Loan Funding Fee Agreement - Terms & Conditions
In consideration of the efforts of ICSLoans Inc. to provide financing and facilitate the funding transaction, Borrower / Authorized Principal, hereby grants ICSLoans Inc. also referred to as “ICS” or “ICS Loans” a Commercial Lending Company, the right to secure financing for the property/project submitted online to via ICSLoans.com.
All rates, terms, and conditions are subject to lender loan underwriting and a property evaluation, which may include a BPO and/or appraisal. Terms may be restructured or negotiated at any time prior to a final Loan Commitment by Lender.
A: PRINCIPAL HEREBY AGREES AS FOLLOWS – ICS Loans Inc. is hereby contracted by Principal, an authorized borrower, managing borrower, and/or partner of the borrowing entity, to secure financing for the described project. ICS is a correspondent lending company. ICS originates loans which are assigned or brokered to our approved Network of Lenders and investors. Lenders and investors compete to purchase and fund our loans directly through ICS, reducing rates and fees for our clients.
B: ICS LOAN FUNDING, PROCESSING & UNDERWRITING FEE: Borrower agrees to pay to Lender and/or its affiliates point(s) (a % of the gross loan amount), due and payable at escrow closing once the loan has been successfully funded. ICS charges a Loan Funding, Processing & Underwriting fee, paid to ICS at closing. Fees may be paid from loan proceeds. An agreed upon Loan Funding Fee paid to ICS by Borrower at closing will be outlined within a final Letter of Intent (Loan Offer) from the chosen funding lender. An upfront Non-Refundable Loan Processing & Underwriting Fee of $450.00 is required upon acceptance of this Loan Funding Fee Agreement between ICS and Borrower. The Loan Processing & Underwriting Fee covers due diligence costs including but not limited to an internal ICS property valuation analysis, title and lien reports, property operating income analysis, borrower background review, market analysis, property tax assessment review, loan term structuring, loan packaging, and loan pricing. The Loan Processing and Underwriting Fee is due upon acceptance of the Funding Fee Agreement by Principal/Borrower and will be billed via credit card or ACH billing.
THIRD PARTY FEES: Additional underwriting costs including legal fees, valuation analysis, 3rd party appraisal, BPO, escrow costs, title insurance costs, inspection costs, associate lender/investor fees, and other related expenses vary, are not included within the ICS Funding Fee, and must be prepaid by Borrower if applicable. 3rd party fees vary by location and property type. Additional investor and/or lender points may be charged.
TAXES AND INSURANCE: Taxes and assessments shall be current at closing and an annual insurance policy in place. Lender shall withhold at closing an escrow reserve for taxes, insurance and assessments and require a monthly payment of approximately one twelfth of the annual obligation providing sufficient funds to pay these items as they become due.
LEGAL REPRESENTATION: Borrower acknowledges that he/she is advised to engage appropriate legal representation for this transaction to review loan documents and prepare an opinion letter addressed to the Lender which will at a minimum address the validity and enforceability of the loan documents and the authority of the Borrowing entity to sign and complete the transaction.
DUE DILIGENCE: Borrower acknowledges that ICS Loans Inc. must perform “DUE DILIGENCE” procedures. Therefore, this agreement is not to be construed as a commitment to lend money. This agreement is intended as a summary of the terms and conditions under which ICS is authorized by Borrower to provide financing for the project, and omits specific terms and conditions, which will be included in the final Lender loan documents.
FINANCING RELATIONSHIP: Principal, who is an authorized borrower, managing borrower, and/or partner of the borrowing entity, authorizes ICS Loans Inc., its affiliates, and any other ICS Commercial Lending Professionals, Underwriters, and Loan Processors appointed by ICS Loans to arrange financing for the described project. This Agreement creates an exclusive financing arrangement relationship between ICS Loans and Principal, and no other person(s) or companies not a party to this agreement. Principal agrees ICS Loans Inc. is authorized to provide financing directly, assign, or broker the loan financing transaction to any and all private, institutional, and corporate capital sources for the transaction, including submission of loan applications and documents to prospective lenders on Principal’s behalf, and to negotiate on Principal’s behalf all funding terms, fees, interest rates, and arrange escrow closing.
PRINCIPAL RESPONSIBILITIES: Principal agrees to provide the financial and property information requested by ICS Loans necessary to underwrite the loan, which may include, but not limited to tax returns, property operating statements, rent rolls, financial statements, property photos, and other documents necessary to attain funding approval.
