RECERTIFICATION BROKER PACKAGE CHECKLIST

RECERTIFICATION BROKER PACKAGE CHECKLIST

Please complete and sign all applicable forms. For each applicable item from the list below, please provide the documentation and/or information requested. A complete Recertification Broker Application and supporting documentation is required within 30 days. For any questions, please contact the Account Executive assigned to the Broker.

Recertification Broker Application: Complete and sign the application. Include the documentation outlined in this checklist. Failure to provide all of the necessary information may result in a delay and/or declination.

Company Resolution: This documentation is required if the company entity is one of the following: Partnership, LLP, LLC, or Corporation. If there are no changes, indicate "No Change" on the Resolution.

Resumes for Key Personnel (This is only applicable if there has been a change in Key Personnel/ Principals.) Current Financials: Including, but not limited to Balance Sheet and Income Statement; must be current within the last three months. All financial information provided will be held in the strictest confidence and will not be released to any outside party.

Articles of Incorporation or Organization (This is only applicable if there have been any changes.) Quality Control Plan: Must have company name included on the plan. Required to provide on an annual basis, to ensure compliance with Fannie Mae requirements. Broker Affiliate Certification Disclosure: Completed and executed.

Anti-Money Laundering and Bank Secrecy Act Compliance Form: Completed and executed.

HUD Annual Questionnaire: Complete and sign the applicable questionnaire; TPO or Sponsored TPO.

Credit Report Fee Certification: Completed and executed.

The completed Broker Package should be sent to: Stearns Lending, LLC Attention: Counterparty Risk / Wholesale 4 Hutton Centre Drive, 1st Floor Santa Ana, CA 92707

Or can be emailed to: BrokerApprovalBox@

Recertification Broker Package Checklist (Page 1 of 1)

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2/9/17

RECERTIFICATION BROKER APPLICATION

Company/Broker Information Company Legal Entity Name: DBA or Trade Name: Former Company Names:

(List as many as applicable.)

Address of Record:

City:

State:

Telephone #:

Fax #:

Contact Name:

Website Administrator Name:

Parent Company Name, if applicable:

State of Incorporation for Parent Company:

Zip Code: Principal's Email Address:

Contact Telephone #: Email Address:

Company Filing Information

(Please check one.)

Sole Proprietorship Partnership

Limited Liability Company

Filing Date:

Filing State:

Corporation Other/ Federal Tax ID#:

Licensing Information

Broker of Record Name:

NMLS #:

License #:

Additional State Licenses: List State Abbreviation and License #.

Expiration Date:

Principals Principals/Owners

Title

Phone Number/Ext.

SSN Number

% of Ownership

Recertification Broker Application (Page 1 of 2)

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1/9/17

1) Has the company had any changes in Pricipals or Ownership? If yes, please provide an explanation.

Yes No

2) Has the company ever been suspended from selling mortgages by an investor? If yes, please provide an Yes No explanation.

3) Has the company, or any officer of the company, been named as a defendant in a lawsuit for alleged fraud or misrepresentation, in connection with any real estate/mortgage related activity? If yes, please provide an explanation.

Yes No

4) Has the company, or any officer of the company ever had a mortgage or other professional license

Yes No

suspended or revoked, or received any other disciplinary action from a regulatory agency? If yes, please

provide an explanation.

5) Does the company, or any of the principals, own or control a real estate company, real estate development company, construction company, or financial services company such as: Title Company, Escrow Company, Tax Preparation, or Credit Counseling? If Yes, please list all affiliated companies and provide a copy of company policies, as it relates to conducting business with an affiliate.

Yes No

6) How many Loan Originators are included in the staff?

7) Is the company utilizing a third party vendor/service for processing and/or underwriting? If Yes, please provide the vendor name, NMLS ID#, and State License #.

Vendor Name:

NMLS ID#:

State License #:

8) Has there been a material change to the company's Quality Control Plan?

Yes No Yes No

Volume History

Current YTD

(List Current YTD in next field)

Previous Year

(List previous year in the next field)

# of Units Funded Total $ Amount Funded % Conventional % Government

Branch Offices Approved to do Business (Attach a separate list if necessary.)

Address

Broker ID# Telephone

Contact Name

The undersigned declare(s) that the statements set forth herein are true and accurate. Stearns Lending, LLC is hereby authorized by the Broker to obtain verification from any Lender References or other source named herein. With regard to the Broker, Stearns is hereby authorized to pull personal credit, and conduct any background inquires deemed necessary, in connection with the approval of this application.

Broker Signature: Printed Name: Owner/Officer Signature: Printed Name:

Date: Date:

Recertification Broker Application (Page 2 of 2)

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1/9/17

BROKER AFFILIATE CERTIFICATION DISCLOSURE

The Qualified Mortgage (QM) regulation states that certain fees paid to a broker must be included in the QM points and fees test. Consequently, Stearns must identify affiliated entities of brokers with whom it does business in order to ensure that Stearns loans are within the QM test. The definition of an affiliate is open to a great deal of interpretation. Stearns cannot provide legal advice as to whether an entity is an affiliate of a broker. However, to help you accurately identify your affiliates, we have included information from the Truth-in-Lending Act (TILA) below.

