CONVENTIONAL AND GOVERNMENT GUIDELINES. Revised of 24

Transcription

1 CONVENTIONAL AND GOVERNMENT GUIDELINES Revised of 24

2 Index PROGRAM NAME PROGRAM NUMBER DESCRIPTION PAGE # CONFORMING FIXED * CONVENTIONAL FANNIE MAE 3 My Community Mortgage * FANNIE MAE MY COMMUNITY PROGRAM 6 HIGH BALANCE FIXED * FANNIE MAE LOANS WITH HIGHER LOAN AMTS 7 DU REFI PLUS * FANNIE MAE HARP 8 FHLMC * CONVENTIONAL FREDDIE MAC 9 FHLMC SUPER CONFIRMING * FREDDIE MAC LOANS WITH HIGHER LOAN AMTS OPEN ACCESS * FREDDIE MAC HARP 2 FHA STANDARD * FHA 4 FHA STREAMLINED * STREAMLINED FHA 7 VA * VA 9 USDA * USDA 22 * Loans will fall under multiple program numbers Revised of 24

3 Occupancy Primary CONF FIXED PURCHASE RATE/TERM REFINANCE CASH-OUT REFINANCE Unit FICO Loan Amount LTC/CLTV Occupancy Units FICO Loan Amount LTV/CLTV Occupancy Units FICO Loan Amount LTV/CLTV $47,000 97% $47,000 97% $47,000 80% 2 $533,850 85% 2 $533,850 85% 2 $533,850 3 Per DU Primary Per DU Primary Per DU $645,300 3 $645,300 3 $645,300 75% 75% 75% 4 $80,950 4 $80,950 4 $80,950 Second Home Per DU $47,000 90% Second Per DU $47,000 90% Second Per DU $47,000 75% $47,000 85% $47,000 75% $47,000 75% Investment 2 $533,850 2 $533,850 2 $533,850 Per DU Investment Per DU Investment Per DU 3 $645,300 75% 3 $645,300 70% 3 $645,300 70% 4 $80,950 4 $80,950 4 $80,950 For LTV >95%: Bwr must be a first time homebuyer for purchase transactions. For Rate/Term refinances, Fannie Mae must be the owner of the existing mortgage. Document Type As determined and evaluated by DU; All loans must receive Approve/Eligible Finding and meet QM guidelines Min 620 FICO for LTV 80%, Min 660 for LTV > 80%. The mortgage/rental rating cannot have any 60 day lates in previous 2 months; All delinquencies require a satisfactory Credit Score & History explanation. Mortgage & Rental History Per DU Findings, however the mortgage/rental rating cannot have any 60 day lates in previous 2 months; All delinquencies require a satisfactory explanation. Bankruptcy Chapter 7 or discharged 4 years; Chapter 3 discharged 2 years or dismissed 4 years; Multiple BK filings 5 years if more than one filing in previous 7 years Foreclosure None in last 7 years; none in the last 3 years with documented extenuating circumstances & max 90% LTV/CLTV, Primary Residence, Purchase or Rate/Term Refinance only. Deed-in-Lieu/ Short Sale None in last 4 years; none in the last 2 years with documented extenuating circumstances Coll/Charge-Off/Judgment Past due accounts that have not gone to collection must be brought current. See B of FNMA selling guide regarding open collections * Per DU; All funds used to close must be disclosed on 003 and input into DU; Cash-on hand not allowed; Single deposits >25% of combined gross mo. income must be sourced & Assets explained. Verification requirements per DU. Bank statements cannot be > 45 days from the loan app. date or more recent/supplemental bank-generated form required Reserves See section B of FNMA selling guide ** Per DU; Wage Earners current paystub with YTD and most recent W-2; (paystub must be dated no earlier than 30 days from initial loan application date). Current two years tax returns required on all self employed borrowers and commission based borrowers. 4506T to be signed and executed Income Employment 2 year history; VVOE 0 business days from Note date for wage earners; Self-employed requires valid third party verification (CPA, Business License) w/in 30 calendar days of Gift Funds Gift funds not allowed on investment properties. No minimum contribution required if subj is primary residence. 5% contribution required on 2nd homes with LTV > 80% Seller Contributions Primary Residence or 2nd Home >90% LTV = 3%; % LTV = 6%; 75% LTV = 9%; Investment Property: 2%. Financed Properties No maximum when subj prop is primary residence; see MULTIPLE FINANCED PROPERTIES section for borrowers with 5-0 financed properties Mortgage Insurance Borrower Paid:- monthly/single premium (financing of single premium ok); Lender Paid: single premium only Revised of 24

4 Refinance Transactions Appraisals Florida Condominium CONF FIXED (cont d) Properties listed for sale in last 2 months require acceptable proof of being taken off the market and borrower must provide written confirmation of intent to occupy. A continuity of obligation must be demonstrated to be eligible for a rate/term and/or cash-out refinance. Per DU on owner-occupied properties. Market Condition Addendum is required on all appraisals. Appraisals must meet UAD & AIR requirements. New/newly converted projects require PERS approval. Established projects w/ PERS or Full Review no LTV restrictions; Limited/CPM Review: Max 75% LTV primary residence and max 70% LTV second home. Investment property requires PERS or Full Review; Limited/CPM Review ineligible. Qualifying Ratios Per DU Findings, minimum loan amount $60,000 Property Flips Allowed. Properties re-sold 90 days from acquisition require GreenBox prior approval. * Collection/Charge-off accts do not have to be paid off if subj is unit primary. Collections/Charge-offs totaling > $5,000 must be paid off when subj is 2-4 unit primary or 2nd home. Collections/Charge-Offs totaling > $,000 or individual acct $250 must be paid when subj is investment ** If subject is investment, 6mo reserves required on subj along with 2mo on every financed, non-owner occupied property. If subj is a 2nd home, 2mo reserves required on subj along with 2mo on every financed, non-owner occupied property. If bwr owns 5-0 financed properties, 6mo reserves are required on subj prop along with 6mo reserves on every financed, non-owner occupied property. If subj is 2-4 unit, 6mo reserves required regardless of occupancy MANUFACTURED HOUSING Transaction Type Occupancy Units Maximum LTV/CLTV FICO Maximum Cash Back Purchase and Limited Primary 95% unit N/A Cash-Out Refinance Second Home 90% 620 Cash-Out Primary unit; Term 20 yrs only 65% $50,000 Must have both a HUD Data Plate and the HUD Certification Label Must not have been previously installed or occupied at any other site or location Property Compliance Ineligible Properties Must be a one-unit dwelling that is legally classified as real property Towing hitch, wheels, and axles must have been removed Bwr must own the land on which the manufactured home is situated on (cannot be on leasehold land) Must be at least 2 ft wide with minimum 600 sq ft gross living area Must be built after June 5, 976 Must be attached to a permanent foundation and permanently connected to a septic tank or sewage system, and to other utilities in accordance to local and state requirements Single-width manufactured homes Investment properties Properties encumbered with private transfer fee covenants Homes located on leasehold estates Manufactured homes located in a condo or co-op project TX 50(a)(6) Revised of 24

