GMAC BANK JUMBO FIXED RATE PRODUCT

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1 GMAC BANK PRODUCT 1. PRODUCT DESCRIPTION Conventional Jumbo Fixed Rate 10 to 30 years in five-year increments Fully amortizing 2. PRODUCT CODES Yr Jumbo Fixed Yr Jumbo Fixed 3. INDEX N/A 4. MARGIN N/A 5. ANNUAL /ADJUSTMENT N/A CAP 6. LIFE CAP N/A 7. RATE AT ADJUSTMENT N/A 8. CONVERSION OPTION N/A 9. CONVERSION FEE N/A 10. DELIVERY See the Client Guide for acceptable delivery time frame 11. TEMPORARY Not permitted BUYDOWNS 12. QUALIFYING RATE AND RATIOS Qualifying Rate Qualify at Note rate using the fully amortized payment PITIA Ratios Primary Residence: 45% DTI Second Home: 40% DTI 13. TYPES OF FINANCING Purchase Mortgage Rate & Term Refinance No seasoning of first mortgage If owned less than 12 months, LTV must be based on lower of appraised value or original sales price plus the cost of any documented improvements. If the value has increased greater than 15%, photographs of improvements are required. If owned more than 12 months, LTV is based on current appraised value. HUD-1 or Deed must be provided to verify ownership Reasonable and customary closing costs, prepaids and seasoned junior liens may be incorporated into the loan amount. Cash out not to exceed the lesser of 1% or $2000 of the principal amount of the new loan Continuity of Obligation must be demonstrated. See the Conventional chapter of the Client Guide for definition and guidelines. One year seasoning on junior liens from funding unless documentation is provided to verify it was incurred as part of acquisition or for home improvements. This does not apply to draws of 1% or less of the new loan amount or a maximum of $2,000 within the past 12-month period. Properties listed for sale in the last 6 months (on or before the application date) are not eligible for refinance transactions Owner occupied properties located in Texas: A copy of the current mortgage or note is required to determine the previous terms are not subject to Texas Section 50(a)(6) also known as (Home Equity Deed of Trust, Home Equity Installment Contract or Residential Home Loan Deed of Trust) requirements. If the first or second Texas Section 50(a)(6) loan is being paid off, regardless of whether the borrower is getting any cash back, the loan is restricted to the Texas Home Equity product. Refer to the Texas Home Equity Product Summary. If the first mortgage is not a Texas Section 50(a)(6) loan and the second mortgage is a Texas Section 50(a)(6), the second lien may be subordinated and is considered a rate and term refinance. The second lien must be subordinate to the GMACB first mortgage and a subordination agreement must be executed. Borrower cannot receive any cash back from first mortgage transaction. If a Texas Section 50(a)(6) second lien is being paid off, the loan is restricted to the Texas Home Equity product. Cash-Out Refinance Primary residence only Page 1 of 8

2 GMAC BANK PRODUCT All borrowers must have held title to subject property for a minimum of 6 months (note date to application date) If owned less than 12 months, LTV must be based on lower of appraised value or original sales price plus the cost of any documented improvements. If the value has increased greater than 15%, photographs of improvements are required If owned more than 12 months, LTV is based on current appraised value. HUD-1 or Deed must be provided to verify ownership Continuity of Obligation must be demonstrated. See the Conventional chapter of the Client Guide for definition and guidelines. Properties listed for sale in the last 6 months (on or before application date) are not eligible for equity refinance transactions Primary residences located in Texas subject to Texas Section 50(a)(6) are NOT eligible A copy of the current mortgage or note is required to determine the previous terms are not subject to Texas Section 50(a)(6) also known as (Home Equity Deed of Trust, Home Equity Installment Contract or Residential Home Loan Deed of Trust) requirements. Cash out limitations includes payoff of unseasoned second mortgages, HELOCs and/or non-mortgage debt 14. LOAN AMOUNT Maximum Loan Amount 1 unit: $2,500,000 2 units: $2,000, units: $1,500,000 Units Continental US Minimum Loan Amount Alaska and Hawaii Minimum Loan Amount 1 $417,001 $625,501 2 $533,851 $800,776 3 $645,301 $967,951 4 $801,951 $1,202, LTV/CLTV LIMITATIONS PRIMARY RESIDENCE Purchase and Rate & Term Refinance Units LTV 1 CLTV 1 Credit Score Loan Amount 80% 80% 700 $1,000, % 80% 720 $2,000,000 65% 65% 751 $2,500, % 80% 700 $1,000,000 80% 80% 720 $2,000, % 70% 700 $1,000,000 70% 70% 720 $1,500,000 Cash-Out Refinance % 80% 700 $1,000,000 80% 80% 720 $1,500,000 SECOND HOME Purchase and Rate & Term Refinance 1 70% 70% 740 $1,000,000 Maximum Cash-Out Max cash out >65% 80% LTV/CLTV is $250,000 Page 2 of 8

