Deephaven Seller Guide Summary

Deephaven Seller Guide (August 2017)
Deephavens Seller Guide is for approved mortgage lenders only. All information is subject to change without notice. Further dissemination is strictly prohibited.
Nothing in the Seller Guide should be construed as an offer for the extension of credit or a commitment to purchase loans. Deephaven does not provide legal
advice. Nothing in the Seller Guide should be relied upon as legal advice. Lenders should seek their own legal or accounting advice, as appropriate. Deephaven's
products and programs are not available in all states. For more information on Deephaven's state licensing, visit the NMLS Consumer Access webpage at
http://nmlsconsumeraccess.org/.
1|Seller Guide
Contents
Chapter 1: Introduction ................................................................................................................................. 4
Hours of operation .................................................................................................................................... 4
Key Contacts.............................................................................................................................................. 4
Holiday Schedule ....................................................................................................................................... 4
Websites.................................................................................................................................................... 4
Chapter 2: Becoming a Deephaven Seller .................................................................................................... 5
Eligibility Requirements: ........................................................................................................................... 5
Application Process ................................................................................................................................... 5
Documentation Requirements ................................................................................................................. 6
Diligence Review ....................................................................................................................................... 6
Approval .................................................................................................................................................... 6
Chapter 3: Maintaining Eligibility ................................................................................................................. 7
Annual Review and Certification............................................................................................................... 7
Ongoing Monitoring .................................................................................................................................. 7
Chapter 4: Programs Offered ....................................................................................................................... 8
Near-Prime: 30 year fixed rate; 5/1 ARM; 7/1 ARM; I/O options available; no prepayment penalty ..... 8
Non-Prime: 30 year fixed rate; 5/1 ARM; 7/1 ARM; no prepayment penalty .......................................... 8
Investment Property: 30 year fixed; 3/1 ARM; 5/1 ARM; 7/1 ARM; I/O options available; 3 year
Prepayment Penalty.................................................................................................................................. 8
Chapter 5: Pricing ......................................................................................................................................... 9
Pricing Policy ............................................................................................................................................. 9
Price Adjusters .......................................................................................................................................... 9
Loan Program/Guideline Changes ............................................................................................................ 9
Chapter 6: Scenario Desk ............................................................................................................................ 10
Contact Information................................................................................................................................ 10
Chapter 7: Pre-close and Pre-Purchase Loan Review ................................................................................. 11
Pre-Close Review ..................................................................................................................................... 11
Pre-Purchase Review ................................................................................................................................. 11
Chapter 8: Loan Purchase Process............................................................................................................... 12
Pre-Purchase Review completion............................................................................................................ 12
Endorsed Note......................................................................................................................................... 12
Recorded Mortgage/Deed of Trust and Final Title ................................................................................. 12
Non-Delegated Underwriting Fee ........................................................................................................... 12
Loan Purchase Fees ................................................................................................................................. 13
MERS Registration................................................................................................................................... 13
Assignment and Conveyance .................................................................................................................. 13
Chapter 9: Post Purchase Requirements .................................................................................................... 14
MERS Transfer ......................................................................................................................................... 14
Servicing Transfer .................................................................................................................................... 14
Trailing Document Delivery ..................................................................................................................... 14
2|Seller Guide
Chapter 10: Shellpoint Mortgage Servicing Information ............................................................................. 15
Servicer Name: Shellpoint Mortgage Servicing, a division of New Penn Financial, LLC........................ 15
Wiring Instructions.................................................................................................................................. 15
Hazard Insurance Loss Payee Clause ...................................................................................................... 15
MERS ID ................................................................................................................................................... 15
Transfer Contact ..................................................................................................................................... 15
Exhibit A - CONTENTS OF MORTGAGE FILES ............................................................................................... 16
Deephaven Loan Review Stacking Order ................................................................................................ 16
3|Seller Guide
Chapter 1: Introduction
This Seller Guide (the Guide) provides the required information to become approved and remain
approved as a seller and to lock, deliver, and fund loans with Deephaven Mortgage LLC (Deephaven)
through our Flow program. We encourage you to become familiar with the information provided in
this Guide. However, it is important to note that the Guide is neither all inclusive, nor is it intended
to replace, modify or otherwise alter the terms of your Mortgage Loan Purchase Warranties and
Interim Servicing Agreement (MLPA) or any other applicable agreements.
Deephaven reserves the right at its sole discretion to amend or modify any of the policies set forth in
this Guide. Use of the information contained within this Guide is restricted to the intended Seller and
its employees.
Hours of operation
Deephavens hours of operation are 8:30 am EST to 6:00 pm EST.
Key Contacts
Deephaven Mortgage
Client Development
Mike Brenning 704-628-4038 mbrenning@deephavenmortgage.com
General
General Inquiries 704-628-4100
General Client Email client@deephavenmortgage.com
Rate Lock Desk ratelock@deephavenmortgage.com
Loan Scenarios scenario@deephavenmortgage.com
Submissions submission@deephavenmortgage.com
Post-Closing postclosing@deephavenmortgage.com
