EXHIBIT 10.8




i   Irwin Mortgage

Loan Broker/Correspondent Agreement


This Agreement, made and entered into this 1st day of July, 2001, by and between Irwin Mortgage
Corporation, an Indiana corporation ("Irwin") and HeritageBank of the South ("Broker/Correspondent").


Whereas. Broker/Correspondent is in the business of originating first mortgage real estate loans by taking
and processing loan applications from prospective borrowers and placing these applications on a non-exclusive basis with mortgage lenders such as Irwin who underwrite, close and, fund approved loans; and


Whereas, Irwin and Broker/Correspondent desire to engage in similar transactions for such loans
("Loans").


Now therefore, in consideration of the mutual promises made herein and the terms and conditions set
forth below, Irwin and Broker/Correspondent agree as follows:



PROCEDURES


1.         Registering Loans.  Broker/Correspondent may from lime to time register Loans with Irwin. The
price for any such Loans, the lock-in period, and all other price issues will be governed by Irwins
Pricing Policy and Procedures, a copy of which is attached to this Agreement.  By locking in a Loan,
Irwin agrees to fund the Loan, provided that the loan complies with all provisions of this Agreement and
the Irwin Pricing Policy and Procedures. Irwin in its sole discretion, reserves the right to change prices
and its pricing policy at any time and without prior notice to Broker/Correspondent.  In no event,
however, shall such a change in prices or pricing policy affect a Loan previously locked-in with Irwin by
Broker/Correspondent.


2.         Status of Registered Loans.  Broker/Correspondent will keep Irwin informed as to the pipeline
status of Loans to be funded by Irwin under this Agreement.


3.         Broker/Correspondent Duties.  Broker/Correspondent understands and agrees that payment of
any compensation shall be based solely on actual and specific loan origination and processing services
provided by Broker/Correspondent in connection with each Loan transaction. These services shall
include, but are not limited to, the following: (a) counseling borrowers concerning availability of various
loans and the general process of obtaining a loan; (b) explaining to borrowers Irwin's loan products,
programs and lending philosophy; (c) completing the loan application with borrowers and obtaining
signatures thereto; (d) obtaining merged credit reports including FICO scores from three repositories; (e)
evaluating such credit information to pre-qualify borrowers for Irwin's loan products and programs, (f)
assisting borrowers with explanations of delinquent credit; (g) preparing Good Faith Estimates as
required by the Real Estate Settlement Procedures Act and preliminary Truth in Lending Act disclosures
and sending same to borrowers within three (3) business days of application; (h) providing borrowers
with all other disclosures required by federal, state or local laws or regulations, (i) obtaining loan
processing information such as verifications of employment and deposits, tax filings and pay stubs; (j)
processing information to further qualify borrowers for an Irwin loan products or programs; (k) ordering
property appraisals and reviewing same to ascertain conditions; (l) ordering title reports and
commitments; (m) keeping borrowers informed of status of loan application; and (n) submitting fully
processed application files to Irwin for underwriting.







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4.         Delivery of Loan Files. Irwin will work directly with title companies, closing agents and
attorneys to ensure delivery to Irwin of loan documents for Loans closed under this Agreement.
However, where Irwin agrees to allow Broker/Correspondent to prepare its own closing documents.
Broker/Correspondent will deliver all closing documents to Irwin within three (3) days of loan closing.


5.         Delivery of Other Information/Documentation.  All information and documentation of any
Loan required by Irwin to satisfy the requirements of FHA, VA, GNMA, FNMA, FHLMC or any private
investor or pool commitment shall be delivered by Broker/Correspondent to Irwin no later than thirty
(30) calendar days after Loan closing.  Broker/Correspondent understands that the timely receipt of such
information and documentation is of critical importance to Irwin, and agrees to cooperate to the best of
its ability in obtaining and delivering all necessary items to Irwin within the required thirty (30) days.
Any failure by Broker/Correspondent to comply with this provision could result in the required
repurchase of the affected Loan or Loans from Irwin and/or the termination of this Agreement by Irwin.


6.         Underwriting.  Broker/Correspondent agrees to pay an underwriting fee as established in wilting
by Irwin from time to time for all Loans Erwin underwrites. The underwriting of a Loan by Irwin shall
not affect in any way Broker/Correspondent's obligations hereunder, including without limitation,
Broker/Correspondent's repurchase obligations and or indemnification obligations under this Agreement.


