VA ADDENDUM
(to authorize the Brokering of VA files to RAC) 
This Agreement is made and entered into this    day of       2013 by and between Residential Acceptance Corporation (“Lender”) a Georgia Corporation, having its principal place of business at 5027 West Laurel St, Tampa, FL 33607 and                                                             (“Broker”), having its principal place of business at 
If Applicable: 
 		VA #                                                                 
RECITALS 
A. 	Lender desires from time to time to make real estate loans (“Loans”), to qualified borrowers whose applications are provided to Lender by Broker; 
B. 	Broker, which possesses considerable knowledge in all aspects of real estate lending, including, if Broker is a VA Authorized Broker, lending governed by the rules of the Department of Veterans Affairs, desires to provide Lender, from time to time, completed Loan application packages for Loans to be made or granted by Lender directly to the loan applicants, whether closed in the name of Lender or Broker. 
NOW, THEREFORE, in consideration of the above recitals and the mutual covenants and promises herein contained, the parties do hereby agree as follows: 
1. ELIGIBLE LOAN APPLICATIONS 
Only the types of mortgage loans initialed by Lender below shall be eligible for submission by Broker to Lender for funding by Lender under this Agreement:
   Lender’s Initials 
________ 	Applications for Loans (“VA Loans”) eligible to be guaranteed by the Department of Veterans Affairs (“VA”) 
2. TERM 
(a) This Agreement shall commence on and as of the date first written above, and shall continue until terminated by the parties, subject to honoring loans approved for closing. 
(b) This Agreement may be terminated by Lender without penalty or cause upon written notice to the other party. In addition, Lender shall have the right to terminate this Agreement immediately by notice in writing to Broker in the event of any of the following: 
(i) Broker defaults on any of its obligations hereunder and such default is not cured within fifteen (15) Business days after notice to Broker of such default; or 
(ii) Broker shall initiate or suffer any proceedings of insolvency or reorganization under any federal or state bankruptcy, receivership or other similar laws, or make any common law assignment for the benefit of creditors; or 
(iii) Broker shall, as a result of any act or omission on the part of Broker, cause Lender to suffer any involuntary sale or execution upon any interest in any Loan originated hereunder; or 
(iv) Broker assigns or attempts to assign its rights and obligations hereunder without Lender’s prior written approval. 
3. LENDER’S LOAN PROGRAMS 
Lender will specify to Broker, from time to time, the Loan types, amounts, interest rates, points and other applicable terms under which Lender will consider making a Loan, and the time period during which a Loan program is available. 

4. SERVICES OF BROKER 
(a) Broker will assist prospective borrowers in completing credit applications and such other documents as Lender may require. All such documentation shall be in accordance with the then current underwriting standards and loan policies of Lender, and Broker will promptly submit all information generated pursuant to such applications to Lender for its review and approval. 
(b) Broker shall complete and furnish, to each applicant, any and all information which is required by federal, state and local laws and regulations including but not limited to, the Equal Credit Opportunity Act, Regulation B, the Real Estate Settlement Procedures Act, Regulation X, the Truth-in-Lending Act, Regulation Z and the Fair Credit Reporting Act. 
(c) Broker shall make no credit commitments on behalf of Lender. Lender has the sole and absolute discretion to determine whether a Loan will be granted and under what terms and conditions. 
(d) Broker shall obtain real estate appraisals/CRVs and credit reports only from those appraisers and credit reporting agencies, which are authorized by Lender. Lender agrees to furnish Broker with a list of authorized appraisers and credit reporting agencies, and to update such list from time to time. 
(e) Broker, at its own expense, shall perform such functions and provide Lender with all credit data, financial statements, real estate information and such additional items as Lender, from time to time, may require. 

5. OBLIGATIONS OF LENDER 
(a) Upon receipt of the credit application and such other information as may be required, Lender will, within a reasonable time, consider said application for the purposes of making a Loan. If Lender approves such application, Lender shall so advise Broker. 
(b) At Lender’s option, Lender may obtain appraisals/CRVs, credit reports and other information it deems necessary. 

6. FEES 
Lender shall allow Broker to retain the origination fee and all discounts collected in excess of Lender’s quoted price. Lender may withhold payment of any fee otherwise due and payable to Broker for application to any obligations of Broker to Lender. In no event shall any compensation be paid to Broker unless a Loan is funded, nor shall any compensation by paid to Broker on account of any other loan made to a particular borrower by Lender or upon any increase in the Loan amount after the initial Loan amount has been dispersed by Lender. 
7. APPLICABILITY OF BROKER’S REPRESENTATIONS AND WARRANTIES 
Each Loan shall be subject to all representations and warranties specified in this Agreement, regardless of the provisions of any other documents or conduct of the parties with respect thereto, and this Agreement shall exclusively govern the rights of the parties hereto despite the fact that a Loan may be made subsequent to this Agreement. Each representation, warranty and covenant herein shall survive the making of a Loan and the termination of this Agreement. 