Processing processing@deephavemortgage.com
Holiday Schedule
Deephaven will observe the following holidays:
New Years Day Martin Luther King Day
Presidents Day Memorial Day
Independence Day Labor Day
Thanksgiving Day Day After Thanksgiving
Christmas Day
Websites
Deephaven Mortgage: https://deephavenmortgage.com
4|Seller Guide
Chapter 2: Becoming a Deephaven Seller
Eligibility Requirements:
Approved Sellers are expected, at the time of application and at all times thereafter to:
Be managed by individuals that possess the knowledge and experience necessary to
ensure that the Seller operates in a manner that is consistent with Deephavens strategic
goals and regulatory requirements.
Have at least two years of experience as an active originator of quality first-lien residential
mortgage loans. If the Seller has been in business for less than two years, the Seller may
be approved at Deephavens sole discretion.
Be duly organized, validly existing, properly licensed and authorized to conduct business in
each of the states in which it originates and sells residential mortgage loans.
Have a minimum net worth of at least $1.0 million.
Have management control systems in place to evaluate and monitor the overall quality of
its loan production, interim servicing and servicing (if applicable). The level of compliance
with all applicable state and federal laws and regulations is assessed on an ongoing basis
through testing and monitoring activity conducted by Deephaven.
Have a Fidelity Bond and Errors and Omissions Policy in effect in the amount of at least
$300,000 each.
Be in good standing with all applicable regulatory authorities and not subject to any
extraordinary supervision of its operations.
Maintain acceptable compliance policies and procedures and controls to ensure
compliance with all Consumer Laws and Regulations, including, but not limited to, Anti-
Money Laundering (AML), Bank Secrecy Act, USA Patriot Act, Anti-Steering, Appraiser
Independence, Fair Lending, Privacy and Consumer Information Protection, UDAAP, TILA,
RESPA, ECOA, HMDA, the Fair Housing Act, the FCRA, the SAFE Act, the GLBA, the TCPA,
and all other laws and regulations governing the origination of residential mortgage loans
under the authority of the Consumer Financial Protection Bureau (CFPB) and any other
applicable federal and state regulators.
Demonstrate acceptable use of third parties in connection with mortgage loan
originations, with appropriate controls to assess, monitor, and mitigate risks from its use
of such third parties, and to ensure that the same level of quality and controls exists no
matter where the third parties operations reside.
Have acceptable consumer complaint management, with appropriate tracking, trend
review, escalation and corrective action, as well as acceptable consumer complaint history
that does not reveal concerns.
Have sufficient independent warehouse lines of credit or other acceptable source of funds
to meet its needs.
Application Process
Sellers are invited to apply via Comergence (http://comergencecompliance.com/). The process
includes:
Seller company information
Contact information
Insurance and bond information
Disclosures
5|Seller Guide
Affiliate relationships
Investor reference contact and information
Warehouse information
Agency information
Historical loan production
Origination methods
Contract underwriting and processing information (if applicable)
Servicing information (if applicable)
Documentation Requirements
AML and Suspicious Activity Reporting (SAR) requirement and certification
acknowledgement
Prior two years audited financial statements and most recent unaudited quarterly financial
statement with year-to-date information (to validate current net worth)
Organization chart
Resumes of management and key personnel
Regulatory audits and/or management responses.
Quality Control (QC) policies and procedures along with the most recent month of QC
reports and management responses.
Third-party vendor oversight process
Appraisal Independence Requirements (AIR) along with Appraisal Management Policies
and Procedures.
Fair Lending and Anti-Money Laundering (AML) policies and procedures.
Explanation of any pending litigation that may have an impact on the Seller Counterpartys
ability to perform residential mortgage lending or servicing activities and/or maintain
minimum net worth requirements
List of prior 12 months repurchase and indemnification requests
List of current and/or pending repurchase and/or indemnification requests.
Wiring instructions
Deephaven Mortgage Power of Attorney
Deephaven Mortgage Master Loan Purchase Agreement
Corporate Resolution and Certification Regarding Corporate Authority
Diligence Review
A due diligence review is performed prior to approval once the Sellers application is completed and
the required documentation has been received and reviewed by Deephaven. The purpose of this
review is to gain an understanding of the Sellers loan origination process and ensure that the
leadership staffs knowledge of the company processes and procedures is in line with processes and
procedures identified in the application and documentation provided.
Approval
The decision to approve or deny a Seller is based on the eligibility criteria, business judgment and the
totality of the Sellers application. The prospective Seller will be notified of a decision and a Seller ID
will be issued if approved.
6|Seller Guide
Chapter 3: Maintaining Eligibility
Annual Review and Certification
An approved Seller is required to complete an annual recertification process within 30 days of the
anniversary of the initial approval date. The recertification process requires completion of a new Seller
application in Comergence. In addition to completing and submitting the application each year, Sellers
are required to provide the following documentation:
Prior year audited financial statements and most recent unaudited quarterly statement
with year-to-date information (to validate current net worth)
Updated organization chart (if applicable)
Regulatory audits
Ongoing Monitoring
Ongoing monitoring is performed via the following:
Sellers are monitored for compliance changes including: criminal, federal and civil checks,
liens, bankruptcy, judgments, foreclosures, FDIC enforcement actions and NMLS License
status.
Neighborhood Watch Report.
Loans are subject to third-party review for purchase eligibility. Sellers are required to
maintain appropriate levels of loan quality including quality review findings and pull through
ratios.
Loan performance is monitored on a continuing basis. The delinquency, Early Pay-Off (EPO)
and consumer complaint profile of the Sellers loan portfolio can impact the approval
standing.
The Seller will be monitored for ongoing satisfaction of contractual obligations, including but
not limited to, early payment default claims, early payoff claims, and any breaches of the
representations and warranties, which can impact the approval standing of the Seller.
7|Seller Guide
Chapter 4: Programs Offered
Near-Prime: 30 year fixed rate; 5/1 ARM; 7/1 ARM; I/O options available; no prepayment penalty
Provides liquidity to borrowers who have generally been good users of credit (limited consumer
delinquencies), but have been negatively impacted by the housing crisis outside of the most
recent 2 years.
Loan amounts up to $2,500,000 available for Owner Occupied and Second Homes.
Bank Statement Income Documentation options provided for self-employed borrowers.
Non-Prime: 30 year fixed rate; 5/1 ARM; 7/1 ARM; no prepayment penalty
Provides liquidity to borrowers who may have consumer credit challenges.
Loans amounts up to $2,000,000 for Owner Occupied and Second Homes.
Seasoning from a housing event starting at 1 day.
Bankruptcy seasoning starting at 12 months for Chapter 7.
Bank Statement Income Documentation options provided for self-employed borrowers.
Investment Property: 30 year fixed; 3/1 ARM; 5/1 ARM; 7/1 ARM; I/O options available; 3 year
Prepayment Penalty
Provides liquidity to investors who have been negatively impacted by the housing crisis.
Loan amounts up to $2,000,000
No income requirement option available
Seasoning from a housing event starting at 1 day.
Foreign nationals allowed under this program for second homes and investment
properties.
There is no maximum number of properties financed under this program.
The specific eligibility criteria and underwriting guidelines for each program are available on the
website.
8|Seller Guide
Chapter 5: Pricing
Pricing Policy
Pricing is provided every Monday Morning at 9:00 A.M. EST via email to all registered Seller parties.
Deephaven reserves the right to change pricing at any time, at its sole discretion, without prior notice.
Each rate sheet will be effective until it is replaced by a new rate sheet.
Price Adjusters
Loan Level Pricing Adjustments (LLPAs) are published as part of the pricing rate sheet. Significant
changes to LLPAs will be announced in the weekly rate sheet email.
Loan Program/Guideline Changes

