8:1 CONFORMING FIXED RATE

Transcription

1 8:1 CONFORMING FIXED RATE LOAN PRODUCT CODES LOAN PRODUCT LOAN TERM/AMORTIZATION* Year Fixed Rate months Year Fixed Rate months Year Fixed Rate months Year Fixed Rate 120 months *Minimum Amortization Term- 120 months Refer to BB&T s current Overlay and Allowances Matrix- Conventional Conforming and Super Conforming and the Conforming Underwriting Guidelines section for additional information. ****************************************************************************************************************************** APPRAISALS BB&T will accept the form required by the LPA or DU response with the following limitations. The following are not allowed regardless of LPA or DU recommendation: LPA- Form 2070 and Property Inspections Alternative (PIA). Loans delivered for purchase utilizing Freddie Mac s Automated Collateral Evaluation are ineligible. DU- Forms 2055, 2075, 1075 and Property Inspection Waiver (PIW) ASSUMABILITY Not assumable CERTIFICATIONS Primary Residence and Second Home: Qualified Mortgage (QM), Higher-Priced (HPML) and High Cost (HCL) Mortgage Loan Certification or comparable form that validates QM status, HPML and HCL. BB&T does not purchase high cost loans. CREDIT SCORE Minimum Credit Score for Purchase and No Cash Out Refinance transactions: 620 Minimum Credit Score for Cash-Out Refinance transactions: 620 Reference the Price Adjustments and LTV Charts for minimum credit score requirements on specific product/loan types. Eligibility Requirements Not all Borrowers have Usable Credit Scores Freddie Mac Loan Product Advisor (LPA) Requirements for Accept: At least one Borrower on the transaction has a usable Credit Score, as determined by LPA, which meets BB&T Correspondent Lending minimum credit score requirements. The transaction is a purchase or no cash-out refinance. The Mortgage is secured by a 1-unit property, and all Borrowers occupy the property as their Primary Residence. Borrowers with a usable Credit Score contribute more than 50% of the total monthly income. Conforming loan amounts are eligible. A-Minus mortgages where not all borrowers have a usable credit score are ineligible for delivery to BB&T Correspondent Lending. A-Minus mortgages are ineligible for delivery to BB&T Correspondent Lending. The information in this document is the property of BB&T and is intended for the use of BB&T associates and authorized representatives. CONFORMING FIXED RATE 11/20/2017

2 Fannie Mae Desktop Underwriter (DU) Requirements for DU Approve/Eligible Mortgages: At least one Borrower on the transaction has a usable Credit Score, as determined by DU, which meets BB&T Correspondent Lending minimum credit score requirements. The transaction is a purchase or limited cash-out refinance. The Mortgage is secured by a 1-unit property, and all Borrowers occupy the property as their Primary Residence. Conforming loan amounts are eligible. Borrowers with a usable Credit Score contribute more than 50% of the qualifying income. Reserves may be required as determined by DU. Rescoring and Credit Repair Legitimate corrections to a borrower s credit profile are acceptable, i.e. John Doe Jr. s derogatory credit is reflected on John Doe Sr. s credit report. In order to ensure the accuracy of the information, corrections should be made at the credit repository level. Any supporting documentation sent to the credit repositories along with all copies of credit reports should be maintained in the Correspondent s loan file and included with the file submission when delivered to BB&T Correspondent Lending. The use of credit repair vendors who assist borrowers to falsely repair their credit by the manipulation of data contained in the borrower s credit profile to improve credit scores for purposes of loan eligibility, rate/price improvement and creditworthiness is expressly prohibited by BB&T Correspondent Lending. It is at BB&T Correspondent Lending s discretion to determine if the credit history and credit scores are legitimate, acceptable and meet guideline requirements. DEBT-TO-INCOME RATIO (DTI) LPA- Maximum DTI must not exceed 55% DU- Maximum DTI must not exceed 50% ESCROW WAIVER Permitted when the Loan to Value is 80% or less. There is a reduction in Servicing Released Premium for waiving escrows. Refer to BB&T s current Rate Sheet HOMEOWNERSHIP COUNSELING DISCLOSURE Homeownership Counseling Disclosure required per the 2013 HOEPA Rule, an amendment to Regulation X (RESPA). INELIGIBLE LOAN TYPES AND PROGRAMS LPA Caution A-Minus Eligible Downpayment Assistance Programs Properties subject to Property Assessed Clean Energy (PACE) Obligations LOAN PURPOSE Purchase No Cash-Out Refinance Cash-Out Refinance The information in this document is the property of BB&T and is intended for the use of BB&T associates and authorized representatives. CONFORMING FIXED RATE 11/20/2017

3 LTV Reference the Price Adjustments and LTV Charts MAXIMUM INTERESTED PARTY CONTRIBUTIONS Maximum financing concessions are based on TLTV when secondary financing is present, LTV when no secondary financing is present. OCCUPANCY LTV/TLTV AMOUNT Primary Residence Over 90% to 95% 3% Over 75% to 90% 6% 75% and below 9% Second Home Over 75% to 85% 6% 75% and below 9% Investment Property All LTV s 2% MAXIMUM LOAN AMOUNT Conforming Loan Amount Maximum MINIMUM LOAN AMOUNT None MORTGAGE INSURANCE Required on all loans with LTV s above 80%. Refer to Mortgage Insurance Options in the Conforming Underwriting Guidelines section for more information. NOTE Freddie Mac 3200 Unit Number must be included in the property address line. Refer to Legal Document Matrix for additional information. OCCUPANCY REQUIREMENTS Primary Residence Second Home Investment Property OVERLAYS Refer to BB&T s current Overlay and Allowances Matrix- Conventional Conforming and Super Conforming for additional information. POINTS AND FEES CAPS 3% of the total loan amount for a loan amount greater than or equal to $102,894 $3,087 for a loan amount greater than or equal to $61,737 but less than $102,894 5% of the total loan amount for a loan greater than or equal to $20,579 but less than $61,737 $1,029 for a loan amount greater than or equal to $12,862 but less than $20,579 8% of the total loan amount for a loan less than $12,862 PRICING Refer to the Rate Sheet and BB&T s current Price Adjustments and LTV Charts for any price adjustments that might be applicable. The information in this document is the property of BB&T and is intended for the use of BB&T associates and authorized representatives. CONFORMING FIXED RATE 11/20/2017

