2. 2 3
Over 90% of Shelter’s
transactions are purchase.
ADVANTAGE
THE
SHELTER
3 THE SHELTER ADVANTAGE
4 ABOUT SHELTER
5 LEADING BY EXAMPLE
6 SHELTER MORTGAGE PARTNERSHIPS
8 PARTNERSHIP BEST PRACTICES
9 SUPERIOR SUPPORT
10 OPERATIONAL EXCELLENCE
11 COMPANY HIGHLIGHTS
12 COMPLIANCE AND LEGAL SUPPORT
12 TIMELINE FOR FORMING A JOINT VENTURE
16 NEXT STEPS TO A SUCCESSFUL PARTNERSHIP
17 PEOPLE ARE TALKING ABOUT SHELTER
18 FOR ONCE, IT’S ALL ABOUT YOU
Shelter is the most experienced partner in the business and is owned by
one of the most prestigious, significant and well capitalized firms in the
industry. We understand how and why JV businesses are uniquely different
from the traditional retail mortgage business. This is why Shelter Mortgage
has been a trusted JV partner for 30 years. We have a proven track
record of approaching this business with a proven and genuine attitude of
partnership.
We understand the importance of this partnership to your business.
We understand your interest in considering a JV model. We have the
efficiencies, scale, flexible business models that can be custom tailored to
meet your unique business needs and objectives. In essence, we are experts
working with experts.
Purchase Focused and Purchase Driven
Many other lenders are learning the nuances of the purchase process.
Fortunately, we are already experts in that space and have been so for over
30 years.
Join the Shelter Family and You’re a Member for Life
We pride ourselves on creating a culture where all of our employees feel
like they are part of the shelter family and ensuring that every employee is
empowered with the right support and tools to not only be successful but
become a leader within their respective market. Despite our recent growth the
average Shelter Employee has been in the Shelter family for almost 6 years.
Employees with Shelter Over 5 Years:
PURCHASE
90%
REFI
10%
NUMBER OF EMPLOYEES
YEARS
5
5
10
15+
10 15 20 25 30 35
61 Employees have been part of the Shelter family for over 10 years.
FOR YOU
HERE’S
WHAT WE HAVE
IN STORE “I enjoy working for Shelter
because they keep abreast
on policy, laws, guidelines,
changes etc. You always
know what is going on and
always have the updated
tools to function in your
position. What I think sets
Shelter apart from other
lenders is the commitment
to the company and
the close “family” like
relationship each employee
has with one another.
Everyone is very close and
works so well together. It
really helps to accomplish
our one common goal of
fulfilling our borrowers
American dream especially
at our peak times.”
Bridget Bohte
Pricing Analyst
Lock Desk since 2003
3. 4 5
Jerry Schiano, Chief Executive Officer, New Penn Financial
Mr. Schiano was the founder (1999) and CEO of Wilmington Finance Inc., a top-15 originator of
Non-Agency residential loans with over 2000 employees. Originations at Wilmington Finance rose
to $15B. Mr. Schiano sold Wilmington Finance to American General Finance, a subsidiary of AIG, in
2002 and continued to manage the Company through April 2006. Upon the expiration of his non-
compete, Mr. Schiano formed New Penn in March of 2008 and is currently its CEO. He is also a
member of Shellpoint Management Holdings LLC. Prior to Wilmington Finance, Mr. Schiano was Sr.
Vice President of ContiMortgage Corporation where he was responsible for marketing, Correspondent
sale force management, and Retail Call Center marketing. Mr. Schiano is a Magna Cum Laude
graduate of C.W. Post Long Island University with a B.S. in Marketing and Economics.
Amy Brandt Schumacher, President, Mortgage Originations & Corporate Technology
Ms. Schumacher oversees all loan origination activity for the organization’s three business channels.
She also leads New Penn’s Information Technology group, and drives focus on aligning the needs
of the business units, customers, and clients with New Penn’s internal systems and customer
interfaces. Prior to joining New Penn Financial, Ms. Schumacher served as COO for Prospect
Mortgage and formed Vantium Capital, Inc. and Vantium Capital Management with Apollo L.P.,
a leading private equity firm. Ms. Schumacher holds a Bachelor’s degree in Political Science and
Government from University of Southern California, and earned a Doctor of Law (J.D.) from Arizona
State University.
