New Client Orientation (CRR Copy)

New Client Orientation

This information is for use by mortgage professionals only and

should not be distributed to or used by consumers or other

third-parties. Information is accurate as of date of printing and

is subject to change without notice. Wells Fargo Funding is a

Welcome

We are pleased to have you as a newly approved Correspondent Seller.

This orientation will provide the tools you need to successfully submit your loan files to

Wells Fargo Funding. By learning more about our operational process and the various

teams available to support you, your transactions will flow more smoothly and ultimately

result in a better experience.

Orientation Agenda

Please note:

 The content shared in this

presentation is accurate as of the

date of this orientation call and is

subject to change.

 Sellers are strongly encouraged to

consult with their compliance and

legal counsel for questions specific to

their own internal processes and risk

controls.

 Sellers submitting loans to Wells

Fargo for purchase do so subject to

the terms and conditions of the Wells

Fargo Funding Loan Purchase

Agreement and the Seller Guide.

Slide Description

Getting Started

Products

and Programs

4-5

Best Effort

Pricing

PerformanceWorks

7-8

Underwriting

9-10

Delivery & Review

Funding

Final Docs

13-14

Lender Servicing

16-17

Closing

– Resources, Communications and Next Steps

20-22 Helpful tips for navigating Wells Fargo Funding Website

Getting Started

You should have already received:

 Client Account Details

 Regional Contact Listing

 Other resource documents

You will also receive:

Access to wellsfargofunding.com

Note: The primary and secondary administrators for the

Wells Fargo Funding website are responsible for managing

user access to all wellsfargofunding.com users within your

company. This includes adding users to the site, maintaining

security settings for each user, and end-dating users who no

longer need access.

Products and Programs

Innovative products and programs to help grow your business

Products

Conforming Conventional

 Fixed 10, 15, 20 and 30 year

 5/1, 7/1 and 10/1 LIBOR ARMs

Non-Conforming Conventional

 10, 15, 20, 30 year*

 5/1, 7/1 and 10/1 LIBOR ARMs*

Government

 Fixed 15, 20, 25, and 30 year

 5/1, 7/1 and 10/1 FHA/VA

ARMs

Programs

 Conforming and Government High Balance

 FHA Streamline Refinance

 VA Interest Rate Reduction Refinance Loans (IRRRL)

 Relocation

 DU Refi Plus

 Home Opportunities

 Fannie Mae’s Home Ready

 Freddie Mac’s Home Possible

 Freddie Mac’s Home Possible Advantage

 Guaranteed Rural Housing (GRH) Loans*

 Texas cash-out Refinance not falling under Section

50(a)(6) are eligible for purchase by Wells Fargo.

Seller Guide section 820.40.

*Separate approval or delegation levels may be required on some of these products and programs.

Property Types

Property Types:

 Condominiums

 Planned Unit Development (PUD)

 Cooperative (Co-op)

 Single Family

 Second Homes

 Investment Properties

Best Effort Pricing and Locking

Wells Fargo Funding offers Best Effort locks from 7 to 75 days. (Seller Guide Sections(s) 420.02)

Extended locks are also available on a variety of Agency and Non-Conforming* products. For an upfront,

non-refundable fee, this program allows a Seller to enter into a long term Commitment. (Seller Guide

Section 425.07)

 ARM Loans, High Balance, Super Conforming: 90 - 180 days

 Fixed-Rate Loans: 90 - 360 days

 Non-Conforming* Loans: 90 days

*Separate approval or delegation levels may be required on some of these products and programs.

Registration and Locks – 3 convenient options

Website Phone Fax

wellsfargofunding.com

 Start New Loan

 Select either the Register

Loan or Price/Lock Loan

option

Locks are accepted via the Wells

Fargo Funding website Monday –

Friday from 9 a.m. – 11 p.m. CT.

Registering and locking loans may be completed

by contacting the Priceline Department at

1-800-328-5074, option 1.

Please have the following information available:

 Borrower information - name, SS #, address,

credit score, etc.

 Property information - address, type, value, etc.

 Client information - client ID code, contact,

phone, fax, etc.

 Transaction information - program, purpose,

loan amount, LTV, etc.

