Residential Solar FinanceLeverage existing mortgage solutions to deliver better finance options for your clients

2On the Call TodayMeet our panel!

RON NEWTONIntelligen CEO

20 Years in Residential and Commercial Lending and HR

Former Owner of MacClair Mortgage

Serial Entrepreneur

ERIC MERUELOPacific Union Financial

CPA

30 Years in the Mortgage Industry

Executive and Management level

experience at banks like HFC, Household,

and Wells Fargo

ETHAN DESOTAHost - Intelligen

2nd Generation Licensed Contractor,

NABCEP Certified

Advisor and/or Developer on over

1,000 Solar Projects

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● Partner with a professional financier who will do the work of getting the client financed for you

● Increase your client’s confidence in your professionalism and capacity

● Better interest rates, longer terms, lower payments, lower costs to you - Get more projects to cash-flow

● Interest is tax deductible

● Easier to sell the home in the future

5 Benefits of using a Mortgage for Solar Finance

Why MortgagesIs a Residential Mortgage Better?

Mortgages are for all of the United States

70%of the US does not have incentives

Residential Finance Risks

• Time: Solar finance takes time from internal staff and requires additional internal processes that is not recapturable in the cost of the project.

• Money: Residential solar finance has both an interest cost of 4 - 11% and a funding fee cost that ranges from 4 to 15% of the project cost. Higher interest rates brings resistance from borrowers and fees add to the cost of installing the project.

• Customer Service: Most funding strategies require placement of a UCC filing on the home. This continues to be an issue when selling homes in the residential market. Traditional Solar funding strategies also do not use finance professionals who are highly motivated to deliver exceptional customer service.

• Credit: Many don’t fit the parameters of Solar funding

Benefits of Funding Solar with a Mortgage

• Time: All details are handled by a team dedicated to getting the home and solar refinanced with the right product.

• Money: There is no funding fee and the rates are competitive with terms up to 30 years. Solar makes complete sense in most states – even without incentives.

• Customer Service: No UCC filing on the home – the solar is integral to the value of the mortgage on the home. You partner with a real finance professional who takes care of you and your customer

• Credit: Lower credit hurdles and less in interest penalties for lower thresholds

A Look at the Numbers

Standard Solar Offer

• 10 kW Project• $32,500 Cost• 7% at 10 Years• $377.50 Monthly Payment• $1,625 - $4,875 (5-15% Fee to

the Developer)• UCC Fixture Filing• Available only in draws• Requires $.28 of incentives and

net metering after financing (subtract the ITC from finance)

Mortgage Solar Offer

• 10 kW Project• $30,875 Cost (no Funding Fee

to developer)• 3-6% at 30 Years• $147.40 Monthly Payment (+/-)• No UCC Fixture Filing• Available immediately if home

has room in the Appraisal• Cash Flow Positive down to $.11

without incentives after subtracting ITC from financing

You are Here

Where we are (now)

• Ability to use a large number of standard finance products from construction products like a 203k to VA, FHA, and Fannie and Freddie products

• Best suited for homes with 75% current Loan to Value or less

Where we are going (future)

• Specific solar and energy based mortgage products

• Ability to exceed appraised values of homes when calculating the effects of energy solutions

Let’s Welcome Your Buyers Home Together

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Presenter: FirstName LastName

NMLS #2221

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You know the value of homeownership. And you want to share that with others.

You need a partner who shares your goals and understands the marketplace.

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WE SHARE YOUR GOALS

ABOUT US 10

Pacific Union at a GlanceFounded in 2004, Pacific Union began as a contrarian move, reaching out to a traditionally

underserved market – and we still go against the grain, seeking out people who aren’t satisfied with the status quo. Smart, innovative, passionate people who want to help more homebuyers

find the home of their dreams. Are you the kind of business partner we’re looking for?

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A mortgage experience that’s all about your customers. We believe getting a home loan shouldn’t be a process.

It should be one of the best day of your customer’s life.

ABOUT US 11

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At Pacific Union, we believe homeownership matters. Your customer won’t be a number on a balance sheet with us, because they’re the reason we do what we do. Join the Pacific Union experience and

ditch the process. See what it’s like when a mortgage company puts your customer first.

