VA Processing Checklist

Transcription

1 VA Processing Checklist DU Findings Read DU Findings thoroughly and document accordingly! Provide documentation requested. Re: Paystubs/W-2 s, SS/Retirement earnings, bank statements, tax returns, do ratios on Findings and LN Analysis match, gap of employment letters, 401k used as reserves can funds be withdrawn for financial hardship, etc. If property has HOA dues, has the property type been corrected to PUD and DU run correctly? Does the appraised value on Du match the value on the appraisal in the file? If DU findings have other assets or other income listed in the findings, have these items been corrected to reflect the asset type or income type with the corresponding correct DU populated condition? Does the credit report reference # on the DU findings match the reference # of the credit report in the file? If not, delete the old reference # from DU and pull in the new credit report, as the reference # s must match. Is the file fully processed? If missing documents are the difference between a suspended file, a file with a multitude of conditions and an approved file, the file is not ready to be submitted. CCMC s standard is to have all files approved at time of initial submission with 5 conditions or fewer Checklist Is the checklist the top item on the right hand side? Have the line items been checked off if the item is in the file or N/A d, if not applicable? Have you made notes to address missing items? Does the file contain the most recent file stacking order and are the documents stacked in the order as listed on the stacking order checklist? 1003/VA LN Analysis Do the ratios on the VA Loan Analysis match the ratios on the DU Findings? Do the assets, income, liabilities and appraised value on 1003 match DU? Does the new proposed payment have the actual monthly amounts for ins, taxes and HOA dues, if applicable? Does the cash to close on the final 1003 match the cash to close on the DU findings? Has the appraised value been updated in point/relay to match the value given in the appraisal? Has be maintenance figure been completed on the VA LN Analysis at 14 cents per the above ground square footage of the home? Is the loan number on page 1 of the 1003 and on Du Findings? Year Built completed? Ages of Dependents listed? Do the # of dependents on the 1003 match the # of dependents on the tax transcripts/tax returns? If spouse is not on loan, has spouse been shown as a dependent, for residual to calculate correctly? Source of Settlement/Down Payment completed and correct? Is there a complete 2 year employment and address history on the 1003? Please remember: P.O. Boxes are not legitimate employer addresses or borrower addresses, must have the actual street addresses for both the employer and where the borrower resides. Is the rent/mortgage payment listed in the current housing expense? If no rent, is your file noted or documented? Does the property address on the 1003 match the address on the contract, appraisal and USPS? Does the address in Relay match the address exactly as it appears on the USPS printout? Do the social security numbers match through out the file? Re: credit report, paystubs, W-2 s, tax returns/ tax transcripts? For borrower that own other real estate, has the Real Estate section of the 1003 been completed in full? Have the declarations been reviewed? Are they complete for both borrowers? Are they completed correctly? Re: if credit report shows a BK/ Foreclosure/Open Judgment or the borrower pays child support /alimony are the questions answered Yes? Permanent Resident Alien Is a copy of the unexpired resident alien card in the file? Are both the government monitoring and the interview type completed for all borrowers and have the borrowers and the LO signed and dated the 1003? Is the LO Originator ID and the Company ID on both the Initial and the Final 1003? If not, they will need to be manually added to both 1003 s. VA transaction Is the a (Addendum to the 1003) in the file with both the initial and final 1003? Have all areas on both the initial and final 1802a been completed in full? Is the correct lender ID number on the form? Is the correct case number on the form? Have all applicable sections been completed in full and has it been signed and dated by both the LO and the borrowers? Do the borrower s names in the section Title to be held in What Names of the final 1003 match the names as they appear on the contract/title? GFE/TIL/IFW/Disclosures Are the fully completed, signed and dated, GFE Disclosure History and GFE Submission Checklist in the file.? Are all copies of the GFE, Cert of receipt of GFE, TIL, Fee Worksheet in the file and in the correct order as required

