branch manager manual - american financial...

© 2017. All Rights Reserved. American Financial Network, Inc. | Revised 03/15/2017

BRANCH MANAGER MANUAL


Table of Contents Helpful Links .................................................................................... 1

AFN Intranet ............................................................................................ 1 AFN Approved Broker List .......................................................................... 1 AFN Bulletins ............................................................................................ 1 AFN Business Card Order Form ................................................................... 1 AFN Corporate Contacts ............................................................................. 1 AFN Employee Handbook ........................................................................... 1 Compliance Matters Bulletins ...................................................................... 1 Encompass Newsflashes ............................................................................ 1 Instructions to Sync Email to Your Cell Phone ............................................... 1 Motivity/ Movation Reporting ...................................................................... 1 NYLX Lock Instructions .............................................................................. 1

Getting Started as an Approved Branch ............................................ 2 Welcome to American Financial Network, Inc. ......................................... 2

Welcome Message ..................................................................................... 2 National Mortgage Licensing System (NMLS) ........................................... 2

Company Access to NMLS .......................................................................... 2 Procedure to Grant Company Access ........................................................... 3 Viewing and Maintaining Your NMLS Records ................................................ 3 Procedure to Update Your Employment History ............................................. 4 License Status and Deficiencies .................................................................. 5 Procedure to View Your License Status ........................................................ 5

Onboarding for New Branch Members ...................................................... 6 Orientation Training .................................................................................. 6

Human Resources ............................................................................. 9 Contacts ................................................................................................... 9

Corporate Contacts ................................................................................... 9 New Hires ................................................................................................. 9

Employee Handbook .................................................................................. 9 New Hire Packets ...................................................................................... 9 Classification ............................................................................................ 9 ADP......................................................................................................... 9

Benefits and Paid Time Off (PTO) ............................................................. 9 Benefits Eligibility ..................................................................................... 9 PTO Eligibility ......................................................................................... 10

Wage Garnishments/Levies .................................................................... 10 Handled by HR Only ................................................................................ 10

Employee Termination ............................................................................ 10 Consult AFN HR Director .......................................................................... 10

Payroll .................................................................................................... 10 Payroll Basics ......................................................................................... 10


Loan Officer’s Compensation Agreement ................................................ 11 Purpose and Scope .................................................................................. 11 Commission Structure ............................................................................. 11

Technology ......................................................................................13 Contacting the Information Technology (IT) Department ...................... 13

E-mail ................................................................................................... 13 Telephone .............................................................................................. 13 Helpdesk Tasks ....................................................................................... 13

Minimum System Requirements ............................................................. 14 PC/Laptop Compatibility ........................................................................... 14 Operating System (OS), Internet Explorer (IE) and Adobe Acrobat ................ 14 Virus/Malware Protection .......................................................................... 14

AFN E-mail .............................................................................................. 14 Setting Up AFN E-mail in Outlook .............................................................. 14 Receiving AFN E-mail Online or on a Cell Phone .......................................... 14 Adding AFN to Outlook’s Safe Site List ....................................................... 15

Accounting ......................................................................................17 General Information ............................................................................... 17

Branch ID Process ................................................................................... 17 Payroll Accounting.................................................................................. 17

Pay Schedule, Including LO Commission .................................................... 17 Accounts Payable ................................................................................... 17

New Branch Requirements ....................................................................... 17 Processing Invoices ................................................................................. 18 Duplicate Payments ................................................................................. 18 Payment Schedule .................................................................................. 18 Check Requests ...................................................................................... 18

Cash Received ........................................................................................ 19 Policy .................................................................................................... 19 Borrower Payments ................................................................................. 19

Early Payoff (EPO) and Early Payment Default (EPD) ............................. 20 Definitions ............................................................................................. 20 Policy .................................................................................................... 20 Top Five EPO/EPD Investors ..................................................................... 20

Secondary Marketing .......................................................................23 Locks and the Lock Desk ........................................................................ 23

Lock Desk Hours ..................................................................................... 23 Lock Extensions ...................................................................................... 23

To request an extension: ....................................................................... 23 Lock Float Down ..................................................................................... 23

NYLX/Loan Decisions ......................................................................24 Access Codes ......................................................................................... 24 Pricing in NYLX through Encompass ........................................................... 24


Operations .......................................................................................25 AFN Branch Services ............................................................................... 25

Credit Technology Inc. (CTI) .................................................................... 25 CTI Bundled Services .............................................................................. 25 CTI Products and Pricing Table ................................................................. 25 Ordering CTI Products and Services .......................................................... 28 Assigning CTI Fees .................................................................................. 28

Appraisal Management Companies (AMCs) ............................................. 29 Policy .................................................................................................... 29 AMC Approval Process ............................................................................. 29

Brokered Loans ...................................................................................... 29 Policy .................................................................................................... 29 Responsibility ......................................................................................... 29

