Non-Conforming Program Overview

Transcription

1 Program Overview Wells Fargo Funding September 2014 Information in this presentation is a summary and is not complete. Refer to the Wells Fargo Funding Seller Guide for additional guidelines. This information is for use by mortgage professionals only and should not be distributed to or used by consumers or other third-parties. Information is accurate as of date of printing and is subject to change without notice. Wells Fargo Funding is a division of Wells Fargo Bank, N.A Wells Fargo Bank, N.A. All Rights Reserved. NMLSR ID /22/14

2 Overview Program Overview Pricing Client Responsibilities Submission using Direct Express SM Program/Product Parameters Documentation Requirements Appraisal Documentation Preferred Payment Plan SM Common Suspense Issues Important Seller Guide Sections and Reference Tools Contact Information 1

3 Program Overview Best Effort Registrations and Best Effort Locks Prior Approval underwriting only Delegated Underwriting not allowed Full documentation Client level Non-Conforming Program approval required 2

4 Pricing Review rate sheets regularly to ensure that you are: Aware of current price incentives (subject to change without notice). Factoring in all applicable adjusters. Non-Conforming incentives may be available. Contact your regional sales team for details. Your borrowers may be eligible for a.25 percent interest rate reduction on their Wells Fargo Non-Conforming mortgage if they enroll in the Preferred Payment Plan SM. More details on this subject later in this presentation. 3

5 Client Responsibilities Register and Lock loans with product type of Non-Conforming and Best Effort commitment. Ensure the loans follow the underwriting philosophy outlined in Seller Guide Section (a). Ensure the loans meet the standards outlined in the Seller Guide (particularly Section 825). Obtain all appraisal/collateral products from an authorized AMC (Clear Capital, Rels Valuation, and ServiceLink) via the designated order source (refer to Seller Guide Section and Exhibit 7). Share the final version of the appraisal with Wells Fargo Funding using the share functionality in PartnerConnect or Rels Valuation. Submit a complete and full Credit Package for Prior Approval underwriting - Use of the Loan Submission Summary/Form 1 is required. - Use of the Non-Conforming Submission Checklist is highly recommended. - Continue to include the final version of the appraisal. Deliver your Non-Conforming Closed Loan Packages using your standard process (imaging or paper) and continue to include the final version of the appraisal. 4

6 Submission using the Direct Express SM Feedback Tool Direct Express is Wells Fargo s proprietary feedback tool. This tool is utilized on all Non Conforming loans and includes a Credco or Equifax credit report pull. Direct Express analyzes certain information from the Mortgage Loan application and credit report for credit risk and eligibility requirements and provides feedback based on that assessment. Wells Fargo does not require use of the Direct Express feedback tool to obtain feedback; however, there are some key reasons why you might consider doing so. If you use the Direct Express feedback tool to pull credit, Wells Fargo will not pull a separate credit report, eliminating the chance of a discrepancy in Loan Score utilized to decision the loan. It provides you a preliminary look at potential issues or concerns with the loan. Important Note: All Non-Conforming Loans require either a Credco or Equifax credit report. If one is not provided at the time the Loan is submitted to Wells Fargo for underwriting, Wells Fargo will obtain one from Credco or Equifax prior to underwriting the file. This credit report will be used to determine pricing and the Loan Score used during the Wells Fargo Prior Approval underwriting process. 5

7 Submission using the Direct Express SM Feedback Tool (continued) Loan Summary - Provides the details of the transaction, as submitted. Feedback Messages There will be messages to provide guidance about whether the loan meets the basic criteria of the Wells Fargo Non-Conforming program. The feedback certificate will also provide indications regarding documentation requirements, market classification and risk factors. Tips and Reminders Always re-submit for feedback after changing any loan data. When asked Have you obtained DU or LP Feedback on this loan?, answer No in order to get Direct Express Feedback. Print or image the Final Feedback Cert and deliver with your underwriting package. Who to call with questions For technical questions regarding use of Direct Express, contact our Web Support team at (866) For general questions regarding the Non-Conforming program, please call the Client Relations team at (800) , option 4. 6

