Newsletter for January 2019

NW REGIONAL NEWSLETTER HIGHLIGHTS FOR THE MONTH OF JANUARY Punxsutawney Phil did not see his shadow on Groundhog Day so look for an early spring! A precursor to Phil’s forecast was our numbers in January. Closings were up just a hair from January 2018, applications were up 11% from December but Credit Pulls jumped to 587. To put that in to perspec- tive we had only 321 pulls in December and the last time we were close to the January number was last August at 600. All hail to the Gopher, let’s bulldoze our way out of winter and head towards a prosperous spring. Academy’s annual January Summit in Salt Lake kicked off the year for many of our top managers and top producers. Those qualifying for an invitation were treated to two days of incredible stories, breakouts, team building, and messages from our executive team. Please review the infor- mation at the end of this newsletter and enjoy pictures from the event. We are definitely feeling the seasonality that comes with this time of year and many of our operations team members are wanting to be busier. Please use this time to “sharpen your ax” whether it is catching up on your Academy University courses or learning to read tax returns use this time to increase your skill level. In order for us to be 1 Choice we need each and st every one of our ops team to be at the top of their game. If there is something you feel is missing, get with Ev, your branch manager, or reach out to me. Be your best self! We are excited that Tera Davis is one of three finalists for the Duane Shaw Award that will be announced next month at the Executive Club event in Cabo! I was happy to see that they moved the Israel trip to next spring and lowered the 2018 + 2019 purchase volume from 56M to 50M. Those in the run- ning need to tighten your laces and sprint to the finish! “You can set as many goals as you want. But without belief and conviction it won’t happen.” – James “Iron Cowboy” Lawrence -Dave Schile

EVELYN COX Did you know? The way that files are selected for audits - Our selection process is entirely risk-based. For full file audits, Encompass is programmed to assign a risk score based upon layered risk factors that takes into account the following: LTV >80% FICO score <720 Non-owner Occupancy (Investment property or 2 Home) nd Self-employed borrower and/or co-borrowers Back-end DTI >42% Cash-Out 10+ AUS runs The higher the risk score (more layered risk), the more likely a file is to get selected. On a daily basis, we select loans for full file audits in a cascading fashion, from greatest to least amount of risk. Each day, 8 files are selected for full file audits. From a light file standpoint, Encompass assigns a light file attribute to the loan if it contains any of the following company quality tall bars when submitted to processing; **Payment shock, as well, though we’ll only audit those if the AUS decision is a Refer (an A/E takes into account the shock as part of the approval analysis). Each day, 16 loans are selected for light file audits. We use an automated tool to select loans at the “Submitted to Processing” milestone, and it won’t select a loan with <8 days until the target closing date. Quotes of the Day “Only undertake what you can do in an excellent fashion. There are no prizes for average performance.” – Brian Tracy “You must remain focused on your journey to greatness.” – Les Brown “Accept responsibility for your life. Know that it is you who will get you where you want to go, no one else.” – Les Brown “Whenever you are asked if you can do a job, tell’em, “Certainly I can!” Then get busy and find out how to do it.” – Theodore Roosevelt

SMILE A LITTLE

WELCOME JACKIE OUR NEWEST EMPLOYEE AND JONATHAN OUR NEWEST PROMOTED EMPLOYEE JACKIE STEARNS JONATHAN MICHALSKI

Big shout out to the Eagle, Meridian and Nampa offices that bought girl scout cookies from my daughter Addy. Thank you all so much!!! ~Tanya Eagans I just wanted to say a huge thank you to everyone who celebrated with nd Sophia on her 2 Birthday. I am so blessed that my Academy family has welcomed her into our family and makes her feel so loved. I will be so eternally grateful to you all. Huge hugs and thank you to everyone! ~Jennifer Bender I received a call late Friday afternoon with a VA loan in crisis with another lender and the possibility of the borrower’s losing their money down and their new dream build. I scrambled over the weekend to see if I could make it work, turned it live Sunday evening and just got final approval today and ready for docs!! We have to wait to close Tuesday for compliance, but this approval/close is record time!! Mo – who is always up for the challenge, dug in and did her thing – going the extra mile to make this happen Tina – was awesome, fast responding, communicative and we walked together through things we needed and what could be done Brandi – another team player that took the challenge, got the CD out and never batted an eye These girls deserve huge kudos!!! ~Angie Prendergast