7.         Irwin Liability to Broker/Correspondent or Registering/Underwriting Loans.
Notwithstanding any language in this Agreement to the contrary, Irwin shall have no liability to the
Broker/Correspondent for any act or omission related to the registration and/or underwriting of Loans,
including but not limited to those caused by equipment or computer failures, labor strikes or walkouts,
casualty, and acts of God, except where such act or omission constitutes gross negligence on the part of
Irwin.



BROKER/CORRESPONDENT REPRESENTATIONS AND WARRANTIES


8.         Broker/Correspondent Representations and Warranties.  Broker/Correspondent hereby
makes the following representations and warranties to Irwin, which shall be deemed made as of the date
hereof, and hereafter as to each and every date Broker/Correspondent submits a Loan to Irwin.


A.         As to Broker/Correspondent:


		1.         Broker/Correspondent is duly organized, validly existing and in good standing under the
laws of its state of organization and is qualified to transact business, has all licenses, permits and
registrations and is in good standing iii each state where Broker/Correspondent originates Loans,
as necessary to engage in the mortgage Broker/Correspondent business and to perform as set
forth in this Agreement;

2.         Broker/Correspondent has the full power and authority to enter into this Agreement and
neither the execution and delivery of this Agreement or the consummation of the transactions
contemplated herein, nor the fulfillment of or compliance with the terms and conditions of this
Agreement, will conflict or result in a breach of any term, condition or provision of
Broker/Correspondent's certificate of incorporation or by-laws or any agreement to which
Broker/Correspondent is a party or by which Broker/Correspondent is bound, or constitute a
material default or result in an acceleration under any of the foregoing;









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		3.         No consent, approval, authorization or order of any court, governmental body or any
other person or entity is required for the execution, delivery and performance by
Broker/Correspondent of this Agreement including, but not limited to, the submission of Loans
to Irwin;

4.         Neither Broker/Correspondent nor its agents know of any suit, action, arbitration or legal
or administrative or other proceeding pending or threatened against Broker/Correspondent which
would affect its ability to perform its obligations under this Agreement; and


5.         This Agreement has been duly authorized and executed by Broker/Correspondent and is,
or upon delivery will be. a legal, valid and binding obligation of Broker/Correspondent
enforceable in accordance with its terms, subject only to applicable bankruptcy, reorganization.
insolvency, moratorium or other similar laws affecting creditor rights generally.




B.         As to each Loan:


		1.         Each Loan is a valid first lien on the mortgaged property free and clear of all
encumbrances and liens having priority over the lien of such Loan, except liens for real estate
taxes and special assessments not yet due and payable;

2.         The mortgaged property is free and clear of all mechanic's and materialmen's liens or
liens in the nature thereof, and no rights are outstanding that under law could give rise to any
such lien, nor is Broker/Correspondent aware of any facts which could give rise to any such lien;


3.         Broker/Correspondent shall deliver to Irwin an appraisal report of the mortgaged
property for each such Loan signed by an appraiser approved or acceptable to Irwin, which report
shall be on the applicable FNMA form for the type of property securing the Loan, prior to
Irwin's approval of such Loan. In the case of insured or guaranteed Loans, Broker/Correspondent
shall deliver to Irwin a certification, or a copy thereof, by the insuring or guaranteeing agency of
its acceptance of the. valuation assigned to the real estate security by the appraiser;


4.         All federal and state laws, rules and regulations applicable to the Loans have been
complied with, including but not limited to: The Real Estate Settlement Procedures Act; the
Flood Disaster Protection Act; the Federal Consumer Credit Protection Act including the Truth-in-Lending and Equal Credit Opportunity Acts; the Home Mortgage Disclosure Act, the Fair
Housing Act, statutes or regulations governing fraud, lack of consideration, unconscionability,
consumer credit transactions or interest charges; and all conditions within the control of
Broker/Correspondent as to the validity of the insurance or guaranty as required by the National
Housing Act of 1934, and the rules and regulations thereunder; or as required by the
Servicemen's Readjustment Act of 1944, and the rules and regulations thereunder; or as imposed
by the mortgage insurance companies or other insurers;


5.         No Loan is the subject of litigation which could affect Broker/Correspondent's ability to
enforce the terms of the obligation or its rights under the Loan documents;


6.         There is in force for each Loan a paid-up title insurance policy issued by an Irwin-approved title company in the amount at least equal to the outstanding principal balance of the Loan;









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		7.         There is in force for each Loan a hazard insurance policy and flood insurance policy,
where applicable, meeting the requirements of Irwin.