4 PROPERTY TYPES Primary Residence and Investment Property- 1-4 Family, Freddie Mac Eligible Condominiums, PUDs Second Home- 1-Family, Freddie Mac Eligible Condominiums, PUDs Attached PUDs Property Insurance requirements: HO3/comparable full coverage homeowners insurance policy; OR HO6 policy required with coverage, as determined by the insurer, which is sufficient to repair the unit to its condition prior to a loss claim event for attached PUDs where the homeowners association has a blanket policy covering the exterior structure only; OR Homeowners Association blanket policy covering the exterior AND interior of the unit. HO6 coverage will not be escrowed separately if blanket policy covers the exterior and interior of the unit. HO3/comparable full coverage policies will be escrowed. Condominiums Correspondents are responsible for classing Condominiums as outlined in the Conforming Underwriting Guidelines. Property Insurance requirements: HO6 policy required with coverage, as determined by the insurer, which is sufficient to repair the unit to its condition prior to a loss claim event for Condominiums where the condominium master policy covers the exterior structure only; OR Condominium master policy covering the exterior AND interior of the unit. HO6 coverage will not be escrowed separately if master policy covers the exterior and interior of the unit. Ineligible Property Types Manufactured Housing QM STATUS Safe Harbor: Mortgage that does not exceed limits on upfront points and fees; has an APR relative to the APOR that is equal to or less than 1.5% for first-lien loans. Rebuttable Presumption: Mortgage than does not exceed limits on upfront points and fees; has an APR that exceeds the APOR as of the date the interest rate is set by 1.5% or more for first-lien loans. Also known as Higher-Priced. REFINANCES Refer to Freddie Mac Seller/Servicer Guide, as well as BB&T s current Price Adjustments and LTV Charts and the Conforming Underwriting Guidelines section. RESIDENCY STATUS US Citizens Permanent Resident Alien Non-Permanent Resident Alien see eligible Visa types listed in Conforming Underwriting Guidelines. SECONDARY FINANCING Refer to BB&T s current Price Adjustments and LTV Charts and the Conforming Underwriting Guidelines section. The information in this document is the property of BB&T and is intended for the use of BB&T associates and authorized representatives. CONFORMING FIXED RATE 11/20/2017

5 SECURITY INSTRUMENT Use the applicable Freddie Mac/Fannie Mae security instrument for the state in which the property is located. TEMPORARY BUYDOWNS Not Allowed UNDERWRITING BB&T expects that all eligible Conforming loans will be submitted to Loan Product Advisor or Desktop Underwriter (either directly or through a MI Company). Ineligible feedback responses: LPA Caution A-Minus eligible, LPA Caution, or DU Refer with Caution. WORKSHEETS Points and Fees Worksheet or comparable form Ability to Repay Worksheet or comparable form OR Income calculation for each borrower on either the Transmittal Summary or on a separate form; AND Income and debt amounts must match on the Transmittal Summary, final application and final AUS submission; AND Total debt-to-income ratio on the Transmittal Summary and final AUS submission must match. The information in this document is the property of BB&T and is intended for the use of BB&T associates and authorized representatives. CONFORMING FIXED RATE 11/20/2017

6 8:2 CONFORMING 3/1, 5/1, 7/1, AND 10/1 LIBOR P&I ARMS LOAN PRODUCT LOAN PRODUCT CODES 340 3/1 Year Discounted or Premium Non-Convertible ARM with 2/2/5 Caps 144 5/1 Year Discounted or Premium Non-Convertible ARM with 2/2/5 Caps 375 7/1 Year Discounted or Premium Non-Convertible ARM with 5/2/5 Caps /1 Year Discounted or Premium Non-Convertible ARM with 5/2/5 Caps Refer to BB&T s current Overlay and Allowances Matrix- Conventional Conforming and Super Conforming and the Conforming Underwriting Guidelines section for additional information. ******************************************************************************************************************************** ADDITIONAL DISCLOSURES PRODUCT LIBOR-INDEXED ADJUSTABLE RATE MORTGAGE LOAN PROGRAM DISCLOSURE 340 3/1 Year Discounted or Premium Non-Convertible ARM with 2/2/5 Caps 144 5/1 Year Discounted or Premium Non-Convertible ARM with 2/2/5 Caps 375 7/1 Year Discounted or Premium Non-Convertible ARM with 5/2/5 Caps /1 Year Discounted or Premium Non-Convertible ARM with 5/2/5 Caps Note: Use the Discounted disclosure if the Note rate is less than the index plus margin. Note: Use the Premium disclosure if the Note rate is equal to or greater than the index plus margin. The Consumer Handbook on Adjustable Rate Mortgages must be given to the borrower at application along with the applicable disclosure as indicated above. APPRAISALS BB&T will accept the form required by the LPA or DU response except for the following limitations. The following are not allowed regardless of LPA or DU recommendation: LPA - Form 2070 and Property Inspections Alternative (PIA). Loans delivered for purchase utilizing Freddie Mac Automated Collateral Evaluation are ineligible. DU - Forms 2055, 2075, 1075 and Property Inspection Waiver (PIW) ASSUMABILITY 3/1 ARM- assumable during life of loan 5/1, 7/1 & 10/1 ARMs- assumable while in the adjustable phase, not assumable during fixed hybrid period. CERTIFICATIONS Primary Residence and Second Home: Qualified Mortgage (QM), Higher-Priced (HPML) and High Cost (HCL) Mortgage Loan Certification or comparable form that validates QM status, HPML and HCL. BB&T does not purchase high cost loans. CREDIT SCORE Minimum Credit Score for Purchase and No Cash Out Refinance transactions: 620 Minimum Credit Score for Cash-Out Refinance transactions: 620 Reference the Price Adjustments and LTV Charts for minimum credit score requirements on specific product/loan types. (Continued On Next Page) CONFORMING 3/1, 5/1, 7/1, AND 10/1 P&I LIBOR ARMS 11/20/2017

