Company Overview_Shattuck_06172015

TFSB | Company OVERVIEW

The Federal Savings Bank | Company Overview | 1

Key Personnel

The Federal Savings Bank | Company Overview | Agenda | 2

Michael CrossettExecutive Vice President

Michael O’DonnellNational Director ofStrategic Growth

Kenneth shattuckSenior Vice President

Dana GreenRegional Recruiter

Key Personnel


Andrew ChojnowskiChief Operating Officer,

Home Lending

Jason BresslerChief Information Officer

James FloresDirector of Marketing

Joseph MichelettoNational Director of

Training and Transition

Chuck SmithDirector of Secondary

Marketing

Agenda

About Us

Our Process

Mortgage Banker Support

Why TFSB


TFSB OVERVIEW

Background: We have over 18 years of mortgage lending experience. In 2011, we acquired a federally chartered bank and re-branded the company as The Federal Savings Bank. Our focus has always been on educating our customers about the mortgage process and providing opportunity for home ownership across the country.

Mission: We are 100% committed to the home loan business, consistently delivering the highest level of customer service and satisfaction. We are a perpetual recipient of the highest tier quality and service ratings by our investors.

Platform: We are empowered and trusted to grow a robust business nationally, with no restrictions (no state level licensing requirements). We are federally chatered - not reliant on warehouse lines.

Headcount: 650+ full-time licensed mortgage bankers in both field sales and inside sales positions, funding over $2B in 2014. • Sophisticated Consumer Direct Sales Center offering outsource and private label fulfillment.

Focus on Technology: We leverage technology solutions to improve customer contact, efficiencies and quality controls throughout the loan origination and operations life cycle.

The Federal Savings Bank | Company Overview | About Us | 5

GROWTH & STRATEGY


(Tot

al A

nnua

l Rev

enue

in B

illion

s)

(Years)

1

2

2012 2013 2014 2015

3

4

$1.25 B

$1.65 B

$2 B

$3.5 B(projected)

Our Offices

National lending platform with 17 regional full service loan production offices across the country

Loan Production Offices Mortgage Banking ServicesChicago, IL Origination, Processing, Underwriting, Closing, Post Closing, Quality Control

Naperville, IL Origination, Processing, Underwriting, Closing

Schaumburg, IL Origination, Processing

New York, NY Origination, Processing, Underwriting

Babylon, NY Origination, Processing

Long Island City, NY Origination, Processing

Scottsdale, AZ Origination, Processing

Grand Junction, CO Origination, Processing

Overland Park, KS Origination, Processing

Annapolis, MD Origination, Processing

Timonium, MD Origination, Processing

Las Vegas, NV (2) Origination, Processing

Lakewood, NJ Origination, Processing

Mount Laurel, NJ Origination, Processing

Mellville, NY Origination, Processing

Columbus, Ohio Origination, Processing

Austin , TX Origination, Processing

Tysons Corner, VA Origination, Processing


What we offer

Comprehensive product menu including: • Jumbo and Super Jumbo • Agency • FHA, VA and USDA • Condo (warrantable and unwarrantable), Co-ops • HECM Reverse Mortgages

Asset Based Lending Programs available – including asset depletion loans and other out of the box jumbo loan scenarios.

Security Based Lending Programs – leveraging liquid assets as collateral for loans, enabling customers to utilize loan proceeds for ANY purpose!

Portfolio lending options also available for unique loan situations and high quality near miss loans. Cross-collateralization options available.

Credit Restoration Services – our in house credit repair program can dramatically improve credit and will help you close more loans!


INVESTORS & STRATEGIC PARTNERSHIPS


Agency Aggregators Non Agency Investors

MI Groups Critical Vendors Key Strategic Partners

New Leaf - Credit Restoration Services


SUCCESS STORIESStrengthening your credit to help you get the home you deserve.

Sonya entered into our program on 7/10/14 and had a middle score of 602. She had 17 negative items on her credit report and her banker needed a 680 to offer her a great rate on her new home purchase. She wanted to purchase before the end of the year. On 11/22/14, Sonya received the great news that her score had jumped to a 682. 3 out of 4 collections had been removed and all 11 accounts from a previous Bankruptcy had been removed! Sonya is now a proud homeowner!

