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Broker Application Instructions
apply for approval as a Wholesale Broker with Princeton Mortgage Corporation, please complete the
entire application package and then email the completed application to your Account Executive. If you
prefer a different delivery method, please let your Account Executive know and we will accommodate.
Once received, Princeton Mortgage Corporation will review the application package and corresponding
documents. If information is missing or we require further supporting documentation, your Account
Executive will contact you. Please note that any missing or incomplete information could delay the
approval process. If you have any questions during this process, please contact your Account Executive.
Broker Application Documents
e documents are provided BY
Princeton Mortgage Wholesale and need to be completed by the
er Application
Broker Compensation Terms & Agreement Form
Broker Agreement
Anti‐Money Laundering & Suspicious Activity Reporting Certification
Credit Consent & Auth Form (signed by Officer of the Company & all Owners with 10%+ interest)
Fair Lending Policy & Acknowledgment
Loan Fraud Zero Tolerance Form
Company Resolution Form
These documents must be provided TO
Princeton Mortgage Wholesale by the broker:
icles of Incorporation & Operating Agreements
Company QC Policies & Procedures
E&O Insurance Coverage & Surety Bond Evidence (if applicable per NMLS State Requirements)
List of Loan Officers and Key Personnel
Profit & Loss Statement & Balance Sheet (most recent quarter‐end unaudited financials)
W‐9 Form
Resumes for all Owners and/or Managing Executives
ll documents that require signatures must be fully executed to be considered complete
*If you submit the complete application through your email system, please assume risk if not sent by
a secure and protected method.
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Company Name:
DBA (if applicable):
Federally Regulated Institute
Company Website:
Primary Address:
City: State: Zip:
Primary Contact Name:
Federal Tax ID:
State of Incorporation: Date Formed:
Ownership %
Attach additional sheet if needed
Attach additional sheet if needed
Select State
Click to Print
Click to Clear
Select State
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Address, City, State, Zip
Contact Name
Attach additional sheet if needed
License #
License Type
Expiration Date
Attach additional sheet if needed
Loan Product
$ Amount
# of Loans
$ Amount
# of Loans
Conventional Conforming
Lender Name
Contact Name
Company Name
Type of Business
% Ownership
Contact Name
Attach additional sheet if needed
Select State
Select State
Select State
Select State
Select State
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Credit Company Name
% of Total Reports
Attach additional sheet if needed
Within the last three (3) years, has the Applicant, its owners, its broker(s) of record or any of
its employees (i) had any formal complaints filed against them with a federal or state mortgage
banking/broker regulatory authority, (ii) been found in violat
ion of any mortgage
banking/broker federal or state regulatory authority’s statutes or regulations, (iii) had an order
entered against them by a federal or state mortgage banking/broker regulatory authority or
een denied, suspended or had a registration or license revoked by a federal or state
mortgage banking/broker regulatory authority?
Has your company ever had unfavorable findings with regard to brokerage or mortgage
operations or servicing activities included in any audit, examination or report by FHA, VA,
FNMA, FHLMC or any regulatory, supervisory or investigating agency?
Has any owner, partner, officer, director, employee or loan officer been affiliated with any
company/business that was suspended by FHA, VA, FNMA, or FHLMC and/or subject to any
voluntary or involuntary bankruptcy proceedings?
Has the Applicant ever been suspended from brokering loans to another lender or had its
approval status revoked by another lender?
Has any owner, partner, officer, director, employee or loan officer of your company ever been
found guilty of a felonious criminal offense?
Is there any pending litigation involving the company or any of its owners, partners,
shareholders, directors, officers, employees or loan officers?
Has your company ever been denied, suspended or disqualified by any MI companies?
Has your company and/or principles or corporate officers filed for protection from creditors
under provision of the bankruptcy laws within the past seven years?
If you answered YES to any of the above questions, please provide a letter of explanation as well as any
written documentation for the original finding.
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oker Compensation Terms & Agreement
Mortgage Broker Compensation
1.1. Princeton Mortgage Corporation will provide its business partners with two compensation options, Lender Paid
and Borrower Paid compensation.
1.2. C
ompensation Updates
- Mortgage brokers will be eligible to update their compensation plan each quarter by
using the approved Broker Compensation Selection Form. The Broker Compensation Selection Form must be
emailed to by 4:30 PM EST on the last Friday of the current quarter.
Forms submitted after this time will not be processed until the following quarter. If the mortgage broker does
not elect a new compensation plan, the then-current compensation plan will be retained. Loans submitted prior
to the new compensation plan will be subject to the prior compensation plan terms and will not be eligible for
the new amount charged under the updated compensation plan.
2. Lender Paid Compensation
2.1. For the mortgage brokers Lender Paid Compensation, they will be required to select a compensation
percentage between 0% and 2.75% of the total loan amount. Within this range, the dollar amount of the
mortgage broker’s compensation on any loan may be no less than $1,000 and no greater than $25,000. If the
mortgage broker selects 0% the compensation will default to $1,000.
3. Borrower Paid Compensation
3.1. The mortgage brokers will be permitted to negotiate their compensation on Borrower Paid transactions if the
following conditions are met:
1. The total amount charged for a Borrower Paid transaction may not exceed the amount payable under the
Lender Paid compensation.
2. The broker, using the Anti-Steering Disclosure form, must offer the borrower one or more loan option(s)
with Lender Paid compensation and the loan option with Borrower Paid compensation.
3. Borrower Paid compensation may not be less than the minimum dollar amount selected, whether the
default of $1,000 is selected or the brokers elected minimum.