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10Reasons to work with

Pacific Union Financial

ABOUT US

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We are a full service mortgage lender.

As a direct lender to Fannie Mae & Freddie Mac, and a Ginnie Mae direct servicer, we offer a wide variety of products and competitive rates.

2 We cover the map.

From 49 licensed states to 40+ branch locations and four fulfillment centers, we cover the country. Most importantly, we’re adding more coverage all the time. It’s all part of our mission to create the best customer experience possible.

4 Stability

Our record of proven strength, integrity and success speaks for itself. We were founded back in 2004, and when the housing market crashed, we didn’t.

3 Underwriting Philosophy

We’re able to offer minimal overlays on compliant loans. Our underwriters know and understand our business. Share our sense of urgency. Our philosophy is to be as flexible and supportive as possible.

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5 7 Our Team Structure

Each of our fulfillment teams is composed of processors, underwriters, closers and funders located in regional processing centers across the country. Instead of customer loans going into a national queue, our Loan Officers work with the same team again and again. Borrowers won’t get lost in the shuffle.

Experienced

We originate and purchase residential mortgage loans through Retail, Wholesale, and Correspondent Lending channels, in addition to a $23 Billion portfolio.

8Growth

Our people are the reason we’ve grown year-over-year since 2004. And the reason we’ll keep growing. Don’t miss out on growing your business with us.

6 White Glove Service

We offer white glove service for borrowers with best to bruised credit. You’re in the business of opening doors for your customers -- and we’re in the business of helping you succeed.

ABOUT US

9In-House Servicing

Unlike some companies, we service our loans in-house. That’s not to say we don’t sometimes sell loans, but borrowers aren’t just passed along carelessly.

10Our Business Partners

We’re one of the Top 25 Broker Channels in the US and one of the Top 15 Correspondent Lenders in the market by volume. We strive to work as hard for our business partners as we do for our people and our borrowers.

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15ABOUT US

Ratings as of December 31, 2016.

VA

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Government Loans: VAOur current military men and women, along with our veterans, deserve the best. Pacific Union has the products

to make sure they get it. Benefits and features of our VA

loan programs include:

• Minimum credit score: 560 (with the exception of VA

IRRRL transactions)

• IRRRL: Non-Pacific Union Services - Up to 130% LTV

• Pacific Union Serviced – Unlimited LTV

• Cash-out up to 100% LTV

• Manual Underwrites

• Fixed Rate and ARM available

• Escrow Holdback allowed

• Loan amounts up to $1,200,000

• No monthly mortgage insurance premium

*On owner-occupied purchase transactions. Not affiliated with any government

agencies, including HUD or the Department of Veteran’s Affairs.

17CONVENTIONAL

Conventional LoansWe haven’t forgotten about Conventional Loan Programs! Pacific Union conventional loan programs include:

• Fannie Mae HomeReady®

• Freddie Mac Home Possible®

• Minimum credit score: 620

• Escrow Holdback allowed

• Blended ratios allowed

• Fannie Mae DU Refi Plus

• Freddie Mac Relief Refinance - Open Access

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PROPRIETARY 18

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A Non-Agency product for those homebuyers locked out of

homeownership. The FlexKey Expanded product provides the tools you

need to give your homebuyers that little extra help to unlock the door to

the home of their dreams. We’ve widened the scope of who can get

Prime treatment.

Highlights include: • 30-year Fixed Rate – Fully Amortized

• 30-year Fixed Rate with 10-year Interest Only

• 30-year 5/1 fully amortized LIBOR ARM with 2/2/6 caps.

• Credit score minimum: 600

• Income Alternatives

• Reduced seasoning for significant derogatory credit events

• Minimum $100,000 loan amount

• Cash-out available on Primary Residence, Second Home and Investment

• Non-warrantable condos and Non-occupying co-borrowers

FlexKey Expanded

Proprietary Loan ProductsWhen we see an unmet need, we fill it.

A Non-Agency product to help homebuyers with past challenges open the

door to homeownership. FlexKey Restart was designed for borrowers with

unique financial situations, allowing us to reward those borrowers who’ve

worked hard to fix the problems they had.