5 Appraisal Assets Appraisal to be completed on form 004C Appraiser must use a minimum of three comparable sales of similar manufactured homes Stand alone VOD not acceptable. Must be accompanied by at least one current bank statement Need an LOE and source all large deposits. Large deposits are considered as deposits 25% of the bwr's qualifying income Income Stand alone VOE not acceptable. Must be accompanied by paystub Max Financed Properties Maximum of four financed properties including the subject property Property Flipping Ineligible. Seller must have owned the property a minimum of 90 days from application date Loan Amounts Minimum loan amt $45,000. Maximum loan amt $47,000 (subject to county loan limits) CONF FIXED (cont d) MULTIPLE FINANCED PROPERTIES (5-0 FINANCED PROPERTIES) Conforming LTV/CLTV/HCLTV Ratios High Balance LTV/CLTV/HCLTV Ratios Transaction Type Units Fixed ARM Fixed ARM Purchase and 75% 65% 65% 65% Limited Cash-Out % 60% 65% 60% 70% 60% N/A N/A Cash Out* % 60% N/A N/A FNMA B *Cash Out is only available for properties that meet delayed financing guidelines (see B ) Minimum FICO 720 Credit Score & History 0x30 within the last 2 months Primary Residence The primary residence is taken into account when calculating the amount of financed properties owned by the borrower, however reserves are not required for the primary Bankruptcy and No Bankruptcy or Foreclosure within the last seven (7) years Reserves DU Refi Plus Properties Included in Determining how Many Financed Properties are Owned by the Borrower Properties NOT Included in Determining how Many Financed Properties are Owned by the Borrower Six (6) months reserves on subject property and six (6) months reserves on each additional financed second home / non owner occ property. The AUS is not able to determine the exact number of financed properties the borrower owns, therefore the amount of funds required for reserves must be manually calculated DU refi plus loans are exempt from the multiple financed properties rules Joint ownership of residential real estate Properties held in the name of a C-Corp or S-Corp where financing is in the name of the borrower Obligation of a mortgage debt for a residential property regardless of whether or not the bwr is an owner of the property Properties held in the name of an LLC or partnership where the bwr owns 25% or more of the partnership, regardless of the obligor on the mortgage Manufactured homes where the land on which it is situated is titled as real property Commercial real estate Multifamily properties consisting of more than four dwelling units Properties held in the name of a C-Corp or S-Corp where financing is in the name of the corporation or S-Corp Timeshare Vacant land Properties held in the name of an LLC or partnership where the bwr owns less than 25% of the partnership, and the financing is in the name of the LLC or partnership Manufactured homes on a leasehold estate not titled as real property (chattel lien on the home) Revised of 24

6 Community Mortgage Transaction Type Number of Units Maximum LTV/CLTV/HCLTV Credit Purchase Unit 97/97/97% S Limited Cash-Out Unit 95/95/95% 620 For purchase transactions with LTVs > 95.00%, at least borrower must be a first-time homebuyer CONF FIXED (cont d) Standard conventional guidelines apply with the following differences: Occupancy Primary Residence. Note: Escrow Holdbacks not allowed. Loan closed during the Right of Redemption period are not eligible Loan Amount Minimum Loan Amount $50,000 Maximum Loan Amount $47,000 For LTVs 95.00%, if all borrowers are first-time homebuyers, at least one borrower must complete a Homebuyer Counseling course Homebuyer Eduction For LTVs > 95.00%, at least one borrower must always complete a Homebuyer Counseling Course A certificate of completion must be obtained from one of the following: Telephone counseling by an Envoy approved mortgage insurance company Face-to-face workshop by HUD approved homebuyer education provider, or from a City, Multiple Loans Borrower may not have ownership interest in any other residential dwelling at the time of loan closing (other than principle residence if a refinance) Eligible Borrowers US Citizen who are Natural Persons, Permanent Resident Alien, Non-Permanent Resident Ineligible Borrowers Foreign Nationals, Non-Occupant Co-Borrowers Geographic Restrictions Alaska, Guam, Hawaii, Nevada, Puerto Rico, US Virgin Islands Texas 50(a)(6) loans are not eligible Qualifying Rate More restrictive of AUS or 50%. Qualify at Note Rate Reserves Minimum of month of reserves or AUS findings, whichever is greater Gift Funds Gift funds may be used as an acceptable source of funds for down payment, closing costs, or reserves provided the funds are from an acceptable donor Seller Contributions LTV's 90.0% % Maximum is 3% LTV's 80.0% % Maximum is 6% In determining whether a mortgage is eligible under the borrower income limits, the income from all of the borrowers who will be listed on the mortgage Note must be included. Income is based on the borrower(s), not total household income. The borrower s income is limited to 00% of the area median income (AMI) in which the property is located, except: An income limit of 5% of the AMI for non-metropolitan counties, or The following high cost areas: Income Limits -20% of AMI in the Portland-Vancouver-Hillsboro, OR-WA MSA -20% of AMI in the Seattle-Tacoma-Bellevue, WA MSA -35% of AMI in the Boston-Cambridge-Quincy, MA-NH MSA -40% of AMI in the State of California -65% of AMI in the New York-Northern New Jersey-Long Island, NY-NJ-PA MSA MI Coverage Credit Ineligible Properties Appraisal 8% coverage for LTV's % 6% coverage for LTV's % 2% coverage for LTV's % 6% coverage for LTV's % Financed MI is allowed / Split premium MI is allowed Non-traditional Credit not allowed. Mortgage Lates: No 30-day late payments in past 2 months regardless of DU findings. Foreclosure: 84 months, regardless of DU Leaseholds Non-Warrantable Condos Manufactured homes Cooperative housing Condotels Timeshare units Deed restricted properties "On Frame modular homes Auction properties The appraisal cannot exceed 60 days from the Note date at time of purchase or a 004D Appraisal Update will be required indicating that the value has not declined Revised of 24

