Conference Recap for Loan Officers

Conference Recap

General Session

Industry Consolidation

Threats

Focus

Opportunities

Acquisitions

Rates Up

Build Relationships

Recruiting

Channels Shut Down

Volume Down

Conversion

Competition

Retail to Wholesale

Non-QM

Profitability

Refinancing

Affordability Wholesale

Referrals

20 19 20 -10 19 O c 20 11 t 19 N o v -1 20 2 D 20 ec 20 01 20 Ja -0 n 20 2 20 F e b 20 03 M 20 ar 20 04 20 A -0 pr 20 5 M 20 a -0 y 20 6 J 20 un 20 -07 20 Ju 20 08 l 20 A u -0 g 20 9 S 20 ep 20 -10 20 O c 20 11 t 20 N o v 20 12 D 21 e -0 c 20 1 21 Ja n 20 02 21 F e b 20 03 M 21 ar 20 04 21 A -0 pr 20 5 M 21 a -0 y 20 6 J 21 un 20 -07 21 Ju 20 08 l 21 A u -0 g 20 9 S 21 ep 20 -10 21 O c 20 11 t 21 N o v 20 12 D 22 e -0 c 20 1 22 Ja n 20 02 22 F e b 20 03 M 22 a 20 -04 r 22 A -0 pr 20 5 M 22 a -0 y 20 6 J 22 un 20 -07 22 J -0 ul 8 Au g

Volume/Rate Comparison Volume/Rate Comparison

$1,000,000,000 3%

$900,000,000

$800,000,000

$700,000,000

$600,000,000

$500,000,000

$400,000,000

$300,000,000

$200,000,000

$100,000,000

$0 90%

Purchase Refinance Rate

6.000 5.750 5.500 5.250 5.000 4.750 4.500 4.250 4.000 3.750 3.500 3.250 3.000 2.750 2.500 2.250 2.000 1.750 1.500 1.250 1.000 0.750 0.500 0.250 0.000

Rates up 3% in 1st half of 2022

Refi Volume Dropped 90%

YOY Volume Down 60%

Hard Times

Strong Men

Weak Men

Good Times

AFN Initiatives

Scalability

Task Based Workflow

OLD

NEW

Processor sees pipeline of

Processor sees a pipeline of

loans, figures out which ones

exactly what tasks are ready to

need work and what to do

be performed on all files

Task Based Workflow

Task Based Workflow Estimated Man Hours to Complete

Individuals Assigned

Tasks

450 SPENT

2 S R E N CO M PA S S A D M I N S

200 IDENTIFIED

1,000 REMAINING

5 OT H E R I N D I V I D UA L S GUIDING PROJECT

5 - 1 0 S U BTA S K S E AC H

Enhanced Conditions & Doc View Required Review, reorganize and convert all 1,624 conditions and rules

Encompass Upgrades Coming 2023 Will Help Further

Target Rollout End of year for many tasks

AFN Initiatives

Speed/ Efficiency

Robotic Process Automation (RPA) Automation Anywhere Platform BOTS 01

02

Created to do 1 task

03

Perform the task one at a time

Assigned to a server to run workflow

04

Run 24/7

Operations

Loan Opener

Eagles Team Processing Services Available!

Jr. Processor Submission Processor (front-end) Full Processor Contact April Hong or Chris Uldricks for further information.

Operations Operations

-

ARM Procedures and ARM Procedures Encompass Rulesand Encompass Rules

-

Buydown Procedures and Buydown Procedures and Encompass Rules Encompass Rules Closing Cost Closing Cost Worksheet -

-

Worksheet -

-

Closing Loans in a Trust

Closing Loans in a Trust

Now Now Available!

Available

Operations Operations

--

POA Procedures changes regarding live ARM and signature requirements ARM Procedures Encompass Rulesand Encompass Rules

--

Buydown Procedures and Buydown Procedures and VVOE date changes Encompass Rules Encompass Rules Closing Cost Closing Cost Worksheet -

--

Solar Panel Checklist Worksheet -

--

Closing Loans in a Trust

MaventLoans Guideinissued Closing assist with alerts atoTrust

Now Now Available!

Available

-

Sure Receipt from Mercury

-

Candor Automation

-

Closing loans in an entity (LLC) with NonQM Investors

-

EAD and Visa Worksheets

-

ICF (Business Purpose Loan)

Coming Soon!

