Licensing Disclosure

Shelter Mortgage Company, LLC is a wholly-owned first tier subsidiary of Guaranty Bank, FSB. Pursuant to the Office of Thrift Supervision (OTS) regulation §560.2, federal savings associations may extend credit as authorized under federal law without regard to state laws purporting to regulate their credit activities and that state laws imposing licensing and registration requirements on federal savings associates are preempted. Further, in 57 Fed. Reg. 48,942 (October 29, 1992), all provisions of federal laws, regulations and policies of the OTS applicable to the operations of a federal savings association shall apply in the same manner and to the same extent to the operations subsidiary shall generally be consolidated and treated as a unit for the purpose of applying statutory and regulatory requirements and limitations. This principle was reaffirmed in 1996 when OTS revised it regulations on subordinate organizations (12 C.F.R. Part 559). Therefore, as a wholly-owned operating subsidiary of a federally-chartered savings association, it is not necessary for Shelter Mortgage Company, LLC to obtain state lending licenses and/or registrations. Shelter Mortgage Company, LLC is currently able to originate mortgage loans in all but the following states:

Alaska

Alabama

Hawaii

New York