BIG SHOUT OUT to PEARL SMITH for receiving an invitation for Operations to attend the executive trip in Cabo. Have a great time Pearl, you deserve it! Shout out to my new branch (Nampa 200) Georgea, Mike, Jen, Alice, Tina and Carolyn! Thank you for already making me feel so welcome and for all the training and assistance! Shout out to Kelly, Angela, Leon, Sandy, Dena, Kris and Tanya for all your help during my transition from Closer to Loan Officer! ~Jonathan Michalski Shout out to our new/old employee Justin Petersen. He is currently back to work at our Rathdrum Branch with a broken collar bone. ~Austyn Shuman “I wanted to shout out to Manessa for being super quick on our files and never hesitating to answer any questions I have for her!” ~Heather McLean Shout out to Angie Prendergast! Angie is one of the biggest reasons I work as hard as I do and I’m excited to come to work because she’s on the other end of what I do. She makes every day an adventure. Not only is she a gifted and dedicated Loan Officer who strives to put together a perfect file in record-time, but she has become a confidante and valued friend to my family and I. Thank you for introducing my kids to “spicy lemon juice” and for the inside joke you now share with my husband. You have permanently impacted my heart and soul. Thank you for being you and being REALLY good at it! Love you most Denise Vargas – my meme twin! Girl, why aren’t we neighbors yet? I love the random calls and laughs. It’s nice to know I have a sister from another mister representing the Tri-Cities! You’re amazing my friend ~ Mo (Manesseh Castro)

Charity Project “The Davis Team in Walla Walla paired up with Jenna Provost from The Provost Team at the Wedding Expo 2019 on Jan 19 . It was a great crowd th of Bride-to-Be’s and Groom’s-to-be along with all their family and friends supporting them. We had the pleasure of hosting a booth where we shared information on home buying and financing. Acade- my Mortgage and The Provost Team created a beau- tiful basket to give away at the event and one lucky hopeful was able to walk away with over $100 in awesome gifts.” I just wanted to say thank you for the opportunity to attend Summit and to my wonderful team who covered for me so I could be fully present during the meet- ings. It was a wonderful experience and I am very grateful to have been able to go and learn. ~Jennifer Bender



Nominee #2—Tera Davis, Walla Walla, WA Years of Service With Academy: 6+ This nominee puts relationships—not deals—first. He/She is the go-to person in their community for honest, upfront advice and total transparency about the mortgage lending process, even when Academy isn’t the lender! He/She is very engaged in helping all to become homeowners. As a manager, this nominee oversees two teams and believes everyone plays a big part in the home loan transaction. His/Her colleagues experience first-hand how this person invests in their people, both monetarily and emotionally. He/She cares personally about each team member and treats them like family. He/She offers their extensive market knowledge and tips of the trade without reservation by answering questions, mentoring new recruits, and leading by example. This nominee provides an extraordinary example of how to give back to our communities. He/She currently serves as President Elect for the local Exchange Club, where he/she has also volunteered as a Child Abuse Prevention Specialist and was Rookie of the Year for her commitment to the organization right out of the gate. This person’s involvement with the Exchange Club led them to the Children’s Home Society, where he/she dedicated one hour a week volunteering as a Parent Aide, helping mothers who had lost their children to neglect and had recently gotten them back. This nominee is also involved with Junior Achievement, teaching local students about topics related to finance and goal-setting. On a more personal level, this nominee makes a donation from each of their closings to go toward meeting a particular need in their community. Recently, the beneficiary of this kindness was a man who spreads positivity while riding his bike throughout town. This nominee and their team presented this man with a new bike and equipment. This nominee also started a new organization in their community to collect $100 donations from 100 people to support and fill funding gaps for selected non-profit organizations. For more than 15 years, this nominee has been a part of their local Association of Realtors and currently sits on the board. Through this assignment, this person helps with two major food drives for the local food bank. This person is a member of Academy’s President’s Club.

JANUARY NUMBERS TOP FIVE BRANCHES IN THE NORTHWEST REGION Meridian $10,809,586 Legacy Meridian $7,915,071 Walla Walla II $2,943,522 Nampa ID Center $2,435,489 Milwaukee $1,551,628 TOP TEN IN VOLUME TOP TEN IN PURCHASE VOLUME David Perry $3,382,256 David Perry $2,897,906 Tera Davis $2,943,522 Tera Davis $2,496,695 Ryan Shelby $2,436,546 Ryan Shelby $2,306,046 Leon Baker $2,435,489 Leon Baker $2,280,489 Whittney Curran $2,358,187 Whittney Curran $1,785,787 Jennifer Bender $2,192,688 Jason Oswald $1,430,337 Jason Oswald $1,867,537 John Spiker $1,383,616 Karen Wright $1,447,917 Jennifer Bender $1,341,282 Vicki Leavitt $1,399,638 Maureen Miller $1,261,156 John Spiker $1,383,616 John Schaff $1,233 ,716 “If everyone is moving forward together, then success takes care of itself” ~Henry Ford “Teamwork divides the task and multiplies the success” ~Author Unknown