7 Eligibility Requirements Not all Borrowers have Usable Credit Scores Freddie Mac Loan Product Advisor (LPA) Requirements for Accept: At least one Borrower on the transaction has a usable Credit Score, as determined by LPA, which meets BB&T Correspondent Lending minimum credit score requirements. The transaction is a purchase or no cash-out refinance. The Mortgage is secured by a 1-unit property, and all Borrowers occupy the property as their Primary Residence. Borrowers with a usable Credit Score contribute more than 50% of the total monthly income. Conforming loan amounts are eligible. A-Minus mortgages where not all borrowers have a usable credit score are ineligible for delivery to BB&T Correspondent Lending. A-Minus mortgages are ineligible for delivery to BB&T Correspondent Lending. Fannie Mae Desktop Underwriter (DU) Requirements for DU Approve/Eligible Mortgages: At least one Borrower on the transaction has a usable Credit Score, as determined by DU, which meets BB&T Correspondent Lending minimum credit score requirements. The transaction is a purchase or limited cash-out refinance. The Mortgage is secured by a 1-unit property, and all Borrowers occupy the property as their Primary Residence. Conforming loan amounts are eligible. Borrowers with a usable Credit Score contribute more than 50% of the qualifying income. Reserves may be required as determined by DU. Rescoring and Credit Repair Legitimate corrections to a borrower s credit profile are acceptable, i.e. John Doe Jr. s derogatory credit is reflected on John Doe Sr. s credit report. In order to ensure the accuracy of the information, corrections should be made at the credit repository level. Any supporting documentation sent to the credit repositories along with all copies of credit reports should be maintained in the Correspondent s loan file and included with the file submission when delivered to BB&T Correspondent Lending. The use of credit repair vendors who assist borrowers to falsely repair their credit by the manipulation of data contained in the borrower s credit profile to improve credit scores for purposes of loan eligibility, rate/price improvement and creditworthiness is expressly prohibited by BB&T Correspondent Lending. It is at BB&T Correspondent Lending s discretion to determine if the credit history and credit scores are legitimate, acceptable and meet guideline requirements. DEBT-TO-INCOME RATIO (DTI) LPA - maximum DTI must not exceed 55% DU - maximum DTI must not exceed 50% ESCROW WAIVER Permitted when the Loan to Value is 80% or less. There is a reduction in Servicing Released Premium for waiving escrows Refer to BB&T s current Rate Sheet or SRP Schedule. HOMEOWNERSHIP COUNSELING DISCLOSURE Homeownership Counseling Disclosure required per the 2013 HOEPA Rule, an amendment to Regulation X (RESPA). CONFORMING 3/1, 5/1, 7/1, AND 10/1 P&I LIBOR ARMS 11/20/2017

8 INDEX 12 Month LIBOR index INELIGIBLE LOAN TYPES AND PROGRAMS LPA Caution A-Minus Eligible Downpayment Assistance Programs Properties subject to Property Assessed Clean Energy (PACE) Obligations INTEREST RATE ADJUSTMENTS The Initial Interest Rate Adjustment will be 36, 60, 84, 120 months after the first month following loan closing; thereafter, the Interest Rate will be subject to change annually. For loans which close on the first day of the month, the Initial Interest Rate Adjustment will be 36, 60, 84, 120 months after the month of loan closing; thereafter, the Interest Rate will be subject to change annually. INTEREST RATE CAPS & FLOOR CAP 3/1 AND 5/1 P&I LIBOR ARM 7/1 AND 10/1 P&I LIBOR ARMs Initial 2% (Increase or Decrease) 5% (Increase or Decrease) Annual 2% (Increase or Decrease) 2% (Increase or Decrease) Lifetime 5% 5% Margin of 2.25% is the Floor INTEREST RATE FORMULA Index plus margin rounded to the nearest.125%. LOAN PURPOSE Purchase No Cash-Out Refinance Cash-Out Refinance LOAN TERM/AMORTIZATION TERM Amortization terms months (15 years, 1 month to 30 years). The outstanding principal balance will be re-amortized over the remaining life of the loan at each interest rate change date. NOTE: Amortization terms below 181 months for Adjustable-rate products are NOT allowed. LTV/TLTV/HTLTV Reference the Price Adjustments and LTV Charts MARGIN 225 basis points (2.25%) MAXIMUM INTERESTED PARTY CONTRIBUTIONS Maximum financing concessions are based on TLTV when secondary financing is present, LTV when no secondary financing is present. OCCUPANCY LTV/TLTV AMOUNT Primary Residence Over 90% to 95% 3% Over 75% to 90% 6% 75% and below 9% Second Home Over 75% to 85% 6% 75% and below 9% Investment Property All LTV s 2% CONFORMING 3/1, 5/1, 7/1, AND 10/1 P&I LIBOR ARMS 11/20/2017

9 MAXIMUM LOAN AMOUNT Conforming Loan Amount Maximum MINIMUM LOAN AMOUNT None MORTGAGE INSURANCE Required on all loans with LTV s above 80%. Refer to Mortgage Insurance Options in the Conforming Underwriting Guidelines section for more information. NEGATIVE AMORTIZATION None NOTE PRODUCT FREDDIE MAC FANNIE MAE , 375, Unit Number must be included in the property address line. Refer to Legal Document Matrix for additional information. OCCUPANCY REQUIREMENTS Primary Residence Second Home Investment Property OVERLAYS Refer to BB&T s current Overlay and Allowances Matrix- Conventional Conforming and Super Conforming for additional information. PAYMENT ADJUSTMENT The initial payment adjustment will be not less than 36, 60, 84, 120 months from the date of the first payment; thereafter, the monthly payment to change annually. POINTS AND FEES CAPS 3% of the total loan amount for a loan amount greater than or equal to $102,894 $3,087 for a loan amount greater than or equal to $61,737 but less than $102,894 5% of the total loan amount for a loan greater than or equal to $20,579 but less than $61,737 $1,029 for a loan amount greater than or equal to $12,862 but less than $20,579 8% of the total loan amount for a loan less than $12,862 PRICING Refer to the Rate Sheet and BB&T s current Price Adjustments and LTV Charts for any price adjustments for any applicable price adjustments CONFORMING 3/1, 5/1, 7/1, AND 10/1 P&I LIBOR ARMS 11/20/2017