Brian Mitchell, Executive Vice President, Retail Lending
Brian oversees all of New Penn’s Retail business channel originations, including its Preferred
Distributed Retail division and its Shelter Joint Venture Retail team. The addition of this EVP
role will enable more unified coordination between the two groups in terms of recruiting, hiring,
onboarding, training, marketing, operations, and overall channel growth. Prior to joining New Penn
Financial, Mitchell held senior management positions with financial services companies including
Pacific Union Financial, Envoy Mortgage, and National City Mortgage (PNC Bank), bringing with
him over 20 years of success in the mortgage industry. Brian is based out of Dallas, TX.
Corey Caster, Senior Vice President, Shelter Mortgage Company
Corey Caster heads Shelter Mortgage Company for the New Penn Financial family of companies.
Previously, Mr. Caster was the SVP of National Production for Premier Nationwide Lending,
a $2 Billion annual volume Mortgage Banker. He has been in key production and operational
management positions throughout his career, including Legacy Mortgage Services which he founded.
Mr. Caster has a Marketing degree from the Boler School of Business at John Carroll University.
Randy Vanden Houten, CFO, Shelter Mortgage Company
Randy Vanden Houten is the CFO of New Penn’s Shelter Mortgage Company Retail division. Prior to
Shelter, Mr. Vanden Houten held various positions within Guaranty Bank over the course of 18 years
(Vice President, Controller, Executive Vice President, Chief Financial Officer). He holds a Bachelor of
Business – Accounting from St. Norbert College in DePere, Wisconsin.
Our executive management team has been
hand selected because of their own success,
their desire to bring out the best in others, and
the understanding that the best of companies
are built by outstanding employees.EXAMPLEBY
ABOUT LEADING
SHELTER
Strength and Longevity
Like an oak tree planted over 85 years ago, we have stood
through many seasons and seen many storms. Because our
roots are deep and our base is strong, we will continue to thrive
through many more.
At Shelter Mortgage, we have the solid backing of our parent
company, an over 85 year old federally chartered bank on
its fourth generation of family leadership. Plus, our loans are
funded primarily from the deposits of our hundreds of thousands
of bank customers. This added financial stability means you can
count on our loans being ready and funded at closing.
We helped pioneer the concept of mortgage partnerships•
back in 1984
We earn your business by taking pride in the profitability•
and growth of our partnerships
We have the right mortgage for your customers through•
our hundreds of competitively priced loan programs
Hard Work. Integrity. Superior Service. Respect.
These are the core values of Shelter Mortgage. It’s how we do
business with our customers and how we work with each other.
We may resemble other mortgage lenders on the outside, but
inside is a rich history of innovation, entrepreneurial spirit, and
vision that laid the foundation for our success.
Exceeding the expectations of our customers can only be
achieved when we apply the principles in our mission statement
internally at our organization. By treating employees with the
same service, processes and communication methods, we expect
confidence will exude to your customers.
Exceed the expectations of our residential
mortgage borrowers and business partners
through superior service, simple processes,
and effective communications.
—Our Mission
4. 6 7
There are many reasons our business
continues to succeed, but the single
most important reason is the quality
of our long-standing partnerships.MORTGAGE
SHELTER
PARTNERSHIPS
Shelter Mortgage exclusively focuses on supporting•
realtor, builder, relocation company, and other
partnership lending businesses
We have operated RESPA-compliant lending•
partnerships for 30 years
In September 2014 we were aquired by New Penn•
Financial and currently manage 25+ partner relationships
Financial services provided for JV Partners•
Our Partnership Lending Platform Flexibility to Customize Our Partner Brands
“Our goal was to design a company that genuinely focused
on the customer - where through superior service, simple
processes, and effective communication, we would deliver
a best-in-class experience to all.”
Shelter Strengths
30+ years of experience operating RESPA compliant•
affiliated business relationships
Management team with years of experience in the joint•
venture space
Geographic and partner diversity:•
- Realtor
- Builder
- Relocation
New Penn Strengths
Broad product offering (Agency, Non-Agency, and•
Proprietary Products)
Fully integrated mortgage servicing offering to control the•
borrower experience
Strong capital base and mortgage industry experience•
Technology platform and corporate support resources of•
a $7 billion originator (Risk, Legal/Compliance, Capital
Markets, Marketing, HR, Finance, etc.)