Compliance Matters ................................................................................ 29 Top Three Compliance Issues ................................................................... 29 HVCC/Air Policy ...................................................................................... 30 HPML Policy ............................................................................................ 30 Notarizing Documents ............................................................................. 30

Encompass Pipeline Management ........................................................... 31 Public Reports ........................................................................................ 31 Customized Reports ................................................................................ 31 Motivity Reports...................................................................................... 31

AFN Branch Manager Manual

AFN-P-Adm_BranchMgrManual • Rev 03/15/2017 Page 1 of 31

HELPFUL LINKS

AFN Intranet AFN Intranet

AFN Approved Broker List

AFN Approved Closing Agents

AFN Bulletins AFN Bulletins

AFN Business Card Online Orders

Retail Business Card Online Orders

AFN Corporate Contacts

AFN Corporate Contacts (Password is TeamAFN)

AFN Employee Handbook

AFN Employee Handbook

Compliance Matters Bulletins

Compliance Matters Bulletins

Encompass Newsflashes

AFN Encompass Newsflashes

Instructions to Sync Email to Your Cell Phone

Get Email on Your IPhone Get Email on Your Smartphone

Motivity/ Movation Reporting

https://movationlive.com/Blue/Login.aspx (Company Code is AFN-10097)

NYLX Lock Instructions

NYLX Instructions

http://files.afncorp.com/WEBTRAC/RATESHEET/PNPS/WEBTRACMENUS/AFNINTRANETHOME.PDF

http://files.afncorp.com/WebTrac/Ratesheet/PNPs/WebTracMenus/CompQC-MainMenu.pdf

http://files.afncorp.com/WebTrac/Ratesheet/PNPs/WebTracMenus/Operations-Bulletins.pdf

http://files.afncorp.com/WebTrac/Ratesheet/PNPs/WebTracMenus/MktgSales-MainMenu.pdf

http://files.afncorp.com/WebTrac/Ratesheet/PNPs/WebTracMenus/HRAcctg-MainMenu.pdf

http://files.afncorp.com/WebTrac/Ratesheet/employee_manual.pdf

http://files.afncorp.com/WebTrac/Ratesheet/PNPs/WebTracMenus/CompQC-Bulletins.pdf

http://files.afncorp.com/WebTrac/Ratesheet/PNPs/Operations-EncompassNewsflashes.pdf

http://files.afncorp.com/WebTrac/Ratesheet/iPhoneEmailInstructions.pdf

http://files.afncorp.com/WebTrac/Ratesheet/AndroidEmailInstructions.pdf

https://movationlive.com/Blue/Login.aspx

http://files.afncorp.com/WebTrac/Ratesheet/nylx_instructions.pdf



GETTING STARTED AS AN APPROVED BRANCH

Welcome to American Financial Network, Inc.

Welcome Message

Welcome to American Financial Network (AFN), a Direct Lender with delegated authority to underwrite and close FHA, USDA, VA, and Conventional loan products in house. The purpose of this manual is to provide basic operating information that will support your success as an AFN approved branch. If you have any questions about the information contained herein, please contact the Branch Relations Department (e-mail them at [email protected]).

Mortgage Loan Officers (MLOs) are responsible for updates, deficiencies, renewals, and requirements that keep their license in an approved status. Until NMLS access is granted and your license approved, AFN cannot complete your hiring process.

Branches and Loan Officers cannot originate loans until they are NMLS Approved.

The information presented in the following section has four components: (1) granting NMLS company access; (2) updating MU4 employment history in NMLS; (3) viewing your license status and correcting any deficiencies; and (4) attending AFN’s Onboarding Orientation Training.

National Mortgage Licensing System (NMLS)

Company Access to NMLS

Granting AFN company access to NMLS will allow AFN to view your NMLS record, and to create a company relationship and sponsorship. Once company access has been granted, AFN will continue to have access until your company relationship is ended in NMLS.

mailto:[email protected]



National Mortgage Licensing System (Continued)

Procedure to Grant Company Access

From the NMLS Resource Center website located at http://mortgage.nationwidelicensingsystem.org/Pages/default.aspx 1. Click the [Log In to NMLS] button in the upper right corner. 2. Log in to your NMLS account. 3. Click the Filing tab. 4. In the “Form Filing Home” screen, click the “Company

Access” link in the sub-menu. 5. Click the [Add] button to .search for the company you wish

to grant access 6. Search for AFN by entering AFN’s NMLS ID number

(237341) in the search box, or by entering the company name.

7. Check the box that corresponds to AFN and click the [Save] button.

8. The ‘Company Access’ screen will open confirming that you have granted company access. o AFN will automatically receive email notification that

you have granted company access; therefore, no other action is required from you.

9. Once access has been granted, AFN can establish relationships and create sponsorship requests. o AFN can only sponsor licenses in jurisdictions in which

the company and your branch are also licensed.

