Correspondent Seller’s Manual © 2021 The Money Source Inc. https://Correspondent.TheMoneySource.com/ NMLS #6289 Correspondent Manual General .......................................................................................................................................................... 7 Seller Requirements ...................................................................................................................................... 7 Application ................................................................................................................................................ 8 Correspondent Seller Financial Evaluation ............................................................................................... 9 Third Party Origination (TPO) Approval .................................................................................................... 9 Delegation and Underwriting Authority ................................................................................................... 9 Yearly Review and Renewal, Audits and Reporting .................................................................................. 9 Pull-Through Ratio Requirements ........................................................................................................... 10 Representations, Warrants, and Covenants ........................................................................................... 10 Maintain Good Standings........................................................................................................................ 11 Sole Owner and Holder of the Mortgage Loan ....................................................................................... 11 No Servicing Restrictions ........................................................................................................................ 11 Loan is Not Subject to Right of Rescission or Counter Claim .................................................................. 12 Funding Meets Applicable State and Federal Laws ................................................................................ 12 Proceeds Fully Disbursed ........................................................................................................................ 12 Mechanic Liens or Claims for Work ........................................................................................................ 12 Property and Improvements ................................................................................................................... 13 Purchase or Not Purchase ....................................................................................................................... 13 Anti-Money Laundering Laws ................................................................................................................. 13 Servicemembers Civil Relief Act .............................................................................................................. 13 High-Cost Loan ........................................................................................................................................ 13 Ability to Repay (ATR) and Qualified Mortgage (QM) Rule .................................................................... 14 Quality Control and Audit System ........................................................................................................... 14 Effect of Termination .............................................................................................................................. 14 Confidentiality ......................................................................................................................................... 14 Right to Offset ......................................................................................................................................... 14 Mortgage Loan ........................................................................................................................................ 15 Qualified Appraiser and General Appraisal Requirements ..................................................................... 15 Texas Home Equity – A6 ......................................................................................................................... 15 TMS Disaster Policy ................................................................................................................................. 16 Warranty ......................................................................................................................................... 17 Revised: April 28, 2021 1 Correspondent Manual Requirements .......................................................................................................................................... 17 Re-Verification of Employment and Income ....................................................................................... 17 Change of Circumstance (COC) ........................................................................................................... 17 Appraisal/Reinspection ....................................................................................................................... 17 Lender Certification In Lieu of Reinspection ....................................................................................... 22 Government Loans .................................................................................................................................. 23 Funding Documentation ............................................................................................................................. 23 No Impaired, Waived, Altered, or Modifications .................................................................................... 23 Record Security Instrument .................................................................................................................... 24 Qualified and Authorized Trustee ........................................................................................................... 24 Due-on-Sale ............................................................................................................................................. 24 Title Insurance Policy .............................................................................................................................. 24 Survey Requirements .............................................................................................................................. 25 Endorsement Requirements ................................................................................................................... 25 Instructions to Settlement Agents and Title Companies ........................................................................ 25 Allowable Vesting.................................................................................................................................... 25 Insurance Against Loss ............................................................................................................................ 25 Hazard Insurance ................................................................................................................................ 25 Purchase Transactions ........................................................................................................................ 26 Refinance Transactions ....................................................................................................................... 26 Mortgagee Clause ........................................................................................................................... 26 Condominiums .................................................................................................................................... 27 Effective Date ...................................................................................................................................... 27 Purchase Transactions ........................................................................................................................ 27 Refinance Transactions ....................................................................................................................... 27 Deductible ........................................................................................................................................... 27 Flood Insurance ................................................................................................................................... 27 Private Insurance Policy for Government Loan Types ........................................................................ 28 Flood Certificate .................................................................................................................................. 29 Earthquake Insurance ......................................................................................................................... 29 Additional Coverage ............................................................................................................................ 29 Revised: April 28, 2021 2 Correspondent Manual Rent Loss ............................................................................................................................................. 29 Fraud, AML/BSA, SAR Filing and Reporting to The Money Source Inc. ...................................................... 29 Accuracy of Documents .............................................................................................................................