8.         Where required by applicable state law, Broker/Correspondent will record the mortgage
assignment in the name of "Irwin Mortgage Corporation" and the assignment of the Loan front
Broker/Correspondent to Irwin is valid and enforceable;


9.         The borrower has no rights of rescission, set-offs, counterclaims or defenses to the note
or mortgage securing the note arising from the acts and/or omissions of Broker/Correspondent in
the origination of the Loan;


10.        Broker/Correspondent has no knowledge that any improvement located on or being part
of the mortgaged property is in violation of any applicable zoning law or regulation;


11.        The mortgage property is (a) in good repair and free of substantial damage from any
cause, including but not limited to flood, fire, accident, earthquake, hurricane, or other disaster or
calamity; and (b) the market for real estate in the geographical area of the mortgage property has
not materially and adversely declined since the date the property appraisal report was issued; and


12.        Neither Broker/Correspondent, borrower or any person or entity engaged by
Broker/Correspondent, its officers, employee's or agents which is involved in the Loan,
including without limitation any appraiser or credit reporting agency, has (a) made any false
representation or provided information which is not true, complete and accurate as is reasonably
necessary for Irwin to make an underwriting decision; or (1,) received any direct or indirect
benefit, fee, commission or other consideration of value from borrower or any other party in
connection with the Loan except chose fees properly charged to borrower.





BROKER/CORRESPONDENT'S REPURCHASE AND INDEMNITY OBLIGATIONS


9.         Broker/Correspondent's Repurchase Obligations. Broker/Correspondent shall repurchase any
Loan sold to Irwin pursuant to this Agreement within thirty (30) business days of receipt of written notice
from Irwin of any of the following circumstances:


	A.	Broker/Correspondent fraud or misrepresentation in the origination or processing of the Loan;


	B.	Broker/Correspondent fails to observe or perform or breaches in any material respect any of the
representations, warranties, covenants or agreements contained in this Agreement or the Manual
with respect to a particular Loan; or


	C.	Failure by Broker/Correspondent to deliver to Irwin within thirty (30) days from the date each
Loan was purchased by Irwin the original information/documentation specified in Section 5 hereof.



The option to request or accept repurchase of any Loan is at the sole discretion of Irwin, and shall survive
termination of this Agreement.


10.         Repurchase Price. Repurchases under Section 9 hereof shall be priced as the sum of:


	A.	The unpaid principal balance of the Loan on the date of repurchase;










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	B.	All accrued and unpaid interest on the Loan as of the date of repurchase;


	C.	All unreimbursed advances and extraordinary costs and expenses incurred by Irwin with regard
to the Loan;


	D.	Any yield spread premium, service release fee or other amounts previously paid by Irwin to
Broker/Correspondent for the Loan; and


	E.	All losses, costs, damages and expenses incurred by Irwin in connection with such repurchase.



Upon any such repurchase of Loans by Broker/Correspondent, Irwin shall endorse the promissory note
and assign any security interest, both without recourse, to Broker/Correspondent.


11.         Broker/Correspondent Indemnification of Irwin. In addition to Broker/Correspondent's
repurchase obligations under Section 9, Broker/Correspondent will indemnify, defend and hold Irwin
harmless from and against any loss, damage, cost or expense, including but not limited to, reasonable
attorney's fees and expenses (a) arising out of any default by Broker/Correspondent, (b) arising out of
any act or omission of Broker/Correspondent or any employee or agent of Broker/Correspondent; (c)
arising out of Broker/Correspondent's failure to perform any of its obligations hereunder; or (d) arising
out of or in connection with falsity, incorrectness, incompleteness or breach in any material respect of
any representation or warranty made by Broker/Correspondent herein.


