Caliber Jumbo Program

Transcription

1 Caliber Jumb Prgram Caliber Jumb Prgram Summary Caliber Jumb Fixed Rate and ARM Prgram Matrix: PURCHASE AND RATE TERM REFINANCE 1,3,4 Occupancy Units FICO/Credit Scre LTV/CLTV Lan Amunt /90 Purch nly $1,000,000 Primary Residence Secnd Hme /85 Purch nly $2,000,000 80/90 $2,500,000 80/90 2 $2,000,000 75/85 2 $2,250,000 70/80 2 $2,500, /90 2 $1,500, /80 $1,500, /75 $1,000,000 75/75 $1,500,000 70/70 $2,000,000 65/65 $2,500,000 Investment /65 $1,500,000 CASH-OUT REFINANCE 1,8 Primary Residence /65 6 $1,500,000 75/75 7 $1,000, /65 6 $2,000,000 55/55 5 $2,500,000 70/70 7 $1,000,000 Secnd Hme /65 6 $1,500,000 60/60 6 $2,000,000 Prgram Matrix Ntes: 1. Declining Markets: If appraiser ntes declining market, the LTV must be reduced 5%. 2. Maximum 38% DTI when the LTV/CLTV > 75% and FICO is < Fr Rate Term Refinance transactins, maximum cash ut amunt permitted is $2, Delayed Financing may be underwritten and priced as a rate term refinance. Maximum LTV per Matrix. Maximum lan amunt per Matrix. Rate term cash back amunt restrictin des nt apply. 5. Fr Cash Out transactins, maximum cash ut amunt permitted is $500,000 t 60% LTV/CLTV. 6. Fr Cash Out transactins, maximum cash ut amunt permitted is $350,000 t 65% LTV/CLTV. 7. Fr Cash Out transactins, maximum cash ut amunt permitted is $250,000 t 75% LTV/CLTV 8. T be eligible fr a Cash Out refinance transactin, all liens n the lan being paid ff must be seasned fr at least six mnths. Revised: 03/07/2017 Caliber Jumb Fixed and ARM Prgram Summary Page 1 f 15

2 Reserves Occupancy # f Mnths PITI LTV Lan Amunt 9 < 80% $1,500, < 80% $2,000,000 Primary Residence 24 < 80% $2,500, > 80% $2,000, > 85% $1,000,000 9 < 75% $1,000,000 Secnd Hme 12 < 75% $1,500, < 75% $2,000, < 75% $2,500,000 Investment Prperty 18 < 65% $1,500,000 Brrwer has multiple financed prperties Each additinal financed prperty requires six (6) mnths PITI. Jumb Fixed Rate Texas(a)(6) Prgram Matrix: RATE TERM REFINANCE 1,2 Occupancy Units FICO/Credit Scre LTV/CLTV Max Lan Amunt Primary Residence /80 $1,500,000 CASH-OUT REFINANCE 1,3 65/65 $1,000,000 Primary Residence /60 $1,500,000 Prgram Matrix Ntes: Texas (a)(6) rate term and cash-ut transactins: Allwed n 30 year fixed term nly. Cperative units nt allwed. Any existing Texas Sectin 50(a)(6) lien must be seasned fr at least 12 mnths befre the brrwer is eligible fr a new refinance. Refer t the Texas (a)(6) Addendum fr anything nt addressed. 1. Declining Markets: If appraiser ntes declining market, the LTV must be reduced 5%. 2. Fr Texas (a)(6) rate term refinance transactins, n cash back is allwed. 3. Fr Texas (a)(6) cash-ut refinance transactins, maximum cash ut amunt permitted is $250,000. Reserves Occupancy # f Mnths PITI Lan Amunt 9 $1,000,000 Primary Residence 12 $1,500,000 Brrwer has multiple Each additinal financed prperty requires six (6) mnths PITI. financed prperties Revised: 03/07/2017 Caliber Jumb Fixed and ARM Prgram Summary Page 2 f 15