3 GMAC BANK PRODUCT Max cash out 65% LTV/CLTV is $350,000 Market Indicator Portal All loans must be submitted to the GMAC Bank Market Indicator Portal (declining market indicator) and if applicable, follow Declining Market policy restrictions. The following do not require submission to the Market Indicator Portal Loan amounts greater than $2,000,000 Second Homes Cash-Out Refinance 1 Declining Markets If the Market Portal tool delivers an A market designation, and the appraiser indicates the subject property is located in a submarket which is declining, the A market must be downgraded to a B market reducing the LTV/CLTV by 5% If the Market Portal tool delivers a B, C, or D market and the appraiser indicates the subject property is located in a submarket, which is declining, no further LTV/CLTV downgrade required 1 Declining Market Maximum LTV/CLTV B Market: Reduce Max LTV/CLTV by 5% C Market: Reduce Max LTV/CLTV by 10% D Market: Reduce Max LTV/CLTV by 15% 16. SECONDARY FINANCING Market Upgrade Requirements Ineligible for Market Upgrade Loan amounts greater than $2,000,000 Second Homes Cash-Out Refinance Maximum Market Upgrade of 5% LTV/CLTV permitted for B, C, and D Markets if all of the following are met Minimum 720 credit score Maximum 40% DTI 1-unit primary residence, PUDs, Modular Pre-Cut/Panelized Housing and Detached Condominiums Purchase and Rate/Term Refinance Two Interior and Exterior Appraisal Reports if loan amount is > $1.5 million Maximum loan amount/combined loan amount $2 million Maximum Market Upgrade of 10% LTV/CLTV permitted for D Markets only if all of the following are met Minimum 740 credit score Maximum DTI 40% 1-unit primary residence, PUDs, Modular Pre-Cut/Panelized Housing and Detached Condominiums Purchase and Rate/Term Two Interior and Exterior Appraisal Reports if loan amount is > $1.5 million Maximum loan amount/combined loan amount $2 million See the LTV/CLTV Limitations section Down Payment Assistance Program (DPA) ineligible See Conventional chapter of the Client Guide for complete list of ineligible secondary financing Page 3 of 8

4 GMAC BANK PRODUCT 17. PROPERTY TYPES Eligible Property Types 1-4-units Detached Condominium (1-unit) Leasehold Estate Modular Pre-Cut/Panelized Housing PUD Ineligible Property Types 2-4 unit PUD Assisted Living Projects Attached Condominium Cantilevered Property Common Interest Apartments Condo-Hotel Cooperative Houseboats Investment Securities Manufactured Home Mixed use property Mobile Home Multi-family dwelling with more than 4 units Multi-family condominium dwelling with ownership of > 1 unit evidenced by a single deed and mortgage (includes lock-out units) Projects with non-incidental business operations owned or operated by the Homeowners Association such as, but not limited to, a restaurant, spa, health club, etc. Property or project with pending structural litigation. Non-structural litigation may be considered on a case-by-case basis. Property that restricts the owner s ability to occupy the unit, have mandatory rental pools or guaranteed rent- backs Property that represents a legal, but Non-Conforming use if zoning regulations prohibit rebuilding the improvements to current density in the event of full or partial destruction. Property without full kitchen Non-warrantable condominium Planned Unit Development (PUD) project with pending structural litigation Property with more than 15 acres Property without full utilities installed to meet all local health and safety standards Continuing supply of potable water Public sewer or certified septic system Public electricity Natural or LP gas Property zoned and used for commercial or industrial purposes Tax-sheltered syndicate Time share units/projects Unimproved land Working farm, ranch or orchard See the Conventional chapter of the Client Guide for complete eligibility guidelines and ineligible property types. 18. OCCUPANCY Primary Residence Page 4 of 8