8 Program/Product Parameters* Underwriting Type Prior Approval Note: Each department has dedicated individuals trained to handle Non- Conforming loans Loan Purpose Purchase Rate/term refinance Cash-out refinance Occupancy Primary residences and second homes Available Products 15-, 20-, 30-year fixed-rate 5/1, 7/1, 10/1 LIBOR ARM Amortization Documentation Options Loan Amounts Secondary financing Fully amortized only (Interest-only payment feature is not allowed) Full Doc only Maximum $2 million Note: Secondary financing may create combined loan amounts greater than $2,000,000. Allowed *Note: Guidelines noted in this presentation are subject to change. The Seller Guide and Newsflashes should be consulted for current Non-Conforming guidelines. 7

9 Program/Product Parameters (continued) Loan Score Minimum Loan Score: 700 for purchase and rate/term transactions with a fixed rate product 720 for all other transactions Important note: Wells Fargo uses the loan score pulled from Direct Express SM ; you re encouraged to use that tool to prevent disparity between reports. Property Type Single Family (attached and detached) Condo PUD Co-op Leasehold Modular Cooperatives Loan amount < $650,000 allowed in New York and New Jersey (Bergen and Hudson counties). Loan amount > $650,000 to $2,000,000 allowed in New York City (Bronx, Brooklyn, Staten Island, Manhattan, Queens and counties of Nassau, Rockland, Suffolk, and Westchester). Co-op loans with subordinate financing are limited to properties located in New York Ratios Front End ratio = 36% Maximum total debt to income ratio of: 43% for primary, fixed rate, purchase and primary, fixed rate, rate/term refinance transactions 40% for all other transactions Occupant Borrower s Ratio with Non-Occupant Co-borrower = 43% LTV CLTV Maximum 80% LTV (refer to the Seller Guide for all LTV/CLTV restrictions) Maximum 85% CLTV (refer to the Seller Guide for all LTV/CLTV restrictions) Median Home Price When the aggregate loan amount exceeds ten (10) times the subject property s county level median home price, the maximum allowable LTV/CLTV for primary residences is 70% and 65% for second homes. Eligible Borrowers U.S. citizens Permanent Resident Aliens (green card holders) Non-Permanent Resident Aliens with a valid visa 8

10 Program/Product Parameters (continued) Reserves Subject property combined Loan amount Minimum Required reserves Up to $2,000, mos. PITI $2,000,001 to $4,000, mos. PITI Greater than $4,000, mos. PITI Retirement accounts Retirement funds may be used to meet up to 50% of the minimum reserve requirement. Tax deferred gross retirement assets must be reduced by 30% to account for tax consequences (less outstanding loan balances) 100% of the vested Roth IRA balances (less outstanding loans) There must be an additional 10% reduction if an early withdrawal penalty exists Aggregate Financing When aggregate financing for all properties owned by borrower exceeds $3 million - 36 months PITI OR - Maximum 50% LTV Note: Additional reserves may be required if the borrower has a negative equity position on a departure residence. 9

11 Documentation Requirements - Full Documentation Salaried Employees W-2 forms for the most recent two years. Paystub covering the most recent 30 days. Verbal Verification on Wells Fargo s Exhibit 3 and dated within 10 business days prior to the Note date. Self-Employed Borrowers 4506T & Business Tax Transcripts Assets Individual tax returns and K-1 s for the last two years. Business tax returns for all businesses where the borrower owns 25% of the business. Self-employment income not used to qualify: The borrower must provide a copy of the first page of the most recent individual federal tax return to determine whether there was a business loss that negatively impacts the borrower s ability to repay. For businesses where the income was used in the loan decision, a year-to-date profit and loss (P&L) statement and balance sheet are required if more than four months have lapsed since the last fiscal year end. Financial statements must be prepared by a certified public accountant, public accountant, or bookkeeper. The individual preparing the financial statements cannot be an immediate relative of the applicant. Balance sheets are required for sole proprietorships since balance sheet information is not included on Schedule C. Verbal Verification on Wells Fargo s Exhibit 3 & dated within 30 days prior to the Note date. IRS Form 4506-T must be included for each business tax return that was used in the Loan decision (Box 6 must include the tax return form number and box 6a and 6c must be checked). When an extension for business tax returns has been filed for the most recent tax year the IRS Form 7004 and the IRS Form 4506-T confirming No Transcripts Available are required. Bank or brokerage statements for the most recent two consecutive months. Credit If a Credco or Equifax credit report is provided by the Seller, Wells Fargo can re-access the report and use it for pricing and underwriting. Note: Credit report may be from CoreLogic Credco as they have partnered with Credco. If a Seller uses their own (non-credco or non-equifax) credit vendor, Wells Fargo will obtain one from Credco or Equifax prior to underwriting the file. This credit report will be used to determine pricing and the Loan Score for the Wells Fargo Prior Approval underwrite. 10