3 Prduct Detail Prduct Guidelines Refer t Appendix Q and the Cnventinal Cnfrming Prgram Summary fr any subject nt addressed in this prgram summary. AUS Lans must be manually underwritten Lans are nt required t be submitted thrugh AUS. Ability t Repay/Qualified Caliber will purchase nly Safe Harbr Qualified Mrtgages as defined under HUD and Mrtgage Rule the Ddd-Frank Wall Street Refrm and Cnsumer Prtectin Act. Amrtizatin Type Fixed Rate and Adjustable Rate Mrtgage (ARM) Purchases: One appraisal required fr all lans < $1,500,000. Tw appraisals required fr all lans > $1,500,000 Refinances: One appraisal required fr all lans < $1,000,000. Tw appraisals required fr all lans > $1,000,000. Appraiser must prvide at least six cmparable sales. Preferably all cmparable sales shuld be clsed sales. If the appraiser is unable t prvide six cmparable clsed sales, the appraiser may use cmparable listings r pending sales, but at a minimum 4 f the cmparable sales must be clsed sales. 1 unit prperties require a Cllateral Desktp Analysis (CDA) rdered thrugh Clear Capital. If 2 appraisals are required based n the lan amunt and transactin type, the CDA must be rdered n the lwer f the 2 appraisals. 2 unit prperties require a field review rdered thrugh Clear Capital. Appraisals The Crrespndent has the ptin t deliver the appraisal with the required CDA r field review. If the delivered file des nt include a CDA r field review frm Clear Capital, Caliber will rder as needed. Additinal fees, fr the crrespndent, may apply. An additinal appraisal, beynd the abve stated requirement, charged t the brrwer, may be rdered instead f a CDA r field review. Lwest f the appraisals must be used. Value will be assessed at the lesser f the appraised values r field review. If the difference f value between the appraisal and the CDA is within the acceptable variance tlerance percentage per the belw waterfall, the appraised value may be used. Refer t the Appraisal Valuatin Waterfall Chart fr cllateral requirements. A new full appraisal is required if the appraisal is dated mre than is mre than 120 days ld frm the date f the nte. A new appraisal is required fr bth purchase and refinance transactins (appraisal update/ recertificatin f value nt permitted). Appraisal transfers are nt allwed. ARM Infrmatin 5/1 ARM = 2/2/5 7/1 and 10/1 ARM = 5/2/5 Margin/Flr: 2.25% Index:1 Year Libr ARM Qualificatin Fully Amrtized 5/1: Qualify at the greater f Nte rate plus 2% r the fully indexed rate Fully Amrtized 7/1 and 10/1: Qualify at Nte rate Assets Full Asset Dcumentatin is required fr bth funds t clse and reserves. Fr mst asset types, this wuld include all pages f the mst recent tw mnths statements r the mst recent quarterly statement. Revised: 03/07/2017 Caliber Jumb Fixed and ARM Prgram Summary Page 3 f 15

4 Gifts are allwed fr dwn payment, clsing csts, and reserves with the fllwing restrictins: Primary residence nly Min 5% brrwer cntributin required Gifts f equity nt allwed Nt allwed n nn-arms length transactins Brrwer must disclse, and lender must verify, all qualifying assets. Business accunts are nt eligible t help meet reserve requirements; the underwriter may cnsider business accunts fr funds t clse if the brrwer is 100% wner f the business. A cash flw analysis r a letter frm the business accuntant is required t cnfirm that the withdrawal will nt negatively impact the business. Stcks/Bnds/Mutual Funds - 70% may be used fr reserves. Vested Retirement Accunt funds 60% may be cnsidered fr reserves. The terms f withdrawal must shw the brrwer has access t the funds. If needed t clse, verificatin that funds have been liquidated (if applicable) is required. Large depsits in excess f 25% f mnthly qualifying incme r any large depsit that is ut f the rdinary are required t be explained and surce dcumented in the file. IRS 1031 Exchange allwed n a case by case basis. Ineligible Gift f Equity Grant Funds Pled funds Builder Prfits N Emplyer Assistance Assets Freign assets Cash advance n credit card Signature lan Unsecured financing Persnal lan Cash fr which the surce cannt be verified (cash n hand) Cmmissin frm sale f subject prperty Salary advance Sweat equity (cntributin t the cnstructin r rehabilitatin f a prperty in the frm f labr r services rather than cash) Unverifiable surce f funds Reverse mrtgage Pensin fund Seller Real Estate Tax Credit Funds dnated by the prperty seller, builder, real estate agent r any ther party nt related t the brrwer t satisfy dwn payment requirements Assignment f Mrtgages See Cnfrming Fixed Rate. Assumable Fixed Rate prducts are nt assumable. ARM prducts are assumable t a qualified brrwer after the fixed term. Brrwer Eligibility Eligible Brrwers: U.S Citizens Permanent Resident Aliens Revised: 03/07/2017 Caliber Jumb Fixed and ARM Prgram Summary Page 4 f 15