2 by the Disclosure Stacking order? Include legible copies of each GFE, IFW and TIL along with the signed copies each time the file is disclosed.. Are all copies of the GFE, Fee Worksheet and TIL in the closing package, in the correct order? Your closer needs the same copies in the same order as in the UW package. If file has been redisclosed numerous times, has each set of re-disclosure docs been numbered and are they in numerical order? TILs Review in Full Have all of the boxes at the bottom of the page been completed in full and have they been completed correctly? Does the application date appear at the top of the Cert of Receipt of GFE? Does the Re-disclosed date appear at the top of the Cert of Receipt of Re-Disclosed GFE? Are both of the date lines complete at the top of the Change of Circumstance? Was the file disclosed within 3 days of application? If not, is the LOX from the loan officer in the file stating why? Was the file locked at time of initial disclosure? If not, provide a copy of the change of circumstance, cert of redisclosure, new GFE and new Fee Worksheet and TIL if applicable. Does the file contain the signed and dated Risk Based Disclosure? Also, was it provided to the borrowers within 3 days of loan application to meet RESPA Requirements? If file was re-disclosed due to a change of circumstance, are the following documents in the file: 1) Change of Circumstance form from custom forms dated at the top, 2) Cert of receipt of re-disclosed GFE, 3) New GFE, 4) New Fee Worksheet, 5) New TIL and 6) New Compliance Transmittal to indicate new docs sent and the day they were sent? CO only also need CO Compensation Disclosure and CO Lock in Disclosure. Do all of these redisclosed forms have the correct re-disclosed date at the top? Are all of the disclosures in the file completed in full? Are they signed and dated by both the LO and the borrowers? Is a copy of the service provider s list with the Fee Worksheet and GFE? If loan is an ARM, is the fully executed ARM Disclosure in the file? Colorado Loans All IFW s in the file must be signed and dated by both the borrowers and the LO. If loan is a CHFA loan, has the 1% loan origination fee and the $1500 processing fee been disclosed? NOTE: Must be a loan origination fee, cannot be a discount point. All of CHFA rates are at par. Have all Disclosures and Re-Disclosures been uploaded to X-Docs for review and acceptance and has an been sent to disclosures as notification of a new disclosure submission? Lock Is the loan locked? Loan must be locked at the time of submission. Is the closing date within the lock period or is an extension needed? Is a copy of the lock sheet/lock confirmation in the file? Now required by investors. Is your loan locked under the correct program? Does the loan number on the lock sheet match the loan number in Point/Relay? If the loan was not locked at the time of initial disclosure, has it been re-disclosed at the locked rate? Do you have all of the required forms needed for a change of circumstance? If the loan was locked with discount points, do the discount points disclosed match the discount points on the Lock Sheet? If discounts disclosed on the transaction are less that those on the lock sheet, has an been sent to Secondary to approve the concession? If discounts disclosed on the transaction are more than those reflected on the lock sheet, has the loan been re-disclosed? Cannot charge more discounts than the amount reflected on the lock sheet. If the loan was locked with premium pricing, does the amount of the credit disclosed match the credit on the lock sheet? The disclosed credit can be less than the amount on the lock sheet, it cannot be more. Have all the fees being paid by the lender with the credit been marked on the IFW as Paid by Lender? Credit VA FICO Chase requires a 660 Fico, Wells requires a 620 Fico. Do the Fico s and the credit report number appearing on the credit report match the Fico s and the credit report number on the DU Findings? VA CHFA minimum FICO is 620 with all registrations made as of 1/1/2010. The CHFA Risk Score Analysis to be completed on all files when the borrower s FICO is between and the DTI exceeds 43%.. Are all pages of the credit report included in the file and are all pages legible? Payoff of revolving debt if revolving debt is being paid off to qualify and the account is closed, a credit supplement will need to be provided showing account closed and the debt can be paid off prior to or at closing. If the debt is paid in full and the account is not being closed, a $10.00 payment will need to be taken against the borrower on each trade line that has been paid off. Student loans Government loans - If no payment listed or payments deferred, is a copy of the actual statement in the file? Credit supplements cannot be used to document information on deferred loans or confirm payments, if no payment is on the credit report. Must have a copy of the statement in file to show deferment of over 12 months or the amount of the actual payment when repayment starts. Web site that can be used to calculate payments is Finaid.org. Authorized User Accounts must be reviewed to make sure we have a viable credit score. Please see Ops tips Credit Authorized User Accounts for more detail and guidance. Open or 30 day accounts Please review AUS findings and current Ops tips for further detail and guidance. Does the borrower have an outstanding monthly IRS installment agreement in effect to pay their Federal taxes? If so,