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4. Maximum Allowable Flat Fees
4.1. Princeton Mortgage will limit lender-paid compensation as follows:
Compensation Percentage (%)
Maximum Allowable Flat Fee ($)
Up to 2.75%
No Flat Flee Allowed
Up to 2.50%
Up to 2.00%
Up to 2.
75% if there is no flat fee charged in addition to the percentage
Up to 2.50% if the flat fee does not exceed $1,000
Up to 2.00% if the flat fee does not exceed $2,000
5. Rights of Offset
5.1. Lender shall have the right to, at any time and without prior notice, deduct any penalties, fees, expenses, or
other charges or obligations of any kind owed by the Broker to the Lender from any amounts to be paid to
Broker for Mortgage Loans submitted by Broker under the Broker Agreement. Broker consents to a closing
agent or any other party acting under instructions from Lender to withhold such amount from funds to be
remitted to the Broker to satisfy any such penalty, fee, expense, or other charge or obligation of any kind and to
remit such funds to Lender.
6. Confirmations
6.1. By executing this Form, and whenever the Company receives compensation on a loan funded by Princeton
Mortgage Corporation, the Broker represents and warrants that:
6.1.1. The Br
oker is operating in compliance with Regulation Z, the Broker Agreement and any written policies
Princeton Mortgage Corporation may have regarding Regulation Z.
6.1.2. On e
ach Lender Paid Loan, the payment received from Princeton Mortgage Corporation will be the sole
source of compensation received by the Broker and its affiliates. Neither the Broker nor any approved
affiliate will charge or collect an additional fee(s) for loan originator activities from the borrower.
7. Broker Compensation Selection
Percentage Selection Flat Fee Selection
Minimum Compensation
Maximum Compensation
$ 0.00
$ 1,000.00
$ 25,000.00
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8. Reminders
n & Max Compensation Percentage
A compensation percentage between 0% and 2.75% of the total loan amount must be selected
n & Max Comp Earned
The dollar amount of the mortgage broker’s compensation on any loan may be no less than $1,000 and no
greater than $25,000
x Allowable Flat Fees
Up to 2.75% if there is no flat fee charged in addition to the percentage
Up to 2.50% if the flat fee does not exceed $1,000
Up to 2.00% if the flat fee does not exceed $2,000
mportant Note
The Broker Compensation Selection Form must be emailed to by
4:30 PM EST on the last Friday of the current quarter. Forms submitted after this time will not be processed
until the following quarter. If the mortgage broker does not elect a new compensation plan, the then-
current compensation plan will be retained.
pon execution, this Broker Compensation Terms and Agreement shall become bound to the existing Broker
Company Name
Print Name of Authorized Signer
Signature of Authorized Signer
Title of Authorized Signer
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s Broker Agreement (“Agreement”) is entered into by and between Princeton Mortgage Corporation (“Lender”),
a New Jersey corporation, having its principal office at 2482 Pennington Road, Suite 1, Pennington, NJ 08534, and
___________________________________________________ (“Broker”)
having its principal office at the address listed on the signature page of this Agreement.
EAS, Lender and Broker wish to establish a non-exclusive relationship between and for the benefit of Lender
and Broker; and,
WHEREAS, Broker is in the business of taking mortgage loan applications (each an “Application”) from borrowers
(each a “Borrower”) for residential mortgage loans (each a Mortgage Loan”), aiding and assisting Borrowers in the
pre-qualification for Mortgage Loans, choosing a mortgage product, completing an Application and processing
those Applications on behalf of the Borrower in exchange for a fee; and,
WHEREAS, Lender is in the business of receiving Applications from Brokers for Mortgage Loans, underwriting those
Applications with the intention of funding those Mortgage Loans.
THEREFORE, in consideration of the mutual promises, covenants and conditions contained in this
Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Lender and Broker agree as follows:
Eligible Loans & Pricing
a. Mortgage Loan Programs
Lender shall, from time to time, distribute to Broker information with respect to the types of
Mortgage Loan programs (“Loan Programs”) that Lender is offering. Lender will accept only those
Applications eligible for the Loan Programs being offered. Lender will process Applications only
upon submission by the Broker to the Lender of such additional information and documents as
required by Lender. Broker acknowledges that Lender reserves the right to alter, add, or delete
Loan Programs or to alter the eligibility of the Broker for the Loan Programs from time to time in
the Lender’s sole discretion. Broker is responsible for identifying which Loan Programs are offered
by Lender and for which the Broker is eligible at any given time. Broker shall be responsible for
assuring that each Application submitted complies with all the terms and conditions of the
applicable Loan Program at the time Broker submits the Application to the Lender.
b. Mortgage Loan Pricing
Lender shall issue to Broker, on a periodic basis, rate sheets and/or other pricing information
applicable to Loan Programs offered by Lender. Such rate sheets shall be subject to change by
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Lender without notice. Broker shall comply with all requirements set forth in the rate sheet,
including without limitation, requirements relating to documentation, interest rates, and locks
applicable to the Loan Programs.
