Privacy Statement

Respecting and protecting customer privacy is vital to our continued growth. Please read our privacy and security policy below. It will help you to understand how we protect and use your personal information when and after you obtain a home loan from us. We trust that you will better understand how we keep our customer information private and secure while using it to serve you better. The purpose of this document is to explain:

• How we protect the confidentiality of our customer information
• Who is covered by our Privacy Policy
• What information we have and where it comes from
• The kind of information we share, why we share it and with whom
• How to instruct us not to share certain information about you or not to contact you

Protecting the Confidentiality of Customer Information
At Pegasus Financial and Insurance, we take the privacy and confidentiality of customer information very seriously. To offer you the greatest advantages as a Pegasus Financial and Insurance customer, we find that sharing limited amounts of your personal information within our family of well-respected, carefully chosen business partners enables us to offer you personalized products and services at lower costs and/or much greater convenience than otherwise would be possible. Our control policies, for example, authorize access to customer information only by individuals who need access to do their work.

From time to time, we enter into agreements with other companies to provide services to us or make products and services available to you. Under these agreements, the companies may receive information about you but they must safeguard this information and they may not use it for any other purposes.

We use advanced data-encryption and storage technology to protect your sensitive personal information. We implemented extensive administrative, technical and physical safeguards and quality controls, such as:

• Setting policies and procedures for carefully handling your information
• Maintaining a database across our field offices to honor our customers privacy preferences
• Requiring third-party business partners to agree to comply with privacy laws to do business with Pegasus Financial and Insurance
• Regularly auditing our company security practices

Clearly stated policies in our employee handbook, background checks on all employees and thorough on-the-job training in confidentiality and customer privacy ensure that our employees are committed to keeping your personal information safe and secure.

Encryption
Pegasus Financial and Insurance has designed many features to let you anonymously explore our web site without revealing your identity. The only information we collect is very limited data, showing us the date, time and pages visited. This helps us to continually improve our web site and our service to you. We only ask for identifying information when you're interested in speaking with us about one of our products.

When you are asked to enter personal information on our web site, our system switches to Pegasus Home Loans. Pegasus Home Loans has the following security features that keeps your data safe:

• Sophisticated, industry-leading encryption and authentication technologies
• Website design that blocks or limits online display of customer information when not necessary to you or the transaction
• ID's and passwords to protect sensitive information.

For more information, please visit www.PegasusFNI.com or call Pegasus Financial and Insurance at (800)506-1966 and speak with our network administrator.

Who is Covered by the Privacy Policy
This Privacy Policy applies to consumers who are customers or former customers of Pegasus Financial and Insurance. SF Funding customers who receive information from us or transact business with us through the Internet are covered by the privacy policies posted on the websites they visit.

Information We Have About You
Pegasus Financial and Insurance receives information about you from various sources, including information from:

• Your requests or applications for Pegasus Financial and Insurance products or services, such as your income in a loan application
• Consumer reporting agencies (credit bureaus), such as your credit history

Information Pegasus Financial and Insurance Shares
We share information about you, as described above, to give you superior customer service, provide convenient access to all of our services and make a wider range of products available to you. We share this information in the following ways:

Sharing Information for Legal and Routine Business Reasons and for Joint Marketing.
We may disclose information we have about you as permitted by law. For example, we may share information with regulatory authorities and law enforcement officials; provide information to protect against fraud; report account activity to credit bureaus; share information with your consent and other service providers who work for us. We may also share information we have about you, as described above, with firms Pegasus Financial and Insurance hires to market products and services or with financial institutions with whom we have joint marketing agreements to provide you with offers of their financial products and services.

We use your IP address to help diagnose problems with our server, and to administer our Web site.

Our site's registration form requires that we obtain your contact information (like your name and email address), unique identifiers (like your social security number), financial information (like your account or credit card numbers), and demographic information (like your zip code, age, or income level). We use customer contact information from the registration form to send you information about our company and to contact you when necessary. Financial information that is collected is used to check your qualifications for registration and for other purposes. Unique identifiers (such as social security numbers) are collected to verify your identity and for use as account numbers in our record system. Demographic and profile data is also collected at our site. We use this data to tailor the visitor's experience at our site, showing them content that we think they might be interested in, displaying the content according to their preferences and mailing information to you regarding our company that we think will be of use to you.

Choice/Opt-Out
Our site provides users the opportunity to opt-out of receiving communications from us at the point where we request information about the visitor.

This site gives users the following options for removing their information from our database to not receive future communications or to no longer receive our service.

1. You can send email to info@pegasusfni.com
2. You can send mail to the following postal address:
   Pegasus Financial and Insurance, 2603 Main Street, Suite 600, Irvine, CA 92614
3. You can call the following telephone number: 800 506-1966

Correct/Update
This site gives users the following options for changing and modifying information previously provided.

1. Email info@pegasusfni.com
2. Visit http://www.PegasusFNI.com
3. Send mail to the following postal address:
   2603 Main Street, Suite 600, Irvine, CA 92614
   Call the following telephone number: 888-530-2800

Contacting the Web Site
If you have any questions about this privacy statement, the practices of this site, or your dealings with this Web site, you can contact

Pegasus Financial and Insurance, Inc.
info@pegasusfni.com

Copyright © 2005 Pegasus Financial and Insurance, Inc. All rights reserved.