join the network

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J O IN THE NET W OR K

THE CONTENT OF THE NETWORK

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T HE FO U ND AT I O N

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T HE STO R Y

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T HE NE T W O R K

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T HE IM A G E

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T HE P R O D U CTS

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T HE P R O CE S S

Loan Process Diagram

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T HE S Y ST EM S

Loan Origination System & Customer Relationship Management

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T HE S A FE T Y

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T HE ST R EN GT H

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T HE M O NE Y

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T HE G ENE R O S I T Y

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T HE D IFFE R EN CE

Mission, Vision & Founding Principles

History & Executive Bios

States, Locations & Regional Managers

Websites & Marketing

Loan Products, Investors, Secondary Marketing, AUS & LPE

Compliance, Legal & Licensing

Processing, Underwriting & Closing

Comp Plans & Benefits/Growth

The Restoration Project

Onboarding, Support Team & Internal Communication

T H E F O U N DAT I O N O F T H E N E T W O R K Can a company’s way of doing business really impact its industry, the lives of its clients and the well being of its community? We believe it can and should.

FO U ND IN G P R IN CIP L E S

GOD

We believe our highest aim in being a great company is to glorify God.

FA MILY

MI S S I O N Our mission is to revive the American Dream of owning

We believe in families and that they are the backbone of society.

a home by serving every client with integrity, keeping the

H O ME

process simple and getting the job done on time.

We believe homes are for people, not just profit.

IN T EG R I T Y

We believe in doing the right things, even when they are hard.

Our vision is to set the standard for how to do business within the mortgage industry. We want to grow both

R EL I A B IL I T Y

We believe in getting the job done and getting it done on time.

the size and impact of our company by investing in communities, helping families and restoring dreams.

S IMP L I CI T Y

We believe in making the loan process simple for our clients.

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T H E S T O RY O F T H E N E T W O R K Network Funding. It’s an interesting name for a mortgage company, but it’s one that communicates both

R EX CH A M B E R L A IN CEO

our vision and our story. In 1998, two longtime colleagues, Buzz Baker and Rex Chamberlain, set out to

Rex Chamberlain has served as Chief Executive Officer since co-

be different from the competition by creating a network of mortgage professionals driven by values, not just

founding Network Funding with Buzz Baker in 1998. Previously,

profit. They took this idea and turned it into a reality by creating Network Funding.

Chamberlain served as a loan officer and then a district manager

From the beginning of Network Funding, we set ourselves apart from other financial institutions in both design and essence. We began providing branches with loan product availabilities of a mortgage broker

for North American Mortgage Company. He has also served as the regional manager for Irwin Mortgage Corporation. Chamberlain holds a degree in Business Administration from the University of Houston.

coupled with the administrative strength of a larger financial institution. Consequently, our branches were free to focus on what mattered most, our clients. Quickly becoming a national player, we experienced branch growth across the country and our annual production soared to over $2 billion in fundings.

B UZ Z B A K ER P R E S ID EN T

In the years that followed, we worked hard to become known by our integrity. As the ethical dilemma and the imminent future danger involved with sub-prime loans, alternative credit programs and other exotic

Buzz Baker has served as President since he co-founded

mortgage options became apparent, we saw that many of these programs placed families at increased risk

Network Funding in 1998. With more than 25 years experience

by granting them loans they wouldn’t be able to afford and most wouldn’t understand until it was too late. It was then that we decided that we would rather forgo profit than compromise on our principles and put our customers at risk.

in the mortgage industry, Baker served as a loan officer and then a producing manager for North American Mortgage Company. He has also served as the production manager and wholesale manager for Irwin Mortgage Corporation. Baker holds a degree in Finance from Stephen F. Austin State University in

Inevitably the housing crisis of 2008 arrived, crushing the financial institutions that preferred quick profits

Nacogdoches, Texas.

