Docstoc

Steps To A Smooth Closing

Document Sample
Steps To A Smooth Closing Powered By Docstoc
					                                                                                                                    1




                                Steps To A Smooth Closing
The following steps, when followed will insure you and your borrowers have a pleasant experience in the
lending process. With 15 different people involved in the lending process, it is easy to have situations that may
change this scenario.

However, this is the basis for beginning all loans.

Step 1: Call comes in or you receive a referral.

Step 2: You contact/speak to the borrower, go over the list of “Important Questions for Borrowers”
        in conversational tone. This is to gather information to run a credit report. Compute DTI
        (Debt-To-Income), based on verbal information received, use the Qualification Worksheet to do so.

Step 3: Prior to meeting, you could have your borrower complete an on-line application
        at www.texassupreme.com. Contact Theresa to let her know your borrower’s
        name, she will import information from website to Calyx point file and e-mail to
        you. This will speed up your loan app by printing 1003 out of Calyx and
        highlighting what still needs to be completed.

Step 4: Prior to meeting the borrower, you’ll run a credit report to determine viability.
        You should also complete a Calyx GFE and TIL if the details are known.
        If the details are not known, simply complete the GFE by hand with the borrower
        and the TIL later, but within three days of application signing. If you are not sure of how to complete a
        GFE, contact Lonnie or Theresa for additional help.

Step 5: After analyzing credit, DTI, etc. you’ll set an appointment. Be sure to email
        “Items Required for a Loan Application” to your borrower and ask them to gather
         this information. This information is tremendously important and MUST be received at your
         appointment.
         You’ll also need to e-mail them directions to your meeting location.

Step 6: When meeting with the borrower, complete the entire TSMI packet. You’ll fill out the application
        (1003), GFE, and all the disclosures. You’ll then have your borrower sign and date them accordingly.
        Collect all the Source Documents. Complete Qualification Worksheet. Go over problem areas of the
        loan, and discuss any obstacles you’ll need to overcome. You may also collect appraisal monies at
        this time. Lastly, you’ll explain the mortgage process to your borrower.

       Let them know what all is involved in the mortgage process (application-processing-underwriting-
       closing-funding) and explain to them that this process will take 3-4 weeks and that they will not be
       hearing from you everyday, but that you will contact them from time to time to give them the highlights.

       Also, introduce your processor’s name (if known) and let them know the processor may be calling them
       from time to time to request any additional documentation that may be needed.

       One area that most LO’s are weak in is “Contract Reading”. When you or your processor receives a
       contract from the borrowers at application or later from the Realtor, be sure to read the contract, looking
       for areas that may affect us. Areas that may affect the lending process are: Interest Rate on the Third
       Party Financing Addendum, Closing Costs paid for borrower by seller, Owner’s Title Policy fees-Who
       Pays?, Closing date, and other items that may be in Special Provisions that would affect us such as
       repair items. Although this is not an all inclusive list, this is a helpful start and will insure that you
       appear professional in your work by asking the right questions.

Step 7: Go home and get out your matrix! Start looking into all the loan programs that may be suitable for your
        customer. LO is to shop for 2-3 lenders that will approve loan, along with a range of rates. You may
        also contact Lonnie Courts, Product Specialist; (Lonnie@texassupreme.com), to help you structure and
        place your loan. All income, assets and liabilities on the initial application must be supported by source
        documents for obtaining an initial loan approval.
                                                                                                                      2

Step 8: Have our Product Specialist review loan and all docs BEFORE giving the docs to any processor.
        Assuming that all is well with the loan, although this is not an approval, then you’ll choose a processor
        to process your loan. Next, put together your file the best you can to turn into your processor. Include:
        complete TSMI packet, source documents, credit report, lender responses, client’s contact information
        and a note to your processor letting them know any pertinent information, such as what you’re looking
        to do and any information or documentation that you have not received yet.

Step 9: If loan is not ready to go to processing — Go Back Thru Step #6, #7 and #8 again.

Step 10: Once loan is in Processing, LO is to review loan at least weekly with Processor.
         Processor to complete duties such as, title work, Verification’s, Appraisal,
         Survey, etc. (Go to TSMI Disclosures on website to review processor’s duties
         detailed on the GFE Attachment, “Processor’s Duties”)

Step 11: LO to make certain loan is locked properly by Processor. LO to follow up on
         any Processing items which are remaining during course of loan.

Step 12: Complete any underwriting items to obtain a Clear-To-Close from lender.

          Work with your Processor to determine who gets which conditions. Be sure
          your processor completes a Fee Sheet detailing any fees charged and
          proper POC items for Appraisal/Application/etc.

Step 13: Once a Clear-To-Close is obtained, proceed to closing with the lender. Set up, or have Realtor’s set
         closing. Work closely with Processor to get timely documents to the Title Company.

Step 14: Obtain and review a HUD1 BEFORE anyone else in the transaction. These are our numbers; we must
         review and Ok the HUD1 first, before any Realtor or borrower sees the HUD1. Once the HUD1 is
         OK, proceed to closing.

Step 15: Proceed to closing. I recommend attending all closings. Thank everyone for working together to get
         this family a home of their own.

Step 16: Once closed and funded. The Processor to stack the file in TSMI Stacking Order, complete the TSMI
         Settlement Sheet and have file& Title Company check delivered or the LO to bring file and check to
         TSMI for settlement.


SUMMARY: Completing a loan file is NOT a arduous task! If we work well with our processor, borrowers,
Realtor’s and others involved in this transaction with an open line of communication, this loan will sail thru to
closing and funding with a minimum of issues. The VAST majority of problems I hear of are actually
communication issues between the parties involved.

I also suggest that for new LO’s they use two or three different processors to get used to different styles, and to
see who they work best with. Once they determine the best processor for their style, stick with the processor.




                    505 North Sam Houston Parkway East * Suite 110 * Houston, TX 77060
                               Main Office: 281.445.1901 * Fax: 281.445.8805
                                                                                                           3




                             INSTRUCTIONS TO CLIENTS
During the course of this loan many items will come to you by mail or by phone:

Examples are:

       1. TRUTH IN LENDING: Sign form and return to processor

       2. CREDIT REPORT: Review for accuracy and respond to any derogatory items in writing. Explain
          and document these items. Someone from the credit agency may call you directly.

       3. An appraiser may call you to set up appointment to inspect your home, only if you currently live in
          home you are purchasing or refinancing.

       4. As we progress through the loan additional paycheck stubs, bank statements or other information
          may be required. Please keep your processor and Loan officer current on these items.

       5. During the first two weeks of loan processing, contact your insurance agent to issue a quote for
          home insurance. HAVE THEM FAX US A COPY

       6. Once approved the underwriter may have additional questions. They will need to be addressed at
          once.

       7. Once approved a termite inspection may be required (Only on a Purchase)

       8. A cashier’s check payable to the title company will be required at closing.

       9. Please spell the Title Companies name exactly as it appears on your title commitment. Also bring a
          picture ID to closing.


A home loan requires patience and persistence to complete properly and timely. We appreciate both and
promise to complete your transaction in a timely and professional manner.


FINALLY: We promise to serve you faithfully and expect you to refer at least two friends, relatives or co
workers to us during this transaction. Please be on the lookout for these referrals.



VERY INPORTANT NOTE: Please do not make any financial changes without informing your loan officer or
processor BEFORE making the changes. Examples Would Be: Increasing, paying off or transferring debts,
changing employment or switching banks. Finally be sure to continue paying all monthly expenses in a timely
manner.



                                                 Thank You!




                   505 North Sam Houston Parkway East * Suite 110 * Houston, TX 77060
                              Main Office: 281.445.1901 * Fax: 281.445.8805
                                                                                                 4



                 Important Questions To Ask Borrowers!
The following questions, while not all inclusive will give you a head start on whether a phone
call can turn into an application and then into a closing, and finally into a paycheck!

