NAVIGATING THE NON AGENCY LOAN PROCESS

Transcription

1 September 2012 NAVIGATING THE NON AGENCY LOAN PROCESS Refer to Chase Online Guides at chaseb2b.com for detailed information on all of our policies and procedures. 1

2 Topics Available Products, Product Eligibility Parameters and Minimum Loan Amounts Chase Distressed Markets Policy Non Agency Loan Process Resources & Tools 2

3 Market Type Available Products Product , 25, and 30 Year Non Agency Fixed Rate and 15 Year Non Agency Fixed Rate 194 Non AgencyInterest OnlyFixed Rate 516 5/1 Non Agency Amortizing ARM 517 7/1 Non Agency Amortizing ARM /1 Non Agency Amortizing i ARM 495 5/1 Non Agency Interest Only ARM 487 7/1 Non Agency Interest Only ARM /1 Non Agency Interest Only ARM Program is available for Best Efforts transactions only; not available for Mandatory AOT/Direct Trade transactions. 3

4 Product Eligibility Parameters Topic Maximum Loan Amount Policy $2,000,000 $3,000,000 in specific geographic locations* Minimum i Loan Amount Minimum i loan amounts apply Maximum LTV / CLTV 80% / 80% 4506 T Policy Occupancy A fully processed 4506 T, with two years transcripts, is required for all borrowers on the loan Primary Residence & Second Homes Non Agency AgencyProgram is available to Chase Correspondents whomeet eligibility criteria. * Refer to Chase Online Guides for geographic locations and additional requirements. 4

5 Product Eligibility Parameters, cont. Topic Policy Transaction Types Purchase, No Cash Out Refinance, Cash Out Refinance 1 Property Types Condominium Classifications Maximum DTI Features 1 4 Unit 2, PUD, Condo, Co op All condo projects must be approved by Chase Chase limited project reviews are eligible For additional information, refer to Chase Condo Guides 45% Amortizing / 40% Interest Only Texas 50(a)(6) permitted 1 Not eligible for Interest Only and Second Homes, units not eligible for Interest Only. 5

6 Minimum Loan Amounts To eliminate overlap between our Agency High Balance product offerings and the Non Agency products, minimum loan amounts apply as outlined below: For products and features: Minimum i loan amount is: available under the Chase Agency High Balance programs, HERA Agency High Balance loan limit as specified for county, state, and number of units, plus $1 not available under the Chase conforming loan limit as specified Agency High Balance programs, for the state and number of units, plus $1 6

7 Distressed Markets Policy Properties located in Chase Distressed Markets are subject to the more restrictive of: Maximum LTV/CLTV stated in Chase Distressed Markets Look Up Table for county and state, or Maximum LTV/CLTV stated in the Product Guide for Occupancy, Transaction and Property Type To determine if a property is located in a distressed market, refer to Chase Distressed Markets Look Up Table: chaseb2b.com > Correspondent Lending > Chase Online Guides > Products > Non Agency Products > Chase Correspondent Distressed Markets Table 7

8 Non Agency Loan Process Overview Correspondent C d t Underwrites Loan Correspondent Od A Orders Appraisal i l using Chase approved AMC Correspondent p Registers or Locks Loan Correspondent Submits Underwriting Conditions to Chase Chase Conducts Underwriting Review Correspondent Submits Loan File to Chase Underwriting Chase Issues Final Clear to Close First three steps can be done in any order if completed by Correspondent prior to submitting loan file to Chase Underwriting. 8

9 Underwriting Non Agency Loans All Non Agency loans: Correspondent must provide: may be submitted through ChaseLoanManager ZiPPY may not be submitted through DU or LP must be sent to Chase for underwriting regardless of delegated lending authority limit complete appraisal and credit package with underwriting commentary to explain thought process and method of calculations, along with required borrower explanations documentation in underwriting file evidencing appraisal was ordered through Chase Appraisal Management tservices website bit or directly from a Chase approved Appraisal Management Company 9

10 Ordering Non Agency Appraisal Access the Chase Appraisal Management Services website and order an appraisal from: Equifax LSI ServiceLink OR Order an appraisal directly from: Equifax LSI DataQuick ServiceLink DataQuick LSI ServiceLink Chase Appraisal Management Services Website: chaseb2b.com > Correspondent Lending > Manage Appraisals or / Ordering an appraisal through a Chase approved Appraisal Management Company or RealEC does not relieve the Correspondent of any obligations to Chase. 10

