Version Date: 05-18-2020
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coverage under any mortgage insurance policy, if applicable, whether arising out of actions, representations,
errors, omissions, negligence or fraud of Broker, the Applicant or any party involved in the application for such
coverage or the origination of the Loan or related documents, including the appraisal, plans and specifications
and other exhibits or any other document, or for any other reason under such coverage.
3.2.16 Fair Lending. Broker has complied with the fair lending requirements of the FHA and all regulations
promulgated pursuant thereto and with all other applicable federal, state and local laws, rules and regulations
pertaining to fair lending. With respect to each Applicant, Broker has not discriminated in the provision of or in
the availability of financial assistance because of the consideration of (A) trends, characteristics or conditions
in the neighborhood or geographic area surrounding a housing accommodation, unless Broker can
demonstrate in the particular case that such consideration is required to avoid an unsafe and unsound
business practice, or (B) race, color, religion, sex, handicap, marital status, domestic partnership, national
origin or ancestry. Further with respect to each Applicant, Broker has not considered the racial, ethnic,
religious or national origin composition of a neighborhood or geographic area surrounding a housing
accommodation or whether or not such composition is undergoing change, or is expected to undergo change,
in appraising a housing accommodation or in determining whether or not, or under what terms and
conditions, to provide financial assistance.
3.2.17 Compliance with FNMA, FHLMC or Investor Guidelines. If the Loan is a conventional conforming loan, it has
been originated in conformance with all applicable Angel Oak requirements and all applicable requirements of
Fannie Mae or Freddie Mac for sale to Fannie Mae or Freddie Mac and inclusion in a Fannie Mae or Freddie
Mac mortgage backed securities pool, as applicable, and is otherwise originated in compliance with investor
guidelines and is an investment quality Loan suitable for sale on the secondary market to a secondary market
investor.
3.2.18 Compliance with Laws. As originated, the Loan complies with Applicable Law in all respects, including, but not
limited to, RESPA, the Flood Disaster Protection Act, the Federal Consumer Credit Protection Act, including the
Truth-in-Lending and Equal Credit Opportunity Acts, the Federal Fair Housing Act, the Home Ownership and
Equity Protection Act, Gramm-Leach-Bliley Act, the Home Valuation Code of Conduct and applicable law
governing fraud, lack of consideration, unconscionability, consumer credit transactions, consumer protection
and consumer privacy, interest or other charges, licensing of mortgage brokers, Angel Oaks and loan officers,
and mortgage insurance applicable to the Loan, including without limitation, the origination, servicing and
collection thereof. The Loan is not subject to the Federal Trade Commission’s “Preservation of Consumer’s
Claims and Defenses Rule”, 16 C.F.R. part 433.
3.2.19 Anti-Steering. Broker has complied with the anti-steering provisions of Regulation Z, 12 C.F.R. § 226.36, and
the related Official Staff Commentary and any amendments thereto. Broker presented Applicant with
sufficient information to satisfy the safe harbor (anti-steering) provision which includes Mortgage Loan
options for each type of transaction in which Applicant expressed an interest and the Mortgage Loan options
included a Mortgage Loan with the lowest interest rate, a Mortgage Loan with the lowest interest rate and
which does not contain any risky features, and a Mortgage Loan with the lowest total dollar amount of
origination points/fees and discount points. No Applicant was encouraged or required to select a loan product
offered by the Broker which is a higher cost product designed for a less creditworthy Applicant, taking into
account such facts as, without limitation, the loan product requirements and the Applicant’s credit history
income, assets and liabilities. Any Applicant who sought financing through a Broker’s higher-priced subprime
or Alt-A lending channel was directed to the Broker’s standard loan products if the Applicant was able to qualify
for one of the standard loan products. Broker and its loan originators have complied with all anti-steering rules
and regulations, including but not limited to Regulation Z, Dodd-Frank, and its implementing regulations, and
all of Angel Oak’s requirements regarding the same as it may publish from time to time.
3.2.20 No Third Party Originators. The Loan was not originated by a person other than Broker (commonly referred to
in the industry as a “third party origination” or “TPO”). For purposes of this subsection, “originated by a
person other than Broker” shall mean that any or all of the following conditions exist: (i) the Loan application
was taken by, or (ii) documents evidencing the credit- worthiness of the Loan were collected by, or (iii) the
appraisal of the property was obtained by, or (iv) the Loan was originated by or in the name, of a person other
than Broker or other than a person in the direct and principal employment of Broker. There is no agreement
between Broker and any other person or entity for the payment of any referral fee, rebate, bonus, kickback, or