   1. How did you hear about me (or Texas Supreme Mortgage)? Who referred you?
   2. How do you know XXXXXXXXXXX (the referrer)?
   3. What is your name? Let me get your phone number in case we are disconnected.
   4. Have you found a home to purchase, or are you just getting started?
   5. Are you married? What is your spouse’s name?
   6. Do you have children? How old are they?
   7. What type of work do you do? How long have you been doing this work?
   8. Which company do you work for? How long have you been working for them?
   9. What is your base hourly or monthly pay rate? Do you get paid for overtime?
   10. How much overtime would you estimate in the last year?
   11. Do you get any bonuses or commissions?
   12. What does your last two years W-2’s show as total income?
   13. Any part-time jobs? How long have you been working there part-time?
   14. (Get same information on spouse)
   15. How much do you pay in rent or mortgage right now?
   16. Do you pay to an individual or to an apartment complex or management company? If
       currently a tenant, When is the lease up on your apartment?
   17. If currently a home owner, Are you going to sell or lease your current residence?
   18. How are you doing on Savings? Get amount in checking, savings and any retirement
       funds.
   19. Tell me about your outstanding bills, like Credit Cards, Auto Loans, Student Loans., etc.
   20. What is the minimum payment on these bills?
   21. Do you or your spouse have any deductions from your paychecks for payments like
       outstanding loans, child support or whatever?
   22. Any Divorces in the family?
   23. Do you pay or receive any child support?
   24. How much would you feel comfortable paying for your total mortgage payment,
       including all taxes and insurance?
   25. OVERALL, what is your credit like on the credit report? I’ll need your full name, DOB,
       SSN# and current address to run CR. (Same applies for spouse, if applicable.) Inform
       borrower to bring $ for CR to application appt.
   26. In the past 6 months, have you applied for any credit?
   27. Did you get approved?
   28. How soon are you looking to move into a home of your own?
   29. When would you like to come in for an appointment to get your formal application
       started? I have available Friday at 1PM or Monday at 4PM—Which time would be best
       for you?
   30. If we do a good job for you in getting your home loan approved, would you be willing to
       refer others like yourself, just like XXXXXXX did for you?




                505 North Sam Houston Parkway East * Suite 110 * Houston, TX 77060
                           Main Office: 281.445.1901 * Fax: 281.445.8805
                                                                                                                    5




                           QUALIFICATION WORKSHEET


               INCOME                                           NEW MONTHLY HOUSING EXPENSE:
Gross Monthly Income- Borrower:                                 P&I
Co-Borrower                                                     Prop Taxes (3%)
Child Support-documented                                        Hazard Ins (1%)
Real Estate Income-Net                                          HOA
Other Documented Income                                         Mtg Ins (use chart)
                                                                Other (Flood Ins.)
TOTAL INCOME                                                    TOTAL PMT
                                                 (X)                                                   (A)
                                                                    (total pmt / housing ratio = income required)


                                                                LIABILITIES (Monthly Payments)
          ACTUAL RATIOS                                         Revolving
                                                                Installment
     HOUSING PMT/INCOME =                                       Auto 1
              (A)/(X)                                           Auto 2
                                                                Child Support
   TOTAL OBLIGATION/INCOME =                                    Other
              (C)/(X)
                                                                Total LIAB
                                                                                              (B)

                                       TOTAL OBLIGATIONS: ( A ) + ( B ) =
                                                                                              (C)

                                  STATED         RATIO        MATIRX

                  CONV      CONV 97        CHB         GOLD   JUMBO           VA            FHA              "B"
HOUSING            28         28            33          40      33            n/a            29              40
OBLIGATIONS        38         36            38          40      38            41             41              50




                 505 North Sam Houston Parkway East * Suite 110 * Houston, TX 77060
                            Main Office: 281.445.1901 * Fax: 281.445.8805
                                                                                                   6




                 SETTLEMENT CLOSEOUT WORKSHEET
Application Date: ____________________________     Investor:___________________________
TSMI LOAN #:_______________________ _______        Investor Loan #:_____________________
                (Home Office To Assign)
Loan Officer: _______________________________      Investor Phone: _____________________
File Name: Borrower: _________________________     Phone: ____________________________
Co-Borrower:________________________________       Phone: ____________________________
Property Address:____________________________________________________________________
                                                                 City            ST        Zip
Current Home Phone #: _______________________________________________________________
Selling Broker & Agent:_______________________________________________________________
                            (Agency)                (Agent)                    (Ofc. Phone)
Listing Broker & Agent:_______________________________________________________________
                            (Agency)                (Agent)                    (Ofc. Phone

Sales Price: $ _________________________________ Mortgage Amount: $ ___________________
LTV: ______%          Closed Rate: ______%        Fixed Rate/ARM:______      Term: ______Years
Single Family____ Condo____ Townhouse____                Multi Family/Land____ Purchase_______
Owner Occupied/Investor:___________________________ Refi: R&T ___________ C/O _________
Origination: ___________%      Discount/Broker Fee:______________%        Premium: ____________%
Submitted:___________________________          Closed: ______________      Funded:_____________

Settlement:
Origination Fee:      ________________%        $____________________
Premium: From Investor: _____________%         $____________________
Broker Fee Charged: _________________%         $____________________
Net Premium & Broker Fee:                      $____________________
Ancillary Fees Collected at Closing            $____________________

TOTAL FEES TO DISTRIBUTE:                      $____________________
  (Matches Title Company Check)



                               Home Office To Complete This Section!


Originator $_______________________            TSMI Fees: Closing: $ _______________
                                               TSMI Monthly Min: $________________
                                                   (100 X Number Of Months Since Last Closing)

                                               TSMI Other Fees:     $________________

                                               TOTAL TSMI FEES:$________________




                 505 North Sam Houston Parkway East * Suite 110 * Houston, TX 77060
                            Main Office: 281.445.1901 * Fax: 281.445.8805
                                                                                                                                   7




                                              STACKING ORDER
  NOTE: Loan Officer/Processor must complete and sign this stacking order before checks are released to the
    Loan Officer. Make sure that each form is completed as to borrower, property address, any additional
       information requested, signed by all parties, and dated consistently with the application date.

RIGHT SIDE                                                                                 PROCEDURE
   □ 1. Settlement Worksheet                                                     1. Check all that apply
   □ 2. Certified HUD w/Signatures                                               2. Put N/A by any items that do not
   □ 3. Copy of Check from Title Co.                                                apply to this loan.
   □ 4. Final 1008 & Final 1003                                                  3. ACCO fasten all paperwork on
   □ 5. Underwriting Findings From Lender                                           each side, and tape over fasten.
   □ 6. Initial Signed 1003                                                      4. Turn in with all monies from
   □ 7. All Credit Reports                                                          Title Company.
   □ 8. Verifications (VOM, VOD, VOE, VOR)                                       5. Include Latest copy of all Source
   □ 9. Pay Stubs and Bank Statements                                               documents only.
   □ 10. Signed Earnest Money Contract (if applicable)
   □ 11. Title Commitment & Tax Certificates
   □ 12. Survey
   □ 13. Appraisal
   □ 14. Home Owners Insurance
   □ 15. Copy of Drivers License, SS Card, or ID Card

LEFT SIDE DISCLOSURES
   □ 1. Stacking Order
   □ 2. Conversation Log
   □ 3. Credit Score Notice
   □ 4. GFE (Initial) Within 3 days of Application
   □ 5. GFE Attachment, Service Provider Disclosure
   □ 6. TIL (Initial) Within 3 days of Application, and APR must be greater than Note Rate; Must have
         Evidence of Delivery, Follow PFC List.
   □ 7. Mortgage Broker/Loan Officer Disclosure (As Promulgated by State Statues)
   □ 8. Additional Disclosure for Fixed Rate Loans
   □ 9. Borrowers Statement Concerning Military Duty
   □ 10. Borrowers Certification Authorization
   □ 11. Notice To Applicants concerning Social Security Number
   □ 12. Transfer of Loan Servicing Disclosure
   □ 13. Notice of Non-Discrimination to Applicants ECOA
   □ 14. Privacy Policy Notice
   □ 15. Patriot Act Notice
   □ 16. Notice of Misleading Statement
   □ 17. Rate Lock Confirmation
   □ 18. 12 Day Letter on Cash Out Refinance (If Required)
   □ 19. Adjustable Rate Mortgage Disclosure (If Required)
   □ 20. Disclosure of Multiple Roles (If Required)
   □ 21. VA Disclosures (If Required)
   □ 22. Misc. Gift Letters, Use of Funds, Etc.
   □ 23. All Additional information and correspondence you feel may be helpful to TSDL.



    NOTE: By signing this form you are certifying that all items listed are complete, true and correct.


    LOAN OFFICER: _______________________________________ DATE: _______________________

    You may have additional items in your file that are not relevant to the home office file. Highly suggest that you keep a copy of
    package for your records. Home Office files are kept for three years after closing and will be destroyed in January the following
    year.




