WORLD SAVINGS AND LOAN

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WORLD SAVINGS AND LOAN

• Basic Product Knowledge

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You Need to Affiliate Yourself with a Lender Who
Offers Products that..

• Provide the customer with payment options
• Provide cash flow
• Provide rapid equity build-up
• Offer customization of a loan term
• Are based on stable indices
• Allow your customer to pick payment
• Offer a financial plan to help pay down debt, pay
  for education and give you the ability to retire
• And much more.

3
Identifying Needs Vs. Wants
What people think they want is often times very
different from what they need!

WANTS NEEDS Credit Debt Reduction To
spend Ability to save Predictability
Stability No change
Flexibility Fixed products
Adjustable products
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World Savings Indices

• COSI Cost of Savings IndexThe 12 month average
  of interest paid by world savings on
  checking, savings, and CDs
• CODI Certificates of Deposit IndexThe 12-month
  rolling average of the monthly yields on
  the 3-month CDs published by the federal
  reserve
• COFI Cost of Funds IndexThe 12 month average of
  interest paid in the 11th district
  (California, Arizona, Neveda saving institutions)
  on checking, savings and CDs.

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Adjustable Rate

• 2 Components of the Loan
• Index The adjustable part of the loan
• The impartial rate reflecting economic interest
  conditions
• Margin The banks cost of doing business
  plus a profit Index Plus Margin
  The fully indexed rate

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Payment Cap Vs. Rate Cap

• Payment Cap Your payment cannot go up or down
  more than 7.5 of your previous payment
  (Pick-a-Payment program has no floor).
• For example If your monthly payment was 1,000,
  the most you would have to pay next year would be
  1,075. Only 75 more no payment shock!
• Other lenders offer a 2 to 6 interest rate cap.
  
• This can mean a payment increase of up to 21
  from one year to the next. When is the last time
  you received a 21 increase in your salary?
• This is payment shock!

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Which Looks Better To You?

• Ours payment cap
• 7.5 of the payment
• 1,075
• New Minimum Payment

• Their interest
• rate cap
• 26 of the interest rate!
• 1,250
• New Minimum Payment

No payment shock
A 2 increase in rate can
mean up to a 21 increase in
payment to your borrower!

Now thats payment shock!!

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Lifetime Cap

• This is the maximum your interest rate can
• go up during the lifetime of the loan
• Offers payment protection
• What would it take to reach it?
• What does history tell us?
• Worlds lifetime cap at 11.95 to 12.25
• 11.95 interest
• - 2.65 margin
• 
  9.30 index
• Where are COSI and CODI today?

11.95 CAP
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Closing Costs

• Closing costs
• World fees are competitive
• Retail and Wholesale closing costs
• Upfront fees at application (no net funds)
• Retail 175 application fee
• Wholesale 310 processing fee
• Wholesale fee appraisal 100
• Points
• Can be waived, increased or decreased using
• Footnotes and fnma sliding scale.
• Appraisal costs
• Retail 200 Wholesale 325 WIC 225

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Amortization Tools

• How much interest do you pay on a loan?
• What proof statements are available to
• make you a financial expert?
• Loan 6, Financial Objectives Worksheet
• Qualifier Plus IIIx MARM Calculator
• Equity Builder Program

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The Components Of A Loan(Index, Margin
Mechanics Of The Arm)

• 5 COMPONENTS TO EVERY LOAN
• INDEX Impartial rate reflecting economic /
  interest conditions
• MARGIN Cost of doing business plus a small
  profit
• CAPS Caps and floors, rate and payment
  protection
• POINTS/FEES Upfront costs
• AMORTIZATION TOOLS How much interest do you
  pay?

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What Is Negative Amortization

• The payment is not sufficient to pay the full
  interest accrued. Partial interest is paid and
  your principle balance could increase.
• Is negative amortization a bad thing?
• Ask yourself
• Have you ever paid the minimum payment on a
  credit card?
• Does the balance go up or down?
• Would you rather pay deferred interest at 18 to
  21 Or at 4.90?

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Benefits Of Negative Amortization

• Creates cash flow
• Payoff high interest rate credit cards
• Invest and or save money for retirement
• Save for college tuition for the kids
• Vacation money, emergency money, home improvement
  money
• Low start rates offer payment options to create
  cash flow when you need it!

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Payment Options

• Your customers can select from up to four
  different
• Payment options each month from their billing
• Statement.
• The minimum amount due (Deferred
• interest may accrue and is added to
• the loan balance.)
• Interest only payment
• A full principal and interest payment
• A 15 year plan (Certain conditions apply to be
  available for the 15 year plan)
• Payment options not listed on the billing
  statement with
• automatic payment or an Equity Builder program.