NORTHWEST LOAN OFFICERS David Perry $3,382,256 Scott Petersen $946,263 Monica Barton $945,192 Tera Davis $2,943,522 Bob Beisly $841,856 Ryan Shelby $2,436,546 Tina Ellis $729,194 Leon Baker $2,435,489 Eloisa Rawson $590,397 Whittney Curran $2,358,187 Angie Prendergast $526,299 Jennifer Bender $2,192,688 Mike Lipinski $499,547 Jason Oswald $1,867,537 Brenda Heller $266,300 Karen Wright $1,447,917 Leon McKean $237,500 Vicki Leavitt $1,399,638 Mike McLean $206,610 John Spiker $1,383,616 Craig Ballhagen $178,972 Maureen Miller $1,261,156 Kristi Lacroix $159,750 John Schaff $1,233,716 Cheryl Lipp $150,000 Jamie Nettles $1,038,256 Nichole Thueson $125,406 Teresa Metz $1,033,427 Adam Zachary $107,790 Terry Anderson $982,399 Total $34,868,657

The Power of Potential We introduced P6—Potential. Academy 5 P’s—PURPOSE, PEOPLE, PASSION, PRODUCTIVITY, and PERFORMANCE power your Potential. Potential is defined as having or showing the capacity to develop in the future. I believe each person has the ability to achieve their Potential and help others to achieve their Potential as well. Banners of a few of our team members were hung throughout the room showcasing a glimpse of the Potential we have within our organization. By no means did having a banner mean you had more Potential than others! We recognize the extraordinary Potential of every one of the 280 attendees at the Summit. Your power to achieve your Potential will power the growth and future of Academy. Throughout the Summit, we heard from FANomenal speakers, some of the best I think we’ve ev- er had, including those who shared their story from our own Academy Team. We held education- al workshops and collaborated as teams to reach the summit of Mount Everest through a simula- tion. Many of you connected with your peers and shared best practices. Always a highlight of the Summit for me, we served together by packing meals for those who are hungry throughout the world. Click here to watch a video of the Summit’s highlights. Summit Workshops We have received several requests for the workshop worksheets for you to utilize with your teams. We also heard from many of you that the workshops were not long enough to accomplish their stated objectives. We realize this, as the topics required you to look deep within and spend time in personal reflection. We will be expanding on these topics in the year ahead; see the re- lease timeline toward the end of this email. We are also exploring the option of presenting these workshops on a smaller scale; in the coming weeks we will send additional information regarding this plan. In the meantime, we’ve attached the worksheets from the following Summit work- shops:  Developing the Potential Within You—Adam Kessler and James Mac Pherson  Developing Your Brand—Mike Jensen and Kevin Haycock  Developing the Potential in Others—Abby Hawkins and Patrick Welberg As for the month of February—please introduce P6—Potential to your teams. To help you do so, you will find a synopsis of the Leadership Summit on the next page,. PAGE 1 OF 5

Welcome to the Summit—James Mac Pherson, President I had the privilege of kicking off the 2019 Leadership Summit with an overview of where we have been, where we currently are, and where we are headed as an industry and as a company. I shared two favorite quotes defining leaders: “The task of leadership is not to put greatness into humanity, but to elicit it, for the greatness is al- ready there.”—John Buchan, former General Governor of Canada “A leader is someone who holds herself or himself accountable for finding potential in people and pro- cess.”—Dr. Brene Brown, author and research professor at The Graduate College of Social Work at the University of Houston Develop Potential Within You – Mike Jensen, EVP, Growth Mike shared some very personal examples from his own life—from his son Noah’s experience of find- ing his purpose, to seeing the Potential in his friend Moises on a Service Expedition to Secanquin, Gua- temala, to how he personally followed his Passion. Mike referenced how Potential is energy, and he encouraged us to find our own energy source and determine what boosts your energy source as well as what drains it. Mike also shared three detractors that frequently get in our way and prevent us from achieving our full Potential.  Losing sight of our purpose.  Expecting perfection out of the gate.  Not forgiving ourselves when we don’t achieve our potential. He followed with a list of practices to help you achieve your Potential: Practice #1: Develop your Purpose and personal Vision and review it daily.  Practice #2: Protect your Purpose; Don’t allow distractions or fears to cloud your Vision; Share your fears with others.  Practice #3: Plan with a Purpose; Set weekly goals and continually align and re-align them with your Vision.  Practice #4: Prioritize your Purpose; Allocate a significant amount of your time, talents, and treasure to support your Vision.  Practice #5: Promote your Purpose; Weave it into your daily conversations, interactions, activities, relationships, and responsi- bilities.  Practice #6: Partner with People whose Purposes and motivations align with yours.  Practice #7: Promote the Potential of others. PAGE 2 OF 5