12 Documentation Requirements Self-Employed Borrowers Expanded the Definition of Self- Employed Self-Employment Stability Considered self-employed when their income is derived from a business in which they maintain a majority owner interest or can otherwise exercise control over the business activities. Generally, a 25% or greater ownership interest in the business is considered a majority. Two or more years: Income from self-employment may be considered stable. At least one year but less than two years: May be considered stable if the following requirements are met: Borrower must have had at least two years of previous successful employment in the same occupation. Document reasonable probability of business success based on market feasibility, research, or studies and pro forma financial statements. Factors to consider: The borrower s training and experience The location and nature of the business The demand for that type of business in the area Less than one-year history: May not be considered effective income. 11

13 Documentation Requirements Self-Employed Borrowers Income Calculations To comply with the CFPB s Qualified Mortgage self-employed income analysis, Wells Fargo Funding has updated our Non-Conforming Loan guidelines to include self-employed income analysis requirements. Method Types Wells Fargo Cash Flow Analysis Method considers distributions that the borrower is taking from the business Baseline Calculation Method considers the net income from the business Wells Fargo Cash Flow Analysis Method Baseline Calculation Method The cash flow analysis includes, but is not limited to, the assessment of the borrower s ability to repay based on the ability to take withdrawals from (or put capital into) the business. Business net income typically does not represent cash in pocket but is used to support cash distributions. Business net income is used to support cash distributions and may not always represent cash in pocket. Financial Reform guidance refers to the new Qualified Mortgage requirements for the Baseline calculation. The Baseline calculation will continue to use the Adjusted Net Income approach for qualifying. Process Income will be calculated using both the cash flow analysis and Baseline calculation, with the lower of the two calculations being used to qualify the borrower. Lenders must provide documentation to evidence the income calculations were performed. Additional Information The cash flow and baseline calculations along with additional information regarding self-employed analysis can be found in December 27, 2013 Newsflash (C13-080FR). Section Income Analysis section of the Wells Fargo Funding Seller Guide. 12

14 Documentation Requirements Full Documentation Non- Conforming Initial Loan Submission Checklist The checklist is designed as a reference tool to highlight critical documentation requirements needed for sale to Wells Fargo to underwrite a Non-Conforming Loan. This checklist is optional, but will help you deliver a more complete loan package. Refer to Wells Fargo Funding Seller Guide for complete details. This list is not all inclusive. Sellers must follow standard Agency guidelines if not addressed in Section 825 or 820 of the Wells Fargo Funding Seller Guide. Sample checklist pages 13

15 Appraisal Documentation, cont. Total Loan Amount Provided by Wells Fargo Less than or equal to $1,000,000 Greater than $1,000,000; Less than or equal to $1,500,000 Greater than $1,500,000; Less than or equal to $2,000,000 CLTV <4 times Median Home Price Appraisal Documentation Required Median Home Price Multiple > 4 < 10 times Median Home Price All One full appraisal One full appraisal One full appraisal < 70% One full appraisal > 70% < 80% One full appraisal completed by a certified One full appraisal completed by a certified appraiser and a Residential Valuation Services (RVS) Desk Review 2 > 80% Ineligible appraiser 1 and a < 70% Residential Valuation Services (RVS) Desk Review 2 > 70% < 80% > 10 times Median Home Price One full appraisal completed by a certified appraiser 1 and a Residential Valuation Services (RVS) Desk Review 2 Ineligible One full appraisal completed by certified appraiser 1 and a Residential Valuation Services (RVS) Interior Field Review 2 Ineligible > 80% Ineligible 1. Seller must notify the AMC that the appraisal must be completed by a certified appraiser and, upon receipt of the appraisal, must confirm the appraisal was completed by a certified appraiser. 2. RVS review products will be ordered by Wells Fargo Funding Prior Approval underwriting, after written verification is received from the Seller to accept the charges. LTV/CLTV will be based on the lower of the reviewed value or the sales price. Notes: Refer to Exhibit 4 in the Seller Guide for median home prices. Inquire with Underwriting for LTV/CLTV exception availability where Ineligible is listed. RVS Reviews when needed will be ordered by the Wells Fargo underwriter after written verification is received from the Seller to accept the charges (RVS Review charge is $110 per review). Inquire with Underwriting for LTV/CLTV exception availability where Ineligible is listed. 14