Viewing and Maintaining Your NMLS Records

When employment changes for a Mortgage Loan Originator (MLO), the NMLS MU4 must be updated to reflect accurate information. The following sections provide instructions for editing your employment history, updating your current employer, viewing your license status, and determining if any deficiencies exist in fulfilling state licensing requirements.

http://mortgage.nationwidelicensingsystem.org/Pages/default.aspx




Procedure to Update Your Employment History

Log in to your NMLS account from the NMLS website at http://mortgage.nationwidelicensingsystem.org/Pages/default.aspx

1. Click the [Filing] tab.

2. Click “Individual” from the sub-menu.

3. Click the [Request New/Update] button.

4. Click “Employment History” from the left navigation panel.

5. Select the [Edit] icon and enter the employer you have listed as Current Employer; enter an end date [mm/yyyy], clear the Current Employer check box, and click [Save].

6. Select “Employment History” again from the left navigation panel and click [Add].

7. Enter a start date [mm/yyyy] for your new Current Employer

8. Tip: There can be no gaps in your employment history. If there has been a period of unemployment, it must be listed.

9. Leave the end date blank and click the [ ] Current Employer box; complete all fields for your current employer (the company name and address that you enter must match the company name and address exactly as it appears in the NMLS record), and click [Save].

10. Review all other sections of the MU4 and update where appropriate.

11. Proceed to the “Attest and Submit” section on the left navigation panel; complete the Attestation and click [Submit] to update your filing.

http://mortgage.nationwidelicensingsystem.org/Pages/default.aspx




License Status and Deficiencies

When the state regulator performs a status update in NMLS, you should receive an email notification of the status change and any deficiencies. The state regulator places a deficiency in NMLS to inform applicants and licensees of any information that is still needed in order for them to issue a licensing decision/approval.

• To receive system-generated notifications from your state regulator, your email address must be current and accurate in NMLS.

• Your employer does not control licensing and sponsorship approvals. The timeframe for obtaining licensing approval varies with each state licensing department. For questions or concerns about your approval status, please contact NMLS directly at (855) 665-7123 or contact your state licensing department.

• The timeframe for deficiency item review and licensing approvals varies for each state licensing department. If you have questions or concerns about a deficiency or approval status, please contact your state licensing department directly.

• For additional questions, please contact the Licensing Coordinator at the corporate office (see Corporate Contacts list).

Procedure to View Your License Status

The following information provides step-by-step instructions that will help you determine the status of your license and review for any deficiencies as determined by your state regulator.

1. Log in to your NMLS account.

2. Select the “Composite View” tab.

3. Select “View Individual” from the sub-menu.

4. Select “View License/Registration List” on the left navigation panel; if you would like to see your License Status History, click the license name hyperlink to display a detailed history.

(Continued)





Procedure to View Your License Status (Continued)

5. Select the hyperlinked number under the “License Items” column to view the license item details.

6. Any deficiencies will be displayed in the “Active License Items” section; review the details in the “Title” and “External Note” columns to determine the action(s) required by the state to satisfy the deficiency and approve your license.

7. Once the required actions have been taken you can continue to check your license status for updates

Onboarding for New Branch Members

Orientation Training

All Branch Managers must complete orientation training (onboarding) for the topics shown in the following table. Space is provided in the left column of the table to track the completion date for each module.

Contact Branch Relations at any time to schedule training for new employees or to reschedule training for yourself.

(Continued)

ONBOARD ORIENTATION TOPICS COVERED

Completion Date:

Welcome Call Presenter: Jack Sherman (CEO), John Sherman (President) Recommended For: Branch Managers Approximate Length: 30 Minutes

• Mission Statement • Corporate Vision • Core Values • Company History • Future of AFN

Completion Date:

HR/ Payroll Presenter: Susie Sensenbach (HR & Payroll Director) Recommended for: Branch Managers Approximate Length: 60 Minutes

• Directory/Organizational Chart • New Hire Paperwork • Log-Ins and Email Addresses • Payroll & Benefits Review • Employee Handbook • Required Posters/Signs • NMLS Licensing



Onboarding for New Branch Members (Continued)

(Continued)


Completion Date:

Accounting Presenter: Bob Telles (CFO) Recommended for: Branch Managers Approximate Length: 60 Minutes

• New Branch Setup • Accounts Payable • Cash Received • Check Requests • EPO/EPD Policy

Completion Date:

Products & Underwriting Presenter: Edward Fink (Director of Credit Risk) & Twyla Hankins (EVP of Operations) Recommended for: All Staff Approximate Length: 60 Minutes

• Products Matrices & Guidelines • Niche Products & Investors • Scenario Desk • Approved States • Underwriting Process • Brokering Loans

Completion Date:

Secondary Presenter: Scott McGinley (Executive VP Secondary) Recommended for: All Staff Approximate Length: 30 Minutes

• Contact Information • Lock Desk Hours • Lock Extension Policy • Float Down Policy

Completion Date:

