MPF Government MBS: Document Due Diligence RHS/USDA Loans. Combined Loan-to-Value (CLTV)

Transcription

1 MPF Government MBS: Document Due Diligence RHS/USDA Loans Combined Loan-to-Value (CLTV) GNMA s Definition of Combined Loan-to-Value: Source: On the 1008, the following rules apply: CLTV 1008/Uniform Underwriting and Transmittal Summary (to be used for VA and RHS/USDA Loans Only): HCLTV/HTLTV 1. If there is NO SUBORDINATE FINACING, then the CLTV/TLTV value and the HCLTV/HTLTV value on the 1008 will match one another. 2. If there IS SUBORDINATE FINACING, then the CLTV/TLTV value and the HCLTV/HTLTV value on the 1008 WILL NOT MATCH one another. ***Rounding: values with decimals will be rounded up to the next one s position. For example, a CLTV/TLTV of % will be rounded to %.***

2 CLTV without Subordinate Financing Example of CLTV without Subordinate Financing Lien Position If there is NO SUBORDINATE FINACING, then the CLTV/TLTV value and the HCLTV/HTLTV value on the 1008 will match one another. Combined Loan-to-Value Ratios CLTV with Subordinate Financing Example of TLTV with Subordinate Financing Lien Position *The CLTV (or HCLTV/HTLTV) in this example is 78%. If there IS SUBORDINATE FINACING, then the CLTV/TLTV value and the HCLTV/HTLTV value on the 1008 WILL NOT MATCH one another. Combined Loan-to-Value Ratios *The CLTV (or HCLTV/HTLTV) in this example is 84%.

3 Loan-to-Value (LTV) GNMA s Definition of Loan-to-Value: Source: On the 1008, the following rules apply: LTV 1008/Uniform Underwriting and Transmittal Summary (to be used for VA and RHS/USDA Loans Only): CLTV/TLTV 1. The CLTV/TLTV on the 1008 is considered the "LTV." A. If there is NO SUBORDINATE FINACING, then the CLTV/TLTV value and the HCLTV/HTLTV value on the 1008 will match one another. B. If there IS SUBORDINATE FINACING, then the CLTV/TLTV value and the HCLTV/HTLTV value on the 1008 WILL NOT MATCH one another. ***Rounding: values with decimals will be rounded up to the next one s position. For example, a CLTV/TLTV of % will be rounded to %.*** Example of LTV Loan-to-Value Ratios

4 Total Debt Ratio (DTI) Total Debt Ratio 1008/Loan Underwriting and Transmittal Summary: Total Obligations/Income VA & RHS/USDA Only For VA & RHS/USDA Loans, the Total Debt Ratio (DTI) must match the value on the 1008/Loan Underwriting and Transmittal Summary, under the Qualifying Ratios section: 1. Total Obligations/Income ratio ***Rounding: Values MUST BE rounded up to the next hundredth s place.*** Example: Documentation Value: -Total Obligations/Income: % Rounded (LOS Value): -Total Obligations/Income Rounded: 24.66% Total Obligations/Income

5 First Time Home Buyer First Time Home Buyer For Purchase Transactions Only Declaration M: Have you had an ownership interest in a property in the last three years? 1. If the borrower answers No to, have you had an ownership interest in a property in the last three years, then the borrower IS a first time home buyer. 2. If the borrower answers Yes to, have you had an ownership interest in the last three years, then the borrower IS NOT a first time home buyer. ***Note: If there are multiple borrowers on the loan and one of the borrowers answers "no," then the loan IS still considered a first time home buyer loan.*** 1. Borrower is First Time Homebuyer 2. Borrower is First Time Homebuyer

6 Agency Case Number (RHS Case Number) Agency Case Number (or MI Certificate Number) For RHS/USDA Loans Only RHS Case Number The RHS Case Number is found on the Loan Note Guarantee (Form RD E), under the section labeled RHS Case No. (State, County, SSN), and the value consists of the following: 1. State Code 2. County Code 3. SSN of the primary borrower ***Note: When entering the value on the csv file, dashes are not required.*** Loan Note Guarantee (Form RD E) with an RHS Case Number