Programs are subject to change or cancellation at any time. Deephaven will make every effort to
honor all locks made prior to any program change or cancellation. This Guide is subject to change at
any time. Deephaven will use its best efforts to provide prior notice to any program or guideline
changes.
9|Seller Guide
Chapter 6: Scenario Desk
Deephaven staffs a scenario desk to assist Sellers with questions about products. The desk can be
contacted during regular business hours to assist lenders with policy and other process questions
regarding our products. The scenario desk is not designed to be an underwriting or binding
commitment process but rather an interactive knowledgeable resource for our Sellers. Questions
range from What is the maximum LTV based upon this type of borrower? to What do I need to
provide to have this condo project approved to everything in between. We encourage our sellers to
use this service as it can be a great source of information as your employees move into this product
space.
Contact Information
Sellers can reach the scenario desk by either calling 704-628-4109 or emailing questions to
scenario@deephavenmortgage.com
10 | S e l l e r G u i d e
Chapter 7: Pre-close and Pre-Purchase Loan Review
In the process of purchasing loans, Deephaven Mortgage can perform a pre-close review and will
perform a pre-purchase review as outlined in the chart below. Loans must be submitted to our seller
portal at www.deephavenmortgage.com in order for us to perform the pre-close review.
Pre-Close Review
Deephaven will review the supplied credit and collateral file and advise the Seller on any missing
documentation or necessary modifications to the terms of the loan so that the loan will be purchase
eligible.
Pre-Purchase Review
All loans are subject to a third party pre-purchase review. The review will be a thorough evaluation
of credit, collateral and compliance. All material conditions will need to be cleared prior to purchase
by Deephaven Mortgage. For each loan we will inventory, review, and capture data from the loan
file images provided by the Seller. We will verify whether the documents provided in the loan file
have signatures, dates, and addresses as appropriate; and that these documents are reasonably
complete.
Chapter 8: Loan Purchase Process
Deephaven requires that the Seller complete the following four steps prior to funding:
Pre-Purchase Review completed with all findings cleared