16 Appraisal Documentation, cont. Where the Seller Guide requires a Appraisal Residential Valuation Services (RVS) review Field review (Fannie Mae Form 2000/2000A or Freddie Mac Form 1032/1072) Required for aged appraisals in Market Class 3 or 4 (see Seller Guide Section for details). AMC(s) authorized to provide the valuation product(s) are Clear Capital, Rels Valuation, or ServiceLink N/A Clear Capital Rels Valuation ServiceLink The valuation product(s) from the AMC(s) must be ordered through PartnerConnect or Rels Valuation s website* When required, RVS review products will be ordered by the Wells Fargo Funding underwriter Clear Capital s website PartnerConnect or Rels Valuation s website ServiceLink s website *Sellers must also share their final valuation products for Non-Conforming Loans with Wells Fargo Funding using the share functionality in PartnerConnect or in Rels Valuation s website (for orders placed directly with Rels Valuation). Notes: Refer to Exhibit 7 for vendor contact information and additional information. The appraisal and field reviews need to be uploaded to wellsfargofunding.com, as you do today. 15

17 Preferred Payment Plan SM Overview Your borrowers may be eligible for a.25 percent interest rate reduction on their Wells Fargo Non-Conforming mortgage if they enroll in the Preferred Payment Plan SM with a Wells Fargo checking or savings account. When the property is located in one of 17 non-wells Fargo bank states, a financial institution other than Wells Fargo is acceptable.* The Preferred Payment Plan is a free, automatic way for borrowers to make their mortgage payments with Wells Fargo. Borrowers can choose the option that meets their needs: weekly, every two weeks, twice-amonth, or monthly. Borrowers who wish to open a Wells Fargo checking account may contact Wells Fargo at (855) *Note: Arkansas, Hawaii, Illinois, Kansas, Kentucky, Louisiana, Maine, Massachusetts, Michigan, Missouri, New Hampshire, Ohio, Oklahoma, Rhode Island, Tennessee, Vermont, and West Virginia 16

18 Preferred Payment Plan SM (continued) Process Clients will have two options to apply the interest rate discount: Option 1: Lock the loan online at the non-reduced interest rate and then call Priceline at option 2 to apply the.25% interest rate reduction. Underwriting will condition for the required documentation and upon approval will apply the interest rate reduction to the final loan approval. This option is only available prior to the loan being submitted to Underwriting. Option 2: Lock the Loan online at the non-reduced interest rate and Underwriting will condition to verify the borrower s participation. Upon approval of the documentation, the Underwriter will contact Priceline to reflect the.25% interest rate reduction. Note: Both options require approval of the required documentation to receive.25% rate reduction. Note: If the loan is not locked and the credit package has been submitted to Wells Fargo, the Underwriter will condition to verify the borrower s participation in the program. 17

19 Preferred Payment Plan SM (continued) Documentation Upload the following with the Credit Package when the borrower wishes to enroll in the Preferred Payment Plan (items below are required for both Wells Fargo and non-wells Fargo bank accounts): A completed Preferred Payment Plan Authorization Form (Exhibit 2), signed and dated by the borrower (Note: do not fax the authorization as requested on the form), and One of the following as additional documentation for the Wells Fargo automatic payment withdrawal: o One month s bank statement o Voided check imprinted with the borrower s name and address o Voided deposit slip imprinted with the borrower s name and address o Online bank printout signed by a banker o VOD Submit the following with the standard Closed Loan Package: executed Note and first payment letter at the reduced interest rate. Refer to Seller Guide Section for further details. 18

20 Common Suspense Issues The table below represents common suspense issues and possible remedies for curing. Issue Submitting a non-credco or non-equifax credit report Solution Use Direct Express SM and/or pull a Credco or Equifax credit report. Appraisals from a company other than an approved AMC Cover letter not included with loan submission Missing full documentation Incorrectly completed Preferred Payment Plan Authorization Form Undocumented large deposits Order all appraisals from one of the authorized AMCs: Clear Capital, Rels Valuation, or ServiceLink. Include a cover letter with each submission that covers: The 5 C s Cash/Capital, Capacity, Credit, Character, and Collateral. The 2 K s Know the borrower, and know and understand the transaction. All Non-Conforming loans require full documentation. Refer to the Seller Guide for requirements. Verify all four sections of the Preferred Payment Plan Authorization Form (Exhibit 2) are completed with accurate information. Address the source of large deposits in the cover letter and document as needed. Errors on Verbal VOEs Be sure to use Wells Fargo s Exhibit 3 (VVOE) and ensure it s filled out completely with all necessary boxes checked. Must be dated before the Note date. Closed Loan Underwriting Not allowed. Submit credit package for prior approval underwriting. 19