OTHER PROVISIONS


12.         Prepayment Refund. For each loan which is paid in full by the borrower for any reason during
the ninety (90) day period ("Recapture Period") commencing on the later to occur of (i) the funding of
the loan or (ii) the assignment and delivery of the loan to Irwin, except for a loan paid in full by a
refinance by Irwin (excluding any Loan refinanced by Broker/Correspondent), Irwin reserves the right to
require Broker/Correspondent to refund to Irwin all fees paid to Broker/Correspondent in connection
with the origination of such loan, including but not limited to, arty yield spread premium, service release
fee or other amounts previously paid by Irwin to Broker/Correspondent for the Loan.
Broker/Correspondent shall also pay to Irwin all tosses, costs, damages and expenses, including attorney
fees incurred by Irwin in connection with such prepayment. Broker/Correspondent covenants, represents
and warrants that it shall remit the amount of such Prepayment Refund within ten days of demand.
Broker/Correspondent's failure to return such fees as required hereunder shall be deemed a default and
Irwin may charge any such amount due from Broker/Correspondent against compensation due, but not
yet paid to Broker/Correspondent.


13.         Loan Fraud. The submission of a loan application to Irwin containing false or misrepresented
information is a federal crime and Irwin cooperates with government agencies and law enforcement
officials to pursue parties who provide false information or participate in fraudulent activity. The
Following are examples of activities which could lead to such actions being taken against
Broker/Correspondent; (a) submission of inaccurate information, including false statements on loan
applications and falsification of documents purporting to substantiate credit, employment, deposit
balances, ownership of real property and other asset information, or raise personal information
concerning the borrower; (b) forgery of documents; (c) inaccurate representations of current occupancy
or intent to maintain required occupancy as agreed in the application and Loan closing documents: (d)
lack of due diligence or appropriate concern by Broker/Correspondent and its employees in obtaining and
ascertaining the authenticity of all documents submitted to Irwin; and (e) acceptance of information or
documentation which is known or suspected to be inaccurate, including but not limited to the concurrent
processing of multiple owner-occupied Loan applications from a single applicant, or permitting an
applicant or other interested party to assist in the processing of a Loan application.







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14.         Price Discrimination. Irwin is committed to the principles of fair lending.  Broker/
Correspondent acknowledges that Irwin cannot control or police the prices that Broker/Correspondent
charges its borrowers. Broker/Correspondent agrees that loan fees, discount points and interest rates must
be charged to all borrowers on a non-discriminatory basis without consideration of race, gender, national
origin or age. Broker/Correspondent agrees to indemnify and hold Irwin harmless from and against any
discriminatory practices employed by Broker/Correspondent or its employees and agents.


15.         No Solicitation. Loans sold to Irwin cannot be solicited by Broker/Correspondent for
prepayment, refinance or any other related products or services. For purposes of this Agreement, "solicit"
shall not be deemed to include mass advertising via television, radio, newspapers and similar forms of
communication not individually directed to specific Loan borrowers Broker/Correspondent shall use its
best efforts to prevent employees and the employees of affiliated entities from engaging directly or
indirectly in any prohibited solicitations under this Agreement.


16.         Additional Assurances: Inspection. Broker/Correspondent agrees, from time to time, upon
Irwin's request, to provide Irwin with additional evidence that Broker/Correspondent's representations
and warranties contained herein are true and correct. This may include allowing Irwin to conduct
periodic on-site audits of Broker/Correspondent's business activities related to the Agreement, including
but nor limited to all books, records and files of Broker/Correspondent pertaining or relating to any
Loans registered with Irwin. In addition, Broker/Correspondent will submit to Irwin its annual financial
statement, certified by an independent public accountant, within ninety (90) days following the end of
each fiscal year.


17.         Loans Originated by Third Parties. Irwin shall have no obligation under this Agreement to
accept any Loans from Broker/Correspondent which were originated by any entity or person other than
Broker/Correspondent, and Broker/Correspondent shall not register any Loans with Irwin that are not
originated by employees of Broker/Correspondent.


18.         Continued Employment of Broker/Correspondent's Principals.  In the event that the
Principal or Principals of Broker/Correspondent who negotiate this Agreement with Irwin discontinue
their employment with Broker/Correspondent, Broker/Correspondent shall deliver immediate notice of
such event to Irwin.


