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Purchase Program
Developer Information Packet

Developer Information Packet
Table of Contents

Section 1. Overview
Who we are and what we offer.

Section 2. Developer Information Requirements
How a developer can set up with us to do business at no cost to the developer.

Section 3. Credit Application Criteria For Your Customer
Our general underwriting procedures.

Section 4. Land Loan Credit Review
Our fast loan evaluation process.

Section 5. Closing Documents
Our streamlined closing document requirements.

Notes & Mortgages
Contracts for Deeds

Section 6. Collection Policies
Our policies regarding collecting delinquent loans

Section 7. Frequently Asked Questions
Some of the most frequently asked questions about our program.

Section 1. Overview

Our Land Note Purchase Program was one of the first of its kind in this industry. Because we have been purchasing land notes for over a decade, we have been able to grow with the evolution of the industry and adapt to changes. That is why we are able to offer the best purchase price in the business.

Here are some highlights of our purchase program:

Rate - Prime + 4% (Floor of 12%)
Reserve of 10%
Minimum Down Payment on Land Note - 5%
Reserve to be Paid Back Quarterly Based on Amortized Balance
Up to 240 Months Financing
No Appraisal Required
$172 Processing Fee per Funded Note
For Land Contracts - $25 Trust Fee
Commitment Fee of $5,000 ($2,500 for commitments of $500,000 and less). 20% due upon acceptance of the term sheet with the remaining amount to be deducted from the first four fundings (not to exceed 50% of the amount due) and refunded upon 60% utilization of the commitment: a 50% discount to be applied when payment is received at the time of approval.
Developer Pays Closing and Legal Fees
Developer Replacement Required

If the land note has the following characteristics, these options are available:

10% down payment = 9% reserve withheld

180 month term = 9% reserve withheld

10% down payment + 180 mo. Term = 8% reserve withheld

Section 2. Developer Information Requirements

The following information is required for approval for our Land Note Purchase Program. We appreciate your efforts in gathering the information. We will submit this information for review as soon as it is received.

Completed and signed Developer Account Application
Signed Personal Financial Statements
Two Years' Complete Personal Income Tax Returns (attach all Schedules)
Company Financial Statements; include Balance Sheet and Income Statement
Two Years' Complete Company Income Tax Returns (attach all Schedules)
Developer's Resume as it Pertains to Land Development
Land Inventory List for Sale
Marketing Strategy for Selling Property
Brochures or Pictures of the Property Would be Helpful
Annual Volume Projections
Certified Organizational Documents
By-laws for Corporations, Partnership Agreements for LP's, and Operating Agreements for LLC's
Fee agreement with us, Diversified Discount Buying Resources

Section 3. Credit Application Criteria For Your Customer

Must Have Minimum Credit History of 6 Months
Open Credit
- No current delinquencies.
Bankruptcies, Foreclosures or Repos
- Must be greater than 36 months old with re-established credit. No derogatory credit since the bankruptcy.
Delinquency on Rental Reference or Land Loan Payment History - Last 12 Months
- Will decline if >2x30, 1x60 or any 90 day
Debt to Income Ratios Cannot Exceed 45%

The above are general guidelines. Every application will be manually reviewed and decisioned based on its credit history and application information.

Common stipulations on approved applications include proof of income and 12 month satisfactory rental reference if no mortgage reference on the credit bureau report. Additionally, self-employed applicants will be required to provide two years' tax returns to support income as stated on the credit application.

Section 4. Credit Review Process

Obtain a Completed Credit Application:
- We will accept any Credit Application provided it contains the necessary information. If you would like to use our standard application, we can provide one for you.
- If we receive an application that is incomplete, it will not be processed. The incomplete application will be returned with an explanation of the incomplete or missing information.

Submit the Completed Credit Application to us:
- Once the completed Credit Application is received, we will begin processing the loan request. You will receive a credit approval, denial or pending status via fax within 1 business day. The pending status is normally a request for additional information (pay stubs, rental verification, etc.).