Broker Duties
a. Applications
Broker shall take Applications in its own name through its employees. Each Application submitted
by Broker to Lender shall comply and adhere with all written guidelines, policies, procedures, an
equirements as determined by Lender (collectively, “Lender Requirements). Broker shall assist
Lender in obtaining any additional information needed by Lender or to otherwise facilitate the
underwriting, closing, and funding of the Mortgage Loan transaction. While taking such
Applications, Broker shall provide to all Borrowers, Broker disclosure(s) that comply with applicable
law and Lender Requirements. Broker shall not submit third party originations to the Lender under
this Agreement.
b. Licensing
Any employee taking Applications or offering or negotiating Mortgage Loan terms must be
registered through the Nationwide Mortgage Licensing System and Registry and licensed or
registered as required by applicable law.
c. Agreement & Requirements
Broker’s approval to participate in the Loan Programs, as well as any obligations with respect to
Mortgage Loans submitted by Broker to Lender, are subject to the terms and conditions in this
Agreement, Lender Requirements, any conditions imposed by Lender with respect to individual
Mortgage Loans, and any other policies, procedures, or requirements adopted by the Lender. No
agreements or amendments, unless properly made pursuant to the requirement in this Agreement,
shall govern the relationship between Broker and Lender. Accordingly, any Mortgage Loan
submitted by Broker to Lender will be subject to Lender Requirements. Lender shall be free to
amend, revise, eliminate, supplement, or replace any requirements or obligations set forth in
Lender Requirements, conditions, and any other policies, procedures, or requirements adopted by
Lender in accordance with Lender’s usual practices.
d. Broker Compensation
Any compensation or fee payable to Broker for its provision of goods, services or facilities in
connection with Applications and Mortgage Loans shall be paid in compliance with the terms of this
Agreement, the terms of the Broker Compensation Terms & Agreement, Lender Requirements,
Regulation Z Loan Originator Compensation Rules, and applicable law, and only in connection with
a particular Mortgage Loan, if each of the following conditions are met:
1) Broker has actually provided necessary goods, services, and/or facilities in connection
with the Mortgage Loan, and the amount of compensation earned by Broker is
reasonably related to the value of the goods, services, and/or facilities actually provided
by Broker;
2) Broker has submitted a fully executed mortgage loan origination agreement between
Broker and Borrower that complies with applicable law and requirements;
3) Broker has submitted properly completed and fully executed disclosures with the
4) Broker is compliant with all applicable federal, state, and local laws and regulations and
all terms of this Agreement;
5) Broker does not direct or steer Borrower to a specific Mortgage Loan transaction in order
to receive greater broker compensation;
6) The applicable Mortgage Loan has closed and funded and all applicable conditions have
been met and the Mortgage Loan has not been rescinded;
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If any of the above conditions are not met for a particular Mortgage Loan, Broker agrees to
promptly refund all compensation and fees received in connection with such Mortgage Loan.
Additionally, notwithstanding any other provision of this Agreement, Broker shall not be entitled
to receive any compensation or fees from a Borrower or Lender in connection with a Mortgage
Loan if Broker is no longer approved, licensed or registered or if Broker is suspended from
transacting business by any state or federal agency unless prior written permission is given by
i. Broker Compensation Payment
Broker shall be paid directly by Borrower or Lender during the funding of such Mortgage
Loan, pursuant to the Broker Compensation Terms & Agreement, the closing instructions,
and the closing disclosure for each Mortgage Loan. Broker agrees that it shall not receiv
ayment for any compensation or fees, and that Lender may instruct any party to withhold
payment, unless, 1) the Lender has received all documents required by the Lender in its
sole discretion to close, fund, and sell the Mortgage Loan in the secondary market, 2) the
closing agent has disbursed the funds to the Borrower, and 3) the closing agent has
submitted the security instrument for recordation relating to the Mortgage Loan. All
payments to Broker shall be subject to the restrictions and limitations found in the Truth in
Lending Act and Regulation Z, as well as any other applicable law.
e. Reimbursement of Fees
If Broker has collected any fees from a Borrower in connection with a Mortgage Loan that is
rescinded by the Borrower pursuant to applicable federal, state or local laws or regulations, Broker
shall refund all such fees that are required to be refunded to the Borrower. Broker shall also pay to
Borrower any other amounts to which Borrower is entitled, whether or not those amounts were
ever paid to or through Broker.
f. Quality Control
Broker shall maintain and implement a quality control program that shall be acceptable to, and
comply with Lender Requirements. The quality control program should also include, at minimum,
a specific process for resolving quality control discrepancies, and a method for tracking all
corrective actions taken. Lender reserves the right to conduct an audit to verify the existence and
implementation of such quality control program and Broker is required to provide a letter of
explanation and/or supporting documentation with respect to any quality control finding noted by
g. Broker Status
The parties to this Agreement are independent contractors and no agency, partnership, joint
venture or employee-employer relationship is intended or created by this Agreement. Nothing in
this Agreement shall be construed to appoint Broker as a partner, employee, or representative of
Lender. Broker shall not use Lender’s name, logo, or trademarks for any purpose without Lender’s
written permission.
h. Broker Maintenance
At any time upon Lender’s reasonable request, Broker shall cooperate with and provide all
information, documents and reports requested by Lender so that Lender may conduct a review of
Broker and its business. Such requested information may include, but is not limited to, evidence
showing that Broker, 1) is licensed or registered as required by applicable law, 2) maintains
adequate insurance coverage per Lender Requirements, 3) is in good-standing with all appropriate
governmental, regulatory, or secondary market authorities, and 4) is in good financial standing i
rder to conduct business in accordance with all terms of this Agreement.
i. Consumer Privacy
Broker shall comply with all federal, state and local laws, rules, regulations and ordinances
governing or relating to privacy rights relating to the protection of consumer privacy as defined in
the Gramm-Leach-Bliley Act. Broker shall implement all security measures as shall be necessary to,
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1) ensure the security and confidentiality of the “nonpublic personal information” of the
“customers” and “consumers” (as those terms are defined in Section 509 of the Gramm-Leach-
Bliley Act), 2) protect against any threats or hazards to the security and integrity of such nonpublic
personal information, and 3) protect against any unauthorized access to or use of such nonpublic
personal information. Broker represents and warrants that it has implemented appropriate
measures to meet the objectives of Section 501(b) of the Gramm-Leach-Bliley Act and of the
applicable standards adopted pursuant thereto, as now or hereafter in effect. Upon request, Broker
will provide evidence reasonably satisfactory to allow the Lender to confirm that the Broker ha
satisfied its obligations as required in the Consumer Privacy section of the Agreement.
