The commitment of an UpFront Mortgage Broker

July 26, 2000

1. The broker will be the customer's representative or agent, and will endeavor to act in the best interests of the customer.

2. The broker will establish a price for services upfront, in writing, based on information provided by the customer.

• The price may be a fixed dollar amount, a percent of the loan, an hourly charge for the broker's time, or a combination of these.

   

• The price or prices will cover all the services provided by the broker. This includes loan processing, for which customers always pay a broker or lender.

   

• On third party services, such as an appraisal, ordered by the broker but paid for by the customer, the broker will provide the invoice from the third party service provider at the customer’s request. Alternatively, the broker may have the payment made directly by the customer to the third party service provider.

• If the broker's fee is 1 point, for example, and the broker collects 1 point from the lender as a “ yield spread premium”, the broker either charges the customer 1 point and credits the customer with the yield spread premium, or charges the customer nothing and retains the yield spread premium.

5. The wholesale prices from which the broker's selection is made will be disclosed at the customer's request.

6. When directed by the customer, the broker will lock the terms (rate, points, and other major features) of the loan, and will provide a copy of the written confirmation of the rate lock as soon as it has been received from the lender.

7. If a customer elects to float the rate/points, the broker will provide the customer the best wholesale float price available to that customer on the day the loan is finally locked.

8. The broker will maintain a web site on which its commitment to its customers is prominently displayed, along with any other information the broker wishes to convey.