HANOVER MORTGAGE COMPANY PRIVACY STATEMENT

Your privacy is important to Hanover Mortgage Company (HMC). We hold your personal and transactional information in the strictest confidence. Because we gather certain nonpublic personal information about you, we want you to know how we treat personal and confidential information about you.

We have implemented privacy policies that are consistent with applicable law and regulatory requirements. We have also adopted procedures designed to safeguard the security and confidentiality of our customers' records and information which are consistent with applicable law and regulatory requirements.

By using the term nonpublic personal information, we mean personally identifiable financial information that is not available publicly and that we collect in connection with your loan application. It includes information that you give us in order to obtain a loan, such as name, address, income, Social Security number and information on an application and information that we obtain from others in connection with your application, such as information from a credit report.

Our Privacy Policy applies both to current customers as well as former customers.

What Information do we collect from you?

Hanover Mortgage Company collects nonpublic personal information about you from the following sources:

• Information that we receive from you on applications, forms and other information that you provide to us, whether in writing, in person, by telephone, electronically or by any other means, such as your name, date of birth, mailing address, e-mail address, social security number, employment information, assets and income.
• Information about your transactions with us and with others, such as your account balances, payment history and parties to transactions.
• Information that we receive from consumer reporting agencies and others, such as your creditworthiness and credit history.

How Hanover Mortgage Company Protects your Personal Information

• We do not disclose any nonpublic personal information about you to anyone, except as permitted or required by law.
• We restrict access to your personal and account information to those employees who need to know that information to provide products or services to you.
• We maintain physical, electronic and procedural safeguards that comply with federal regulations to guard your nonpublic personal information.

To whom do we disclose your nonpublic personal information?

Except as required or permitted by law, we do not disclose any nonpublic personal information about our customers or former customers to anyone.

We disclose nonpublic personal information that we collect about you, as described above, to financial service providers such as Mortgage Lender, settlement agents (escrow companies) and insurance agents or companies.

We also disclose nonpublic personal information that we receive from you on applications or other forms, such as your name and address, to companies that perform marketing services on our behalf.

These companies are precluded from releasing any information about you to outside sources and are held accountable for securing the confidentiality of the information.

Credit Reports

We utilize credit bureau reports in order to evaluate our customers' creditworthiness and to protect our customers from fraudulent conduct. When you submit an application to us, you are expressly authorizing us to obtain a credit report about you. This report contains information pertaining to your credit history. This information will be used only in connection with an evaluation of your creditworthiness.

Your Right to Opt-Out of Disclosure of Credit Eligibility Information to HMC Corporate Affiliates and/or Non-Public Personal Information to Non-Affiliated Third Parties

We respect your choices related to privacy. You may tell us not to share credit eligibility information with HMC corporate affiliates and/or not to share non-public personal information with non-affiliated third parties. If you wish to opt out of such information sharing, please inform us as follows:

• Call us toll-free at 1-800-325-1309;
• Send a letter in an envelope addressed to Hanover Mortgage Company, Attn: Opt-Out Notification, 2522 Chambers Road, Tustin, CA 92780. Please include your full name, Social Security Number, loan number, address and telephone number.

Please be advised that your opt-out will take effect as soon as reasonably practicable.

Note: Even if you exercise your right to opt out as discussed above, HMC may share information about you with its corporate affiliates and with non-affiliated third parties as permitted by law. For example, corporate affiliates are permitted to share with each other information about their respective transactions and experiences with you (such as your account balance and your payment practices).

Employee Access to Customer Information and Security Procedures

HMC understands that the protection of your non-public personal information is of the utmost importance. Therefore, HMC maintains physical, electronic and procedural safeguards in order to maintain the security, confidentiality and integrity of your non-public personal information. We continually review our policies and procedures, monitor our computer networks, and test our security to ensure the safety of customer information. HMC restricts access to your non-public personal information to only those employees who have a legitimate business reason to know such information, and we educate our employees about the importance of confidentiality and customer privacy. Employees who violate HMC's Privacy Policy will be subject to disciplinary action which may include immediate termination of employment.

Quality Assurance Notice

To ensure that our customers receive quality service, HMC randomly selects telephone calls for monitoring. These telephone calls, between our customers and employees, are evaluated by supervisors in order to guarantee that prompt, consistent assistance and accurate information is delivered in a professional manner.

USA PATRIOT ACT Notice

To help the government fight the funding of terrorism and money laundering activities, federal law requires all financial institutions to obtain, verify and record information that identifies each person who obtains an extension of credit.

What this means for you:

When you submit an application for credit, HMC is required to ask for your name, date of birth, residential address, mailing address (if different), social security number and other information that will allow us to identify you. HMC may also ask to see your driver's license or other identifying documents and use resources such as credit bureaus or other means to verify this identity information.

How You Can Help Protect Your Privacy

You can help protect the confidentiality of your personal information and your account with us by following a few basic guidelines. Remember that HMC will never call and ask you for personal account information that we already know. If you call us, we will ask you to confirm personal information to establish your identity before we release information about your account. Contact us at 1-800-325-1309 to report any unusual or suspicious request for confidential information from someone who claims to be an HMC employee. If you receive one of these requests, ask the caller for their name and telephone number, hang up and call HMC to confirm the identity of the caller. Never give out account information, credit card or social security numbers, mother's maiden name or other personal information to someone you do not know, unless you initiate the contact. Be sure you receive and review your account statements on a timely basis. Fraud can involve attempts to change your address so you never see the fraudulent transactions on your account statement. Make sure that you have authorized all the charges made to your account and report any discrepancies. Visit the federal government's website www.consumer.gov to learn more about privacy, fraud and identity theft.

Changes to this Privacy Statement

From time to time, we will update this Privacy Statement to reflect changes in our policies and practices. If we do so, you will receive written notification of any significant changes.

Contacting Us

If you have any questions about this Privacy Statement, please contact us.

(714) 838-1474
Hanover Mortgage Company
2522 Chambers Road
Tustin, CA 92780