11 Ordering Non Agency Appraisals, cont. Appraisal Management Companies Job Aids General Information & Important Contacts User Set Up & Correspondent Party Identification Ordering an Appraisal Ordering a Review Appraisal Attaching & Uploading Documents Appraisal Follow Up Requests Appraisal Materials Location chaseb2b.com > Correspondent Lending > Online Guides > Appraisal/Property Requirements > Appraisal Management Companies Non Agency Loans folder 11

12 Registering and/or Locking Non Agency Loans Non Agency loans may be registered or locked using ChaseLoanManager Loan does not have to be locked prior to underwriting, but must be registered (i.e. interest rate, product) Print your confirmation Training modules for ChaseLoanManager are available in the ChaseLoanManager Resource Center > Online Training > ChaseLoanManager folder. 12

13 Submitting Non Agency Loans Complete Underwriting File Submission Checklist for Non Delegated Dl tda Agency & Non Agency to complete lt credit package chaseb2b.com > Correspondent Lending > Chase Online Guides > Exhibits > Underwriting Exhibits folder Include the following information when completing this form: Chase Loan Number Borrower Name Correspondent Seller s Name, C Code and Underwriting Contact Name, Telephone Number, Fax Number and Address Documentation for underwriting review should include: Income Assets Credit Report Contract (if applicable) Appraisal 13

14 Submitting Non Agency Loans, cont. Loan file delivery options: ChaseLoanManager Imaged Document Delivery (preferred) Mail package Mail package instructions are outlined on the Underwriting File Submission Checklist for Non Delegated Agency & Non Agency Training modules for ChaseLoanManager Imaged Document Delivery are available in the ChaseLoanManager Resource Center > Online Training > Imaged Document Delivery folder. 14

15 Chase Underwriting Review Loan is assigned to a Non Agency Underwriter for review: If Loan is Approved Chase National Underwriting performs second review on loans over $1 million Chase National Underwriting provides decision to initial Underwriter who communicates final status and faxes decision document, Approval Memo, to Correspondent contact provided on submission form Chase holds loan for 15 days until both credit documents and rate lock expires Appraisal is sent to Chase National Underwriting for review of collateral and suspense conditions on loans over $1 million Ch N i lu d i i d i i i lu d i ih d ibl changes to suspense conditions Underwriter makes required changes, communicates status and faxes decision document, Notice of Incompleteness, to Correspondent contact provided on submission form Chase holds loan for 21 days or lock expiration (both must occur) If Loan is Chase National Underwriting responds to initial Underwriter with status and possible Suspended If Loan is Denied,, p Loan sent to a designated Underwriting Supervisor for review and concurrence Supervisor provides their decision to initial Underwriter who communicates status update and faxes decision document, Notice of Adverse Action, to Correspondent contact provided on submission form 15

16 Clearing Conditions Each condition or change request is reviewed on a first received, first reviewed basis Multiple submissions significantly extend turn times Suspended loans changed to approved status may need to go through additional review as outlined in Chase Underwriting Review process Upload all Underwriter to Clear (UTC) conditions at one time in ChaseLoanManager Imaged Document Delivery If all conditions are met, a clear to close is faxed to the Correspondent Due to the complexity and importance of each loan, it is not possible to review loans on a rush basis. 16

17 Resources & Tools Support & Materials Non Agency: Product Guides Chase Distressed Markets Look Up Table Condo & Co op Policy Guides Appraisal Management Companies Job Aids ChaseLoanManager Ongoing Support 17

18 Non Agency Product Guides & Chase Distressed Market Look Up Table Non Agency Product Guide: Online Guides > Products folder Distressed Market Look Up Table: Online Guides > Reference Guides and Matrices Chase Non Agency Amortizing Fixed Chase Non Agency Interest Only Chase Non Agency LIBOR ARMs Chase Correspondent Distressed Markets Look Up Table 18

19 Appraisal Management Companies Job Aids chaseb2b.com > Correspondent Lending > Online Guides > Appraisal / Property Requirements > Appraisal Management Companies Non Agency Loans Note: Materials also available in ChaseLoanManager Resource Center > Online Training > Appraisal Management Companies Non Agency Loans folder 19

20 Ongoing Support chaseb2b.com > Correspondent Lending > Underwrite & Lock with ChaseLoanManager > Login > ChaseLoanManager Home Page > Contact Us Note: Support information also available via chaseb2b.com > Correspondent Lending > Contact Us drop down menu 20

21 For real estate and lending professionals only and not for distribution to consumers. This document is not an advertisement for consumer credit as defined in 12 CFR (a)(2). All home lending products are subject to credit and property approval. Rates, program terms and conditions are subject to change without notice. Not all products are available in all states or for all dollar amounts. Other restrictions and limitations apply. Correspondents should provide customers with clear and balanced product descriptions JPMorgan Chase & Co. 21