3 does the file contain a copy of the IRS payment plan information and has the debt been taken against the borrower(s)? Do the borrower s have children under the age of 12? If so, does the file contain a fully completed child care letter? Was the amount of the monthly child care taken against the borrowers as a monthly debt? The monthly child care is input in Relay in the Job Expense section. Have the real estate debts been matched to the properties listed on the initial application and the tax returns? If they do not match, has the borrower provided the back up documentation? Re: HUD to show property sold or refi d, newly purchased rental or 2 nd home. If the mortgage is a privately held mortgage, do you have a copy of the Note, Deed of Trust/Mortgage and the most recent 12 months of cancelled checks for the mortgage rating? Does the credit report reflect a BK/Foreclosure/Open Judgment? See Ops Tips for time frame information. Has the appropriate time elapsed to purchase a home? Has the borrower provided a copy of the BK Discharge and/or a copy of the Public Trustee s Deed? Has the borrower paid the judgment in full? Is a copy of the release in the file? Is it to be paid at closing? If paid at closing, is a copy of the payoff in the file? The underwriter will condition for title to pay in full and obtain the release. Do you have a signed and dated LOX from the borrower if there were late payments/collections after the BK? Does the file contain a borrower signed and dated LOX to explain each inquiry individually in the past 120 days and each account with derogatory credit within the past 24 months, to include the BK/Foreclosure/and public record line items, name variations and address variations appearing on the credit report? Does LOX on inquiries also address whether or not any new credit has been opened? If any of the inquiries were a result of CCMC pulling credit, is a copy of that report included in the submission with all of the appropriate documentation? Example: If borrower paid off debt, have the funds been sourced? If a rapid rescore was done, is all of the information provided to the credit agency included? Does the credit report indicate an address discrepancy? If so, does the file contain a borrower signed and dated LOX to explain. Does the credit report indicate a SSN discrepancy, Fraud Warning or OFAC Warning that needs to be cleared? If there is a SSN Discrepancy, order SSN verification thru Corelogic. If there is a Fraud Alert, does the file contain a fully completed, signed and notarized FACT Act Statement with fully legible copies of the borrower s Driver s licenses? If there is an OFAC hit, does the file contain a copy of the pages from the OFAC list to show it is not our borrower? Does the credit report show a short sale on a previous mortgage? Does the report indicate any accounts that were settled for less than owed? If this statement is listed under a mortgage, please review current Operation Tips to see if your borrower is eligible for financing at this time! Gov t Loans If the borrowers are retaining a property that has a HELOC, the payment on the credit report is used for qualifying. If borrowers are retaining their current home, does the file contain a signed and dated letter of intent to address what they intend to do with the property? Subordinated 2 nd Is a copy of the signed subordinated 2 nd Note or Loan Agreement in the file? If borrowers are retaining their current home or have rentals, are copies of the mortgage statements along with the current tax statement, insurance and HOA dues, if applicable, in the file for each property? A Credit Report Supplement indicating taxes and insurance are escrowed does not satisfy this requirement. If not escrowed, are copies of the current tax statements, ins and HOA Dues, if applicable, in the file? If current home or rental is Free and Clear, do we have the paid in full note or released Deed of Trust/Mortgage in the file, a current tax statement, insurance and HOA information, if applicable? Have the taxes, ins and HOA dues, if applicable, been taken against borrowers? For each Free and Clear property the borrower currently owns, does the file contain either an Owner Connect or a Lien 360 Report pulled from Real Quest? Does the borrower have outstanding debts that do not appear on the credit report? Has the borrower provided the information/documentation on the debts? Have they been added to the credit report with a rating? Have the LDP/GSA s been checked on all parties? Does the file contain the actual LDP/GSA printouts? Have the CAIVR # s been requested on all borrowers? Please see current Ops Tips for a full list of all parties involved in the transaction that must have LDP/GSA s checked, both purchase and refinance transactions. Has Mavent/Compliance Eagle been run? Have all Fails been corrected and Warnings corrected or addressed? Are the required pages included in the submission package? Community Property State - If veteran is married and spouse is not on loan, provide evidence of the non-purchasing spouses Social Security Number. Non purchasing spouse Community property state File must include non purchasing spouses credit report and a signed and dated borrower s authorization signed by the non purchasing spouse. All open debts to be taken against our borrower. All open federal debt, open judgments/liens of non purchasing spouse to be satisfied prior to closing. See March Ops Tips for more detail. Manual Underwrite file must contain a 12 month rental history. VOR is acceptable if from the Apt Complex or Management company. If rent is paid directly to the person who owns the home being rented, file must contain 12 months of cancelled checks.