Diane enrolled on 6/10/14 with credit scores of 621, 630 and 612. She had a lot of different derogatory that were preventing her from qualifying. In addition, she went through a Foreclosure 3 years prior that was showing as not completed. She had already put a bid on a home that was set to close on the 1st of November. She was very motivated to get the results before that time. We were able to remove 78% of the negative accounts including updating the foreclosure so that it was not affecting her score. Her file was submitted to underwriting in October, 2014 and approved!

Ron Entered into our program on 5/14/14 with credit scores of 663, 642 and 620. He had a number of different collections that were preventing him on saving thousands by refinancing. After a two mere rounds of disputes, 5 of the 8 collections were removed. This shot up his score up to a 764, 702, 680 and he closed on his loan in July.

Eric came to us on 4/10/14 with a midscore of 602. He had 15 different collections, a few charged off accounts as well as 49 different late payments. His dream of purchasing his first home seemed near impossible. On 12/19/14, that dream became a reality. We were able to remove 11 of the collections, 7 of 8 charge offs and 32 of 49 late payments to boost his score to a 685. Eric was thrilled with the success of the program.

602 | 682

602 | 685 642 | 702

630 | 681Sonya : 9/10/2014 - 11/22/2014

Eric : 4/10/2014 - 12/19/2014 Ron : 5/14/2014 - 7/15/2014

Diane : 6/10/2014 - 10/1/2014

The above stories are examples only. Enrollment in New Leaf powered by Get Credit Healthy is no guarantee of success. Your performance in New Leaf powered by Get Credit Healthy may vary.

Copyright 2015 © The Federal Savings Bank | All Rights Reserved | thefederalsavingsbank.com

For more information, please contact :

Credit restoration services include: • Get Credit Healthy Program, running from 30 to 90+ days • Credit Simulator to show you what steps to take to improve credit quickly • Rapid Rescore to update trade lines and credit scores immediately

For customers that participate in the New Leaf Program, TFSB will reimburse the upfront cost of getting into the program at the time of loan closing!

Our Process

The Mortgage Banker is a single point of contact, they perform each of these critical steps:

100% Customer Satisfaction• 24 Hour pre-approval• 30 day close

The Federal Savings Bank | Company Overview | Our Process | 11

• Entire package created in-house• Web based document creation

• Integrated website• Automated client/ server application system

• Self fund our closings• Electronic signature and in-house closings

• Automated GSE underwriting • Fully paperless/ imaged process

The Loan Manufacturing Process

BANKER

Application:The Mortgage Banker is responsible for taking a full, complete loan application in Encompass

Qualification:Run Automated Underwriting System (AUS), (DU/LP), to receive automated underwriting approval

Place:Run Bank’s Pricing System (BPS) to find the investor best suited for the loan structure

Price:Price the loan appropriately, making sure to reach rate plan chosen, and consider any lender credits

Pitch:Make the sale - Get firm verbal commitment from borrower / Collect application fee

Set Expectations:Considering all turn times, discuss appropriate est. closing date, introduce analyst team, stress urgency

Loan Quality Analyst (LQA)• Review application for completeness, 1003, Automated Underwriting System (AUS), Credit Bureau Report (CBR) and all compliance pages

• Contact borrower to reinforce expectations. Send full app kit and disclosures, doc request list

• Contact borrower w/in 48 hours to retrieve all docs

• Collect appraisal and application fee

• Review loan and docs to ensure file meets investor guidelines

• Re-Run Automated Underwriting System (AUS) if needed

• Update 1003 with revised income

• Order: 4506T, Full and Verbal Verification of employment (VOE), FHA/VA Case #, CAIVRS, Flood, Condo/Coop docs, appraisal, title, payoffs

• Upload all docs to appropriate doc holder

• Complete Loan Quality Analyst (LQA) portion of tracking screen

Closing Analyst• Analyze Clear to Close (CTC) and address all At Close/Funding conditions

• Confirms closing date and time with Banker and schedules closing with title company

• Final Update to: Payoffs,Title, Insurance

• Finalize Invoice Checklist

• Analyze doc expirations

• Finalize Closing Checklist

• Complete Tracking Screen and Encompass

• Submit complete, clean, accurate file 48 hrs prior to Closing (72 hrs for CEMA, IHDA, TX c/o)

Underwriting Analyst• Analyze package for completeness to ensure loan file meets investor guidelines. Contact Borrower for trailing items

• Order or retrieve: HOI, HO-6, Flood insurance, Fraud Manager, Subordination agreement, ineligible lists,SSN verification, payoff, appraisal, title, condo/ coop docs, credit supplements, CPA letters, etc.

