TAG LENDING GROUP PRICING POLICY

             

    INSTRUCTION: Please take the time to read and accept the company policy by clicking the "I AGREE" button located at the bottom

 

Effective date: 05/15/2024

TAG LENDING GROUP

MINIMUM LOAN PRICING POLICY

 

1. Purpose

The purpose of this policy is to ensure the proper use of Tag Lending Group's (hereinafter referred to as Company) pricing system and to ensure its employees and users are aware of the Company’s practices and minimum requirements for loan pricing. This policy also provides for sanctions in the event of a breach or violation of the policy terms hereunder.

 

2. Applicability

This Policy applies to all employees and specifically users of the Company’s pricing system.

 

3. Violations of this policy

Anyone found not following this policy will be subject to corrective action, up to and including termination. If necessary, the Company may notify law enforcement officials of any illegal conduct and file applicable reports (See AML Policy.)

 

4. Points of Contact

Questions concerning the use of the Pricing System should be directed to Secondary@TagLendingGroup.com

 

5. Minimum Company Pricing Requirements

 

    • Minimum Company Pricing (Internal Leads): Conventional, FHA, VA, USDA, Non-QM):
      Creditor Paid (Lender Paid Compensation) – For all transactions where the Company provides consumer contact information to the Loan Originator or introduces or establishes a relationship between the Loan Originator and a Real Estate Agent/Agency or other similar parties that is the lead source of the loan, the price to the consumer must yield a minimum of 275% (275 basis points) after taking all applicable LLPAs into account. Locking a loan with lower pricing requires approval from Management or Executive Staff before locking a loan with the investor or committing the rate to the borrower.

    • Minimum Company Pricing (Internal Leads): Conventional, FHA, VA, USDA, Non-QM):
      Consumer Paid (Borrower Paid Compensation) – For all transactions where the Company provides consumer contact information to the Loan Originator or introduces or establishes a relationship between the Loan Originator and a Real Estate Agent/Agency or other similar parties that is the lead source of the loan, the price to the consumer must yield a minimum of 250% (250 basis points) after taking all applicable LLPAs into account. Locking a loan with lower pricing requires approval from Management or Executive Staff before locking a loan with the investor or committing the rate to the borrower.

 

    • Minimum Company Pricing (Company Lead): Company Generated Loan:
      Creditor Paid (Lender Paid Compensation) – For all transactions where the Company provides consumer contact information to the Loan Originator or introduces or establishes a relationship between the Loan Originator and a Real Estate Agent/Agency or other similar parties that is the lead source of the loan, the price to the consumer must yield a minimum of 275% (275 basis points) after taking all applicable LLPAs into account. Locking a loan with lower pricing requires approval from Management or Executive Staff before locking a loan with the investor or committing the rate to the borrower.

    • Minimum Company Pricing  (Company Lead): Company Generated Loan:
      Consumer Paid (Borrower Paid Compensation) – For all transactions where the Company provides consumer contact information to the Loan Originator or introduces or establishes a relationship between the Loan Originator and a Real Estate Agent/Agency or other similar parties that is the lead source of the loan, the price to the consumer must yield a minimum of 250% (250 basis points) after taking all applicable LLPAs into account. Locking a loan with lower pricing requires approval from Management or Executive Staff before locking a loan with the investor or committing the rate to the borrower.

 

    • Minimum Company Pricing: TLG First-Time Home Buyer: (May Not Be Combined with Hometown Heroes loan program)
      TLG First-Time Home Buyer loans may only be originated as Creditor Paid (Lender Paid) for the 1% credit to the borrower to be permissible. The price to the consumer must yield a minimum of 75% (275 basis points) after taking all applicable LLPAs into account. Locking a loan with lower pricing requires approval from Management or Executive Staff before locking a loan with the investor or committing the rate to the borrower.

 

    • Minimum Company Pricing: Jumbo:
      The price to the consumer must yield a minimum of 75% (150 basis points) after taking all applicable LLPAs into account. Locking a loan with lower pricing requires approval from Management or Executive Staff prior to locking a loan with the investor or committing the rate to the borrower. Capped at $1,000,000; any amount exceeding this will be allocated to the lower lead bucket or set at 70% of the net revenue.

 

    • Minimum Company Pricing / Out-of-State Referrals:
      If  Loan Originators encounter a transaction in the state where they or their branch is not licensed but where the Company holds a license, they are encouraged to refer the loan to our corporate AIMS lead channel (A.I Mortgage Solutions). The activity must be limited to solely providing the consumer’s contact information, and no negotiations or organizational activity may be conducted by the unlicensed Loan Originator. As permitted by state laws and requirements, the referring Loan Originator will be compensated 10% (100 basis points). The Loan Originator receiving the referral will be paid according to the “Company Generated Loan” terms in their Compensation Agreements and must follow the minimum pricing requirements above.

 

    • Minimum Company Pricing: Co-Origination:
      If two Loan Originators work together on the same transaction, they must agree on the work each will perform. They shall be paid according to their Compensation Agreements' “Co-Originated” terms. Loans that are Co-originated must follow the minimum pricing terms outlined below.

      • MLO B (Referral) = 10% (100 Basis Points)

      • MLO A (Internal) = 0.6% (60 Basis Points)

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    • Minimum Company Pricing: Internal Leads:
      The price to the consumer must yield a minimum of 2.50% (250 basis points) after taking all applicable LLPAs into account. Locking a loan with lower pricing requires approval from the Management of Executive Staff before locking a loan with the investor or committing the rate to the borrower.

 

    • Minimum Non-Delegated Debt Service Coverage Loan (DSCR) Mortgage Pricing:

      The price to the consumer must yield a minimum of 2.75% (275 basis points) after taking all applicable LLPAs into account. Locking a loan with lower pricing requires approval from the Management or Executive Staff before locking a loan with the investor or committing the rate to the borrower. The loan officer shall receive 70% of the net revenue from the loan.

      Company Maximum Allowed Pricing:
      The maximum allowed pricing by the company is 4.250% (425 basis points). The loan officer shall receive 70% of the net revenue from the loan. (See MLO Agreement)

    • Recruitment Compensation – Any Mortgage Loan Originator who recruits or hires another Mortgage Loan Originator will receive a one-time compensation of 25BPS on the first closed deal. 

    • Early Payoff (EPO) Clause - In the event that a loan originated by the Mortgage Loan Originator is paid off within a specified period after the loan closes (typically 90 to 180 days, depending on investor guidelines), resulting in the loan being deemed an Early Payoff (EPO), the Mortgage Loan Originator’s commission may be subject to garnishment or forfeiture. The Mortgage Loan Originator shall be responsible for reimbursing Tag Lending Group, LLC for any costs incurred due to the EPO, including but not limited to investor penalties, loss of revenue, or warehouse line buyback fees. This provision applies if the EPO occurs due to the Mortgage Loan Originator's actions, including, but not limited to, improper loan structuring, failure to fully vet borrowers, or failure to verify critical loan information, which leads to an early payoff. This applies for all mortgage loans types including HELOCs 

 

6. Declaration

I have read, understand, and acknowledge receipt of the Pricing policy. I will comply with the guidelines set out in this policy and understand that failure to do so might result in disciplinary action up to termination of employment and potential legal action.                         

I  AGREE