                       505 North Sam Houston Parkway East * Suite 110 * Houston, TX 77060
                                  Main Office: 281.445.1901 * Fax: 281.445.8805

                                                                                                                  Stacking #1
                                                                                              8




                         CONVERSATION LOG
Borrower(s):__________________________________________
Phone:________________________________________________
Email:________________________________________________
Address:______________________________________________

Date          Who          Via           Comments
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________

           505 North Sam Houston Parkway East * Suite 110 * Houston, TX 77060
                      Main Office: 281.445.1901 * Fax: 281.445.8805



                                                                                Stacking #2
                                                                                                                9


                                  CREDIT SCORE NOTICE
BORROWER NAME(S):                                           LENDER:

_________________________
_________________________                                   505 N. Sam Houston Pkwy.
_________________________                                   Suite 110
_________________________                                   Houston, TX 77060
                                                            281-445-1901

                                                                    Date:____________________________

                      NOTICE TO THE HOME LOAN APPLICANT
        In connection with your application for a home loan, the lender/broker must disclose to you the score
that a consumer reporting agency (also known as the credit bureau) distributed to users and the lender used in
connection with your home loan, and the key factors affecting your credit scores.
        The credit score is a computer generated summary calculated at the time of the request and based on
information that a consumer reporting agency or lender has on file
        The score are based on data about credit history and payment patterns. Credit scores are important
because they are used to assist the lender in determining whether you will obtain a loan. They may also be used
to determine what interest rate you may be offered on the mortgage. Credit scores can change over time,
depending on your conduct, how your credit history and payment patterns change and how credit scoring
technologies change.
        Because the score is based on information in your credit history, it is very important that you review the
credit related information that is being furnished to make sure that it is accurate. Credit records may vary from
one company to another.
        If you have questions about your credit score or the credit information that is furnished to you, contact
the CONSUMER REPORTING AGENCY at the address and telephone number provided with this notice, or
contact the lender/broker, if the lender/broker developed or generated the credit score. The Consumer Reporting
Agency plays no part in the decision to take and action on the loan application and is unable to provide you with
specific reasons for the decision on a loan application. If you have questions concerning the terms of the loan,
contact the lender/broker.

    One or more of the following consumer reporting agencies will provide the credit score:

               Experian              Equifax Credit Information Services Trans Union
               PO Box 2002           PO Box 740241                       PO Box 4000
               Allen, TX 75013       Atlanta, GA 30374                   Chester, PA 19016
               1-888-397-3742        1-800-685-1111                      1-888-887-2673
                              ____________________________________________
                              ____________________________________________
                              ____________________________________________
                              ____________________________________________




       Your acknowledgement below signifies that his written notice was provided to you.
       __________________________________            ________________________________
       Borrower                                      Date
       __________________________________            ________________________________
       Co-Borrower                                   Date




                   505 North Sam Houston Parkway East * Suite 110 * Houston, TX 77060
                              Main Office: 281.445.1901 * Fax: 281.445.8805


                                                                                                Stacking #3
                                                                                                                                                              10




                                             GOOD FAITH ESTIMATE
The information provided below reflects estimates of the charges which you are likely to incur at the settlement of your loan. The fees listed are
estimates -- the actual charges may be more or less. Your transaction may not involve a fee for every item listed. The numbers listed beside the
estimates generally correspond to the numbered lines contained in the HUD - 1 or HUD - 1A settlement statement that you will be receiving at
settlement. The HUD - 1 or HUD - 1A settlement statement will show you the actual cost for items paid at settlement.

                       NOTE: Texas Supreme Mortgage, Inc. WILL earn additional fees of 0 to 5% for Yield Spread Premiums.
 This list gives an estimate of the charges you will have to pay at the settlement of your loan. The figures shown as estimates are subject to change.
               The figures shown are computed based on sales price and proposed mortgage amount as stated on your loan application.

Borrower___________________________________                   Co-Borrower__________________________________
Property Street Address___________________________________________________________________________________
Interest Rate__________ Term ___________              Type of Financing ARM__ Fixed__ VA__ FHA__ Conv__ Other__

MONTHLY HOUSING EXPENSE                                                          ESTIMATE OF CLOSING COSTS
First Mortgage (P&I)         $_____________                                      Loan Origination Fee ___%         $___________
Other Financing (P&I)        $_____________                                      Loan Discount/Broker Fee          $ ___________
Hazard Insurance             $_____________                                      Appraisal                         $ 350
Real Estate Taxes            $_____________                                      Application Fee                   $___________
Mortgage Insurance           $_____________                                      Other Fees                        $___________
Homeowner Assn Dues          $_____________                                      VA Funding Fee/HOA Transfer       $75
Other                        $_____________                                      Settlement Fee                    $300
Total Monthly Pmt            $_____________                                      Document Preparation Fee          $325
DETAILS OF PURCHASE/REFINANCE                                                    Title Insurance (Add 1% for Refi) $175
Purchase Price               $_____________                                      Recording Fees                    $175
Debt Payoff-Refinance        $_____________                                      Survey                            $395
Total Est. Closing Costs     $_____________                                      Inspections                       $___________
Prepaid Est. Escrows         $_____________                                      Processing Fee                    $500
Total                        $_____________                                      Underwriting Fee (Subprime +600)  $350
Amount this Mortgage         $_____________                                      Tax Service Fee                   $150
Other Equity/Financing       $_____________                                      Messenger Fee                     $200
Amount of Cash Deposit       $_____________                                      TOTAL ESTIMATED FEES              $___________
Closing Costs Paid By Seller $_____________                                       ** Seller pays on FHA/VA Loans
Cash Reqd for Closing        $_____________                                      CAUTION: Applicant is cautioned that Lender’s appraisal of the property is
Payment Cushion              $_____________                                      of the property for mortgage purposes (not sales purposes) and does not
Total Assets Required        $_____________                                      include a detailed inspection or certification as to the structural soundness of
                                                                                 the property or of its heating, plumbing, cooling, or electrical systems.
                                                                                 Therefore applicant should not rely on Lender for a determination of the sales
                                                                                 value or conditions of the property

                                                                                 ESTIMATED PREPAIDS
                                                                                 Interest Adjustment 30/15 days est.           $___________
                                                                                 Tax Escrow – 3 Months                         $___________
                                                                                 Hazard Insurance – 14 Months                  $___________
                                                                                 PMI – 2 Months                                $___________
                                                                                 HOA (months remaining)                        $___________
                                                                                 TOTAL EST. PREPAIDS                           $___________
                                                                                 **The interest calculation represents the GREATEST amount of interest you
                                                                                 could be required to pay at settlement. The actual amount will be determined
                                                                                 by which day of the month your settlement is conducted. To determine the
                                                                                 amount you pay multiply the number of days remaining in the month in which
                                                                                 you settle times $____ which is the daily interest charge for your loan.
                                                                                 .
In order for Texas Supreme Mortgage to initiate the processing of your application you must deposit with us a sum of money equal to
the amount indicated on this form as the probable cost of the credit and appraisal reports. If the actual costs for these items are less
than your deposit, the balance will be refunded to you. If the cost for these items are greater than estimated you will be obligated to
reimburse us for the difference. THESE FEES ARE NOT REFUNDABLE unless your application is cancelled before the credit
bureau and or appraiser starts work on the requested report YOU WILL NOT RECEIVE A COPY OF THESE REPORTS. They
are the property of Texas Supreme Mortgage used to determine credit risk and collateral adequacy. If these reports contain information
adversely affecting your application only the substance of that adverse information will be shared with you, not the entire reports.

                      ___ I/We hereby acknowledge receipt of this disclosure and the HUD Guide for Home Buyers.

____________________________________________                                     ______________________________________________
     Borrower                            Date                                         Co-Borrower                         Date

Loan Officer__________________________________                                   Date:________________________________________



                          505 North Sam Houston Parkway East * Suite 110 * Houston, TX 77060
                                     Main Office: 281.445.1901 * Fax: 281.445.8805
                                                                                                                                          Stacking #4
                                                                                                                                   11


                      GOOD FAITH ESTIMATE ATTACHMENT
                                                 Provider Service Disclosure
                                                        (Page 1 of 2)

The following is being furnished by the lender because of a particular provider of service may be required. The estimates set forth on
 the Good Faith Estimate are based on charges by the provider. Where particular providers are named below, the lender has used or
                                    required the use of such providers in the last twelve months.