j. Non-Solicitation
Broker shall not directly or indirectly solicit any Borrower to refinance a Mortgage Loan within (180)
days after Lender funds such Mortgage Loan. The term “solicit” as used herein shall not include, 1
motions undertaken by the Broker or any affiliate which are directed to the general public at
large, including, without limitation, mass mailing based on commercially acquired mailing lists,
newspaper, radio and television advertisements, and 2) customer retention communications to the
Borrower personally, by telephone or mail such as newsletters, birthday cards, and requests for
k. Early Payoff Loans (EPO Loans)
A Mortgage Loan shall be considered an “Early Payoff Loan” if such Mortgage Loan resulting from
an Application received from Broker is funded by Lender and that Mortgage Loan is paid off in full
within (180) days from the funding date of such Mortgage Loan. If any Mortgage Loan submitte
y Broker constitutes an Early Payoff Loan, Broker shall pay to Lender the greater of, 1) an amount
equal to the compensation paid to the Broker by the Lender or the Borrower with respect to such
Mortgage Loan, or 2) one percent (1%) of the initial principal balance of such Mortgage Loan. Broker
acknowledges and agrees that Lender may, in its sole discretion, implement additional
requirements as necessary or appropriate to further address Early Payoff Loans.
i. Churning
If Lender determines, in its sole and absolute discretion, that Applications submitted by
Broker demonstrates a “churning” of Mortgage Loans by Broker, Lender may, in its sole
discretion, take such action as may reasonably be necessary to eliminate such “churning”
activity on the part of Broker.
Lender Duties
a. Underwriting
Lender or its designee shall underwrite every eligible Application submitted by Broker pursuant to
this Agreement. Lender shall have no obligation to approve or close a Mortgage Loan which it
determines, in its sole and absolute discretion, does not meet Lender’s underwriting requirements
(“Underwriting Guidelines”). Lender retains sole and absolute discretion to reject any Application
which does not comply with the terms and conditions of this Agreement or the Lender
Requirements, or for any reason whatsoever that is not otherwise prohibited by law, and to set the
terms and conditions of any approval of an Application. Lender shall notify Broker of the disposition
of an Application and shall issue any approval or denial in writing.
b. Closing
Lender shall proceed to the closing and funding of a Mortgage Loan, resulting from an Application
received from Broker, under the terms and conditions of the approval. Lender shall prepare the
closing package and close and fund the Mortgage Loan in its name and with its own funds. Broke
hall cooperate with Lender to provide any and all documentation required by Lender to close an
und the Mortgage Loan in a timely and efficient manner. Lender reserves the right, in its sole and
absolute discretion, to cancel the closing and/or funding of any Mortgage Loan for any reason which
Lender determines to be material, in its sole and absolute discretion.
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c. Reliance on Information
Lender and Broker agree that Lender may rely on the information, authenticity, and accuracy of all
signatures and information supplied by Broker in connection with each Mortgage Loan. Lender’s
decision not to conduct an independent investigation with respect to the information, authenticity,
and accuracy of all such signatures and information shall not affect or modify the representation
d warranties made by Broker or the rights available to Lender for any breach of such
representations and warranties.
Broker’s Representations, Warranties & Covenants
Broker hereby represents, warrants and covenants to Lender, as of the time any Application is submitted
o Lender, and as of the time any such Mortgage Loan is closed and funded through the life of such
Mortgage Loan, that:
a. Organization
Broker is duly organized, validly existing, and in good standing under the laws of the jurisdiction of
its formation, and is duly qualified to do business and is in good standing under the laws of each
state or other jurisdiction in which the nature of the activities conducted by it requires such
b. Authority to Sign
Broker, and its signing agent, has the requisite organizational authority and legal power and
capacity to enter into this Agreement, and to bind Broker to all the Agreement’s terms and
conditions, including all representations, warranties, and covenants made therein, and enter into
all transactions covered by this Agreement.
c. Authority to Operate
Broker, at the time of entering this Agreement, and throughout the course of the term of this
Agreement, has and shall maintain all the appropriate authorities, filings, exemptions, licenses,
bonds, insurances (including without limitation errors and omissions insurance) as required by a
deral, state, and local laws, regulations, rules, and Lender Requirements.
d. Good Standing
Broker, at the time of entering this Agreement, and throughout the course of the term of this
Agreement, is and shall remain in good standing with authority to operate in each state in which
Broker operates, and shall make all reasonable efforts to remain in good standing with all state and
federal regulatory agencies.
e. Threatened Actions
Unless previously disclosed by Broker to Lender in writing, there is not pending or threatened any
suit, action, arbitration, inquiry, review, audit, or legal, administrative, or other proceeding or
governmental (federal, state, local) investigation against Broker or its current or former owners,
agents, or employees that could have a material adverse effect on Broker’s business, assets,
financial condition, or reputation, or upon any Mortgage Loan submitted by Broker for closing
and/or funding by Lender. Broker further represents and warrants that no material complaints have
been filed against Broker alleging fraud, predatory lending, unfair and deceptive practices and/or
violations of any consumer protection laws. Broker covenants to Lender that Broker shall
immediately notify Lender in writing of any letter, notice, inquiry, material complaint or pending or
threatened action to revoke or limit any license, permit, authorization or approval that is necessary
for Broker to conduct its business or take Applications for Mortgage Loans, or to impose any penalty
or other disciplinary sanction in connection therewith, or any other sanction that would materially
affect Broker’s business.