5 Nn-Permanent Resident Aliens with an unexpired visa and a minimum tw-year histry f credit and emplyment in the U.S. Nn-arms length transactins n primary residences nly First time hmebuyers A First Time Hmebuyer is an individual that has nt had a mrtgage in the past r wned a hme in the past 3 years. Nn-Purchasing Spuse Nn-ccupant c-brrwers are allwed. Only the incme f the ccupying brrwer(s) must be used t calculate the DTI rati. The ccupying brrwer(s) must make the first 5% f the dwn payment frm their wn funds. Eligible Title Vesting: Individuals Jint Tenants Tenants in Cmmn Revcable Trusts, where individual Brrwer(s) execute bth the Nte and Security Instrument Cnstructin t Permanent Financing Credit Ineligible Brrwers include, but are nt limited t: Freign natinals Irrevcable Trusts r blind trusts Limited partnerships, general partnerships, crpratins Tw time clsings are allwed per Agency guidelines. If the brrwer wned the prperty fr less than 12 mnths (measured frm the HUD-1/Clsing Disclsure clsing date t the applicatin date f the new lan): The LTV is based n the lesser f the current appraised value r the sales price plus any dcumented imprvement csts. One time clsings are nt allwed. Credit Scre: Residential Mrtgage Credit Reprt r tri-merged in file frm all three repsitries is required The representative credit scre fr each brrwer is the median f the three scres (r lesser f tw, if nly tw scres are returned); the representative scre fr the lan is that f the brrwer with the lwest representative scre Tradeline Requirements: A brrwer nt using incme t qualify and shwing $0 earned r is nt emplyed; des nt need t meet the belw tradeline requirements. Each brrwer must meet ne f the minimum tradeline requirements belw: Optin Requirement 1 Brrwer must have a minimum f 3 pen tradelines that have been active within the last 12 mnths and reprting fr a minimum f 12 mnths. One f the three must be pen and active within the last 24 mnths and reprting fr a minimum f 24 mnths, and at least ne f the three trade lines must be an installment r mrtgage accunt. 2 Brrwer must have a minimum f 1 pen tradeline that has been active within the last 12 mnths and reprting fr a minimum f 12 mnths. Revised: 03/07/2017 Caliber Jumb Fixed and ARM Prgram Summary Page 5 f 15