10 PROPERTY TYPES Primary Residence and Investment Property- 1-4 Family, Freddie Mac Eligible Condominiums, PUDs Second Home- 1-Family, Freddie Mac Eligible Condominiums, PUDs Attached PUDs Property Insurance requirements: HO3/comparable full coverage homeowners insurance policy; OR HO6 policy required with coverage, as determined by the insurer, which is sufficient to repair the unit to its condition prior to a loss claim event for attached PUDs where the homeowners association has a blanket policy covering the exterior structure only; OR Homeowners Association blanket policy covering the exterior AND interior of the unit. HO6 coverage will not be escrowed separately if blanket policy covers the exterior and interior of the unit. HO3/comparable full coverage policies will be escrowed. Condominiums Correspondents are responsible for classing Condominiums as outlined in the Conforming Underwriting Guidelines. Property Insurance requirements: HO6 policy required with coverage, as determined by the insurer, which is sufficient to repair the unit to its condition prior to a loss claim event for Condominiums where the condominium master policy covers the exterior structure only; OR Condominium master policy covering the exterior AND interior of the unit. HO6 coverage will not be escrowed separately if master policy covers the exterior and interior of the unit. Ineligible Property Types Manufactured Housing. QM STATUS Safe Harbor: Mortgage that does not exceed limits on upfront points and fees; has an APR relative to the APOR that is equal to or less than 1.5% for first-lien loans. Rebuttable Presumption: Mortgage than does not exceed limits on upfront points and fees; has an APR that exceeds the APOR as of the date the interest rate is set by 1.5%. Also known as Higher-Priced. QUALIFYING RATE* 3/1 & 5/1 P&I LIBOR ARM Qualify at the greater of*: Note rate plus 2.0% or Fully indexed rate (index plus margin) 7/1 & 10/1 P&I LIBOR ARMs Qualify at note rate 7/1 & 10/1 P&I LIBOR ARMs Higher Priced Covered Transactions as defined by Reg Z 12 C.F.R (b) Qualify at the greater of: Note rate or Fully indexed rate (index plus margin) *Correspondents must adhere to specific State requirements. CONFORMING 3/1, 5/1, 7/1, AND 10/1 P&I LIBOR ARMS 11/20/2017

11 Qualifying Rate Requirement for AUS Fannie Mae DU ARM Plan 3/1 P&I LIBOR ARM /1 P&I LIBOR ARM /1 P&I LIBOR ARM /1 P&I LIBOR ARM 2729 Freddie Mac LPA Loan Product Advisor will assess the loan and calculate the debt-to-income ratio based on the requirements listed above. REFINANCES Refer to Freddie Mac Seller/Servicer Guide, as well as BB&T s current Price Adjustments and LTV Charts and the Conforming Underwriting Guidelines section. RESIDENCY STATUS US Citizens Permanent Resident Alien Non-Permanent Resident Alien - see eligible Visa types listed in Conforming Underwriting Guidelines. RIDER PRODUCT FREDDIE MAC FANNIE MAE , 375, Refer to Legal Document Matrix for additional information SECONDARY FINANCING Refer to BB&T s current Price Adjustments and LTV Charts as well as the Conforming Underwriting Guidelines SECURITY INSTRUMENT Use the applicable Freddie Mac/Fannie Mae security instrument for the state in which the property is located. TEMPORARY BUYDOWNS Not Allowed UNDERWRITING BB&T expects that all eligible Conforming loans will be submitted to Loan Product Advisor or Desktop Underwriter (either directly or through a MI Company). Ineligible feedback responses: LPA Caution A-Minus eligible, LPA Caution, or DU Refer with Caution. WORKSHEETS Points and Fees Worksheet or comparable form Ability to Repay Worksheet or comparable form OR Income calculation for each borrower on either the Transmittal Summary or on a separate form; AND Income and debt amounts must match on the Transmittal Summary, final application and final AUS submission; AND Total debt-to-income ratio on the Transmittal Summary and final AUS submission must match. CONFORMING 3/1, 5/1, 7/1, AND 10/1 P&I LIBOR ARMS 11/20/2017

12 8:3 FANNIE MAE DU REFI PLUS MORTGAGE All loans must be owned or securitized by Fannie Mae and serviced by BB&T. Original loan being refinanced must have a Note Date on or before May 31, LOAN PRODUCT CODES LOAN PRODUCT LOAN TERM/ AMORTIZATION TERM* 950 Conforming 30 Year Fixed Rate Relief Plus months 951 Conforming 20 Year Fixed Rate Relief Plus months 952 Conforming 15 Year Fixed Rate Relief Plus 180 months *Minimum Amortization Term 120 months Refer to BB&T s current Overlay and Allowances Matrix- Conventional Conforming and Super Conforming and the Conforming Underwriting Guidelines section for additional information. ******************************************************************************************************* ADDITIONAL CONSIDERATIONS Reclassification of condos is not required. However, the property cannot be a Non-Warrantable Condo or Condotel. ASSET DOCUMENTATION REQUIREMENTS Asset sources and documentation requirements per Section B of Fannie Mae Guide. Investigation of large deposits on bank or other asset statements is not required. Proof of liquidation of assets (i.e. sale of stock) is not required even if those assets are used by borrower to pay closing costs. ASSUMABILITY Not assumable AUTOMATED UNDERWRITING DU eligible only To opt out of DU Refi Plus consideration for a loan casefile prior to underwriting, enter the phrase Standard LCOR in the Product Description field. CERTIFICATIONS Primary Residence and Second Home: Qualified Mortgage (QM), Higher-Priced (HPML) and High Cost (HCL) Mortgage Loan Certification or comparable form that validates QM status, HPML and HCL. BB&T does not purchase high cost loans. COLLATERAL ASSESSMENT REQUIREMENTS Follow DU response If new appraisal is obtained, condition rating of C6 and/or quality rating of Q6 completed on an as-is basis is acceptable. No requirement for appraisal to be completed subject to repairs being made. DU will waive the appraisal or exterior-only property inspection on certain loan files. If the DU response allows the Property Inspection Waiver (PIW), the $75 fieldwork waiver fee will be netted out at funding. The PIW must have been issued no more than 120 days prior to the Note date. FANNIE MAE DU REFI PLUS