19.         Notices.  Any notice or demand which is required or permitted to be given by any provision of
the Agreement shall be deemed to have been sufficiently given if either served personally or sent by
prepaid, registered or certified mail, addressed to the party at its address set forth below:


		Irwin Mortgage Corporation

9265 Counselor's Row

Indianapolis, IN 46240

Attention: Mr. Les Acree	Broker/Correspondent:

Heritage Bank of the South

P.O. Box 50728, Albany, GA 31703-0728

Attention: Lee H. Bettis








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Either party may change its address by notice to the other.


20.         Termination. This Agreement may be terminated by cither Irwin or Broker/Correspondent
without cause upon written notice addressed to the other party as provided in Section 19 above, in event
of such termination, Irwin agrees to close after termination those Loans registered by the
Broker/Correspondent prior to the date of termination. However, in the event that Irwin, in its sole
judgment and discretion, reasonably determines that there has been fraud or misrepresentation
concerning Loans registered by Broker/Correspondent, or any other material breach by
Broker/Correspondent of this Agreement, Irwin reserves the right to cancel this Agreement immediately
and without prior notice, and to refuse to close any Loans registered by the Broker/Correspondent prior
to such termination.. All other rights and obligations of the parties hereto which arose prior to
termination shall survive termination.


21.         Irwin Manual. All provisions of the Irwin Wholesale Lending Manual are incorporated by
reference into this Agreement and shall be binding upon both parties. However, by its terms, the Manual
may be amended or supplemented by Irwin from time to time, as is reasonably necessary to improve the
operation and efficiency thereof Written notice of such amendment or supplement Will be given by Irwin
to Broker/Correspondent before such amendment or supplement takes effect.


22.         Relationship of the Parties. By virtue of this Agreement, it is agreed that Irwin and Broker/Correspondent shall not be considered to be partners or joint venturers, and that Broker/Correspondent is not to act as the agent of Irwin in origination, processing or performance of any other obligation, and shall, act in all matters hereunder as an independent contractor.


23.         Miscellaneous. No assignment, transfer or other alienation of this Agreement by
Broker/Correspondent shall be effective without the prior written consent of Irwin. This Agreement is
established for the sole benefit of Irwin and Broker/Correspondent, and no party other than Irwin and
Broker/Correspondent shall be entitled to the benefit thereof. No waiver by Irwin of any term or
condition hereof shall impair any right of Irwin or be construed as a waiver of any term or condition in
the future. There are no promises or inducements by Irwin to Broker/Correspondent not contained herein,
and this Agreement cannot be amended or modified orally, and no provision of this Agreement may be
waived or amended except in writing executed by Irwin and Broker/Correspondent. Such a written
waiver or amendment must expressly reference this Agreement. All of the covenants, agreements,
representations and warranties made herein by the parties hereto shall suffice and continue in effect after
the termination of the Agreement or the consummation of the transactions contemplated hereby. This
Agreement supersedes any and all prior written or oral agreements between Broker/Correspondent and
Irwin as to the subject matter of this Agreement This Agreement may be executed in counterparts, all of
which taken together shall constitute one and the same instrument. This Agreement has been entered into
and shall be governed and construed in, accordance with the laws of the State of Indiana.


IN WITNESS WHEREOF, the undersigned parties have execute4 this Agreement as of the date herein
above written:


	IRWIN MORTGAGE CORPORATION


	BROKER/CORRESPONDENT



	By:	/s/ Randall G. Chumley
	By:	/s/ Lee H. Bettis

	Printed Name:	Randall G. Chumley
	Printed Name:	Lee H. Bettis

	Its:	First Vice President
	Its:	President/CEO









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IRWIN MORTGAGE LOAN FRAUD

ZERO TOLERANCE STATEMENT


All approved Broker/Correspondents must be aware that they bear the responsibility far all incidents of
fraud for loans originated by their employees. The Broker/Correspondent is responsible for the content
and quality of each application taken and each loan submitted to Irwin Mortgage Corporation.


THE SUBMISSION OF A LOAN APPLICATION CONTAINING

FALSE INFORMATION IS A CRIME!


Types of Loan Fraud


	1)	Submission of inaccurate information, including false statements on loan application(s) and
falsification of documents purporting to substantiate credit, employment, deposit and asset
information, personal information including identity, ownership/non-ownership of real property,
etc.