Marketing Presenter: Kim Skulavik (Marketing Manager) Recommended For: Sales Staff Approximate Length: 45 Minutes

• Mortgage CEO Tutorial • CRM Tool • Marketing Materials • Social Media • Branch/LO Websites • Business Card Ordering

Completion Date:

Loan Officer Training Presenter: Branch Relations Department Recommended for: Sales Staff & Processing Staff Approximate Length: 60 Minutes

• Encompass Overview • File Flow • Entering Borrower Info • Sending/ Receiving Initial

Disclosures

Completion Date:

Loan Processing Presenter: Nasim Tourigny (Director of Processing) Recommended for: Processing Staff Approximate Length: 90 Minutes

• Service Vendors • File Flow • TIL/GFE Tips • Encompass Workflow • Submitting Loans to U/W



Onboarding for New Branch Members (Continued)


Completion Date: QC & Compliance Presenter: Jimmy Vuong (Branch Relations and Compliance Supervisor) Recommended for: Sales Staff & Processing Staff Approximate Length: 30 Minutes

• Compliance Dept. Overview • File Flow • Common Mistakes • Licensing

Completion Date: Onboarding Review Twyla Hankins, EVP Operations

• Overview of the loan process • Set expectations • Provide experience feedback



HUMAN RESOURCES

Contacts

Corporate Contacts

A list of current contacts is available on the Intranet. Contact Human Resources personnel listed there for your HR needs.

New Hires

Employee Handbook

All new hires should read the Employee Handbook and return a copy of the “Acknowledgment of Receipt” page with their new hire packet.

New Hire Packets

Completed New Hire Paperwork (available on the Intranet) is to be delivered to the Branch Relations Department via e-mail ([email protected]). Upon receipt and review of the New Hire Packets, Branch Relations will submit them to HR for processing. No new hires will be processed without complete paperwork and new employees may not start as an official AFN employee or receive access to any of AFN’s technology or systems until all paperwork is completed, reviewed and processed.

Classification Employees must be properly classified as Exempt or Non-exempt (from overtime). Exempt employees are typically in a supervisory or head of department role, and receive a monthly salary (versus an hourly wage). Non-exempt are hourly employees.

ADP All employees must register with the ADP payroll system and sign up for automatic deposit of their payroll checks. All hourly employees must utilize the ADP timekeeping system. Training on the ADP system is offered by the HR Coordinator upon request.

Benefits and Paid Time Off (PTO)

Benefits Eligibility

Benefits are available to employees with the effective date of the first of the month after 30 days worked. Benefits are managed through ADP. Questions regarding benefits should be directed to the Executive HR/Payroll Director (see Corporate Contacts list).


http://files.afncorp.com/WebTrac/Ratesheet/PNPs/WebTracMenus/HRAcctg-Forms.pdf






Benefits and Paid Time Off (PTO) (Continued)

PTO Eligibility Paid Time Off (PTO) is earned by all non-sales related, full-time positions. PTO starts accruing effective the first pay period after 90 days worked, and is managed in ADP. Employees who wish to use available PTO hours must submit their request via ADP. Questions regarding PTO should be directed to the HR Coordinator.

Wage Garnishments/Levies

Handled by HR Only

Any information you may receive regarding wage garnishments and/or levies for any employee must be forwarded to the HR Coordinator. Employees who have questions regarding these payroll deductions should also contact Alicia.

Employee Termination

Consult AFN HR Director

Each state has its own regulations regarding employee termination, receipt of final pay, etc. Before officially terminating an employee, consult Susie Sensenbach, HR & Payroll Director. Ideally, Susie should be contacted at least three days prior to the termination. Using Susie’s advice and state-regulated knowledge, branches can achieve a successful termination while reducing AFN Corporate and Branch exposure.

Payroll

Payroll Basics • AFN employees are paid twice monthly on the 15th and the last day of the month

• AFN pays Loan Officer (LO) commissions on funded loans only

• Commission pay schedule: o Loans funded on the 20th of last month through the 4th of

the current month will be paid on the 15th of the current month.

o Loans funded between on the 5th of the current month through the 19th of the current month will be paid on the last day of the current month.

(Continued)



Payroll (Continued)

Payroll Basics (Continued)

• Paying commissions on loans outside these commission pay cycles puts AFN payroll at risk of double paying on a loan, therefore there will be no exceptions to the foregoing o An employee experiencing a financial hardship may

request an advance against future commissions o Such an advance must be approved by a Divisional,

Regional, or Corporate Manager, and o The amount to be advanced will be 70% of any funded

loan that was funded subsequent to the current pay cycle • One advance per quarter maximum per employee • Payback of the advance will be taken in one lump sum upon

payment of the commission; other arrangements may be made upon prior approval

• Hourly employees are paid on the same schedule as outlined above

Loan Officer’s Compensation Agreement

Purpose and Scope

AFN now has an electronic version of Addendum A to the Loan Officers Compensation Agreement, Form 2014-1. The purpose of the electronic version of Addendum A is three-fold: (1) to aid AFN compliance with LO Compensation Rules, (2) to reduce the number of compensation plans being used within AFN, and (3) to structure LO Compensation Plans so that commission payments are processed with each payroll cycle via AFN’s mortgage banking computer software.