4 Time share debt on the credit report these debts are treated as installment debts. Time shares do not have to be listed as a property in the Real Estate section of the Support orders/separation Agreement/Divorce Decree if these documents are required Do the documents provided reflect either the recording information or show evidence that the documents have been filed with the court system. Assets Have the bank statements been reviewed in full for any non-payroll deposits and/or overdraft fees? Have all atypical (atypical is a deposit of 25% or more of the combined earning of the borrower s income) deposits been documented and explained? These can no longer be backed out. Does the address on the bank statements match the address on the 1003? Are the bank statements expired? If quarterly statements, does the file contain the most recent quarterly statement? Have any accounts recently opened? If there is a party other than our borrower on the bank statement, do we have the signed and dated LOX from that party indicating the funds in the account can be utilized for this transaction unless the other party is the borrower s spouse and the file contains documentation to support the relationship? If borrower provided on line bank print outs, do they include the borrower s name, account number, the bank name and URL address and a running balance? Have the borrowers provided all pages of all bank statements, investment account statements and or 401k/IRA statements? Please note: The file must contain at least a full months bank statement in the file on each account. A fully acceptable bank print out can then be included to support any deposits or clearing of earnest money. Have all transfers from other checking and savings accounts been properly documented with all pages of all bank statements? If the transfer came from an investment account, re: ING, Fidelity, etc, does the file contain a copy of the corresponding statement for the institution? If file contains a VOD, are the corresponding bank statements in the file? If the current balances on the VOD are much greater than the ending balance on the bank statement, have the deposits been documented and explained? If money for closing is coming from proceeds of sale of current home, are the assets listed on both the 1003 and in DU? Does the file contain a copy of the contract for the sale of current home? Did the realtor provide an estimated net proceeds sheet or did the title company provide a prelim HUD reflecting estimated proceeds? Does the file contain a copy of the earnest money check, evidence it has cleared the borrower s account and an updated bank statement/printout with no gaps between the statement in the file and the printout, to reflect the current balance in the account? If the earnest money was a promissory note, does the file include a copy of the promissory note marked redeemed and a copy of the borrower s cancelled check? If it has not been redeem, when will it be redeemed or is it being removed from the contract? Have the 401k/retirement accounts been valued at 60% of balance? Stock accounts/mutual Funds valued at 70% of balance? If being used for assets to close, has the borrower provided proof of liquidation? If needed for reserves, has borrower provided documentation on the 401K that indicates the account allows hardship withdrawals? The terms of withdrawal must be from the borrower s employer, they cannot be from the company that managed the 401k. Is a gift being used for closing? Is the correct gift letter in file? Gift letters should have the 1010 warning listed on it. Is the gift letter fully executed? Does the amount of the gift on the letter match the gift check? Does the UW file contain copies of the gift check(s)? Does the file contain a copy of the donor s bank statement reflecting the withdrawal/clearing of the gift monies? Do we have the updated bank statement/printout with no gaps, to show the gift has been deposited and the new balance in the account? If the cashier s check/wire is going to closing, this will now be a PTF condition. Are assets for closing from personal accounts or business accounts? If the business is a Sole Proprietor (Schedule C), S Corp (1120S) or a Full Corporation (1120) the file must contain 6 months of business bank statement and the UW must do a cash flow analysis on the business to conclude that the withdrawal of funds will not affect the daily operation of the business. Businesses other than those listed above need additional documentation above and beyond the 6 months bank business statements. That additional information is a Letter from the CPA or tax attorney stating that the borrower has full personal use of the funds and it will not affect the viability of the company. If the CPA is unable to provide the Letter, 2 years of personal & business returns plus 24 months of business bank statements must be provided for review as the UW will then need to do a 2 year cash flow analysis If this is a CHFA Loan, does the borrower