JULY 2018 NEWSLETTER

NW REGIONAL NEWSLETTER HIGHLIGHTS FOR THE MONTH OF JULY Welcome to the “dog days of summer” we started July off with a bang, (literally) and finished the month 800K up from June. Doesn’t sound like much but we were one of only two regions that increased production over June. Our industry is still dealing with low existing home inventories, pricing pressure, lack of new homes to the market, and a continued decrease in refinances. It is critical that our strong sales team be aggressive in your sales activities, if the pie is smaller we need to start taking from our competitors. EAT MORE PIE! We have had to make some hard decisions as we continue to tighten our belt in order to be sustainable in the future. It is never easy to say goodbye to valued employees. Operationally we need to continue to work together to reduce the number of days from application to approval. Processors and managers please take time to review your turn times for app to approval and app to funding in Domo. This will give you an idea where you match up with the rest of the region. The goal of closing in 10 business days is not a dream, we need to focus on bringing this to fruition. Shout out to Whittney Curran who graduated from Leadership Academy, please read more in the newsletter. Ev and the operations team along with Kelly Beebe’s branches attended the Myers-Briggs Type Indicator and Strength Finders workshop conducted by Peter Osborn. The insight on learning one another’s personality and strengths is very impactful when used correctly to determine the best way to work together as a team. At this point Dave Perry and Jason Oswald’s group has been through the workshop along with Lynn Hergenreder’s team. Summer starts moving fast, days are getting shorter, school is around the corner, please make sure you are getting a little time with family and friends. We have a lot of work left to do this year and it is important to keep your batteries charged. “A perfect summer day is when the sun is shining, the breeze is blowing, the birds are singing, and the lawn mower is broken.” -James Dent -Dave Schile

EVELYN COX This is a reminder as we get closer to the date of restricting who may contact the Credit Policy Support helpline for assistance. Beginning Thursday August 2, 2018, the CP Support helpline is available to any member of the Executive team, ROMs, Underwriting Managers and Underwriting Team Leads only. We are here to provide guideline assistance and interpretation along with communicating with the Agencies directly and our Investors for sometimes difficult, unusual and complex scenarios and loan details. The following message will be attached to every question coming in to Credit Policy Support by individuals who are not on the list. Thank you for your attention to this important new policy implementation. Credit Policy continues to focus on supporting each of you in your regions. “Thank you for reaching out to Credit Policy Support. We are forwarding your email/voicemail to the individuals in your region who can assist you with this topic. Please allow additional time for a response. For all future inquiries, please direct these questions to the individuals in your region designated to assist you with these matters. At this time Credit Policy Support is able to assist ROMs, Underwriting Managers and Underwriting Team Leads only. We appreciate your willingness to follow this new policy.” On another note, in our crazy market we have had to make some serious changes, was not an easy decision. We have had to make some staff reductions; sadly we have released Susan Holmes and Gretchen Riley. Susan was a great help in the merging of the two groups and in helping to get the closing department all on the same page. Gretchen was also great in helping tie up the loose ends with First Mortgage and was very helpful as a funder in our closing department. We wish them both well. Going forward, please reach out to the team member with questions related directly to a file they are working on. If you have general questions, please reach out to Fran Larsh, Team Lead. Rush requests need to be limited and need to be approved by me, we want to manage our time to be the most effective. QUOTES “To handle yourself, use your head; to handle others use your heart.” Eleanor Roosevelt “Keep your fears to yourself, but share your courage with others.” Robert Louis Stevenson “Victory has a hundred fathers and defeat is an orphan.” John F. Kennedy “You are not here merely to make a living. You are here in order to enable the world to live more amply, with greater vision, with a finer spirit of hope and achievement. You are here to enrich the world, and you impoverish yourself if you forget the errand.” Woodrow Wilson “Being responsible sometimes means pissing people off.” Colin Powell “You get in life what you have the courage to ask for.” Nancy D. Solomon

CHOOSE YOUR ATTITUDE: Laugh a little!!

