Servion Mortgage Newsletter - March 2022

MARCH 2022

In This Issue Partner Updates Completion of New Form Required for Retail Loans Servion Earns 2022 Top Workplaces USA Award Ask the Underwriter Correspondent Q&A The Buzz: Recent Feedback

PARTNER UPDATES

Winter didn’t put a freeze on the housing market, and several financial institutions sought out Servion Mortgage to help them handle the heat. We were excited to welcome our newest partners and to see so many existing partners expanding their relationships with us in January and February!

New Retail Lending Partner Liberty National Bank - Lawton, OK * Also utilizing correspondent channel Northern Kentucky Federal Credit Union - Highland Heights, KY

New Correspondent Partner Northern Hills Federal Credit Union - Sturgis, SD * Also utilizing retail channel Rio Grande Credit Union - Albuquerque, NM

Relationship Expansions Community Resource Credit Union – Baytown, TX • Now using wholesale FHA/VA services Fulda Area Credit Union – Fulda, MN • Added USDA correspondent sponsored agent services Ideal Credit Union – St. Paul, MN • Expanded into Wholesale channel Northwoods Credit Union – Cloquet, MN • Added USDA correspondent sponsored agent services OnTap Credit Union – Golden, CO • Added FHA/VA and Wholesale services Spire Credit Union – Falcon Heights, MN • Expanded into Wholesale channel Weokie Federal Credit Union – Oklahoma City, OK • Added FHA/VA services in Correspondent, Delegated and Wholesale channels LEARN ABOUT OUR PRODUCTS & PARTNERSHIP OPPORTUNITIES

Completion of New Form Required for Retail Loans We are committed to keeping you updated and informed regarding any changes to the way you submit loan applications to Servion Mortgage. In keeping with that commitment, we want to make sure you know about a new requirement for loans submitted in the retail channel.

What Is the Change?

As of March 1, 2022, all applications submitted through the retail channel must include a completed form called HLE Task Sheet. The HLE Task Sheet must be filled out and uploaded to the file prior to the “clear to close” being issued.

Why Is this New Form Required?

During a yearly policy review with our legal team, it was determined that an additional layer of RESPA protection for both Servion Mortgage and our retail partners was needed.

Adding the HLE Task Sheet to the file will help confirm that you and/or Servion Mortgage have completed all the steps necessary to ensure that the borrower understands their financing options, has provided and received all information necessary throughout the process, and is ultimately prepared for a successful closing.

Think of it as a double-check that everything has been done properly so everyone involved – your institution, Servion, and the borrower – all have appropriate knowledge and protection.

How Was the Task List Compiled?

There are 12 tasks listed on the HLE Task Sheet. You need only complete six of them. Of the 12 tasks listed, six of them mirror the requirements set forth in the retail partnership contract governing the relationship between Servion Mortgage and your financial institution.

Six other tasks were added to the HLE Task Sheet because we understand that every file is different and you may be able to complete certain tasks for one file but not another. The additional task options allow you some flexibility to choose which six tasks you complete.

What If I Do Not Complete the HLE Task Sheet?

The loan will proceed to closing even if a completed HLE Task Sheet is not included in the file. Please check to ensure you’ve uploaded the HLE Task Sheet prior to clear-to-close or else Servion will not be able to extend fee payment for that file.

Where Can I Find The HLE Task Sheet?

A fillable PDF of the HLE Task Sheet is available here: https://www.myservion.com/documents/Mortgage/HLETask-Sheet-Fillable.pdf You will also be provided this same link to the HLE Task Sheet every time one of your loans is assigned to a Servion loan officer

Contact Us with Any Questions We look forward to working with you to successfully incorporate the HLE Task Sheet into the loan process. If you have questions or concerns, you may contact your account executive or Ariel Jacobsen, our retail account manager. Ariel can be reached at 651-746-6406 or ajacobsen@myservion.com.

SERVION EARNS

2022

TOP WORKPLACE AWARD

We are thrilled to share that The Servion Group is one of the Top Workplaces in the USA! Top Workplaces is administered

by Energage, an independent employee engagement and retention company. The award is given purely on the basis of the results of employee surveys that measure employees’ opinions on engagement, organizational health and satisfaction.

“

THE BOTTOM LINE

The companies recognized as Top Workplaces have high performance, people-first cultures. These companies are successful because they put their people at the center of all they do. By prioritizing the employee experience, they are known to outproduce, out-innovate, and out-deliver the competition.”

- GREG BARNETT, PH.D. CHIEF PEOPLE SCIENTIST AT ENERGAGE.

We think that you - our partners - are a huge reason why our employees love their jobs so much and were happy to say so on the survey. Helping you and your members/borrowers accomplish goals is meaningful and rewarding, which keeps our employees engaged and even excited about getting to work every day.

