Summary of PSM HOLDINGS INC

Change in Directors or Principal Officers, Financial Statements and Exhibits

Item 5.02 Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On January 14, 2012, we received the resignation of Douglas Smith as director of the Company.

On January 18, 2012, Randall C. Stevens was appointed as a director of the Company to fill the vacancy created by the resignation of Matt Lamoreux, to hold office for the unexpired term of Mr. Lamoreux. Also on January 18, James Pulsipher was appointed a director of the Company to fill the vacancy created by the resignation of Douglas Smith, to hold office for the unexpired term of Mr. Smith.

Mr. Stevens was the owner of Iowa Mortgage Professionals, Inc. ("IMP") which was acquired by us on November 1, 2011, as disclosed in our report on Form 8-K filed with the Commission on November 2, 2011, as amended and filed on January 13, 2012. Mr. Stevens, as the sole shareholder of IMP, received 1,285,714 shares of our common stock in the acquisition transaction. Also in connection with the transaction, Mr. Stevens was appointed and currently serves as a director of United Community Mortgage Crop. ("UCMC"), our subsidiary. UCMC also entered into a two-year employment agreement with Mr. Stevens to serve as Vice-President of UCMC and the Regional Manager for the Iowa branch formerly operated by IMC. The agreement provides for a base salary, production overrides from additional branches introduced to us by Mr. Stevens which have at least $3,000,000 per month in originations at the time the branch is acquired by us, and a bonus equal to 25% of the net profit earned by our Iowa office during the first 12 months of the agreement in excess of $400,000 earned by the office during such period. The employment agreement contains customary provisions included in our employment agreements.

Mr. Pulsipher was the owner of Fidelity Mortgage Company ("Fidelity") which was acquired by us on August 8, 2011, as disclosed in our report on Form 8-K filed with the Commission on August 12, 2011, as amended and filed on October 20, 2011. Mr. Pulsipher, as the principal shareholders of Fidelity, received 1,367,210 shares of our common stock, respectively, in the acquisition transaction. The acquisition agreement provided of the proposed purchase of another entity controlled by Mr. Pulsipher which owned the office building in Colorado which housed the Colorado office of Fidelity. Subsequently, the parties decided not to proceed with the proposed acquisition. Also in connection with the transaction, Mr. Pulsipher was appointed and currently serves as a director of UCMC and UCMC entered into a two-year employment agreement with Mr. Pulsipher to serve as a regional manager and as a loan officer for the Colorado branch formerly operated by Fidelity and to manage our offices located in the States of Colorado, Utah, Wyoming, Montana, North Dakota, South Dakota, and Idaho, except for legacy branches in these states. The agreement provides for a standard base salary for a loan officer, production overrides from additional branches introduced to us by Mr. Pulsipher which have at least $3,000,000 per month in originations at the time the branch is acquired by us, a management fee based on the loan volume generated by any new branches operated in the states managed by Mr. Pulsipher, and a bonus based on loan volume and 50% of the net profit earned by the Colorado office during the first 12 months of the agreement in excess of $500,000 earned by the office during such period. The employment agreement contains customary provisions included in our employment agreements. In July 2011, Mr. Pulsipher acquired 100,000 common shares and warrants to purchase 100,000 common shares for total consideration of $75,000.