13 CREDIT SCORE None; however, a representative credit score is required for pricing purposes. Rescoring and Credit Repair Legitimate corrections to a borrower s credit profile are acceptable, i.e. John Doe Jr. s derogatory credit is reflected on John Doe Sr. s credit report. In order to ensure the accuracy of the information, corrections should be made at the credit repository level. Any supporting documentation sent to the credit repositories along with all copies of credit reports should be maintained in the Correspondent s loan file and included with the file submission when delivered to BB&T Correspondent Lending. The use of credit repair vendors who assist borrowers to falsely repair their credit by the manipulation of data contained in the borrower s credit profile to improve credit scores for purposes of loan eligibility, rate/price improvement and creditworthiness is expressly prohibited by BB&T Correspondent Lending. It is at BB&T Correspondent Lending s discretion to determine if the credit history and credit scores are legitimate, acceptable and meet guideline requirements. Reference the Price Adjustments and LTV Charts for minimum credit score requirements on specific product/loan types. DEMAND FEATURE None ELIGIBLE BORROWERS The following scenarios are eligible: Borrower(s) on the new mortgage are the same as the current mortgage. Borrower(s) have been added to the new mortgage and the existing borrower(s) have been retained. Borrower(s) have been removed from the new mortgage for any reason: At least one of the original borrowers must be retained on the new loan. Note: Borrower being removed is not required to be removed from the deed or title to the property and retain no ownership interest in the property. As a reminder, each person who has an ownership interest in the security property, even if the person s income is not used in qualifying for the mortgage loan, must sign the security instrument (See Section B of the Fannie Mae Guide for additional information). ESCROWS Required on LTV s greater than 80% ESCROW WAIVER Permitted when the Loan to Value is 80% or less. There is a reduction in Servicing Released Premium for waiving escrows. Refer to BB&T s current Rate Sheet FANNIE MAE DOCUMENTATION Fannie Mae Checklist FANNIE MAE DU REFI PLUS

14 HARDEST HIT FUNDS Unsecured financing provided through a Housing Finance Agency s (HFA) Hardest Hit Fund program for the purpose of principal curtailment or closing costs for the Fannie Mae DU Refi Plus is permitted and must meet the following requirements: Funds must be reflected as Other Credit in Section VII of the mortgage loan application. Mortgage file must contain a copy of the promissory note or other documentation specifying the terms and conditions of the loan. If documents indicate repayment is expected, the monthly payment must be included in the DTI ratio unless repayment is only due upon sale or default. Transfer of the loan proceeds must be reflected on the HUD-1 Settlement Statement. Property must be located in one of the following Hardest Hit States : Alabama, Arizona, Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, Mississippi, Nevada, New Jersey, North Carolina, Ohio, Oregon, Rhode Island, South Carolina, Tennessee, and Washington DC. HIGHER PRICED COVERED TRANSACTIONS Mortgages classified as a higher priced covered transaction, as defined in Regulation Z, 12 C.F.R (b), must meet requirements that include the following: Employment, income and assets must be verified according to DU findings. Minimum credit score of 620 required. Maximum Debt-to-Income (DTI) cannot exceed 45% HIGHER PRICED MORTGAGE LOANS Mortgages classified as a higher priced mortgage loan must meet all requirements for Higher Priced Covered Transactions listed above along with the following: Escrow account has been established on the loan and will be maintained for at least the first 60 months. Note: Higher Priced Covered Transactions and Higher Priced Mortgage Loans differ from a High-Cost Loan. BB&T s policy prohibiting the origination of High-Cost Loans remains unchanged. HOMEOWNERSHIP COUNSELING DISCLOSURE Homeownership Counseling Disclosure required per the 2013 HOEPA Rule, an amendment to Regulation X (RESPA). INCOME DOCUMENTATION REQUIREMENTS Income sources and documentation requirements per Section B of Fannie Mae Guide. IRS Form 4506-T required. Form must be completed, signed and dated by each borrower at application and closing. Tax Transcripts (IRS Record of Account): most recent available tax transcript required for each borrower. Note: An IRS Record of Account is acceptable in lieu of Tax Transcripts. References to Tax Transcripts and Record of Account are interchangeable for purposes of this product description. INELIGIBLE LOAN TYPES AND PROGRAMS Existing loans not serviced by BB&T Existing loans not owned or securitized by Fannie Mae Existing loans where the original mortgage being refinanced has a Note Date after May 31, Existing and new mortgages not in first lien position Mortgage being refinanced is currently a HARP loan. HARP to HARP loans are ineligible. New mortgages as: Balloons, ARMs, Cash-Out Refinance, and Non-Warrantable Condos and Condotels New mortgages that convert interim construction financing to permanent financing New mortgages with temporary buydowns New mortgages that are manually underwritten New mortgages subject to Downpayment Assistance Programs Properties subject to Property Assessed Clean Energy (PACE) Obligations LOAN PURPOSE Limited Cash-Out Refinance Only FANNIE MAE DU REFI PLUS