• Complete analysis of all borrower documents, recalc income, scrub appraisal and title, address any and all issues

• Update all Encompass screens, re-run Automated Underwriting System (AUS)

• Complete Underwriting Analyst (UA) portion of Tracking Screen

• Submit COMPLETE file to Underwriting

• Submit for Condo warranty

• Review Underwriting approval when available

Closing Analyst• Analyze Underwriting Approval, enter date of review in Tracking

• Call out conditions to Banker and Borrower(s)

• Obtain:

All documents to clear conditions

• Follow up: Insurance, payoffs, Title, Condo/COOP Warranty, Subordination

• Analyze for accuracy: Insurance, payoffs, title

• Order: Soft-pull credit report, supplements for new inquiries, MERS

• Analyze: Title: for all requirements and address issues, insurance for proper coverage and mortgagee, complete tracking screen etc.

• Resubmit for Clear to Close (CTC)/START Cls Checklist

• Submit for Compliance approval

Complete - Send to LQA milestone

07/2014

Complete - Send to Processing milestone Complete Submittal - Assign to Underwriter milestone

Complete - Resubmittal milestone Complete - Send to Closing milestone

UNDERWRITING

/

CONDO

co-op

REVIEW

UNDERWRITING

REVIEW

FOR

CTC

CLOSING

The Federal Savings Bank | Company Overview | Mortgage Banker Support | 12

Assistance Programs

3 Levels of Mortgage Banker Support designed to increase production, allow the Mortgage Banker to focus on sales/business development and enhance quality of life

Loan Quality Analyst prepares your loan application for submission to operations, will follow up with borrower to obtain required documents and will order required services (appraisal, title, etc.)


Assistance ProgramInitial Production

Qualification RequirementsBenefits to Mortgage

BankerOngoing Monthly Min.

Production Requirements

Loan Quality Analyst(LQA)

NoneAssistant dedicated to

supporting 3 or more bankers. (For producers funding 2-6 loans per month.)

None

Plan A $1.75M (or $7,000 in revenue)/month for 2 of 3 month period

Assistant dedicated to supporting 2 bankers

$1.25M or 5 funded units/month

Plan B $4.5M (or $25,000 in revenue)/month for 2 of 3 month period

Assistant dedicated solely to supporting your business

$2.5M or 15 funded units/month

Marketing Highlights


Superior in-house Marketing team dedicated to supporting Mortgage Bankers• Extensive onboarding of new Mortgage Bankers• Creation of a personalized website with pictures and bios• Development of co-branded real estate listing sheets• Extensive marketing collateral and branded materials available

Marketing Highlights


Marketing Campaigns• Development of an automated marketing campaign, customized for each Mortgage Banker – weekly newsletters and monthly campaigns available

• We utilize state of the art CRM programs to manage customer databases, run marketing campaigns and increase our interactions with potential clients and referral partners

The Employee Intranet includes a Marketing Department directory enables Mortgage Bankers to download custom flyers and place orders for promo items.

Marketing Expense account (MEA)


Marketing Expense Account (MEA) – additional funds available monthly toMortgage Bankers to grow and promote their business.

• MEA amount driven by monthly production tiers - $350 to $600 available

• Mortgage Banker has discretion regarding how the funds are used – can be used to purchase marketing collateral, place advertisements, purchase goods through marketing store, etc.

Monthly Loan Amount Tier Marketing Expense Funds Earned

$750,000 - $1,000,000 $350

$1,000,001 - $2,000,000 $450

$2,000,001+ $600

Marketing Resources


Additional External Marketing Resources

• Prospect Marketing - Send postcards to your prospects about seasonal info, cultural events, household guides, culinary guides, sports schedules, and special events!

• CardCare

- CardCare offers a variety of elegant and high-quality greeting cards and gift baskets.

• BOOM!

- Create co-branded real estate information listing sheets with multiple loan scenarios, pictures and contact information for you and the realtor

INVESTORS AND GUIDELINES


We have over 14 different investors to choose from – if the loan doesn’t meet oneinvestor’s guidelines, try another one! • Increase your opportunity to find a loan for your qualified borrowers • We don’t just sell one set of guidelines!

