Contract Mortgage Processing Agreement

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Contract Mortgage Processing Agreement

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THIS CONTRACT MORTGAGE PROCESSING AGREEMENT is entered into this day the date the form was submitted, by and between the loan originator submitting the file (Hereinafter referred to as Client), and ProcessingAdministration.Com, (Hereinafter referred to as PROVIDER).
WITNESSETH:

WHEREAS, Client is in the business of originating and making mortgage loans; and

WHEREAS, Client is currently licensed as applicable by all Local, State and Federal regulatory Agencies; and

WHEREAS, PROVIDER is currently licensed as applicable by all Local, State and Federal regulatory Agencies, is in the business of processing mortgage loans, and is interested in processing Mortgage loans for Client under the terms and conditions set out herein.

NOW, THEREFORE, the parties hereto agree as follows:

LOAN PROCESSING: Client may, from time to time, submit loan applications it has originated to PROVIDER for Processing. PROVIDER agrees to promptly and diligently process such loans, and will make every effort to see that all loan applications are fully processed to the extent that the loan file makes it to closing and is successfully funded. PROVIDER further agrees to provide to Client with the following services as well as other services including, but not limited to the following:

PROVIDER shall, upon receipt of the electronically submitted file, begin processing the application for closing, which shall include the following procedure:

Receive from Client disclosure and supporting documents / order verifications of employment, deposit, and rental or mortgage history; credit report supplements as required / order appraisal / order FHA/VA case numbers / order and assemble such other information needed to fully process the Loan / delivery of the Loan File, fully processed, to the Client's investor, as the case may be, for final approval / scheduling of closing.

Client agrees to keep PROVIDER updated of any changes in the policies and practices of their chosen Lender.

PROVIDER will follow up with the underwriter until an underwriting decision has been made, and will assist the Client in satisfying all conditions so the loan will close as quickly as possible.

As directed by Client, PROVIDER will order title work, hazard insurance, verifications or any other documents which may be required, from investor of Client's choice.

PROVIDER will assist the Client in coordinating the closing, and will follow the closing through to funding; however, PROVIDER will assume no liability for errors or omissions of fees by any party, and Client agrees to indemnify and hold harmless PROVIDER for any liability created by Client, its agents or assigns.

PROVIDER agrees to keep a good record of status of all documentation for each loan, and to coordinate with Client as to the status of all loans by providing a status report on each loan via e-mail.

Additional responsibilities of Provider:

Within a reasonable time from receipt of a Loan application and the necessary complete financial information and other supporting documentation, Provider shall review and process the Loan application, which includes performing the following Services (collectively “Services”), as appropriate for the Loan type:

• Communicate with Client’s loan officer regarding any issues which arise during Loan processing;
• Communicate with Client’s loan officer regarding items needed for Loan submission to underwriting;
• Review documents evidencing income, assets, source of funds and reserves;
• Consult with Client’s loan officer to obtain sales contract and other information necessary to order appraisal;
• Inform Client of any conditional items needed to gain final loan approval for closing;
• Submit loan through the automated underwriting system of the agency for the particular loan program. (Fannie Mae DU, Freddie Mac LP, USDA GUS, FHA TOTAL Scorecard, or VA through Fannie Mae or Freddie Mac AUS system); (Client to provide Provider with user id and password to access the system.)
• Receive and forward title insurance commitment;
• Obtain documentation for closing, hazard insurance premium, payoff and taxes;
• Submit file and conditions to underwriting;
• Consult with Client’s loan officer to obtain underwriting conditions;
• Resubmit conditions to underwriting for “clear to close” status;
• Communicate with Client’s loan officer to obtain preliminary closing disclosure, preliminary title commitment, hazard insurance, and tax information from Borrower and/or closing agent.
CLIENT REQUIREMENTS: Client responsibilities include, but not limited to:
Originate and complete the loan application / Collect the Application fee, if applicable / pre-qualify the applicants for the Loans / provide tri-merge in-file credit report / collect W-2's, pay stubs, bank statements, tax returns / complete and timely forward, any required disclosures /deliver to PROVIDER, the Application together with all other documents and information referenced in this paragraph, the "Loan File", to be processed by PROVIDER / receive confirmation email that processing order has been received within 8 hours of loan submission for processing on Providers web portal. If confirmation is not received, send email to processing manager.
Selecting an appropriate investor / Locking in interest rate with the investor / Gathering additional items from the borrower as outlined on the subsequent "additional items needed list" provided by PROVIDER / Verify accuracy of Closing Disclosure and closing fee sheet / Sending all original documentation to PROVIDER or investor as requested / Provide user id and password to lender portal / Provide user id and password for credit report portal for reissuing credit reports and ordering credit supplements / Provide 1 touch loan file and condition submission.
Additional Responsibilities of Client.