NO GUARANTEE OF FUNDING SUCCESS: ICS Loans agrees to use reasonable commercial efforts to provide financing for the Project. ICS Loans does not guarantee that financing can or will be obtained. Principal agrees that ICS Loans and those Commercial Lending Professionals, Underwriters, and Loan Processors appointed by ICS Loans will not be liable to Principal for any losses or damages whatsoever in the event financing is not obtained.
PAYMENT FROM CLOSING PROCEEDS: Principal agrees that ICS Loans has the right to require that payment of the funding fee, processing, and underwriting fees be made directly from the borrower and/or out of the funding proceeds and disbursed directly from escrow/closing or the capital source, and Principal hereby irrevocably authorize ICS Loans to issue instructions to the Escrow/Closing Holder and/or capital source to pay the funding fee, processing, and underwriting fees directly to ICS Loans as outlined within this agreement. Principal further agrees that ICS Loans may use this executed agreement as a demand in escrow/closing, directing Escrow/Closing Holder and/or capital source to pay and remit the fee to ICS Loans. In the event any portion of the Loan Funding Fee, Processing, Underwriting, and/or other Fees are not able to be paid directly from closing/escrow for any reason, Borrower agrees that those payments will be made to ICS Loans directly within one (1) business day of escrow closing via wire transfer or ACH deposit for disbursement to ICS Loans.
DURATION OF AGREEMENT: This agreement shall be valid for a period of 90 days from date hereof. Unless canceled in writing by Principal at the end of said period, this agreement will automatically be renewed month-to-month until canceled by either party given 30 days written notice. In the event project funding is provided directly by ICS Loans Inc., affiliates, or a Lender or Investor brought forth by ICS Loans directly or indirectly during the term of this agreement or within 6 months following agreement expiration and/or termination, or the project is funded through any other 3rd party during the term of this agreement not a party to this agreement, Principal agrees to pay ICS Loans a LOAN FUNDING FEE, as outlined in Section B of this agreement. The Funding Fee does not include any underwriting, loan processing, additional loan fees or other fees allocated to any other 3rd party Bank, Lender, or other party (if involved in transaction). GOVERNED BY LAWS OF WASHINGTON (STATE) – All services rendered to Principal (no matter what state the Project is located in) are provided within the state and conform with all state regulations regarding commercial real estate financing. The funding fees and charges paid to us by the Principal will be paid as outlined within this agreement, regardless of our involvement in the funding process as long as the project is financed. This agreement shall be governed by and construed in accordance with the laws of the state noted above.
MEDIATION OF DISPUTES: In the event any dispute or controversy arises with respect to the subject matter of this agreement or the transaction contemplated herein (including, but not limited to, the party’s rights with respect to payment of commissions as provided herein) which the parties are unable to resolve among themselves after a good faith effort to do so, at the request of either party. All parties to this agreement agree to attempt to resolve such dispute or controversy through mediation in the state of Washington pursuant to a mediation conducted by a mediator appointed by the American Arbitration Association in accordance with its mediation rules.
ARBITRATION OF DISPUTES: In the event any dispute or controversy arises with respect to the subject matter of this agreement or the transaction contemplated herein (including, but not limited to, the parties rights with respect to payment of funding fees as provided herein) that is not resolved as provided in paragraph “Mediation of Disputes”, Principal and ICS Loans agree that such dispute or controversy shall be settled by final, binding arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration Association, and judgment upon the award rendered by the arbitrator may be entered in any court that has jurisdiction thereof.
TERMINATION: ICS may terminate this proposal if not accepted by Borrower within 3 business days of the date of this agreement. AGREEMENTS OR ORAL COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR TO FOREBEAR FROM ENFORCING REPAYMENT OF A DEBT ARE NOT ENFORCEABLE.
CREDIT INFORMATION CONSENT I hereby authorize ICS Loans and its designated agents, lender affiliates and representatives to conduct a review of my background causing a consumer report and/or an investigative consumer report to be generated for underwriting/extension of credit purposes. I understand that the scope of such reports may include, but is not limited to, the following areas: Verification of social security number; current and previous residences; employment history including all personnel files; education including transcripts; character references; credit history and reports; criminal history records from any criminal justice agency in any or all federal, state and county jurisdictions; birth records; motor vehicle records to include traffic citations and registration; and any other public records or interviews with third parties relative to my character, general reputation, personal characteristics or mode of living. I further authorize any individual, firm, company, corporation, or public agency to divulge any and all information, verbal or written, pertaining to me ICS Loans or its agents. I further authorize the complete release of any records or data pertaining to me which the individual, firm, company, corporation or public agency may have, to include information received from other sources. I understand this authorization automatically expires 90 days from the date executed below, and that I have the right to revoke this authorization at any time provided I do so in writing.