Several options for scenario support, underwriting assistance and guideline questions:

• Internal Scenario Support Desks for FHA, Conventional and VA loans • Unrestricted access to our investor websites and lending guides – research and obtain answers immediately • Investor scenario support desks and underwriting desks – phone or email • Our Operations Team! Contact our Operations Manager if you need assistance with a loan file.

Pricing engine can be leveraged to give you an indication of qualification. Programguidelines also accessible through the pricing engine.

Training


New Hire Integration and Orientation Training

• 3 days of training that every new hire participates in – will give you a thorough understanding of our systems, processes and compliance requirements• Training is led out of our Chicago HQ – you will participate via live video feed• Hands on support with our loan origination system, pricing engine and other critical systems

Ongoing Training • We have a weekly national sales meeting on Monday mornings – you will hear from all major department managers providing important weekly updates (Secondary Marketing, Operations, Processing, Closing, Marketing, etc.)• You will be provided access to the LifeSize website to view live trainings and review recorded trainings covering a wide ranges of topics• Additional trainings on specific topics are available through our investors and mortgage insurance company providers – attend at your convenience

PRICING AND COMPENSATION


Pricing: Automated Pricing Engine to assist in identifying best rate/price options

• Guidelines embedded in pricing engine• Simplified lock functionality• Multiple investors to choose from• Best execution, various ways to explore pricing data for optimal execution

Compensation: Banker selects their Plan for upcoming quarter, choosing a targetednet margin for your production • Banker is paid basis points on total funded loan amounts• Additional compensation paid for quality and pull through• Commission are paid twice a month - commission statements are distributed 5+ days before payroll to ensure accurate pay for each pay period

CHOOSING THE RIGHT PARTNER FOR YOUR BUSINESS

The Federal Savings Bank | Company Overview | Why TFSB | 21

6 cornerstones to picking the right company as your partner

• Extensive product menu covering forward and reverse mortgages• Asset Based lending programs for high net worth clients• Portfolio lending options for make sense out of the box scenarios

• Flexibility in pricing loans across all rates – you control pricing• Transparency – you see our investor pricing• Structure loans to offer competitive rates and lender credits

• Streamlined operations flow delivering best-in-class turn times• Loan Quality Analysts to help push your loans through the pipeline• We are paperless and have great technology to support your business

• Competitive compensation plan allowing you to create great loan scenarios while making a great income• Price loans as aggressively as you need to without approvals or exceptions

• Great portfolio of marketing collateral all branded with you• Customer database marketing campaigns automated for you• Personalized web site to apply online

• As a federal bank, you can originate loans across the country• We have 18+ years of experience in mortgage lending• We love the mortgage business and want to grow!

Product Offering

Competitive Pricing

Operations Support

Compensation

Marketing Support

Company Structure & Commitment

Our Mortgage Banker Business Model


We are looking for seasoned talented Mortgage Bankers that understand how toleverage the tools and resources available to grow a great profitable business!

• Extensive marketing support • Efficient, smooth and proficient operations team • Comprehensive product menu and services – capture more borrowers!

Outside Mortgage Banker model • You are not required to work out of a bank branch • Self-sourced business through relationships, referral partners, etc. • Focus on business development, not loan processing! • Business Owner / Business Manager Philosophy • Great platform for professional Mortgage Bankers that desire less bureaucracy and more control over how they spend their time and grow their business

Why the federal savings bank?


We are professionals • We are a team of highly trained, motivated and experienced Mortgage Banking professionals. • We show respect for our colleagues and our clients, and are committed to the highest standards of quality, integrity and professionalism.

We are fully accountable as a team: • We control the lending process from origination to funding and possess the industry’s most comprehensive suite of program and product offerings. • We are each accountable for providing expertise and best-in-class service to our customers.

We are growing: • We funded over $1.65 B in mortgage loans in 2013 and expect to increase that by more than 66% in 2014. • Our aim is not to be the biggest – our consistent success is a result of our focus on controlled growth, expanding where we find profitable opportunities to increase our brand.

We are vested in your success: • The Federal Savings Bank is committed to helping every one of its employees achieve their professional and financial goals. We offer one of the most aggressive and flexible compensation plans for our Mortgage Bankers and Operations staff, and are steadfast in supporting your growth and development. • From our industry-leading product menu to our marketing and technology investments, we are committed to mortgage lending and want to foster an environment to champion your objectives.


Questions?

Company Overview_Shattuck_06172015

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