have $1000 into the transaction? Borrower cannot have any money back at the time of closing. Any monies back to the borrower will be applied as a principal reduction to the 2 nd mortgage. Sale of personal property for assets to close must be fully documented to be acceptable. File must contain 1) proof of ownership of the asset, 2) Blue Book value of the asset being sold, 3) Fully completed signed Bill of Sale and 4) evidence of receipt of funds with the deposit ticket, bank statements or a copy of the purchaser s cancelled check. Income Have all of the paystubs been reviewed? Are they dated within 30 days of application? Do the paystubs cover the most recent 30 days? Does the address on the paystubs/w-2 s match the address on the 1003? How is the borrower paid? Monthly, Semi-monthly, Bi-weekly, Weekly? Has income been calculated? Are the YTD earnings low? If so, has the borrower s employer explained why? Did the borrower change jobs during the year? Does the file contain the last paystub received from the prior employer? Is there a job gap of over 30 days that needs to be explained? If borrower(s) have a large increase in income from 2011 to 2012 and that income is needed to qualify, does the file contain a copy of the 2012 W-2 and tax transcripts?

5 Does the LES show any allotments? If so, borrower to provide a signed and dated LOX and all documentation, if applicable, to explain the allotment. Is there a job gap of 30 days or more that requires a fully signed and dated LOX from the borrower to address the situation? Are the income calculation forms, provided by CCMC, completed in full and included in the submission package? Have all of the appropriate boxes been marked so the income calculates to the bottom of the page? If 2106 expenses, was this section completed? Self-Employed borrower is the Self-employed Analysis form completed in full and in the file? Has Relay income been updated to match the income on the calculation form? If borrower has rental properties, has the Schedule E/Rental Property income/loss been calculated? For VA loans the acceptable calc is Income less expenses plus depreciation divided by 12. This figure is then the income that is applied to the property in the Real estate section of Relay. Has income been broken down as Base, OT, Commission and Bonus in Relay? This must be done for the conditions to populate correctly. Do we need the OT, Bonus, Commission to qualify or can it be a comp factor? For the average of these 3 income types, is the fully completed VOE in the file? If using Bonus and Commission, have the boxes on the VOE been checked that this income will continue? If paystubs show commission earnings and bonus earning are over 25% of total income, are the tax returns in the file? Have they been checked for 2106 Expenses and/or ownership in the company? If 2106 expenses, has income been reduced by the average of the 2106 expenses? If mileage is being added back in, current 20102IRS guideline is 23 cents per mile. The rate for 2011 is 22 cents. If a VOE was needed, was it sent to HR or Payroll? Cannot be sent Attention to a specific individual. If VOE was faxed back, has the fax header info been checked to make sure it was faxed back from our borrower s employer? If 2 different handwritings on the VOE, have both parties signed and dated the VOE? Have all corrections and areas of whiteout been initialed? Are the verbal VOE s in the file? Have the dates on the 1003 been updated to match the dates on the VVOE or Full VOE? Does file contain a true, full 2 year employment history? Are the verbals fully completed with the source utilized to confirm the employer s phone number, the phone number, person spoke to and title, start date and current position? For a self-employed borrower copy of business license, letter from CPA, Evidence of Good Standing from the Secretary of State. Business phone and address to also be confirmed with a 3 rd party source. If borrower does not have a CPA, speak to your UW about ways to document the existence of the company. RE: Letters of reference, current invoices from suppliers, etc. Have the tax return/tax transcripts been reviewed? If tax returns are required, does the file contain the complete return with all pages and schedules? Is the completed Self-employed analysis in the file with the income calculated? Do the line items of the tax returns/tax transcripts match? 