I’d like to give a shoutout to Michelle Fisher because she’s a rock star in everything that she does! She’s the best team player and HUGE asset to our team. I don’t know how I’d make it through some of my days at the office without her! ~Danielle Costa Shout out to Rathdrum’s new employee Melanie Shay! She is very sweet and has caught on fast! She is our Admin Assistant. Melanie or “Mel” is 23, she has lived in Idaho for over a decade and loves the outdoors. She hikes, paddleboards, and enjoys playing with her heeler mix Watson. ~Austyn Shuman I would like to give a shout out to Danielle Hurd, Natalie Svaty, Heidi Williamson, Chealee Carstensen, and Sarah Holmes for always helping me out and picking up the slack if I am busy. Thank you for always being willing to help! ~Sara Weekes

Thank you to my outstanding team – Sandi, Dena, Kris, Monica, and Vicki - who joined forces to gather over $750 in contributions for new shoes for middle school PE classes for students in need in Nampa! Well Done! Also, collected were gently used shoes for the same cause…a total of 68 pair of shoes! AND a shout out to our friends at Costco who sold us discounted shoes for the cause! Amazing! Turns out…Academy Cares! ~Leon Baker Rathdrum welcomes Melanie Shay to our team! Melanie is new to the industry and is excited to grow with Academy, she will be an Administrative Assistant and learning and pre-processing. ~Teresa Metz Shout out to Sara Weekes (Miss Idaho Rodeo 2019) for winning the title of Lady in Waiting and crowned as rodeo royalty during the Snake River Stampede held in Nampa, Idaho each July. Congratulations on your crown and title Sara!! Picture courtesy of Maggie Weekes

Carolyn, The success and growth of our company is the direct result of you, our valued employees. This month marks your work anniversary with Academy Mortgage. On behalf of our Executive Team, I ex- tend my sincere appreciation for your service. We are stronger with you. And we are better because of you! People are, and always will be, our greatest asset. Please know that you are an important member of our Academy family. Your abilities and contributions will be an important part of our continued success, now and in the future. Again, thank you for being an active participant in inspiring hope, delivering dreams, and building prosperi- ty in the lives of those whom we serve. I look forward to working with you for many years to come. All My Best, James E Mac Pherson | President ___________________________________________________________________________________________ Thank you taking the time to congratulate me on my one year anniversary with Academy Mortgage. When I found out First Mortgage would no longer be originating loans a year ago, I honestly did not know what to expect for my future. Today, I can honestly say, because of Kelly Beebe, the whole change was a gift from God! She definitely manages with love, compassion and a keen business sense! In my 50 plus years of working, I have never know a manager to possess the talent this woman displays over and over. My only regret is I did not become a part of Kelly’s team earlier in my career! What I can say, is Academy has the best of systems in place and thank God, they have recruited the best of the BEST to make it all happen. Carolyn Summerton ______________________________________________________________________ Kelly, What a great and authentic compliment from Carolyn to you! I can only echo her response and add to her appreciation. You are an incredible leader and I am most grateful for all that you do to inspire hope in others. All My Best, James E Mac Pherson | Academy Mortgage Corporation l President

WELCOME OUR NEWEST EMPLOYEES MELANIE SHAY My name is Melanie Shay and I am 23 years old. I graduated Lakeland High School in Rathdrum, Idaho in 2013. Life is more fun when you view everything as an adventure. I always enjoy an opportunity to master new skills, which is why I am extremely thankful for the opportunity to join the Academy Mortgage team. Summertime is my favorite time of year as I love the outdoors. Some of my hobbies include hiking, swimming, and stand up paddle boarding. CAMILLE OEDING I am an Idaho native but have spent the last nine years travelling around the country with my husband Kade, who was enlisted in the Air force, and our four children. I first started with Academy as a loan processor in 2015. In late 2015, my husband was relocated to North Dakota and I stayed on with Academy as a telecommuter. As much as I loved working from home, I decided to go back to the workforce and took a position as the finance director of an Auto group. After being away for so many years, my husband and I made the decision to leave North Dakota and come home to our roots. We arrived in Meridian Idaho on the 4 th of July, and I started my new position with Academy as an LOA on the 9 of July! th I was more than excited to come back to my Academy family! We enjoy spending our free time playing on the river, camping with friends and family, and snowboarding in the winter. And of course keeping up with our four children and their sports and activities!

GRADUATES OF LEADERSHIP ACADEMY WHITTNEY CURRAN PICTURED BELOW Leadership Academy was a year long program. Everyone had to complete multiple group projects and every month there was some type of reading and paper to write. This picture is from the tour of West Point. The graduation was held there because some of the strongest leaders of our nation have graduated from West Point and still stand today as pillars of strong leadership. The importance of leadership is taught at West Point as their primary and main focus. TO ALL EMPLOYEES THAT JOINED US FROM “FIRST MORTGAGE” CONGRATULATIONS ON YOUR 1st YEAR with ACCADEMY MORTGAGE CORPORATION!