 Interest rate

 Lock period

A Priceline Representative is available

Monday – Friday from 8 a.m. – 6 p.m. CT.

(Seller Guide Section 420.01)

Registrations and locks are also

accepted via fax. Simply fax

Form 03 – Agency registrations

and locks to 1-866-831-0407.

Locks are accepted via fax

Monday – Friday from 8 a.m. –

8 p.m. CT.

(Seller Guide Section 400.03)

Note: For information on Mandatory commitments, contact your Regional Sales Manager.

Best Effort Pricing and Locking (cont.)

Loan Confirmations - Loans processed via Priceline or via wellsfargofunding.com will have a confirmation that you will be

able to print. Please log onto wellsfargofunding.com to validate changes or to print a confirmation (Seller Guide Section

420.05)

Loan Pricing - Loan pricing is calculated as the Market Price + SRP +/- any applicable adjusters as posted on the rate

sheets. Refer to the SRP Schedule provided by your sales team.

Repricing - Loan files are to be closed and delivered by the Delivery Expiration Date.

Number of calendar days Fee

Daily Adjuster (.025)

If then

If Seller is not able to comply with the Delivery

Expiration Date

Extensions can be executed on Best Effort locks that are still active for any number of

days that may be needed, and more than one extension is allowed per loan. Extensions

are not available on Loans that have expired. (Seller Guide Section 425.02)

Relocks will be executed if a loan is not closed/disbursed by Commitment Expiration,

but does so within the first 30 days after expiration. These are executed for 30 days and

are done at WOP (worst of price). (Seller Guide Section 425.03)

If in an improving rate environment Terms of a Commitment may be renegotiated if the result is a minimum 0.125%

improvement in rate to the borrower. (Seller Guide Section 425.06 - Renegotiations)

If Seller has closed the loan within the

commitment period, but failed to deliver it by

the Delivery Expiration Date

A late delivery fee will be charged. (Seller Guide Section 425.04 - Late Delivery)

If Seller has not cleared suspense conditions

within the allotted amount of time

A suspense fee will be charged. (Seller Guide Section 425.05 - Suspense Fee )

If a loan is cancelled or denied within the first

30 days after expiration

A re-submission will be required and must be submitted directly to Priceline by phone.

Contact Priceline for details. (Seller Guide Section 420.10 - Re-submissions)

Extensions, Late Delivery*, and Suspense fees are based on the following schedule:

*An additional fee of (.125) will be assessed on all Late Delivery loans.

PerformanceWorks

Plan

Take your best efforts to a whole new level

The PerformanceWorks

plan gives credit for maintaining a clean and efficient Best Effort pipeline with Wells Fargo.

 By meeting certain criteria based on performance, Sellers may be eligible for up to twenty (20) additional basis points

on all Best Effort production sold to Wells Fargo.

 Delivering loans early and cancelling loans that will not be delivered are factors that will increase the benefits of the

PerformanceWorks plan.

 Sellers will be placed into one of the following Benefits Levels for a Program Period of three months, based on their

average Performance Score during the three months ending one full month prior to the applicable Program Period (the

“Performance Assessment Period”). Clients will receive the applicable cost or benefits during each Program Period.

Level

Performance Score

Fee

Benefits to You

80% or greater

None



Waived lock fee



More flexible float-to-current option*



20 basis point pay-up

65% or greater,

but less than 80%

None



Waived lock fee



More flexible float-to-current option*



15 basis point pay-up

50% or greater,

but less than 65%

None



Waived lock fee

Less

than 50% 25 bps lock fee

Billed on loans that are

locked but do not fund

*Flexible float-to-current option is available on conventional conforming and government products only. If the market moves

100 basis points in price, clients may float down a maximum 20% of previous month’s lock volume.

Underwriting

Conventional

underwriting

Guidelines

For complete underwriting guidelines for all products and programs, please refer to the Wells Fargo

Funding Seller Guide located on wellsfargofunding.com. (Seller Guide Section(s) 800-850)

General

underwriting

Policies

When submitting your Prior Approval files for underwriting, some general policies should be followed:

 All loan files must be registered and/or locked prior to submitting. You will not be able to upload

your file if it is not registered or locked first.