Highlights include: • Credit score minimum: 560

• 30-Year Fixed Rate – Fully Amortized

• 30-Year Fixed Rate with 10-year Interest Only

• Up to 43% DTI, subject to restrictions

• Income Alternatives

• 12-month seasoning on Bankruptcy, Foreclosure, and Loss Mitigation

• Minimum $100,000 loan amount

• Cash-out available on Primary Residence, Second Home and Investment

• Non-occupying co-borrowers

FlexKey Restart

PROPRIETARY 19

Pacific PrimePacific Union offers Jumbo loan options for those situations that don’t fit into the traditional mortgage loan.Pacific Prime is our proprietary Jumbo loan product for those homebuyers

who need a mortgage loan that exceeds $424,101.

Highlights include: • 15 and 30-year Fixed Rate

• 5/1 and 7/1 ARM

• Loan amount up to $2,000,000 for Primary Residence

• Loan amount up to $1,000,000 for Second Home

• One (1) unit Primary Residence and Second Home purchase and

rate/term refinance

• Cash-out available on one (1) unit Primary Residence

• Maximum cash-out: $500,000

• Minimum 700 credit score

• Non-occupying co-borrowers allowed

• First-time homebuyers allowed

*Check with your loan office for the loan limit in your county

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We Have You CoveredPacific Union is dedicated to having mortgage options that span the spectrum and fill the gaps left by others.

We have the tools to help your homebuyers achieve the goal of homeownership.

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We want to be that partner.You deserve a partner willing to work to earn your trust.

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All information contained in this document is confidential and proprietary and may not be reproduced or disclosed to anyone not originally intended without the express written permission of Pacific Union Financial, LLC. Information contained in this document is not an approval and is provided for illustrative purposes only. Your actual financial situation maybe different and your results may vary. Pacific Union Financial, LLC, 8900 Freeport Parkway, Suite 150, Irving, TX75063,(800-809-0421), NMLS Number2221, www.nmlsconsumeraccess.org, Arizona Mortgage Banker License #BK-0923500; California, Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act, Residential Mortgage Lending Act License #4150081 and the California Finance Lender Law, Finance Lenders Law License #6053971, loans will be made pursuant to either the Residential Mortgage Lending Actor the Finance Lenders Law license; Colorado, regulated by the Division of Real Estate, check the license status of your mortgage loan originator at http://www.dora.state.co.us/real-estate/index.htm; Georgia Residential Mortgage Licensee #34038; Illinois Residential Mortgage Licensee #MB.6760895, Illinois Department of Financial and Professional Regulation, Division of Banking, James R. Thompson Center, 100W. Randolph, 9th Floor, Chicago, IL60601 (888-473-4858); Kansas Licensed Mortgage Company, License #MC. 0025142; Massachusetts Mortgage Lender, license #2221; Minnesota: This statement is not an offer to enter into an agreement. Any such offer may only be made in accordance with the requirements of Minn. Stat. § 47.206(3), (4); Mississippi, Licensed by the Mississippi Department of Banking and Consumer Finance; New Hampshire, Licensed by the New Hampshire Banking Department; New Jersey, Licensed by the N.J. Department of Banking and Insurance; Oregon Mortgage Lender License #ML-3586; Pennsylvania, Licensed by the Pennsylvania Department of Banking and Securities; Rhode Island Lender License, Rhode Island Licensed Lender; Virginia, Pacific Union Financial, LLC NMLS Number2221,(www.nmlsconsumeraccess.org). Equal Housing Opportunity. VS#RTPD-001.1-01.31.2017

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© 2017, Pacific Union Financial, LLC. All Rights Reserved

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Process for a Solar Mortgage

• Submit project metrics, homeowner contact information, and developer proposal via (this link)

• Have homeowner submit here (www.applytoeric.com)

• Pacific Union will contact the homeowner, collect an application, and give a pre-approval/approval along with a funding timeline

• Fill out the Appraisal Addendum (solar section) and submit to Intelligen

• Pacific Union will order an appraisal

• Pacific Union will notify the homeowner of a closing date

• You can begin building the solar project

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Residential Solar FinanceLeverage existing mortgage solutions to deliver better finance options for your clients