                                                         APPRAISERS

                 Ed Woodruff & Assoc.                                           Fox & Bubela
                 13700 Veterans Memorial Dr.                                    7600 West Tidwell, Ste.810
                 Suite 105                                                      Houston, TX 77040
                 Houston, TX 77014                                              Off: 713.460.9709
                 Off: 281.440.4881


                                           CREDIT REPORTING AGENCIES

                 Kroll Factual Data                                             SARMA
                 5200 Hahns Peak Drive                                          21175 Tomball Pkwy,
                 Loveland, CO 80538                                             Suite 286
                 Off: 800.929.3400                                              Houston, TX 77070
                 Rep: Diane Snodgrass                                           Off: 800.955.5238
                                                                                Rep: Doug Cadwell

                                                         SURVEYORS

                 Tetra Surveyors                                                Precision Surveyors
                 908 Town & Country Blvd.                                       14925 Memorial Dr. Suite B-100
                 Suite 120                                                      Houston, TX 77079
                 Houston, TX 77024                                              Off: 281.496.1586
                 713.462.6100

                                                         PROCESSING


                                                     Processing Duties
                                       ▪$500 all inclusive flat file fee
                                       ▪No bust out fees
                                       ▪Run DU/LP on file
                                       ▪Order Appraisal, Title, Survey (if needed),
                                        etc.
                                       ▪Order VOE, VOD, VOM, VOR, etc.
                                       ▪Clear all conditions
                                       ▪Work with all parties involved to collect all
                                        necessary items
                                       ▪Request copy of preliminary HUD for final
                                        review
                                       ▪Stack file to turn in to home office
                                       ▪Always keep LO's informed of file's
                                       progress
                                       ±Additional Fee’s May Apply



                                     Please See Next Page For A List Of Processors



                      505 North Sam Houston Parkway East * Suite 110 * Houston, TX 77060
                                 Main Office: 281.445.1901 * Fax: 281.445.8805
                                                                                                                    Stacking #5
                                                                                           12




    GOOD FAITH ESTIMATE ATTACHMENT
                          Provider Service Disclosure
                                 (Page 2 of 2)


Lynette Jackson                                Lucy Palacios (Bilingual)
3M Unlimited Services                          5735 Clerkenwell Drive
505 N. Sam Houston Pkwy. East                  Houston, TX 77084
Suite 110                                      Cell: 832.818.1312
Houston, TX 77060                              Email: lucypalacios@sbcglobal.net
Off: 281.445.1901
Cell: 281.804.2720                             Don Burton
Email: tljackson19@aol.com                     17230 Buffalo Pass Drive
                                               Houston, TX 77095
Tracey Broom                                   Cell: 713.870.3261
Broom Processing                                Home: 281.373.5364
17867 FM 787 West                              Email: don_burton@comcast.net
Cleveland, TX 77327
Off: 281.592.2357                              Sonya Meshell-Scalise
Cell: 281.384.4616                             Simplified Mortgage Processing
Email: broomprocessing1@aol.com                1808 Davon Lane
                                               Houston, TX 77058
Geneva Rosilez                                 Cell: 281.480.7726
5217 Delange Lane                              Email: sonyascalise13@yahoo.com
Houston, TX 77092
Off: 713.688.2082
Email: genevarosilez@yahoo.com

Patricia Villarreal
Elite Processing Center
Cell: 713.259.1068
Email: elitepgv@aol.com




______________________________                  _____________
Borrower                                        Date

______________________________                  _____________
Co-Borrower                                     Date




    505 North Sam Houston Parkway East * Suite 110 * Houston, TX 77060
               Main Office: 281.445.1901 * Fax: 281.445.8805
                                                                             Stacking #5
                                                                                                                              13




TEXAS MORTGAGE BROKER/LOAN OFFICER DISCLOSURE
  PART 1 OF 2

  Mortgage Broker or Loan Officer:

  License Number:

  The information in this disclosure is provided to clarify the nature of our relationship, my duties to you, and how I am to be
  compensated as a Mortgage Broker or Loan Officer. This disclosure is a requirement of the Texas Mortgage Broker License
  Act.

  Since I may be working for a company, references to ''we" or ''us'' refer to me and any company for which I am working.

  Duties and Nature of Relationship
  You, the applicant(s), have applied with us for a residential mortgage loan.

  (X )     We will submit your loan application to a participating lender which we may from time to time contract upon such
           terms as you may request or a lender may require. In connection with this mortgage loan, we are acting as an
           independent contractor and not as your agent. We will enter into separate independent contractor agreements with
           various lenders. While we will seek to assist you in meeting your financial needs, we do not distribute the products
           of all lenders or investors in the market and cannot guarantee the lowest or best terms available in the market.

  ()       In connection with this mortgage loan, we are acting as an independent contractor and not as your agent. We will
           make your loan ourselves. We may either sell the loan to an investor or retain it. (You will receive a separate
           disclosure as to how we will handle servicing rights on any such loan.) We have a number of established
           independent contractor relationships with various investors to whom we sell closed loans. We are not an agent for
           any such investor in connection with the sale of a loan. While we will seek to assist you in meeting your financial
           needs, we cannot guarantee the lowest or best terms available in the market.

  ()       We will be acting as follows:

  How we will be Compensated

  (X )     The retail price we offer you - your interest rate, total points, and fees – will include our compensation. In some
           cases we may be paid all or part of our compensation by you or by the lender or investor. Alternatively, we may be
           paid a portion of our compensation by both you and the lender. For example, in some cases, if you would rather pay
           a lower interest rate, you may pay higher up-front points and fees. Also, in some cases, if you would rather pay less
           up-front, you may be able to pay a higher rate, in which case some or all of my compensation will be paid by the
           lender. We also may be paid by the lender based on other goods, services, or facilities performed or provided by us
           to the lender.

  ()       Our pricing for your loan is based upon current wholesale options available to us in the secondary market where
           closed loans are sold. Fees charged directly to you by us may vary depending on the type of loan for which you have
           applied.

  At the time of this disclosure, we are receiving $_______________ in fees.
  The services for which these fees are being charged include the following:

  (    )   Application fee                              $______
  (    )   Processing fee                               $______
  (    )   Appraisal Fee                                $______
  (    )   Credit report fee                            $ _____
  (    )   Automated underwriting fee                   $______

  Other (list):
  $_________
  $_________

  Of this amount, $_______ is not refundable under any conditions.

  The remainder of this amount will not be subject to refund at any time after we have ordered or obtained the
  services for which such fees are being collected.
  The estimated fees which we will charge will be as shown on the good faith estimate which we are providing to you now or
  which we will provide you within three (3) days in accordance with the requirements of the Real Estate Settlement
  Procedures Act and its implementing regulations.

                  505 North Sam Houston Parkway East * Suite 110 * Houston, TX 77060
                             Main Office: 281.445.1901 * Fax: 281.445.8805
                                                                                                               Stacking #7
                                                                                                          14




TEXAS MORTGAGE BROKER/LOAN OFFICER DISCLOSURE
  PART 2 OF 2

  TEXAS SUPREME MORTGAGE IS LICENSED UNDER THE LAWS OF THE STATE OF TEXAS AND BY STATE
  LAW IS SUBJECT TO REGULATORY OVER SIGHT BY THE TEXAS SAVINGS AND LOAN DEPARTMENT. ANY
  CONSUMER WISHING TO FILE A COMPLAINT AGAINST TEXAS SUPREME MORTGAGE SHOULD
  COMPLETE, SIGN, AND SEND A COMPLAINT FORM TO THE TEXAS SAVINGS AND LOAN DEPARTMENT,
  2601 NORTH LAMAR, SUITE 201, AUSTIN, TEXAS 78705. COMPLAINT FORMS AND INSTRUCTIONS MAY BE
  DOWNLOADED          AND   PRINTED   FROM   THE    DEPARTMENT'S  WEB    SITE LOCATED     AT
  WWW.TSLD.STATE.TX.US OR OBTAINED FROM THE DEPARTMENT UPON REQUEST BY MAIL AT THE
  ADDRESS ABOVE, BY TELEPHONE AT ITS TOLL-FREE CONSUMER HOTLINE AT 1-877-276-5550, BY FAX AT
  (512) 475-1360, OR BY E-MAIL AT WWW.SML.STATE.TX.US.

  THE DEPARTMENT MAINTAINS THE MORTGAGE BROKER RECOVERY FUND TO
  MAKE PAYMENTS OF CERTAIN TYPES OF JUDGMENTS AGAINST A MORTGAGE BROKER OR LOAN
  OFFICER. NOT ALL CLAIMS ARE COMPENSABLE AND A COURT MUST ORDER THE PAYMENT OF A CLAIM
  FROM THE RECOVERY FUND BEFORE THE DEPARTMENT MAY PAY A CLAIM. FOR MORE INFORMATION
  ABOUT THE RECOVERY FUND, PLEASE CONSULT SUBCHAPTER F OF THE MORTGAGE BROKER LICENSE
  ACT ON THE DEPARTMENT'S WEB SITE REFERENCED ABOVE.