f. Accuracy of Information
Broker confirms that all information provided to Lender is true, complete and accurate in
aterial respects. None of the statements, documents, or information provided by Broker or
Broker’s agents in any Application contains or will contain any untrue or erroneous statement or
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omission of a material fact. Broker warrants the accuracy of all information contained in any
Application and Mortgage Loan documents submitted to Lender, whether or not Broker has
knowledge or reason to suspect any inaccuracy or omission. Broker acknowledges that the
information in the Application may be subject to Lender’s independent verification, underwriting
approval or quality control review but this shall not affect Broker’s duties, responsibilities,
representations and warranties hereunder and Broker shall not be entitled to rely on such actions
of Lender to in any way relieve Broker of his responsibilities, representations, and warranties
g. Compliance with Laws & Lender Requirements
Broker has complied and shall continue to comply with all applicable federal, state, and local laws,
regulations, rules, and Lender Requirements in the operation of its business, and in its submission
of each Application and the origination of each Mortgage Loan. Broker is in full compliance in
espects, and in good standing, with all regulatory and supervisory agencies having jurisdiction over
Broker. This includes, without limitation, applicable state lending and licensing and/or registration
laws (including but not limited to the SAFE Act), the Federal Fair Housing Act, RESPA, Regulation X,
TILA, Regulation Z, Equal Credit Opportunity Act, Regulation B, Consumer Credit Protection Act,
Flood Disaster Protection Act, Fair Credit Reporting Act, Home Mortgage Disclosure Act, and HUD
regulations applicable to a loan correspondent all as amended from time to time.
h. Marketability of Mortgage Loans
Broker has no knowledge of any circumstances or conditions with respect to any Application,
Mortgage Loan, property securing the Mortgage Loan, Borrower or Borrower’s credit standing tha
ould reasonably be expected to, 1) cause any third-party investors to regard the purchase of the
Mortgage Loan as an unacceptable investment, 2) cause any Mortgage Loan to become delinquent,
or, 3) adversely affect the value or marketability of any such Mortgage Loan.
i. No Conflict
The Broker’s execution, delivery, and performance of this Agreement will not violate or conflict
with any provisions of Broker's charter documents, any instrument relating to the conduct of its
business, or any other agreement, law, rule, regulation, ordinance or order to which Broker may be
a party or under which Broker may be governed. Broker has no direct or indirect ownership interest
in any property acting as security for any Mortgage Loan submitted to Lender for closing and/or
j. No Other Agreements or Guarantees
Broker has not made, directly or indirectly, any payment on the Mortgage Loan, the Application, or
any fee paid for goods and services rendered in connection with the origination, closing, and
funding of the Mortgage Loan. Broker has also not made any agreement with the Borrower
providing for any variation of Mortgage Loan terms. Broker shall make no statements, suggestions
or implications, orally or in writing, to any Borrower or related parties that; 1) Broker has the
capacity to approve or fund the Mortgage Loan; 2) Lender will approve or has already approved the
Mortgage Loan; or, 3) Lender will make exceptions to Lender Requirements for Borrowers or
lated parties.
k. Fair Lending
Broker acknowledges that it does not discriminate against Borrowers based on age, race, color,
gender, ethnic background, national origin, religion, marital status, familial status, veteran status,
handicap status, sexual orientation, receipt of public assistance, because rights have been exercised
under the Consumer Credit Protection Act, or any other prohibited basis. Broker agrees to
indemnify and hold Lender harmless from and against any discriminatory practices employed by
Broker or its employees and/or agents. Broker has strictly complied with Lender’s Fair Lending
Policy & Acknowledgement included with this Agreement.
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l. Change of Status
Broker shall immediately notify Lender if, 1) Broker changes the name and/or address under or
form which it conducts business; 2) there is a change of control of Broker; 3) Broker fails to be in
compliance with qualification or licensing laws of any jurisdiction where it conducts business; or 4)
Broker files for bankruptcy protection or is a party to any similar proceeding.
Broker shall indemnify and hold Lender and its shareholders, directors, officers, agents, employees,
successors and assigns harmless from and against, and shall reimburse the same with respect to, any and
all liability, claims, losses, or other damages, including reasonable attorney’s fees, due to the
unmarketability of any Mortgage Loan or repurchase demand resulting from acts performed during the
origination of any Mortgage Loan, including but not limited to; 1) Any breach of any representation,
warranty, or covenant contained in this Agreement; 2) Broker’s failure to comply with any obligation under
his Agreement; 3) Any claim by a Borrower resulting from Lender’s rightful failure or refusal to close and/or
fund a particular Mortgage Loan; and/or 4) Any negligence, intentional act, fraudulent act or omission o
ker or its agents or employees. Lender shall promptly notify Broker of the existence of such claim and
shall give Broker reasonable opportunity to defend and/or settle the claim at its own expense and with
counsel of its own selection. Lender shall cooperate with Broker and shall, at all times, have the right to
fully participate in, but not control, such defense with Lender’s own counsel and at Lender’s own expense.
Responsibility for Fraud
Broker shall not submit any Application or other Mortgage Loan documents containing incomplete, false,
fraudulent or misrepresented information or are the result of abusive, unfair or deceptive practices. Broker
shall be responsible for all omissions and actions taken in the course of its performance of its obligations
under this Agreement, whether such act or omission was by Broker, its employees or licensees, or the
Borrower, or any other third party affiliated with (as disclosed in the ‘Affiliations’ section of the Broker
Application) or selected by Broker involved in the origination of the Mortgage Loan. An omission of material
information is deemed fraud under this Agreement. Broker shall repurchase any Mortgage Loan if fraud or
any abusive, unfair or deceptive practices have occurred in the origination of such Mortgage Loan. Broker
understands and agrees that in the event Lender reasonably believes misrepresentations, fraud or an
usive, unfair or deceptive practices exists in an Application, any Mortgage Loan document, or any related
document, Lender may report such misrepresentation, fraud or any abusive, unfair or deceptive practices
to the appropriate state and federal regulatory authorities, law enforcement agencies, and fraud databases.
