Builder Best Product Suite

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Builder Best Product Suite

• New Features and Enhancements effective April
  14th, 2006
• (Updated 1/19/2007)

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Builder Best Product Suite What is it?

• A bundle of rate lock features that can be
  tailored to meet the needs of the consumer.
• The two year rate lock gives WFHM a true
  competitive advantage.
• Developed to deliver on our customer and client
  promises
• Clients Your 1 Partner to Help You Build Your
  Business.
• Customers Working Together to Help You Achieve
  Your Personal and Financial Goals through
  Homeownership

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Builder Best Product Suite What is it?

• Program Brand
• There are four programs in the Builder Best
  Product Suite. They are
• Builder Best Classic
• Builder Best Expanded Options
• Builder Best Expanded Option Spec Lock
• Builder Best Spec Lock
• The above product names will only be used
  internally and we will continue to use Builder
  Best to externally market the program.

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Builder Best Product Suite What is it?

• Programs discussed in detail today
• Builder Best Classic
• Builder Best Expanded Options
• Note Builder Best Spec Lock is not
  impacted.

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Builder Best Product Suite What is it?
Builder Best Expanded Options
Builder Best Classic
Builder Best Spec Loc
Locks 90 360 Days
Subsidized product
Conventional Conforming Non-conforming
3, 5, 7, 10/1 Intermediate ARMs
construction/rehab/investment
Float down or relock within 60 days of closing
Program Code BEST
Ideal for all types of builders
Collect 1 closing commitment deposit or 5,000,
whichever is less
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Builder Best Classic What is it?
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Builder Best Product SuiteBuilder Best Classic

• Lock rate up to one year 90-360 days No
  Changes
• No charge for locks up to 180 days
• 0 - 180 days - FREE LOCK
• 181 - 270 days - 0.25 point - Automated Price
  Adjuster as of 10/05
• 271 - 360 days - 0.50 point - Automated Price
  Adjuster as of 10/05
• Important
• Effective with loans locked on or after May 1,
  2006, the free five- day extension option will be
  eliminated. If needed, a five-day extension at
  the cost of 12.5 bps will be allowed.

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Builder Best Product SuiteBuilder Best Classic

• No Changes
• Conforming and non-conforming Intermediate ARMs
• Subsidized product
• Program Code BEST
• Ceiling Rate Protection
• Float down or relock within 60 days of closing
• One-time option to switch to any other WF
  eligible product
• Current rate (15, 30 or 60 price)

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Builder Best Product SuiteBuilder Best Classic

• New Closing Commitment Deposit Collection
• The closing commitment deposit is non-refundable
  unless WFHM denies the loan for credit and/or
  property reasons
• However, if borrower changes to another property
  and first mortgage loan type with any Wells Fargo
  entity, the closing commitment deposit may be
  transferred to the new loan
• The closing commitment deposit will be returned
  to the borrower on their final HUD-1 reducing the
  amount of funds required at closing.

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Builder Best Product SuiteBuilder Best Classic

• Builder Best Classic Initial Lock Process
• No Changes
• The rate and price will be the daily quoted rate
  and price for 60-day commitments for acceptable
  products.
• The 60-day price is used, regardless of the
  number of days there are before closing.

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Now for the big news.

• Introducing
• Builder Best Expanded Options

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Builder Best Expanded OptionsWhat is it?
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Builder Best Product SuiteBuilder Best
Expanded Options

• Collection of the Commitment/Extended Lock Fee
  Details
• To take advantage of this feature, the borrower
  will be required to remit the cost of the lock
  (review Price Grid)
• The collected amount will be applied directly to
  the Commitment/Extended Lock1fee depending upon
  the product, price and term selected, whenever
  the loan closes with Wells Fargo.
• Indicate on the Trust deposit form, write
• BB indicating it is a Builder Best loan with
  Lock Costs only
• In the event that your loan does not close with
  Wells Fargo, the amount collected is
  non-refundable.

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Builder Best Product SuiteMoving Forward

• Questions?

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Builder Best Product SuiteMoving Forward

• Positioning Benefits to your Audience
• Positioning statements tie the benefits directly
  to your audience
• The benefit to you is
• What this means to you is
• With practice, scripting becomes your own words.
  Practice, Practice, Practice

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Builder Best Product SuiteMoving Forward

• The Builder
• Whats in it for me?
• The benefit to you is..
• Locks down your pipeline. It mitigates the risk
  of pipeline fallout
• Helps buyers in purchase decision
• Helps sales team convert traffic in contracts
• Reduces buyers remorse
• We help our builder partners build and sell more
  homes, more profitably

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Builder Best Product SuiteMoving Forward

• The Realtor/On-Site Sales
• Whats in it for me?
• The benefit to you is
• This is a sales tool that will help you sell more
  homes
• Assists buyers in purchase decision
• Provides buyers piece of mind through
  construction period to closing. Increases
  customer satisfaction.
• Reduces buyers remorse
• Mitigates pipeline fallout
• Helps ensure you get paid for all of your hard
  work, minimizing fallout

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Builder Best Product SuiteMoving Forward

• The Homebuyer
• Whats in it for me?
• The benefit to you is
• Locks down your interest rate and payment
• Provides you piece of mind throughout
  construction
• No matter what happens with interest rates over
  the next xx months, you know what your interest
  rate and payment will be when your home is
  completed
• Ensures rising interest rates wont negatively
  impact your mortgage commitment for financing.

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Builder Best Product SuiteMoving Forward

• Possible Objections-
• Buyers-Builder-Realtor
• Fee is too high
• -Yes, there is a fee associated with an
  extended rate lock but let me take you back to
  the benefits to you. Take them back to the list
• Upfront Lock-Fee
• - Credited at closing
• - 1 Deposit vs. 5 or 10 Deposit
• ABC Bank is lower
• - Lets talk about that. Have you received a
  written Good Faith Estimate? Have you already
  received a rate lock agreement outlining the rate
  and conditions of how that could change during
  the construction period?

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Builder Best Product SuiteMoving Forward

• Possible Objections
• Builder or Realtor
• ABC Competitor is lower-
• Lets talk about that
• Are you the lowest price in your market?
• What do you say to clients when they ask you to
  drop your price or commission?
• What do you say when a potential buyer says you
  are a little higher priced than your competitor?
• If we are priced slightly higher on a given day,
  they are a number of other considerations you
  need to look at fees, rate lock terms, level of
  expertise, systems in place, level of
  communication, pipeline management, customer
  experience, customer satisfaction, transactions
  will close on time.

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Builder Best Product SuiteMoving Forward

• Wells Fargo is the 1 New Construction Lender
  nationwide. We have been for 14 consecutive
  years. What that means to you is that after
  we/you communicate our products and services and
  referral partners and clients do their homework,
  more homebuyers choose WFHM than any other
  lender.
• Fall Forward and tell our story and success will
  follow.

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Builder Best Product SuiteMoving Forward

• Questions?

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