Commission Structure

Form 2014-1V17 outlines LO commission structure as follows: • Minimum commission per loan • Maximum commission per loan • Basis Points (BPS) for funded loans where the LO generated

the loan lead and where AFN generated the loan lead • BPS for Bond Loans • BPS for Team Loans • Tiers: • Box 1 – BPS structure without tiers (if you do not wish to

tier, use Box 1) • Box 2 – BPS structure with tiers (if you wish to tier, use Box

2) (Continued)



Loan Officer’s Compensation Agreement (Continued)

Commission Structure (Continued)

• Box 2 – Retroactive or Non-retroactive • Retroactive calls for payment of BPS in effect for the highest

tier achieved for the month • Non-retroactive calls for payment of BPS for each tier

achieved for the volume within each tier • Box 2 - Three tier levels, Tier I, Tier II, and Tier III • Box 2 – Tier volume based on loan unit count or loan gross

volume • The comments section at the bottom of Form 2014-1 may be

used for communication to Human Resources (HR) • Lock date: The LO compensation plan in effect on the loan

lock date (as documented in the AFN HR files) will be the BPS rate paid on the loan

• Non-retroactive commission calculation tier will be driven by funding date order

• Bond loans may be used to advance the monthly volume or loan count to the next tier but will be paid at the bond loan BPS in effect on the loan lock date



TECHNOLOGY

Contacting the Information Technology (IT) Department

E-mail IT can be reached by using the department e-mail address, which will create a help ticket that can be claimed by anybody on the IT team: [email protected].

Telephone The swiftest way to get the attention of the entire IT team is via the helpdesk e-mail noted above. To speak to an IT team member, you can use the helpdesk hotline, which is monitored by a System Support Analyst. 909-287-2895.

Helpdesk Tasks

Contact the AFN Helpdesk for most technology-related matters. Following is a list of common issues. If your issue does not appear on this list, please contact the helpdesk anyway; if they cannot help you directly, they will find the person within the company who can assist with your issue.

IT DEPARTMENT ([email protected]) • E-mail Setup • Encompass Installation* • General Computer Problems • LO Individual Website Setup • LO/Ops Laptop Setup and Distribution • Third Party Credentials, such as CTI, LP, NYLX • Virus Cleanup/Removal * NOTE: Encompass and DU credentials are not assigned by IT. The HR Department notifies the Encompass Administrator when to generate these credentials for all new hires. Contact the Encompass Data Support Analyst with questions regarding Encompass and DU access.




Minimum System Requirements

PC/Laptop Compatibility

Apple/Macintosh products are not compatible with most industry software. IBM-compatible PCs and laptops are compatible with the AFN network and industry software.

Operating System (OS), Internet Explorer (IE) and Adobe Acrobat

For ultimate performance, following are the recommended versions of your OS, IE and Adobe: • Windows 7 • IE 10 • Adobe Acrobat Reader X If your systems have been upgraded to higher versions and you experience technical issues, the IT Department may be able to help you downgrade. We suggest that you turn off automatic updates and do not upgrade to higher versions without consulting IT.

Virus/Malware Protection

Protecting your PC/laptop and your AFN e-mail from viruses, worms, malware and other undesirable malicious content, you must have protection software installed and it must be routinely updated. IT recommends using Microsoft Security Essentials. This is a free program provided by Microsoft. If you need help installing, running or updating this vital program, please contact the IT helpdesk for assistance ([email protected]).

AFN E-mail

Setting Up AFN E-mail in Outlook

When new hires are brought onboard, IT will setup an official AFN e-mail address on our Exchange server for each individual. Policy requires that all AFN employees communicate using their official AFN e-mail address.

Receiving AFN E-mail Online or on a Cell Phone

You can also access AFN e-mail online when you are away from your computer: • Accessing AFN Webmail: https://exchange.afncorp.com

o User Name = name before “@afncorp.com” in your e-mail address o Ask IT for your password

• Receiving AFN E-mail on an iPhone: iPhone Instructions • Receiving AFN E-mail on other phone: Smart Phone

Instructions


https://exchange.afncorp.com/

http://files.afncorp.com/WebTrac/Ratesheet/iPhoneEmailInstructions.pdf





AFN E-mail (Continued)

Adding AFN to Outlook’s Safe Site List

To ensure email messages are correctly routed to your inbox you will need to add AFNCorp.com to Outlook’s list of safe sites. The procedure to add AFNCorp.com to Outlook’s safe site list is fundamentally the same regardless of the version you are currently using, Outlook 2007, 2010, or 2013, therefore the following instructions apply to all three versions of Outlook. The examples shown below are screenshots taken from Outlook 2007. If you have Outlook 2010 or 2013 your display will have a slightly different appearance.