The Shelter-New Penn Partnership: A Powerful Combination For Partnership Lending
New Penn Financial, with the help of Shellpoint Partners, has
established a vertically-integrated residential mortgage banking
platform with diversified revenue sources and capabilities that
are the perfect support structure to help enable and grow our
Shelter presence.
Self-sufficient lending platform including loan originations•
through servicing
Capital market expertise•
Financial strength•
Retaining servicing on 90% of originated loans (currently•
servicing a portfolio of $26 billion)
Fully invested in the mortgage finance business•
Our Outstanding Alliance Of Businesses
Purchase Focused
Appraisal Mgmt. Lending
Supporting Entities
Parent Company
Building A Solid Foundation for Innovation
MortgageCompany
Title BrokerageTitle Brokerage
Mortgage Servicing
PARTNERSHIP
PURPOSEWITH A
5. 8 9
Because of our proven
experience in supporting
successful Joint Ventures,
we have determined best
practices methodology to
increase productivity and
efficiency, and increase
revenue for our partners.
We seek to empower your success and the success of your team by
employing the absolute best practices to ensure this relationship is
beneficial for all. We do this by remaining educated and communicative in
the following ways:
Annual Venture Manager Meeting
Each manager shares information regarding their partnership and•
what is helping them to increase profitability
Topics shared include product knowledge, marketing efforts,•
partnership successes, and improved efficiencies
Managers discuss the future of Shelter Mortgage and how they can•
improve profits for Shelter and their partners
Strategies are shared and developed on how to increase capture•
rates in partnerships
Monthly Manager Calls
Each month, Shelter Branch Managers and Corporate work together to
update each other on what is happening in each partnership. The branches
needs are addressed and their successes celebrated.
Marketing Toolbox
The Marketing Toolbox provides one source for all loan officers’ marketing
needs. When customized pieces are requested from loan officers, they are
posted to the Marketing Toolbox for all to use.
RESPRO Conference
Twice a year, Shelter Mortgage attends the RESPRO®
(Real Estate Services
Providers Council) Conference to learn about improved practices that
contribute to successful Joint Ventures. At this conference, we:
Aquire new regulatory compliance strategies so we are always•
compliant with our Joint Ventures
Attend “Best Practices” Sessions, Regulatory Workshops, and Idea-•
Sharing Roundtables
Join and learn from executives from the country’s leading real estate•
brokers, home builders, mortgage lenders, and title/settlement
service companies
PRACTICESBEST
PARTNERSHIP
Marketing Materials with
YOUR Logo:
Brag-Worthy Marketing
Automated Social Media Engagement
HR: Robust Yet Easy On-Boarding
Our Human Resources department takes the lead to make
sure all employees are set up with the basics, trained, and
comfortable with our systems and technology.
This includes:
Complete set up of equipment, log in’s, and•
business cards
An onboarding portal and training center•
Training on all tools offered•
Consistent career development•
Maintaining an ongoing relationship with the training•
team, marketing, and manager
Marketing: Show Off and Be Heard
Our dedicated marketing department has what you’ll need to
show off our extensive product offering and added benefits to
your pipeline.
Our partners enjoy:
A professionally designed website•
Vast collateral library with co-branding capabilities•
Educational Materials for Referral Partners•
CRM Activation•
Automated Pre-Qual & Post Closing Campaign•
Automated Social Media Engagement via our state-of-•
the-art social media CRM
SUPPORT
SUPERIOR
Shelter Mortgage Company has
a tried and true comprehensive
onboarding transition process that
ensures you hit the ground running
so there is no gap in production and
no growing pains.
Educational Materials for
Referral Partners & Borrowers
Hundreds of Product Specific, Educational, and
Call-to-Action Flyers Available Instantly
Professionally
Designed Websites
Social media posts are automatically
generated FOR our LOs and posted on
their Twitter, LinkedIn, and Facebook
feeds. This way they can focus on what
they do best while we handle important
social media marketing for them.