15 LOAN TYPE Conforming Fixed and Super-Conforming Fixed LTV/TLTV Unlimited MAXIMUM LOAN AMOUNT Up to county specific Fannie Mae Conforming or Super-Conforming (if applicable) loan limits. MINIMUM LOAN AMOUNT None MORTGAGE INSURANCE If the mortgage being refinanced has mortgage insurance and the new mortgage is not <=80% LTV, then the new DU Refi Plus Mortgage is ineligible for sale to BB&T Correspondent Lending. If the mortgage being refinanced did not have mortgage insurance, then no mortgage insurance coverage is required for the new DU Refi Plus Mortgage and the mortgage is eligible for sale to BB&T Correspondent Lending. MULTIPLE FINANCED PROPERTIES DU Refi Plus loans are exempt from the multiple financed properties guidelines listed within the Fannie Mae Selling Guide. NOTE Freddie Mac 3200 Unit Number must be included in the property address line. Refer to Legal Document Matrix for additional information. OCCUPANCY The existing mortgage and the new DU Refi Plus do not have to represent the same occupancy. The occupancy of the subject property may have changed by the time of the new mortgage transactions. The subject property may be listed for sale at time of application for the HARP loan. OVERLAYS Refer to BB&T s current Overlay and Allowances Matrix- Conventional Conforming and Super Conforming for additional information. POINTS AND FEES CAPS 3% of the total loan amount for a loan amount greater than or equal to $102,894 $3,087 for a loan amount greater than or equal to $61,737 but less than $102,894 5% of the total loan amount for a loan greater than or equal to $20,579 but less than $61,737 $1,029 for a loan amount greater than or equal to $12,862 but less than $20,579 8% of the total loan amount for a loan less than $12,862 PREPAYMENT PENALTY None PRICING Refer to the Rate Sheet and BB&T s current Price Adjustments and LTV Charts for any price adjustments that might be applicable. FANNIE MAE DU REFI PLUS

16 PROPERTY TYPES Primary Residence and Investment Property- 1-4 Family, Warrantable Condominiums, PUDs, Manufactured Housing Second Home- 1-Family, Warrantable Condominiums, PUDs, Manufactured Housing Attached PUDs Property Insurance requirements: HO3/comparable full coverage homeowners insurance policy; OR HO6 policy required with coverage, as determined by the insurer, which is sufficient to repair the unit to its condition prior to a loss claim event for attached PUDs where the homeowners association has a blanket policy covering the exterior structure only; OR Homeowners Association blanket policy covering the exterior AND interior of the unit. HO6 coverage will not be escrowed separately if blanket policy covers the exterior and interior of the unit. HO3/comparable full coverage policies will be escrowed. Condominiums Property Insurance requirements: HO6 policy required with coverage, as determined by the insurer, which is sufficient to repair the unit to its condition prior to a loss claim event for Condominiums where the condominium master policy covers the exterior structure only; OR Condominium master policy covering the exterior AND interior of the unit. HO6 coverage will not be escrowed separately if master policy covers the exterior and interior of the unit. QM STATUS Safe Harbor: Mortgage that does not exceed limits on upfront points and fees; has an APR relative to the APOR that is equal to or less than 1.5% for first-lien loans. Rebuttable Presumption: Mortgage than does not exceed limits on upfront points and fees; has an APR that exceeds the APOR as of the date the interest rate is set by 1.5% or more for first-lien loans. Also known as Higher-Priced. QUALIFYING RATIOS Determined by DU REFINANCE PROCEEDS New loan amount can include payoff of the unpaid principal balance on the existing first mortgage; financing of closing costs, prepaid items and points; maximum $250 cash back to the borrower. The amount in excess of $250 will be applied as a principal curtailment. Enter the amount of the first mortgage being paid off with the new transaction on line d. Refinance located under Section VII Details of Transaction of the loan application. This amount must match the balance of the mortgage being paid off, as shown in the liabilities section of the loan application. REQUIRED BORROWER BENEFIT Reduction in the monthly principal and interest payment of the first lien mortgage, or Moving into a more stable mortgage product, i.e. ARM to a Fixed Rate, fully amortizing mortgage, or Reduction of the interest rate of the first lien mortgage, or Reduction of the amortization term of the first lien mortgage. Note: Extension of the amortization term of the new refinance mortgage (i.e. 15 to 30 years) is a borrower benefit if it results in a reduction in principal and interest payment. FANNIE MAE DU REFI PLUS

17 REQUIRED MORTGAGE PAYMENT HISTORY No 60 day lates in the past 12 months on any mortgage tradeline. No limit on payment increase, subject to the Borrower Benefit Requirements. RESIDENCY STATUS US Citizens Permanent Resident Alien Non-Permanent Resident Alien RESTRUCTURED LOANS Subsequent refinance of a restructured loan is eligible if the following are met: At least 24 months of timely payments on the restructured loan terms are documented. The new refinance loan meets all DU Refi Plus requirements in the Fannie Mae Selling Guide and the BB&T Correspondent Lending product description. SEASONING REQUIREMENTS None SECONDARY FINANCING Existing junior liens must be subordinated to the new Fannie Mae DU Refi Plus mortgage loan. Existing junior lien may be simultaneously refinanced as long as new junior lien loan amount does not exceed existing unpaid principal balance. Existing junior lien may not be paid off with the proceeds of a new DU Refi Plus mortgage loan New junior lien is only permitted if it replaces existing junior lien. SECURITY INSTRUMENT Use the applicable Freddie Mac/Fannie Mae security instrument for the state in which the property is located. SIGNIFICANT DEROGATORY CREDIT Follow waiting periods and re-establishment of credit guidelines per the Fannie Mae Selling Guide. SPECIAL MORTGAGE TYPE DU Refi Plus TEMPORARY BUYDOWNS Not allowed WORKSHEETS Points and Fees Worksheet or comparable form Ability to Repay Worksheet or comparable form OR Income calculation for each borrower on either the Transmittal Summary or on a separate form; AND Income and debt amounts must match on the Transmittal Summary, final application and final AUS submission; AND Total debt-to-income ratio on the Transmittal Summary and final AUS submission must match. SPECIAL FEATURE CODES (BB&T use only) 147 Fannie Mae DU Refi Plus 807 (if Property Inspection Waiver is used) Other applicable standard SFC codes CONDO/PUD DELIVERY CODE (BB&T use only) V= Condominium E= PUD MI DELIVERY CODE (BB&T use only) 95= DU Refi Plus loans with LTV s over 80% and no MI coverage. FANNIE MAE DU REFI PLUS