Section 5. Closing Documents (Notes & Mortgages)

Document If Note & Mortgage If Land Contract

Promissory Note Original note with unbroken chain of original endorsements from payee to us. Final endorsement in chain must run from Seller to us. Typically, promise to pay contained within contract. If separate note executed, original must be endorsed and delivered to us.

Mortgage/Deed of Trust From Obligor to Seller Recorded original or time-stamped copy. N/A

Intervening Assignments of Obligor’s Mortgage/Deed of Trust Recorded original or time-stamped copy. N/A

Assignment to us of Obligor’s Mortgage/Deed of Trust Recorded original or time-stamped copy. Final assignment in chain must run from Seller to us. (Mark original R&R to us.) N/A

Warranty Deed from Seller to National Nominee Group, Inc. N/A Recorded original or time-stamped copy.

Nominee Agreement N/A Original (Blanket Agreement executed prior to first purchase – unrecorded, unless required by recording office)

Executed Warranty Deed from Seller to Obligor Copy (recorded or time-stamped). N/A

Lender’s Title Insurance Policy or Title Certificate Original.
If certificate, must be our form.

Effective date must be no earlier than recording date of mortgage/deed of trust.

Must include tax search or current tax certificate.

All liens superior in priority to the lien of the subject mortgage/deed of trust must be paid from advance – funded in escrow.
Original.
If certificate, must be our form.

Effective date must be no earlier than recording date of Warranty Deed to NNG.

Must include tax search or current tax certificate.

All liens superior in priority to Warranty Deed must be paid from advance – funded in escrow.

Land Contract Copy of Purchase Agreement. Original.

Intervening Assignments of Land Contract N/A Original (if contract not recorded).
Recorded original or time-stamped copy (if contract recorded).

Chain of assignments must be unbroken.

Assignment of Land Contract to us N/A Original (if contract not recorded).
Recorded original or time-stamped copy (if contract recorded).

Final assignment in chain must run from Seller to us. (Mark original R&R to us.)

UCC Search N/A Must be updated prior to first purchase and at least quarterly thereafter – we will order.
Releases of any conflicting UCC filings must be obtained from Secured Parties and filed.

UCC-1 Financing Statements N/A Filed originals or time-stamped copies.
Must name Seller as "Debtor" and us as "Secured Party".

Filed with Secretary of State in which business entity established

Truth-in-Lending Disclosure Statement Original or signed copy.
(Checklist available)
Original or signed copy.
(Checklist available)

Settlement Statement Signed copy. N/A

Transfer of Servicing Notice Copy. Copy.

Escrow Agreement Prepared by us (if applicable) Prepared by us (if applicable)

Payment History Must show date due, date received and amount of each payment received to date, principal and interest split for each payment and current principal balance. Must show date due, date received and amount of each payment received to date, principal and interest split for each payment and current principal balance.

Real Estate Taxing Authority – Change of Address Notice N/A Must identify each lot and instruct office responsible for issuing real estate tax bills to address future bills to purchaser (or developer), notwithstanding the fact that record title will be vested in National Nominee Group, Inc.

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Section 6. Collection Policies

Automated Letter Series:

Day 7 Late / Reminder Notice

Day 15 Still Unpaid / Further Activity

Day 30 Seriously Past Due

Day 45 Pre-Legal Letter

Telephone Efforts:

Day 16-90 Minimum of 4 contact attempts weekly to all available phone numbers; 2 prime time attempts

Day 91+ Minimum of 3 contact attempts weekly to all available phone numbers

Other Collection Letters:

Broken Promise
Received Payment / Still Delinquent
Late Charges / Still Past Due
Final Demand / Further Action

Resolution Options:

CheckFaxx (Check by Phone)
Western Union Quick Collect (certified funds – 20 minutes)
Credit Card (Mastercard / Visa)
SurePay (automatic monthly debit)

Section 7. Frequently Asked Questions

Question: Do I have to sell you land notes in groups?
There are no minimum requirements. You can sell us notes one at a time, or bundle the notes and sell them weekly, monthly, quarterly or whatever meets your needs. A credit approval is good for 90 days.