Compliance -

-

-

Replacing the current AFN COC with ICE form using Encompass fields Compliance Rules to help prevent mistakes before disclosures are issued LE/CD Comparison screen will eliminate need for “stare” and compare and increase efficiencies

Coming Soon!

Closing/Funding Hybrid eClosing Restrictions

eNote Closings Restrictions

• Construction to Perm

• Construction to Perm

• Down Payment

• Down Payment

Assistance (DPA

Assistance (DPA

• Power of Attorney

• Power of Attorney

(POAs)

(POAs)

• TX 50 (a)(6)

• TX 50 (a)(6)

• Loans closed in a

• Loan in NY or ME

Trust

• Co-Ops • Loans closed in a Trust

AVA I L A B L E

RON Closings

CO M I N G S O O N

COMING Q2 2023

Revised CPL expiration date to 90 days AVA I L A B L E

Turn Times All Branches

10 Fastest 0

5

10

App Taken :: App Rec Submitted :: Decisioned

15

20

25

App Rec :: Processing Decisioned :: Cleared for Docs

30

35

40

45

50

Processing :: Submitted Cleared for Docs :: Funded

Top 10 Fastest Branches 8825 Bethesda- Potomac

3501 Cedar City

8708 Atwater

8964 Boynton Beach

7210 Ticket Mortgage

8827 Lake Ridge

8750 Padre

8735 Colorado Springs

8995 SE - The Cruz Team

8891 Lee Group Loans

Preferred Title and Settlement Provider AFN’s Affiliated Company

Experienced team to help with: • •

•

Closing in multiple languages Ability to eClose/RON (remote online notary) where acceptable Use of Notaries familiar with RM and Trust Signatures

Assist with: •

Refinance & Purchase

•

Reverse Mortgages

•

Construction & Renovations

•

Investor- Fix and Flip, single or multiple properties

•

Bulk Transactions – Multi-State/Single State, small to medium sized portfolios

•

Non-US Owner/Foreign transaction

•

LLC’s and Trusts

Automation -

-

Direct integration from Encompass to Apex’ processing software

-

Actions • •

• Current mortgage statement

Opt-in •

Automatically opens title based on a trigger

• Hazard insurance policy • Initial 1003

• Disclosures sent or received options

• Final 1003

• Loan purpose options • State covered by Apex

Pulls all necessary fields from the file Grabs documents for the eFolder and transmits Borrower’s Cert & Auth

•

• Summary Sheet Saves data and documents in Apex software and triggers processing

Button on Processing Screen

Coverage Area for Title and Settlement Services

Sales@ApexClose.com

AFN Initiatives

Conversion Leads

Referrals

Recruits

AFN’s New CRM

AFN’s New CRM Emails

Human Resources

HR Agenda Everyone benefits when we function as a team,

Stay Informed≠

especially one that is well informed and supported. Our goal today is to bring you up to speed on upcoming changes as well as help you better understand the resources available to you and your employees through your Human Resources department.

•••• HR Updates •••• AFN Growth •••• Benefits •••• Health & Wellness •••• Social Responsibility

What’s New In AFN HR? Live Orientations & Assigned Learning While we have always strived to keep our team members connected, as the workplace becomes increasingly remote, we feel now more than ever that face-toface onboarding is integral our onboarding process.

Coming Soon: Command Center Bots Questions and unsure of who to go to for help? Need quick guidance or links?

Perhaps you are curious about internal positions and career path planning? Our new Command Center Bots will soon be able to provide rapid responses to your questions with the click of a button.

The First Impression AFN Onboarding You've got a branch to run, let us handle the rest!

Each month all new and returning employees are invited to live orientation where we go over such key topics as: • Benefits Review: What's available to you and your employees?

• Paycom Review: Enhance employee comprehension, streamline the onboarding process for managers.

• Wellness & CSR: Engage new hires to promote culture and connection.

• Helpful Contacts: More resources for your employees= fewer questions for you!

Anyone unable to attend is assigned an orientation video to ensure all team members are well informed and connected.

HR Questions

Coming Soon: Command Center Bots All of your most frequently asked

• • • •

401(k) Distributions & Loans Benefit & Employee Assistance Paycom Onboarding

Wellness Questions • Challenge & Class Information

questions conveniently answered in one central place.