18 How do I determine if my client is eligible for Fannie Mae s DU Refi Plus program? There are resources available to clients to determine their eligibility for Fannie Mae s DU Refi Plus Program. If a client was referred to you by BB&T, eligibility may not have already been determined at that time. Following are steps that can be used to assist your client s in determining their eligibility. Clients may also go to Making Home Affordable to learn more about the Making Home Affordable program in general. 1. The existing loan must be owned by Fannie Mae and serviced by BB&T. a. With the client s verbal consent, Correspondent may access Fannie Mae s website to determine if the loan is owned by Fannie Mae. OR b. Clients may call BB&T at and follow the prompts to reach Option #4 for the Homeowner Affordability and Stability Plan. 2. The new loan must not require Mortgage Insurance (MI). a. If the mortgage being refinanced has mortgage insurance and the mortgage is not <=80% LTV, then the new DU Refi Plus mortgage is ineligible for sale to BB&T Correspondent Lending. b. If the mortgage being refinanced did not have mortgage insurance, then no mortgage insurance coverage is required for the new DU Refi Plus mortgage, and the mortgage is eligible for sale to BB&T Correspondent Lending. Once Correspondent has determined that the client is eligible for the Fannie Mae program, based on information provided by the client, continue the application process by following the applicable Product Description and Checklists provided by BB&T Correspondent Lending. FANNIE MAE DU REFI PLUS

19 8:4 FREDDIE MAC RELIEF REFINANCE MORTGAGE All loans must be owned or securitized by Freddie Mac and serviced by BB&T. Original loan being refinanced must have a Note Date on or before May 31, LOAN PRODUCT CODES LOAN PRODUCT LOAN TERM/ AMORTIZATION TERMS* 950 Conforming 30 Year Fixed Rate Relief Plus months 951 Conforming 20 Year Fixed Rate Relief Plus months 952 Conforming 15 Year Fixed Rate Relief Plus 180 months *Minimum Amortization Term 120 months Refer to BB&T s current Overlay and Allowances Matrix- Conventional Conforming and Super Conforming and the Conforming Underwriting Guidelines section for additional information. ****************************************************************************************************************************** ADDITIONAL CONSIDERATIONS Re-classification of condos is NOT required. However, all condos must be marked as Streamlined Review. ASSUMABILITY Not assumable AUTOMATED UNDERWRITING Not Allowed CERTIFICATIONS Primary Residence and Second Home: Qualified Mortgage (QM), Higher-Priced (HPML) and High Cost (HCL) Mortgage Loan Certification or comparable form that validates QM status, HPML and HCL. BB&T does not purchase high cost loans. COLLATERAL ASSESSMENT REQUIREMENTS Home Value Explorer (HVE): Eligible HVE must meet the following requirements: Dated no more the 120 days from the closing date Reflect a score of H (High) or M (Medium) Standard deviation no greater than.20 Property is a 1-2 unit dwelling or Condo/PUD OR New appraisal- full interior/exterior Condition rating of C5 or C6 and/or qualify rating of Q6 completed on an as-is basis is acceptable. No requirement for appraisal to be completed subject to repairs being completed. CREDIT SCORE All LTV s- no minimum credit score requirement unless the P&I payment is increasing by more than 20%. Also, if there is no usable credit score due to inaccurate or insufficient information, the mortgage remains eligible for a HARP Refinance. Rescoring and Credit Repair Legitimate corrections to a borrower s credit profile are acceptable, i.e. John Doe Jr. s derogatory credit is reflected on John Doe Sr. s credit report. In order to ensure the accuracy of the information, corrections should be made at the credit repository level. Any supporting documentation sent to the credit repositories along with all copies of credit reports should be maintained in the Correspondent s loan file and included with the file submission when delivered to BB&T Correspondent Lending. (Continued On Next Page) The information in this document is the property of BB&T and is intended for the use of BB&T associates and authorized representatives. FREDDIE MAC RELIEF REFINANCE MORTGAGE

20 The use of credit repair vendors who assist borrowers to falsely repair their credit by the manipulation of data contained in the borrower s credit profile to improve credit scores for purposes of loan eligibility, rate/price improvement and creditworthiness is expressly prohibited by BB&T Correspondent Lending. It is at BB&T Correspondent Lending s discretion to determine if the credit history and credit scores are legitimate, acceptable and meet guideline requirements. DEMAND FEATURE None DOCUMENTATION Completed loan application (URAR form 1003) with stated income and assets New credit report Employment and Income: At least one borrower must have a source of income and that source must be verified. -Employed Income: Verbal verification of employment is required and must meet the requirements of the Freddie Mac Seller/Servicer Guide. -Self Employed Income: Verification of existence of the business through a third party source is required and must meet the requirements of the Freddie Mac Seller/Servicer Guide. -Other Income Sources: Verification of the source of income is required. Income source must be an eligible source of income per the Freddie Mac Seller/Servicer Guide. Alternative to Income Verification- If Borrower has no income and the new PITI payment increase is 20% or less, the following may be utilized in lieu of verification of income source: Reserves equal to 12 full monthly payments for the new refinance mortgage may be verified in lieu of verifying a source of income. Eligible funds are limited to funds in the borrower s depository and nondepository accounts, including, but not limited to checking, savings, money markets, stock, bond, and retirement accounts. Most recent monthly or quarterly account statements must be obtained and retained in the mortgage file. Requirements of the Freddie Mac/Seller Servicer Guide do not need to be met (i.e. investigation of large deposits or increases in balance or providing proof of liquidation of funds). However, non-depository accounts must meet the requirements of the Freddie Mac Seller/Servicer Guide. Assets/Funds to Close: All LTV s: Verification of assets/funds to close is not required unless the P&I payment is increasing by more than 20%; loan is a Higher Priced Mortgage Loan (HPML); or a Higher Priced Covered Transaction. See applicable section for additional details. Required documentation for all Relief Refinance loans: Freddie Mac Relief Refinance Loan Amount Calculator Payoff Statement Closing Disclosure (CD) The information in this document is the property of BB&T and is intended for the use of BB&T associates and authorized representatives. FREDDIE MAC RELIEF REFINANCE MORTGAGE