Question: What if a note is written at less than the required rate of Prime + 4%?
Any note that is written below Prime + 4% will be discounted to yield Prime +4%. The reserve is calculated at 10% of the principal balance purchased.

Question: What happens when the prime rate goes up?
Any loans received for funding 30 days after an increase in prime will be purchased at the current rate. Loans received after an increase in prime, but before the 30 days following increase, will be purchased at the previous rate.

Question: How do I get my reserve back?
The reserve is paid back quarterly as the note pays. As long as you are in compliance withus, any excess reserve over the required 10% of outstanding principal balances will be refunded. Due to early payoffs and refinancing, the average life of land loans that we acquire is approximately 5 years; therefore you would expect to have the majority of this reserve refunded within 5 years.

Question: When is a loan considered in default?
A loan is considered in default when it reaches 60 days past due. At that point you will be required to replace the defaulted note with another note, or buy the note back.

Question: Is there a limit on the number of notes I can sell you?
Our core business is to purchase land notes so we want to purchase as many notes as possible.

Document	If Note & Mortgage	If Land Contract
Promissory Note	Original note with unbroken chain of original endorsements from payee to us. Final endorsement in chain must run from Seller to us.	Typically, promise to pay contained within contract. If separate note executed, original must be endorsed and delivered to us.
Mortgage/Deed of Trust From Obligor to Seller	Recorded original or time-stamped copy.	N/A
Intervening Assignments of Obligor’s Mortgage/Deed of Trust	Recorded original or time-stamped copy.	N/A
Assignment to us of Obligor’s Mortgage/Deed of Trust	Recorded original or time-stamped copy. Final assignment in chain must run from Seller to us. (Mark original R&R to us.)	N/A
Warranty Deed from Seller to National Nominee Group, Inc.	N/A	Recorded original or time-stamped copy.
Nominee Agreement	N/A	Original (Blanket Agreement executed prior to first purchase – unrecorded, unless required by recording office)
Executed Warranty Deed from Seller to Obligor	Copy (recorded or time-stamped).	N/A
Lender’s Title Insurance Policy or Title Certificate	Original. If certificate, must be our form. Effective date must be no earlier than recording date of mortgage/deed of trust. Must include tax search or current tax certificate. All liens superior in priority to the lien of the subject mortgage/deed of trust must be paid from advance – funded in escrow.	Original. If certificate, must be our form. Effective date must be no earlier than recording date of Warranty Deed to NNG. Must include tax search or current tax certificate. All liens superior in priority to Warranty Deed must be paid from advance – funded in escrow.
Land Contract	Copy of Purchase Agreement.	Original.
Intervening Assignments of Land Contract	N/A	Original (if contract not recorded). Recorded original or time-stamped copy (if contract recorded). Chain of assignments must be unbroken.
Assignment of Land Contract to us	N/A	Original (if contract not recorded). Recorded original or time-stamped copy (if contract recorded). Final assignment in chain must run from Seller to us. (Mark original R&R to us.)
UCC Search	N/A	Must be updated prior to first purchase and at least quarterly thereafter – we will order. Releases of any conflicting UCC filings must be obtained from Secured Parties and filed.
UCC-1 Financing Statements	N/A	Filed originals or time-stamped copies. Must name Seller as "Debtor" and us as "Secured Party". Filed with Secretary of State in which business entity established
Truth-in-Lending Disclosure Statement	Original or signed copy. (Checklist available)	Original or signed copy. (Checklist available)
Settlement Statement	Signed copy.	N/A
Transfer of Servicing Notice	Copy.	Copy.
Escrow Agreement	Prepared by us (if applicable)	Prepared by us (if applicable)
Payment History	Must show date due, date received and amount of each payment received to date, principal and interest split for each payment and current principal balance.	Must show date due, date received and amount of each payment received to date, principal and interest split for each payment and current principal balance.
Real Estate Taxing Authority – Change of Address Notice	N/A	Must identify each lot and instruct office responsible for issuing real estate tax bills to address future bills to purchaser (or developer), notwithstanding the fact that record title will be vested in National Nominee Group, Inc.