2. Doing business with American Financial Resources, Inc As a “C” (Correspondent) As a “CDE” (Correspondent Delegated)

3. American Financial Resources, Inc is the DE Underwriter American Financial Resources, Inc to show as the SPONSOR on FHA Case Number Assignment American Financial Resources, Inc insures the loan

4. Correspondent is the DE Underwriter Correspondent insures the loan

5. Select your correct company code: C or CDE 203K streamlines: AFR must underwrite and close the loan LTV for 203K loans: Use the lesser of the sales price or the appraised value to calculate the MIP cutoff. IF submitting as a CDE and your closing package is included with your original submission you will need to upload your closing package into a separate document name: Correspondent Only/Closing Package for Closed Loans 4506T transcripts are required ( both C & CDE ) Flood Cert to be obtained via Corelogic © If you are not able to obtain a Corelogic © flood cert, AFR must be informed. We will order it for you and the corresponding fee will be deducted from the wire at purchase. File goes to Underwriting

6. Borrower Contact Sheet- either AFR’s or your company’s Approval Sample Webtrac Screen Shot Income Calculation Worksheet ( C & CDE ) Income Calculation Worksheet Title report Final Lock / GFE Post Closing Contact Sheet Funding Procedures Sheet 3 attachments will be sent with Approval: *Post Closing Contact Sheet *Funding Procedures *1003 – or – Income Calculation Sheet (final 1003 income must match all AFR’s – “C”s only) Wire Instructions Aged Loans- AFR will not purchase loans with a 90 day note Matrix questions

8. Must be sent to your team Account Manager-either electronically: uploaded into a separate document: Correspondent Only – Conditions for Closing Loan or by mail If AFR is drawing docs, the closing package must be over-nighted ; it cannot be uploaded High Cost Provide proof Upfront MIP was paid Provide proof loan has been registered with MERS ( our originator ID is 1003363 ) American Financial Resources Inc will need to be the servicer and investor Provide Copy of MIC Cert ( CDE’s only ) Lender to provide wire instructions on company letterhead stationary Review HUD1 Certified True Copy of note Verify prior loan was paid off TX/LA loans must use MRG for title review/closing package or AFR will provide the closing package for you

10. Use aggregate method for calculation total monthly payment: YES or NO? ___________ _NO_____ Escrow Payment Rounding Scheme:_________________________________ ______________ROUND UP__ Escrow Cushion (# of months) _______________2_______ Per-diem interest: calculated to FIRST day of the month________ ______ _____FIRST_____ Ignore number of Odd Days in APR calc? ________ ___ __NO______ (Odd Days = Number of days included to calculate per-diem interest) Round per-diem to the penny before Odd Days Amount Calc: YES or NO? _____________ NO_____ Odd Day rounding scheme: ______________________________________________________ROUND UP__ Display per diem to how many spaces right of the decimal? (4 maximum) ________ ______4_____ Number of days to use for Interest Factor re: Per-Diem calc: 365 ______ __ ______ 365____ Number of days to use for Interest Factor re: Per-Diem calc on ARMS: 365 ____________________365____ Display APR to how many spaces right of the decimal? ____ _ ________ _____3_____ APR Rounding Scheme: ___________________________________________________TO NEAREST PENNY_ P & I Rounding Scheme: __________________________________________________TO NEAREST PENNY_ MIP Rounding Scheme:______________________UP FRONT – ROUND UP – MONTHLY TO NEAREST PENNY Are Escrowed MIP Payments Refunded?__________________________ _Refunded on HUD if applicable__ QUESTIONNAIRE FOR TRUTH-IN-LENDING CALCULATIONS Truth In Lending Calculation Reference

11. Use aggregate method for calculation total monthly payment: YES or NO? ___________ _NO_____ Escrow Payment Rounding Scheme:_________________________________ ______________ROUND UP__ Escrow Cushion (# of months) _______________2_______ Per-diem interest: calculated to FIRST day of the month________ ______ _____FIRST_____ Ignore number of Odd Days in APR calc? ________ ___ __NO______ (Odd Days = Number of days included to calculate per-diem interest) Round per-diem to the penny before Odd Days Amount Calc: YES or NO? _____________ NO_____ Odd Day rounding scheme: ______________________________________________________ROUND UP__ Display per diem to how many spaces right of the decimal? (4 maximum) ________ ______4_____ Number of days to use for Interest Factor re: Per-Diem calc: 365 ______ __ ______ 365____ Number of days to use for Interest Factor re: Per-Diem calc on ARMS: 365 ____________________365____ Display APR to how many spaces right of the decimal? ____ _ ________ _____3_____ APR Rounding Scheme: ___________________________________________________TO NEAREST PENNY_ P & I Rounding Scheme: __________________________________________________TO NEAREST PENNY_ MIP Rounding Scheme:______________________UP FRONT – ROUND UP – MONTHLY TO NEAREST PENNY Are Escrowed MIP Payments Refunded?__________________________ _Refunded on HUD if applicable__ QUESTIONNAIRE FOR TRUTH-IN-LENDING CALCULATIONS Truth In Lending Calculation Reference

12. Who do you use as a Warehouse Bank? Original note must be endorsed to American Financial Resources, Inc. Copy of mortgage with the legal description Allonge must exactly match note Once reviewed by AFR’s Clearance on Collateral- instant cooperation with all post-closing Collateral Condition Funding Procedures

13. Pre-Funding packages are electronically archived Docs are available for future retrieval

14. Director of Operations: Laura J. Brandao lbrandao@afrwholesale.com 973-588-8539 E-Fax: 973-494-0322 Underwriter Manager: Taure Cleveland tcleveland@afrwholesale.com 973-588-8543 E-Fax: 973-553-0155 Account Manager: Maddy Wik madeline@afrwholesale.com 973-588-8540 E-Fax: 973-553-0155 Collateral: Anna Morolla amorolla@afrmortgage.com 973-298-8271 E-Fax: 973-954-9504 Shipping & Imaging Manager: Rich Wright rwright@afrmortgage.com 973-298-8261 E-Fax: 973-782-2571