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Nuts And Bolts

• How Does an Adjustable Rate Mortgage Work?
• Low start rate example 2.50
• 1st year payment is at 2.50 for 12 months
  loan amortizes at fully indexed
  rate
• Remember we have a payment cap of 7.5 which
  equates to
  approximately .75 in an interest rate.
• 2nd year payment is at 3.25 for 12 months
  loan amortizes at fully indexed
  rate
• This pattern continues each year until the low
  start rate meets the fully indexed rate. Then
  this loan amortizes the payment is at the fully
  indexed rate the remainder of the loan term
  (without a minimum payment).

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Nuts And Bolts Example
The difference between the low start rate payment
and the fully indexed payment will determine how
much deferred interest there is.
4.90 YR 5 Full Index Payment
4.75 YR 4
4.00 YR 3
3.25 YR 2
The index is subject to change on a monthly
basis, however the payment remains the same for
12 months.
2.5 YR 1 LOW START RATE
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Prepayment Penalty

• What is worlds prepayment penalty?
• If the borrower pays off their loan within the
  prepayment period, they will be assessed 2 of
  their original loan amount.
• In any 12 month consecutive period if the
  borrower pays more than 20 of their original
  loan balance, they may be subject to the
  prepayment penalty.
• Can it be waived?
• Yes, upfront utilizing the rate sheet footnotes.
• Yes, with the following 3 circumstances under
  special guidelines
• 1. The current borrower refinances the loan
  with world
• 2. The buyer of the propery obtains financing
  of the world property
• 3. The borrower obtains a new loan with world
  within six months of the current
  loan being paid off.
• Please review the prepayment fee waiver matrix
  to clarify if fees can be waived!

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Product Menu
HOUSE SPECIALTY Pick-a-Payment Loan OLD TIME
FAVORITES MARM 12 MARM 36 Straight
Arm
SPECIALTIES OF THE HOUSE Foreign
National 100 Loan Zero Fee Refinance CLP And
CLP
BACK BY POPULAR DEMAND FNMA Fixed Portfolio
Fixed 5 Year 2-step
DESSERTS ELOC Saleable Seconds Equity
Builder Fixed Rate Option
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Pick-a-Payment Loan

• Adjustable rate product with a focus on payment,
  not rate
• Offers payment choices and flexibility
• The borrower sets their minimum payment at time
  of application
• The payment can be anywhere from the low start
  rate to the fully indexed rate
• The payment cap is at 7.5 with no floor
• Modification period - none

2.5
5.0
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Pick-a-Payment FAQs

• How does the borrower select their initial
  payment?
• The Rep should suggest payment options to the
  borrower using a rate factor as a reference
• Only the payment should be quoted to the borrower
  not the rate
• The borrower must select their payment, fill out
  and sign a Request for Initial Payment form at
  application
• Once the borrower chooses their minimum payment,
  can they change their options from month to
  month?
• At application they choose the minimum payment
  option of
• 2.5. Each month they can elect to make that
  payment or a higher payment
• At application they choose at the Interest only
  payment. Each month you can elect that payment
  or higher. You could not elect the minimum
  payment at 2.5

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Pick-a-Payment Benefits

• This Loan is less confusing and easier to
  understand for the borrower
• Low Cost Affordable Payments that Provide
• Payment Options
• Cash Flow
• Flexibility
• Peace of Mind
• Allows borrower to control their own mortgage and
  use it as a financial tool
• No Floor enables the borrower to have the lowest
  payment possible

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ARMs Vs MARMs

• STRAIGHT ARM
• This is an Adjustable Rate Mortgage. The rate is
  based on the Index Margin and will adjust
  monthly. The original start rate payment will
  remain fixed for 12 months. The annual payment
  adjustment is 7.5 of the previous years minimum
  payment Down or Up.
• Neither the Payment Cap or Floor applies on the
  5th, 10th, 15th, 20th, 25th or final Payment
  Change dates.
• This is a great product for borrowers who do not
  want or
• need the low start rate for cash flow. Give them
  peace of mind
• with the straight arm by reducing or eliminating
  their chance
• Of Deferred interest.