Original Endorsed Note
Loan registered in MERS by Seller
Assignment and Conveyance, A&C, signed and returned by Seller
Pre-Purchase Review completion
Clear any findings identified in the Pre-Purchase Review. Contact

processing@deephavenmortgage.com with any questions.
Endorsed Note
The original note endorsed to Deephaven Mortgage LLC must be received prior to purchase:
Shipping address for endorsed Original Note
Deutsche Bank National Trust Company

Attn: Deephaven Mortgage Team
Institutional Cash and Securities Services (ICSS)
1761 East St. Andrews Place
Santa Ana, CA 92705-4934
Seller should email postclosing@deephavenmortgage.com with the tracking numbers for the note.
Recorded Mortgage/Deed of Trust and Final Title

Shipping address for Recorded Mortgage/Deed of Trust and Final Title
Deephaven Mortgage LLC

Post-Closing Department
3530 Toringdon Way Suite 200
Charlotte, NC 28277
Seller should email postclosing@deephavenmortgage.com with the tracking numbers for the
recorded mortgage and final title.
Non-Delegated Underwriting Fee
Deephaven charges the following fees for underwriting non-delegated loans, (this fee will be charged
regardless of whether Deephaven purchases the loan or not):
Non-delegated Underwriting Fee - $395
Loan Purchase Fees
Deephaven charges the following fees on all flow loans purchased:
Delivery Fee - $495
MERS Registration
The Seller must properly register the loan on the MERS system at least 24 hours prior to Deephavens
purchase and should provide a hard copy of the mortgage loan registration screen in the closed loan
package.
Assignment and Conveyance
Deephaven will provide the Seller with an Assignment and Conveyance (A&C) upon completion of
the three previous steps within 24 hours. Deephaven will generally fund loan purchases within two
business days of receiving the signed A&C back from the seller.
The final proceeds on the A&C will be the sum of:
Scheduled Balance of the loan multiplied by the agreed upon Purchase Price (positive)
Per Diem Interest (positive or negative)
Escrows collected at closing (negative)
$395 Non-delegated Underwriting Fee (negative) [if applicable]
$495 Delivery Fee (negative)
The A&C will also detail:
The date of the servicing transfer

The date the premium recapture expires
The wire instructions for proceeds of the loan sale to be delivered to
Chapter 9: Post Purchase Requirements
MERS Transfer
Servicing Transfer
Collateral file delivery (Reverse Bailee Only)
Trailing Documents
MERS Transfer
The transfer to Deephaven must be registered on the MERS system within seven (7) days of
Deephavens purchase of the loan.
Deephaven (MERS ID #1011942) must show as both Investor and Servicer
Servicing Transfer
If Shellpoint is the servicer of record at closing, no transfer is required.
If the Seller is the servicer of record at closing, all loans must be transferred to Shellpoint according
to the following schedule as defined below and also shown on the A&C:
Loan purchased on or before the 12th of the current month 1st of the next month
Loan purchased after the 12th of the current month 1st of the month following next month
Trailing Document Delivery
Deephaven Mortgage LLC