Broker acknowledges the importance of Lender’s right, and necessity to disclose such information. Broker
waives any and all claims for liability, damages, and equitable or administrative relief in connection with
Lender’s disclosure of such information.
Breach of Agreement
In addition to other rights and remedies that Lender may have, upon discovery by either Broker or Lender
of any breach of any representation, warranty or covenant of this Agreement, the party discovering the
breach shall promptly notify the other. Within thirty (30) days after discovery by or notice to Broker of any
breach, Broker shall promptly cure such breach to the reasonable satisfaction of Lender.
a. Reason
Broker agrees to repurchase from Lender any Mortgage Loan, upon the terms and conditions set
forth herein, in the event that: 1) Lender determines that Broker failed to observe or perform o
as breached or breaches, or it has been alleged that Broker has breached, any of the
representations, warranties, covenants, obligations or agreements contained in this Agreement or
any applicable Lender Requirements with respect to any Mortgage Loan; 2) Lender receives a
ev. 3/21/2018 Page 8 of 11
repurchase notification from any third party investor and the repurchase request is based on actual
or alleged fraud or misrepresentation with respect to the Mortgage Loan; 3) Lender determines
that Broker has been negligent in conducting its responsibilities under this Agreement with respect
to the Mortgage Loan; 4) Lender determines that Broker or any other third party affiliated with (as
disclosed in the ‘Affiliations’ section of the Broker Application) or selected by Broker committed
fraud or misrepresentation with respect to the Mortgage Loan or otherwise aided, abetted or
assisted in the commission of fraud or misrepresentation by any third party with respect to the
Mortgage Loan.
b. Timing
Broker shall repurchase any Mortgage Loan required to be repurchased pursuant to this Agreement
within (30) calendar days after Broker’s receipt of written demand for repurchase from Lender.
c. Price
The repurchase price for any Mortgage Loan that Broker is required to repurchase hereunder shall
be an amount equal to the sum of: 1) the then unpaid principal balance of the Mortgage Loan; 2)
accrued interest through the date of repurchase; 3) all unreimbursed advances and extraordinary
costs and expenses incurred by Lender with regard to such Mortgage Loan during the life of the
Mortgage Loan; 4) all other costs, or expenses incurred by Lender, including penalties incurred by
Lender from any investor, or servicer and reasonable attorneys’ fees incurred in connection with
the repurchase; and 5) any fees paid by Lender, including but not limited to all fees and costs paid
to Broker and/or other parties for goods and services rendered in connection with the origination
and closing of the Mortgage Loan.
d. Assignment
Upon any such repurchase of a Mortgage Loan by Broker, Lender shall endorse the Note and shall
assign the Mortgage in recordable form to Broker, without representations and warranties,
whether express or implied, and without recourse to Lender.
a. Assignment
Broker may not assign its rights and/or delegate its duties and obligations under this Agreement
without the written consent of Lender. Lender may assign its rights and/or delegate its duties and
obligations under this Agreement to any subsidiary, affiliate or successor in interest without the
consent of Broker. Subject to the foregoing, this Agreement shall be binding upon and inure to the
benefit of the parties and their respective heirs, legal representatives, successors and assigns.
b. Notices
All notices, consents, waivers, demands and other communications required or permitted by this
Agreement shall be in writing and shall be deemed to have been duly given to a party upon, 1)
personal delivery to the party to be notified if in writing, or 2) delivery by U.S. registered or certified
mail, or 3) delivery by any nationally recognized express courier service. Delivery must be to the
addresses set forth below, or to such other address as may hereafter be furnished by either party
to the other party by like notice, or via electronic mail if consented to by the parties;
ender Princeton Mortgage Corporation
2482 Pennington Road, Suite 1
Pennington, NJ 08534
Phone: (609) 737-1000
roker ________________________________________
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c. Term & Termination
i. Term
The term of this Agreement shall commence on the latest executed date on the signature
page of this Agreement and shall extend until the termination of this Agreement pursuant
to this section.
ii. Termination
Either party may terminate this Agreement at any time with or without cause upon written
notice to the other party hereto. Such termination shall be effective immediately upon
receipt of such notice by the other party, unless a later date is specified in such notice.
Lender reserves the sole and exclusive right to determine the wind down process with
respect to Applications that have been submitted by Broker but not yet approved and/or
funded by Lender as of the termination date. All representations, warranties, covenants,
and obligations contained in or relating to this Agreement shall survive the termination of
this Agreement.
d. Entire Agreement & Modifications
This Agreement constitutes the entire agreement between the parties pertaining to
the subject matter contained herein. This Agreement supersedes and replaces all prior
understandings, negotiations, commitments, writings and agreements between the parties hereto,
whether written or oral, express or implied, with respect to its subject matter. This Agreement may
not be modified or amended except by in writing and duly signed by the authorized representatives
of each of the parties hereto.
e. Books & Records
Broker shall prepare and maintain files of Mortgage Loan documents in accordance to
applicable Lender Requirements. Broker and Lender shall keep and maintain a complete and
accurate account, satisfactory to Lender, of all funds collected and paid relating to the Mortgage
Loans. Broker shall give Lender, its employees, and its representatives, access, upon reasonable
notice and during normal business hours, to audit and inspect Broker’s files, books, records, reports,
statistics and other documents relating to Broker’s obligations under this Agreement. Broker agrees
to cooperate with Lender in the investigation of any claim and assist in the defense of any lawsuit
arising out of the obligations of the parties under this Agreement. In addition, Broker agrees to
cooperate with Lender, its auditors and/or regulatory examiners in any audit of Lender and in any
regulatory examination of Lender.