 Each loan must contain the required minimum underwriting standard documents as outlined on

Loan Document Checklist (Form 2)

 The Loan Submission Summary (LSS) (Form 01) is required for delivery with credit packages

for lender contact information.

 When applicable, an additional appraisal review may be required. See Seller Guide Section 800.10

for a list of approved Appraisal Management Companies (AMCs).

 All applicable underwriting fees will be billed to the Seller for any Prior Approval loan that is

declined or remains undelivered.

Wells Fargo Funding

Prior Approval

This option is available all clients who would like to have Wells Fargo Funding underwrite their loan

files. An underwriting fee of $350.00 will be assessed on all Prior Approval underwritten loans. See

Seller Guide Section(s) 805.05 for any product/program restrictions.

Delegated

underwriting

The Seller must receive prior written approval from Wells Fargo Funding for Delegated Underwriting

authority. Approvals are based on, but not limited to; low delinquency rates, experienced

conventional underwriters and compliance with minimum tangible equity (ATE) requirements as

established by Wells Fargo Funding.

Each Seller is unique so a variety of factors are taken into consideration for approval. (Seller Guide

Section 805.05)

Underwriting (cont.)

Scenario Helpline

Count on answers when you need them from the Scenario Helpline team.

Phone: 1-800-328-5074, option 2

Email: scenario.helpline@wellsfargo.com

Fax: 1-866-494-8905

Note:

 All underwriting exceptions must be submitted to the Scenario Helpline using Form 19.

 Specific loan files being underwritten by Wells Fargo Funding should be addressed to the individual underwriter.

 Loan status should be directed to Client Relations.

 We are unable to answer closing related questions – please direct inquiries to your internal closing team.

Automated

underwriting

Loan Product Advisor

(LPA) and Desktop Underwriter (DU) are permitted on most products that

Wells Fargo Funding purchases.



Prior Approval Loans that have been run through LPA/DU will have an underwriting fee of

$350.00.



Waiver of LPA/DU conditions is not allowed. Wells Fargo Funding’s guidelines will be applied

whenever LPA/DU does not address a specific topic.



Wells Fargo will continue to sponsor lenders that are not Fannie Mae-approved and do not

have access to DU directly. Sellers should contact a member of their sales team if they need

access to DU through a sponsoring lender.

(Seller Guide Section(s) 805.06 & 805.07)

Delivery and Funding Review

General loan

delivery

requirements

 For complete details, refer to Seller Guide Section 500 and specifically section 505 for Delivery of

closed loan package.

 Each loan package must be uploaded on wellsfargofunding.com using a unique loan number.

Uploading multiple loans using the same number will cause delays in the review of your file(s).

 A loan file is considered “Delivered” when the closed package is received along with a copy of

original note.

 If any documents are missing from the upload, Wells Fargo Funding will suspend until the item(s)

are received.

Required

documents

 For complete details on required documents, please refer to of the Seller Guide Section 505.

 Our Loan Submission Summary is required on certain loans.

 The Loan Document Checklist (Form 02) is also provided, but not required.



To optimize turn times, please ensure that the original note is endorsed to Wells Fargo Bank, N.A.

and delivered no later than the loan delivery date. Send to:

Wells Fargo Funding

2701 Wells Fargo Way

MAC#: X9999-014

Minneapolis, MN 55467

 A copy of the wire instructions needs to accompany each note delivered for review.

Delegated underwritten Loans

When a client provides complete Loan data via Uniform Loan

Delivery Dataset (ULDD), through Encompass or direct to

wellsfargofunding.com

LSS is

not required.

Prior Approval underwritten Loans

When a client provides complete Loan data via Uniform Loan

Delivery Dataset (ULDD), through Encompass or direct to

wellsfargofunding.com

LSS

is required. Files with

missing or incomplete LSS

Form will be suspended.

All other Loans

1010

Delivery and Funding Review (cont.)

Purchase Clearing

 An all-inclusive suspense report is available on wellsfargofunding.com for your review of any

deficiency detected in the loan file during the funding review process.

 Sellers are required to clear all suspense conditions within 7 calendar days to avoid suspense

fees. Fee calculation will begin the day following the initial suspense date or the delivery

expiration date, whichever is later. (Seller Guide Section 425.05)

 Upload suspense conditions via wellsfargofunding.com.