CRAIG BALLHAGEN—FEED THEM AND THEY WILL COME I have always been thinking of ways to reach out to various businesses in order to establish relationships with all employees. Face to face interaction with people is the best form of advertising. Last year I assisted an “Extendobed” employee with a home loan and when I met him at his work he gave me a tour of the facility. I got the Idea to mount a BBQ on an Extendobed, made here is Boise and visit various businesses to serve food. At that point I put together a campaign to establish relationships with 15 to 20 Boise area businesses with 100- 1000 employees. I would stop by a business twice a week, usually Wednesdays and Fridays, and park the truck near the front doors and the employees would file out 2- 10 at a time. It is a great opportunity for me to introduce myself and Academy Mortgage on a one-to-one interaction. I return to each of these businesses every 4 to 5 weeks, each time meeting more and more employees. The goal is to create an “organic” data base that I personally “visit” again and again. So far I have gathered multiple leads and several loans in just a few months of starting this adventure. Featured visits so far: T Sheets 300 employees TAOS 170 Trinity Health Services 150 Hollingshead Eye Cntr 75 Clickbank 75 Med Facilities 250 Tuckstop 100 Caption Call 800 ON Semiconductor 150

GOOD DEEDS During July, the Leon Baker Team worked hard to collect shoes for the Nampa Association of Realtors annual tennis shoe drive. The shoes collected will be disseminated to Nampa Middle Schools for required P.E. classes. Many kids have inadequate footwear – shoes with holes, shoes held together with duct tape, or no shoes at all to wear for P.E. We called upon our fellow business partners, customers, and friends to help us meet this very real need in our community, and they rose to the challenge and helped us collect 68 pairs of new and gently used shoes and several large packs of socks! So happy to be able to show our local community that Academy cares!!! Left to right: Dena Perkes, Monica Pilot, (customer) Shirley Kirk, Leon Baker and Kris Link LEON BAKER Tera Davis recently volunteered at Lincoln High School on behalf of the Junior Achievement group. Here is what she had to say about her experience: “Another successful Junior Achievement class. I have to say that this was probably my favorite class so far. These kids were there for summer school, many working towards final requirements to graduate. Honestly as they sit in that classroom just mere steps away from being completely on their own you can only imagine the anxiety they carry. We went over practical real world info on jobs, income, taxes, credit and savings. The best part was each one of them came up and said thank you at the end… We are more than a mortgage company. We whole heartedly believe in people first. This is the first step in the rest of their lives and we have no doubt that every single one of them will be going places.” TERA DAVIS PICTURED - LEFT -

JULY NUMBERS TOP FIVE BRANCHES IN THE NORTHWEST REGION LEGACY MERIDIAN 19,360,748 MERIDIAN 8,950,679 NAMPA ID CENTER 4,231,311 COEUR D’ ALENE 4,098,860 WALLA WALLA II 3,303,652 TOP TEN IN VOLUME TOP TEN IN PURCHASE VOLUME Jason Oswald 6,398,866 Jason Oswald 6,013,866 David Perry 5,137,549 David Perry 4,561,049 Leon Baker 4,575,311 Leon Baker 3,887,711 Tera Davis 3,303,652 Tera Davis 3,039,102 Whittney Curran 2,910,019 Whittney Curran 2,755,019 John Spiker 2,599,477 Leon McKean 2,562,284 Leon McKean 2,562,284 John Spiker 2,221,977 Bob Beisly 2,186,479 Mike Lipinski 1,705,408 Scott Petersen 2,042,371 Karen Wright 1,646,205 Mike Lipinski 1,760,138 Bob Beisly 1,581,350 “Success is not final; failure is not fatal: It is the courage to continue that counts” ~Winston S. Churchill “The road to success and the road to failure are almost exactly the same” ~ Colin R. Davis

NORTHWEST LOAN OFFICERS 1. Jason Oswald $6,398,866 19. Mike McLean $1,262,966 2. David Perry $5,137,549 20. Cheryl Lipp $1,165,421 21. Vicki Leavitt $1,108,037 3. Leon Baker $4,575,311 22. David Moberly $1,022,855 4. Tera Davis $3,303,652 23. Stephanie Johnson $886,550 5. Whittney Curran $2,910,019 24. Terry Anderson $838,270 6. John Spiker $2,599,477 25. Eloisa Rawson $707,298 7. Leon McKean $2,562,284 26. Anne Erickson $672,531 8. Bob Beisly $2,186,749 27. Anissa Franklin $666,000 9. Scott Petersen $2,042,371 28. Lynn Hergenreder $532,110 10. Mike Lipinski $1,760,138 29. Dean Gillmore $501,800 11. Karen Wright $1,646,205 30. Mike Lipinski $453,100 12. Michael Julius $1,516,076 31. Kristi Lacroix $408,463 13. Ryan Shelby $1,479,582 32. Tina Ellis $369,093 14. Teresa Metz $1,402,475 33. Heidi Bateman $278,286 15. Angie Prendergast $1,383,958 34. Michael Louden $220,924 16. Maureen Miller $1,348,915 35. Adam Zachary $208,000 17. Jamie Nettles $1,310,710 36. Lisa Steinke $151,126 18. Jennifer Bender $1,265,856 TOTAL $56,283,023