f. Waiver
The waiver of any right or remedy in respect of any one occasion shall not be deemed a waiver of
such right or remedy in respect of such occurrence or event on any other occasion. Nothing in this
section shall be interpreted to restrict Lender’s right to modify the Lender Requirements a
rovided for elsewhere in this Agreement or to publish such modifications in writing or by electronic
g. Severability
If any provision of this Agreement is held invalid or unenforceable by any court of competent
jurisdiction, the other provisions of this Agreement will remain in full force and effect. Any provision
of this Agreement held invalid or unenforceable only in part or degree will remain in full force and
effect to the extent not held invalid or unenforceable.
h. Third Party Interest
Nothing in this Agreement, whether express or implied, is intended to confer any rights or remedies
under or arising by reason of this Agreement on any persons other than the parties hereto and their
respective successors and permitted assigns. Nothing in this Agreement is intended to relieve or
discharge the obligation or liability of any third person to any party to this Agreement, nor shall any
provision give any third person any right of subrogation or action over or against any party to this
ev. 3/21/2018 Page 10 of 11
i. Agreement Fairly Construed
This Agreement shall be construed fairly as to both parties and not in favor of or against eithe
arty, regardless of which party prepared this Agreement.
j. Governing Law
This Agreement shall be construed and enforced in accordance with and governed by the laws of
the State of New Jersey, without regard to its conflicts of laws principles.
k. Counterparts
This Agreement may be signed in any number of counterparts and by the different parties to this
Agreement on separate counterparts, each of which when so executed and delivered shall be an
original, but all of which shall collectively constitute one and the same agreement. This Agreement
may be executed via facsimile, electronic mail or electronic signature and that a facsimile or
electronic signature of this Agreement containing counterpart facsimile or electronic or other
signature shall be valid and binding for all be their original signatures for all purposes.
l. Release of Liability
The Broker hereby discharges and releases Lender, its parent, subsidiaries, and affiliates, and their
present and future directors, officers, employees, attorneys, and agents, and the successors and
assigns of any of the foregoing, of and from any and all claims, demands, actions, causes of action,
suits, damages, attorneys’ fees, costs, and expenses of suits, liabilities and judgments of whatsoever
kind (a “Claim”), by reason of any act or omission relating to Lender’s or such other party’s use of
any Application or verification of any information contained therein. Broker further indemnifies and
agrees to defend and hold Lender harmless with respect to any Claim made by any past, present,
or future owner, officer, or employee of Broker with respect to such use or verification.
m. Authorization
Broker hereby consents and gives Lender permission to obtain information about the Broker and
all employees or contractors of the Broker, including, without limitation, professional history
information, criminal record information, credit information, and other public record information.
Relating to this authorization, Broker certifies that all required consents and approvals of all
employees/contractors have been obtained to authorize Lender to conduct such background
checks and obtain such credit reports on such individuals. Relating to quality control reviews on
loans submitted by Broker to Lender for funding, Broker consents to the release of information to
regulators and law enforcement agencies about any Application that may be suspected to contain
misrepresentations and/or irregularities. Broker hereby releases and agrees to defend and hold
Lender harmless from all liability for damages, losses, costs, and expenses that may arise from the
reporting or use of any information submitted by Lender or used in any way by Lender.
n. Attorney’s Fees
If any legal action or other proceeding is brought for the enforcement of this Agreement, or because
of an alleged dispute, breach, default, or misrepresentation regarding any of the provisions of the
Agreement, the prevailing party or parties shall be entitled to reasonable attorney’s fees and other
costs incurred in that action or proceeding, in addition to any other relief to which it or they may
be entitled.
o. Costs & Expenses
Each party shall bear its own costs and expenses regarding any services provided hereunder, unless
otherwise agreed in writing.
p. Rights of Offset
Lender shall have the right to, at any time and without prior notice, deduct any penalties, fees,
expenses, or other charges or obligations of any kind owed by Broker to Lender from any amounts
to be paid to Broker for Mortgage Loans submitted by Broker under this Agreement. Broker
consents to a closing agent or any other party acting under instructions from Lender to withhold
such amount from funds to be remitted to the Broker to satisfy any such penalty, fee, expense, or
other charge or obligation of any kind and to remit such funds to Lender.
ev. 3/21/2018 Page 11 of 11
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and effective as of the
latest date written below.
rinceton Mortgage Corporation
482 Pennington Road, Suite 1, Pennington, NJ 08534
____________________________________ _______________________________________
Authorized Signature Date
________________________________________ ________________________________________
Printed Name Title
Broker Name
Broker Address
____________________________________ _______________________________________
Authorized Signature Date
____________________________________ ________________________________________
Printed Name Title
ge 1 of 1
On behalf of _______________________________________________________________ (“Company”),
I certify that the Company is compliant with final Rule 31CFR (Parts 1010 and 1029) of the Bank Secrecy
Act, dated February 14, 2012, issued by the U.S. Department of Treasury, Financial Crimes Enforcement
Network (FinCEN) and has implemented an Anti-Money Laundering Program (AML) and Suspicious
Activity Reporting Program (SAR) for residential mortgage lenders and originators and those said
programs contain:
licies, procedures and internal controls that will reasonably prevent, detect and report
potential money laundering and other suspicious activity
A requirement for educating and training appropriate staff
Independent testing to monitor and maintain adequate programs
A requirement to report suspicious activity to FinCEN within 30 days of discovery
addition, I certify that all appropriate employees of the Company have received AML and SAR training.