21 Important Seller Guide Sections and Reference Tools Seller Guide Sections Section 200: Seller Eligibility Section 305: Events of Default; Remedies; Indemnification Section 400: Registrations and Pricing Section : Additional Documentation Required for Non-Conforming Conventional Loans Section 825: Non-conforming Underwriting Guidelines Section 850: Qualifying Ratio Tables Section 950, 955, 973: Non-Conforming LTV Matrices Exhibit 3: Verbal Verification of Employment Exhibit 4: Value Based Median Home Price Classification List Exhibit 20: Market Classification (Restricted Markets) Reference Tools Recent Newsflash communications Direct Express Sign-up and Approved Vendors Non-Conforming Initial Loan Submission Checklist Loan Submission Summary (Form 1) Preferred Payment Plan Authorization Form (Exhibit 2) 20

22 Contact Information Client Relations If you have program or product questions, contact your regional Client Relations Representative at , Option 4. Underwriting Scenario Questions For underwriting support, please call the Scenario Helpline at (800) , option 5, option 3 or scenario.helpline@wellsfargo.com. Underwriting Key Contacts Shari Clemons Team Lead Underwriter (612) shari.clemons@wellsfargo.com Jim Frazee Lending Manager (612) james.frazee@wellsfargo.com Melissa Pappas Lending Manager (612) melissa.pappas@wellsfargo.com Lisa Doyle Lending Manager (612) lisa.doyle@wellsfargo.com Direct Express SM and wellsfargofunding.com Questions For technical assistance, contact Web Support team at (866) or websupport@wellsfargo.com. 21

23 Thank you 22

24 Reference Materials 23

25 Snapshot 24

26 Top 5 tips Tip #1 DOCUMENT IT Use our Loan Submission Summary and Non- Conforming Initial Loan Submission Checklist for a smoother delivery process and remember all Loans are full documentation. Tip #2 REFERENCE IT Key sections of our Seller Guide, Newsflashes and other resources are outlined in this deck for your reference. Download the deck and reference material directly from LiveMeeting. Tip #3 SUBMIT IT Remember to submit all files to Wells Fargo for underwriting and include a Credco or Equifax credit report OR use our Direct Express tool. Remember, we will consider exceptions to some guidelines be sure to highlight the exception request when submitting the loan. Tip #4 PRICE IT Remember to be sure to check all applicable adjusters, any incentives and the rate improvement for the Preferred Payment Plan (if applicable) are included when pricing your loan. Tip #5 ASK IT If you have a question on any scenario, guideline, price or process, ask us. This deck contains contact information for our scenario helpline, underwriters and client relations. Also, you may reach out to a member of your sales team with any question at any time. 25

27 Direct Express What is Direct Express SM? Direct Express SM is Wells Fargo s proprietary feedback tool which includes a credit report pull utilized on all Non-Conforming products. Wells Fargo Funding does not require use of Direct Express to obtain feedback; however, there are some key reasons why you might consider doing so. Benefits of using Direct Express Wells Fargo Funding requires a credit report from Credco or Equifax. By using Direct Express in your operations to pull credit, Wells Fargo will not pull a separate credit report, eliminating the chance of a discrepancy in Loan Score. Feedback results will help identify parameters of your loan that are outside of Wells Fargo guidelines and, it may provide a preliminary look at potential issues. Including Direct Express results with your file submission provides initial data to Wells Fargo which may shorten our registration time and potentially lead to a quicker review. Getting setup Your company s wellsfargofunding.com administrator has access to Direct Express functionality. Your administrator can provide access to others in your organization based on their business needs. They may also limit access to pricing information. Required credit vendors To use Direct Express, you must be set up with either CoreLogic Credco or Equifax. Three basic steps for using Direct Express 1. Enter data using your company s LOS, register or lock your loan with Wells Fargo, and upload to our website. 2. Access the loan under the pipeline menu on wellsfargofunding.com, re-access credit, double-check the data, and Get Feedback. 3. Update data as needed, and obtain new feedback. For more information and a more in-depth overview, contact a member of your regional sales team. Other key notes: Wells Fargo will obtain a credit report through Direct Express and use it to determine credit score for underwriting purposes, unless the Seller provides an Equifax or Credco credit report in the credit package. Along with the credit report, Direct Express provides only a preliminary indication of potential issues with a given loan. It does not provide an approval, nor a comprehensive list of stipulations. Regardless of the Direct Express feedback, all files will be manually underwritten by Wells Fargo. Direct Express does not provide relief to Representations and Warranties outlined in the Wells Fargo Funding Seller Guide. 26