It’s the relationship-building that makes a difference – we hope you feel it on your end, and we certainly feel it on our end.

This Top Workplaces USA Award follows on the heels of our Top 175 Minnesota Workplaces award in the summer of 2021.

Thank you for being amazing to work with, and for helping our employees look forward to coming to work every day.

ABOUT TOP WORKPLACES USA More than 42,000 companies were invited to compete for the 2022 national awards. On average, fewer than 3 percent of eligible organizations earn a Top Workplaces designation.

A complete list of the 2022 Top Workplaces USA winners can be found on the Top Workplaces website. Servion is in the 150-499 employee category.

Ask the Underwriter is our forum for answering common or recent partner questions. In this month’s edition we’re tackling two questions that have been asked by multiple partners over the last few weeks.

My borrower has a 7-month job gap. What are the requirements for this person to obtain a mortgage loan?

For job gaps of six months or longer, Servion will require a written letter of explanation from the borrower; the letter must explain the circumstances surrounding the job gap. Additionally, following a job gap of six months or longer, we require the borrower to hold another job for at least six months to prove they have stable and consistent income.

My borrower wants to use funds from their Venmo or other cryptocurrency account. Is that allowed?

Yes, funds from a cryptocurrency account (or Venmo) are acceptable; however, they must first be pulled from the account and deposited into a traditional checking or savings account. Then, document the large deposit of the funds with a statement from the cryptocurrency or Venmo account showing the borrower’s name and the withdrawal of the funds.

If you have questions you’d like our underwriters to answer in a future issue, please send an email to underwriting@myservion.com. Thanks for reading!

MILITARY DISCOUNT 2

Servion Title salutes our troops with an exclusive discount as a thank you for their service and dedication! We welcome all Active Duty members, Reserves, Veterans and Retirees including their immediate family members.

CORRESPONDENT

Q&A This month, our team of correspondent account managers wanted to answer a few questions that have been asked by multiple partners in recent weeks. We hope you find this Q&A useful if you’re a correspondent partner!

TOPIC: FHA CASE NUMBERS Question: I believe the current FHA case number is expiring soon. I’m not sure how to make sure it is still active and not expired. How does this work?

Answer: FHA case numbers automatically expire and get cancelled after six months if one of the following is not performed as a last action:

Answer: If a file is cleared to close and the loan amount is decreased, the partner does not need to provide a change of circumstances. They also do not need an updated clear-to-close.

However, if the loan amount were to increase, then we would need a change of circumstances and an updated clear to close. Updating an already existing clearto-close does not follow our normal 1 business day turn time, it can take longer.

TOPIC: WAIVING MI Question: I see there is a new Portfolio Agreement that allows us to mark if mortgage insurance is being waived. In what scenario does Fannie Mae let us waive mortgage insurance on a loan with LTV greater than 80%?

Answer: Fannie Mae will not purchase a loan that waives mortgage insurance on a loan with LTV greater than 80%. The only time mortgage insurance can be waived, is when it is a non-saleable portfolio and the lender chooses to waive it for whatever reason they deem fit.

• Appraisal information entered • Firm Commitment issued by FHA • Insurance application received and subsequent updates • Notice of Return or resubmissions

TOPIC: UPDATED CLEAR-TO-CLOSE Question: This file is cleared to close, but we need to decrease the loan amount. Do we need a change of circumstances and how long until we can get an updated clear-to-close?

Questions for the correspondent team?

If you are a correspondent partner and have any questions at all, feel free to contact your account executive or send an email to correspondentteam@myservion.com.

COMMERCIAL LENDING. Simplified.

Ready to grow your lending portfolio?

Few things help a financial institution grow better than commercial lending.

The Answer: The Question:

How do you overcome costs like infrastructure and talent and make your commercial lending program successful?

By taking advantage of Servion’s full suite of Commercial Loan Resources.

Full Portfolio Servicing ALLL Development Loan Policy Review and Development Risk Rating Assessment MBL Portfolio Auditing Tailored Portfolio Servicing Documentation Services A La Carte Services

Grow your credit union or community bank.

Serve your local business community. A true win-win. Visit myservion.com/CLR or contact our dedicated CLR account executive, Brian Mielke, at bmielke@myservion.com.

Thanks for all your help and making the process so easy!

Before I even had a chance to ask my member what she thought of the whole process I had a message from her about how great everything went with Servion.

THE

BUZZ

Hear what our partners are saying about us!

It was a pleasure having you and your staff working with us!

THANK YOU for treating this member as your own and taking such great care of him!

SERVICE. SOLUTIONS. SUCCESS. 651-631-3111 • myservion.com Servion Mortgage is a DBA of Servion, Inc. NMLS #1037. Equal Housing Lender.