• Meet with Borrower to discuss programs and rates;
• Complete Loan application with Borrower;
• Request and collect financial information (such as tax returns, bank statements, W-2s, pay stubs, and sales contracts) and other related documents that are part of the application process from Borrower;
• Submit Loan application, financial information, and other relevant documentation through Provider’s web portal to Provider;
• Make no misrepresentation or omission of information to Provider;
• Communicate with borrowers to obtain and transmit all documentation requested by Provider;
• Provide to Borrowers all documents Client is required to provide under Applicable Requirements and comply with all other Applicable Requirements;
• Review Loan application for completeness;
• Request any additional documentation from Borrower required by Provider;
• Complete interest rate lock through investors web portal. Client shall be responsible for the interest rate lock and Client’s compensation and Client shall indemnify and hold Provider harmless from any loss to Client in connection with the interest rate lock or other Loan terms; and
• Obtain payment from Borrower for credit report and appraisal and provide payment details to Provider. Provider will utilize Clients payment method of choice for their clients.
LOAN PROCESSING FEE SCHEDULE: Client agrees to pay a fee to PROVIDER for processing loans, said fee schedule is attached hereto entitled "Exhibit "A" and made a part of this agreement as if fully set out herein. Additional fees may, from time to time, be incurred on some transactions. Those fees are set out as follows:
Additional fees include but are not limited to, courier fees, VOE fees, HOA Fees, the actual charges incurred will be charged to the card on file or the borrowers credit card as chosen by Client.
Any expenses to PROVIDER for credit reports, verifications or payoffs actual charges incurred.
Our fees are subject to change. In the event of a price change PROVIDER will first give Client a minimum of thirty (30) days’ notice of any increase in our fees.
THE LOAN PROCESSING FEE WILL BE PAID TO ‘PROCESSING ADMINISTRATION’, AT CLOSING, DIRECTLY FROM THE CLOSING AGENT.
DISCLOSURES: PROVIDER assumes no liability for errors or omissions by all parties for failure to properly disclose the processing fees on the CD or any other disclosures. Client will be ultimately responsible for the loan processing fees due to PROVIDER and securing all disclosing of these figures on settlement statement and verifying that the closing figures are accurate. Fees not paid to Provider at closing will be paid by Client within 15 days of closing to address: 41800 Hayes Road, Clinton Twp MI 48038.

CONFIDENTIALITY: PROVIDER agrees to treat as "confidential" the identities of all borrowers, Lenders/investors and Clients, and all financial information submitted by borrowers whose loan applications are in process or were processed in the past. Confidentiality. Provider and Client mutually agrees to treat as confidential the identities of, and all financial information submitted by, all borrowers whose loan application are being processed, or have been processed by Provider.
Each party represents that it has an information security program required under applicable law that incorporates physical, electronic, and procedural safeguards reasonably designed to (i) ensure the security and confidentiality of the Confidential Information, (ii) protect against any anticipated threats or hazards to the security or integrity of the Confidential Information, and (iii) protect against unauthorized access to or use of such Confidential Information that could result in substantial harm or inconvenience to borrowers.
TERMINATION OF AGREEMENT: Either party may terminate this agreement at will, by notifying in writing and delivered by USPS mail or email, any intention to terminate this agreement. If either party terminates this Agreement, PROVIDER agrees to promptly deliver to Client all loan applications currently being processed, and all files for loans that have closed via electronic delivery in exchange for any outstanding fees that might be due to PROVIDER.