7 Occupancy HIGH BALANCED FIXED PURCHASE RATE/TERM FINANCE CASH-OUT REFINANCE Units FICO Loan Amount LTC/CLTV Occupancy Units FICO Loan Amount LTV/CLTV Occupancy Units FICO Loan Amount LTV/CLTV $625,500 90% $625,500 90% Per DU $625,500 60% Primary 2 $800,775 2 $800,775 2 Per DU Primary Per DU Primary 3 $967,950 75% 3 $967,950 75% 3 n/a n/a n/a 4 $,202,925 4 $,202,925 4 Second Home Per DU $625,500 $625,500 65% Second Per DU $625,500 $625,500 65% Second n/a n/a n/a Investment 2 $800,775 2 $800,775 2 Per DU 65% Investment Per DU 65% Investment 3 $967,950 3 $967,950 3 n/a n/a n/a 4 $,202,925 4 $,202,925 4 Document As determined and evaluated by DU; All loans must receive Approve/Eligible Finding and meet QM guidelines Credit T Score & Min 620 FICO for LTV 80%, Min 660 for LTV > 80%. DU Findings with Approve/Eligible must be present. Mtg & Rental Per DU Findings, however the mortgage/rental rating cannot have any 60 day lates in previous 2 months; All delinquencies require a satisfactory explanation. Bankruptcy Hi t Chapter 7 or discharged 4 yrs; Chapter 3 discharged 2 yrs or dismissed 4 yrs; Multiple BK filings 5 yrs if more than one filing in previous 7 yrs Foreclosure None in last 7 yrs; none in last 3 years with documented circumstances & max 90% LTV/CLTV, Primary Residence, Purchase or Rate/Term Refinance only. Deed-in- None in last 4 years; none in the last 2 years with documented extenuating circumstances Coll/Charge- Past due accounts that have not gone to collection must be brought current. See B of FNMA selling guide regarding open collections CCC's Per DU Findings Assets Per DU; All funds used to close must be disclosed on 003 and input into DU; Cash-on hand not allowed; Single deposits >25% of combined gross mo. income must be sourced & explained. Verification requirements per DU. Bank statements cannot be > 45 days from the loan app. date or more Reserves Generally as determined by DU. See section B of FNMA selling guide Income Per DU; Wage Earners current paystub with YTD and most recent W-2; (paystub must be dated no earlier than 30 days from initial loan application date). Two years current tax returns required on all self employed borrowers and commission based income borrowers. 4506T to be signed and executed Employment 2 year history; VVOE 0 business days for wage earners or valid third party verification (CPA, Business License) for self employed w/i 30 calendar days of Note Gift Funds Gift funds not allowed on investment properties. Gift funds allowed on primary and 2nd homes: No minimum contribution required if subj is primary residence. 5% contribution required on 2nd homes with LTV > 80% Seller Primary Residence or 2nd Home >90% LTV = 3%; % LTV = 6%; 75% LTV = 9%; Investment Property: 2%. Financed No maximum when subj prop is primary residence; Max 0 financed properties when subj is 2nd home or investment. Max. 4 loans w/greenbox Mortgage Borrower Paid:- monthly/single premium (financing of single premium ok); Lender Paid: single premium only Properties listed for sale in last 2 months require acceptable proof of being taken off the market and borrower must provide written confirmation of intent to occupy. A continuity of Refinance Transactions obligation must be demonstrated to be eligible for a rate/term and/or cash-out refinance. Appraisals As determined by DU on all properties. Market Condition Addendum is required on all appraisals. Appraisals must meet UAD & AIR requirements. A Field Review is required if the loan amount is > $625,500 and the LTV, CLTV, or HCLTV is > 80%; or the property is valued at $,000,000 and the LTV, CLTV, or Qualifying Ratios As determined by DU Property Flips Allowed. Properties re-sold 90 days from acquisition require GreenBox prior approval. Revised of 24

8 DU REFI PLUS Occupancy Units FICO Agency Loan Amount Agency High Balance LTV/CLTV Primary $47,000 Not Allowed $625, $533,850 $800,775 3 $645,300 $967,950 4 $80,950 $,202,925 75%/ N/A Second Home 620 $47,000 $625,500 75%/ N/A Investment Refer to Program Parameter Topic Refer to Program Parameter Topic 75%/ N/A Document Type As determined and evaluated by DU; All loans must receive Approved/Eligible Finding and meet QM guidelines; Manual underwriting is ineligible. Credit Score & History Min. 620 FICO. Tri-merged credit report required for all borrowers; Trade line requirements as determined by DU; Middle of 3 scores is used; or valid score is used Mtg./Rental History 0 x 30 in the previous 2 months. x 30 previous 2 months on an exception basis up to 25%. Bankruptcy & Foreclosure Fannie Mae standard waiting periods apply regardless of DU Findings. Exceptions considered on case-by-case basis. CCC's Per DU Deed-in-Lieu/ Short Sale None in last 4 years; none in the last 2 years with documented extenuating circumstances -Max. LTV per guideline regardless of DU Findings Exceptions considered. Coll/Chargeoffs/Judgments Past due accounts that have not gone to collection must be brought current. See standard FNMA selling guide (B ) for collection/charge-off payoff requirements Qualifying Ratios & Reserves Assets Qualifying ratios per DU except HPMLs: max 45%, no exceptions. Reserves per DU. Per DU; All funds used to close must be disclosed on 003 and input into DU; Cash-on hand is not acceptable Verify. of funds 2 months all pages of the most recent bank or financial stmts or VOD with 2 months avg. balance. Large deposits do not need to be sourced Per DU; Wage Earners current paystub with YTD and most recent W-2 ; Self-employed tax returns that include min. 2 mo. self-employed income. 4506T to be signed and executed Income Employment 2 year history; VVOE 0 days from date of note & re-verification within 5 days of funding; Self-employed require valid third party verification (CPA, Business License). Financed Properties Unlimited Borrower must receive a benefit from the refinance as follows: Reduced monthly principal & interest payment; A reduced interest rate; A reduced amortization term; A more stable Benefit to Borrower loan product (ARM to FIXED), interest only to fully amortized, a 30 year to a 0,5, 20 year term allowing borrower to build equity more quickly. Properties listed for sale in last 6 months require proof of being taken off market and borrower must provide written confirmation of intent to occupy property. Max cash back $ Refinance Transactions Max 25% LTV for ARM Loans with existing MI eligible for following: GE, MGIC, Radian, UG. Original MI company provides the MI Modification. Loans with existing LPMI must be single premium; monthly Mortgage Insurance or annual LPMI ineligible. Appraisals Per DU; value must be provided on 003 and that value is entered in DU. The 003 value and the value entered in DU must match. Revised of 24

