MORTGAGE LOAN ORIGINATION AGREEMENT

This agreement between _____________________________________________ hereinafter referred to as Borrower, and Rudi Hofmann, hereinafter referred to as Broker, is agreed upon as dated and signed below.

Exclusive Right to Represent: Borrower hereby retains Broker as exclusive agent to secure permanent financing in the amount of $______________________ to facilitate the purchase or refinance of property known as ________________________________________________. To begin to secure such financing, Borrower has submitted a loan application to Broker.

Agency and Disclosure: Broker will act as Agent for the Borrower and owes such Fiduciary Allegiance as required of Agents under California Law. Broker shall provide Loan Disclosures to Borrower in accordance with applicable California and Federal Law.

Compensation: As agreed upon by Borrower and Broker, Broker Fee shall not exceed $____________. Compensation is deemed to have been earned upon Borrower's Conditional Loan Approval. Broker Compensation shall be Debited to Borrower's Settlement Charges.  

Settlement Costs:  Borrower acknowledges an Appraisal Fee(s) and any other fees in regard to establishing property value must be paid by Borrower prior to ordering appraisal and property evaluation services to the Lender's Appraisal Management Company. Condominiums and property located in a Planned Unit Development (PUD) require a HOA Certificate. This fee is paid directly to the HOA prior to issuance. Borrower hereby agrees to pay such Fees upon notice. Borrower shall pay All Remaining Settlement Charges at Closing.

Cancellation: If this Agreement is canceled by Borrower prior to Conditional Loan Approval, Borrower agrees to pay Broker a Cancellation Fee of $1,250.00. Cancellation Fee provision shall not apply in the case of a Purchase, if the Purchase Transaction is canceled through No Fault of Borrower.

Duration:  This Agreement shall become effective as signed and dated below. If Broker is unable to obtain a Conditional Loan Approval within 30 days of application, the Cancellation Fee is waived.

Broker Duties: Broker will use all of his skill, knowledge and expertise to help Borrower in selecting the type of financing which is most suitable to Borrower. Broker will obtain the Borrower's credit report, an appraisal on subject property and such other information as required. Broker maintains relationships with many lenders but does not distribute products of all lenders and thus cannot guarantee that the lowest price or best terms available. However, Broker agrees to use diligence in securing financing on the best terms possible for the Borrower's situation. Broker will submit the Borrower's Loan Application Package to the Lender with the terms for the loan type desired that are most favorable to the Borrower. Broker will assist Borrower and all Third Parties in a prompt manner.

Borrower Duties: Borrower agrees to supply information and documents such as tax returns, paycheck stubs, bank statements and all other documents as are required to prepare and complete the Borrower's Loan Application Package. Borrower agrees to execute all loan documents with appropriate information to loan processing, as requested by the lender in a prompt manner.

Secure Document Handling: For maximum security Borrower agrees that all documents shall be transmitted via Broker's Ellie Mae's® 800 Number Fax and received via Ellie Mae's® Website Server www.umboc.com. 

Cause Jeopardy: During the term of this Agreement Borrower agrees not to cause jeopardy to the Borrower's loan application. Thereby, Borrower understands and agrees that all information on Borrower's loan application is true and must be fully documented. Borrower agrees not to change employment. Borrower agrees to pay all liabilities, including current mortgage, when due. Borrower agrees not to extend credit lines, or allow any credit investigation, or open any new accounts, or revolving lines of credit. Borrower agrees not to reduce or dispose of any assets. Borrower agrees not to purchase other property, or put new liens or increase home equity line of credit on real estate owned. Borrower agrees not to apply for financing on subject property with other entities. If application has already been made with other entities Borrower agrees to withdraw such application immediately. If Borrower's loan application is jeopardized due to a violation of this Article Borrower agrees that Broker is entitled to full compensation.

Early Payment Default: After Borrower's loan has funded Borrower agrees to pay six (6)consecutive full monthly payments or pay an Early Payment Default Fee of One Percent (1%) of the original loan amount plus their current outstanding balance.

Entire Agreement: This Agreement shall be enforced in accordance with California Code of Civil Procedure. Judgment shall be conducted within the Jurisdiction of Orange County, California. Judgment that may be awarded regarding this Entire Agreement will be accepted by all parties. If provisions in this Agreement are held to be ineffective or invalid, the remaining provisions will nevertheless be given full force and effect.

______________________________     _______________________________ Borrower                                             Rudi Hofmann

______________________________      ______________

Borrower                                              Date