	2)	Forgery of partially or predominantly accurate information.


	3)	Incorrect statements regarding current occupancy or intent to maintain minimum continuing
occupancy as stated in the security instrument.


	4)	Lack of due diligence by Broker/Correspondent/loan officer/interviewer/processor, including
failure to obtain all information required by the application and failure to request further
information as dictated by Borrower's responses to other questions.


	5)	Unquestioned acceptance of information or documentation which is known, should be known, or
should be suspected to be inaccurate.



		A.	Simultaneous or consecutive processing of multiple owner-occupied loans from one
applicant supplying different information on each application.





		B.	Allowing an applicant or interested third-party to "assist with the processing of the loan."



	6)	Broker/Correspondent's non-disclosure of relevant information.



Consequences


The effects of Loan Fraud are costly to all parties involved. Irwin Mortgage Corporation stands behind
the quality of its loan production. Fraudulent loans cannot be sold into the secondary market and, if sold,
will require repurchase by Irwin Mortgage Corporation. Fraudulent loans damage our reputation with our
investors and mortgage insurance providers.


The price paid by those who participate in Loan Fraud is even more costly. The following is a list of a
few of the potential consequences that may be incurred:







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Consequences to Broker/Correspondent


	1)	Criminal Prosecution.


	2)	Loss of Mortgage Broker/Correspondent/Real Estate/Mortgage Banker's License.


	3)	Loss of lender access due to exchange of information, between lenders and mortgage insurance
companies including submission of information to investors (FHLMC, FNMA, police agencies,
and the Department of Banking and Finance).


	4)	Civil action by Irwin Mortgage Corporation.


	5)	Civil action by applicant/borrower or other parties to the transaction.


	6)	Loss of approval status with Irwin Mortgage Corporation.



Consequences to Borrower


	1)	Acceleration of debt (FNMA/FHLMC Mortgage/Deed of Trust,). Item #6 states: "Borrower shall
also be in default if Borrower. during the loan application process, gave materially false or
inaccurate information or statements to lender (or failed to provide lender with any material
information) in connection with the loan evidenced by the Note, including, but not limited to,
representations concerning Borrower's occupancy of the Property as a principal residence."



Note:	Foreclosure action will not allow the Borrower the benefit of reinstatement in order to cure
the default. The Borrower must pay off the loan In full prior to the sale date of the property.


	2)	Criminal prosecution.


	3)	Civil action by Irwin Mortgage Corporation.


	4)	Civil action by other parties to the transaction, such as seller or real estate
agent/Broker/Correspondent.


	5)	Employment termination


	6)	Loss of professional license, if any.


	7)	Adverse effect on credit history.



I have read the following and understand Irwin Mortgage Corporation's position on Loan Fraud.


	BROKER/CORRESPONDENT



	By:	/s/ Lee H. Bettis

	Printed Name:	Lee H. Bettis

	Its:	President/CEO









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IRWIN MORTGAGE CORPORATION WHOLESALE PRICING POLICY

REVISED October 20, 2000


	I.	Products:
	 	
		FHA
		VA
		FNMA/FHLMC Conventional Conforming
		IMC Jumbo - Fixed Rate
		RFC Expanded Product
		Value Plus Products
	 
		A.	Establishing Prices - Pricing will be established each business day that the IMC home
office is open for business.
	 	
		B.	Loan Classification - All loans will be classified as wither new business, floats or
refinances.
	 
			1)	New Business - any non-refinance transaction where application is dated no
earlier than the business day of the established price.
	 
			2)	Floats - any non-refinance transaction where application is dated earlier than
the business day of the established price.
	 
			3)	Refinance - all refinance transactions regardless of the application date.
	 
		C.	Price Expiration - Prices quoted will expire per the semi-annual time change memos.
(Julian Calendar)
	 
		D.	Pricing Changes - All loan classifications are subject to a price change at any point
during the day.  Pricing changes could occur for market movements either up or down.
Irwin Mortgage will send a message via the web site www.irwinwholesale.com) and
by fax to notify users of a price change.  It is th responsibility of each correspondent
to notify their personnel of a price change.
	 
		E.	Loan Lock-in Procedures - all loans must be locked prior to the cut off time to be a
valid  lock.  (See semi-annual time change memo for price expiration times.)  Lock-ins
input after the cutoff time will be subject to that new day's price.
	 