over higher principles and leaving the dreams of so many in shambles. As banks and lenders across the nation failed, we grew. While many felt the American Dream was dying and the entire mortgage industry was on the brink of collapse, we began to thrive more than we ever anticipated, showing there was still hope in an industry marred by unethical practices. Being one of the few mortgage companies to grow through the crisis, our reputation now precedes us. So

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B R ET T S N O RT L A ND N AT I O N A L P R O D U CT I O N M A N A G E R

Brett Snortland began his career with Network Funding in 2008 with the primary role of helping grow the network. During his tenure, Network Funding has expanded from 11 states to over 30. With more than 20 years experience in the mortgage

as we look to tomorrow, we know the principles on which we were established will be the foundation upon

industry, Brett has a renowned ability to build successful sales

which we continue to grow. Integrity, reliability and simplicity are our standards; funding the American Dream

teams and has a goal to grow the company to $5 billion per year

is our goal.

in fundings. He holds a degree in Business Administration from The University of Texas at Austin.

O U R D R E A-FredMFiedler , O UR S TImproving O RLeadership Y . Eff & Martin Chemers, 7

THE NETWORK OF NETWORK FUNDING

RICHARD JEFFERSON LORNA D AV I S

Providing a primary contact person for every branch, our Regional Manager structure gives each branch their greatest asset: relationally advocacy. Helping branches build stronger connections with both the corporate office and the outside world, our Regional Managers are “hands-on” people with a laser focus on the growth each branch.

Lorna Davis

WA MT

Randy Martin

ME

ND VT

MN

OR ID

WI

SD

RANDY M A RT I N NV

IL KS

AZ

PA

IA

CO

CA

OK

NM

TX

OH

IN

MD WV

MO

VA

KY

AR

SC AL

Craig Herzog

CRAIG HERZOG

LA

FL

HI

DE

GA

AK

GEORGE BAUDER

NJ

NC

TN

MS

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CT RI

MI NE

UT

MA

NY

WY

NH

Shelly McFadden

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THE IMAGE OF THE NETWORK ST R AT EGI C PA RT NE R : S PA CECR A FT ( G O S PA CECR A FT . C O M )

W EB S I T E S With a new generation of homebuyers taking over and the Internet’s role ever increasing in the home buying process, Network Funding is poised for continued success. Through our partnership with SpaceCraft, we possess one of the most advanced websites in the industry. Every branch is given a beautiful site on our platform that is connected to our main site. This allows us to drive traffic (potential borrowers) from our national or regional advertising campaigns straight to the person who will help them the most, the Loan Officer.

M O B IL E A P P In addition to a personal application page and specific client portal, Loan Officers are also given their very own customized Loan Officer smart phone app. The smart phone app is just another way to help our referral sources and borrowers connect with their loan officers on their mobile devices.

S EO / S EM SpaceCraft also provides Network Funding with high-level Search Engine Optimization and Marketing on both the corporate and branch levels. By being a part of the Network Funding website platform, branches are able to participate in localized online ad campaigns as well as benefit from national campaigns run through the corporate office.

A N A LY T I CS Branch Managers have the ability to receive weekly reports on the performance of their website, giving them first hand access to the type of traffic their site is receiving as well information on any SEO/SEM campaigns they may be participating in.

ST R AT EGI C PA RT NE R S : CR E AT I V E EL EMEN T & PA G E IN T E R N AT I O N A L When it comes to branding, we believe in the power of a unified national brand as well as the effectiveness of local personalization. Our partnership with Creative Element and Page International provides the level of design and marketing support our branches need in order to rise above their competition. 10

M A R K E T IN G L IB R A R Y

AD HOC

The Marketing Library, provided through our intranet, gives our branches an online shopping experience that customizes most of their marketing needs with pre-approved material. Whether it’s new business cards, apparel, flyers or signage for an expo, the Marketing Library gives employees the ability to order what they need, customize their information, select when they’ll receive it and watch the fulfillment’s progress.

