Nationwide Advantage Mortgage Company

ADDENDUM TO MORTGAGE PURCHASE AGREEMENT
DELEGATED UNDERWRITING

THIS Delegated Underwriting Addendum (“Addendum”) to the Correspondent Lender Purchase Agreement (“Agreement”) dated as of ________________, ____ by and between Nationwide Advantage Mortgage Company (“NAMC”) and _______________________ (“Participant”), shall be effective the ___ day of ______________, ____.

WHEREAS, under the terms of the Agreement, the Participant intends to sell to NAMC certain Mortgage Loans; and

WHEREAS, NAMC and the Participant desire to amend or supplement the Agreement so as to delegate authority to Participant to underwrite, or to have third party contract underwriters underwrite, Mortgage Loans that the Participant intends to sell to NAMC pursuant to the Agreement; and

WHEREAS, NAMC’s obligation to purchase such Mortgage Loans is conditioned upon Participant’s underwriting of each Mortgage Loan in a manner consistent with the Agreement, this Addendum, the Investor Guidelines and the Correspondent Lending Manual;

NOW, THEREFORE, the Parties enter into this Addendum in order to expedite the purchase of Mortgage Loans to be sold to NAMC under the Agreement, and hereby agree as follows in addition to the terms in the Agreement:

1.  NAMC agrees to purchase Mortgage Loans originated by Participant that have been underwritten and approved by FNMA’s Desktop Underwriter automated underwriting system, applied by the Participant or the Participant’s designated third party contract underwriter (“Contract Underwriter”). NAMC hereby delegates to Participant, or its approved Contract Underwriter(s), the authority to underwrite and approve each such Mortgage Loan. All findings will be included in the package submitted for purchase.
   
2.

The delegated underwriting authority agreed to in this Addendum is granted (i) only to those employees of Participant (“Specified Employees”) or Contract Underwriters who are identified in the Correspondent Application for Delegated Underwriting Authority attached to this Addendum or who are subsequently authorized by NAMC in writing to perform delegated underwriting, and (ii) only for those programs checked below. NAMC, in its sole discretion, may subsequently authorize delegated underwriting authority for additional programs, upon written notice to Participant.

___ Specified Employee - Conventional
___MI Contact - Conventional
___ FHA
___VA
   
3.  Participant represents, warrants and agrees that its underwriting will comply with all Applicable Laws and will conform to prudent underwriting practices and, more specifically, to the underwriting guidelines published in the Investor Guidelines and the Correspondent Lending Manual. Participant further represents and warrants that it, or its designated Contract Underwriter, as applicable, is properly licensed to use FNMA’s Desktop Underwriter automated underwriting system and is not in breach of any of the terms and conditions of such license agreement.
   
4. Participant represents and warrants that the information contained in the Correspondent Application for Delegated Underwriting Authority attached hereto is true, correct and complete. The Correspondent Application for Delegated Underwriting Authority shall become a part of this Addendum and the Agreement.
   
5. With respect to any FHA Mortgage Loans underwritten pursuant to this Addendum, Participant represents and warrants that (i) it is an approved participant in FHA’s Lender Insurance program, and (ii) all FHA Mortgage Loans underwritten pursuant to this Addendum will be processed through the Lender Insurance program.
   
6. Participant shall be solely responsible for payment to any Contract Underwriter of any and all fees for the Contract Underwriter’s perfomance of its services to satisfy Participant’s underwriting requirements under this Addendum. Further, NAMC shall have no liability to the Contract Underwriter, Participant or any third party for the payment of any such fees. Participant shall indemnify and hold NAMC harmless from any and all claims regarding fees for any such underwriting services.
   
7. In the event that NAMC is required to repurchase any Mortgage Loan underwritten pursuant to this Addendum and sold to NAMC by the Participant pursuant to the Agreement as the result of any established agency or investor rule published in the Investor Guidelines, Participant agrees to repurchase said Mortgage Loan from NAMC as provided in the Agreement.  
   
8. Within fifteen (15) days of the receipt of a repurchase demand from an agency or investor, the Participant may request NAMC to submit additional information to the agency or investor and to request the agency or investor to reconsider such repurchase request. NAMC shall submit such request unless, in its sole and absolute discretion, NAMC determines in good faith that there is no basis to request such consideration or that submission of such a request would be injurious to its business relationship with the agency or investor. Demand for repurchase by Participant will be made upon notification by the investor or agency of its final decision that the Mortgage Loan must be repurchased.
   