6 Brrwer must have an established credit histry with 7 r mre tradelines reprted within the last 7 years, AND at least 3 f the 7 tradelines must be installments r 1 f the 7 tradelines must be a mrtgage tradeline. OR at least 1 f the 7 tradelines must be an installment tradeline, and the lan meets all f the fllwing lan parameters: Minimum 740 FICO Minimum 36 mnths reserves Residual incme f at least $7,500 per mnth Husing Payment Histry: Subject prperty and/r current primary residence must have a mrtgage/rental histry f 0x30 in the mst current 24 mnths as evidenced by a credit reprt, 24 mnths f cancelled checks, r an institutinal VOM/VOR cvering 24 mnths. Private VOM/VOR is allwed with a 24 mnth histry and the mst recent 18 mnths canceled checks r bank statements. Brrwers wning their primary residence free and clear: Fr any time perid where a mrtgage payment was nt required, prf that all prperty tax payments, hazard insurance premium payments, fld insurance premium payments, grund lease payments, and hmewners assessments, as applicable, have been paid n must be included in the file. The mnthly (r annual) payments must cntinue t be recgnized as a mnthly liability Gaps in primary husing histry r brrwers with > 18 mnths husing histry but < 24 mnths f husing histry have the fllwing restrictins: - Limited t a Primary Residence - N mre than 6 mnths gap - 40% DTI Fr all ther prperties, the mrtgage histry must be n mre than 1x30 in the last 24 mnths as evidenced by a credit reprt, 24 mnths f cancelled checks, r an institutinal VOM/VOR cvering 24 mnths. Private VOM/VOR is allwed with a 24 mnth histry and the mst recent 18 mnths canceled checks r bank statements. Additinal Credit Requirements: A written explanatin fr all inquiries within 90 days is required N bankruptcy, pre-freclsure, freclsure, deed-in-lieu f freclsure, shrt sale r mdificatins n any prperty within the last 7 years frm the applicatin date. A subsequent refinance f a previusly mdified mrtgage is nt allwed. All Judgments r liens affecting title must be paid Nn-title charge-ffs and cllectins exceeding $1,000 (either individually r in aggregate) must be paid All past due accunts must be brught current prir t clsing. Brrwers with a histry f cllectin accunts shuld be required t pay ff dergatry accunts N Authrized User Accunts will be used t satisfy minimum tradeline r FICO requirements Declining Market If appraiser ntes declining market, reduce LTV/CLTV by 5%. Dcumentatin Full Cmpleted, signed and dated final Fannie Mae 1003 Applicatin. All credit dcumentatin must be dated within 90 days f clsing. The mst recent bank statement t verify the surce f funds must be dated n mre than 45 days earlier Revised: 03/07/2017 Caliber Jumb Fixed and ARM Prgram Summary Page 6 f 15

7 Dwn Payment Requirements Dwn Payment Assistance Emplyment/Incme Verificatin than the date f the lan applicatin, and nt mre than 90 days earlier than the date f the Nte. Minimum 5% Nt allwed. Eligible Incme: Full Incme Dcumentatin is required per Appendix Q. Fr mst incme types, this wuld include: Emplyed Brrwers: Mst Recent Paystub including year-t-date earnings (cvering minimum f 30 days) and tw years W2's. If a Request fr Verificatin f Emplyment, Frm 1005 is used, the file must als include a current pay stub fr the mst recent 30 day perid and the mst recent year s W-2. If tax returns are required, they must be signed and dated. Self-emplyed Brrwers (where brrwer has 25% r mre wnership interest) must prvide the fllwing dcumentatin: Signed, dated individual tax returns, with all applicable tax schedules fr the mst recent tw years; Fr a crpratin, S crpratin, r partnership, signed cpies f Federal business incme tax returns fr the last tw years, with all applicable tax schedules; Year t date prfit and lss (P&L) statement and balance sheet. Full prfit and lss (P&L) statement and balance sheet fr current year t date. The previus year P&L and Balance Sheet are als required if the previus year s incme is nt dcumented by validated persnal and business incme tax returns. Incme dcuments are required regardless f whether incme is being used fr qualifying purpses per Appendix Q. Gaps in Emplyment (per Appendix Q): The brrwer s emplyment must be verified fr the mst recent tw full years. Allwances can be made fr seasnal emplyment, typical fr the building trades and agriculture, if verified. The end dates/start dates f any jb changes within the mst recent tw full years must be verified with either paystubs, VOEs, r emplyment cntracts t ensure that there are n gaps in emplyment histry. Any gaps in emplyment ver ne mnth in the past tw years must be satisfactrily explained in writing by the brrwer. Multiple jb gaps r frequent changes in emplyment in the past 24 mnths shuld be carefully reviewed t determine if the brrwer s emplyment is stable and likely t cntinue. If the brrwers have been emplyed less than tw years but were previusly in schl r in the military, a cpy f the diplma r discharge papers must be btained. If the brrwer is re-entering the wrkfrce, btain dcumentatin t supprt that the brrwer has been at the current emplyment fr a minimum f six mnths and dcumentatin t shw a previus wrk histry. In additin, Verbal Verificatin f Emplyment required fr all brrwers and must be cmpleted: Within 10 calendar days prir t the clsing date fr emplyment incme Within 30 calendar days prir t the clsing date fr self-emplyment incme (VVOE fr Self Emplyed incme shuld include verificatin f a phne listing and address fr the brrwer s business AND verificatin thrugh a third party such as a CPA, Revised: 03/07/2017 Caliber Jumb Fixed and ARM Prgram Summary Page 7 f 15

