OPERATIONS - UNDERWRITING, FUNDING ORDERING A CREDIT REFRESH

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1 PNP SPECIFICATIONS PNP Name/ History Procedure: Ordering a Credit Refresh Date Issued: 04/01/2016 Date Effective: 04/06/2016 Date Revised: 07/11/2016 Production Channels Retail Correspondent Wholesale Accountable Personnel/ Department Underwriting Funding Issuing Personnel/ Department Subject Matter Expert (SME) Purpose Executive Vice President, Operations Team Underwriting Managers National Funding Manager Director of Credit Risk Director of Underwriting Director of Loan Processing The purpose of this procedure is to provide a consistent, uniform and compliant process for ordering a credit refresh and reviewing any changes/discrepancies found prior to docs. RELATED DEFINITIONS Credit Refresh A credit refresh is a subsequent pull of a previously pulled credit report that is obtained and reviewed for new accounts or any other activity that may require a file to be re-underwritten prior to closing on all loan types for both retail and wholesale channels (except FHA Streamline Refinances and VA IRRRLs).

2 Table of Contents Conditioning Files for Credit Refresh PTD... 1 Pulling a Credit Refresh Report... 1 Reviewing the Credit Refresh/Comparison Report... 4

3 REVISED 07/11/2016 PAGE 1 OF 5 Conditioning Files for Credit Refresh PTD Underwriter 1. Ensure all retail and wholesale loans are conditioned for a credit refresh as a prior to docs (PTD) condition (except FHA Streamlines Refinances and VA IRRRLs). Pulling a Credit Refresh Report Underwriter 2. After all PTD conditions (except the credit refresh condition) have been satisfied and reviewed, and prior to clearing the PTD Review milestone, pull a credit refresh (results are valid for seven calendar days). a. Go to the CTI website; login with your credentials. b. See the Products and Services menu and click the Find Ordered Products hyperlink; The Find Ordered Products dialog box will appear. (Continued)

4 REVISED 07/11/2016 PAGE 2 OF 5 Pulling a Credit Refresh Report (Continued) Underwriter 2. (Cont d) c. Enter the File # from the original credit report (See the Encompass AFN Borrower Summary Origination Credit Reference # field or the File # on the credit report in the efolder to obtain this number) and click the [Search] button; a Search Results table will appear. d. Click the File # hyperlink in the Search Results table that corresponds with your loan; a Submission Results table will appear. e. Click the [Order Refresh Report] button and click [OK] on any subsequent pop-up messages to proceed. (Continued)

5 REVISED 07/11/2016 PAGE 3 OF 5 Pulling a Credit Refresh Report (Continued) Underwriter 2. (Cont d) f. When a screen similar to the one below appears, click the [Order] button. g. The message ***ORDER COMPLETED*** will appear along with the ADD-ON PRODUCTS menu on the right: Click the Comparison Report option to generate the credit refresh/comparison report; a dialog box labeled Choose another file to compare will appear. h. Ensure the file listed to compare is the correct file, and click the [Generate Comparison Report>>] button. i. When the generated report appears, click the [Print] button at the top of the screen and select PDF as your printer to save the file. j. Save the comparison report in the Encompass efolder under the QC - Credit Refresh (Funding) Document Detail.

6 REVISED 07/11/2016 PAGE 4 OF 5 Reviewing the Credit Refresh/Comparison Report Underwriter 3. Review the report for new debts and inquiries; if applicable, do the following: a. Update tradelines in Encompass if new debt is present, and update the AUS accordingly. b. Add conditions to the file requesting any needed documentation or explanation of items found on the comparison report (if any). Dry States May add as prior to funding (PTF) conditions, at the Underwriter s discretion. Wet States Must add as PTD conditions and the PTD Review milestone cannot be cleared until met. New Inquiries Address any material non-afn inquiries to confirm no new installment or revolving accounts have been opened. o o Condition for documentation, depending on the nature and type (for example, a utility company inquiry can be resolved with a LOE, whereas a bank or auto loan inquiry needs stronger documentation such as a credit supplement). Review any new tradelines resulting from new inquiries; re-run the AUS to account for the new tradeline and change in DTI. c. Clear the Credit Refresh required condition. d. After all PTD conditions are satisfied, complete the Encompass PTD Review milestone.

7 REVISED 07/11/2016 PAGE 5 OF 5 Reviewing the Credit Refresh/Comparison Report (Cont d) Funder 4. See the date the Credit Refresh report was generated; if the report is more than seven calendar days old at the time of funding: a. Generate a new report that compares the Underwriter s credit refresh to one to be generated today (see Step 2 of this procedure for instructions). b. Upload the new credit refresh to the Encompass efolder, taking care to preserve the Underwriter s initial credit refresh report. c. Review the comparison, and refer the file back to the Underwriter if there are changes that need to be reviewed and addressed by the Underwriter (refer to Step 3 for specifics regarding when a file must be returned to the Underwriter to review for DTI changes, new inquiries and/or new tradelines).