LOAN PROCESSING AGREEMENT (Print this Agreement by pressing Control P)
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.
All parties, the Broker, Mortgage Loan Originator 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 fees are $250 for
each additional submission, for a Borrower file submitted more than twice:
Fee Schedule and Selection of Processor Tasks and/or Loan Officer Backup Services:
The following is the Schedule of 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 may be negotiated.
For Borrower Paid Compensation Plans, all or a portion of the loan processing fee may be paid by the borrower. At this time, the maximum processing fee allowed by most lenders is $900.
If the Lender Paid Compensation Plan does not include the full
processing fee, the Broker/MLO
shall 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. A loan cancellation fee of up to 50% of the
processing fee may be charged, if the loan is rejected by the funding lender, or
if the borrower cancels the loan after submission.
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 and Renew 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.
Payment to Processor will depend on the allowed disclosure
method for Processing Fee, per the lender. If the Processing Fee is
part of the Broker Origination Fees, then Broker will receive the funds and pay
Processor directly, upon receipt of his Broker check. If allowed,
Processor can submit an Invoice directly to the escrow company for payment.
Either way, Broker and Loan Originator guaranty that payment for services will
be made to the Processor as provided for herein.
After any loan closing, any agreed to additional processing fees or loan officer backup services fees, will be paid to processor, directly by Broker or MLO, upon receipt of his Broker Origination Check.
Non Competitive Clause: The undersigned Contract Processor, agrees not to compete with the loan originations or their companies, for the business relationships in existence between the Borrowers and the Loan Originators.
Contract processor will in no way directly or indirectly initiate, contact, or solicit loan origination business or real estate business, from clients they have processed loans for, as a result of their relationship with the Loan Originator or the Mortgage Brokerage Company associated with each Borrower.
Nor will the Contract Processor disclose confidential
information regarding the borrower’s loan application or documentation, to any
party, other than the Loan Originator, funding lender and necessary third
parties, through or after the loan origination process.
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 after receipt of any outstanding payment, or 5 days of Termination of Agreement, if no payment is outstanding.
In order for Broker to comply with his document review requirements, Processor agrees to furnish any requested documentation, during the course of the loan. Broker will submit a list of documentation he is required to review, at the opening of any new loan transaction.
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
DRE Broker License 00673791
NMLS Personal ID 234977