Disclosures. Provider assumes no liability for errors or omissions of third parties on loan applications or closing documentation. Client is entirely responsible for verifying closing figures, and all documents prior to signing, as well as assuring that all loan documents meet state and federal guidelines. Additionally, Client is responsible for the following: a) Choosing the lender to submit the loan application to, b) Locking the chosen interest rate with the lender, c) Helping gather the missing items from the borrower as outlined on the "processing items list" as provided by Provider, d) Forwarding all original documentation to Provider as requested.

Termination of Agreement. Either party may terminate this agreement at will. If either party terminates this Agreement, Provider agrees to promptly deliver to Client all loan application files currently being processed, and all files for loans that have closed, in exchange for a check for all work performed by Provider as referenced to in this agreement.

Non-solicitation. Provider agrees that it will not solicit any of the borrowers whose loan applications are submitted to Provider for the purpose of obtaining loans for such persons. Provider shall not convey or transfer any loan application information to any other company without specific written permission form Client. PROVIDER and Client mutually agrees not to solicit, transfer, imply or convey any loan application information, Provider’s or Client's business practice information to any other companies, individuals or third parties.

PROVIDER and Client mutually agrees that neither shall solicit for employment or a contractual business arrangement, or employ or contract with the employees of the other during the term of this agreement and for two years (or maximum term allowable by law) after the date of termination of this Agreement.

INDEPENDENT CONTRACTOR: Client acknowledges and agrees that PROVIDER is not an employee of the Client, and further acknowledges PROVIDER is an independent contractor. PROVIDER may, from time to time, fill out order forms on behalf of the Client in order to secure appraisals, credit reports, title insurance, surveys or other documents necessary to perform its processing obligations. It is understood and agreed that PROVIDER orders these documents as a courtesy to the Client, and the Client agrees to accept financial responsibility for any and all documents ordered in connection with the processing of their loan applications.

Client shall not represent that it is acting as an agent of Provider or utilize Provider’s name, logo, trademark or other copy written material except to the extent that is specifically authorized to do so. The parties acknowledge and agree that Provider shall act as an independent contractor for Client, the parties are separate entities, neither may bind the other, and they do not intend to create a partnership or joint venture by virtue of this Agreement.

This agreement is non-exclusive to either party.

PARTIES FURTHER AGREE to take into consideration the needs of the other party and will discuss openly, issue per issue, those particular needs as they arise, but this in no way obligates the other party to amend this agreement unless those issues are mutually agreed upon.

THIS AGREEMENT: is to be considered the complete and final agreement between the parties. Any changes to the terms of this agreement must be in writing, signed by all parties and be made a part of this agreement by reference.

PARTIAL INVALIDITY: Changes made to this agreement by operation of law will not void the entire agreement, and the parties agree to abide by any parts of this agreement not affected until canceled by either party as described in this agreement.

IN WITNESS WHEREOF, parties have entered into this agreement on the day and date indicated on first page:

EXHIBIT "A"
Processing Agreement Services
Fees paid by borrower at closing:

• Processing Fee (all loan types) $799
• 1st / 2nd Combo $1099
• Standalone 2nd $399
• Re-Submission after first approval $200
• Non QM $799
• Construction add on $399
• Redo Disclosures no charge
• Cancelled Loan no charge

Fees paid by Client in advance of service

• Disclosures $15.00

Fees paid by Client for loans that do not close:

• Any out of pocket expenses incurred by provider.

I agree to the terms and conditions.

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