Develop Potential in Others – Abby Hawkins, SVP, Business & Talent Development Abby shared several inspiring stories of how our leaders across the organization have played a signifi- cant role in developing the Potential in their People. Outside of Academy, she highlighted two indi- viduals—Mozart and Serena Williams—and analyzed what made them great: They both had People who invested in them. Abby emphasized that as the leaders of Academy, you must invest in your Peo- ple—engage and cultivate their talent, help them achieve their Potential, and move them from Good to Great. Abby shared several factors that increase engagement:  I know what is expected of me at work.  I have the materials and equipment I need to do my work right.  At work, I have the opportunity to do what I do best every day.  In the last seven days, I have received recognition or praise for doing good work.  My supervisor, or someone at work, seems to care about me as a person.  There is someone at work who encourages my development.  At work, my opinions seem to count.  The mission or purpose of my company makes me feel my job is important.  My associates or fellow employees are committed to doing quality work.  I have a best friend at work.  In the last six months, someone at work has talked to me about my progress.  This last year, I have had opportunities to learn and grow. She also discussed a list of reasons that prevent us from developing others:  Time – We are too busy.  Results – We are too focused on the end result.  Fear – We are afraid. Don’t let these reasons get in your way of developing others. Make the time, look beyond the results, be confident and fearless. PAGE 3 OF 5

Develop Your Story – Kevin Haycock, EVP, Sales Leadership Team Kevin shared his Haycock family history, and we all walked away with one great quote from Kev- in’s father, Dick: “Don’t say woah in a mud hole.” Kevin’s comments also included this quote from author Robin Sharma: “Leadership is about having unshakeable faith in your vision and unrelenting confidence in your power to make posi- tive things happen. Forget what others might say. And remember what Albert Einstein once wrote: ‘Great spirits have always encountered opposition from mediocre minds. Just go do your work as well as you can humanly do it. The rest will take care of itself.'” Telling Your Story Cory Herell—Chad Melin—Charadie Finkle—Tera Davis—Justin Harris A very heartfelt thank you to Cory Herell, Chad Melin, Charadie Finkle, Tera Davis, and Justin Harris for having the courage to share your story with us. Thank you for inspiring us! Hilaree Nelson, Everest Mountaineer Wow…Hilaree Nelson was full of Passion for those mountain terrains! While conquering Mount Everest is a commendable achievement of its own, Hilaree kept going and summitted Lohtse in the same day. Amazing! On her attempt to summit Hkakabo in Northern Burma, she encoun- tered issues with her team doubting her ability, which resulted in self-doubt. Although she ex- perienced moments of defeat and fear, she used these experiences as an opportunity to grow, learning a lot about herself, her team, and the importance of trust. She continues to follow her Passion and push her Potential. Words of inspiration from Hilaree:  Always play to people’s strengths.  Realize who you are and know what you have to offer.  Be present and in the moment.  Success isn’t always a linear path.  Always strive for greatness—aim high and take the time to work with People. “Character cannot be developed in ease and quiet. Only through experience of trial and suffer- ing can the soul be strengthened, ambition inspired, and success achieved.”—Helen Keller, au- thor, political activist, and lecturer PAGE 4 OF 5

Inky Johnson, Former College Football Player Although Inky Johnson has experienced significant setbacks in his life, his perseverance and Passion has helped him push through to continue to reach his Potential. In his story, it all started with a stranger stopping on the side of the road because he saw Inky’s Potential. He has, in turn, continued to help others achieve their Poten- tial. Words of inspiration from Inky:  Perspective drives performance.  Make a concentrated effort to make a positive impact on other People’s lives.  As long as you can live your life and make sure someone else is okay, you will be doing alright.  Never take what you do for granted.  Always look for the Potential in others—we don’t know everyone’s story. James Lawrence, Iron Cowboy 50 Iron Man races in 50 days in 50 states—unbelievable and James Lawrence did it! With his determination, Passion, and the People surrounding him, James defied the odds and gave a 50-day Performance of a lifetime. Words of inspiration from James:  Be present and focus on your Purpose.  Belief and conviction in doing what you say you will do.  If you are tired of starting over, stop giving up.  The team surrounding you is an essential component to your success. His team was fully committed, and never once did they say they were too tired or that they wanted to give up.  Show up with a “doubt me now” attitude. “To grow, to adapt and evolve, we need to become uncomfortable intentionally. Only then will we meet the best version of ourselves and honesty to find out what we can accomplish.” —James Lawrence, The Iron Cowboy PAGE 5 OF 5