6. 10 11
Partnership
Operations is integral to the way we our loan origination and fulfillment
team works efficiently to close loans on time. Defined processes for
underwriting and processing leaders help them manage their teams’
pipelines, and we make sure that no person carries more than 20 loans.
At Shelter, we are aligned—everybody involved in the origination process is
dedicated to making the transaction a pleasant experience for the borrower,
without the worry and complexity that has occurred in the past.
Local and Accessible
Our processors are seated right next to the loan officers in our retail offices.
We believe this builds unity and support to make sure borrowers are served
in the markets where they are buying their home.
Processor’s Role:
Make welcome calls•
Collect documentation from the borrowers and/or loan officers•
Communicate with the underwriters to troubleshoot conditions•
Tough deals are never reason for concern with our underwriters who are
always a phone call away (and in some cases, located in market as well).
Underwriters work with loan officers on scenarios and solutions for tough
deals. Everybody works together to get the borrower to the closing table, on
time, every time.
Discover Leadership that Cares About Your Pipeline
If you are looking for a management team that genuinely cares about your
pipeline of loans as much as you do, welcome to Shelter Mortgage. Every
level of management is accessible and ready to help you problem solve.
A dedicated pipeline manager per region monitors the pipeline daily to
ensure that all loans are moving along as they should and address any
issues as they arise. Their job is to remove all obstacles so your loans are
ready for closing 3 days prior to closing. Measuring performance each
month, and setting goals to increase speed and efficiency helps us exceed
expectation with each subsequent loan.
We are aligned—everybody
involved in the origination
process is dedicated to making
the transaction a pleasant
experience for the borrower,
without the worry and complexity
that has occurred in the past.
OPERATIONAL
EXCELLENCE
Processors
working closely
with borrowers
Underwriters
who are
focused on
solutions
Leadership
who cares about
your success
HAPPY
BORROWER
COMPANY
HIGHLIGHTS
We close loans that others can’t. Our expansive
product line includes agency and government
programs plus proprietary non-agency products.
Brag-Worthy Success
Top 20 mortgage lender in the•
United States
“A” rating with the Better Business•
Bureau
$32.9 Billion servicing portfolio•
Direct seller/servicer to Fannie Mae,•
Freddie Mac, and Ginnie Mae
New Penn Financial originates•
conventional, government, and
non-agency, portfolio, and state
bond programs
Shellpoint Partners provides capital•
markets capabilities to privately place mortgage-back
securties. We can issue private-label, residential mortgage
back securities with our SEC approved registration filing.
Over 1,900 employees and growing•
New Penn, via Shellpoint Mortgage Servicing, retains over•
80% of the mortgage servicing rights on loans we originate
Our Impressive Line of Products
Non-Agency:
Suite of high balance jumbo products including 5/1, 7/1,•
and 10/1 ARMs
Non-QM:
Home Key: For borrowers who have experienced a credit•
event, but are otherwise creditworthy.
Home Buyer Power: Pristine creditworthy borrowers who•
do not fit the existing underwriting criteria for government-
backed and agency mortgages.
Foreign National: Includes 2nd Home and Investment•
properties.
7. 12 13
SUPPORTLEGAL
COMPLIANCE AND
JV RESPA Requirements
12 USC §2607(c)(4) provides that nothing in Section 8(a) of RESPA shall
be construed as prohibiting affiliated business arrangements, so long as
three requirements are met:
The referring party gives an ABA disclosure at time of referral•
The referring party does not require the use of a particular settlement•
service provider (in this case, the partner could not require the use of
the JV as lender)
The only thing of value received by the JV parents is the return on•
respective ownership interests
HUD 10 Factor Balancing Test
This test assesses whether, notwithstanding compliance with the 3
requirements, a JV is in violation of RESPA.
Does JV have sufficient initial capital and net worth, typical in the•
industry, to conduct business as a mortgage lender?
Is the JV staffed with sufficient employees to perform the activities of•
a mortgage lender?
Does the JV manage its own business affairs, or does it rely on one•
of its creators/parents to manage it for the parent making referrals?
Does the JV have an office separate from that of one of its parent•
providers? If not, has it entered into an arm’s length lease for market
based rent payments?