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Foreign National

• 30 down
• No income, no asset, no credit
• The borrower must choose a loan program with an
  equity builder
• CD loans can be done with this program with 10
  down into the property and 20 put into a CD at
  our bank
• Borrower must complete the Information Sheet for
  Second Home Borrowers and open up a U.S. Bank
  account for payment withdraws

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100 CD Loan

• Sponsor pledges 20 deposit into World CD (FDIC
  insured) for owner occupied transactions. Non
  owner occupied transactions require a 25
  pledge
• Sponsor pledges of 10 available on purchase
  transactions full doc. MI coverage required
• QQ loans must be self-sponsored. Full doc
  relative is okay
• Stated income and stated assets at 20 down into
  the CD
• Sponsors receive interest income from the CD
• Release of CD pledge Loan reaches 80 of the
  original purchase price or its original
  appraised value, or after two years a current
  world appraiser indicates an LTV of 80 or less
• Your borrower can hold on
  to their money!

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Zero Fee Refinance

• Option available on Owner Occupied, Retail Loans
• Lender fees and title fees will be waived when
  the start rate and spread are increased by .50
  for loans 100k to 149,999, and .40 for loans
  over 150k
• This loan is not available on loans less than
  100k
• The prepayment fee is required on this loan
• Fidelity National will arrange for the document
  signing, record the loan, and provide the title
  work
• If your borrower is short on funds to close, this
  is a great loan to utilize to save the deal and
  fund the loan

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Fixed Rates

• FNMA Fixed Rates
• Desktop underwriting
• Rate lock available 30 days from commitment or 45
  days from application by adding .10 to the rate.
• Five Year Two Step
• Only fixed to a fixed in the industry
• 5 year fixed loan adjusted to the weekly average
  of the 10 year t-bill plus 250 basis points.
• Portfolio Fixed Rates
• QQ underwriting available for loans 80 LTV or
  lower.
• Buy downs available on rate and fees for FNMA,
  portfolio fixed, and 2 step loan.
• Fixed rate fall-out gives us another opportunity
• to do a borrowers loan with an adjustable!

FNMA
ADJUSTABLES
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Equity Line Of Credit (ELOC)

• Three Types
• Optional ELOC not necessary for the transaction
  (partial usage of the ELOC is still considered
  optional)
• Concurrent ELOC necessary for the transaction
• Standalone World property of free clear
  property with no mortgage.
• Based on prime rate plus a low margin
• Interest only payment for first 10 years
• No prepayment penalty (500 early closure fee the
  first 3 years)
• Limited closing costs 200 to 400 app fee plus
  state specific closing costs.
• Purchases and refis at 90 no mi.
• Starting 2nd year only 50 yearly fee.
• Minimum line 10k max line 200 CLTV 500k
• This program is credit score driven
• Pay Down The ELOC, Use It Again! Low Appraisal,
  Add An ELOC! This Program Increases Customer
  Retention!

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Saleable Seconds

• 80-15-5 95 loan
• Utilized for borrowers that want to put 5 down.
• Full doc loan
• Purchase only transactions
• Gifts not allowed
• Fixed rate second trust deed
• Amortized 10-15-20-30 years
• This program can be applied to
  any index

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Equity Builder

• Its not your payment that matters but how its
  applied!
• Bi-weekly payments save thousands of dollars in
  interest expenses.
• Unlike other lenders, our e.B. Loan amortizes
  every 14 days (its trade-marked)
• A 30 year term loan pays off in approximately 23
  years.

150,000 LOAN
359,263
307,569
1 5 10 23 30 Loan pays off 6
years early with savings of 51,694
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Fixed Rate Option

• The fixed rate option is a loan feature that
  gives the borrower a one-time right to change
  their adjustable interest rate to a fixed rate
• The fixed rate option can be exercised starting
  the 2nd year to the 7th year. Wholesale Loans
  The fixed rate option is available after the
  prepayment penalty period
• Cost to convert the loan is 200
• The loan converts to the FNMA 60-day delivery
  rate plus .55 for conforming loans and 1.00 for
  jumbo loans
• To exercise the fixed rate option the borrower
  can call the World Savings customer service
  department.

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In Summary

• World Savings Is About Many Things!
• Financial planning for the borrower
• Stable, strong, dependable indexes
• Payment lifetime caps to protect the borrower
• Affordable closing costs
• Payment options that offer cash flow to the
  borrower
• Numerous loan products (fixed and adjustable)
  that make us a one-stop shop.
• Americas best no doc lender.
• A foreign national program with great rates.
• We offer many enhancements to our loan products
  such as ELOCs, Saleable Seconds, Equity Builder
  and Fixed Rate Option.
• CLP, CLP, express closing (low to moderate
  income loans).
• We offer you the training, the products, and the
  programs that
• will enable you to be a top producing rep in the
  mortgage
• industry.