2. Best Efforts:
SBC agrees to use reasonable commercial efforts to assist in securing the Loan; however, SBC does not guarantee the Loan can or will be obtained. Client agrees that SBC will not be liable to Client for any losses or damages whatsoever in the event a Loan is not secured.
3. Disclosure of Service Fees and Points, Travel and Collections Fees:
No up-front fees are required. Subsequent to the Client completing a Pre-Loan Application for the purpose of obtaining pre-approval for a Loan from a funding source through SBC, Client agrees that a one time full Service Fee (as indicated in Schedule 1 herein below) is earned and payable on the HUD at closing
This service fee combines and may include the funding source's application fee, credit check fee, property value report fee, background check fee, merchant\credit card processing fees and SBC's administrative costs associated with submitting the application and documentation to the funding source on behalf of Client for the purpose of obtaining a loan for Client.
Travel costs: In the unlikely event that it becomes necessary for SBC or SBC's agent to travel to Client's location or subject property for any reason: The following fees shall be payable by the Client to SBC:
By car; 65 cents per mile one way, plus tolls, executive accommodation, tax, hospitality fees and incidentals, plus round trip airfare and car rental or town car or taxi or ride share fares if by air; plus round trip rail fare if by rail.
Collections costs: If collection becomes necessary, the actual cost of collections, attorney's fees, and court costs, in addition to any outstanding amounts still owed to SBC. Dishonored check fee: $39. We reserve the right to change these programs, rates and fees at anytime with or without notice and for any reason.
A new Client who has not already submitted either a Rush Order or other payment to us within the last thirty days, may be required to remit a one dollar ($1) fully refundable security deposit or credit card authorization before submission of Client's loan scenario to a lender. Security deposit refund requests must be in writing and may be made by contacting SBC via SBC's company email or business mailing address. Client may also be required to submit Client's last three bank account statements to SBC for verification of Client's liquid assets.
If Client secures a Loan as a direct or indirect result of SBC’s efforts, Client also agrees to pay to SBC Points and a Service Fee as indicated in Schedule 1 herein below as a percentage of the Loan amount (the “Points”). The Points shall be earned upon issuance of a commitment with terms and conditions acknowledged verbally or in writing to be acceptable to the Client. The parties agree that the Points shall be due and payable on the HUD Settlement Statement at the Loan closing, and any outstanding unpaid amount of the fees earned shall be paid in full within thirty (30) days after the closing of the Loan, and a ten percent (10%) interest rate per annum shall accrue to the unpaid balance thereafter. SBC shall also be entitled to recover reasonable attorney’s fees and costs necessary to collect the fees from the Client for non-payment. This Section 3 shall survive the termination of this agreement.
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Schedule 1: Service Fees and Origination Points:
(Please note that Points and the Service Fee are payable on the HUD at the loan closing. There is no upfront fee required.)
RESIDENTIAL LOANS (Single Family Home or 1-4 units/apartments.):
Mini Loans: $50,000 up to 100,000 = $175 Service Fee & 2.85 Points
Loans: $100,000 up to FHA Cap = $275 Service Fee & 2.75 Points
(Including residential construction and land acquisition loans.)
Jumbo Loans & FHA Non-Conforming Loans:
FHA Cap up to $500,000 = $275 Service Fee & 2.75 Points
Above $500,000 = Shall be the same as Commercial Loans below.
Commercial Loans (5+ units, apartments, condos, mixed use, storage, etc.):
Loans $100,000 up to $500,000 = $275 Service Fee & 2.75 Points
Above $500,000 up to $1 million = $475 Service Fee & 2.50 Points.
Above $1 million up to $3 million = $875 Service Fee & 2.25 Points.
Above $3 million up to $5 million = $1675 Service Fee & 2.00 Points.
Above $5 million up to $10 million = $3275 Service Fee & 1.50 Points.
Jumbo Commercial Loans:
Above $10 million up to $20 million = $6475 Service Fee & 1.00 Point.
Above $20 million up to $40 million = $12,875 Service Fee & 0.75 Points.
Above $40 million up to $80 million = $25,675 Service Fee & 0.50 Points.
Above $80 million up to $100 million = $51,275 Service Fee & 0.25 Points.
Loans $100 million and above = $102,475 Service Fee & 0.125 Points.