  Applicant(s):                                              Mortgage Broker/Loan Officer


  Signed:_________________________________                   Signed:_________________________________

  Borrower:_______________________________                   Name: __________________________________

  Date: __________________________________                   Date:____________________________________

  Signed:_________________________________

  Co-Borrower:____________________________

  Date: ___________________________________




                  505 North Sam Houston Parkway East * Suite 110 * Houston, TX 77060
                             Main Office: 281.445.1901 * Fax: 281.445.8805

                                                                                            Stacking #7
                                                                                                                        15




                             FIXED RATE LOAN DISCLOSURE
You have received an application for a fixed rate loan. The following is a description of the key terms of the key terms of
fixed rate loans offered by Texas Supreme Mortgage, INC. (TSMI) to qualified applicants. TSMI may and will be used
interchangeably with “lender”.

KEY TERMS:
Loan Amount: $__________________________                         Term Of Maturity:_____________________Months

INTEREST RATE:
The interest rate, if known will be______% otherwise, the interest rate on your loan will be disclosed to you on the loan
closing date and will be based on market conditions at the time and your acceptance of loan conditions.

INITIAL PRINICIPAL AND INTEREST PAYMENT AMOUNT:
The initial principal and interest payment amount depends on the interest rate and term. The amount of payment ( ) is not
known at this time or ( ) will be $______________monthly or ( ) is estimated to be $_____________ monthly based on
the interest rate listed above.

AMORTIZATION:
The amortization period for your loan is ________months. The monthly payments on your loan have been estimated so as
to repay all principal and interest by the end of the amortization period.

DEFAULT AND FORECLOSURE OF YOUR LOAN:
Your loan will be in default if any of the following events occur:

    1. You fail to make any monthly payments on time or fail to pay the final installment of your loan at maturity.
    2. You fail to make any escrow payments for taxes and insurance or, if no escrow payments are required by TSMI,
       you fail to keep property insured or fail to pay the taxes as required by the deed of trust.
    3. You fail to maintain the property or fail to perform any obligations or pay any assessment required by your
       homeowners association. If applicable.
    4. You become insolvent or bankrupt, or the property is condemned by eminent domain.
    5. You sell or convey the property or any interest without TSMI prior written consent.
    6. You loan is made unenforceable by legislation or law.

In event of a default on your loan, TSMI may at its option declare your loan immediately due and payable in full. If all
sums then owed to TSMI are not paid by you upon receipt of the demands by TSMI, TSMI will then institute action to sell
your property at a foreclosure sale pursuant to the terms of the DEED of TRUST you will execute at closing.

FEES:
You will be charged fees by TSMI and other persons in connections with the origination of your loan. TSMI will give you
an estimate of these fees within three business days after receiving your loan application, or at loan application.

BROKER:
TSMI is a loan broker. The broker is not acting as your agent and in no way is making any guarantees as to the approval
or success of your loan application. TSMI is an Independent Contractor for the purpose of seeking your financing. You
have also executed as a separate agreement, The Mortgage Loan Origination Agreement. The broker will receive
compensation for services rendered direct from the lender.

Please acknowledge that you have read and received this disclosure by signing below.




_________________________________________                    _____________________________________________
Applicant                           Date                        Co-Applicant                           Date



                     505 North Sam Houston Parkway East * Suite 110 * Houston, TX 77060
                                Main Office: 281.445.1901 * Fax: 281.445.8805



                                                                                                          Stacking #8
                                                                                            16




        BORROWER(S) STATEMENT REGARDING
             ACTIVE DUTY MILITARY


             I am a member if a Military Reserve or National Guard unit.

     Borrower:                        Co-Borrower:

      ____         Yes                       ___          Yes

      ____         No                        ___          No




   I have been notified and/or received orders for mobilization of my military or
                            National Guard unit.

     Borrower:                        Co-Borrower:

      ____         Yes                       ___          Yes

      ____         No                        ___          No




___________________________________________               ____________________
Borrower’s Signature                                      Date


__________________________________________                ____________________
Co-Borrower’s Signature                                   Date




         505 North Sam Houston Parkway East * Suite 110 * Houston, TX 77060
                    Main Office: 281.445.1901 * Fax: 281.445.8805


                                                                              Stacking #9
                                                                                                                                                       17




          BORROWER(S) CERTIFICATION & AUTHORIZATION
LENDER: TEXAS SUPREME MORTGAGE, INC.
BORROWER______________________________ CO-BORROWER_______________________________
PROPERTY ADDRESS:____________________________________________________________________
LOAN NUMBER:__________________________________________________________________________
CERTIFICATION:
The Undersigned certify the following:
1. I/We have applied for a mortgage loan through TEXAS SUPREME MORTGAGE, INC. In applying for the loan, I/We completed a loan
application containing various information on the purpose of the loan, the amount and source of the down payment, employment and income
information, and the assets and liabilities. I/We certify that all of the information is true and complete. I/We made no misrepresentations in the loan
application or other documents, nor did I/We omit any pertinent information. I/We agree to inform the lender in the event that there is a significant
change in my employment or financial status prior to the settlement date.

2. I/We understand and agree that TEXAS SUPREME MORTGAGE, INC reserves the right to change the mortgage loan review processes to a full
documentation program. This may include verifying the information provided on the application with the employer and/or the financial institution.

3. I/We fully understand that it is a Federal crime punishable by fine or imprisonment, or both, to knowingly make any false statements
when applying for this mortgage, as applicable under the provisions of Title 18, United States Code, and Section 101.

BY SIGNING BELOW I AUTHORIZE:
1. I/We have applied for a mortgage loan through TEXAS SUPREME MORTGAGE, INC. As part of
the application process, I/We authorize TEXAS SUPREME MORTGAGE, INC., its successors or assignees and the mortgage guaranty insurer (if
any), to acquire any credit reports, credit history and verification of any items prior or current, to aid in the approval, processing or closing of my/our
mortgage loan or as part of the lenders quality control program.

2. Permission is hereby granted to Lender to verify, existing or prior accounts, for example, but not limited to the following: First or Second
Mortgage loan accounts, land contracts, rentals, credit union or other installment loans, credit card accounts, money market accounts, savings
accounts, employment income/history, tax returns and any account required for deposit, down payment or collateral for the mortgage loan.

3. I/We understand that the confidentiality if the acquired information will be preserved except where disclosure of the information is required by
applicable law and that the information will be transmitted directly from the verifying source to the Lender and will not be transmitted through
myself/ourselves or any other party. TEXAS SUPREME MORTGAGE, INC or any investor that purchases the mortgage may address this
authorization to any party named in the loan application. A copy of this authorization may be accepted as an original.

               I/We  plan to  do not plan to use the acquired property as our  principal residence  secondary residence.

To Whom It May Concern: My/Our signature(s) here authorize(s) you to furnish the information requested by the above named Lender or Lender’s
Agent without additional signatures on forms for verifying the items listed above. The requests for verification are to be accepted as if my/our
signature(s) were present on the form(s). My/Our name typed or printed in the authorized signature area on the verification form(s) along with
a copy of this authorization can be accepted as permission to supply this information. A copy of this form may be accepted as an original.

  PRIVACY ACT NOTICE STATEMENT – This information is to be used by the agency collecting it in determining whether you qualify as a
  prospective mortgagor for mortgage insurance or guaranty or as a borrower for a rehabilitation loan under the agency’s program. It will not be
  disclosed outside of the agency without consent except to financial institutions for verification of your deposits as required and permitted by
  law. You do not have to give us this information, but if you do not, your application for approval as a prospective mortgagor for mortgage
  insurance or guaranty or as a borrower for a rehabilitation loan may be delayed or rejected. This information requested is authorized by Title
  38, U.S.C., Chapter 37 (if VA); by 12 U.S.C., Section 1701 et seq., (if HUD/FHA); and by 42 U.S.C., Section 1452b (if HUD/CPD).

                                            COMPLIANCE AGREEMENT
Should this mortgage loan be approved, Borrower(s) agree, if requested by the Lender, its successors and/or assigns, the closing agent for the Lender
or the mortgage guaranty insurer (if any), to fully cooperate in the adjustment or correction of any errors including those of a clerical nature on any or
all loan documentation.

Borrower(s) also agree to cooperate with Lender in supplying or correcting any documentation deemed necessary by the Lender, it successors or
assigns and/or the mortgage guaranty insurer (if any), for the purpose of the transfer, sale or conveyance by Lender of its interest in and to said loan
documentation to any entity, including, but not limited to, any investor, the Federal national Mortgage association, The Federal Home Loan
Mortgage Corporation, The Federal Housing Administration or the Veterans Administration.