9 Occupancy Primary FHLMC PURCHASE RATE/TERM FINANCE CASH-OUT REFINANCE Units FICO Loan Amount LTC/CLTV Occupancy Units FICO Loan Amount LTV/CLTV Occupancy Units FICO Loan Amount LTV/CLTV $47,000 95% $47,000 95% $47,000 80% 2 $533,850 2 $533,850 2 $533,850 Per LP Primary Per LP Primary Per LP 3 $645,300 80% 3 $645,300 80% 3 $645,300 75% 4 $80,950 4 $80,950 4 $80,950 Second Home Per LP $47,000 85% Second Per LP $47,000 85% Second Per LP $47,000 75% $47,000 85% $47,000 $47,000 75% Investment 2 $533,850 2 $533,850 2 $533,850 Per LP Investment Per LP 75% Investment Per LP 3 $645,300 75% 3 $645,300 3 $645,300 70% 4 $80,950 4 $80,950 4 $80,950 Document Type As determined and evaluated by LP; All loans must receive STREAMLINED ACCEPT or "STANDARD ACCEPT" Finding and meet QM guidelines. No manual underwrites Credit Score & History Min 620 FICO for LTV 80%, Min 660 for LTV > 80%. The mortgage/rental rating cannot have any 60 day lates in previous 2 months; All delinquencies require a satisfactory Mortgage & Rental History Per LP Findings, however the mortgage/rental rating cannot have any 60 day lates in previous 2 months; All delinquencies require a satisfactory explanation. Adverse Credit No foreclosures, deed-in-lieu of foreclosure, short sale or bankruptcy within the last 7yrs. Three years for foreclosure with extenuating circumstances. Two years for deed-in-lieu of foreclosure, short sale, or bankruptcy with extenuating circumstances Coll/Charge-Off/Judgment Past due accounts that have not gone to collection must be brought current. See B of FNMA selling guide regarding open collections * CCC's Assets Per LP Findings Per LP; All funds used to close must be disclosed on 003 and input into LP; Cash-on hand not allowed; Single deposits >0% of combined gross mo. income must be sourced & explained. Verification requirements per LP. Bank statements cannot be > 45 days from the loan app. date or more recent/ supplemental bank-generated form required Reserves Subj Investment requires 6mo PITIA reserves and 2mo reserves on all other non-owner financed properties. Subj 2nd homes require 2mo reserves on subj and all non-owner Income Per LP; Wage Earners current paystub with YTD and most recent W-2; Current two years tax returns required on commission based borrowers. Current year tax returns required for Self Employed borrowers. Employment 2 year history; VVOE 0 business days from Note date for wage earners; Self-employed requires valid third party verification (CPA, Business License) w/in 30 calendar days of Note Gift Funds Gift funds not allowed on investment properties. No minimum contribution required if subj is primary residence. 5% contribution required on 2nd homes with LTV > 80% Seller Contributions Primary Residence or 2nd Home >90% LTV = 3%; % LTV = 6%; 75% LTV = 9%; Investment Property: 2%. Financed Properties No maximum when subj prop is primary residence; Max 4 financed properties when subj is 2nd home or investment Mortgage Insurance Borrower Paid:- monthly/single premium (financing of single premium ok); Lender Paid: single premium only Properties listed for sale in last 2 months require acceptable proof of being taken off the market and borrower must provide written confirmation of intent to occupy. A continuity of Refinance Transactions obligation must be demonstrated to be eligible for a rate/term and/or cash-out refinance. Appraisals Per LP on owner-occupied properties. Market Condition Addendum is required on all appraisals. Appraisals must meet UAD & AIR requirements. Revised of 24

10 Florida Condominium FHLMC (cont d) New/newly converted projects require PERS approval. Established projects w/ PERS or Full Review no LTV restrictions; Limited/CPM Review: Max 75% LTV primary residence and max 70% LTV second home. Investment property requires PERS or Full Review; Limited/CPM Review ineligible. Qualifying Ratios Per LP Findings, minimum loan amount $60,000 Property Flips Allowed. Properties re-sold 90 days from acquisition require GreenBox prior approval. Other requirements No 0yr fixed program. Subj Investment properties require 6 months rent loss insurance. CA condos require earthquake insurance * Collection/Charge-off accts do not have to be paid off if subj is unit primary. Collections/Charge-offs totaling > $5,000 must be paid off when subj is 2-4 unit primary or 2nd home. Collections/Charge-Offs totaling > $,000 or individual acct $250 must be paid when subj is investment Revised of 24