Note: If unable to upload to the website, send suspense conditions via email to

CorrOpsPurchaseClearingConditions@wellsfargo.com or fax to 1-866-972-8731 with cover sheet

that includes Wells Fargo Funding Loan Number (10 digits including leading zero), name of

sender, Seller’s loan number, and page count. See instructions in Seller Guide Section 505.14.

 For Loans that remain in suspense for 25-days, Wells Fargo Funding will email a Notice of

Pending File Return.



If the conditions are not cleared by the purchase eligibility expiration date, price protection

will be forfeited.

 A $60.00 administrative fee will be assessed and reflected on the Seller’s monthly billing

statement. (Seller Guide Section 505.02)

Purchase Clearing

Assistance

The Purchase Clearing Team is here to help answer your questions regarding your specific loan

suspense conditions.

1-800-328-5074, opt 4

PurchaseClearing@wellsfargo.com

Your Regional Purchase Clearing Specialist will support your pipeline management including loan

suspense performance reporting and trending, resolving file problems, suspense items, and other

escalated issues. Refer to your Regional Contact Listing for specific contact information.

1111

Funding

Funding Related Fees

Once all items are satisfied, the loan is submitted to the Funding Department to wire the funds to the Seller. Wells

Fargo will net the following applicable fees at time of funding.

Processing fees  $250 – Conventional (Conforming and Non-Conforming*)

 $250 – FHA

 $250 – VA

 $250 – Guaranteed Rural Housing

Tax Service fee Refer to Seller Guide Schedule B

Additional fees  $10 – RUSH hazard remit fee

 $4 – Flood fee; only charged if using flood vendors other than those listed below and/or if the policy

submitted does not reflect a Life of Loan certification

− AFR Services

− CoreLogic

− CoreLogic Credco

− CredStar

− Elite Lender Services, Inc.

(an FDSI affiliate)

− Frisco Lender Services, LLC

− Informative Research

− ServiceLink National Flood, LLC (fka LPS National Flood

)

− QuestSoft

− UPF Services, LLC

− Wells Fargo Flood Service

 $350 – Underwriting fee

Purchase Advices - A funding invoice report (or purchase advice) may be obtained via the Wells Fargo Funding

website. See “Reports” under Loan Management.

Goodbye Letter - Wells Fargo Funding strongly suggests that the Seller delay sending a Goodbye letter to the

borrower until the loan is funded by Wells Fargo Funding. The borrower help line 1-866-234-8271 must be noted on

the Goodbye Letter. (Seller Guide Section 560.01)

*Separate approval or delegation levels may be required on some of these products and programs.

1212

Final Documents

Final Document

Delivery

 Final documents must be reviewed by the Seller for accuracy and delivered to Wells Fargo Funding

within 270-days from the date of purchase to avoid being billed a late charge ($100) per missing

document, on a monthly basis.

 The Document Performance Detail (DPD) report outlining outstanding documents is available online

at wellsfargofunding.com. See “Reports” under Loan Management.

 The Seller must include the Wells Fargo Funding loan number on the upper right hand corner of

each document or use the Final Document Transmittal Form (Form 05) in the Seller Guide.

 The Seller is responsible for using the most current Fannie Mae, Freddie Mac, FHA, or VA forms

except for those alternative documents for Construction-to-Permanent loans or Cooperative loans

and ensuring that all documents conform to applicable state and federal laws.

(Seller Guide Section 565)

Final Document

Delivery Address

Refer to your Regional Contact Listing for mailing address for:

 VA LGCs and Rural Housing LNGs

 All other final documents

Mortgage

Electronic

Registration

System (MERS)

Wells Fargo

MERS#: 1005298

 The Seller must use MERS when selling Loans to Wells Fargo.

 Fees may apply if the Seller does not initiate the Transfer of Beneficial Rights (TOB) within 5

calendar days of effective transfer date, which is the date of loan purchase by Wells Fargo.

 Fees may apply if the Seller does not initiate the Transfer of Servicing Rights (TOS) within 5

calendar days of effective transfer date, which is the date the first payment due to Wells Fargo.

