Mortgage 100^® and Parent Power^® Loan Process

Mortgage 100
Mortgage 100^® is an innovative home financing product that allows you to take advantage of 100% financing and no down payment with a pledge of securities.

Parent Power
Parent Power^® is for homebuyers who lack enough eligible securities, but have parents or sponsors who are willing to pledge eligible securities allowing them to finance up to 100% of the purchase price of their home.

To give you a better understanding of how the process works, take a moment to review the steps that will need to be taken to set up your Mortgage 100^®/ Parent Power^® loan.

1. Mortgage 100^® or Parent Power^® loan is registered with a Loan Consultant.
2. To determine the size of the pledge, the loan is reviewed by underwriting after it has been registered.
3. After the pledge amount has been determined and the loan is set up, it is assigned to a Securities Collateral Analyst who works with a Loan Processor to prepare the mortgage file.
4. Once assigned, the Securities Collateral Analyst will determine the minimum setup and maintenance values after reviewing account holdings for quality, liquidity, and diversity.
5. Upon conditional approval of the assets, the Securities Collateral Analyst will contact the appropriate branch office personnel with instructions to establish and fund an MLCC pledge account.
6. As soon as the mortgage has received final approval, the Securities Collateral Analyst will again contact the branch office with the final pledge funding figures.
7. Once funding is complete, the Securities Collateral Analyst will prepare the documents for the closing package that will be signed at closing (Parent Power^® documents must be signed and returned prior to mortgage closing). The account is monitored to ensure minimum funding is maintained.

These steps will allow you to continue to invest in eligible assets while achieving a home financing solution.

Merrill Lynch's Mortgage 100^®/Parent Power^® programs require the pledge of eligible securities owned by an individual and maintained in a Merrill Lynch, Pierce, Fenner & Smith, Incorporated brokerage account. Member, Securities Investor Protection Corporation (SIPC). Mortgage 100^®/Parent Power^® may not be suitable for everyone and a default on your mortgage could result in both the loss of your home and your securities. Should the value of the securities pledged as collateral decrease below a certain level (as specified within the loan documents), the deposit of additional assets and/or liquidation of assets may be required. Merrill Lynch may liquidate some or all of the securities in the account without contacting you. You are not entitled to an extension of time to meet a collateral call or choose which securities in your account are sold to meet the collateral call. Liquidation may result in adverse tax consequences. Mortgage interest may not be deductible if tax-exempt obligations are pledged as additional collateral. Trading within the brokerage account for the 100% financing programs is subject to restrictions.