11 OPEN ACCESS Occupancy Units FICO Agency Loan Amount Agency High Balance LTV/CLTV Primary $47,000 Not Allowed $625, $533,850 $800,775 3 $645,300 $967,950 4 $80,950 $,202, %/ N/A* 25%/ N/A Second Home 620 $47,000 $625,500 25%/ N/A Investment Refer to Program Parameter Topic Refer to Program Parameter Topic 25%/ N/A Document Type As determined and evaluated by LP; All loans must receive Streamlined Accept or "Standard Accept" Finding and meet QM guidelines; Manual underwriting is ineligible. Credit Score & History Min. 620 FICO. Tri-merged credit report required for all borrowers; Trade line requirements as determined by DU; Middle of 3 scores is used; or valid score is used Mtg./Rental History 0 x 30 in the previous 2 months. x 30 previous 2 months on an exception basis up to 25%. Bankruptcy & Foreclosure FHLMC standard waiting periods waiting periods apply regardless of LP Findings. Exceptions considered on case-by-case basis. CCC's Per LP Deed-in-Lieu/ Short Sale None in last 2 years Max. 80% LTV; None in last 4 years-max. 90% LTV; None in last 7 years-max. LTV per guideline regardless of LP Findings Exceptions considered. Coll/Chargeoffs/Judgments Past due accounts that have not gone to collection must be brought current. See standard FNMA selling guide (B ) for collection/charge-off payoff requirements Qualifying Ratios & Qualifying ratios per LP except HPMLs: max 45%, no exceptions. Reserves per LP. Reserves Assets Per LP; All funds used to close must be disclosed on 003 and input into LP; Cash-on hand is not acceptable Verify. of funds 2 months all pages of the most recent bank or financial stmts or VOD with 2 months avg. balance. Large deposits do not need to be sourced Income Per LP; Wage Earners current paystub with YTD and most recent W-2 ; Self-employed tax returns that include min. 2 mo. self-employed income. 4506T to be signed and executed Employment 2 year history; VVOE 0 days from date of note & re-verification within 5 days of funding; Self-employed require valid third party verification (CPA, Business License). Financed Properties Unlimited Borrower must receive a benefit from the refinance as follows: Reduced monthly principal & interest payment; A reduced interest rate; A reduced amortization term; A more stable Benefit to Borrower loan product (ARM to FIXED), interest only to fully amortized, a 30 year to a 0,5, 20 year term allowing borrower to build equity more quickly. Properties listed for sale in last 6 months require proof of being taken off market and borrower must provide written confirmation of intent to occupy property. Max cash back Refinance Transactions $ Proceeds of loan can only pay related closing costs, financing costs and prepaids/escrows not to exceed the lesser of $5 of the current unpaid principal balance of the Loans with existing MI eligible for following: GE, MGIC, Radian, UG. Original MI company provides the MI Modification. Loans with existing LPMI must be single premium; monthly Mortgage Insurance or annual LPMI ineligible. Per LP; value must be provided on 003 and that value is entered in LP. The 003 value and the value entered in LP must match. Value to be based on HVE value from LP Appraisals provided value is given a MEDIUM or HIGH confidence value and a standard deviation no greater than 0.20 on LP Findings Revised of 24

12 FHLMC SUPER CONFORMING Occupancy PURCHASE RATE/TERM FINANCE CASH-OUT REFINANCE Units FICO Loan Amount LTC/CLTV Units FICO Loan Amount LTV/CLTV Units FICO Loan Amount LTV/CLTV >75% LTV >75% LTV >70% LTV $625,500 90% $625,500 90% 75% LTV % LTV % LTV $625,500 75% Primary 2 $800,775 2 $800,775 2 $800, $967,950 75% $967,950 75% $967,950 65% 4 $,202,925 4 $,202,925 4 $,202,925 Second Home >75% LTV >75% LTV $625,500 80% 75% LTV % LTV $625,500 80% 700 $625,500 65% >75% LTV >75% LTV $625,500 80% 75% LTV % LTV $625,500 75% $625,500 Investment 2 $800,775 2 $800, $800,775 65% $967,950 70% $967,950 70% 3 $967,950 4 $,202,925 4 $,202,925 4 $,202,925 Document Type As determined and evaluated by LP; All loans must receive STREAMLINED ACCEPT or "STANDARD ACCEPT" Finding and meet QM guidelines. No manual underwrites Credit Score & History The mortgage/rental rating cannot have any 60 day lates in previous 2 months; All delinquencies require a satisfactory explanation. Mortgage & Rental History Per LP Findings, however the mortgage/rental rating cannot have any 60 day lates in previous 2 months; All delinquencies require a satisfactory explanation. No foreclosures, deed-in-lieu of foreclosure, short sale or bankruptcy within the last 7yrs. Three years for foreclosure with extenuating circumstances. Two years for deed-in- Adverse Credit lieu of foreclosure, short sale, or bankruptcy with extenuating circumstances Coll/Charge-Off/Judgment Assets Reserves Income Employment Past due accounts that have not gone to collection must be brought current. Collection/Charge-off accts do not have to be paid off if subj is unit primary. Collections/Chargeoffs totaling > $5,000 must be paid off when subj is 2-4 unit primary or 2nd home. Collections/Charge-Offs totaling > $,000 or individual acct $250 must be paid when subj is investment Per LP; All funds used to close must be disclosed on 003 and input into LP; Cash-on hand not allowed; Single deposits >0% of combined gross mo. income must be sourced & explained. Verification requirements per LP. Bank statements cannot be > 45 days from the loan app. date or more recent/ supplemental bank-generated form Subj Investment requires 6mo PITIA reserves and 2mo reserves on all other non-owner financed properties. Subj 2nd homes require 2mo reserves on subj and all non-owner financed properties Per LP; Wage Earners current paystub with YTD and most recent W-2; Current two years tax returns required on commission based borrowers. Current year tax returns required for Self Employed borrowers. STANDARD ACCEPT approvals require 2 yrs documentation for wage earner and self employed bwrs. 4506T to be signed and executed. Rental income requires 2yrs mgmt history 2 year history; VVOE 0 business days from Note date for wage earners; Self-employed requires valid third party verification (CPA, Business License) w/in 30 calendar days of Note Gift Funds Gift funds not allowed on investment properties. No minimum contribution required if subj is primary residence. Seller Contributions Primary Residence >90% LTV = 3%; Primary Residence and 2nd Homes % LTV (max 80% on 2nd home) = 6%; 75% LTV = 9%; Investment Property: 2%. Revised of 24

13 Financed Properties No maximum when subj prop is primary residence; Max 4 financed properties when subj is 2nd home or investment FHLMC SUPER CONFORMING (cont d) Mortgage Insurance Borrower Paid:- monthly/single premium (financing of single premium ok); Lender Paid: single premium only Properties listed for sale in last 2 months require acceptable proof of being taken off the market and borrower must provide written confirmation of intent to occupy. A Refinance Transactions continuity of obligation must be demonstrated to be eligible for a rate/term and/or cash-out refinance. Per LP on owner-occupied properties. Market Condition Addendum is required on all appraisals. Appraisals must meet UAD & AIR requirements. Field review required when Appraisals LTV > 75% and appraised value is $00,000,000 New/newly converted projects require PERS approval. Established projects w/ PERS or Full Review no LTV restrictions; Limited/CPM Review: Max 75% LTV primary Florida Condominium residence and max 70% LTV second home. Investment property requires PERS or Full Review; Limited/CPM Review ineligible. Qualifying Ratios Maximum DTI 45%, minimum loan amount $47,00 Other requirements No 0yr fixed program. Subj Investment properties require 6 months rent loss insurance. CA condos require earthquake insurance Revised of 24

