REVISED 11/26/2019

18200 Von Karman Ave Suite 750 Irvine, CA 92612

LOAN SUBMISSION GUIDE Wholesale Lending Division

LOAN SUBMISSION GUIDE - November 2019 1

I. Loan Process Summary ........................................................................................... 2

II. Disclosure Process .................................................................................................. 4 TRID Timing & Delivery Requirements ......................................................................................... 4 eConsent & Electronic Document Delivery .................................................................................. 4

Electronic Document Signing – Help Video ........................................................................................... 4 Minimum Required Documentation for Disclosure ...................................................................... 4 Broker Provided Disclosure Requirements................................................................................... 5

III. Appraisal Management .......................................................................................... 5 Approved AMCs .......................................................................................................................... 5 Ordering Your Appraisal .............................................................................................................. 5

IV. Working in the new TPO Connect Webcenter ........................................................ 6 Obtaining Login Credentials ........................................................................................................ 6 Announcements.......................................................................................................................... 6 Documents & Forms ................................................................................................................... 7 Loan Actions Menu ..................................................................................................................... 7

Ready to Disclose Indicator .................................................................................................................. 7 Submit Loan ........................................................................................................................................ 8 Re-Submit Loan ................................................................................................................................... 8

Request a Change of Circumstance ............................................................................................. 8 Uploading Loan Documents & Conditions ................................................................................... 9 Manage your Pipeline ................................................................................................................. 9

To Customize Your Pipeline View: ...................................................................................................... 10 To Filter Your Pipeline View: .............................................................................................................. 10

Originating Loans ...................................................................................................................... 11 Start a New Loan ............................................................................................................................... 11

Setting up the 1003 ................................................................................................................... 13 Loan Information Page ...................................................................................................................... 13 Borrower Information Page ............................................................................................................... 13 Employer History Page ...................................................................................................................... 14 Income and Expenses Page ................................................................................................................ 14 Assets and Liabilities Page ................................................................................................................. 15 Details of Transaction Page ................................................................................................................ 18 Declarations and Gov. Monitoring Page ............................................................................................. 19 Comments ........................................................................................................................................ 19 Adding Co-Mortgagors ...................................................................................................................... 19 Register the Loan .............................................................................................................................. 20

CONTENTS

LOAN SUBMISSION GUIDE - November 2019 2

Register loan

Once a completed application is received from the borrower, register your loan file through the TPOWebcenter (Saving your loan file will complete the registration process)

eConsent Sent to Borrower

Once the file is registered, N2 Funding will send a request to deliver documents electronically(eConsent) to the borrowers. The borrowers must accept this request to eSign any disclosures.

You will receive a notification when the request has been sent. Please be sure to have yourborrower accept this request as soon as possible.

Request Disclosures

When you have uploaded the Minimum Required Documents for Disclosure, select the Ready toDisclose option from the Loan Actions Menu to let N2 Funding know your file is ready for review

• Documents can be uploaded to the individual document folders, or they can be uploaded inbulk to the TPO-Submittal folder.

The initial disclosure package (including the Loan Estimate) will be prepared and delivered to theborrower by N2 Funding.

YOU MUST REQUEST DISCLOSURES WITHIN 24 HOURS OF REGISTERING YOUR FILE

LOANS RECEIVED AFTER 3 PM ET ARE CONSIDERED RECEIVED THE FOLLOWING BUSINESS DAY

Disclosures Issued

When the disclosures have been issued, you will be notified via e-mail. A copy of the initial disclosure package will be uploaded to the Disclosures- N2F Initial Disclosures

folder If the borrower has not eConsented by 10 AM ET on the Disclosure Due Date, we will issue the

disclosures via US Mail to keep the file compliant.

Prior to Doc Conditions Added

If you are required to provide any additional disclosures, PTD Conditions will be added to your file It is imperative that you review these conditions as soon as possible, as some required disclosures

must be issued within 3 days of the taking the initial application.

Loan Submitted to Underwriting

Once all required underwriting documentation has been provided, select the Submit option fromthe Loan Actions Menu in the TPO Connect Webcenter. This will send your loan to your AccountManager for review

Your Account Manager will review your submission, and notify you if any additional documentationis required to get your loan into underwriting

LOAN PROCESS SUMMARY

LOAN SUBMISSION GUIDE - November 2019 3

Loan Decision Received

When the underwriter issues a decision on your loan, you will receive an automatic notification via eMail.