1. Select the “Actions” menu from the top of the screen.

2. From the menu, select “Junk E-mail” and then “Junk E-mail Options…”

3. Click on the Safe Senders tab and then click the [Add]

button.



AFN E-mail (Continued)

Adding AFN to Outlook’s Safe Site List (Continued)

4. Type @afncorp.com in the address line and click the [OK] button.

5. Click the [OK] button once more to confirm and complete the process of adding AFN to Outlook’s safe site list.



ACCOUNTING

General Information

Branch ID Process

The Accounting and Payroll departments require the following information in order to set up a new branch: 1. Both Accounting and Payroll must receive a signed Branch

Manager Agreement. The Branch ID number will not be issued until this requirement is completed

2. Once the Agreement is received, the Company Controller will issue your Branch ID number and Accounting and Payroll will then set up your branch in each system using your branch ID number

3. Branches with existing vendor accounts must change the account name(s) and re-direct billing to:

American Financial Network, Inc. 10 Pointe Drive, Suite 330 Brea CA 92821

Payroll Accounting

Pay Schedule, Including LO Commission

See the Human Resources section of this guide.

Accounts Payable

New Branch Requirements

The following information is required before a new branch can be set up in the Accounts Payable system and before a new branch can process invoices: • Landlord contact information • Copy of Master Lease

• List of any vendors to be transferred to AFN Accounts Payable department



Accounts Payable (Continued)

Processing Invoices

• Print a copy of the invoice

• Vet the invoice

• If appropriate, authorized Branch/Regional Manager must approve the invoice by writing on the face of the invoice "ok to pay" with branch ID and loan number (if specific to a loan)

• Sign the face of the invoice under the “OK to Pay” designation

• Scan and email the invoice with your Branch ID and loan number to [email protected].

Duplicate Payments

The following procedures will help prevent duplicate payments:

• Branches with scanning capability: submit invoices one time only by scanning the invoice to Accounts Payable and destroy the original invoice

• Branches without scanning capability: mail original invoice via USPS to: American Financial Network, Inc. Attention: Accounts Payable 10 Pointe Drive, Suite 330, Brea, CA 92821

Payment Schedule

AFN’s policy is to pay all invoices within 30 days of the due date. In cases where payment is urgent, write RUSH in large letters on the front of the invoice and proceed with processing as described above.

Check Requests

When a vendor does not provide an invoice, a Check Request form with supporting documentation must be submitted to Accounts Payable. Examples of documentation include but are not limited to receipts and/or emails.

The Check Request form is to be used only for expenses that do not have an invoice and the Check Request form must be printed and signed by the Branch or Regional Manager.


http://files.afncorp.com/WebTrac/Ratesheet/PNPs/AFN-F-Acc_CheckRequest.pdf



Cash Received

Policy Borrowers will receive a “Hello Letter” and temporary payment coupon from AFN. When AFN sells the loan to an investor, the borrower will receive a “Goodbye Letter” from AFN and a “Hello Letter” and payment instructions from the investor. If a borrower contacts a branch to make a payment, the borrower should be told to follow the instructions they received from AFN. In no event is the borrower to be instructed to send payments to the branches. Borrowers are to follow “Borrower Payments” instructions in the section below.

Borrower Payments

Checks are to be made payable to American Financial Network, Inc. and sent with the payment coupon (see example below) to:

Loan Servicing Center 10 Pointe Drive, Suite 330 Brea, CA 92821

• If a payment is in transit to AFN that is due to the investor, we will forward the payment to the investor immediately upon receipt

• If borrowers have questions regarding their mortgage payments, direct them to contact our Loan Servicing Center toll-free at (888) 636-7573, ext. 1107 between 8:00 AM and 5:00 PM Pacific Standard Time o The borrower must be advised that it is standard industry

practice to sell loans on the secondary market, and their loan may be sold in the future

o At that time the new lender may re-evaluate their escrow account which may result in a payment adjustment

o The borrower will receive timely notification in the event their loan is sold



Early Payoff (EPO) and Early Payment Default (EPD)

Definitions

EPO: Loans re-financed before 180 days have lapsed since the loan purchase. EPD: Borrower defaults on his or her payment within the first four payments due to the investor.