28 Direct Express To use Direct Express, you must be set up with one of the following two credit vendors. Credit Vendor Account Status Take these steps to get set up CoreLogic Credco Equifax If you have an existing account If you do not have an existing account If you have an existing account If you do not have an existing account 1. Call Credco Account Services Department at They answer the phone saying you have reached CoreLogic 2. Inform the representative that you want to sign up under the code WFCLIENTS. 3. Credco will provide you with a new Wells Fargo Funding affiliated account number to use with Direct Express. 1. Go to the Credco website, complete the information request form, and click SUBMIT to receive your application. 2. Complete the compliance packet and submit it following the instructions in the packet. Credco will contact you within 48 hours. 3. You will receive your new Wells Fargo Funding affiliated Credco account number within five days of completing the application process. 1. Call Equifax Account Services Department at Inform the representative that you want to sign up under the code WFCLIENTS. 3. Equifax will provide you with a new Wells Fargo Funding affiliated account number to use with Direct Express. 1. Call the EMS Sales Support at or emssalessupport@equifax.com. Inform the representative that you want to sign up under the code WFCLIENTS. 2. Complete the compliance packet and to emssalessupport@equifax.com or fax to You will receive your new Wells Fargo Funding affiliated Equifax account number within 14 days of completing the application process. Visit wellsfargofunding.com to update your company and user profiles for access to pull credit reports. Refer to the Wells Fargo Funding Seller Guide for more information regarding Direct Express guidelines. Contact your Client Relations Representative with questions regarding the Direct Express tool. 27

29 Direct Express Submission using the Direct Express SM Feedback Tool Getting started Your company s wellsfargofunding.com administrator: has been given access to the Direct Express tool functionality. has the ability to provide access to others in your organization based on business needs and the ability to limit access to pricing information. If you need additional assistance, contact your Client Relations representative for more information and a more in-depth overview. To use the Direct Express feedback tool, you must be set up with one of the following two credit vendors. CoreLogic Credco Equifax 28

30 Direct Express Submission using the Direct Express SM Feedback Tool Administrative set up on wellsfargofunding.com User Preferences Credit Vendor Information Add either Credco or Equifax (Wells Fargo-affiliated) account number and passwords Refer to Appendix A for how to sign up with a vendor User Maintenance Add individual user functionality for each user that will need to run Direct Express by checking these two boxes in their profile. Each user should also have access to: Pipeline 1 st Mortgage 1003 Upload Register Loan and/or Lock Loan Group 29

31 Direct Express Submission using the Direct Express SM Feedback Tool High Level Best Practice Process Flow Step 1 Enter data on your company s LOS Pull Credco or Equifax Credit (May do so at this point, or later in Step 3) Upload 1003 to wellsfargofunding.com Register and/or Lock the loan (Loan must be at least registered or locked to obtain Direct Express feedback) Step 2 Select Loan Management from the top menu bar on wellsfargofunding.com Select Operations Pipeline from the drop down and then search for the loan for which you need Direct Express Feedback. Once found, click on the Loan Number. Once individual loan information is displayed, choose Edit Loan Data from the drop down box titled Select a Task to Perform. 30

32 Direct Express Submission using the Direct Express SM Feedback Tool Process Flow (continued) Step 3 Direct Express functionality is now accessible for your specific loan. The left tool bar selections generally follow the flow of your Select Get/View Credit to pull a credit report or re-access a credit report you ve previously obtained. If you re accessing credit that you pulled previously, you will need to enter the Credit Reference number from the existing credit report. 31

33 Direct Express Submission using the Direct Express SM Feedback Tool Process Flow (continued) Step 4 Reconcile/verify each section to ensure the information from your 1003 & credit report flowed correctly to Direct Express. If necessary, you may re-pull credit at this time. Once complete, Select Get Direct Express Feedback Step 5 (as needed) Update data as needed/reupload/reconcile Select Get Direct Express Feedback 32