Is the JV providing substantial services, i.e., the essential functions•
of a mortgage lender, for which it receives a fee? Does it incur the
risks and rewards of comparable enterprises?
Does the JV perform all substantial services itself, or does it contract•
out part of the work?
If the JV contracts out essential functions, does it obtain services•
from an independent 3rd party, or from a parent company?
If the JV contracts out work, is it paying for those services in•
accordance with market rates?
Does the JV compete in the marketplace for business, or is it•
obtaining business exclusively from one of its parent companies?
Does the JV lender sells loans exclusively to one of its parent•
companies?
JV Legal Framework
We endeavor to design JVs so they adhere strictly to the RESPA
requirements and can withstand the HUD 10 factor balancing test.
The acquisition of Shelter
maintained Shelter’s legal
and operating structure which
provides significant options
with respect to onboarding
new relationships.
STRUCTURE
LEGAL
Legal Agreement Definitions
Joint Ventures (regardless of the form) are governed by a comprehensive set of legal and operating agreements to ensure
proper governance, entity independence, and compliance.
JV Operating Agreement
Main document that governs the overall structure of
the venture including governance, capital contribution
requirements, distribution policies, management and
employee relationships, etc. Key governance structure is
an operating committee comprised of representative of the
Members of the venture.
Warehouse Agreements
Warehouse or repo facilities used to fund originations prior to
loan disposition. As an independent originator, the JV entity
must have recourse as a separate Obligor or Seller under a
warehouse agreement.
Correspondent Loan Sale Agreements
Flow purchase / sale agreement between JV and take-out
investor(s). As an independent originator, the JV entity must
make reps/warranties with respect to its loan production and
have recourse for unsaleable loans and/or losses resulting
from repurchases of defective loans.
Services Agreements
Agreements governing the provision of outsourced services
(e.g., processing, underwriting, closing, secondary, etc.) to
the JV. Services charged based on market competitive pricing
and cost allocations.
Holding company for the integrated set of mortgage businesses•
Capital Markets functions for non-QM products•
Main operating subsidiary for partnership lending businesses. Separately licensed in 20+ states•
Shelter MSA business operated from the SMC entity•
Main operating subsidiary for mortgage origination•
activities. Licensed in 48 states (including OH)
Operates three channels: Call Center, TPO, & Retail•
20+ MSAs operate from the NPF entity•
Multiple standalone JVs typically licensed in 1-3•
states and HUD approved
Technically a division of New Penn Financial, SMS•
provides mortgage servicing
90%+ of new originations are serviced by Shellpoint•
Mortgage Servicing
Several realtors and brokers partnering under•
one umbrella
Leveraging resources, capital, technology, marketing•
New Penn Financial
Various Standalone Joint Ventures
Shellpoint Mortgage Servicing
JV Consortium
Shellpoint Partners
Shelter Mortgage Company LLC
8. 14 15
TIMELINE FOR
FORMING A JOINT VENTURE
$1,000,000 minimum HUD requirement based on•
annual FHA volume
- Additional capital may be required depending on the
FHA volume that is funded
Additional funds required for startup costs and expenses•
until profitability
Contribution percentage matches ownership split•
Capital Contribution Requirements
1-2 Weeks 45-120 Days 30-60 Days Prior to Go-Live
Establish Legal Identity File Applications (HUD & State) Prepare for Originations Onboarding
Required to Start
Execute Operating Agreement•
Execute Services Agreement•
Capital funded•
Legal name established•
Company Set-Up
Open bank account•
Obtain TIN•
Register with state•
New payroll company / register with benefit•
plans (30 days)
Loan Origination System Branch Set-Up
Pricing•
Fees•
Appraisal panel•
Smart GFE/Title•
FHA Connection•
VA WebLGY•
Credit vendor•
MERS•
MI companies•
Determine affiliates•
Requirements
Audited financials•
Qualified Individual/ Control Person employed by company•
Executed lease(s)•
Bond and updated insurance policies•
Add to warehouse lines or Letter of Intent•
Required signage•
Additional Applications
VA•
Rural Housing/USDA•
