AFFILIATED BUSINESS ARRANGEMENT NOTICE

This is to give notice that Pardee Homes. (“Seller”) has a business relationship with TRI Pointe Connect, LLC (“Connect”), a mortgage broker.  The business relationship referenced is that Seller indirectly owns 55% of Connect.  The remaining 45% of Connect is owned by loanDepot.com, LLC dba imortgage (“imortgage”) to whom a large percentage of Connect loans will likely be brokered.  Because of these relationships, any referral to these entities may provide Seller, its parent company and/or its affiliates with a financial or other benefit.

Set forth below is the estimated charge, or range of charges, for the settlement services listed.  You are NOT required to use the listed provider as a condition for settlement of your loan on or purchase sale or refinance of the subject property.  THERE ARE FREQUENTLY OTHER SETTLEMENT SERVICE PROVIDERS AVAILABLE WITH SIMILAR SERVICES.  YOU ARE FREE TO SHOP AROUND TO DETERMINE THAT YOU ARE RECEIVING THE BEST SERVICES AND THE BEST RATE FOR THESE SERVICES.

Connect – Mortgage Broker—Connect will not make any charges to the purchaser/borrower for its services but will receive compensation from the lenders to whom it brokers (including imortgage) of approximately 2.75% – 2.85% of the loan.  imortgage does not charge the purchaser/borrower any direct fees.  You will be charged certain third party fees for an appraisal, credit reports and additional closing costs by the escrow/title company, closing attorney and lender.  Connect and/or the applicable lender will provide you with a Loan Estimate detailing credit costs and loan terms, including closing costs.

Acknowledgement:  I/We have read this disclosure form, and understand that any referrals by Seller for the above described settlement service(s) may result in Seller and/or its affiliates receiving a financial or other benefit.

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