8 regulatry agency r applicable licensing bureau. If cntact is made verbally, the lan file must be dcumented t identify bth the surce f the infrmatin btained and the name & title f the persn wh btained the infrmatin. Prjected incme is nly acceptable fr qualifying purpses under the fllwing guidelines: Written dcument verifying the incme and situatin frm the brrwer s emplyer and Written letter f explanatin frm the brrwer that the incme will begin within 45 days f lan clsing Acceptable brrwer situatins: Cst-f-living adjustments Perfrmance raises New Jbs: The fllwing als apply: verify that the brrwer will have sufficient incme r cash reserves t supprt the mrtgage payment and any ther bligatins between lan clsing and the start f emplyment, the brrwer must have a nn-revcable cntract fr emplyment Calculatin: 100% f the prjected incme may be cnsidered as qualifying incme. The ttal mnthly eligible Prjected Incme is the ttal Prjected Incme ver the next 2 years, divided by 24. Rental incme frm secnd hmes is nt permitted. Rental Incme Calculatin: If the prperty was acquired subsequent t the mst recent tax filing year, a signed lease agreement shuld be used t calculate qualifying rental incme. Rental incme shuld be calculated using the 1040 tax return (Schedule E) infrmatin. In the event rental incme is reprting fr nly 1 year, a 12 mnth average f the rental incme can be used. If the rental prperty has been wned by the brrwer fr equal t r mre than tw years, the rental incme shuld be calculated using 1040 tax return (Schedule E) infrmatin averaged fr the last 24 mnths. If the rental incme declined in the mst recent tax return then a 12 mnth average f the prir year rental incme shuld be used. Per Appendix Q, a current lease agreement is always required t verify that the prperty will cntinue t be rented. Ineligible Incme: Depletin f assets (Asset dissipatin) Educatinal benefits, such as VA benefits r schlarships Lump sum payments such as inheritances r lawsuit settlements (may be verified as assets t clse) Payments that are received fr purchase r reimbursement f specified items Retained earnings Reverse Mrtgage Lan prceeds Secndary incme that will cntinue fr less than three years Taxable frms f incme that the brrwer des nt declare n federal incme tax returns Unverifiable incme Value f a cmpany furnished autmbile Revised: 03/07/2017 Caliber Jumb Fixed and ARM Prgram Summary Page 8 f 15

9 Value f emplyment benefit packages that are nt received as cash wages Lump sum payments f lttery earnings that are nt nging Nn-brrwer spuse incme Student lans/grants Allwance incme (fr example, an allwance received frm a family member) Stck ptins Rm and bard received fr the brrwer s principal residence. Severance Pay Trailing wage earner incme Freign incme Marijuana Related Business (MRB) emplyment and incme Escrw Hldbacks Nt allwed. Escrw Waivers Allwed FICO 680 Financing Cncessins Allwed in accrdance with FNMA. Amunts in excess f the limits set frth by FNMA r additinal cash back t the brrwer fr any cntributins that exceed the actual amunt f clsing csts are cnsidered t be sales cncessins and must be treated accrdingly (deducted frm sales price when calculating LTV). High Cst / High Priced Nt allwed Ineligible Transactins Temprary buydwns Cnversin (mdificatin) lans Cnstructin lans Balln Mrtgages Lien Psitin First Maximum Lan Amunt Dependent n lan type, ccupancy, FICO and LTV. Minimum Lan Amunt Cnfrming lan limit + $1 Mrtgage Insurance Nt Required. Number f Financed Maximum f 4 financed prperties. Prperties Refer t the reserves chart belw fr brrwers with multiple financed prperties. The aggregate ttal f prperties financed with Caliber including the lan amunt n the subject prperty may nt exceed $3,000,000. Pre-payment Penalty Nt allwed. Occupancy 1-4 unit Primary Residence First time hmebuyers limited t wner-ccupied primary residences 1 unit Secnd Hme Brrwer may nt wn anther secnd hme r investment prperty in the same area as the subject. 1 unit Investment Prgram Cdes Fixed: JF30, JF15 Texas (a)(6) Fixed: JA6F30 ARM: JL5, JL7, JL10 Prperty Flipping Plicy See Cnfrming Fixed Rate. Prperty Types Eligible Prperty Types: One Unit Single Family Residences (Attached and Detached) PUDs (Attached and Detached) Warrantable lw and high rise cndminiums. (Attached and Detached) Warranty must meet FNMA s prject review guidance. Lan level Prject Eligibility Waivers are nt allwed. Refer t Cnventinal Cndminium guidelines. Revised: 03/07/2017 Caliber Jumb Fixed and ARM Prgram Summary Page 9 f 15