2106 Expenses? Is there a schedule C, E or F listed in the returns? If a Schedule E, do the properties match the properties listed on the 1003? Read DU Findings! Supply only the returns and transcripts as required by the DU Findings. RE: 1 year returns, the same years transcripts Do the addresses on the tax transcripts match the 2 year address history on the 1003? If not, have the borrowers provided a signed and dated LOX to explain? If applicable, has the address history on the 1003 been updated? If the tax returns reflect a Partnership or S Corp on the Schedule E, have the K-1 s for each business listed on the Schedule C been provided? If borrower is self-employed and the business return is required or income from the business return is being used to qualify, the file must contain copies of the transcripts for the business returns. If borrower has filed Amended returns, file must contain a copy of the original return and transcript, a copy of the amended return and a transcript of the amended return. If the return was amended after the application was taken and that income is needed to qualify, a written explanation must be submitted and approved thru Underwriting Management. Please see the current Ops Tips for further detail and guidance. Self-employed Have borrower(s) been self-employed for more than 2 years? If self-employed less than 2 years, loan may not be approvable at this time. This is an investor suspense item. Speak to your UW. Employed by a Family Member or Family owned company Provide most recent 2 years of tax returns and transcripts, most recent 30 days of paystubs, written VOE and payroll ledger from the company CPA. If the spouse is not on the loan and the tax returns show a self-employed business for the spouse, has the borrower s income been reduced by the loss taken by spouse s business? Does file show declining income? Does the file contain a letter from the CPA explaining why? If declining income, speak to your underwriter, file may have to go to the investor for underwriting? See Ops Tips for more detail. Have you provided the 4506T transcript or W-2 transcripts? If the borrowers are straight W-2 employees, 2 years of W-2 transcripts may be provided in lieu of 2 years tax transcripts. Please see current Ops Tips for further detail and guidance. Social Security income If the borrower s Social Security benefits are taxed, the income cannot be grossed up. SS income can be grossed up only if it is not federally taxed. VA Loans Grossed up Social Security Total Grossed Up income to be on line 38 of the VA Loan Analysis. VA will not allow the total grossed up income amount when determining if the borrowers meet the residual requirements. The 15% grossed up amount will need to be listed as a debt on line 29, with an explanation in the remarks section at the

6 bottom of the form. School Teacher Is borrower paid for 9 mos or 12 mos? Does contract show how paid or has a fully completed VOE been provided with the number of months paid detailed in section 20? Annuity/IRA distribution NEW DISTRIBUTION Annuity or IRA must be set up with regular monthly disbursements and verified receipt of income with a minimum of 2 months of bank statements. Distributions which have a history of receipt may be used by conservative averaging of the distributions appearing on the tax returns. Must show 3 years continuance. Contract Does the Sales price on contract match Relay? Does the property address match Relay/USPS/Appraisal? Do the borrower names on the contract read exactly as Relay? HOA dues? Seller contributions? Personal property? Is contract complete with all amend/extends/addendums? Is the contract in the file legible? Are all parties on the loan listed on the contract? Have all parties signed the contract? Is the seller on the contract, the seller of record on title? If a LLC, is there property Flipping? Do we have evidence of the LLC s authorized signor? If bank owned, are all of the POA s in the file, do we have the name of the person signing the contract and evidence they are an authorized signor? Remember: Owner of Record is not a legitimate seller. If contract has owner of record listed as the seller, this will need to be corrected to reflect the name of the actual seller. All personal property listed in the contract to be conveyed via Bill of Sale at Zero value at the time of closing. If transaction is a Short Sale, are the lender acceptance letters in the file from the 1 st and 2 nd lender, if applicable? If the contract does not include the VA Amendatory Clause(Escape Clause), has a borrower/seller/lender/builder Amendatory clause been included in the file? Appraisal Has the appraisal been reviewed and the NOV been issued? Has the appraised value in Relay been updated to match the value given on the appraisal? Re: Seller contributions? Private Road? Well and Septic? PUD/HOA dues? Did home appraise or is there a value issue? Does borrower name appear as Any Eligible Veteran? Seller name correct? Termite state/termite inspection? Appraised As Is or are there repairs? Is case number on the VA appraisal? Is zoning legal or legal non-conforming? Does the sales history match the chain of title? Does the appraisal contain a copy of the appraiser s license? Are all comp photos included? Are there pictures of all of the bathrooms, the kitchen and living area? If home remodeled or renovated, are there pictures included to document? VA properties on a private well and septic File must contain a bacteriological/potability test for the well on each file. A septic inspection is required on all new construction transactions and on existing