9. The Participant also agrees to repurchase upon demand any Mortgage Loan underwritten pursuant to this Addendum and sold to NAMC under the Agreement if:
   
  (a) The Mortgage Loan fails to comply with any requirement described in the Investor Guidelines or the Correspondent Lending Manual which pertains to the Mortgage Loan or does not comply with program requirements.
     
  (b) The Mortgage Loan was originated and/or underwritten based on any materially inaccurate information or material misrepresentations made by the borrower, Participant, Participant’s officers, employees, agents, or independent contractors or any other party providing information relating to such Mortgage Loan.
     
  (c)  The Mortgage Loan was underwritten by an individual or entity that has not been provided the express written authorization by NAMC to perform delegated underwriting.
     
  Funds to repurchase any such Mortgage Loan shall be provided by Participant no more than thirty (30) days from notification of NAMC’s final decision that the loan must be repurchased.
   
10.

The repurchase price to be paid by the Participant for any Mortgage Loan repurchased pursuant to the terms hereof shall be calculated as provided in Section 8(a) of the Agreement.

   
11. For any Mortgage Loan underwritten pursuant to this Addendum that is prepaid in full on or before 120 days following the applicable Sale Date, the Participant agrees to refund to NAMC, within 30 days after NAMC notifies the Participant of the prepayment, an amount equal to (i) the servicing release premium paid for such Mortgage Loan, plus (ii) any premium pricing paid to Participant less any discount pricing.
   
12. Participant shall immediately notify NAMC in writing of any change in the employment status of any Specified Employee who has been granted delegated underwriting authority under this Addendum, or a termination of any Contract Underwriter with which the Participant has an agreement and for which delegated underwriting authority has been granted pursuant to this Addendum.
   
13. This Addendum shall become a part of the Agreement between the Parties. All terms of the Agreement remain in full force and effect. Any capitalized terms not defined herein shall have the same meaning as contained in the Agreement.
   
14.  The delegated underwriting authority agreed to in this Addendum may be terminated by NAMC, for any reason, and at the sole discretion of NAMC upon written notice. Loans submitted to NAMC on or after the notice of termination shall be underwritten by NAMC pursuant to the underwriting fee schedule in effect at that time.
   
15. The Delegated Underwriting authority agreed to in this Addendum does not apply to any Mortgage Loan originated by a third party that is subsequently underwritten and funded or purchased by the Participant.
   
16. The Agreement, as amended by this Addendum, is hereby ratified and affirmed and remains in full force and effect.

IN WITNESS WHEREOF, the Parties have entered into this Addendum as of the date executed by NAMC below.

Nationwide Advantage Mortgage Company Participant: __________________________
   
_____________________________________ _____________________________________
Name Name
   
_____________________________________ _____________________________________
Signature Signature
   
_____________________________________ _____________________________________
Title  Title 
   
_____________________________________ _____________________________________
Date   Date  

Nationwide Advantage Mortgage Company

CORRESPONDENT APPLICATION FOR DELEGATED UNDERWRITING AUTHORITY

Company Name:  _________________________________________________________________
   
Company Address: _________________________________________________________________
   
  _________________________________________________________________
   
  _________________________________________________________________
   
Please note, an individual listed on your Corporate Resolution list must sign this application.
   

The undersigned attests that the net worth of the company at the time of this application is: $________________

   
Please check the Delegated Underwriting authority program(s) that you are applying for.
   
___ Specified Employee - Conv  ___MI Contract - Conv 
   
___FHA  ___VA

Please list the underwriters that you are requesting to be granted Specified Employee Delegated Underwriting authority and attached a current resume for each individual listed.

Name  Years of Underwriting Experience    DE/LAPP
     
___________________________________ ___________________________________ ___________________________________
     
___________________________________ ___________________________________ ___________________________________
     
___________________________________ ___________________________________ ___________________________________
     
___________________________________ ___________________________________ ___________________________________

Please check the appropriate MI Company.

___ MGIC
___ other
___ other

Has any investor previously terminated the company’s delegated authority for cause?     ___Y ___N

Please list the other investors for whom you have Delegated Underwriting authority and the limits of authority.

Company  Limits
   
_________________________________ _________________________________
   
_________________________________ _________________________________
   
_________________________________ _________________________________

 

By: ______________________________      Date: ___________________________

Print Name and Title: __________________________________________________