State/county/local housing authorities•
Branch Onboarding
Facilities•
- Leases
- Equipment
- Telecom
Websites•
Marketing Collateral•
Employee Onboarding
MLO licensing and sponsorship•
Comp agreements & offer letters•
Computers/equipment•
Training•
9. 16 17
NEXT
STEPS
SUCCESSFUL
PARTNERSHIP
TO A
Appendix – High Level JV Launch Plan
Legal/Licensing: Operating Agreement, Entity Creation, State
Requirement Set-Up, Investor/Government/Warehouse Set-Up,
HUD Set-Up, VA Set-Up, NMLS Updates
HR: Payroll Set-Up
Servicing: MERS Set-Up
Appraisal Management: Preferred Appraisal Set-Up
Vendor Management: Create/Update Contracts
Product Development: Investor & MI Company Notification,
Desktop Originator Set-Up, Bond Authority Set-Up
Secondary: Product Set-Up, Rate Sheet Set-Up, Broker Fee Set-
Up
Finance: LOS Updates, GL System Updates,Checking Account
Set-Up, Financial Reporting Updates, Expense Report Set-Up
IT Systems: LOS Updates, Document Updates, Ancillary System
Set-Up - Top of Mind and Marksman, Report Updates
IT Communications: Voice and Data Set-Up, PC and Hardware
Set-Up
Marketing: Website Updates, Signage Updates, Marketing
Systems Updates
L&D: Communication and Training Plan Creation,
Communication and Training Delivery
We have several HUD Approved JV entities
including our consortium, Partners United.
“Shelter has been a breath of fresh air. They have the systems, back office and products for our loan officers to shine, while maximizing
our profits.” — Mike Pappas, CEO - Keyes Realty, Partner of Capital Partners Mortgage since 2012
“In all of our core services, we have always sought out a partner who is knowledgeable, reputable and responsive to our needs,
giving us the confidence and peace of mind to allow them to handle their aspects of the business, allowing us to focus on what
we do best. For us, that is what we have always found in Shelter Mortgage Services and now in New Penn Financial. They
share our focus on the customer and making the real estate transaction as smooth as possible. We know that our clients are
going to be served with a wide array of products and competitive rates and guidelines, but more importantly, by a partner
who will do what they say they will do and deliver results.” — Michael C. Scarafile, President Carolina One Real Estate Services,
Shelter Mortgage Partner since 1995
“Thanks for making everything go according to plan! I’ve closed 4 home loans since 1995, and by far working with you was the easiest
and best experience I’ve ever had. Thanks again!” — Caryn G., Tucker, GA
“After using you twice for mortgages, I can’t imagine ever needing to go anywhere else. Both times the rates were low, effort was small
on my part, and the service was fantastic! Thanks for all your help!” — Kelly B., Atlanta, GA
“The relationship with my Keller Williams office has afforded me a larger business than ever imagined. It is very demanding but also
very rewarding financially and in building relationships with agents. We have the opportunity to be in front of Realtors (our number
one referral source) every day.” — Nancy Grieve, Senior Loan Officer, Shelter Lending Services
“The market is crazy busy and from top to bottom at Shelter the support has been tremendous! Folks are willing to come in early, stay
late, and do whatever it takes to see files through closing. Very proud to have them as teammates!” — Jeff Wojcik, Home Mortgage
Consultant, Summitt Hime Mortgage
TALKING
SHELTER MORTGAGE
PEOPLE ARE
ABOUT
Our Homebuyers
Our Loan Officers
Our Partners
10. 18 19
IT’S ALL
FOR ONCE
ABOUT
YOU
At Shelter, we are passionate about what we
do. We want our customers to brag about
their mortgage. Together, we can achieve a
customer-first experience for all.
Our Partners Experience:
RESPA compliance•
Significant revenue creation•
Long term asset creation•
Mitigation of risk•
Reduced fixed cost obligations•
Access to decision makers•
Our Sales Agents Experience:
Increased individual productivity•
Greater control over the transaction leading to a better•
customer experience
Higher lead retention/conversions, referrals, and repeat•
customers
Our Customers Experience:
A better overall home buying and financing experience•
Convenience of competitive one stop shopping•
Working with a financially stable company that is held•
accountable by their agent
Deep product offering allowing them to pick the right•
mortgage option for them