          _______________________________                               ____________________                               _________________
          Borrower’s Signature                                          Social Security No.                                Date


          _______________________________                               ____________________                                __________________
          Co-Borrower’s Signature                                       Social Security No.                                 Date


                           505 North Sam Houston Parkway East * Suite 110 * Houston, TX 77060
                                      Main Office: 281.445.1901 * Fax: 281.445.8805


                                                                                                                                   Stacking #10
                                                                                                                  18




                       NOTICE TO APPLICANTS REGARDING
                          SOCIAL SECURITY NUMBERS

Under the Federal Income Tax Law, you are subject to certain penalties if you do not provide us with your
correct Social Security number or other taxpayer identification number. Please read this notice carefully.

The tax reform act of 1984 requires lenders to report interest received from an individual on a loan secured by
real estate if the total interest received on the loan during the years is $600.00 or more. The interest received and
the borrower’s taxpayer identification number must be reported to the Internal Revenue Service. This will allow
the Internal Revenue Service to verify deduction for interest paid on loans secured by real estate.

You (as a borrower) are required to provide your taxpayer identification number to us (as a lender). If you are
an individual, your taxpayer identification number is your Social Security number. You may be subject to a
$50.00 penalty imposed by the Internal Revenue Service if you do not provide is with your correct taxpayer
identification number.

Please supply your taxpayer identification number and the other information requested on the form on the
bottom of this notice.


__________________________________________________________________________________________

________________________________________                      __________________________________________
Borrower Name                                                 Co-Borrower Name

________________________________________                      __________________________________________
Address                                                       Address

_________________________________________                     __________________________________________
City              ST                Zip                       City              ST                Zip

_________________________________________                     __________________________________________
Taxpayer ID Number                                            Taxpayer ID Number

_________________________________________                     __________________________________________
Signature                                                     Signature


I am an individual?     Yes________ No ________               I am an individual?    Yes________ No ________




                      505 North Sam Houston Parkway East * Suite 110 * Houston, TX 77060
                                 Main Office: 281.445.1901 * Fax: 281.445.8805


                                                                                                   Stacking #11
                                                                                                                   19




                          SERVICING DISCLOSURE STATEMENT

Lender: Texas Supreme Mortgage, Inc.                                                 Date:
        505 N. Sam Houston Pkwy E, Ste.110
        Houston, TX 77060

NOTICE TO FIRST LIEN MORTGAGE LOAN APPLICANTS: THE RIGHT TO COLLECT YOUR
MORTGAGE LOAN PAYMENTS MAY BE TRANSFERRED. FEDERAL LAW GIVES YOU CERTAIN
RELATED RIGHTS. IF YOUR LOAN IS MADE, SAVE THIS STATEMENT WITH YOUR LOAN
DOCUMENTS. SIGN THE ACKNOWLEDGMENT AT THE END OF THIS STATEMENT ONLY IF YOU
UNDERSTAND ITS CONTENTS.
Because you are applying for a mortgage loan covered by the Real Estate Settlement Procedures Act (RESPA)
(12 U.S.C. Section 2601 et seq.) you have certain rights under that Federal law.
This statement tells you about those rights. It also tells you what the chances are that the servicing for this loan
may be transferred to a different loan servicer. "Servicing" refers to collecting your principal, interest and
escrow account payments, if any. If your loan servicer changes, there are certain procedures that must be
followed. This statement generally explains those procedures.
Transfer practices and requirements
If the servicing of your loan is assigned, sold, or transferred to a new servicer, you must be given written notice
of that transfer. The present loan servicer must send you notice in writing of the assignment, sale or transfer of
the servicing not less than 15 days before the effective date of the transfer. The new loan servicer must also
send you notice within 15 days after the effective date of the transfer. The present servicer and the new servicer
may combine this information in one notice, so long as the notice is sent to you 15 days before the effective date
of transfer. The 15 day period is not applicable if a notice of prospective transfer is provided to you at
settlement. The law allows a delay in the time (not more than 30 days after a transfer) for servicers to notify
you, upon the occurrence of certain business emergencies.
Notices must contain certain information. They must contain the effective date of the transfer of the servicing of
your loan to the new servicer, and the name, address, and toll-free or collect call telephone number of the new
servicer, and toll-free or collect call telephone numbers of a person or department for both your present servicer
and your new servicer to answer your questions. During the 60 day period following the effective date of the
transfer of the loan servicing, a loan payment received by your old servicer before its due date may not be
treated by the new loan servicer as late, and a late fee may not be imposed on you.
Complaint Resolution
Section 6 of RESPA (12 U.S.C. Section 2605) gives you certain consumer rights, whether or not your loan
servicing is transferred. If you send a "qualified written request" to your servicer, then your servicer must
provide you with a written acknowledgment within 20 Business Days of receipt of your request. A "qualified
written request" is a written correspondence, other than notice on a payment coupon or other payment medium
supplied by the servicer, which includes your name and account number, and the information regarding your
request. Not later than 60 Business Days after receiving your request, your servicer must make any appropriate
corrections to your account, or must provide you with a written clarification regarding any dispute. During this
60 Business Day period, your servicer may not provide information to a consumer reporting agency concerning
any overdue payment related to such period or qualified written request.
A Business Day is any day in which the offices of the business entity are open to the public for carrying on
substantially all of its business functions.
Damages and Costs
Section 6 of RESPA also provides for damages and costs for individuals or classes of individuals in
circumstances where servicers are shown to have violated the requirements of that Section.



                    505 North Sam Houston Parkway East * Suite 110 * Houston, TX 77060
                               Main Office: 281.445.1901 * Fax: 281.445.8805
                                                                                                     Stacking #12
                                                                                                                              20


Servicing Transfer Estimates
1. The following is the best estimate of what will happen to the servicing of your mortgage loan:
    A. □ We may assign, sell or transfer the servicing of your loan while the loan is outstanding.
             We are able to service your loan and we
             □ will service your loan.
             □ will not service your loan.
             □ haven't decided whether to service your loan.
    B. □ We do not service mortgage loans             □ and we have not serviced mortgage loans in the past
                                                         three years.
            We presently intend to assign, sell or transfer the servicing of your mortgage loan. You will be
            informed about your servicer.
2. For all mortgage loans that we make in the 12 month period after your mortgage loan is funded, we
   estimate that the percentage of such loans for which we will transfer servicing is between:
     _____ 0 to 25%              _____ 26 to 50%            ______ 51 to 75%             _____ 76 to 100%
     This estimate       □ does □ does not            include assignments, sales or transfers to affiliates or subsidiaries.

     This is only our best estimate and it is not binding. Business conditions or other circumstances may affect
     our future transferring decisions.
3. A. □ We have previously assigned, sold, or transferred the servicing of mortgage loans.
    B. □ This is our record of transferring the servicing of mortgage loans we have made in:
                                Year                         Percentage of Loans Transferred
                                2005                                     100%        %
                                2006                                     100%        %
                                2007                                     100%        %
     This information □ does □ does not             include assignments, sales or transfers to affiliates or subsidiaries.
Acknowledgment of Mortgage Loan Applicant(s)
I/We have read and understood the disclosure; and understand that the disclosure is a required part of the
mortgage application as evidenced by my/our signature(s) below.


_________________________________________________________         ________________________________________________________
Applicant                                     Date                 Applicant                                      Date


_________________________________________________________        __________________________________________________________
Applicant                                     Date                Applicant                                       Date




                       505 North Sam Houston Parkway East * Suite 110 * Houston, TX 77060
                                  Main Office: 281.445.1901 * Fax: 281.445.8805
                                                                                                                                                21




                         TRUTH IN LENDING EXPLANATION FORM
This document is used to help customers understand the federal disclosures that we are required to send to all of our
borrowers. The Truth In Lending (TIL) disclosure is the most commonly misunderstood document in the mortgage
process. The TIL is designed to help borrowers understand that their borrowing cost consist of more than the simply the
interest rate on the new mortgage. The TIL expresses the cost of the new loan in the form of an Annual Percentage Rate
(APR) which essentially says "If all your mortgage related closing costs were lumped into the interest rate rather than
being paid separately, what would the interest rate have to increase by to incorporate these costs".