TILA defines "affiliate" as "any company that controls, is controlled by, or is under common control with another company, as [control is defined] in the Bank Holding Company Act. The Bank Holding Company Act defines "control" as:

A [person] has control over a . . . company if: (A) the [person] directly or indirectly..... owns, controls, or has power to vote 25 per cent or more of [the shares] of the company; (B) the [person can] control . . . the election of a majority of the directors . . . of the company; or (C) the [person] directly or indirectly exercises a controlling influence over the management or policies of the company.

Generally, if entities have 25% or more common ownership or subsidiary relationship or if one entity or person otherwise exercises a controlling influence of the management or policies of the other entity, the entities will be deemed to be affiliates. A family relationship is not a conclusive indication of control or affiliate status. However, courts and regulators often find that entities are affiliates if controlling owners of entities have a close family relationship --for example, a wife owns majority interest in a title company and her husband owns a majority interest in a mortgage broker.

Identify below any of your affiliates that provide settlement services. When submitting a loan into the System, you must identify any settlement services provided by one of your affiliates.

Affiliate Name

Service Provided

Standard Fee or Fee Range for Service Provided

(Please attach a separate list if necessary.)

The undersigned declare(s) that the statements set forth herein are true and accurate.

Broker Name: By: Printed Name:

Title:

Date:

NOTE: Some brokers may have discussed agreements related to cross-referrals of business to affiliates of other brokers in order to avoid fees paid to affiliates being counted in the QM points and fees calculation. Although such arrangement may avoid the affiliate fee issue, RESPA implications should be considered. Section 8 of RESPA prohibits payment or receipt of compensation in exchange for a referral of settlement service business. A court or regulator could consider the mutual referral of business to be compensation. We encourage anyone considering a cross-referral relationship to consult mortgage regulatory counsel for compliance advice on this topic.

Broker Affiliate Certification Disclosure (Page 1 of 1)

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11/18/16

COMPANY RESOLUTION (EXECUTION OF BROKER AGREEMENT)

The undersigned hereby certifies that the following was adopted by the

(Board of Directors/Members/Partners)

of

,

(Company Name)

a

(Corporation/Limited Liability Company/Partnership)

(Broker) on

.

(Date)

1. Broker is authorized to enter into the Broker Agreement ("Agreement") with Stearns Lending, LLC ("Lender"), and has the power and authority to comply with and be bound by the terms and conditions of the Agreement;

2. Lender can rely upon the Broker's authority, as described above, as of the date hereof and as of the date of any subsequent transactions, under the Agreement;

3. As of the date hereof, any one of the officers, members or partners of the Broker, as applicable, expressly noted below, are authorized to make, execute, and deliver on behalf of the Broker, this Agreement, the Broker Application in connection herewith, and any and all assignments, conveyance instruments, documents and forms required to be executed in order for the Broker to comply with and be bound by the terms and conditions of the Agreement.

Name: Title:

Signature:

Name: Title:

Signature:

Name: Title:

Signature:

IN WITNESS WHEREOF, I have here unto affixed my hand this

Day of

(Month)

, 20

(Year)

Signature: Title:

Company Resolution (Page 1 of 1)

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(Corporate Seal, as applicable.)

11/18/16

ANTI-MONEY LAUNDERING AND BANK SECRECY ACT COMPLIANCE

On February 14, 2012, the United States Department of Treasury Financial Crimes Enforcement Network (FinCEN), issues a final rule (31 CFR Parts 1010 and 1029 Anti-Money Laundering Program and Suspicious Filing Report Filing Requirements for Residential Mortgage Lenders and Originators) requiring non-bank residential mortgage lenders, mortgage loan brokers, and originators to establish an Anti-Money Laundering (AML) program and file Suspicious Activity Reports (SARs) under the Bank Secrecy Act (BSA). Compliance with the new rule has been required as of August 13, 2012.

FinCEN defines non-bank residential mortgage lenders and originators as loan or finance companies and mortgage loan brokers for the purpose of requiring them to establish AML programs and report suspicious activity under the BSA.

Accordingly, each broker or correspondent must certify that an AML program that complies with the FinCEN rule identified herein has been in place as of August 13, 2012.

This properly executed form must be returned to Stearns Lending, LLC, to remain an active Stearns Lending, LLC broker or correspondent.

Please complete the below certification and return to: Stearns Lending, LLC Attention: Counterparty Risk / Wholesale 4 Hutton Centre Drive, 10th Floor Santa Ana, CA 92707

The undersigned certifies that the undersigned mortgage loan broker or correspondent lender has established an AntiMoney Laundering program that complies with 31 CFR Parts 1010 and 1029, which has been in place as of August 13, 2012 and is currently maintained.