The Underwriter assigned to your file will contact you using the contact information provided on the N2 Funding Submission Form to review any questions on your loan decision.

Your Account Manager will also provide you with a copy of your Condition Sheet by uploading this

document to the TPO-Conditional Approval folder

FOLLOW UP INQUIRIES SHOULD BE DIRECTED TO YOUR ACCOUNT MANAGER DIRECTLY

Conditions Uploaded

Upload your conditions to the TPO-Conditions Folder • Stack supporting documentation according to the numbers on the condition sheet • If possible, number the document to the corresponding condition and upload individually

If you do not see the TPO-Conditions folder, you can upload your documents to the Unassigned section of the Documents tab

Loan Re-Submitted

Select Re-Submit Loan from the Loan Actions Menu when the loan is ready to go back to Underwriting

Loans will not be re-submitted for underwriting review until at least 80% of the required conditions have been provided, unless the loan meets the criteria below

• Appraisal has been received • Loan was suspended, and the suspense condition(s) are ready for review

Your Account Manager will review your conditions the same day they are submitted, and contact you directly to update you on the status of your loan

PLEASE NOTE, YOUR ACCOUNT MANGER DOES NOT RECEIVE NOTIFICATION WHEN DOCUMENTS ARE UPLOADED TO ENCOMPASS. YOU MUST OFFICIALLY RE-SUBMIT YOUR LOAN,

OR YOUR LOAN WILL NOT BE PLACED IN LINE FOR CONDITION REVIEW

CONDITIONS SUBMITTED AFTER 3 PM ET ARE CONSIDERED RECEIVED THE FOLLOWING BUSINESS DAY

Final Approval Received (CTC)

Once your loan is Clear to Close, you will be notified via eMail

Preliminary CD Issued You can request your Preliminary Closing Disclosure by e-mailing your Account Manager

directly • N2 Funding will consider sending the preliminary cd when the file is not CTC on a case by

case basis. All exception requests must be routed through your Account Manager for approval

CD REQUESTS WILL BE COMPLETED WITHIN 1 BUSINESS DAY OF PLACING THE REQUEST REQUESTS RECEIVED AFTER 3 PM ET ARE CONSIDERED RECEIVED THE FOLLOWING BUSINESS DAY

LOAN SUBMISSION GUIDE - November 2019 4

N2 Funding prepares and delivers all initial disclosure packages, including the Loan Estimate, TRID Disclosures, program specific disclosures, and applicable state specific disclosures.

To ensure compliance with the disclosure delivery requirements set forth in the TILA-RESPA Integrated Disclosures Act (TRID), you must upload the minimum required documentation for disclosure within 1 business day of registering your file with N2 Funding.

Please note, disclosures requested after 3 PM ET will be considered received the following business day.

We will send a request to the borrower(s) for consent to deliver documents electronically (eConsent)

For the borrower to eSign the initial disclosures, this request must be accepted by 10 AM EST on theLE Due Date

If the borrower does not accept by this time, N2 Funding will deliver the initial disclosure packagevia US Mail.

• Disclosures that are delivered via US Mail can be DocuSigned by the borrower through the broker’ssystem as long as the compliant DocuSign Certificate is uploaded with the eSigned documents

When disclosures are delivered electronically, the last 4 of the borrower’s social security number(s)will be used as the authorization code

The borrower can accept the eConsent request at any time to receive future communications anddisclosures electronically (including the Preliminary CD)

ELECTRONIC DOCUMENT SIGNING – HELP VIDEO

If your borrower is having trouble eSigning their disclosures, you can provide this video, which will guide them through the eSign Process.

N2 FUNDING SUBMISSION FORM

• This form must be completely entirely.

• If a fee sheet or title quote is provided, the fee estimate section can be left

INITIAL 1003 WITH COMPLETED FNMA DI ADDENDUM • Must be submitted within 1 business day of the application• Must be signed by the originating Loan Officer• Must have fully completed and compliant FNMA Demographic Information Addendum

FEE SHEET OR TITLE QUOTE • If no documentation is provided, the fee estimate section on the N2F Submission Form must be

completed

DICLOSURE PROCESS

TRID TIMING & DELIVERY REQUIREMENTS

ECONSENT & ELECTRONIC DOCUMENT DELIVERY

MINIMUM REQUIRED DOCUMENTATION FOR DISCLOSURE

5 LOAN SUBMISSION GUIDE - November 2019

In addition to the initial disclosure package issued by N2 Funding, the broker is required to provide compliant copies of the following fully executed disclosures prior to receiving the final loan approval:

1003 WITH FNMA DEMOGRAPHIC INFORMATION ADDENDUM

ANTI-STEERING DISCLOSURE (LPC LOANS ONLY)

CREDIT SCORE INFORMATION DISCLOSURE

NOTICE TO THE HOME LOAN APPLICANT

BPO CERTIFICATION (BPO LOANS ONLY)

3RD PARTY PROCESSING CERTIFICATION (IF APPLICABLE)

STATE SPECIFIC DISCLOSURES (PER STATE REQUIREMENTS)

AMC Trak Coester Landmark Market Valuation Services (MVS) Nationwide (One Stop) Pendo

Your appraisal can be ordered in the TPO Connect Webcenter from the Resources Menu, under Appraisals

BROKER PROVIDED DISCLOSURE REQUIREMENTS

APPRAISAL MANAGEMENT

APPROVED AMCS

ORDERING YOUR APPRAISAL

REVISED 11/26/2019 6

This section of the guide will help you navigate through the new TPO Connect Webcenter, which connects directly to our loan origination system (Encompass). The TPO Connect Webcenter provides a central online location where you can originate, process, and monitor loans.

After logging into the website, you can originate new loan files or import loan files from a Fannie Mae formatted file. Once the loan is added to our website, you can submit the loan or take actions such as ordering a credit report or searching for product and pricing options. You can also use the website to monitor the loan’s status. At the same time, we can monitor the loan activity in our LOS and ensure we are receiving all the necessary information we need. Changes made to the loan file on the website are reflected in the loan when opened in our LOS and vice versa.

This guide provides all of the instructions necessary to log into the website and start originating and processing loans. Please reach out to your Account Executive or Account Manager with any additional questions.

Login credentials for the TPO Connect Webcenter are requested directly through your Account Executive. Your Account Executive will request your login credentials from our Broker Approval Department. Once issued, you will be sent a Welcome Letter containing your user name and a temporary password.

If you already have credentials for the old TPO Webcenter, you can access the new TPO Connect Webcenter using the same username assigned to you previously. You can request a new password on the website directly, or by contacting your Account Executive.

Please note, each individual Loan Originator and Loan Processor must have their own TPO Connect Webcenter logins, or they may not receive the proper notifications on your loan files. Additionally, all loan submissions must be uploaded from the Originator’s login. Processors are never allowed to upload files on behalf of the Loan Office

You can view N2 Funding’s latest announcements by selecting the Announcements Tab from the top of the TPO Connect Webcenter

WORKING IN THE NEW TPO CONNECT WEBCENTER

OBTAINING LOGIN CREDENTIALS

ANNOUNCEMENTS

REVISED 11/26/2019 7

The Loan Actions Menu can be found on the left-hand side of the TPO Connect Webcenter

READY TO DISCLOSE INDICATOR

Once your file is ready for our team to issue disclosures, you will need to indicate this by selecting the Ready to Disclose option in the TPO Connect Webcenter. On the left- hand Navigation Menu, select Ready to Disclose from the Loan Actions Menu. Review the loan information on this page thoroughly, then select “Ready to Disclose”

Blank Forms, Product Guidelines, Reference Guides, and other documentation provided by N2F can be found under the Documents tab of the TPO Connect Webcenter. The Documents tab is for general forms and documentation only. Loan level documentation is uploaded through the Documents section of the individual loan file

LOAN ACTIONS MENU

DOCUMENTS & FORMS

LOAN ACTIONS MENU

REVISED 11/26/2019 8

SUBMIT LOAN

Once you have uploaded all required documentation for Underwriting, select Submit Loan from the Loan Actions Menu. This lets your Account Manager know that your loan is ready to be submitted for the initial underwrite.

RE-SUBMIT LOAN

Once your loan has been underwritten, you will upload all your conditions to the TPO- Conditions folder. When you are ready to have your loan sent back into underwriting, select the Re-Submit option from the Loan Actions Menu. This lets your Account Manager know that your file is ready to be sent back for review.

Loan is not locked: Please e-mail your Account Manager directly with any changes to your loan file. Your Account Manager will update your file and request revised disclosures once the changes have been made.

Loan is locked: You can request revised disclosures by logging in to our Product & Pricing service, Optimal Blue. Using the Lock Request Guide (available in the Documents section) as reference, you will need to request a profile change. Make the desired changes, then submit the change request. Once the request has been processed, please e-mail your Account Manager so they can request your revised disclosure package.