Policy Investor Policy - EPO and EPD charge back is driven by each investor’s policy. That policy may change from time to time without notice. AFN Policy - AFN Corporate will charge the branch or region profit and loss statement (P&L) for all branch margins previously posted to the regional and/or branch P&L. • While it appears that 180 days must lapse before it is safe to

do an EPO refinance, such a refinance is at your own risk and will be charged to your P&L if a charge is incurred

• Corporate will share with you in the EPO or EPD cost in that Corporate will incur an expense for its share of margin returned to the investor, and will pay any administration or indemnification fees incurred; Corporate may further absorb a derivative loss related to the returned margin

• Corporate will not be bound by any Corporate EPO pre-approvals; all EPOs and EPDs will be charged back to the branch

Top Five EPO/EPD Investors

(Continued)



Early Payoff and Early Payment Default (Continued)

Top Five EPO/EPD Investors (Continued)

(Continued)



Early Payoff and Early Payment Default (Continued)

Top Five EPO/EPD Investors (Continued)



SECONDARY MARKETING

Locks and the Lock Desk

Lock Desk Hours

The lock desk’s standard hours of operation are Monday through Friday from 8:00 AM until 4:00 PM Pacific Time.

The lock desk may be closed on federal holidays, AFN holidays and is subject to early closure certain days preceding holidays. Any closures and/or early closures will be announced in advance.

Locks due to expire on a day the lock desk is closed will be extended to the next business day at no additional cost.

Lock Extensions

There is a fee for lock extensions. The extension can be paid by the borrower or the branch as follows:

• Borrower: The cost of the extension will be charged on the HUD-1 Settlement Statement

• Branch: Must be approved by Branch Manager and will be charged to the branch

• Cost of extension is .025% per day, regardless of investor

• Cannot extend a lock into a weekend or holiday

To request an extension:

• Address an e-mail to [email protected]

• Be sure to cc the Branch Manager on the e-mail

• Type Lock Extension ######### in the subject line (replacing the #s with the loan number)

• Indicate in the body of the e-mail:

o Borrower or Branch paid

o Number of days for extension

Lock Float Down

The locked rate is compared to the updated market rate. The lock is eligible for a one-time float down if:

• The rate decreases by more than one percentage point; and

• The new rate is for the exact same investor and number of days locked.




NYLX/LOAN DECISIONS

Access Codes If you have not received login credentials for NYLX, e-mail the help desk ([email protected]) and request NYLX access.

Pricing in NYLX through Encompass

Access the loan you wish to lock in Encompass and perform the following tasks:

1. Go to the “Services” tab and select “Search Product and Pricing.”

2. When the “PRODUCT AND PRICING” dialog box appears,

select the “LoanDecisions” option (double-click).

3. When the “Product and Pricing Request” dialog box appears:

a.) Enter User Login Information (click the “ Save Login Information” box to bypass this step in the future).

b.) Click the [Continue] button.

4. In NYLX/LoanDecisions:

a.) Double-check that all transferred information is correct.

b.) Enter “Borrower Type” information.

c.) Select investor(s).

d.) Select the loan program.

e.) Select the “Go Price” option.

f.) Select the loan program that is the best fit for your borrower.

5. For assistance, please contact Branch Relations ([email protected]).





OPERATIONS

AFN Branch Services

Credit Technology Inc. (CTI)

Phone: (888) 778-1501 Fax: (888) 778-1508 Web: http://www.ctinetwork.com

CTI Bundled Services

CTI provides bundled services for retrieving a borrower’s credit score report. These bundled services include credit analysis, flood certification, fraud alerts, LOS reissues, TRVs, and more. The following table provides a list of CTI’s bundled services.

CTI Products and Pricing Table

The table provided on the following pages provides a breakdown of CTI products and fees.

(Continued)

http://www.ctinetwork.com/



AFN Branch Services (Continued)

CTI Products and Services Unit Price

Consumer Credit Reports Bureau price includes scores (Fair Isaac, FICO and Beacon), Fannie Mae connectivity fee, and Fair and Accurate Credit Transactions Act (FACTA) fee.

Individual 1 Bureau $8.00

2 Bureau $8.00

3 Bureau $8.00

Joint 1 Bureau $8.00

2 Bureau $8.00

3 Bureau $8.00

Fraud Alerts / Red Flags Experian: Fraud Shield (SSA) Per Bureau Included

Equifax: SafeScan Per Bureau Included

TransUnion: High Risk Fraud Alert Per Bureau Included

Office of Foreign Asset Control (OFAC) Per Bureau Included

ID Risk Review Per Report Included

Surcharges Fanny Mae Reissue Per Reissue Included

Freddy Mac Reissue Per Reissue Included

Secondary Use Per Bureau Included

Loan Origination Software (LOS) Reissue Per Reissue Included

(Continued)




CTI Products and Services (Continued) Unit Price

Other Reports Refresh Report (Soft Inquiry/LQI) Same as bureau pricing

Comparison Report Per Report Included

Rapid Rescore Per Bureau $30.00

Credit Analyzer Per Bureau Included

What-If Simulator Per Bureau Included

Credit Assurance (Score Preview) Per Bureau Included

Business Credit Report Per Report $65.00

Risk-Based Pricing (RBP) Disclosure Per Report Included

SSA Form 89 Verification Per Report Included

Customer Services Residential Mortgage Credit Report (RMCR) Per Report $60.00

Trade Line Verification (Supplements) Each Included

Mortgage Rating

Each Included

Miscellaneous Services Automated Valuation Model (AVM) Per Report $20.00

4506-T Tax Return Verification (TRV) 1 year Included

Additional Years

Included

Flood Certification Basic Included

Life of Loan Included

Site Inspection $100.00




Ordering CTI Products and Services

• Instructions for ordering any of the products shown in the preceding table can be found on the CTI website at http://www.ctinetwork.com