Career Center S TA Y T U N E D F O R M O R E I N F O R M AT I O N

• View Open Positions • Career Path Planning

Development • Training Programs

Our Family Quick Facts

Female

48%

• AFN’s female leaders are on

Male

60%

52%

the rise! Within the last five

78%

40%

years our female leadership

22%

has grown by 22% • Average age of the AFN team member is 44 years old

Female Male

Employees

Executive Team

48% 52%

40% 60%

Branch, Regional, & Divisional Management 22% 78%

Yearly Timeline 2017

2019

2022 2021

1,601 Employees Nationwide

1,611 Employees Nationwide

2,172 Employees Nationwide

2,053 Employees Nationwide

773 Loan Officers

762 Loan Officers

1,156 Loan Officers

1,049 Loan Officers

Benefits • Understanding ELAP & Reference Based Pricing • Monthly Broker Sessions

Monthly HR Employee Meetings

Live Onboarding Meetings

401(k) Broker Session

Healthcare Broker Meetings

New hires and returning employees

Have questions regarding your

Take advantage of the live broker

are required to attend this online

401(k)? Attend the online monthly

meetings geared to help employees

meeting where we discuss important

401(k) meeting hosted by Equitable

navigate and successfully utilize

Human Resource items such as

and have your questions answered

Trustmark to get the most of their

Benefits, Wellness, CSR, Paycom and

by leading industry professionals.

coverage.

address any questions.

F O R M O R E I N F O R M AT I O N , P L E A S E

F O R M O R E I N F O R M AT I O N , V I S I T

F O R M O R E I N F O R M AT I O N , V I S I T T H E

REACH OUT TO YOUR HUMAN

E Q U I TA B L E . C O M O R V I E W Y O U R A F N

AFN BENEFITS WEBSITE FOR EAP

RESOURCES TEAM.

BENEFIT & WELLNESS EMAILS.

I N F O R M AT I O N O R W E L L N E S S C L A S S E S .

Reference Based Pricing The Future of Healthcare RBP is specifically designed to reduce the cost and care at inpatient facilities. RBP enables AFN to help reduce the plans spending on inpatient care, which in turn helps reduce benefit plan costs for both branches and employees. This plan also allows you the flexibility to choose your own healthcare provider.

AFN Employee Example: Hospital Charge for MRI: $20,000 Trustmark Settlement Price: $1,500 Savings: $18,500

Understanding Understanding the Switch the Switch

According to the American Enterprise Institute, the cost of hospital services has increased by more than 200% in the last 20 years. Because they have a monopoly in many markets, most hospitals can effectively name their price, which results in billable fees that are often as much as seven times what Medicare pays for the same services.

AFN Health & Wellness

Are you taking full advantage of your employee benefits?

AFN Wellness offers free monthly classes and challenges on a variety of topics to prioritize you and your employees physical, emotional, financial and mental health.

Importance of Health & Wellness Employee Wellness Our employee wellness program is dedicated to offering employees a chance to reset & recharge as well as promote healthy work-life- balance.

Top 4 Issues Affecting Mental Health Across the US (2021-2022) 1. COVID-19 2. Work-Related Stress 3. Economic Uncertainty 4. Family & Relationship Issues

Top 4 AFN Employee Claims 1. Mental Health Services 2. Cancer 3. Hypertension 4. Musculoskeletal Disorders 5. Diabetes

U.S. Employees who said they would stay at a job because it offers robust mental health benefits Employee Age Ages 25-34 Ages 35-44 Ages 55-64 Ages 65+

Employee Mental Health Ages 45-54

According to a 2022 Sate of Workforce Mental Health report, nearly 31% of workers surveyed

45% 67%

said their mental health has declined over the past year-up from 24% at the end of 2020.

40%

31%

Prioritizing Workplace Health & Wellness Younger generations of employees face

52%

68%

more mental health struggles and are more likely to stay with employers that offer robust mental health support.

Monthly Challenge

Monthly Classes

Yearly Challenge Our 2021-2022 Challenge

Challenge focusing on a new

Monthly Wellness Wednesday

health & wellness

classes that focusing on a

achievement each month

variety of topics and are

(Fitness, Mental Health, Work-

hosted online and on-site in

Life Balance, Health).

our corporate office.

asked employees to participate in any (4) challenges and attend any (8) classes of their choice to be included in a raffle where one lucky employee will win $500.

Monthly drawing of three $50

Miss a class? View recorded

gift cards.

class material online.

Join us in 2023 for this exciting challenge again with more ways to win!

Getting Your Branch Involved

Keep employees engaged, connected and supported this this free company wide program. Follow along each month, watch recorded sessions on our AFN Benefits website, or view upcoming wellness activities in the Branch Manager Resource Folder.

