The Company’s construction loan activities are heavily regulated. The Company’s activities are subject to the Michigan Mortgage Brokers, Lenders and Servicers Licensing Act which is monitored by the Michigan Office of Financial and Insurance Regulation. In addition, the Company is registered with the Nationwide Mortgage Licensing System as required by federal law. The Company is subject to numerous federal and state regulations which prohibit discrimination and require the disclosure of certain information to borrowers. The Company is also audited annually by an independent licensed CPA Firm.