• You can also set up a new account and/or log in to request CTI products and services from CTI’s home page

• Please note: CTI services are not ordered through the Encompass Services tab

Assigning CTI Fees

When closing a loan, the full $73.00 CTI fee will be charged to the branch and the fee will appear on the branch P&L.

• If the Loan Officer were to be charged, the CTI fee would be processed through the payroll system.

• If the loan does not close, only the $8.00 Tri-Merge Report Fee will apply.

• If you choose to charge the borrower’s credit card directly, this can be done from the CTI website, (not Encompass). When charging the CTI fee to the borrower through the CTI website, you must manually import the credit report into Encompass.

Assigning a closed loan fee: • Find the credit report in question • Click Closed Loan Adjust button under Charges • View and print invoice

http://www.ctinetwork.com/



Appraisal Management Companies (AMCs)

Policy To maintain full regulatory compliance all AFN branches and representatives are required to use AFN-approved Appraisal Management Companies (AMCs) when an approved AMC is available in your area.

A current list of approved Appraisal Management Companies may be obtained by contacting Branch Relations.

AMC Approval Process

When there is a legitimate reason for using other than a currently approved AMC, send a request to add an AMC to the AFN Project Manager of Legal Operations for review and determination of approval. (See Corporate Contacts list.)

Brokered Loans

Policy To maintain full regulatory compliance all AFN branches and representatives must use AFN-approved lenders when brokering out loans. To refer a lender for approval, submit a request that includes a brief description of the services provided by the prospective broker to the AFN Project Manager of Legal Operations for review and determination of approval.

A current list of Approved Lenders for Brokering Out Loans is available on the Intranet.

Responsibility A full loan must be uploaded and kept current including the required PTD and PTF conditions throughout the entire process.

Compliance Matters

Top Three Compliance Issues

1. FHA Case Numbers cannot be pulled until you have a signed Form 1003, a signed 92900 A or a 26-1802 A, and signed disclosures • The processor is responsible for pulling the FHA case

number • Contact your processor once the initial disclosure

package has been signed and returned by the borrower

(Continued)


http://files.afncorp.com/WebTrac/Ratesheet/PNPs/AFN-X-Orig_ApprBOLender.xlsx



Compliance Matters

Top Three Compliance Issues (Continued)

2. Appraisals should not be ordered until you have a full set of signed disclosures including the Truth in Lending (TIL) • The processor is responsible for ordering the appraisal • Contact your processor once the initial disclosure

package is signed and returned by the borrower • No fee can be incurred by the borrower until the initial

disclosure package has been signed and returned 3. Automated Underwriting System (AUS) – running an

AUS with full details (that is, all 6 pieces of RESPA information) and not sending disclosures within 3 days puts the company at risk • Errors on disclosures can only be fixed by:

o Cancelling the loan within 3 days of inputting the 6 pieces of RESPA information and starting all over

o Disclosing within 3 days: Branch Relations will send out daily emails to notify you of any loans that need to be cancelled or disclosed

HVCC/Air Policy

Loan Processors are required to send a copy of the Appraisal to the Borrower.

HPML Policy Compliance with HPML rules requires: • Verifying and documenting the borrower’s ability to pay • Determining repayment ability using fully indexed rate and

fully amortized payment along with property taxes and insurance

• Assessing the borrower’s ability to pay using a DTI (debt to income) Ratio

• Completion of the AFN HPML Checklist AFN does not allow ARM HPMLs.

Notarizing Documents

All documents that require notarization must be notarized by a neutral third-party licensed Notary Public having no connection to or interest in AFN. • Employees of AFN are not authorized to notarize documents. • Having an AFN employee notarize documents can be

problematic in the event of litigation with a borrower.



Encompass Pipeline Management

Public Reports

From the Encompass home page, click the Reports tab to access all Public Reports.

Customized Reports

You can also create customized personal reports. Refer to Creating Personal Reports in Encompass or call Branch Relations for help. Two examples of customized reports are: • Move from Prospects to Pipeline Folder

This report allows you to see loans that are still in the Prospects folder that need to be moved to the Pipeline folder by the Processor

• Need to Disclose Displays loans that have a GFE date soon to expire; the LO must either cancel the loan or send initial disclosures.

Motivity Reports

To set up your Motivity user name and password, please contact the AFN Database Administrator. (See Corporate Contacts list.)

For help navigating Motivity and generating reports, please contact a Branch Relations Coordinator.