Monthly Challenge

Monthly Classes

Make it an office

Set time aside to watch

challenge and encourage

these as a team and

your employees to

encourage your

participate!

employees to attend.

Help avoid employee

Yearly Challenge Provide an incentive for your employees to join the challenge or encourage their participation.

burnout and let them know it’s okay to take a break for their

Prize Raffles Participate to join the

health and wellbeing.

Team Building Wellness challenges

raffle drawing or host

Wellness Topics

your own for employees

Have a topic you would

opportunities, make it

who join challenges.

like to see? Let us know

your own!

by emailing wellness@afncorp.com

are team building

AFN CSR

Grow your presence in your community, bond with your team, and promote a culture of inclusion and connection.

Why CSR Matters Purpose 50% of millennials say they would take a pay cut to find work that matches their values -The Deloitte Millennial Survey

Employee Engagement Employees who have a chance to give to charities through their workplace are happier than those who do not.- Harvard Business School

Customers & Marketing 71% of US millennials hope companies will take the lead on the social issues they find important. - Cone Communications CSR Study

Kit Building

Internships

Supply Building

Community Presence & Marketing

Have the desire to give back but unsure

Interested in hosting an internship program

what to donate? Try kit building! Kit

through United Way? Take the stress out of

building includes purchasing specific items

planning and reach out to Kristin@afncorp.com

Internships

Kit Building

requested from your selected charities and building kits. Common themes include: • Hygiene supplies

Donation Drives

Community Presence

center you would like to get involved with? Are you interested in hosting a donation drive for school supplies, clothing or children’s toys? Contact Kristin@afncorp.com

• Meal kits

Team Bonding

Give Back Do you have a charity or community

• School supplies

Donation Drives

Te a m B o n d i n g

United Team Whether it’s a beach clean up, sending supplies to a children’s hospital, or hosting a donation driveall CSR events are opportunities to bond with your team and your community!

User Experience

Employees

Referral Partners

Borrowers

When?

Available

TODAY!

-

-

-

-

Phased rollout to branches DBA’s will be available for branding in SNAP Agent and SNAP Borrower soon All past clients with any real estate agent will be populated in SNAP for them Customization for turning off features, like rate options, coming soon

Features Coming Soon!

2022

Strategy, Sales & Recrutiing

President’s Club Qualifications Loan Officers

B ra n c h M a n a g e r s

Division Manager

Limiting factor:

Limiting factor: of positive

Experience.com scores at

branch cumulative and YTD

year

or above 4.9 average

PNL

OR

• Retail: Top 10 Loan

• Retail: Top 5 Branches

• Over $600 Million per

• 1 most profitable YTD

Officers by Volume

by Units and Volume

(must be individual, not

• Referral Desk excluded.

teams)

recruited branches,

• Do not include

closed branches, etc.-

duplicates.

straight front end PNL

• Retail: Top 10 by Units (must be individual, not teams)

• Referral Desk excluded.

• Do not include duplicates.

• No exclusions for

combination

Ops Personnel • Top 2 Underwriters by Score Card • Top 2 Processors by Score Card • Top 2 Closers by Score Card • Top 2 Discretionary for other departments

2021 President’s Club Winners Loan Officers

Branch Managers

Daniel Alvarez Sean Tate Alex Ascencio Joshua Ulmer Neil Anders Jacob Emmel Michael Vetri Sr Gary Miller Ruchika Sindhu Digiovanni Hector Estrada Sue Albritton Areli Arteaga Jennifer Jurs Joe Stefani Gregory Godin Travis Bredeson Joseph Lose Kevin McRae Shana Enriquez Matthew Shtatman

Sean Tate (Consumer Direct) Saeed Atef (Traditional Retail) Wilson Enriquez (Traditional Retail)

Division Managers John D’Onofrio / Matthew Schultz (Northeast Division)

Daniel Munoz / Jacob Emmel (Traditional Retail) Alex Ascencio (Traditional Retail) Robert Ziebart / Frederic Reichardt (Traditional Retail) Michael Brigagliano (Consumer Direct) Cynthia Ubrano / Jennifer Jurs (Traditional Retail) Joseph Lose / John Bruno (Consumer Direct) Sam Rumi (Consumer Direct) Matthew Campbell (Consumer Direct)

