First Mortgage Corporation

1
First Mortgage Corporation

• Correspondent Lending
• New Seller Orientation
• Call in 218/339-3600Access Code 307355

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FMC Overview

• First Mortgage Corporation (FMC) has been a
  direct lender since 1975 and is one of the
  Nations top FHA lenders to underserved
  communities.
• As a traditional mortgage banker, we believe that
  careful analysis of credit, income, assets and
  collateral should continue to be the basis for
  determining loan worthiness not credit scores
  alone.
• The ability to underwrite, fund and securitize
  our loans allows us to offer financing to
  borrowers with FICO scores below 600 and those
  who have yet to establish a credit score.
• FMC remains committed to FHA standards as
  prescribed in their guidelines, which allows us
  to continue to assist credit-worthy families
  achieve the dream of home ownership.

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FMC Correspondent Websitewww.fmccorrespondentle
nding.com

• Whats available on the FMC CLD website today
• Rate Sheets (Excel pdf)
• If you want to build in margins youll need to
  generate separate rate sheets (vs. giving your
  LOs access to our website)
• States Where We Buy Closed Loans Niche Products
• Seller Guide
• Online Loan Lock
• Loan Conditions
• Forms
• Correspondent Loan Registration Form
• Correspondent Stacking Order/Submission Form
• Lock Change/Extension/Cancellation Form
• Product Matrices FMC Credit Overlays
• Product Training Modules FHA, Access, Platinum
• TPO Appraiser Exclusionary Lists
• Link to FHA 4155 Handbook

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Coming soon to website

• Online Loan Registration
• Electronic Loan File Delivery link
• Pipeline line reports

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CLD Programs Products

• FHA 30-yr Fixed
• FHA 30-yr Jumbo Fixed
• FHA 5-1 Conf Jumbo ARMs
• FHA Streamlines
• VA 30-yr Fixed
• CHF Access 2nd TD
• Ineligible 203ks or Conforming loans

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Approved States(for Closed Loans)

• Arizona
• California
• Colorado
• Idaho
• Indiana
• Nevada
• New Mexico
• North Carolina
• Oregon
• Texas
• Utah
• Washington

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Loan Registration Process

• To register a loan, Correspondents must complete
  and email the Correspondent Loan Submission form
  along with the FNMA 3.2 file to
  CLD_at_firstmortgage.com.
• Loan file data will be uploaded into the system
  and a loan generated.
• Once the loan is registered, you will be notified
  via email of the loan to be used when locking
  and delivering the loan.

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CorrespondentLock Policy

• Locks are Best Efforts Only
• No Mandatory, AOT or Direct Trade
• Loan lock changes, extensions and cancellations
  must be requested using Loan Change form found on
  website.
• Max Price 105

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Required to Lock Online

• Online locking requires
• Seller ID
• Loan Number
• Borrowers Last Name
• Last Four Digits of Borrowers Social Security
  Number

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Correspondent LendingLoan Delivery Process

• Prior Approval (Shadow Underwritten) Loans
• FMC will shadow underwrite the first five (5)
  loans delivered by Correspondent (prior to
  close).
• All loans submitted for prior approval must be
  underwritten by the Correspondent before delivery
  to FMC.
• A DU Approve/Eligible is recommended.
• Manually underwritten transactions must meet FMC
  Overlays. (Available on FMCs Correspondent
  website.)
• Prior approval loans should be delivered in paper
  format using FMCs preferred stacking order (see
  Correspondent Stacking form on website) to
• First Mortgage Corporation
• Attn Correspondent Lending Department
• 1131 W. 6th Street
• Ontario, CA 91762
• After the first five loans, shadow underwrites
  (prior approvals) are available at a cost of 495
  per loan.

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Shadow UnderwritePrior Approvals (first 5 loans)

• Once loan file is re-underwritten, FMC will relay
  to Correspondent any missing items/conditions
  necessary to close and fund the loan.
• Correspondent has 7 days to clear conditions.
• Minimum lock period on prior approval loans
  30-days

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Miscellaneous

• Correspondent must order FHA Case .
• At time of purchase by FMC, Correspondent must
  notify HUD of the new holder/servicer of record.
  The Servicer/Holder change (transfer) must be
  completed through the FHA Connection using FMC ID
  64308.
• Lock extensions are the responsibility of the
  Correspondent and must be made prior to
  expiration.
• FMC will accept LP approvals on closed loans only
  providing the loan meets FHA guidelines as well
  as FMC Credit requirements.
• Comprehensive policies and procedures are
  available in the Seller Guide online at
  www.fmccorrespondentlending.com