21 ELIGIBLE BORROWERS The borrower(s) on the existing mortgage must be identical to the borrower(s) on the new mortgage, however, a borrower may be removed from the new mortgage provided that: The mortgage file contains evidence that the remaining borrower has been making the mortgage payments, including the payments for any secondary financing, for the most recent 12 month period; or The remaining borrower(s) qualifies for the mortgage based on the requirements for mortgages with a principal and interest payment increase in section (g); or In case of death, a copy of the death certificate is obtained and retained in the mortgage file. Borrower being removed is not required to be removed from the deed or title to the property and retain no ownership interest in the property. In all cases, at least one borrower from the existing mortgage being refinanced must be retained. ESCROWS Required on LTV s greater than 80% ESCROW WAIVER Permitted when the Loan to Value is 80% or less. There is a reduction in Servicing Released Premium for waiving escrows. Refer to BB&T s current Rate Sheet FREDDIE MAC DOCUMENTATION Freddie Mac Checklist HARDEST HIT FUNDS The use of Hardest Hit Funds (HHF) by a Housing Finance Agency (HFA) to pay down or curtail the outstanding mortgage balance on a Borrower s existing loan at the time of refinancing and/or to pay closing costs, financing costs and prepaids/escrows for the Freddie Mac Relief Refinance Mortgage is permitted and must meet the following requirements: Funds provided by the Housing Finance Agency must not result in a lien on the property. Mortgage file must contain a copy of the promissory note or other documentation specifying the terms and conditions of the loan. If repayment of funds is required, the verified payment must be included in the monthly DTI ratio unless the calculation of DTI ratio is not required or repayment of funds is due only upon sale or default. Hardest Hit Funds must be reflected on the HUD-1 Settlement Statement. Property must be located in one of the following Hardest Hit States : Alabama, Arizona, Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, Mississippi, Nevada, New Jersey, North Carolina, Ohio, Oregon, Rhode Island, South Carolina, Tennessee, and Washington DC. HIGHER PRICED COVERED TRANSACTIONS Mortgages classified as a higher priced covered transaction, as defined in Regulation Z, 12 C.F.R (b), must meet requirements that include the following: New Credit Report Minimum indicator credit score of 620 Verification of employment and income-documentation according to Section (g) ii of the Freddie Mac Seller/Servicer Guide Verification of assets/funds to close-documentation according to Section (g) ii of the Freddie Mac Seller/Servicer Guide If repayment of Hardest Hit Funds is required, the verified payment must be included in the monthly DTI ratio, unless repayment of funds is due only upon sale or default Maximum Debt-to-Income (DTI) cannot exceed 45% The information in this document is the property of BB&T and is intended for the use of BB&T associates and authorized representatives. FREDDIE MAC RELIEF REFINANCE MORTGAGE

22 HIGHER PRICED MORTGAGE LOANS Mortgages classified as a higher priced mortgage loan must meet all requirements for Higher Priced Covered Transactions listed above along with the following: Escrow account has been established on the loan and will be maintained for at least the first 60 months. Note: Higher Priced Covered Transactions and Higher Priced Mortgage Loans differ from a High-Cost Loan. BB&T s policy prohibiting the origination of High-Cost Loans remains unchanged. HOMEOWNERSHIP COUNSELING DISCLOSURE Homeownership Counseling Disclosure required per the 2013 HOEPA Rule, an amendment to Regulation X (RESPA). INELIGIBLE LOAN TYPES AND PROGRAMS Existing loans not serviced by BB&T Existing and new mortgages not in first lien position Existing loans not owned or securitized by Freddie Mac Existing loans where the original mortgage being refinanced has a Note Date after May 31, Existing loans not seasoned for three months (that is, the Note date of the mortgage being refinanced must be at least three months prior to the Note date of the Freddie Mac Relief Mortgage). Mortgage being refinanced is currently a HARP loan. HARP-to-HARP loans are ineligible New mortgages as Cash-Out Refinance, Special Purpose Cash-Out Refinances, and Non-Warrantable Condos and Condotels New mortgages that convert interim construction financing to permanent financing New mortgages with Temporary Buydowns New mortgages subject to Downpayment Assistance Programs Properties subject to Property Assessed Clean Energy (PACE) Obligations LOAN PURPOSE No Cash-Out Refinance Only LOAN TYPE Conforming Fixed Super-Conforming Fixed LTV/TLTV/HTLTV Unlimited Refer to our current Price Adjustments and LTV Charts for any price adjustments that might be applicable. MAXIMUM LOAN AMOUNT Up to county specific Freddie Mac Conforming or Super Conforming (if applicable) loan limits MINIMUM LOAN AMOUNT None MORTGAGE INSURANCE If the mortgage being refinanced has mortgage insurance and new mortgage is not <=80% LTV, then the new Freddie Mac Relief Refinance Mortgage is ineligible for sale to BB&T Correspondent Lending. If the mortgage being refinanced did not have mortgage insurance, then no mortgage insurance coverage is required for the new Freddie Mac Relief Refinance Mortgage and the mortgage is eligible for sale to BB&T Correspondent Lending. NOTE Freddie Mac 3200 Unit Number must be included in the property address line. Refer to Legal Document Matrix for additional information. The information in this document is the property of BB&T and is intended for the use of BB&T associates and authorized representatives. FREDDIE MAC RELIEF REFINANCE MORTGAGE