From the Desk of Bay Equity President Brett McGovern

Dear Bay Equity Wholesale Client,

RE: RETAIL MORTGAGE BANKING PLATFORM

We have dedicated ourselves to helping loan originators grow their business and do it more profitably. What we have run into over the last few years is a challenging environment that has made it more difficult for mortgage originators to operate. On April 1st, new Federal rules take effect that will greatly change the landscape of our industry. Bay Equity is offering Brokers an option to "Thrive - Instead of Survive" the implementation of the revised Truth in Lending Act (TILA) - Reg Z 12CFR226 - Loan Officer Compensation.

In keeping with our corporate vision and mission, we felt it was time to develop a program that could help solve many of the burdens that you are facing. New loan officer compensation rules combined with innumerable regulatory changes are negatively impacting the way we operate as mortgage professionals. In many cases, these changes are making it harder to continue doing business as usual.

We feel we have created an alternative with our Retail Banking Platform that offers many advantages within the new rules. This new program will not effect our commitment to wholesale or our support of your wholesale business. We firmly believe wholesale continues to be a viable platform for Brokers to do business.Our new retail model is a diversification and is meant to offer our customers alternatives in this marketplace.

We would like to introduce our new retail platform to you. If you are interested in learning more about our Retail Banking Platform, please inquire with your account executive or call to discuss further.

Best regards,