  1                            FEDERAL TRUTH-IN-LENDING DISCLOSURE STATEMENT
                                                (MADE IN COMPLIANCE WITH FEDERAL LAW)                              2
ANNUAL                                                                                                            FINANCE CHARGE:
PERCENTAGE RATE:              Lender:______XYZ Lender Example_________________________________
                                                                                                                  Represents the total
The APR is not the            Borrower:                      Mr Test Example____________________________          dollar amount you will
same as your interest         Property Address: 123 Happy House Ln., Somewhere, TX 12345___________               have to pay over the
rate. Because the APR         [ X ] Initial disclosure at time of application                                     life of the loan- i.e., the
includes items in             [ ] Final disclosure based on contract terms                                        cost of the loan to you.
addition to interest, it                                                                                          It is a combination of
is higher than the note         ANNUAL                    FINANCE              AMOUNT    Total of Payments
                                                                                                                  the amount of interest
rate. It is a combination       PERCENTAGE                 CHARGE             FINANCED
                                                                                                                  paid over the life of the
of the amount of interest       RATE                                                                              loan plus any/all
to be paid over the life                                                                                          mortgage insurance
of the loan, together                                                                                             premiums, plus the
                                     6.89%            $203,053.88         $147,190.00             180
with the prepaid finance                                                                                          prepaid finance
charges computed as                                                                                               charges.
an annual rate.
                                       1                    2                   3
                                                                                                                   3
                                Your payment schedule will be:                                                    AMOUNT

 4                                 NUMBER OF
                                   PAYMENTS
                                                                AMOUNT OF
                                                                PAYMENTS
                                                                                      WHEN PAYMENTS
                                                                                     ARE DUE MONTHLY
                                                                                                                  FINANCED:
                                                                                                                  The amount financed
 AMOUNT OF                                                                                                        is different will always
 PAYMENTS:                                                                                                        be different from what
 This is the estimated                     120                    $1027.51                  07/01/1998            you borrowed. The
 dollar amount of your                                                                                            amount financed
 monthly payments.                                                    4                                           represents your new
                                                                                                                  mortgage amount
                                                                                                                  minus points and
                                   *includes mortgage insurance premiums, excludes taxes, hazard                  certain closing fees
                                                      insurance or flood insurance                                as shown in your
  5                               [ ] DEMAND FEATURE: This loan transaction has a demand feature.
                                [ ] REQUIRED DEPOSIT: The annual percentage rate does not take into
                                                                                                                  Good Faith Estimate
                                                                                                                  of Closing Costs.
 PREPAYMENT:
 If the first box is
                                                      account your required deposit.
 checked, your loan has
 a prepayment penalty.
                                    [ ] VARIABLE RATE FEATURE: Your loan contains a variable rate
                                feature. Disclosures about the variable rate feature have been provided to         6
 This means that a fee                                          you earlier.                                      DISCLOSURE:
 may be charged to you                                                                                            States that if you pay
 if you pay off your loan                                                                                         the loan off early, you
 before it is due.                       SECURITY INTEREST: You are giving a security interest in:                will not be entitled to a
                                                                                                                  refund of part of the
                                                 [ X ] the goods or property being purchased.                     finance charge. This
 The second box                                      FILING OR RECORDING FEES $65                                 means that you will be
 indicates that if you pay           LATE CHARGE: If a payment is more than 15 days late, you will be             charged interest for
 the loan off early you                    charged $50 / 5 % of the principal and interest past due.              the period of time in
 will not receive a refund                                               5                                        which you are using
 for interest that you paid                   PREPAYMENT: If you pay off your loan early, you                     the money loaned to
 in the previous years.                        [ ] may [ X ] will not have to pay a penalty and                   you. Prepaid finance
 You will not owe any                                                                                             charges and interest
                                  [ ] may [ X ] will not be entitled to a refund of part of the finance charge.
 future interest, but will                                                                                        already paid are not
 not be refunded any                                                     6                                        refundable. In other
 interest from the              INSURANCE: Credit life, accident health or loss of income insurance is not        words, you only pay
 previous years.                   required in connection with this loan. This loan transaction requires the      interest for the time
                                                          following property insurance:                           the loan is still
                                 [x ] Hazard Insurance [x ] Flood Insurance [ ] Private Mortgage Insurance        outstanding.
                                  Borrower(s) may obtain property insurance through any person of his/her
                                      choice provided said carrier meets the requirements of the lender.
                                                                         7
                                 ASSUMPTION: If this loan is to purchase and is secured by your principal
  7                                       dwelling, someone buying your principle dwelling, [ ]may
                                                          [ ]may, subject to conditions
 ASSUMPTION:
 Your lender will                   [ x] may not assume the remainder of your loan on the original terms.
 determine if the loan is              See your contract documents for additional information regarding
 assumable (transferable            nonpayment, default, right to accelerate the maturity of the obligation,
 with no change in rate              prepayment rebates and penalties, and the lender's policy regarding
 or conditions) by a third              assumption of the obligation.[ ] check boxes where applicable
 party. Very few               [x ] all dates and numerical disclosures except late payment disclosures are
 modern mortgages
                                                                    estimates
 are assumable.
                                                                        22




TRUTH IN LENDING DISCLOSURE STATEMENT
 (THIS IS NEITHER A CONTRACT NOR A COMMITMENT TO LEND)




   505 North Sam Houston Parkway East * Suite 110 * Houston, TX 77060
              Main Office: 281.445.1901 * Fax: 281.445.8805
                                                                                                              23




                      EQUAL CREDIT OPPORTUNITY ACT
                                  ECOA
In accordance with provisions of the Federal Equal Credit Opportunity Act (15 U.S.C. 1691 etseg.)
effective March 23, 1977, the following information is provided for your loan guidance prior to your
application to TEXAS SUPREME MORTGAGE, INC., for a Real Estate Loan:


   1. The Federal Equal Credit Opportunity Act prohibits creditors from discrimination against credit
      applicants on basis of race, color, religion, national origin, sex, marital status, age (provided the
      applicant has the capacity to enter into a binding contract): because all or part of the applicant’s income
      derives from any public assistance program: Or because the applicant has in good faith exercised any
      right under the Consumer Credit Protection Act. The Federal Agency that administers compliance with
      this law concerning the mortgage loan company is the:

                                     FEDERAL TRADE COMMISSION
                                     EQUAL CREDIT OPPORTUNITY
                                     WACHINGTON, D.C. 20580

   2. You need not disclose income from alimony, child support or separate maintenance unless you desire
      such income to be considered in determining credit worthiness.

   3. You may be asked to answer questions regarding your race, national origin, sex, marital status, and age.
      You do not have to answer such questions if you do not wish to do so, but we are required to ask them
      for the reason that such information is being requested by the Federal Government to monitor
      compliance with Federal Anti-Discrimination status, which status prohibits creditors from
      discrimination against applicants on that basis.

   4. If a courtesy title is included in the Application (such as Mr., Mrs., Ms., Miss), providing such
      information is optional.

   5. You are entitled to a notice by this office of action taken on your application within 30 days of our
      receipts of all exhibits and matters necessary to complete your application. If adverse action is taken on
      your application, said notice shall contain a statement of specific reason for action taken.



I/We the undersigned, acknowledge that I/We have read and understand this notice.



___________________________________________                __________________________________________
Borrower                                                   Co-Borrower
___________________________________________                __________________________________________
Date                                                       Date




                   505 North Sam Houston Parkway East * Suite 110 * Houston, TX 77060
                              Main Office: 281.445.1901 * Fax: 281.445.8805                      Stacking #13
                                                                                                                                                                    24




                                        PRIVACY POLICY DISCLOSURE
Respecting and protecting customer privacy is vital to our business. By explaining our Privacy Policy to you, we trust that you will better understand how we keep our
customer information private and secure while using it to serve you better. Keeping customer information secure is a top priority, and we are disclosing our policies to
help you understand how we handle the personal information about you that we collect and disclose. This notice explains how you can limit our disclosing of personal
information about you. The provisions of this notice will apply to former customers as well as current customers unless we state otherwise.

The Privacy Policy explains the Following:
     •    Protecting the confidentiality of our customer information.
     •    Who is covered by the Privacy Policy.
     •    How we gather information.
     •    The types of information we share, why, and with whom.
     •    Opting Out - how to instruct us not to share certain information about you or not to contact you.

Protecting the Confidentiality of Customer Information:
We take our responsibility to protect the privacy and confidentiality of customer information very seriously. We maintain physical, electronic, and procedural
safeguards that comply with federal standards to store and secure information about you from unauthorized access, alteration, and destruction. Our control policies, for
example, authorize access to customer information only by individuals who need access to do their work. From time to time, we enter into agreements with other
companies to provide services to us or make products and services available to you. Under these agreements, the companies may receive information about you but they
must safeguard this information, and they may not use it for any other purposes.