8. REPRESENTATIONS AND WARRANTIES OF BROKER AS TO EACH LOAN 
As to each Loan, Broker hereby represents, warrants, and covenants to Lender as follows: 
(a) All information relating to credit submitted in connection with an application for a Loan is accurate, complete and truthful;  
(b) All documents and instruments submitted by Broker in connection with such Loan are valid and genuine, in every respect; 
(c) To Broker’s knowledge, there is no bankruptcy, foreclosure or other litigation pending or threatened against the borrower; 
(d) There will be no claims or defenses as to the Loan by reason of any act or omission of Broker, its officers, directors, Brokers or employees; 
(e) Broker and each of its officers, directors, Brokers and employees maintain all licenses required of them; 
(f) Broker has no adverse information concerning an applicant which it has not communicated to the Lender; 
(g) Except for the payment to satisfy an existing loan, no fee or other compensation or any portion of the Loan proceeds has been or will be paid directly or indirectly by any person to Broker or any of its officers, directors, employees or Brokers; 
(h) The Loan has not been referred or brokered to Broker by another correspondent or mortgage broker; 
(i) No fee or other compensation has been or will be paid to Broker in connection with Lender’s insurance requirements or any loan or sale escrow; 
(j) Except for the payment to satisfy loan, the loan proceeds are not to be paid, in whole or in part, to a seller who 
(1) pays any compensation to or receives any compensation from Broker,
(2) is related by common ownership or control to Broker, or 
(3) shares its profits or losses with Broker. The term Broker as used in the Paragraph 8
(k) includes Broker’s affiliates, partners, directors, officers, employees and Brokers; 
(l) To Broker’s knowledge, there is no undisclosed secondary financing involved with a Loan.
 (m) Broker has not and will not 
(1) advise any borrower that they are guaranteed a particular interest rate should their loan application be 
approved or 
(2) issue any interest rate lock or similar agreement with the prior written consent of the Lender.
(n) Broker and the loan applicant have agreed that Broker is representing such loan applicant as such loan applicant’s Broker with respect to the loan application and is not acting as a Broker of Lender. Broker has disclosed to the loan applicant that depending upon the interest rate and origination points at which a loan from Lender to the loan applicant closes; Lender may pay compensation to Broker in addition to any compensation to be paid to Broker by the loan applicant. 
9. ADDITIONAL REPRESENTATIONS AND WARRANTIES OF BROKER 
Broker hereby represents and warrants to Lender as follows: 
(a) Legal Status.  Broker is a       validly existing in good standing under the laws of the state of its organization, and is duly licensed to perform its obligations hereunder and will, during the term hereof. Maintain such licenses. Broker agrees to submit copies of said licenses to Lender. If loan applications for VA Loans are eligible for submission to Lender by Broker hereunder, Broker is a VA Authorized Broker duly appointed by and in good standing as such with the Department of Veteran Affairs. 