5 GMAC BANK PRODUCT 19. GEOGRAPHIC LOCATIONS/ RESTRICTIONS 20. STATE SPECIFIC REQUIREMENTS Second Home Continental US, Alaska and Hawaii State Specific Requirements 21. ASSUMPTIONS Not Permitted 22. ESCROW WAIVERS See the Client Guide for escrow waiver eligibility. 23. APPROVAL AUTHORITY Delegated Eligible for the following Individual loan amounts <= $1 million GMAC first and second liens: Maximum combined loan amount <= $1 million GMAC first and other lender second liens: Maximum combined loan amount <= $1.25 million GMAC Bank/Mortgage total overall exposure with a borrower <= $1.5 million Total overall exposure includes all GMAC Bank/Mortgage/Homecomings/Ally liens on all properties owned by the borrower. See the Limitations on Other R.E. Owned section for Multiple Loans to the Same Borrower Conditional Delegated Submit to GMACB or contract underwriter Contract underwriting is eligible for the following Individual loan amounts <= $650,000 GMAC first and second liens: Maximum combined loan amount <= $650,000 GMAC first and other lender second liens: Maximum combined loan amount <= $1 million GMAC Bank/Mortgage total overall exposure with a borrower <= $1 million Total overall exposure includes all GMAC Bank/Mortgage/Homecomings/Ally liens on all properties owned by the borrower See the Limitations on Other R.E. Owned section for multiple loans to the same borrower Non-Delegated All loans must be submitted to GMAC Bank Broker All loans must be submitted to GMAC Bank Approved Contract Underwriter Providers MGIC Genworth 24. UNDERWRITING Manual Underwrite is required for all loans. Each loan is to be underwritten manually to the product and policy guidelines indicated on the product summary and the Client Guide 25. DOCUMENTATION TYPES Full Income 26. BORROWER ELIGIBILITY Permanent Resident Non-Permanent Resident Primary residence only Maximum LTV/CLTV for 1-2 units: 75% Page 5 of 8

6 GMAC BANK PRODUCT Maximum LTV/CLTV for 3-4 units: 70% First Time Homebuyer Primary residence only Borrowers Currently Renting: Verification of 12 months rental payments is required 12 months cancelled checks or bank statements is required A direct written verification of rent in lieu of cancelled checks when the landlord is a large management company 12 months reserves are required Borrowers living rent free must have 12 months liquid reserves, regardless of loan amount and DTI See the Assets/Reserves section Non-Occupant Co-Borrower, Guarantor and Co-Signer An established relationship with the borrower exists A party with an interest in the property sales transaction, (including but not limited to the builder, property seller, or real estate broker) is not eligible as a non-occupant co-borrower, guarantor, or co-signer Primary residence only A non-occupant co-borrower, guarantor, or co-signer must provide verification of income Maximum LTV/CLTV for 1-2 units: 75% Maximum LTV/CLTV for 3-4 units: 70% Qualifying total debt ratio for the occupant borrower may not exceed 45% Not eligible on cash-out refinance transactions Foreign National Not permitted Trust Agreements 27. CREDIT See the LTV/CLTV Limitations section for credit score requirements Housing (Mortgage/Rental) Payment History (PITIA) Inclusive of all liens regardless of position Applies to all mortgages on all financed properties 0 x 30 in past 12 months No 60+ in past 24 months Subject mortgage must be current on delivery See the Borrower Eligibility section for First Time Homebuyers Significant Derogatory Credit See the Conventional chapter of the Client Guide for Bankruptcy Foreclosure Pre-Foreclosure Deed-In-Lieu Restructured Loans Short Payoff Page 6 of 8