10 2-4 Unit Prperties. Prperties with deed restrictins - Allwed if they meet Fannie Mae requirements Twnhmes Leasehld Estates: the brrwer is the wner f a valid and subsisting interest as tenant under the lease and is nt in default thereunder, the lease is in full frce and effect, and is unmdified, all rents and ther charges have been paid when due, the lessr under the lease is nt in default, the executin, delivery, and perfrmance f the Mrtgage d nt require the cnsent (ther than the cnsents that have been btained and are in full frce and effect) under, and will nt vilate r cause a default under, the terms f the lease, the lease is assignable r transferable, the term f such lease des nt terminate earlier than five years after the maturity date f the Mrtgage Nte, the lease des nt prvide fr terminatin f the lease in the event f the brrwer s default withut written ntice t the Mrtgagee and a reasnable pprtunity t cure the default, the lease permits the mrtgaging f the related Mrtgaged Prperty and the lease prtects the Mrtgagee s interests in the event f a prperty cndemnatin. the Mrtgaged Prperty is lcated in a jurisdictin in which the use f leasehld estates fr residential prperties is an accepted practice. Ineligible Prperty Types include, but are nt limited t: Nn-Warrantable Cnds Dme prperties Mixed use prperties Lg Hmes Unique prperties Agricultural zned Prperties with mre than 20 acres (> 10 acres are allwed n a case by case basis) Mbile hmes Manufactured hmes C-ps Unique prperties Husebats Gedesic dmes Hbby r wrking farms, ranches, rchards, and/r cmmercial peratins Prperty used fr cmmercial purpses Unimprved land Residences lacking kitchen and full bathrm facilities Htel Cndminiums (Cndminium Htel) Htel r mtel cnversins, r cnversins f ther transient prperties (i.e.; ldge, mtr inn, etc.) Prperties in less than average cnditin Prperties sld at auctin by the builder, develper, r cnstructin lender are nt eligible. Revised: 03/07/2017 Caliber Jumb Fixed and ARM Prgram Summary Page 10 f 15

