Guaranteed Mortgage Package Agreement

This GUARANTEED MORTGAGE PACKAGE AGREEMENT commits us, ____________________, the PACKAGER, to provide you, ________________, the BORROWER(S) upon your acceptance and payment of a $ _______ fee within _______ days (30 days or greater) of the date this form is delivered or mailed to you: (1) a mortgage loan on the property described below at a GUARANTEED INTEREST RATE; (2) a GUARANTEED MORTGAGE PACKAGE PRICE for settlement services required by the lender; (3) a firm estimate (within 10%) of the amount of OTHER REQUIRED SETTLEMENT COSTS you will pay at or before settlement; and (4) a sum of the TOTAL ESTIMATED SETTLEMENT COSTS that you will be required to pay at or before settlement to obtain your mortgage.

This Agreement is subject to verification of your credit rating, final property appraisal, and other appropriate underwriting criteria. Other providers offer similar packages, or alternative approaches to mortgage origination. You should shop to find the best packager or originator and mortgage product to meet your needs.

THE PROPERTY: You seek to [purchase] [refinance] a residential property at

(Address) __________________________________

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1. INTEREST RATE GUARANTEE

We guarantee to provide you an [initial] interest rate of ______ on a [fixed rate] [adjustable] mortgage of $ _______ for [ ] years with [ ] monthly payments. Your [initial] monthly payments for principal and interest and monthly mortgage insurance on this loan will be $ _______. Your APR will be _____ % which includes ______ % for mortgage insurance.

This interest rate is guaranteed through settlement if you accept and sign this agreement now, and lock-in this rate by [insert date/time]. If you choose not to accept by this time, we guarantee that the interest rate will not exceed ______ % [over] [under] the [prime] [index] rate for _____ days [30 days or greater]. If you do not accept within this period, this offer will expire. If you accept this agreement, but elect not to lock-in the rate at the time of acceptance, we further guarantee that your interest rate will not exceed ______ % [over] [under] the [prime] [index] rate or other standard measurement in lieu of an index when you do lock-in.

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II. GUARANTEED MORTGAGE PACKAGE

We will provide you a GUARANTEED MORTGAGE PACKAGE for all settlement services and charges required to complete your mortgage, except those specifically set forth in Secton IV below, at a GUARANTEED MORTGAGE PACKAGE PRICE. You will pay this GUARANTEED PRICE in addition to the OTHER REQUIRED SETTLEMENT COSTS itemized in Section III. The precise services for each transaction may vary. See Attachment A-1 for an indication of whether we anticipate pest inspection, lender's title insurance and property appraisal services being included in your guaranteed mortgage package.

This guaranteed mortgage package price may include a maximum mortgage insurance premium based upon your assertion of the value of the property and loan amount needed. The mortgage insurance premium may decrease or be removed after full underwriting.

GUARANTEED MORTGAGE PACKAGE PRICE: $ _______

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III. OTHER REQUIRED SETTLEMENT COSTS:

In addition to the GUARANTEED MORTGAGE PACKAGE PRICE, you are or may be required to pay advanced mortgage and hazard insurance premiums, and to establish escrow reserves at settlement. Some of these costs may vary depending on when your loan closes and how much insurance you are required to obtain. No cost may be imposed on you at settlement that is not specifically itemized and estimated in this Section other than the Guaranteed Mortgage Package Price.

A. Per Diem Interest (HUD-1 900 Series)
Per Diem at $ ______ @ _____ days with an estimated settlement of ______. $ _______

B. Reserves/Escrow, (if required) (1000)* $ _______

C. Hazard Insurance (900) $ _______

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IV. OPTIONAL OWNER'S TITLE INSURANCE (1100) $ _______

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TOTAL ESTIMATED SETTLEMENT COSTS
(SUM OF SEC. III, IV, AND V): $ _______

* Generally, pursuant to federal regulations, the amount stated in line B may not be exceeded at settlement by more than 10% absent unforeseeable and extraordinary circumstances.

V. OPTIONS TO PAY SETTLEMENT COST & LOWER YOUR INTEREST RATE

A. Cash Payment at Settlement: You may pay all or part of you required settlement costs at settlement using your available funds.

B. Borrowing Additional Funds to Pay Settlement Costs: You may be able to pay all or part of your settlement costs by borrowing the needed funds as part of your mortgage loan principal. If you chose this option, your monthly payments will increase.

C. Pay Settlement Costs Through a Higher Interest Rate:
You may be able to lower your settlement costs in exchange for paying a higher interest rate on your mortgage loan. This higher interest rate will increase your monthly payments.

D. Lower Your Interest Rate:
You may be able to lower the interest rate on your loan by paying additional funds at closing, commonly referred to as "discount points." The reduced interest rate will lower your monthly payments. The following table will show you how higher and lower interest rates affect your loan and loan payments.

GMPA Terms You Selected Higher Interest Rate Lower Interest Rate

New Loan Balance $100,000 $100,000 $100,000

Interest Rate 7.00% 7.25% 6.75%

Monthly Principle & Interest & PMI $700.30 $717.18 $683.60

GMPA Price $2,600 $1,600 $3,600

Change in Cash to Close From GMPA Terms You Selected $1,000 less $1,000 more

Change in Monthly P,I, & PMI from GMPA Terms You Selected $16.88 more $16.70 less

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VI. ADDITIONAL LOAN TERMS

[ ] This mortgage IS subject to Prepayment Penalty.

[ ] This mortgage IS NOT subject to Prepayment Penalty.

[ ] This mortgage HAS a balloon payment of ______, which will be due on ______.

[ ] This mortgage DOES NOT HAVE a balloon payment.

Adjustable Rate Mortgage (ARM) Loans

This is an Adjustable Rate Mortgage (ARM) Loan. The initial interest rate for this ARM loan is _______. The first adjustment will occur after ______ months/years and every _______ months/years thereafter for a period of _______ months/years. The interst rate is based on adjustment. The maximum rate increase adjustment per period is ______ and the maximum interest rate that can ever apply to this loan is ______.

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VII. Guaranteed Mortgage Package Agreement:

We are providing this GMPA to you at no cost. If you agree to seek a mortgage loan using our services within 30 days, by signing, dating, and returning this GMPA to us on or before ________, along with a $______ application fee, we will be contractually bound to the terms of this GMPA provided that you qualify for this mortgage based on your credit rating, the appraisal, and other appropriate criteria ______________________________.

_____________________
Signature of Authorized Agent _____
Date _________________
Signature of Lender _____
Date

___________________________________
Signature of Borrowers
_____
Date

-- Posted: July 18, 2002

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