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Closed Loan File Delivery

• Closed Loan Delivery
• Once Seller has been approved to deliver closed
  loans to FMC, the following delivery procedures
  should be utilized until BlitzDocs link is
  available
• Using FMCs Correspondent Stacking order, all
  closed loan files should be delivered indexed and
  electronically via email pdf attachments to
• CLD_at_firstmortgage.com
• All of Sellers Prior to Doc or Prior to Fund
  conditions should be cleared prior to delivery of
  loan to FMC and should be included in the loan
  file.
• Upon receipt, FMCs Correspondent Lending
  Department will acknowledge receipt of loan file
  to Correspondent and FMC Branch/AE.
• Loan file will be immediately put into queue for
  review.
• Correspondent will be notified of conditions
  required PTP (prior to purchase)
• Prior to fund conditions requested by FMC should
  be numbered and sent all at once (not piecemeal)
  and should not mingled with other loan documents.
• Seller is allowed seven (7) days from
  notification to clear conditions.
• A link to the BlitzDocs portal will be available
  within 60-days.

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Original Note Delivery

• Original Note Delivery
• To expedite purchase, the original note should be
  sent to
• First Mortgage Corporation
• Attn Correspondent Lending Department
• 1131 W. 6th Street
• Ontario, CA 91762
• Sample endorsement format
• PAY TO THE ORDER OF
• First Mortgage Corporation
• WITHOUT RECOURSE
• ______________________
• By (Signature of Officer)
• (Name of Seller)
• (Officers name and title)

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Original Note Delivery (Continued)

• If Correspondents warehouse bank (BofA or GMAC)
  will not release the original note directly to
  the investor (FMC), the note must be sent to
  FMCs Custodian bank at
• Deutsche Bank National Trust Company
• 1761 E Saint Andrew Place
• c/o Andrew Hays
• Santa Ana, Ca 92705

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Current Turn Times

• Initial File Review 72-96 hours after receipt by
  Corporate office
• Clearing of Conditions submitted by Seller 72-96
  hours
• Correspondent has 7 days to clear conditions from
  time of notification (or expiration date,
  whichever is later).
• Once all conditions are cleared 48 hours to
  fund.
• Purchase advice will be sent one day prior to
  wire.

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Product Training

• FMC offers product training
• Several times each month
• A Calendar attached
• FMC Underwriting philosophies
• FMC Credit Overlays minimal compared to most
  FHA investors

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Access DPA 2nd TD(California Only)

• Access Product Code S15FA0HF combined with FHA
  1st Product Code F30FA0HF
• Access 2nds must be closed in the name of CRHMFA
  Homebuyers Fund, (Formerly California Rural Home
  Mortgage Finance Authority).
• Since these loans are closed in the name of the
  investor, no assignment is necessary.
• RESPA requires a separate final HUD-1 be provided
  for the Access 2nd Trust Deeds
• The Access 2nd must be identified as the 2nd
  lienholder on the hazard policy.  It can be
  included with the 1st lienholder on one policy or
  a separate insurance policy.  The same holds true
  for the title policy.
• Sample documents are available from Doc Magic
• Rate 8.25 at par

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Assignments MICs

• First mortgages sold to First Mortgage
  Corporation must be assigned via MERs to FMC as
  investor and servicer within 72 hours of
  purchase.
• FMC MERs Org ID 1001245
• MIC must be sent to FMC within 30-days of loan
  closing unless FMC review deems MIC required
  prior to purchase.

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Miscellaneous

• Loss Payee Clause
• First Mortgage Corporation/
• Its successors and/or assigns
• P.O. Box 391674
• Solon, OH 44139
• Final Docs must be delivered within 60-days of
  loan closing to
• First Mortgage Corp.
• Attn Shipping Dept/Final Docs
• 1131 West Sixth Street
• Ontario, CA 91762

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Exhibits

• Exhibit A - FMC Contact List
• Exhibit B Correspondent Loan Registration Form
• Exhibit C Correspondent Rate Sheet
• Exhibit D FMC Credit Overlays
• Exhibit E Correspondent Stacking
  Order/Submission Form
• Exhibit F - Lock Change, Extension Cancellation
  Form
• Exhibit G Loan Exception Request Form (FMC Loan
  Committee Form)
• Exhibit H Common Discrepancies (Closed Loan
  Files)
• Exhibit I Product Training Calendar
• Exhibit J - Access vs. Platinum Comparison