(b)  Authority.  The execution and delivery of this Agreement by Broker and the performance by Broker of its obligations hereunder have been duly authorized. 
(c) Legality.  The execution and delivery of this agreement by Broker and the obligations which it will perform hereunder do not, and will not, violate any provision of any law, rule, regulation, order, writ, judgment, injunction, decree, determination or award having applicability to Broker or the organizational or charter documents of Broker. 
(d)  Binding Obligation. When duly executed and delivered by Broker, this Agreement will constitute a legal, valid and binding of Broker, enforceable against Broker according to its terms. 
(e) No Suits.   There are, to the Broker’s knowledge, no actions, suits or proceedings pending or threatened against or affecting Broker or the properties of Broker before any court, governmental department, agency, commission, board, bureau or instrumentality, domestic or foreign, which, if determined adversely to Broker, would have a material adverse effect on the financial condition, properties or operations of Broker. 
(f)  Financial Condition. Broker agrees to make current financial statements available to Lender upon request and, in any case, within one hundred twenty (120) days after the completion of each fiscal year. 
(g)  Confidentiality.  Each party agrees it will not use for its own benefit or will not disclose to any person or entity confidential information relating to the other party which it may acquire during the term of this Agreement. 
10. INDEMNITY 
Broker agrees to indemnify and hold Lender harmless from any and all liability, loss, damage, cost or expense resulting from or alleged to have resulted from the failure of Broker, its officers, directors, employees or Brokers to comply with the warranties, representation and covenants of this Agreement. Broker’s indemnity obligation specifically covers all costs and expenses, including any attorneys’ fees incurred by Lender. Lender reserves the right to approve of Broker’s selection of attorneys used to prepare the mortgage documents and the right to engage attorneys of Lender’s choice, at Broker’s expense, which attorneys are retained to represent Broker and perhaps Lender in any action related to Loans originated by Broker under this Agreement. Broker further agrees to indemnify and hold Lender harmless from any and all liability, loss, damage, cost or expense resulting from or alleged to have resulted from the failure of Broker, its directors, officers, employees or Brokers to process Loan applications in a timely and professional manner, unless Broker is delayed in the processing of Loan applications due to actions of Lender. 
11. RELATIONSHIP OF THE PARTIES 
It is agreed that Broker and Lender are not partners or joint ventures, but shall have the status of and act in all matters hereunder as independent contractors. Broker shall hold funds collected on account of any loan in trust for Lender. Broker is not a Broker or partner of Lender and has no authority and is intended to have no power to create, extinguish or modify any right, obligation or liability of Lender to any person whatsoever. It is expressly understood that, notwithstanding the execution of this Agreement and the representations, warranties and covenants contained herein, Lender may make loans with or without the assistance of Broker and may use the services of other Brokers, and Broker may refer real estate loans to other lenders or may close loans on its own behalf. 
12. APPROVAL 
In the event the approval of any entity, including but not limited to private mortgage insurers, governmental or quasi-governmental agencies or potential investors, is required to process, close, fund or service a Loan, Broker agrees to take whatever action is required to obtain such approval. 
13. EXPENSES 
Except as expressly provided herein to the contrary, each party shall bear its own costs and expenses incurred in connection with the preparation of this Agreement and the performance of the obligations contemplated hereby. 

14. WAIVERS 
Lender’s failure to enforce any provision of this Agreement shall not be deemed a waiver of that or any other provision with respect to that or any other transaction with Broker. 
15. TAX REPORTING
Loans Closed in Lender’s Name. With respect to all loans submitted to Lender by Broker hereunder and closed by Lender in Lender’s name, Lender shall report to the federal Internal Revenue Service (“IRS”) all points and interest paid to Lender by the borrower under each such loan and provide copies of such report or other statements thereof to such borrower as required by IRS regulations, as amended from time to time. 
16. NOTICES; FACSIMILES 
All notices required under this Agreement shall be considered given when deposited in the United States Mail bearing sufficient postage and addressed as set forth below:
 To: Residential Acceptance Corporation 
5027 West Laurel St
Tampa, FL 33607
  To: Broker:                                                            

Lender, at its option, may transmit by facsimile to Broker all information regarding loans eligible for submission by Broker hereunder (including, without limitation, price information and product requirements) or regarding any other loan programs offered by Lender and Broker hereby consents to such transmittals by facsimile. 
17. ASSIGNMENT 
Broker shall not assign any of its rights hereunder without Lender’s prior approval 
18. BROKERAGE 
Each party represents and warrants there are no claims for brokerage commissions or finders’ fees in connection with the transactions contemplated by this Agreement. Each party agrees to exonerate, indemnify and hold harmless the other in respect to any and all losses sustained by the other as a result of liability to any broker or finder on the basis of any arrangement or agreement made by or on behalf of such party 
19. CAPTIONS 
Paragraphs or other headings contained in this Agreement are for reference purposes only and shall not in any way affect the meaning or interpretation of this Agreement. 
20. ENTIRE AGREEMENT 
This Agreement and the documents referred to herein or executed concurrently herewith constitute the entire agreement between the parties hereto and there are no prior agreements, understandings, restrictions, warranties or representations between the parties. 
21. AMENDMENT 
No term or provision of this Agreement shall be altered or modified unless in writing and signed by both parties.

22. SEVERABILITY 
In the event that any provision of this Agreement conflicts with applicable law, such conflict shall not affect the other provisions, and to this end the provisions of this Agreement are declared to be severable. 
23. GOVERNING LAW AND VENUE 
This Agreement shall be governed by, and construed in accordance with the laws of the Florida. The parties hereto expressly agree that any judicial action pertaining to the Agreement shall be filed in a court of appropriate jurisdiction, located in Tampa, Florida 

		                                                                         
IN WITNESS, HEREOF, this Addendum has been executed this Day day of Month, 2013. 
Company Name: Company Name 
HUD ID #: HUD ID #

Company Address:      
Corporate Officer/Principal:      

Signature: ________________________________________________
Printed/Typed Name: Name
Title:  Title 

Residential Acceptance Corporation 
Corporate Officer/Principal:      

Signature: ________________________________________________ 
Printed/Typed Name: April Burkett       
Title: CFO