Who is Covered by the Privacy Policy:
We provide our Privacy Policy to customers when they conduct business with our company. If we change our privacy policies to permit us to share additional
information we have about you, as described below, or to permit disclosures to additional types of parties, you will be notified in advance. This Privacy Policy applies
to consumers who are current customers or former customers.

How We Gather Information:
As part of providing you with financial products or services, we may obtain information about you from the following sources:
     •      Applications, forms, and other information that you provide to us, whether in writing, in person, by telephone, electronically, or by any other means. This
            information may include your name, address, employment information, income, and credit references;
     •      Your transaction with us, our affiliates, or others. This information may include your account balances, payment history, and account usage;
     •      Consumer reporting agencies. This information may include account information and information about your credit worthiness;
     •      Public sources. This information may include real estate records, employment records, telephone numbers, etc.

Information We Share:
We may disclose information we have about you as permitted by law. We are required to or we may provide information about you to third-parties without your
consent, as permitted by law, such as:
      •     To regulatory authorities and law enforcement officials.
      •     To protect against or prevent actual or potential fraud, unauthorized transactions, claims, or other liability.
      •     To report account activity to credit bureaus.
      •     To consumer reporting agencies.
      •     To respond to a subpoena or court order, judicial process or regulatory authorities.
      •     In connection with a proposed or actual sale, merger, or transfer of all or a portion of a business or an operating unit, etc.
In addition, we may provide information about you to our service providers to help us process your applications or service your accounts. Our service providers may
include billing service providers, mail and telephone service companies, lenders, investors, title and escrow companies, appraisal companies, etc. We may also provide
information about you to our service providers to help us perform marketing services. This information provided to these service providers may include the categories
of information described above under "How We Gather Information" limited to only that which we deem appropriate for these service providers to carry out their
functions.

We do not provide non-public information about you to any company whose products and services are being marketed unless you authorize us to do so. These
companies are not allowed to use this information for purposes beyond your specific authorization.

Opting Out
We also may share information about you within our corporate family of office(s). We may share all of the categories of information we gather about you, including
identification information (such as your name and address), credit reports (such as your credit history), application information (such as your income or credit
references), your account transactions and experiences with us (such as your payment history), and information from other third parties (such as your employment
history). By sharing this information we can better understand your financial needs. We can then send you notification of new products and special promotional offers
that you may not otherwise know about. For example, if you originally obtained a mortgage loan with us, we would know that you are a homeowner and may be
interested in hearing how a home equity loan may be a better option than an auto loan to finance the purchase of a new car. You may prohibit the sharing of application
and third-party credit-related information within our company or any third-party company at any time. If you would like to limit disclosures of personal information
about you as described in this notice, just check the appropriate box or boxes to indicate your privacy choices.

     □     Please do not share personal information about me with non-affiliated third-parties.
     □     Please do not share personal information about me with any of your affiliates except as necessary to effect, administer, process, service or enforce a
           transaction requested or authorized by myself.
     □     Please do not contact me with offers of products or services by mail.
     □     Please do not contact me with offers of products or services by telephone.

Note for Joint Accounts: Your Opt Out choices will also apply to other individuals who are joint account holders. If these individuals have separate accounts, your
Opt Out will not apply to those separate accounts.

_______________________________________________________________                          TEXAS SUPREME MORTGAGE__________________________________
Name                                                                                     Company Name
_______________________________________________________________                          505 N. SAM HOUSTON PARKWAY EAST, SU 110,__________________
Address                                                                                  Address
_______________________________________________________________                          HOUSTON, TX 77060____________________________________________
City, State, Zip                                                                         City, State, Zip
_______________________________________________________________                          281-445-1901___________________________________________________
Phone#                                                                                   Phone #
_______________________________________________________________
Borrower Signature                                        Date
_______________________________________________________________                          _______________________________________________________________
Co-Borrower Signature                                     Date                           Loan #


                             505 North Sam Houston Parkway East * Suite 110 * Houston, TX 77060
                                        Main Office: 281.445.1901 * Fax: 281.445.8805                                                            Stacking #14
                                                                                       25




          PATRIOT ACT NOTICE
CUSTOMER IDENTIFICATION DOCUMENTATION




   505 North Sam Houston Parkway East * Suite 110 * Houston, TX 77060
              Main Office: 281.445.1901 * Fax: 281.445.8805


                                                                        Stacking #15
                                                                                                                  26




       NOTICE OF PENALTIES FOR MAKING FALSE OR
                MISLEADING STATEMENT
Effective September 1, 2007 and pursuant to Section 1., Subchapter B, Chapter 343, Section 343.105 of the
Texas Finance Code, each mortgage lender, mortgage banker or licensed mortgage broker/loan officer shall
provide to each applicant for a home loan this written notice at closing for full verification and execution by
each loan applicant.

WARNING:
Intentionally or knowingly making a materially false or misleading statement to obtain
property or credit, including a mortgage loan, is a violation of Section 32.32, of the Texas
Penal Code, and, depending on the amount of the loan or value of the property, is punishable
by imprisonment for a term of 2 years to 99 years and a fine not to exceed $10,000.

If a person determines or reasonably suspects that fraudulent activity has been committed or is about to be
committed, the law requires that person to report the information to an authorized governmental agency.

Texas Department of Savings and Mortgage Lending
2601 North Lamar Blvd., Ste. 201
Austin, Texas 78705
Toll Free Consumer Hotline: (877) 276-5550
Main Number: (512) 475-1350
Email: smlinfo@sml.state.tx.us   Website: www.sml.state.tx.us

I/we, the undersigned home loan applicant(s), represent that I/we have received, read, and
understand this notice of penalties for making a materially false or misleading written statement
to obtain a home loan.

I/we represent that all statements and representations contained in my/our written home loan
application, including statements or representations regarding my/our identity, employment,
annual income, and intent to occupy the residential real property secured by the home loan,
are true and correct as of the date of loan closing.

______________________________________________________                       ____________
Applicant                                                                    Date
______________________________________________________                       ____________
Co-Applicant(s)                                                              Date




                    505 North Sam Houston Parkway East * Suite 110 * Houston, TX 77060
                               Main Office: 281.445.1901 * Fax: 281.445.8805
                                                                                          27


Explanation:
Fraudulent activity has been defined as any act that constitutes a violation of a penal law
and is part of an attempt or scheme to defraud any person. If a person determines or
reasonably suspects that fraudulent activity has been committed or is about to be
committed, the person shall report the information to an authorized governmental
agency, namely:

      The Texas Attorney General,

      A local or state law enforcement agency of this state or a federal law enforcement
      agency, or

      A U.S. Prosecuting attorney or prosecuting attorney of a county or judicial district
      of this state, or one or more of the following agencies:

      The Texas Department of Savings and Mortgage Lending (TDSML),

      The Texas Department of Public Safety (DPS),

      The Texas Department of Insurance (TDI),

      The Office of Consumer Credit Commissioner (OCCC),

      The Texas Real Estate Commission (TREC),

      The Texas Credit Union Department (TCUD),

      The Texas Department of Banking (DOB), or

      The Texas Appraiser Licensing and Certification Board (TALCB).

The Texas Attorney General shall establish a strategic partnership Fraud Task Force
consisting of the Attorney General, the TDSML Commissioner, the OCCC
Commissioner, the Credit Union Commissioner, the Commissioner of Insurance, the
presiding officer of the Texas Real Estate Commission, the presiding officer of the Texas
Appraiser Licensing and Certification Board, and the Commissioner of Banking.
Assistance from the F.B.I., U.S. Secret Service, U.S. Department of Justice, U.S.
Department of Homeland Security, I.R.S. and the U.S. Postal Service may be requested.
The Task Force shall focus its efforts in sharing information and resources as well as
successfully enforcing administrative and criminal actions against perpetrators of
mortgage fraud. An annual report of the progress of each agency’s efforts is to be
submitted to the Governor, the Lt. Governor and the Speaker of the House. The Attorney
General may solicit and accept gifts, grants donations or money, services or property on
behalf of the state for disbursement to any state agency or local law enforcement agency
to aid the Task Force in the investigation and prosecution of mortgage fraud in Texas.

The Texas Penal Code has been amended to add “mortgage loan” specifically to the
“credit” section of the code and to the section relating to the definition of fraud, and
requires the Task Force agencies and others to cooperate in the prosecution of mortgage
fraud.

The Texas Penal Code has been amended to provide a “seven year statutory limitation”
on the act of making a false statement to obtain property or credit or money laundering
and makes these acts a felony.

				
DOCUMENT INFO