<Independence Mortgage Co. -




This agreement between __________________________________________ , hereinafter referred to as Borrowers, and Independence Mortgage Company, hereinafter referred to as Broker. Broker is licensed by the California Department of Real Estate, license #00851186.

Exclusive Right to Represent: Borrowers hereby retain Broker as their exclusive agent to secure permanent financing in the amount of approximately $____________ to facilitate the purchase or refinance of the property known as ________________________________________________, or a property not yet identified. To secure such financing, Borrowers have submitted a loan application to Broker. Borrowers have not and will not apply to other lenders or through other brokers for a mortgage loan on this transaction.

Borrowers' Duties: Borrowers agree to supply information and documents such as tax returns, paycheck stubs, bank statements, and any other documents as are required to prepare and complete the Loan Application Package, and to execute all loan documents when made available.

Broker's Duties - Broker will obtain the borrowers’ credit report, an appraisal on the property, and such other information as is customarily 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 in the market. However, Broker agrees to use diligence in securing financing on the best terms possible and will submit the completed Loan Application Package to the Lender with the terms for the loan type desired that are most favorable to the Borrowers.

Counseling - Broker will use all of his skill, knowledge, and expertise to help Borrowers in selecting the type of financing which is most suitable to their financial circumstances.

Agency and Disclosure - Broker will act as Agent for the Borrowers and owes them such fiduciary allegiance as required of Agents under California law. In addition, Broker will disclose loan terms to Borrower in accordance with applicable California Law and as required by the REAL ESTATE SETTLEMENT PROCEDURES ACT.

Compensation - Borrower acknowledges that Broker will generally not receive compensation until the loan funds. However, Borrower hereby acknowledges that such compensation is in consideration of Broker’s advice, counsel, skill, knowledge, expertise, contacts and that compensation is deemed to have been earned upon loan approval, as evidenced by a Loan Commitment from a lender.

Source of Compensation - The Lenders we work with will compensate us upon our instructions. If you choose a rate/fee combination in which the lender receives Discount Points, you will also be paying us the Loan Origination Fee, as we have agreed. If you choose to pay a higher rate, such as to get a zero-point loan for example, the Lender will pay us the Loan Origination Fee. Finally, if you choose another combination, you will pay part of the Loan Origination Fee and the Lender will pay the other part.

No Hidden Compensation – In return for the exclusive right to represent Borrower, Broker agrees to limit compensation to ____% of loan amount + $400 processing fee and that any and all compensation by Lender to Broker, regardless of terminology, shall be disclosed fully and completely. Broker agrees that no "Hidden Compensation" will be received from Lender or other source. If Broker receives any Volume Rebates or other Special Incentive Compensation over and above the agreed compensation will be rebated to the Borrower.

Advance Deposits for Third-Party Costs - Borrowers acknowledge that if an Advance Deposit is required for the appraisal, credit report, said deposit is to be retained in Broker's Trust Account. Borrower hereby authorizes Broker to pay such fees out of his deposit. If the actual costs of these services are less than deposit, the excess will be refunded to Borrowers after close of escrow.

Check here if a deposit is required. The deposit for appraisal and credit report is $__________.

Check here if appraiser is to be paid directly - $_______ estimated actual.

Double-Applications - Borrower agrees not to apply for this same financing with another lender or if application has already been made, to withdraw the application immediately upon written credit approval by Independence Mortgage Company. Borrower shall provide to Independence evidence that such application has been withdrawn.

Cancellation - If this Agreement is cancelled by Borrowers after their loan has been approved, Borrowers agree to pay Broker a Cancellation Fee of 1% of the loan amount. This provision shall not apply in the case of a purchase if the transaction is cancelled through no fault of the Borrowers.

Duration and Voidability - This agreement shall become effective as of this date, __________. shall continue until the transaction closes, anticipated to be _____________.

If, however, Broker has been unable to obtain loan approval within 30 days of application, this agreement is voidable at the option of the Borrowers and the Cancellation Fee is waived.

 __________________________________ _______________________________

Borrower                                                  for Independence Mortgage Co

_________________________________ __________

Borrower                                                 Date


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