			1)	Applications - Loan applications must be taken or scheduled to be taken
within one (1) business day of loan lock-in.
	 
			2)	Exceptions - Any special quotes received from Marketing for rates prior to the
appropriate cutoff time.
	 
		F.	Lock Lengths - Refer to daily price sheet for specific lock lengths available for each
product type.
	 
		G.	Expiration Dates - the expiration date of a loan lock-in will be established from date
of loan lock-in.  The initial expiration will be calculated based upon the number of
days of the lock-in.  If this falls on a weekend or IMC holiday, the loan will expire on
the following business day. 








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			1)	Refinance Disbursement Date - all refinances must close on or before the
expiration date and must disburse within 5 days of loan closing.  This allows a
check to be issued after the Right-of-Recission period.  As an example, a 15
day lock on the system will look like a 20 day lock.  The loan must still close
on or before the 15 day lock expiration (rate sheet).  Loans closing after the
expiration date and/or loans disbursing more than 5 days past the expiration
date would be required to re-lock prior to closing/disbursement.
	 
			2)	Purchase Disbursement Date - all purchase transactions must have funds
disbursed on or before the expiration date, but are not yet disbursed as of the
expiration date, will be considered an expired loan and would be required to
re-lock prior to closing. 
	 	
		H.	Lock-in Changes - while a loan is active (not expired) changes to the product
type/loan and/or interest rate are available for FNMA/FHLMA/GNMA programs only
as follows:
	





	Current Lock
	Request Lock
	New Price

	 		
	(1) 	Fixed

(1)	ARM





	Fixed
ARM

	* 	Reference lock price from original
blue dates price sheet


	(2) 	ARM

(2)	Fixed	Fixed

ARM	* 	the worst price by comparison of
the original price and current price





		I.	Extensions - Active locks may be extended one time based upon the following schedule:




	Extension Requested 	Cost
		
	1-5 days	0.125
	6-15 days	0.250 
	16-30 days	0.500




		J.	Expired Re-locks - once a loan has expired it may be re-locked for up to 15 days at the
greater of the original blue book or market blue book the date of the re-lock.  In cases of
a market re-lock, 15-day lock terms will-relock at 15 day.  Original 30-180 day lock
terms will be re-locked at 30-day market prices.  Relocks greater than 15 days may be
available due to extenuating circumstances on a case-by-case basis.  Is a loan has been
expired for 60 days or  more, Marketing will consider the loan to be new and can re-lock
at current market prices (regardless if market is higher or lower than the original lock).


		K.	Temporary Escrow Buydown - for government 2-1 escrow buydowns quotes on the rate
 sheet will include the actual cost of a 2-1 EBD and the associated discounts.  Please call
for quotes on the availability of buydowns for conventional products.


		L.	Second Homes - certain conventional programs allow second homes at certain LTV's.
Please refer to the appropriate product guide for availability and/or pricing adjustments.








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		M.	Property/Borrower Change - lock-ins are only valid for the original property/borrower.
If there is a change in either, the current lock-in must be canceled and a new lock-in will
be established for the new loan at the current market pricing.


	 	N.	Cancellations - loans should be canceled via the computer at the branch level as soon as
the branch originator becomes aware of the cancellation.  If a loan is canceled and for
whatever reason becomes active again, the lock is subject to the higher of market or
original lock.


		O.	Escrows - all loan quotes are based upon escrows for taxes and insurance being
collected.  Conventional loans with LTV's less than or equal to 80% are available for an
escrow waiver at a cost of .25 basis points.


		P.	Lender paid mortgage insurance - refer to daily price sheet for product availability and
pricing.  Subject to same pricing policy as standard conventional conforming product.

         -         refer to product guide for program information


		Q	Rural Housing -

         -         Check rate sheet for product availability


         -         Reference daily price sheets for quotes, subject to same pricing policy as
underlying product type


         -         Reference product guide for program information


         -         Check with local Farmer Home Administration office for training and program
dollar allocations


         -         Pricing does not warrant the availability of Farmer's money


	II.	All other programs:
		Private Investor Programs
		


		A.	All pricing and lock-in procedures will be established via the various product guides for
the appropriate product/investor








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