Eric Winblad (Winblad Division) Michael Matalka (Midwest Division) Regional Managers Brian Eller Ryan Sloper Chris Uldricks Operations Team Members April Hong Nasim Tourigny Stephanie Esparza

Top Operations Personnel by Scorecard Top Processors

Top Underwriters

Top Docs/Closing Funding

Rank

Processor

Rank

Processor

Rank

Processor

1

Kimberly Lindauer

1

Sharef Ali

1

Terry Rodriguez

2

Amy Hart

2

Lakeisha Renee Brazton

2

Jamie Ingram

2022 Top 5 Loan Officers Samuel Ary 4.98

Tim Prindle 4.96

Joshua Ulmer 4.96

Brett Labadie 4.96

Jacob Emmel 4.94

2022 Top 5 Branches by Volume & Profit YTD #1 Plano

#2 West Palm Beach

#4 Scottsdale

#3 LendFriend TX

#5 LendPro CA

Sales Comparison 2018

2022

Branches

141

276

Regions

25

41

Divisions

13

19

Sales Average Units

by Branch

Sales Average Units

by LO

Retail Loans Closed

Retail Loans Closed

(Monthly and Annually)

(Monthly and Annually)

How Do We Improve?

We have to get Back to the Basics.

We have to WORK as a TEAM.

WE HAVE TO WANT To Win.

Recently Released Loan Programs Bank Statements 12mo & 24mo

Medical Professional

Jumbo AUS

DSCR Debt to service Coverage Ratio

1099 Only & Profit & loss

Lock & Shop

Foreign National

ITIN

2-1 & 1-0 Buydowns

Looking Forward

New NonQM Outlets

Puerto Rico Outlets

Priority Commercial Outlet

LLC Fundings

HELOC

Accountability Program With Tony Casillas 1

2

3

Will you hold your team accountable?

Centers of Influence • Find 1 COI Introduction each day • Sales Tasks Broken Down to business days, hours, seconds per month • Find 1 prospect opportunity per day Be Consistent (3 years -2700 referral sources) •

Will you share resources?

•

Consolidate teams, operations, branches to WIN

Will you recruit/reach out to 1 LO per day?

TRAINING Further Education with CMA, additional online training through HR, and more.

Certified Mortgage Advisor AFN VIP Discounted Pricing - 45% OFF PROMO CODE: AFN

Become THE resource for your referral partners, customers and community.

• Personal Wealth Creation • Understanding Bonds • Technical Analysis • Interpreting Reports • And more!

www.afncenter.com/cma

We must WANT to WIN! Ignore the Noise!

During a recession, it isn't enough for a business to have the best product or service.

It's business critical to have: 1. Compelling marketing (iConnect Update) 2. Raving fan clients (Google AFN on Experience.com) 3. A business map to innovate (We see it today) 4. Healthy Company Culture (Stay close to your AFN Family) 5. Commit to the Basics (1-2-3)

Let Success Be our Noise!

Legal

Legal Department Overview 1

Legal Department Assists Branches with: • • • •

2

Licensing Team Assists Branches with: • •

3

Leases Vendor Contracts Employment Law Questions Overall Legal Support

Licensing Questions Functions including Sponsorship, Additional Licenses Branch Licensure, etc.

Compliance Team Assists Branches with: • •

Transaction-Specific Questions Policy Guidance

Regulatory Audits AFN has been examined by 15 state regulators over the past 12 months

All our audits over the last year (and well beyond) have resulted in ZERO material findings.

This is a testament to AFN’s compliance program – including AFN’s 100% compliance review of all active files.

TCPA Litigation -

-

-

TCPA covers telemarketing calls, auto-dialed calls, prerecorded calls, text messages and unsolicited faxes.

Text Messages and automated marketing calls: express written consent must be obtained from a consumer prior to engaging in any text messaging or automated marketing campaigns. This consent cannot be given during a call or via text.

To avoid legal issues, branches should contact marketing prior to engaging in any telemarketing campaigns

Marketing

When it comes to Social Media Marketing…

You’ve asked us for this for years!

#DOITFORME

Introducing…

Social Coach Set it & forget it!

Marketing can automate content right onto your feeds!

Tested Content That drives engagement.

With no action from you!

Power Users Curate, create & build using robust tools.

Track stats & see real-time ROI Get all the metrics in on place!

Edit the posts to fit your voice!

Post to multiple platforms at once.

1,000

25 782

2,543 2

Custom hashtags For local SEO strength No cost to you For 1 full year!

Thank you!