3530 Toringdon Way Suite 200
Charlotte, NC 28277
Attn: Post Closing Department
Chapter 10: Shellpoint Mortgage Servicing Information
Servicer Name: Shellpoint Mortgage Servicing, a division of New Penn Financial, LLC
Address for Borrower Payments: Shellpoint Mortgage

PO BOX 740039
Cincinnati, OH 45274-0039
Overnight for Borrower Payment: Shellpoint Mortgage Servicing

Attn: Payment Processing
55 Beattie Place, Suite 110
Greenville, SC 29601
Address for Correspondence: Shellpoint Mortgage Servicing

P.O. Box 10826
Greenville, SC 29603-0826
Address for Payoffs: Shellpoint Mortgage Servicing

Attn: Cash Control Payoffs 55 Beattie Place
Suite 110 MS#525
SMS Customer Service #: 1-800-365-7107

Monday - Friday: 8:00 a.m. to 10:00 p.m. (EST)
Saturday: 8:00 a.m. to 3:00 p.m. (EST)
Wiring Instructions
Name on Account: Mortgage CDA
Bank: Wells Fargo Bank, NA Account #: 2020050813199
AB A #: 121000248
Ref: Your company name, Loan number, Borrower name
Attn: Cash Control
Hazard Insurance Loss Payee Clause

Shellpoint Mortgage Servicing ISAOA ATIMA
PO Box 2463
MERS ID
#1007544
Transfer Contact
Joey Prince, Director of Loan Boarding Ben Boyer, Director of Portfolio Management
Joseph.Prince@shellpointmtg.com Benjamin.Boyer@shellpointmtg.com
864-248-8646 864-248-8925
smsloanboarding@shellpointmtg.com portfoliomanagement@shellpointmtg. com
Exhibit A - CONTENTS OF MORTGAGE FILES
Deephaven Loan Review Stacking Order
APPLICATION ASSETS
1008 Underwriting and Transmittal Asset statements
Summary Retirement or investment statements
1003 Initial and final Large deposit verification
Conditional Loan Approval Gift documentation
Deephaven Alt Programs Analysis Form Earnest money verification
Deephaven Benefit to Borrower Form Miscellaneous asset documentation
Non-del submission Form (if Applicable)
PROPERTY
CREDIT Appraisal
Credit report Appraisal review product
VOM/VOM and/or canceled rent checks Purchase agreements and addendums
Credit explanation letters HOA cert and condo documentation
Complete bankruptcy papers Preliminary title policy
Divorce decree or separation Tax cert
agreement Flood cert
Miscellaneous credit documentation Hazard and/or flood insurance
Fraud Guard / Loan Safe Report
INCOME Mavent / Compliance Ease Report
Income calculation worksheets MERS
Paystubs (most recent first) OR Disclosures
24 months of bank statements
W-2s or 1099s
Written Verifications of Employment POST CLOSING
Complete personal tax returns Signed Closing Package
Complete business tax returns Verbal VOE within 10 days of closing
P&L statements Gap credit report within 10 days of
IRS transcripts closing
Award letters
Lease agreements
Verification of PITIA for other REO
Miscellaneous income documentation

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Deephaven Seller Guide (August 2017)

Deephavens hours of operation are 8:30 am EST to 6:00 pm EST.

Loan Program/Guideline Changes

Pre-Purchase Review completed with all findings cleared

Pre-Purchase Review completion

Clear any findings identified in the Pre-Purchase Review. Contact

Shipping address for endorsed Original Note

Deutsche Bank National Trust Company

Recorded Mortgage/Deed of Trust and Final Title

Deephaven Mortgage LLC

Non-Delegated Underwriting Fee

Deephaven charges the following fees on all flow loans purchased:

Delivery Fee - $495

Assignment and Conveyance

The final proceeds on the A&C will be the sum of:

The A&C will also detail:

The date of the servicing transfer

Deephaven (MERS ID #1011942) must show as both Investor and Servicer

If Shellpoint is the servicer of record at closing, no transfer is required.

Trailing Document Delivery

Deephaven Mortgage LLC

Address for Borrower Payments: Shellpoint Mortgage

Overnight for Borrower Payment: Shellpoint Mortgage Servicing

Address for Correspondence: Shellpoint Mortgage Servicing

Address for Payoffs: Shellpoint Mortgage Servicing

SMS Customer Service #: 1-800-365-7107

Hazard Insurance Loss Payee Clause

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