REQUEST A CHANGE OF CIRCUMSTANCE

REVISED 11/26/2019 9

To upload documentation to your loan file, first enter the loan file from your pipeline. Once the loan is open, select the Documents section on the left- hand side (above the Loan Actions Menu).

Disclosures should be uploaded to their individual document containers

Underwriting Documents should be uploaded to the TPO- Submittal folder

Conditions should be uploaded to the TPO-Conditions folder

CONDITIONS

You can view your conditions from the Conditions section of the loan, which can be accessed from the left-hand navigation menu. Upload all conditions to the TPO-Conditions folder. When you are ready to send your loan back to underwriting for condition review, select the Re-Submit option from the Loan Actions Menu

Click the Pipeline link on the Welcome page to view your pipeline of loans. As you create new loans, they will be listed in the Pipeline. Here you can check loan status, lock status, and some basic loan information. Depending on your assigned role and permissions, you may be able to view all the loans that your team has entered in TPO Connect.

UPLOADING LOAN DOCUMENTS & CONDITIONS

MANAGE YOUR PIPELINE

REVISED 11/26/2019 10

TO CUSTOMIZE YOUR PIPELINE VIEW:

1 From the Pipeline page, Click All Loans to view all loans that you have access to view or click My Loans to view only the loans you have originated.

2 Click Current to view loans in the Current Pipeline or click Archived to view loans in the Archived Pipeline

3 Click Wholesale to view wholesale loans

4 Click Correspondent to view correspondent loans.

TO FILTER YOUR PIPELINE VIEW:

1 From the Pipeline page, Click Advanced Filter. 2 Choose one or more filters to apply to your pipeline view, and then click Apply Filters.

3 To clear any applied filters, click Clear Filters.

REVISED 11/26/2019 11

There are two ways to originate a loan in TPO Connect: Importing a Fannie Mae DU 3.2 file or by manually filling out an online 1003.

START A NEW LOAN

1 Click the Add New Loan button on the TPO Connect home page to start a new loan.

2 In the pop-up window, select the loan officer(s) and loan processor(s) the loan will be assigned to.

3 Click Next. 4 Using the pop-window, you can upload a DU 3.2 file (*.fnm) or enter the loan data manually in a 1003

form.

• To import an FNM file, select the import option, click Browse Files, and then select the file. OR

• Select Manually enter loan data.

ORIGINATING LOANS

REVISED 11/26/2019 12

IMPORTING THE FNMA 3.2 FILE

Click Next.

Select Import from FNM 3.2 file, click Browse Files, and then select the file.

3 Click Next. 4 An electronic 1003 form displays. After you finish entering information on a page, click the Next

button to proceed until all of the information is entered.

5 When you are ready to save the loan, click Register. NOTE: The name of each application page is also listed on the left side of the page. Click a page name to view that page in the application.

CREATING A LOAN MANUALLY

Select Manually enter loan data, and then click Next.

An electronic 1003 form displays. Enter the required loan data.

After you finish entering information on a page, click the Next button to proceed until all of the information is entered.

To save the loan, click Register.

REVISED 11/26/2019 13

LOAN INFORMATION PAGE

The Loan Information Page includes information about the loan including the type of mortgage, loan terms, property information, and title information. This is the information contained in Sections I and II of the Uniform Residential Loan Application form.

NOTE: The name of each application page is listed on the left side of the page. Click a page name to view that page in the application

BORROWER INFORMATION PAGE

The Borrower Information page includes information about the borrower(s) and their residency.

SETTING UP THE 1003

REVISED 11/26/2019 14

EMPLOYER HISTORY PAGE

Use this page to enter the borrower and co-borrower’s employment information.

1 Click the Add an Employer button.

2 Indicate whether this information is about the borrower’s current employer or previous employer, and then enter the remaining employment information.

3 Click the Save & Add Another button to add information about a different employer.

4 When finished, click the Save button.

INCOME AND EXPENSES PAGE

Enter the monthly income and housing expenses for the borrower. This information correlates to the information in Section V of the Uniform Residential Loan Application form.

NOTE: A proposed monthly payment will not be calculated until you submit the loan file to the product and pricing engine (discussed in Section 3) and select a program/rate/price combination. Once the selected interest rate is applied to the loan, a proposed monthly payment will be calculated.