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4. Term
SBC and Client agree that this Agreement and authority of SBC by Client shall continue six (6) months from Effective Date, thereafter this Agreement shall continue until terminated in writing by either party.
5. No Circumvention
For a period of six (6) months following the termination of this Agreement, Client shall not circumvent SBC by directing, approaching, dealing, contacting or entering into a transaction with any funding source introduced to Client by SBC during the term of this Agreement.
If Client does circumvent SBC, SBC shall be entitled to the Points described in Section 3, notwithstanding any other payments made by Client to other loan services providers concerning the subject circumvention. SBC shall also be entitled to recover reasonable attorney’s fees and costs necessary to collect the Points from the Client for non-payment. SBC shall also be entitled to receive twenty-four percent (24%) interest per annum on any unpaid balance Client owes to SBC for more than thirty (30) days. This Section 5 shall survive the termination of this Agreement.
6. Relationship
The parties agree that the relationship of SBC and Client shall be that of an independent contractor. This Agreement is neither intended to, nor will it be construed as, an agreement to create a joint venture, partnership, or other form of business association between the parties. All parties recognize that this Agreement is non-exclusive with respect to SBC.
If Client is a loan broker, or becomes a loan broker or acts as a loan broker during the period that this agreement is in force, and for a period of one (1) year following the termination of this agreement, Client agrees to exclusively broker loans through SBC and thereby receive from SBC a referral/broker fee that is reasonable and acceptable to SBC. If the Client circumvents SBC and brokers a loan directly or through a third party with a lender introduced to the Client by SBC during the period that this agreement is in force, then SBC shall be entitled to collect fifty (50) percent of the gross broker fee that the Client has collected or will collect from the lender for the brokered loan, and if the Client does not deliver SBC's share of the said fee within thirty (30) days of the loan closing, then SBC is entitled to collect ten (10) percent interest on the unpaid amount annually. SBC shall also be entitled to receive collection costs and reasonable attorney fees and court costs and fees from the Client should SBC prevail in a court action brought against the Client to collect the said share of the fees SBC is entitled to collect from the Client.
7. Miscellaneous
Each party specifically acknowledges and agrees that this Agreement and its interpretation and enforcement are governed by the laws of the State of Florida.
Furthermore, each party irrevocably
(i) submits to the jurisdiction of any court of the State of Florida located in Volusia County for the purpose of any suit, action or other proceeding arising out of this Agreement or any of the agreements or transactions contemplated hereby (each, a “Proceeding”),
(ii) agrees that all claims in respect of any Proceeding may be heard and determined in any such court,
(iii) waives, to the fullest extent permitted by law, any immunity from jurisdiction of any such court or from any legal process therein,
(iv) agrees not to commence any Proceeding other than in such courts and
(v) waives, to the fullest extent permitted by law, any claim that such Proceeding is brought in an inconvenient forum. The substantially prevailing party will be entitled to recover its attorneys’ fees from the substantially non-prevailing parties incurred in connection with the prevailing party’s efforts to enforce this Agreement, regardless of whether any action or proceeding is commenced. Any purported assignment without the other party’s prior written consent will be void ab initio.
8. Entire Understanding
This Agreement sets forth the entire understanding of the Parties with respect to the subject matter of this Agreement and supersedes all prior agreements and understandings between the parties regarding the subject matter of this Agreement. This Agreement may not be amended except in writing and signed by each party.
9. Severability
If for any reason any provision of this Agreement is determined by a tribunal of competent jurisdiction to be legally invalid or unenforceable, the validity of the remainder of the Agreement will not be affected and such provision will be deemed modified to the minimum extent necessary to make such provision consistent with applicable law and, in its modified form, such provision will then be enforceable and enforced.
10. Agreement Binding Upon Successors and Assigns
This Agreement is binding upon the parties and will bind their executors, personal representatives, legatees, heirs, successors and assigns.
11. No Waiver
No waiver by any party of any right or default under this Agreement will be effective unless in writing and signed by the waiving party. No such waiver will be deemed to extend to any prior or subsequent right or default or affect in any way any rights arising by virtue of any prior or subsequent such occurrence.
12. Counterparts; Facsimile or Electronic Signatures
This Agreement may be executed in counterparts and via facsimile or PDF electronic transmission or web form email transmission, and each such counterpart will be deemed to be an original instrument. All such counterparts together will constitute one and the same Agreement.
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