14 PURCHASE RATE/TERM REFINANCE CASH-OUT REFINANCE Occupancy Units FICO Loan Amount LTV/CLTV 2 LTV/CLTV2/3 LTV/CLTV2/3 Primary Primary $47,000 2 $533, $645,300 4 $80,950 $625, PURCHASE 2 & RATE/TERM $800,775 3 $967, CASH OUT $,202, % 97.75% / 97.75% 85% / 85% High Balance 96.50% 97.75% / 97.75% 85% / 85% Reference:. Minimum loan amount $60,000. Maximum loan limits by geographic region can be located at: 2. LTV is before UFMIP 3. FICO scores between are limited to maximum LTV of 90% Doc Type Credit Score & History RETAIL ONLY Full Doc. All loans must receive Approve/Eligible Finding and meet QM guidelines. Escrow/Impound Account required on all loans. Bwr(s) w/ insufficient credit history = max DTI of 3/43% on occupant bwr only & 2 mos. reserves req (gift funds not allowed). Bwr's with FICO scores between require: Must have DU Approve/Eligible Homebuyers Education is required (Purchase transactions) - GFE Approved education courses through MGIC and Radian FHA STANDARD Tradeline Requirements Mtg./Rental History Bankruptcy Foreclosure & CCC s Deed-in-Lieu/Short Sale Collection/Chargeoffs/Judgments Trade line req per DU Findings; Manual downgrade = Min. 3 tradelines, each with a 2 month history and of the 3 must have been active within the last 24 months. Per DU Findings. Max x30 in last 2 months on purchase or rate/term refinance allowed at underwriter discretion for extenuating circumstances. Chapter 7 & discharged 2 years; Chapter 3 discharged 2 years or dismissed 2 years. Borrower must have re-established and/or re-affirmed credit in all cases. None in last 3 years. Letter of exp required. No mortgage/rental or installment late payments allowed after foreclosure. CCC s = Must be completed year. None in last 3 years. Letter of explanation required. No mortgage/rental or installment late payments allowed after Deed-in-Lieu/Short Sale. DU approval required. Collections/Charge-offs: Cumulative of all borrowers < $2,000 no action required; $2,000 payoff prior to/ at close, or in payment plan (include pmt in DTI), or 5% of outstanding bal include in DTI calc. Judgments must be paid off or in repmt plan with a min of 3 mos. payments paid as agreed. Non-bwr spouse collections included in Community Property states. Non-Purchasing Spouse Credit report with debts to be included in bwr s ratios when bwr s reside in community property state or subject property is located in a community property state. Ratios & Seller Contribution Ratios determined by DU 660; FICO max 43%.Seller Contributions: Max. 6% on the < of sales price/actual costs. Revised of 24

15 Assets RETAIL ONLY FHA STANDARD (cont d) Per DU Findings. Manual=standard verification. All funds used to close must be disclosed on 003 and input into DU; Cash-on hand is not acceptable; Verification required on all earnest money deposits that exceed 2% of sales price and any large deposit > 2% of purchase price on purchase transactions/appraised value on refi transactions. * Loans must be complete with all conditions cleared by the 0th of the month if the loan is expected to close in the same month Reserves Borrower Eligibility Income Employment Down Payment & Gifts Financed Properties Refinance Transactions Secondary Financing Property Flips Manual Underwrites -2 units reserves not required; 3-4 units 3 months PITIA and must pass self-sufficient test (net rental to PITI). Reserves cannot be from a gift. Manually underwritten loans require mo. reserves for -2 units and 3 months reserves for 3-4 units Must have social security number US Citizen Permanent resident alien with proof of legal residency Non permanent resident alien Non-Occupying Co-Borrower (Maximum 75% LTV if not a qualified family member. Subj must be one unit property if LTV > 75%) Section 8 ineligible Non residents not permitted Texas 50(a)(6) ineligible Only one FHA loan to a borrower (exception: Non Occupant Co bwr has current FHA loan; Relocation) Per DU; Wage earners- current 30 paystub with YTD earnings and most recent W-2; Self-employed -tax returns that include min 2 months s/e income. 4506T to be signed and executed Complete 2 year employment history; VVOE 0 days from date of note (reverse look up or 4 directory as part of VVOE); Self-employed must have valid third party verification (CPA, Business License) and reverse look up or 4 directory w/in 30 days of the note Min. 3.5% req d from borrower s own funds or an acceptable gift donor; Gift ltr, donor bank stmt (source large deposits) and transfer of gift funds. Owner-Occupied Properties unlimited. GreenBox maximum exposure of 2 loans per borrower. Properties listed for sale in last 2 mo. require proof being taken off market prior to app date. Cash-out refi.= listing cancelled, expired or withdrawn => 80 days prior to app date. Continuity of Obligation must be demonstrated to be eligible for rate/term and/or cash-out refi. R/T= payoff st. lien, Jr. lien >2 mo. old & HELOC s w/no draws in recent 2 mo. Max. cash back=$500. Cash- out=2 mo. seasoning use appraised value; 7-2 mo. Use lower of 85% of appraised value or sales price; < 6 mo. Not permitted. Cash out not allowed if borrower has been delinquent in last 2 months. Government Agencies eligible: Max combined loan-to-value 00% of cost to acquire the property. (Note: The cost to acquire the property is the sales price + borrower closing costs, discount points, repairs and prepaid expenses). Eligible on -4 unit properties. Properties re-sold 90 days from acquisition require investor prior approval. - Property Flips topic and the FHA Program Guidelines for detailed requirements. Required for loans with FICO and DTI above 43%. Must have compensating factors and VOR/VOM required. Only permitted with loans receiving "Refer/Eligible" status. Residual income required paid Revised of 24

16 FHA MIP RETAIL ONLY FHA STANDARD (cont d) UFMIP is.75% Annual MIP TABLE: Amortization Term: Term > 5 Years LTV Duration Base Loan Amount LTV New MIP 90% Years $625,500 95% 30 bps > 90% Loan Term $625,500 > 95% 35bps > $625,500 95% 50 bps > $625,500 > 95% 55 bps Term 5 Years $625, % 45 bps $625,500 > 90% 70 bps > $625, % 70 bps > $625,500 > 90% 95 bps Any Loan Amount 78% 45 bps Revised of 24