REVISED 11/26/2019 15

ASSETS AND LIABILITIES PAGE

Use the Assets and Liabilities page to enter information about asset accounts and liabilities. This information is reflected in Section VI of the Uniform Residential Loan Application.

1 Click the Add Asset Accounts button.

2 Enter the asset information.

1 In the Account Information section, select an account or asset type, and then provide its details.

2 Repeat Step 3 to add additional accounts. You can add up to four accounts for one financial institution.

3 To add a new asset and account information, click the Save & Add Another button.

4 When finished, click the Save button.

TO ENTER CASH DEPOSITS

1 In the Cash Deposit Towards Purchase section, click the Add Cash Deposits button.

2 Enter the cash deposit amount and who the cash deposit is held by.

3 To add a new cash deposit, click the Save & Add Another button.

4 When finished, click the Save button.

REVISED 11/26/2019 16

TO ENTER STOCKS & BONDS:

1 In the Stocks & Bonds section, click the Add Stocks or Bonds button.

2 Enter the Stock and Bond information.

3 To add a new Stock and Bond entry, click the Save & Add Another button.

4 When finished, click the Save button.

TO ENTER AUTOMOBILES OWNED:

1 In the Automobiles Owned section, click the Add Automobile button.

2 Enter the automobile asset information.

3 To add a new automobile entry, click the Save & Add Another button.

4 When finished, click the Save button.

TO ENTER OTHER ASSETS:

1 In the Other Assets section, click the Add Asset button.

2 Enter the asset information.

REVISED 11/26/2019 17

3 To add a new other asset entry, click the Save & Add Another button.

4 When finished, click the Save button.

TO ADD LIABILITIES:

NOTE: Liabilities listed in the General Liabilities section are usually the liabilities from the credit report.

1 To import liabilities from the credit report, click the Import Liabilities button

2 Review the liabilities, and then click the Import Liabilities button.

3 When the liabilities have been successfully imported, you will receive a confirmation message. Click the Close button to dismiss the message and return to the loan.

4 Click the Add a Liability button (located at the bottom of the list) to enter additional liabilities.

5 Enter the liability details.

Select the Exclude from URLA Page 2 Liabilities Total check box to exclude the payment from the ratios.

Select the Mortgage liability will remain on subject property check box to indicate the liability is being paid off through the transaction.

6 To add a new liability, click the Save & Add Another button and enter the liability details.

7 When finished, click the Save button.

8 To modify a liability, click the Edit link at the right of the liability.

TO ENTER ALIMONY, CHILD SUPPORT, AND JOB RELATED EXPENSES:

Use the Alimony, Child Support, and Job Related Expenses section on the Assets and Liabilities tab to enter applicable payment details.

TO ENTER REAL ESTATE HOLDINGS:

1 In the Schedule of Real Estate Owned section, click the Add a Real Estate Owned button.

2 Enter information about the real estate owned by the borrower, including any outstanding liens.

REVISED 11/26/2019 18

3 Click the Save & Add Another button to add information about an additional real estate holding.

4 When finished, click the Save button.

DETAILS OF TRANSACTION PAGE

Use Transaction Details page to enter the subject property’s purchase price and other transaction details.

NOTE: When working with a loan you imported to the website, the fields on the Transaction Details page will be automatically populated with applicable information from the loan file.

REVISED 11/26/2019 19

DECLARATIONS AND GOV . MONITORING PAGE

Select Yes or No for each question, and then select the appropriate options in the Borrower and Co- Borrower Information for Government Monitoring and Interviewer Information sections. This information reflects the information found in Sections VIII and X of the Uniform Residential Loan Application.

COMMENTS The Comments section on the comments page is used as a continuation sheet if you need more space to complete the 1003 loan application. Comments added to this section TPO Connect are recorded on the 1003 page 4 form in Encompass.

ADDING CO-MORTGAGORS

After entering all of the 1003 information for the initial borrower(s), you can then add a co-mortgagor. At the top of the page, click the Edit button.

Click Add New Pair to add a Co-Mortgager pair.

Enter the required information for the co- mortgagor(s).

When finished, click Save.

At the top of the page, select the new borrower pair from the Select Borrower Pair drop-down list.

Complete all of the information on each of the 1003 tabs for the co-mortgagor(s), just as you did for the initial borrower(s).

REVISED 11/26/2019 20

REGISTER THE LOAN

To save the information you have entered on the 1003, click the Save button. The Save button is located at the top and bottom of every 1003 page. Once you save the loan file, it is registered with N2 Funding.