Creative Element’s team of designers is available to our branches to provide Ad Hoc design services for any project that is outside of the current offerings of our Marketing Library. 11

THE PRODUCTS OF THE NETWORK

S EC O ND A R Y M A R K E T IN G . . . T H AT ’ S S EC O ND TO N O NE

Network Funding is proud to be a Triple Eagle (direct Fannie Mae, Freddie Mac and Ginnie Mae) seller

• Lock request submissions via LendingQB

• Risk management reporting

and servicer. Our strong warehouse lines and established investor relationships help us provide some of

Automated Underwriting and Loan Pricing

• Purchase advice reconciliation

the most competitive pricing in the industry on the most important loan products.

Engine

• Interim servicing

• Rate lock confirmation email notification

• CONVENTIONAL

• VA

• HARP 2.0 LOANS

• FHA

• REVERSE MORTGAGES

• BROKER OPTIONS

• FHA 203K

• JUMBO LOANS

• Rate lock tracking and audit history A U TO M AT ED U ND E R W R I T IN G & LO A N P R I CE EN GINE

IN V E STO R S

• Accurately determine loan eligibility based on

At Network Funding we’ve always believed in having options. That’s why we strive to maintain quality relationships with all of our investors. Direct pricing and in-house underwriting with the best investors in the industry:

• Complete utilization of borrower credit report

investor overlays and guidelines data • Comprehensive library of pre-built investor products

• FNMA

• CITI

• CALIBER HOME LOANS

• FHMLC

• CITI TVLB

• DITECH

• GNMA

• BB&T

• REDWOOD

• WELLS FARGO

• FREEDOM MORTGAGE

• TITAN CAPITAL SOLUTIONS

• CHASE

• FRANKLIN AMERICAN

• WESTSTAR

• Investor guideline updates and management • Customized overlays for lender-specific eligibility criteria • Complete design, build and maintenance of

• Pricing derived from lender-specific investor rate sheets • Automated rate sheet process downloads new pricing every five minutes • All loan level pricing adjustments included • Customized overlays for lender-specific price adjustments • Automatic rate sheet expiration prevents locks on stale pricing

custom loan products Completely integrated into lending workflow

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PAT R I C K P U RC E L L

M M

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E C A A

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O K N

N E A

D

A

R

Y

With our own guidelines and minimal overlays for most products, Network’s strength

T

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in the Secondary Market is what enables us to truly set ourselves apart from the

E

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competition in regard to underwriting and approving loans.

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We know that mortgages are complex, so we try to simplify the Loan Process whenever possible for our

THE PROCESS OF THE NETWORK

borrowers. By de-mystifying the Loan Process and empowering our borrowers through educational resource material, we have found that a “simple” mortgage experience leads to more referrals than just about anything.

OR IGIN ATION

PRO CESSING

UNDERW RITING

CLOSING

1. APPLY Apply with a Loan Officer to get pre-qualified

2. ISSUE

5. ORDER

7. UNDERWRITE

9. CLEAR

We issue the pre-qualification

We order the third party services, such as the appraisal

We underwrite to formally approve or deny the loan

We clear the file for closing

6. PROCESS

8. SATISFY

10. CLOSE

We process the file to prepare it for underwriting

Satisfy any conditions assigned by the underwriter

Close on your new home!

3. GATHER Gather your documents to complete your application

4. FIND Find a property and get it under contract

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THE SYSTEMS OF THE NETWORK 2 P O W E R FU L P L AT FO R M S , 1 S IM P L E R E S U LT : M O R E LO A N S

L END IN G Q B ( LO S ) LendingQB is our web-based endto-end, or as we refer to it: “Cradleto-grave” LOS. By having a system that ties in all of the major pieces of the loan process, LendingQB is able to increase our origination efficiencies by making sure that all of our departments are in sync on each file, eliminating mistakes and automating the workflow. LendingQB makes origination easier than it’s ever been before. By integrating pricing, compliance & QM checks, auto-calculating scenarios, pre-built disclosure packages, electronic document & disclosure delivery (DocuTech) and much more, this is easily one of the most exciting tools in the mortgage industry for Loan Originators.