Stearns Lending, LLC reserves the right to request evidence of compliance. The undersigned mortgage loan broker or correspondent lender agrees to provide evidence of compliance, if requested.

Executive Officer Signature Printed Name Company Name: Company Address:

Date Title

Anti-Money Laundering and Bank Secrecy Act Compliance (Page 1 of 1)

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11/18/16

THIRD PARTY ORIGINATOR HUD ANNUAL QUESTIONNAIRE / HUD APPROVED MORTGAGEES

Stearns Lending, LLC (the "Company") is approved by the U.S. Department of Housing and Urban Development ("HUD" or "Department"), as a Nonsupervised Lender. Each year, the Company is obligated to submit to HUD, an annual certification regarding its continued eligibility to participate in HUD programs. This certification includes certain representations that relate to compliance with HUD regulations and guidelines, some of which extend to the third-parties that the Company contracts with to originate, and/or perform other services related to FHA-insured mortgages.

Given that

(Name of Third Party Originator), who is also is a HUD approved

mortgagee, it is required to make these same representations to HUD to complete its annual recertification. Accordingly,

please have an officer check the appropriate box and execute this certification, in connection with the services it performs

on behalf of the Company.

The undersigned officer hereby confirms that

(Name of Third

Party Originator) is in compliance with HUD's eligibility criteria, set forth at 24 CFR ?202.5(j) and the

Department's quality control requirements, which provide for semi-annual employee reviews, as well as

verification that participants in mortgage and/or servicing transactions have not been debarred, suspended,

or under a Limited Denial of Participation for the FHA program and jurisdiction, or otherwise ineligible to

participate in an FHA transaction.

The undersigned officer hereby confirms that

(Name of Third

Party Originator) performs the required reviews needed to comply with HUD's eligibility criteria, set

forth at 24 CFR ?202.5(j) and the Department's quality control requirements, which provide for semi-annual

employee reviews, as well as verification that participants in mortgage and/or servicing transactions have not

been debarred, suspended, or under a Limited Denial of Participation for the FHA program and jurisdiction,

or otherwise ineligible to participate in an FHA transaction, but identified the following exceptions:

In addition, the undersigned officer attests that

(Name of Third Party

Originator) adheres to FHA requirements when performing activities related to the Company's FHA business.

Refer to applicable HUD regulations and guidelines at .

Dated this

Day of

(Month)

, 20

(Year)

(Third Party Originator)

TPO HUD Annual Questionnaire HUD Approved Mortgagees (Page 1 of 1)

By: Title:

(Must be a Vice President or higher.)

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11/18/16

SPONSORED THIRD PARTY ORIGINATOR HUD ANNUAL QUESTIONNAIRE / NON HUD APPROVED MORTGAGEES

Stearns Lending, LLC (the "Company") is approved by the U.S. Department of Housing and Urban Development ("HUD" or "Department"), as a Nonsupervised Lender. Each year, the Company is obligated to submit to HUD, an annual certification regarding its continued eligibility to participate in HUD programs. This certification includes certain representations that relate to compliance with HUD regulations and guidelines, some of which extend to the non-approved third-party originators ("TPOs") that the Company sponsors to originate, and/or perform other services related to FHA-insured mortgages.

Given that the Company sponsors

(Name of Third Party Originator) to originate

FHA-insured mortgage loans, the Company is required to verify that

(Name of Third Party Originator) and its personnel comply with the HUD eligibility requirements, set forth at 24 CFR

202.5(j) and have not been debarred, suspended, or under a Limited Denial of Participation for the FHA program and

jurisdiction, or otherwise ineligible to participate in an FHA transaction. Accordingly, please have an officer check the

appropriate box and execute this certification, in connection with the services it performs on behalf of the Company.

The undersigned officer hereby confirms that

(Name of Third Party

Originator) is in compliance with HUD's eligibility criteria, set forth at 24 CFR ?202.5(j) and the Department's

quality control requirements, which provide for semi-annual employee reviews, as well as verification that

participants in mortgage and/or servicing transactions have not been debarred, suspended, or under a Limited

Denial of Participation for the FHA program and jurisdiction, or otherwise ineligible to participate in an FHA

transaction.

The undersigned officer hereby confirms that

(Name of Third Party

Originator) complies with HUD's eligibility criteria, set forth at 24 CFR ?202.5(j), and has attached hereto a list

that includes the full legal name of all personnel who, during calendar year 2016, performed activities or

services relating to subject FHA-insured mortgages. For personnel that have taken applications for FHA-insured

mortgages, the list must include the individual's Mortgage Loan Originator NMLS ID number.

In addition, the undersigned officer attests that

(Name of Third Party

Originator) adheres to FHA requirements when performing activities related to the Company's FHA business.

Refer to applicable HUD regulations and guidelines at .

Dated this

Day of

(Month)

, 20

(Year)

Sponsored TPO HUD Annual Questionnaire Non-HUD Approved Mortgagees (Page 1 of 1)

(Third Party Originator)

By: Title:

(Must be a Vice President or higher.)

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11/18/16

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