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Local Loan Company - New Account Application
A.
Purpose
____ Open New Account ____ Update Existing Account Information
B. Account Information
Name_______________________________________ SSN/Tax ID#_____________________ Birth Date__________
_______________________________________ SSN/Tax ID#_____________________ Birth Date__________
Address_______________________________________ Home Number_____________________________________
_______________________________________ Business Phone____________________________________
_______________________________________ Cell Phone________________________________________
Email_______________________________________________________
Account Type ____ Individual ____JTW/RS ____IRA ____Custodian for minor Other__________________
Name of Employer ______________________________ Years employed____ Position ________________________
Type of Business ___________________ Employer Address______________________________________________
Spouse Employer _______________________________ Years employed____ Position ________________________
Type of Business ___________________ Employer Address______________________________________________
C. Suitability Information
We must determine that each mortgage paper securities investment is suitable for you. Your accurate, complete responses
to the information requested below will help us meet this obligation and provide you better service.
Gross Income (includes Spouse)
___$0 - $49,999 ___$50,000 - $99,999 ___$100,000 - $199,999 ___$200,000 - $299,999 ___$300,000+
Net Worth (exclude home, furnishings, autos)
___$0 - $74,999 ___$75,000 - $149,000 ___$150,000 - $299,999 ___$300,000 - $499,999
___$500,000 - $999,999 ___over $1,000,000
Investment Objectives
___Liquidity ___Deferral of taxes ___Regular income with safety ___Regular income with some risk
___Long-term growth - safety important ___Long-term growth - will accept some risk to meet investment objective
___Speculative capital gains - a greater degree of risk may be tolerated
Significant Anticipated Changes
___None ___Retirment ___Divorce, separation ___Medical expenses ___Education expenses
___Sale of major asset Other_______________________________________________________
Current Income Requirements
___High current income is important
___Moderate Current income is required
___Current income is not importand. Focus on "total return" on my holdings.
Investment Horizon - (when invested funds needed)
___Short-term (1 - 4 years) ___Itermediate (4 - 9 years) ___Long-term (10 + years)
Business and Investment Experience - indicate if you have considerable knowledge or experience in:
___Investing in deeds of trust or other mortgage paper
___Real estate appraising
___Ownerhsip or operation of real estate investments
___Mortgage Lending
___Management of any business entity
___Practice of real estate or mortgage law
___Public accounting for mortgage lenders
___Other____________________________________________
Years of Investment Experience
___Less than 1 ___1-2 ___2-5 ___5-10 ___10-20 ___20+
Tax Bracket
Federal: Alternative Minimum:
Types of Property Most Comfortable Investing In
___Residential ___Commerical, income-producing ___Unimproved
Types of Borrowers Most Comfortable Lending To
___Good credit scores are important.
___Moderate credit scores are required.
___High borrower net worth is important.
___Moderate borrower net worth is required.
___Credit score and net worth not important - focus on property value.
Tolerance for Default
(indicate your tolerance for not receiving the monthly payments on your investment in the event of default)
___Low - I rely on monthly payments, do not seek to own property, and wish to avoid contributing additional funds to sell a property.
___Medium - I can tolerate 1-2 years of non-payment on some loans and am willing to contribute additional funds if needed to sell properties.
___High - I can tolerate several years of non-payment on several properties and am willing to contribute additional funds if needed to sell properties.
D. Residency
FOR INDIVIDUALS: Yes No
1. Is Washington your state of principal residence? ___ ___
2. Is your driver's license issued by Washington? ___ ___
3. Are you registered to voce in Washington? ___ ___
FOR BUSINESS ORGANIZATIONS:
1. Was the business formed in the past year? ___ ___
2. Does the business have significant activities other than investing in these securities? ___ ___
3. Are all beneficial owners residents of Washington? ___ ___
E. Notice of Investment Risks
Investing in mortgage paper securities involves a high degree of risk. These risks include:
* No trading market exists for these securities and none is anticipated to develop. Investors should be prepared
to hold their investments for an indefinite period of time.
* Many borrowers will default on their obligations to repay their loans. In this situation, investors will not receive
the periodic repayments and may need to foreclose upon and resll the property to recover investment funds. Owning
the property may expose investors to risks and reselling the property may require investors to contribute additional funds to make the property saleable or maximize resale value.
THERE ARE OTHER RISKS. INVESTORS SHOULD BE CAREFULLY CONSIDER ALL OF THE RISKS SET FORTH
IN THE OFFERING MATERIALS AND ONLY INVEST IF FINANCIALLY CAPABLE OF ASSUMING THESE RISKS.
F. Signature
I understand that the company will rely on the accuracy and completeness of my responses to the questions above, and my answers are complete and correct to the best of my knowledge and belief. I will notify the Company of any material chanes prior to any purchase of mortgage paper securities.
___________________________________________ __________________________________________________
Signature Date Spouse Signature (if applicable) Date
___________________________________________ __________________________________________________
For Business Entity Name (if applicable) Print Signatory Name, Title (if applicable)
G. Salesperson Information
Salesperson______________________________________ Date Reviewed with Customer __________________
Supervisor_______________________________________ Supervisor Initial/date_________________________
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