Offered exclusively through… FIRST MORTGAGE CORPORATION

1. The “Access / FirstDown” Training Offered exclusively through… FIRST MORTGAGE CORPORATION Desktop Underwriter is a registered trademark of Fannie Mae. Loan Prospector is a registered trademark of Freddie Mac. This presentation is a summary and is not complete. This information is for mortgage professionals only and should not be distributed to or used by consumers or other third-parties. Information is accurate as of the date shown below and is subject to change without notice. 7/8/2014

2. Agenda • Introduction • Access / FirstDown Programs • Program Highlights • Income Calculation • Eligibility Guidelines • Underwriting Guidelines • Access / FirstDown Fees • Process and Documentation • What’s New? • Marketing & Support Since 1975, First Mortgage Corporation has been opening doors to the American Dream. It’s all we do and we do it well. Discover today why First Mortgage Corporation is your First Time Home Buyer and Down Payment Assistance Headquarters! Don’t wait! Call us today!

3. First Mortgage Corporation State Restrictions Market Challenges & Access Solution Introduction

4. Introduction to First Mortgage Corporation • First Mortgage Corporation is an independent residential Mortgage Banking firm with branch offices located throughout the west. • Founded in 1975, FMC is a direct-lending mortgage banker approved as a lender and/or loan servicer by the Federal Housing Administration (FHA); the Veterans Administration (VA); the Federal National Mortgage Association (Fannie Mae); the Government National Mortgage Association (Ginnie Mae); the National Homebuyers Fund (NHF);and many other major secondary market institutions. First Mortgage Corporation is currently rated the #3 FHA Lender in CA; Top 50 in the Nation! • Having funded in excess of $20 billion in residential real estate loans, FMC has assisted thousands of families with their mortgage needs.  FMC enables families to enjoy the American Dream of Homeownership…“it’s the only thing we do.” • FMC has a longstanding tradition of providing unparalleled customer service and a reputation built on adding value to the home loan process.  That’s why FMC should be considered…“YOUR FIRST LENDING RESOURCE”.

5. Purpose of the Program • Purpose of the Program… • Provides financing to families and individuals who can afford a mortgage loan but do not have the resources for the down payment and closing costs • What we provide… • First Mortgage Corporation offers financing up to 99.50% designed to increase homeownership opportunities to low-to-moderate income individuals and families in AZ, CA, CO (Wholesale Only), NM, NV, TX, and UT.

6. Today’s Challenges • Seller paid DAPs discontinued (Nehemiah, etc.) • More restrictive guidelines/products • Slow market • Struggling Economy • Maxed out sellers • Higher cost of living = Less money to save Over $7.2 Billion in 1st & 2nd loan financing since 1993 (53,000 properties)

7. What the “Access / FirstDown” offers

8. Overview

9. Eligible 1st Mortgage Program Down Payment & Closing Cost Assistance Sample Calculations Income Limit Calculation Access / FirstDown Programs

10. Access / FirstDown1st Program

11. NHF Access / FirstDown 2nd Program

12. Sample Scenario: (Purchase Price: $150,000)

13. Program Income Limits Income Limit Calculation Qualifying Borrower Income INCOME LIMITS / CALCULATIONS

14. Program Income Limits

15. Borrower Qualifying

16. Sample Qualifying Income

17. ADDITIONAL GUIDELINES Eligibility Guidelines General Underwriting Guidelines

18. Eligibility Guidelines

19. Underwriting Guidelines

20. UW Guidelines cont’d…

21. FMC - FHA Overlays (Applies to all FMC products) Effective May, 2014

22. FMC - FHA Overlays Effective May, 2014 • Ineligible Products • Eligible Products • Appraisal Requirements • 4506T Requirements • Overlays for Manual underwrites • Insufficient Credit Borrower requirements • Overlays for FHA Manufactured Homes • Overlays for VA Loans • Overlays for VA Manufactured Homes • Overlays for Jumbo VA loans • Overlays for Disputed Accounts • Overlays for Authorized Users • Overlays for Age restricted communities • Overlays for MCC program

23. Access/FirstDown Interest Rates Access/FirstDown Allowable Fees Access/FirstDOWNRATES & FEES

24. Access/FirstDownFees & Charges

25. MISCELLANEOUS Process… Marketing Materials Selling Features FMC Support

26. Process & Documentation

27. Mandatory Form • Secondary Financing Notice(Required on the FirstDown Program ONLY!) • This form must be required in every file • Not required for submission to UW • Will be made a funding condition • Included as part of the Doc set

28. Sample Marketing Materials

29. FIRST MORTGAGE • NOT Limited to First Time Home Buyers • NO “Recapture Tax” if home is sold later • NO Sales Price Limits • No additional “Compliance Review” required • Financing available for Down Payment and Closing Costs • CLTV’s up to 99.50% = little to no money down & no out of pocket closing costs • No Minimum Borrower Contribution Required • Ratios stretched up to 48.9% DTI • 2 Units allowed with minimum 640 fico score • Manufactured Homes with minimum 660 fico score • Buyer or Seller Discount Fees allowed Selling Features

30. FIRST MORTGAGE FAQ’s • Frequently Asked Questions is available on the First Mortgage website. Hot Question! • Can you refinance the Access / FirstDown loans for a lower rate? Is the 2nd re-subordinated or will it need to be paid off with the new refinanced 1st mortgage? • ANSWER: • YES!!! You can refinance the 1st for a lower interest rate. • FMC will re-subordinate the 2nd as long as the refinance is done by First Mortgage Corporation (For Correspondent Lenders, refinanced loan must be sold to FMC). • Borrower must have made a minimum of 6 monthly payments on time. • If the borrower goes somewhere else to refinance their Access/FirstDownloan, FMC will not re-subordinate the 2nd and require that it be paid off through their new loan. F A Q ‘ S

31. FMC Support WEB SITE Go to our FMC websites: • RATE SHEETS • TRAINING MATERIALS • GUIDELINES • FORMS • CALCULATORS • TOOLS • MARKETING SUPPORT Retail: Loan Help Wholesale/Correspondent: Your FMC Account Executive For help with your: • Scenarios • Pricing / Fees • Guidelines • Loan Submissions • Trainings • TRAININGS • First Mortgage offers FREE Weekly ONLINE Trainings • See the FMC website for the July 2014 Training schedule • Trainings for July 2014: • 7/2 – FMC Product Overview • 7/8 – Access/FirstDOWN Program • 7/10 – NEW PROGRAM Training -CalHFA Programs • 7/15 – FHA 203(k) Program Training • 7/17 – Manufactured Homes Training • 7/22 – Calyx Point Training (FMC Employees ONLY)

32. On behalf of First Mortgage, thank you for joining today’s training and we hope the information provided will help you build your business! The main purpose of First Mortgage Corporation’s (FMC) training documents is to assist real estate and mortgage professionals in developing entry-level competence with loan programs. While FMC staff, employees, contractors and contributors take care to ensure the accuracy of the content of training documents, FMC makes no warranties as to the accuracy of the information contained within these materials. Furthermore, every user of this material uses it understanding that he or she must still conduct his or her own original legal research, analysis and drafting. In addition, every user must refer to the relevant legislation, case law, administrative guidelines, rules and other primary sources. FMC specifically disclaims any liability for any loss or damage any user may suffer as a result of information contained within this training material. While the information contained in FMC’s training material addresses guidelines and issues surrounding mortgage programs, these materials do not constitute legal advice. All non-legal professionals are urged to seek legal advice from a lawyer.