17 Refinance Transactions Reference Occupancy Units Loan Amount LTV/CLTV (2) Refer to for FHA loan limits by county. Primary w/o Appraisal Up to $625,500 (,2,3) N/A / 25% High Balance maximum loan amount is $625,500. Minimum loan amount $60,000. FHA STREAMLINE AUS AUS not applicable for Streamline Refinances. All Streamlines are manually underwritten. Escrow/Impound account required on all loans. All loans must meet QM guidelines Credit Score/Report All borrowers must have a credit score of minimum 500. Mortgage History Non-Credit Qualifying: 0x30 in past 24 months or since loan inception. A minimum 2 month payment history on the subject property is required. Credit Qualifying: Seasoned < 2 months: 0x30 in months 7-2; Seasoned 2 months x30 in last 2 months. Late cannot be within 3 months preceding the mortgage application. Occupancy Mortgage Seasoning Owner occupied unit properties only. Credit Qualifying: Borrower required to have made minimum 6 payments at time of case number assignment and minimum 20 days have passed since the Note date on the loan and case number assignment date on the new loan. Non-Credit Qualifying: Loan must have 2 months mortgage seasoning on the subject property. Bankruptcy Chapter 7 & discharged 2 years; Chapter 3 discharged 2 years or dismissed 2 years. Borrower must have re-established and/or re-affirmed credit in all cases. Letter of explanation required. Credit Qualifying only. Foreclosure None in last 3 years. Letter of explanation required. No mortgage/rental or installment late payments allowed after Foreclosure. Credit Qualifying only. Deed-in-Lieu/Short Sale None in last 3 years. Letter of exp required. No mortgage/rental or installment late payments allowed after Deed-in-Lieu/Short Sale Credit Qualifying only. Collections/Chargeoffs/Judgments CCC s Credit Qual: Collections/Charge-offs: Cumulative of all borrowers; < $2,000 no action required; $2,000 payoff prior to/ at close, or in payment plan (include pmt in DTI),or 5% of outstanding balance include in DTI calc. Judgments must be paid off or in repayment plan with a min of 3 mos. payments paid as agreed. See FHA Program guides for addl. requirements. Must be completed year Credit Qualifying only. Evidence as paid as agreed and must get CCC approval to enter into a new mortgage DTI & Cash-to-Borrower Non-Credit Qualifying N/A ; Credit Qualifying= 3% / 43% DTI exceptions at underwriter discretion w/compensating factors. Max. cash back to borrower $ Assets Not required unless assets are required for closing. Standard verifications apply. Reserves Not required Income Credit Qualifying: Wage Earners = current 30 days paystub with YTD earnings and most recent 2 years W-2 s; Self-employed = Tax returns that include minimum 2 years self-employed income. IRS Transcripts required. 4506T to be signed and executed Employment Credit Qualifying RETAIL ONLY Complete 2 years employment history; VVOE 0 days from date of note (reverse look up or 4 directory as part of VVOE); Self-employed must have valid third party verification (CPA, Business License) and reverse look up or 4 directory. Social Security income requires award letter Revised of 24

18 RETAIL ONLY FHA STREAMLINE (cont d) Financed Properties Unlimited. GreenBox maximum exposure of 2 loans per borrower. Refinance Transactions Credit Qualifying and Non-Credit Qualifying. Properties listed for sale in last 2 months require proof of being taken off the market day prior to application date. Cash Appraisals Streamlines are eligible $ without an appraisal. Maximum Loan Amount Streamlines Subordinate Financing Borrower Benefit Unpaid principal balance, minus the UFMIP refund, plus new UFMIP. The unpaid principal balance may include the current month s payment but cannot include delinquent payments, late charges and/or escrow shortages. Closing costs, discount points, prepaids cannot be included in the new loan amount. Loan cannot be a high priced loan. Existing subordinate financing may remain in place but must re-subordinate to the new mortgage All Streamline transactions must have a net tangible benefit to the borrower. Net tangible benefit requirements are as follows: From To Requirement Note From To Requirements Fixed Rate Fixed Rate 5% reduction of P&I and MIP Fixed Rate Hybrid ARM Requires 5% reduction in P&I and MIP Year ARM Fixed Rate New rate cannot be > 2% above the current ARM rate Year ARM Hybrid ARM New rate must e 2% below current ARM rate Hybrid ARM (during Fixed Period) Fixed Rate 5% reduction of P&I and MIP Hybrid ARM (during Fixed Period) Hybrid ARM 5% reduction of P&I and MIP A copy of the existing Note and a statement from the current servicer confirming the existing loan type and MIP required for net tangible benefit calculation. Revised of 24

19 RETAIL ONLY PURCHASE RATE/TERM* CASH OUT LTV LIMITS IRRRL LTV LOAN LIMITS Unit Loan Amount FICO LTV/CLTV LTV/CLTV FIXED ARM PRIMARY FIXED PRIMARY ARM 2ND HOME & NON OWNER $47,000 FIXED 2 $633, Minimum FICO 00% % 00 / 25% 90% 25% 90% 05% 3 $645,300 4 $80,950 Cash out > $700k $M JUMBO Min 660 JUMBO LOAN LIMITS $625,500 2 $800,775 > $M $.5M Min % % 00 / 25% 90% N/A N/A N/A 3 $967,950 4 $,202,925 Loan Amounts Minimum $50,000 loan amt. Loan amts > $650,000 require management review. Loan amounts limited by geographic region Document Type As determined and evaluated by AUS; All loans must receive Approve/Eligible or Accept Finding and meet QM guidelines. Manual underwriting permitted on loans with Credit Score & History The mortgage/rental rating cannot have any 30 day lates in previous 2 months; All delinquencies require a satisfactory explanation. Bankruptcy Chapter 7 or discharged 2 years; Chapter 3 permitted with a min of 2 mo. timely payments on the payout and a court approval to enter into a mtg transaction. Must receive Approve/Eligible Foreclosure, Deed-in Lieu, Short sale None in the last two (2) years Coll/Charge-Off/Judgment Judgments to be satisfied prior to closing. Isolated collections do not need to be paid off Per DU; All funds used to close must be disclosed on 003 and input into DU; Cash-on hand not allowed; Single deposits >25% of combined gross mo. income must be sourced & Assets explained. Verification requirements per DU. Bank statements cannot be > 45 days from the loan app. date or more recent/supplemental bank-generated form required Reserves Per AUS findings Per AUS; Wage Earners current paystub with YTD and most recent W-2; (paystub must be dated no earlier than 30 days from initial loan application date). Current two years tax Income returns required on all self employed borrowers and commission based borrowers. 4506T to be signed and executed Must be a veteran who served the minimum duty with other than a dishonorable discharge Active duty with at least 8 days of duty Borrower Eligibility Resident alien permitted as long as primary bwr is a veteran Un-remarried surviving spouse of eligible veteran (Certificate of Eligibility) Certificate of Eligibility must have sufficient entitlement to meet min 25% guarantee Reservist/National Guard Joint loans involving 2 married veterans - veteran bwr plus spouse co-bwr is not considered a joint loan - Must be sent to VA for approval VA Gift Funds Seller Contributions Escrows Permitted. No minimum borrower contribution Contributions may not exceed 4% of the value as indicated on the NOV (Notice of Value) Escrows required Revised of 24