Time to Heat Up Your Business Summer is a hot season for the mortgage industry By Bubba Mills, CEO and owner, Corcoran Consulting & Coaching Inc. Noted American author Henry James once wrote: “Summer afternoon — summer afternoon; to me those have always been the two most beautiful words in the English language.” We don’t know what James liked so much about summer afternoons, but it’s obvious why mortgage professionals should like all of summer: It’s when they can make some serious money. Take the National Association of Realtors’ (NAR’s) word on the subject. The NAR has conducted a study every year since 1999 and found that the seasons do, in fact, play an important role in the housing and mortgage markets. In short, NAR says homebuying and home-selling activities swell during the spring and summer months of the year, and then trail off during the fall and winter. During pretty much the entire second quarter of each year, existing-home sales start a steady climb with an average month-over-month growth rate of 10 percent each month from April to June. As a result, May, June, July and August become the four heavi- est home-selling months each year and end up accounting for 40 percent of an average year’s total home-selling volume. NAR also found that home sales begin to drop in earnest in September. Existing-home sales fall by an av- erage of 16 percent from August to September each year, and then fall by another 10 percent in Novem- ber. The slowest period each year is from November to February. Those four months account for just 27 percent of an average year’s total home-selling volume. NAR also determined that mortgage applications — not surprisingly — follow these seasonal trends as well, but slightly earlier. So the big months for mortgage applications are primarily April through July. That means it’s time to get busy and capitalize on the upcoming summer. Here are some suggestions to help you make the most of this coming summer. HOLD A SPECIAL EVENT Take advantage of the warm weather and hold a special event at a local park. This could be a picnic, a client-appreciation cookout, a summer staycation party, a cook-off or an ice cream social — anything fun. Toss in a freebie or two related to your business — maybe summer-related offerings like water bot- tles, beach towels, or sunscreen with your company’s logo — that you can hand out to potential clients or partners. You also can research summertime events that you might piggyback on. Just about every city has some Memorial Day festivities, for example. Is there a festival that makes sense for you to partner with so you can get your name (or your company’s name) out there? Or are there some that are worth buying a booth at? In general, think about where the crowds will be gathering this summer and be there, too. There are plenty of options during these months, such as local festivals, outdoor shopping areas, beaches and rec- reational areas. Find some that make sense and make an appearance. Page 1 of 2

REFRESH YOUR REFERRALS AND YOUR LOOK To get your business really warmed up for the summer, ask your former clients for referrals. Outbond Engine, a marketing-automation company, found that 83 percent of clients are willing to provide a referral after they had a positive experience, but only 29 percent actually give referrals. Why is that? The main problem seems to be that few past clients are ever asked to give referrals. Remember this three-letter word to change your life: ask. You should ask your happy clients for re- ferrals, and perhaps ask them to jot down some positive comments about you on popular review websites like Yelp. Spring and summer also are made for cleaning, and the same is true for your marketing materials — both hard copy and digital. If it’s been awhile since you’ve added anything to your campaigns, it’s likely time for a refresh. Pull out all of your materials and give them a good looking over. Update your website and social me- dia with new copy and images as well. This even might be a good year to hire a professional to help you stand out. At minimum, get another set of eyes to review your materials to make sure your look and feel — as well as your messaging — still have the spark that speaks to your target audience. • • • If you take some time to think through these items and really plan out your summer, you might find a few extra opportunities to increase your business. Go back and think about each of these points, and see how you can expand on them to make your summer a season to remember. Then, as you think about this summer, it will pay to ask yourself some questions about your preparation. Do you feel you’ve given enough thought about how you might capitalize on market forces during the summer? Have you looked back at past summers to see what opportunities presented themselves that you may not have noticed? Have you considered specific activities you can do to increase your business during the summer months? You can even share your answers with a colleague or a friendly mortgage coach. Page 2 of 2