By s
igning below, I declare that I have the authority to sign on behalf of the Company, certify that the
above is true and accurate to the best of my knowledge, and certify that the Company has met and will
continue to meet all the responsibilities and obligations detailed above.
_______________________________ _______________________________________
Authorized Signature Date
_______________________________ _______________________________________
Printed Name Title
Page 1 of 1
e below company & individuals give their consent and authorization to Lender and/or Lender’s
designated credit reporting agency to obtain and verify any and all information concerning, but no limited
to, employment, checking and/or savings accounts, obligations and all other credit matters which Lender
may require in connection with Broker’s application.
NAME (First & Last)
SIGNATURE _____________________________________
DATE _____________________
NAME (First & Last)
SIGNATURE _____________________________________
DATE _____________________
A pho
tocopy of the original signed form shall be considered effective consent & authorization
ge 1 of 1
Princeton Mortgage Corporation (the “Company”) is committed to treating all Applicants and Borrowers in a fair and
equitable manner. As part of this commitment, the Company has developed a Fair Lending Policy, which promotes
compliance with applicable fair lending laws, including the Equal Credit Opportunity Act (ECOA) and Fair Housing
Act. As a Broker, the Company requests that you review the fair lending expectations and acknowledge and confirm
that you operate in accordance with fair lending laws as they apply to your business with the Company.
Fair Lending Laws
The purpose of fair lending laws is to ensure that fair and equal treatment is provided to individuals seeking sales
financing. The ECOA, and its implementing regulation, prohibits discrimination in any aspect of a credit transaction.
The Fair Housing Act, and its implementing regulations, contain similar prohibitions against discrimination with
respect to the origination or purchase of loans secured by real estate.
llectively, the Company, ECOA, and the Fair Housing Act prohibit discrimination based on the following: race or
color; religion; national origin; sex; marital status; age (provided that the applicant has the capacity to enter a binding
contract); receipt of public assistance income; familial status; handicap; sexual orientation or gender identify; or the
exercise of any right under the Consumer Credit Protection Act.
The Company is committed to complying with all applicable fair lending laws. It is Company policy to make credit
products available to all Applicants who meet the Company’s credit requirements in a fair and consistent manner
within the confines of safe and sound business practices.
tionally, the Company conducts routine monitoring of third parties for fair lending compliance and reserves the
right to take action against third parties where fair lending risks or violations are identified.
Company requests that the Broker acknowledge its compliance with the Fair Lending Policy and fair lending
practices of the Company during the entire term of the relationship with the Company.
signing below, you certify that you have received, read, understand, and agree with Lender’s Fair Lending Policy
detailed above:
Broker Company Name
______________________________ _______________________________________
Authorized Signature Date
______________________________ _______________________________________
Printed Name Title
Page 1 of 1
Each Broker who executes an Agreement and agrees to conduct business with Lender must be aware that the Broker
bears the responsibility for all actions performed in the course of its business by its employees, agents or licensees.
The Broker is responsible for the content and quality of each Application taken and each Mortgage Loan submitted
to Lender. It is Lender’s policy and intent to support the abolition of loan fraud and predatory lending practices
within the residential mortgage lending marketplace.
Types of Loan Fraud (not all encompassing)
mission of inaccurate or incomplete information, including false statements on Applications and
falsification of documents to substantiate credit, employment, deposit and asset information, personal
information including identity, ownership and occupancy of real property, etc.
Forgery of all documentation and information whether accurate or inaccurate.
Incorrect statements regarding the current occupancy or intent to occupy as stated in the security
Lack of due diligence by Broker/loan officer/interviewer/processor, including failure to obtain all
information required by the Application and failure to request further information as dictated by Borrower’s
response to questions.
Unquestioned acceptance of information or documentation that is known, should be known, or should be
suspected to be inaccurate or incomplete.
Simultaneous or consecutive processing of multiple owner-occupied Mortgage Loans from one applicant
supplying different information on each Application.
Allowing an applicant or interested third party to assist with the processing of the Mortgage Loan.
Broker’s non-disclosure of relevant information.
The effects of loan fraud are costly to all parties involved. Lender stands behind the quality of its loan production.
Fraudulent loans cannot be sold into the secondary market and, if sold, will require repurchase by Lender. Fraudulent
loans damage Lender’s reputation with its investors and mortgage insurance providers. The price paid by those who
participate in loan fraud is even more costly. The following are a few of the potential consequences that may be
incurred: 1) criminal prosecution; 2) loss of Broker’s license; 3) loss of Lender access due to exchange of information
between lenders, mortgage insurance companies including submission of information to investors (Freddie
Mac/Fannie Mae), police agencies, and state & federal agencies; 4) civil action by Lender; 5) civil action by
applicant/Borrower or other parties to the transaction; 6) loss of approval status with Lender.
By signing below, you certify that you have read and understand Lender’s position on loan fraud.
_______________________________ _______________________________________
Authorized Signature Date
_______________________________ _______________________________________
Printed Name Title
Page 1 of 1
[Company Name]
At a meeting or by unanimous written consent of the Board of Directors of _______________________________
dated ____________________, the following Resolution was adopted:
E IT RESOLVED that the individuals listed below are hereby authorized on behalf of said Company listed above to
apply with Princeton Mortgage Corporation for approval as a Broker, to execute any and all other instruments and
documents necessary to properly effectuate the purpose of obtaining said approval, and to conduct business with
Princeton Mortgage Corporation.”
Secretary Signature
Officer Signature