constructions, only if the appraiser states there is an issue with the septic system. Inspections are good for 90 days. Has the borrower been provided a copy of the appraisal? Does the file contain a signed and dated Appraisal Acknowledgement? All loan types - If the home was bank owned or winterized, was the water on at the time of inspection? If property is attached have you provided a copy of the recorded party wall agreement? If not recorded, have you provided a copy of the party wall that is being recorded at closing? The NOV s on VA Appraisals must be issued within 5 business days. Have you forwarded the notification from VA to the underwriter or ed the underwriter the case #, borrower name and our loan number so the appraisal can be printed and the NOV issued? Have you submitted the appraisal invoice to Corp Accounting for payment? The UW is not responsible for this. Was your UW s also included in the line? By doing this the appraiser will notify both you and the UW that the completed appraisal has been sent to the portal. VA new construction Is the VA Builder ID # in the file? Termite inspections if a termite inspection is required, have all pages of the inspection been provided and included in the submission package? VA New Construction does the file contain the fully completed Warranty of Completion, Builder cert to address Cabo, Solder and Flux and the Buyer not inspected cert? VA Is the VA Funding Fee correct? Is the veteran a 1 st time user of his/her VA Benefits, a subsequent user or a reservist? Is the Veteran exempt from the Funding Fee? VA Funding Fee is different in each case. If not, APR may be wrong and file will need to be re-disclosed. Does the file contain the Nearest Living Relative information, re: Full name, address, relationship and phone number. Please remember, the nearest living relative cannot be a relative that resides with the borrower(s). VA if the veteran is exempt from the VA Funding fee? This information now appears on the COE. The COE also shows the amount of the monthly VA disability pay. We no longer need a signed and date VA indebtedness letter.

7 VA Has the Eligibility Code on the COE been checked? 1 st time buyer-code is 10, Subsequent use-code is 5. Does the veteran have full eligibility or partial eligibility? If has partial eligibility has the partial eligibility worksheet been completed and is it in the file? Is your loan a Jumbo loan? Has the Jumbo worksheet been completed and in the file? VA A fully completed and a copy of the DD214 must be with the COE in the underwriting file at the time of submission VA payroll taxes How is your borrower paid? Monthly, Semi-monthly, Bi-Weekly, Weekly? Taxes need to be calculated accordingly.(calculate taxes the same as the income, re: monthly, semi-monthly, bi-weekly or weekly.) For SS, have the 2 items labeled Medicare and SSI been added together for the SS. If your borrower is self-employed, has the SS been calculated at the self-employed rate? Has maintenance been calculated at.14, using above ground square footage of the property from the appraisal? Is the fully completed Maintenance and Tax form in the file? CCMC allows the taxes to be taken from the borrower s paystub as long as the paystub is base earnings and does not need to be averaged. VA LN Analysis & VA LN Summary Are both completed in full? Does the DTI on the LN Analysis and Point/Relay match? Does your loan meet the residual requirement? If veteran is married & spouse is not on the loan, has the spouse been listed as a dependent to get DU to list the correct amount of Residual in the DU Findings. VA Condo Has the VA website been checked to make sure your complex is approved? Title Do our borrower(s) show as the insured on the prelim? Is the seller listed on the prelim, the seller that signed our contract? Do you have the completed prelim with wiring instructions, tax cert, deeds for a 12 month chain of title and closing protection letter? If property is an REO, does the chain of title include the amount the property was purchased for at the public trustee s sale? Have the monthly taxes been updated in proposed housing expense? Has the title commitment been reviewed in full? Are there issues? Is there Flipping? Does the chain of title match the sales history on the appraisal? Is the tax cert in the file for this property? Does the mortgagee clause include its successors and/or assigns? Refi Are both borrowers on the title commitment? Do we need a Quit Claim? Is a copy of the Quit Claim in the file? Insurance Does the file contain a copy of the actual insurance declaration page showing the actual premium? This is now a requirement and will not be a PTC condition. Does the effective date on the ins match the closing date? If not, has it been corrected? Is there sufficient dwelling coverage? Are the borrower s names, property address, mortgagee clause, zip code, and loan number correct? Does the mortgagee clause include its successors and/or assigns? Has the premium been paid and