11 Previusly apprved cndminium and Planned Unit Develpment (PUD) prjects are ften n lnger acceptable if they have been sld at auctin. Freclsed prperties lcated in a state where a redemptin perid is allwed (allwed in sme states fr bth Tax Sales and Judicial Freclsures) until: The redemptin perid has expired AND the freclsure sale had been cnfirmed AND clear and marketable title can be btained. Factry built husing Prjects in current r pending litigatin Acreage > 10 acres but < 20 acres are allwed n a case by case basis. Maximum land value: Rural prperties Nt t exceed 35%. The land value wuld be based n ttal acreage. Nn-rural Prperties N maximum land value as lng as the prperty cnfrms t the area. Wrking farms, cmmercial peratins, r any ther incme prducing prperties are nt allwed. Incme must be incidental and nncmmercial in nature. Incidental incme cannt be a large percentage f the brrwer s incme r related t their main surce f incme. The primary use f the prperty must be residential and zning must allw fr residential use. Sme cmmunities have enacted a zne cmprised f land lcated in an agricultural area but nt suited t farming. An example f this type f zning is A-3. Residential develpment is allwed in this zne, and while nt limited t, is typically ne hme n ne acre r less with sewer services r the minimum acres needed fr n-lt sewage dispsal. As the intended and allwable use f the land in this zne is residential and nt agricultural, despite a prefix f agricultural in the zning, prperties are eligible as lng as all ther eligibility requirements are met. Prperties n privately wned and maintained streets require a private rad maintenance agreement, except fr prperties in Califrnia. If the prperty is lcated within a state, ther than Califrnia, that has statutry prvisins that define the respnsibilities f prperty wners fr the maintenance and repair f a private street, n separate agreement r cvenant is required as lng as the statutry prvisins prvided in the file. The appraiser must cnsider all acres f the subject prperty and the cmparables must be f similar size. The prperty must be appraised and the final cnclusin and estimate f value must be based n the actual acreage and lt size. Multiple parcels Ratis Max 43% DTI. Recently Listed Prperties Limited Cash-Out Transactin - The listing agreement must be canceled at least six mnths prir t the date the applicatin is taken. A cpy f the canceled/expired listing shuld be placed in the file and a search f the current multiple listing service shuld be cmpleted t verify that the prperty is nt currently listed by a different agency. Cash-Out Transactin - The listing agreement must be canceled at least six mnths prir t the applicatin date. A cpy f the canceled/expired listing shuld be placed in the file and a search f the current multiple listing service shuld be cmpleted t verify that the prperty is nt currently listed by a different agency. Revised: 03/07/2017 Caliber Jumb Fixed and ARM Prgram Summary Page 11 f 15

12 Reserves Refer t the Reserves Chart. Seasned Lans See Cnfrming Fixed Rate. New and existing subrdinate financing is allwed per Fannie Mae guidelines. Payments n subrdinate financing must be cnsidered as part f the brrwer s Secndary Financing recurring mnthly debt bligatin. If the subrdinate financing n the subject prperty is a HELOC, the mnthly payment must be calculated based n the current rate f the ttal line amunt, even if the HELOC has a $0 balance. Seller Cntributins 6% f the lesser f the sales price r appraised value Temprary Buydwns Nt Allwed. State Restrictins See Cnfrming Fixed Rate. Tax Transcripts All lans require IRS 1040 tax transcripts fr the tax returns. IRS Frm 4506T is required t be signed and executed during the riginatin prcess, and transcript dcumentatin fr the mst recent tw years must be prvided in the clsed lan file. Fr self-emplyed brrwers, this applies t bth persnal returns and business returns (fr businesses where brrwer has 25% r mre wnership). Transcripts and returns must match. Frm 4506T must als be signed at clsing. Term Fixed: 15 and 30 years Texas (a)(6) Fixed:30 years ARM: 30 years Transactin Types Purchase Allwed. New Yrk CEMA purchase transactins are nt allwed. Rent-backs: Renting the prperty back t the seller after clsing fr a maximum f 30 days is allwed. Limited Cash-Out/Rate & Term Refinance Payff f a nn-purchase mney clsed end and HELOC 2nd liens will be cnsidered a rate/term refinance if they are seasned > 12 mnths and the draw n the HELOC is nt greater than $2,000 within the last 12 mnths Payff f a hme imprvement junir lien that is seasned less than year subject t the fllwing restrictins: A final inspectin is required if the appraisal is made subject t cmpletin f the imprvements. If cmpleted, imprvements must have been cmpleted within the 12 mnths prir t the lan applicatin, and the appraisal must nte the imprvements being made. Clsing csts, financing csts, and prepaids may be financed. Delayed financing is allwed. May be underwritten and priced as a rate term refinance. Maximum LTV is per the LTV Matrix. Maximum lan amunt is per the LTV Matric. Rate term cash back amunt restrictin des nt apply. All ther Fannie Mae guidelines must be fllwed. There is zer cash back allwed fr rate term refinance transactins n primary/hmestead residences in the state f Texas. Cash back t the brrwer in an amunt n greater than $2, N seasning f first mrtgage. Revised: 03/07/2017 Caliber Jumb Fixed and ARM Prgram Summary Page 12 f 15