B U Z Z BAK ER , PRES IDENT With all the changes in the industry, our Loan Officers were spending large portions of time on the tasks of originating rather than focusing on getting new business. The primary goal for us in switching to LendingQB was to correct that. LendingQB has given our Loan Officers the ability to spend less time on tasks and far more 16

time finding new loans!

Since switching to LendingQB, not only has origination become simpler (which is a core value at Network Funding) but my capacity to do more has drastically increased. I simply love this platform. BREN T BRUCE BRANCH MA NAGER , C A

M O RTG A G E R E T U R N S ( CR M ) Through Mortgage Returns’ Prospect Manager platform on the front-end, our Loan Officers have a single place to login where they can see status updates, track progress, set reminders and manage campaigns on all of their leads and loans. On the back-end (post closing), the Relationship Manager platform automatically tracks over 200 loan details on closed loans, automates direct mail & email campaigns, as well as triggers notifications when previous clients are eligible for a refinancing. Both platforms with Mortgage Returns are customizable by the Loan Officer so that the Loan Officer can be as hands-off or as hands-on as they want to be.

When it came to deciding on a direction for our Customer Relationship Management (CRM) system, we knew we wanted a customizable system that would “book-end” LendingQB. By helping us capture and retain business on both ends of the loan process (Lead Retention & Post Closing), Mortgage Returns does exactly that. BRE T T SNORTLA ND, PRODUC TION MA NAGER

• FU L LY IN T EG R AT ED W I T H L END IN G Q B • A U TO M AT ED EM A IL “ D R IP ” C A MPA I G N S TO P R O S P ECTS • T R A CK S 2 0 0 + LO A N D E TA ILS FR O M P R E V I O U S LO A N S • A U TO M AT ED D IR ECT M A IL TO CLO S ED LO A N D ATA B A S E 17

THE SAFETY OF THE NETWORK C O MP L I A N CE

M U LT I - L E V EL C O MP L I A N CE = P E A CE O F MIND O R I GIN AT IN G In the mortgage industry’s ever-changing regulatory landscape, reliable compliance is essential to the success and health of any lender. The multi-level compliance checks at Network Funding provide that protection to our loan originators by reviewing every loan at key stages throughout the Loan Process. Through LendingQB, our Compliance Department receives automated notifications and is able to review files “behind the scenes”. Causing minimal interruption to workflow, allows our loans to move smoothly from one stage to the next and keep everything on track for closing.

In order to stay compliant with all of the laws and regulations federally and in each state, Network Funding’s Legal and Licensing Departments work hard to keep everyone in the network safe, legal and licensed.

L EG A L Understanding the legal landscape in the mortgage industry is of paramount importance to us at Network Funding. Knowing how to prepare for new situations and navigate complicated legislation is not just vital at the corporate level but essential at the branch level as well. Our in-house attorneys and outside legal counsel are some of the best in the country and provide great support to everyone in the network.

Network Funding’s enduring legacy is in no small part due to the diligent efforts and keen insights of our attorneys. RE X C H A MBERLA IN , C EO

L I CEN S IN G The Licensing Department at Network Funding focuses on your license status, so you don’t have to. Network Funding provides continuing education courses and license renewals at no cost to the Loan Officer. When it’s time to renew your license, the Licensing staff notifies you and sends helpful instructions, reminding you of what you need to do and how to do it.