7 GMAC BANK PRODUCT 28. ASSETS/RESERVES Borrower Investment Primary Residence A minimum down payment of 5% must be paid from the borrower s own funds. The balance may be paid from any of the acceptable asset sources (borrowers funds, gift funds or secondary financing) Gifts are acceptable on loans up to $1 million provided minimum borrower investment requirements are met The minimum borrower investment is waived when the LTV <= 80% and borrower pays own closing costs and no secondary financing exists Gifts are not permitted on loans over $1 million Second Home The entire down payment must be paid from the borrower s own funds Gifts are not permitted Seller Contributions 3% Reserves Purchase and Rate & Term Refinance Reserves must come from borrowers own funds. Must be verified PITIA reserves remaining after closing, exclusive of closing costs, cash out received, and proceeds from home equity transactions. Loan Amount/Combined Loan Amount >$2 million Minimum 18 months PITIA reserves exclusive of cash out funds, business assets (other than Schedule C) Minimum 12 months liquid reserves Maximum 6 months reserves permitted from retirement accounts. See Reserves below. Loan Amount/Combined Loan Amount >= $1 million and <=$2 million Minimum 12 months PITIA reserves, exclusive of cash out funds, business assets (other than Schedule C) Minimum 6 months liquid reserves Maximum 6 months reserves permitted from retirement accounts. See Reserves below. Loan Amount/Combined Loan Amount < $1 million DTI > = 35% Minimum 12 months PITIA reserves, exclusive of cash out funds, business assets (other than Schedule C) Minimum 6 months liquid reserves Maximum 6 months reserves permitted from retirement accounts. See Reserves below. DTI < 35% Minimum 6 months PITIA liquid reserves, exclusive of 401k/SEP accounts, cash out funds, business assets (other than Schedule C). See below for other Ineligible Reserves Cash-Out Refinance Minimum 12 months PITIA reserves (inclusive of HOA fee, if applicable) and exclusive of cash out funds, business assets (other than Schedule C) Minimum 6 months liquid reserves Maximum 6 months reserves permitted from retirement accounts. See the Conventional chapter of the Client Guide for reserve requirements if: The borrower s primary residence is for sale, but will not close before the Note Date of the Mortgage on the new primary residence The borrower is converting their primary residence to a second home or investment property Proposed rent is being used for income Ineligible sources for reserves include Bridge loans Page 7 of 8

8 GMAC BANK PRODUCT Business assets (other than schedule C) Cash out proceeds Gift funds Loans secured by other assets Proceeds from the sale of non-real estate assets First Time Homebuyers See the Borrower Eligibility section for additional reserve requirements 29. MULTIPLE PROPERTIES OWNED/FINANCED 30. APPRAISER REQUIREMENTS 31. APPRAISAL REQUIREMENTS 32. MORTGAGE INSURANCE 33. SPECIAL REQUIREMENTS/ RESTRICTIONS Retirement Account Funds Borrowers of retirement age (generally 59 1/2): Subtract 30% from the vested amount less any outstanding loans Borrowers not of retirement age: Subtract 50% from the vested amount less any outstanding loans See the Conventional chapter of the Client Guide for complete details Multiple Loans to the Same Borrower Maximum 20% concentration in any one project or subdivision Up to 4 financed properties, including the subject property (Max of $2 million exposure to GMAC Bank/Mortgage/Homecomings) New multiple loans must be underwritten simultaneously See the Underwriting section See the Conventional chapter of the Client Guide for eligibility requirements Appraiser must have current license. Appraisals must be ordered through the Veros Portal. See Conventional chapter of the Client Guide for process details. GMACB loan amounts <= $1,500,000 One Interior and Exterior Appraisal Report with interior photos GMACB loan amounts > $1,500,000 Two Interior and Exterior Appraisal Report with interior photos N/A Form 4506-T Must be signed and processed prior to closing and A new form signed at closing Page 8 of 8