13 Brrwer wned the prperty fr less than 12 mnths (measured frm the HUD-1/ Clsing Disclsure clsing date t the applicatin date f the new lan): The LTV is based n the lesser f the current appraised value r the sales price plus any dcumented imprvement csts. Refinancing a first lien that was previusly a cash ut refinance requires the lan t be seasned fr a minimum f 12 mnths in rder t be cnsidered a rate and term refinance. New Yrk CEMA refinance transactins are allwed. Cash-Out Refinance The mrtgage amunt may include the present first mrtgage payff, subrdinate liens, clsing csts, payff f debt and additinal cash t the brrwer. Brrwer must have wned the prperty fr a minimum f 6 mnths (date vested n title t nte date). Brrwer wned the prperty fr less than 12 mnths (measured frm the HUD-1 /Clsing Disclsure clsing date t the applicatin date f the new lan): The LTV is based n the lesser f the current appraised value r the sales price plus any dcumented imprvement csts. Refer t the LTV Matrix fr max cash ut limits. The maximum cash ut limit is the aggregate amunt between debt being paid ff (including nn-purchase mney 2 nds ) and cash in hand. New Yrk CEMA refinance transactins are allwed. Texas Agency cash-ut refinance transactins are allwed. Texas (a)(6) rate term and cash-ut refinance transactins are allwed n primary residences with the fllwing parameters: 30 year fixed term nly. Maximum cash ut amunt permitted is $250,000. Delayed financing is allwed up t $250,000. Refer t the Caliber Jumb Prgram Summary fr the applicable prduct cde, reserve requirements, maximum LTV restrictins and minimum FICO restrictins. Refer t the Texas (a)(6) Prgram Summary fr additinal guidelines. Underwriting Lans shuld be manually underwritten. AUS submissin is nt required. These guides are t be used in cnjunctin with the Cnventinal Cnfrming Guidelines. Refer t the Cnventinal Cnfrming Prgram Summary fr any subject nt addressed in this Prgram Summary. Cash ut may nt be used t pay dwn debt t qualify fr the lan Brrwers cannt pay dwn revlving debt within 90 days f the credit reprt in rder t qualify fr the lan nr pay dwn installment debt t 10 payments r less t exclude payment frm DTI calculatins. Revlving and installment debt can be excluded frm calculatins if the accunts are clsed and prf is prvided. Cnversin t investment prperty, 2nd hme r listed fr sale, requires a minimum 30% equity in the departing residence evidenced by an HVE, at a minimum, if rental incme is being utilized t qualify. Departing prperties with less than 30% dcumented equity: Six mnths reserves PITIA fr the cnverted prperty are required in additin t standard reserves. Brrwer must qualify with bth payments. Rental incme may nt be used. Payment Shck Requirements: Payment shck nt t exceed 250% fr: first time hmebuyers Revised: 03/07/2017 Caliber Jumb Fixed and ARM Prgram Summary Page 13 f 15

14 brrwers with less than 5 years jb histry and r cnsistent earned incme. (If the brrwer sld their hme within the last 180 days, use the prir mrtgage payment fr purpses f payment shck calculatin. A cpy f the HUD1 fr the sale f the hme is required.) Calculatin: Difference in payment/existing PITIA x 100 = Payment Shck % Example: Prpsed PITIA is $5000. Existing PITIA is $3000. Payment differential is $2000. $2000 (Payment differential) / $3000 (Existing PITIA) = * 100 = % payment shck. Revised: 03/07/2017 Caliber Jumb Fixed and ARM Prgram Summary Page 14 f 15

15 Screening Criteria Appraisal Valuatin Waterfall Chart: Initial Review Type CDA Recmmends Field Review Variance <= 65.00% % % N Variance Apprve Apprve Apprve N > 0% and < 8% Apprve Apprve >= 8% and < 10% Apprve Review and Apprve CDA Review and Apprve CDA 1-Unit CDA >= 10% r indeterminate N Variance Apprve Apprve Apprve Yes > 0% and < 8% Apprve >= 8% and < 10% Review and Apprve CDA Review and Apprve CDA Review and Apprve CDA Review and Apprve CDA >= 10% r indeterminate 2 Unit Field Review N/A N/A Default t Field Review Default t Field Review Default t Field Review Revised: 03/07/2017 Caliber Jumb Fixed and ARM Prgram Summary Page 15 f 15