DENI S E M ARTINEZ, C OM PLI A NCE M ANAGER We strive to be the best in the industry when it comes to compliance so that our originators can have the peace of mind they need to focus on their main job… originating new loans. 18

In this new-age of mortgage lending, it’s essential for me to be with a lender I can trust. I brought my branch to Network Funding and have stayed a part of the network largely because Compliance is more important to this organization than it is to any other lender in the market. J AME S SPICE BRANCH MA NAGER, TX ( 2014 #1 PRODUCING BRANCH )

At Network Funding we want Licensing to be as little of an issue for our Loan Officers as possible. STA N ROD GERS, LIC EN SING MA NAGER

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THE STRENGTH OF THE NETWORK P R O CE S S IN G

Many lenders have a tendency to overlook the vital role of processing. At Network Funding we believe the quality of our customers’ experience hinges on the quality of our processors. CAREY BANNING, NATIONAL OPERATIONS MANAGER Network Funding places a huge emphasis on quality Processing because it directly effects our turntimes in Underwriting. By placing our corporate processing and underwriting departments under the same management team, our corporate processing teams are able work directly with our underwriters.

CLO S IN G The Closing Department is one of the most established and experienced departments at Network Funding. Providing reliable and consistent quality at the finish line is what keeps referral partners coming back and builds trust in our brand.

Our closing department makes me look good. They are extremely fast and informative. They are always on top of closings and correspond better than anyone in the industry with the title companies. Their willingness to stay late,

U ND E R W R I T IN G

come early or do whatever it takes is what When we started Network Funding, one of our top priorities was and always will be underwriting. We knew that if we wanted to establish ourselves as a major player in this industry, maintaining rapid underwriting turn-times would be essential. BUZZ BA KER, PRE SI DENT

makes them my favorite department at Network Funding. ROB HANLEN BRA NC H M ANAGER , T X

At Network Funding, our Loan Officers know they can rely on “lightning-fast” underwriting. We are committed to staffing and operating our underwriting teams in such a way to maintain 24-48 hour underwriting turn-times. By hiring the best underwriters in the industry and making sure they have reasonable workloads, the underwriting experience at Network Funding continues to be one of the standards in the industry.

K ELLY DEM ARCO, OPERAT IONS M ANAGER

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Network Funding’s Underwriting team prides itself on providing the best customer service in the industry. We separate ourselves by partnering with our sales force to find solutions, move loans quickly, and build the relationships needed to provide longevity and success to our branch offices.

Let’s face it, 24/48 hour underwriting turn-time is a must in this business and Network Funding consistently delivers. What sets our underwriters apart is their common sense and relevant approvals.  I have rarely had approval conditions that I did not agree with, and when I have, our underwriters have been open to discussion. And yes, they even answer their phones! BILLI WE ST BRANCH MA NAGER, FL (2014 ’ S #1 PRODUCER)

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THE MONEY IN THE NETWORK

G R O W T H - A NN U A L M O RTG A G E O R I GIN AT I O N G R O W T H O V E R $ 14 . 6 B IL L I O N FU ND ED O V E R $ 1 B IL L I O N IN S E R V I CIN G

C O MP P L A N S Network Funding offers competitive “tiered” compensation plans that vary based on lead source, property area and experience of the Loan Officer in the following ranges:

• RETAIL LOANS: 75 – 150 BPS

• INTERNET LOANS: 40 – 75 BPS

$2,400,000,000

12,431 UNITS

$2,100,000,000

11,541 UNITS

$1,800,000,000

At the end of the day, Network Funding cares about the growth of every

$1,500,000,000

Loan Officer. Our goal is to help you take your business to the next

$900,000,000

3,889 UNITS

$600,000,000

B ENEFI TS

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$300,000,000

539 UNITS

2013

2010

2001

0 1998

Network Funding gives you the flexibility to choose the benefits that make the most sense for you and your family. When eligible, we offer affordable health insurance for our employees, dependent coverage, dental, vision, 401k, and pre-tax accounts. We also offer several supplemental policies including life, short and long term disability, accident and more.

2,280 UNITS

3,483 UNITS

2007

RICH JEF FERSON, REGIONA L MANAGER

$1,200,000,000

2004

level and earn more doing it!

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THE GENEROSITY OF THE NETWORK T HE R E STO R AT I O N P R O JECT

GIFT M ATCHIN G

The Restoration Project is our initiative aimed at restoring the American Dream beyond just owning a home. We want to see families and communities restored physically, socially, emotionally and spiritually. The Restoration Project is how Network Funding’s employees are making a difference in their communities and around the world. The Restoration Project is not limited to employees of Network Funding either but open to anyone who wants to come alongside of us and help make a difference in the lives of others.