is a paid receipt in the file? Has the monthly ins been updated in the proposed housing expense? Please see current CCMC Hazard and Flood Guidance, last updated February 2013 for full detail and guidance for required coverage requirements and deductible requirements. Purchase with rental income being used to qualify Does ins have at least 6 months of rental loss coverage? Refi Does the ins show the premium, and the effective thru date? Is it currently due? Walls in insurance is the coverage (building coverage not personal property coverage) a replacement cost policy? This is now an investor requirement. Is the premium included in the proposed housing? Gov t loans HO-6 ins required and will be escrowed on all Condos and attached PUDs. A copy of the Master Ins dec page will also need to be in the file. Are the borrower s names, property address, the mortgagee clause and the loan number included and correct on both the master and HO-6 insurance? Is the property in a Flood Zone? Do you need Flood Ins? If so, has the monthly flood ins amount been included in the proposed housing expense? Flood certs are valid for 6 months. If in a Flood zone, has page 2 of the Flood Cert been signed and dated by the borrower at least 10 days prior to closing? This is an investor suspense item. Compliance and Misc. Are all documents in the file legible? Please review and darken or request clearer copies before submitting. Please remember Documents have to be scanned to deliver the files to the investor. Have they been read and thoroughly reviewed? Are all documents right side up? Have you put a cover letter on the file? Is the flood cert and USPS verification in the file? Processor Certs are no longer acceptable to our investors to explain issues or circumstances. Borrowers will need to provide signed and dated LOX s. CHFA Loan First Step Program Does the file contain the most recent 3 years of tax returns and were these also included in the package that was sent to CHFA? Does the file contain the ORIGINAL 401, 402 and 404? CHFA Loan Is the CHFA Score Card Form in the file? This is required on both the First Step and Home Opener programs. CHFA If property has a well and septic, does the file contain and ILC that shows were both the well and septic are located on the lot? This is a CHFA requirement. Both CHFA & CHFA with MCC If 1 st mortgage is a CHFA loan and borrowers are also requesting an MCC, have 2 files been sent to CHFA. 1package for the 1 st mortgage and another for the MCC.. There is a MCC stacking/submission

8 form on their website. Effective 1/1/2012, CHFA 1 st Step and Home Opener, will require a package for both the 1 st and 2 nd to be submitted to CHFA. There are new submission forms on the website Refis The appraisal, current payoff, title work, ins must be in the file when submitted to underwriting. Loan must also be locked and a copy of the lock sheet to be in the submission package. Have the tax and ins been reviewed and the correct amount of escrows been collected for? Is there a 2 nd lien on the property? Is it to be paid in full or subordinated? If subordinated, the completed subordination agreement must be in the file. Is there a pre-payment penalty on the payoff? If the borrower has made a payment after the loan was approved, has an updated payoff and all re-disclosure documents been submitted for an update loan approval. If spouse is not on the loan but is going to be on title, have you provided the spouse s full name on the closing transmittal? If UW requested corrections, have all corrections been made? If something in the file has changed and corrections need to be made does re-sub package include the new VA Loan Analysis and the new 1003 and a note to let the UW know what was changed and/or corrected? Was any color of highlighter, other than Yellow, used on any documents in the file? If so, please make a new, legible copy of those documents and put in the file, as during scanning these areas will be blacked out. Has all pertinent information in the file been circled? RE: Sales price, seller paid costs, atypical deposits that have been explained, etc. Are all borrower LOX s in letter form or in an ? If in an do NOT use. Borrower will need to provide signed and dated LOX s to address each individual situation. Are all documents in the file in date order, most recent document on the top? RE: Counter proposals and amend/extends on top of the contract, 2012 transcripts on top of the 2011 transcripts, paystubs and bank statements in date order with the most recent on top of the older documents. POA cannot be used to sign initial documents. POA can be used to sign closing documents as long as 1 borrower to the transactions signs the documents. If veteran is not at closing, must have an Alive and Well letter completed on the day of closing. EXCEPTION: An active duty service member that is deployed can use a POA for both initial and closing docs. Must also have an alive and well letter on the day of closing; Last update: 8/23/2013

9