TOPICS OF INTEREST TO HABITAT AFFILIATES

May 14, 2011

FROM: J. Terry Ryan, President —
Multi Financial Services Co., Inc. — Tallahassee, Florida

Dear Habitat Friends,

In a communication a few weeks ago regarding items to consider in choosing to outsource your mortgage servicing, I suggested:

Recently, I was strongly asked/requested to suggest to you the following additional concerns to research and ask when searching for an outside mortgage servicing company:

  1. Obtain a Dun and Bradstreet (D&B) Credit Report — This is so true! It provides an excellent summary of not only the company's history but also a long term summary of past credit payment history, as well as future payment expectation for the company. As such, Multi Financial Services Co., Inc.'s D&B Paydex credit report summary is available on its website: www.multi-fin.com — please choose the References tab.

    As indicated in prior e-mails, bank and affiliate references as well as our auditor's annual summary audit letter are located within this References link. Please review and if you have ANY questions, please contact me anytime. I and my staff are VERY happy with our past history, credit and overall company soundness, especially, during these times of uncertainty;

  2. Have they ever been declined for licensure by any state? Multi Financial Services Co., Inc. has never been declined and in fact has been consulted regarding proposed state law/statutes changes in various states. Personally, I was appointed to the Florida Task Force to re-write our mortgage license laws several years ago.
  3. Has the mortgage servicing company and/or its parent company and/or any subsidiaries ever been declined AND/OR had prior approvals declined by any Federal mortgage agencies? We have never applied for Federal Agency approvals since we feel we should be licensed by individual states; thus, meeting their own consumer oriented regulations. So, NO on both questions.

Please contact me anytime should you have any questions/concerns on the above.

SAFE ACT AND MORTGAGE ORIGINATORS

I've been asked many times recently about the federal government's SAFE Act and the effects it may or will have on Habitat affiliates. Some states have exempted non-profit affordable housing organizations and some have not. So, what is the future? What are my suggestions?

First, I have, also, been asked on several occasions if Multi Financial Services would be interested in originating loans for affiliates and then service these same loans. Although I and my staff certainly appreciate these offers and have the experience in originating, processing, and closing loans, I have to decline, since I feel this is a CONFLICT OF INTEREST to perform both services for any outside entity. As a retired commercial banker of almost twenty years and now a mortgage banker for over twenty-two years, I have, naturally, been a part of both processes: mortgage originating and mortgage servicing as well as being very schooled on ethical concerns in both areas.

IF, I were originating loans for Multi-Financial's loan portfolio, of course we would service our own loans. However, for outside entities (affiliates) I believe if there is ANY likelihood of even a hint of a concern either now or in the future because of any questionable action (real or imagined) occurring in the originating process and then us receiving long-term fees for servicing a loan(s) as a result of those actions, then I, as the president of Multi-Financial, ethically feel I should bow out of any requests to perform originating of new loans.

On the other hand, I, personally, have taken and passed both the national SAFE Act test and the originator's license test for the State of Florida (required even for servicing only companies). Prior to taking each test, I took several required courses plus pre-test courses and was, therefore, very prepared when going into the test and passed with "flying colors".

During the whole originator licensing process, my belief was reinforced that anyone involved in ANY part of the mortgage business these days requires appropriate knowledge of the various federal and state laws regulating mortgage lending; most especially, those statutes and rules protecting the consumer: your Habitat families. This is even more so when it comes to knowing your own state's mortgage related laws which CAN be different from state-to-state, especially, when it comes to past due collections.

As such, I now suggest that an affiliate consider the following options in order to meet requirements of the SAFE Act and state regulations:

The following is a link to a list of state National Association of Mortgage Brokers state organizations:
http://www.namb.org/namb/Web_Sites.asp?SnID=283907058
to be contacted if you wish to pursue this suggestion.

As always, thank you to those who are either our servicing clients or Trakker Loan Servicing Software clients. To everyone else, please let me and my staff know if we can ever be of assistance in your wonderful efforts of meeting the housing needs of those so much in need. Let me invite you to visit our websites below for additional information on our services. (should you wish to be removed from future e-mails, please REPLY and indicate REMOVE).

Best of Wishes!

Terry

J. Terry Ryan, President
Multi Financial Services Co., Inc.
& Trakker Loan Servicing Software
2580 Care Drive
Tallahassee, Florida 32308 USA
PH: 800-326-4112
Tallahassee: 562-6466, ext 3307
FAX: 850-656-3655
Web: Trakker: www.thetrakker.com     Multi Financial: www.multi-fin.com