Through sponsored “Matching Campaigns” Network Funding matches employees gifts to specific causes and organizations throughout the year. Visit www.therestorationproject.foundation for a list of causes and campaigns that are available, as well as details regarding the gift matching opportunities.

V O LU N T EE R P R O JECTS & S P ECI A L NEED S Network Funding’s passion for serving others extends beyond the workplace. Through various projects across the country, our employees and their families are finding ways to give up their time and energy to serve those in need. With coordinated service projects, blood drives and more, Network Funding makes it easy for our employees to find ways to keep making a difference by being agents of restoration in their communities.

P R AY E R T E A M

Let us consider how to stir up one another, to love and good works. HEBRE WS 10:24

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Regardless of your creed or background, life can be hard. The Prayer Team is an open digital volunteer team at Network Funding of employees that want to support, encourage and pray for their fellow colleagues, whether the requests are anonymous or specific.

We believe in the value of giving back to our communities and there is

Network Funding is so much more than just a network of great mortgage

something about generosity that is contagious! We love seeing how

professionals, it’s a family. Words cannot express the love and support I felt

generous our employees are toward one another and to those in need.

from everyone at Network as I was going through my cancer treatment. What a

Ultimately, it’s not about the money we earn but the difference we make.

blessing being a part of this company has been to me and my family!

REX CH A MBERLA IN, CEO

MAT T BA KER, LOA N OF F IC ER, TX 25

JOINING THE NETWORK

C O M M U N I C AT I O N I N T H E N E T W O R K

O NB O A R D IN G

YA MME R

Our Onboarding Department is dedicated to helping all new branches and loan officers make a smooth transition to Network Funding. We know how difficult it is to make a change, so our team goes above and beyond to make it as easy as possible. From getting a new office set up with desks and internet, to making sure each Loan Officer knows who to contact for specific needs, our goal is to keep you from missing any potential deal.

Yammer is the internal communication platform where our employees are able to connect, collaborate and coordinate their various projects. Every branch is given a private group to facilitate communication within the branch, as well access to several open groups where they can connect with their colleagues around the country.

Smooth transitions are vital to the early success for our branches. I love being responsible for helping get every new employee feel a part of the team by getting them ‘up and running’ as fast as possible!”

“ STAT E O F T HE NE T W O R K ” C O NFE R EN CE C A L LS Our monthly “State of the Network” conference calls are the platform through which our executive team informs the entire company of new branches, significant promotions, product changes, department updates and any other pressing news.

S HELLY MCFADDEN, ON-B OARDI NG MANAGER S U P P O RT T E A M The Support Team at Network Funding is a highly trained and experienced staff dedicated to assisting branches with their needs. If a Loan Officer has a question, problem or needs help, the Support Team is “first base”. Most of the time, if they can’t fix it, they will connect the Loan Officer with the department or individual at Corporate who can.

The Support Team has been one of the greatest assets for me since I’ve been with Network Funding. From training me on LendingQB to always being immediately available to help me with any problem, I simply

W EEK LY D I G E STS To simplify internal communication, every week the majority of our department and product updates are condensed into a single email that goes out on Friday. This keeps inbox clutter from our departments down and gives the Loan Officers one simple place to get all of their weekly internal information.

M O N T HLY NE W S L E T T E R S The Monthly Newsletters come out each month to remind branches of the highlights from the Weekly Digests as well as to inform them of upcoming changes and noteworthy social updates.

cannot say enough about this department. They’re amazing! JAM ES M ERCA DO, BRANCH MA NAGER, WI

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NMLS # 2297 970 0 R ICHM O ND AV ENUE , SUIT E 320 , H O USTO N , T X 77042 W W W . NFLP . CO M © FEB R UA R Y 2015