20 RETAIL ONLY VA (cont d) Mortgage Insurance Not required Refinance Transactions Properties currently listed for sale are ineligible. Properties listed for sale within the previous 6 months are ineligible for cash out. Texas 50(a)(6) not eligible *Veterans that have a conventional loan and is refinancing to a VA loan - no cash in hand. Debt consolidation only. Appraisals The standard VA Appraisal is required including interior and exterior of the subj property. NOV(Notice of Value) is issued by VA and is valid for 6 mo - rapidly changing market conditions could dictate the use of a shorter validity period Condominiums VA approved condos only * Loans must be complete with all conditions cleared by the 0th of the month if the loan is expected to close in the same month Qualifying Ratios Residual Income IRRRL AUS refer loans - 4%. Any allotments on LES or paystubs will be reviewed for an affiliate debt. Non-borrowing spouse's debts are considered in community property states Loan amounts below $80,000 FAMILY SIZE NORTH EAST MIDWEST SOUTH WEST *Add $75 for each additional $390 $382 $382 $425 member up to a family of 7 2 $654 $64 $64 $73 3 $788 $772 $772 $859 4 $888 $868 $868 $967 5 $92 $902 $902 $,004 Loan amounts of $80,000 and above FAMILY SIZE* NORTH EAST MIDWEST SOUTH WEST *Add $80 for each additional $450 $44 $44 $49 member up to a family of 7 2 $755 $738 $738 $823 3 $909 $889 $889 $990 4 $,025 $,003 $,003 $,7 5 $,062 $,039 $,039 $,58 Maximum cash back not to exceed $500 DTI is not calculated HVE permitted or Conventional 2055 Exterior Appraisal. Health/safety repairs must be completed. Property must be rated Avg condition or better LTV > 95% and Loan amt > $M must have a minimum full appraisal Borrower must be the same except: the addition of a new spouse The principle and interest on the IRRRL must be less than the loan being refinanced unless: The IRRRL is refinancing an ARM Term of the IRRRL is shorter than the term of the loan being refinanced If the PITI increases by 20% or more; loan must have complete credit qualification HPML allowed only with complete credit qualification Revised of 24

21 Funding Fee Veteran is required to pay the VA Funding Fee. It cannot be included in the loan amount The following persons are exempt from paying the funding fee: Veterans receiving VA compensation for service related disabilities Veterans who would be entitled to receive compensation for serviceconnected disabilities if they did not receive retirement pay Veterans who are rated by VA as eligible to receive compensation as a result of pre-discharge disability examination and rating RETAIL ONLY VA (cont d) Loan Type Funding Fee Reservist Funding Fee Purchase Loan - Zero Down* 2.5% 2.40% Purchase Loan - 5% Down.50%.75% Purchase Loan - 0% Down.25%.50% Cash-Out Refinance Loan* 2.5% 2.40% IRRRL 0.50% 0.50% Veterans entitled to receive compensation, but are not presently in receipt *Re - use - 3.3% because they are on active duty Surviving spouses of veterans who died in service or from service connected disabilities (whether or not such surviving spouses are veterans with their own entitlement and whether or not they are using the own entitlement on the loan). Revised of 24

22 RETAIL ONLY PURCHASE RATE/TERM REFI OF AN EXISTING RURAL DEVELOPMENT LOAN Occupancy Loan Amt LTV / HCLTV Plus Guarantee Fee / CLTV FICO Loan Amt LTV / HCLTV Plus Guarantee Fee / CLTV FICO Single unit primary only $47,000 00% / 02% / NA 600 $47,000 00% / 02% / 00% 620 USDA CASH OUT Not Eligible Amount Document Type Credit Score & History *Property must meet Rural Development eligibility requirements: $50,000 Minimum Loan As determined and evaluated by GUS (Accept.) No Manual Underwrites. All loans require Rural Development (RD) review and approval. 30yr FIXED only. HPML ineligible Min 600 FICO. If subj prop is in a community property state - must include debts of non-borrowing spouse, but do not have to evaluate their credit history; however all judgment debts must be paid PRIOR to closing. Installment debt with less than 6 months payments must be included if he amt ouf the debt will affect the bwr's ability to pay the mtg No more than x30 within the last 24 months Borrowers that have had loan modification are not eligible for USDA financing Mortgage & Rental History First time homebuyer education required for FTHBs Adverse Credit Foreclosure and Ch 7 bankruptcy discharge must be more than 3yrs from dismissal date to application date Bwrs with consumer credit counseling or Ch 3 BK must have 2mo of on-time payments. Must receive written permission from counseling agency/court/trustee to enter into a mtg transaction Collection accts are ineligible if a record of irregular payments and no satisfactory arrangement fore repayment or collection accts paid in full within the last 6mo unless Coll/Charge-Off/Judgment bwr has previously been making regular payments Bwrs with an outstanding Federal judgment or delinquent on Federal debts are not eligible for a guaranteed loan Judgments must be satisfied PRIOR to closing Assets Reserves Bwr must lack sufficient funds needed to obtain traditional uninsured conventional loan financing (<20% down). Ineligible source of funds: Grant money, business funds, cash advance on credit card, signature loan, unsecured financing, personal loan, gifts that must be repaid, cash on hand, salary advance, sweat equity, reverse mtg, pension fund, HSA, margin accts Not required for this program Revised of 24