First Cal: A Note from First Cal President Chris Hart

Dear Broker Partner,

I’d like to thank you for the opportunity to fulfill your lender requirements over the last few years. As our industry evolves, our mutual support and two way communication has benefitted us both. Since April 5th, 2010, the US Mortgage Market has improved by more than 5 points. This has bought both of us more business and has resulted in First Cal having a backlog of loans to Underwrite. I want to quickly share with you how we are addressing this backlog and instill confidence in you to continue to send your loans to First Cal - without hesitation.

First off, we have maintained 24-48hrs on all Purchase Transactions and on Conditions. We will not let these levels slip. We currently have 200 +/- Refinance Loans to Underwrite and our turn times have expanded to a point that requires action. Some of these loans are Locked and some of these loans are Un-Locked. While our turn times are not the worst amongst our competitors, they are not good enough for us. Over the next 7 business days First Cal, through various strategies, will be completely through this backlog. At the same time, we have additional Underwriters starting and we will be deploying new technology. Both of which will dramatically increase our Operational Capacity to fulfill the requirements of the loans that you currently have in your pipeline. So, feel confident to choose First Cal as your lender. Additionally, this week we have further increased our warehouse capacity to ensure we meet your closing expectations.

Lastly, over the next couple of months you will see First Cal selectively reduce the number of Brokers we do business with on a daily basis. The reason for this is that we only want to focus on the “right” relationships. There was a period of time where we needed any relationship, but that is no longer the case. Our approach will be to focus our time and our attention on our Top Two Tiers of our Broker Partners. Every month we produce a Scorecard that tracks Lock Pull-Through, Submission to Approval Percentage and Quality of Package being received, among other metrics. I encourage you to review your Scorecard with your First Cal AE - it is our goal to provide you with insight into your performance that will benefit you with all of your Lender Relationships. So, if you hear about us cutting off Brokers you will understand why and we encourage you to reach out to us with any question you may have.

In conclusion, know that we recognize we are behind in Refinances. Know that we are aggressively addressing our backlog. Know that we have dramatically increased our operational capacity. Know that we will continue to price competitively. Know that First Cal wants your business and wants to be your Lender of Choice. So, confidently submit to your loans to First Cal and know that we will meet or exceed your expectations.

Sincerely,