 MERS as Original Mortgagee (MOM) loans must be registered within seven calendar days of:

o The Note date for non-escrowed states or

o The funding date for escrowed states

(Seller Guide Section 505.15)

Final Documents

Assistance

The Post Purchase Lender Relations team is here to help with final documents or MERS related issues.

Refer to your Regional Contact listing for specific contact information.

1313

Lender Servicing

New Loan Reconciliation Department (NLR)

NLR will assist with servicing discrepancies and issues that need to be addressed after a loan is funded.

Post Purchase Servicing Inquiries

Wells Fargo Funding will begin actively servicing the purchased loan immediately after funding. Typically, servicing does not

begin until the Transfer Date, which is the first payment due to Wells Fargo Funding.

 If you have a Servicing Department, it is highly recommended that you place Stops and/or Flags on the loan(s) that you

submit to Wells Fargo Funding. Any Servicing transactions that attempt to be processed on loans out for purchase should

be reviewed by the appropriate area to avoid duplicate efforts by the Seller and Buyer. Wells Fargo Funding would also

request that you, the Seller, provide us with any updated information prior to funding.

 Lenders must comply with all RESPA regulations regarding escrow calculations. (Seller Guide Section 515.04)

 Escrow balance or Escrow funding discrepancies should be reconciled with Wells Fargo within 60-days of funding of the loan.

This is to ensure that if funds are owed to you, we can remit them prior to the loan going through an Escrow Analysis. Once

a loan is analyzed, we will not be able to return any escrow funds that may have been owed to you.

 Lenders must request any borrower payments from Wells Fargo within 60-days of Wells Fargo purchasing the loan(s). If you

are missing a payment, Wells Fargo Funding may be in a position to reverse a payment from the loan to make your records

current. The status of the loan may have an affect of the availability of the funds.

 All escrow discrepancies and payments must be requested using the Request For Escrow Funds or Monthly Payment

(Form 06).

Mailing Address Help for Lenders Help for Borrowers

Wells Fargo Funding

4800 W. Wabash Ave.

MAC F2803-027

Springfield, IL 62711

1-800-328-5074, option 6, then option 1

NLR-CorrespondentResearch@wellsfargo.com

This number is for you only.

Do not provide to borrowers.

1-866-234-8271

This number must be noted

on the Goodbye Letter.

1414

Lender Servicing (cont.)

Wire Transfer and Amortization

 See Seller Guide Section 530.01 for the Amortization Schedule

 Government insurance (MIP) is treated differently than Conventional (PMI). Wells Fargo Funding will take all

of the MIP premiums due unless we are purchasing a seasoned loan. If a loan is sold to Wells Fargo Funding

with a January payment due to the Seller and February payment due to Wells Fargo Funding, we will fund and

remit the MIP premiums for both months. (Seller Guide section 545.12)

 Conventional insurance (PMI) is funded based on the first payment due to Wells Fargo Funding. Therefore, if

we purchase a loan with a January payment due to the Seller and a February payment due to Wells Fargo

Funding, we will fund and remit the PMI premium for February only. (Seller Guide section 545.13)

Required Tax Information

 The Seller and Wells Fargo are required to pay tax installments in compliance with RESPA regulations, Wells

Fargo Home Mortgage determines the tax due date by using the Discount Date or Delinquent Tax Due Date,

when applicable, provided by each taxing authority, which dictate payment dates most beneficial to the

Borrower. The Seller is responsible for all tax payments with Delinquent Tax Due Date or discount dates

prior to Loan delivery and/or within 45 days of funding.

 If Wells Fargo finds delinquent taxes for the installments which the Seller or their representative were

responsible for paying, the Seller must pay the base taxes and any penalties incurred. The Seller is also

responsible for paying any penalties that result from nonpayment of taxes prior to Loan delivery and/or

within 45 days of funding. (Seller Guide; 560.07: Tax Penalties)

1515

Resources and Communications

Seller Guide

Access our official Wells Fargo Funding Seller Guide

that contains credit policy/underwriting guidelines,

Reps and Warrants, forms, exhibits, Quick Reference

Guides and more in the Info Gallery on

wellsfargofunding.com.

Newsflash

Newsflash communications are sent via email to keep

you informed of important changes to policy and

delivery requirements and amends the Seller Guide in

accordance with your Loan Purchase Agreement.