Peoples Bank recruiting presentation v3

Mortgage Banking Banking Unusual with the Real Estate Community

By Eric L. Frazier, MBA

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Table of Contents Introduction of Eric L. Frazier, MBA Company overview Leadership & Management Product and Programs Mortgage Banker Career Opportunity Appendix

• Eric L. Frazier, MBA Branch Manager Welcome to Peoples, Banking Unusual Banking, Mortgages, Customer Service

Headquarters 4831 W. 6th Street Lawrence, KS 66049 Website: http://www.BankingUnusual.com

• Introduction: • Eric L. Frazier, MBA Branch Manager – Administrative office: Orange County, CA – Started with Peoples Bank July 1, 2013 – Report to Tony Latos, CA Division Manager

• 31 years of experience in Mortgage Banking, underwriting & operations – BS in Business Administration and Management with University of Redlands.

– MBA in Finance with University of Redlands, CA

• President of the Orange County Realtist NAREB and member of many real estate associations see www.ericfrazier.com.

• President and founder of the Power Is Now Online Radio.

• My role is to establish Mortgage Branch Satellites through the US with Mortgage Bankers that specialize in purchase real estate transactions.

Company Overview

• Company overview:

• Peoples Bank was founded 1871 as a community bank and has approx. 575 employees.

• The bank is privately held by the Winter family and today is lead by Wint Winter Jr. CEO.

• Company Overview:

• In 1974, the seeds for a totally new concept in banking were planted. • The vision of the Winter Family is to provide you, our valued Guest, a full range of quality financial services including banking, mortgage, and insurance. And, unlike other "business-asusual institutions," have a little fun in the process.

Company overview: Bank Locations Kansas • • • • • • • • •

Lawrence Iowa Lawrence / Wakarusa Lawrence / Harper Louisburg Ottawa Main Ottawa South Southcreek Stanley Stilwell

New Mexico • • • • • • •

Albuquerque Uptown Albuquerque Journal Center Questa Supermarket Red River Taos Main Taos Plaza Taos Albertsons

Company overview: Home Loan Center Locations New Mexico Kansas California • • • •

San Jose San Mateo Daly City Mission Viejo

• Albuquerque • Taos

• Lawrence • Overland Park • Salina • Kansas City • Lee's Summit

People Home Lending • Carmel, IN • Louisville, KY • Columbus, OH • Costa Mesa, CA • Roseville, CA • Scottsdale, AZ

• Company overview: • "Banking Unusual" at Peoples is based on our promise to take care of each Guest like family. We call it "the Grandma test." It's a commitment to provide you Financial Happiness.

• Peoples is still committed to local decision making within each of your communities. "We get the right people in the right place and then stay out of their way," our Chairman says. It's a formula that works.

Senior Leadership and management

• The leading the banking enterprise: – Wint Winter, Jr. CEO – Ruth Stevenson, President – Jim Lind, Mortgage Banking SVP – Tony Latos CA Division Manager – Eric L. Frazier, MBA, Branch Manager

Products, Programs Pricing

• Product and Programs • Conventional – Home Path – 3% down payment – Renovation

• Government – FHA – VA and VA Platinum Program – DPA with most counties.

• Foreign National – No credit score or No SS number required

• Interest only coming soon

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Conventional Conforming – Conventional High balance

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FHA – High balance – Conforming

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VA – High balance – Conforming

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Home Path – High balance – Conforming

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Jumbo

• The Loan Process: Watch the Video https://www.bankingunusual.com/mortgage/our-unusually-easy-loan-process/

Mortgage Banker Compensation, LOA and marketing expenses

Mortgage Banker Comp • Full time employee of the bank – Cannot have any other employment.

• 3 months recoverable draw of $2500 per month and then recoverable draw of $8.00 dollars per hour.

• Full Health benefits with vision and dental • Laptop, VOIP phone and print scanner is provided to every PMB.

Mortgage Banker Comp • There are 2 tiers. Each MB chooses a flat commission plan for all business except brokered loans: • Commission structure: • Silver Plan: • Platinum Plan: – Tier 1: 100 bps – Tier 1 – 150 bps – Tier 2 – 125 bps

• Gold Plan: – Tier 1: 125 bps – Tier 2: 100 bps

– Tier 2: 75 bps

• Bronze Plan: – Tier 1: 75 bps – Tier 2: 50 bps

Brokered out loans: 60 bps Maximum Commission Payout: $6,000.00

Mortgage Banker Comp Plan • The MB can choose any plan and is able to change the plan quarterly.

• Tier 1 and 2 status will be determined by the MBs manager at the time the plan is chosen and may be adjusted monthly based on performance.

• Expectation of Tier 1 performance: – Loan Quality meets or exceeds managements expectations – Compliance with lock policy and pipeline pull through rates meeting expectations – Collection of origination fee related to appraisal , credit reports, and other required fees by the loan program. Fees may not be waived with approval by management.

– Loan file quality and the collection of documents to fulfill operations and investor requirements.

– Superior overall work performance.

Mortgage Banker • Assistant Expense – MBs commission will be reduced by the amount of Loan assistant compensation plus an agreed upon assistant overhead expenses.

– LOA assistants bonus can range from 10 to 25 basis points.

– LOA assistant base salary can range from 2,000 to 2,500 per month.

• Marketing Expense – Commissions will be reduced by the amount of agreed upon marketing expense reimbursable to the bank – Marketing budget for the real estate office will be 5 bps of the MB total volume.

– Projected volume per month 1.5 million.

Appendix Underwriting Flexibility

Underwriting Flexibility • Effective Date: February 4, 2013 • Other Sources of Income – Documentation and Verification requirements: • Conventional: requires 6 months of receipt.

FHA/VA: requires 12 months of receipt.

– Alimony – current spousal support order with minimum 3 years continuance – Child Support – current child support order and birth certificate to evidence minimum 3 years continuance.

Underwriting Flexibility • Effective Date: February 4, 2013 • Other Sources of Income – Documentation and Verification requirements: • All Loan Products: requires 2 months of current receipt – Annuity – guest must be minimum 59 ½ years old, award letter and minimum 3 years continuance (based on 70% of asset balance) – IRA - guest must be minimum 59 ½ years old, award letter and minimum 3 years continuance (based on 70% of asset balance), no proof of receipt needed

Underwriting Flexibility • Effective Date: February 4, 2013 • Other Sources of Income – Documentation and Verification requirements: • All Loan Products: requires 2 months of current receipt • Pension - guest must be minimum 59 ½ years old, award letter and minimum 3 years continuance – Social Security (retirement) – award letter, non-taxable portion can be grossed up (look at tax return to determine the amount) – Social Security (disability) – award letter – Unemployment – 2 year history required, must be from seasonal line of work

Underwriting Flexibility • Effective Date: February 4, 2013 • Other Sources of Income – Documentation and Verification requirements: • Additional Helpful Hints: • Schedule C – 1099’s for this income are not required unless it’s a new tax year and they haven’t yet filed for previous year • Corporation (1120) – use LP to run this type of income; if there is a loss on the corporate tax returns, that must be deducted from the income calculation

Mortgage Banking Banking Unusual with the Real Estate Community