortgage loans for Broker under
the terms and conditions of this agreement, this agreement is created.
Both the Broker and the Processor represent that they are fully licensed to act
in their capacities per this agreement, and are aware of the following
provisions.
Senate Bill 1137, effective 1/1/11 - Enforcement of Mortgage Broker Loan Originator Requirements:
Anyone acting as a mortgage loan originator (MLS) without a MLO license endorsement will be guilty of a crime punishable by six months imprisonment, plus a $20,000 fine.
A broker cannot employ or compensate a real estate licensee for MLO activities unless that licensee has a license endorsement. The MLO company broker must have the MLO license endorsements, as well as the individual MLO originators.
This law has also given the Department of Real Estate (DRE) the authority to deny or revoke a MLO license endorsement or take other action.
Loan Originator will obtain the complete borrower loan application and perform
customary loan officer duties throughout the loan process, which includes
interfacing with the borrower.
Loan Processing:
Broker shall submit loan applications electronically to Judith Sellens for
processing. Loan processing software is Calyx Point. Processor
agrees to promptly and diligently process such loans in compliance with all
applicable Federal, State, and Local laws, and according to the guidelines of
Broker’s chosen investor/funding lender.
The following Fee Schedule is for one or two submissions of
the Borrower file to Lenders. Additional submission are at a $250 cost for
each additional submission:
Fee Schedule and Selection of Processor Tasks and/or Loan Officer Backup
Services:
Please choose one or more fees and services, which includes all disclosure
preparation:
( ) Conventional Loan Amount > $150K – Processing Fee $900;
Loan Amount < 150K – Processing Fee $700.
( ) FHA and VA loan Processing, any loan size, $900
( ) Reverse Mortgages - $500 base fee, plus 10-20% of total Broker Income. Split depends on loan size.
( ) Partially processed loans – negotiate each loan as to work remaining to be completed.
( ) Separate - agreed upon fee
structure.
All or a portion of the loan processing fee may be paid by the borrower.
The maximum processing fee allowed by most lenders is $900. The Broker/MLO
may pay the processing fee shortage, if any, along with the other selected loan
officer backup services fees, directly to the processor, from income received by
the Broker or MLO at close of escrow.
Determination of Loan Viability: Loan officer will take the
loan application, establish original loan amount, complete the Initial Fees
Worksheet and run the credit report. Once the Loan Officer determines
there is a very high probability that the loan program will meet the needs of the
borrower and be approved by the funding lender, MLO will email the completed
Calyx Point File to processor. Of course, if the complete signed loan
application is available, loan officer will scan and email the signed documents
to the processor.
Processor will review the loan application and supporting
documentation, agree that the loan has a high probability of being funded, and
begin processing the loan.
As part of the MLO functions, prior to the issuance of the loan documents, the
loan officer will establish the final loan amount and lock in the loan.
Loan Processor will process all loan types, including government, conventional,
hard money and reverse mortgages. However, will not process loans with the
following funding lender(s):
Florida Capital Mortgage
Broker agrees to keep Processor updated of any changes in the policies and
practices of their chosen Lender. Processor will assist Broker in
satisfying all conditions to enable the loan to close quickly.
Broker agrees to hold Processor harmless for any liability created by Broker,
its agents or assigns.
For Lender Paid Compensation Loans,
Processor will place a demand for processing fees in escrow by sending an
invoice for the basic processing fee as shown on the Good Faith Estimate.
This invoice will be for a full or partial fee, as required. For Borrower
Paid Compensation Loans, Broker will pay processor directly, upon receipt of the
Broker check.
Any agreed to additional processing fees or loan officer backup services fees,
will be paid to processor directly by Broker or MLO within 5 days of closing the
transaction.
Disclosures: Processor assumes
no liability for errors or omissions by all parties for failure to properly
disclose the processing fees or other fees on the HUD-1 or other disclosures.
All loan fees will be taken from the Initial Fees Worksheet which is prepared by
loan officer. Broker will be ultimately responsible for the loan
processing fees due to Processor, and for securing all disclosing of these fees
on the Good Faith Estimate, and verifying that the closing figures are accurate.
Termination of Agreement: Either party may terminate this agreement
at will, by notifying the other party in writing, and ascertaining evidence of
receipt of said delivery. In the event of termination, loans in process
will be completed, but no new loans will be submitted to Processor by Broker.
Upon closing of any loan, or upon Termination of Agreement, Processor will
electronically deliver copies of all documentation submitted to the funding
lender, during the course of the loan. Said submission of electronic
documentation will be furnished to Broker within 5 days from either occurrence.
In witness whereof, signature of the parties below, indicates agreement by all
parties, and the last signature date shall become the effective date of this
agreement and the date upon which new loans can be submitted for processing.
____________________________
____________
Broker Signature Signature Date
____________________________
____________
Mortgage Loan Originator Signature Date
____________________________
______________________
Broker Company Name
Federal Tax ID Number
____________________________ ____________
Processor Signature Signature Date
Judith Sellens
DRE Broker License 00673791
NMLS Personal ID 234977
www.sellenslending.com
Rev 3/5/12