Mortgage 1 Programs Booklet

Transcription

1 Mortgage 1 Programs Booklet *Pricing Enging also contains most investor specific program descriptions and product guidelines ** FGMC Programs - Minimum FICO Mortgage 1 will accept is 580 regardless of FGMC Matrices minimum FICO Conventional Programs Conventional Rate Fannie Mae No FiCO Rate Fredie Mac No FICO Rate Chase Libor ARMS DU Refi Plus Fannie 97% LTV Freddie Refi Open Access Home Possible (Freddie Mac 95%) Home Possible Advantage (Freddie 97%) Home Ready (Fannie Mae) Investor 85% Rate & Term Refi US Bank Freddie Refi Wells Libor ARMS Wells to Wells DU Refi Plus FGMC Conventional Program Link** FGMC programs include Rate, & Homestyle Renovation, Huntington Doctors & Portfolio Programs (15 yr fixed & 3/1, 5/1, 7/1, & 10/1 ARMS) Associated Bank Porfolio ARMS (5/1, 7/1. 10/1) Northpointe Bank Porfolio ARMS ( 5/1, 7/1. & 10/1) FHA Programs FHA Rate FHA Rate for Disaster Victims (203H) FHA Streamline Refi FHA 5/1 ARM Wells to Wells FHA Streamline Refi FGMC FHA Program Link** FGMC Programs included, Streamline, Score Alternative & Construction Rural Development Programs VA Programs Rural Development Rate RD Streamline Assist FGMC RD Progam Link** FGMC programs include, No Score & Streamline VA Rate VA IRRRL FGMC VA Program Link** FGMC programs include, IRRRL & Construction ARM ARM FGMC Conventional Non-Delegated Matrices On Digital Assets On Digital Assets On Digital Assets ARM FGMC FHA Non-Delegated Matrices FGMC RD Non-Delegated Matrices FGMC VA Non-Delegated Matrices Jumbo Programs (AllRegs Login & Password Required)* Available in AllRegs Investor Library AllRegs Login Chase: Products - Non-Agency Program #603 & #623 Chase : Products - Non-Agency - ARMS Programs #755; #756; #757 US Bank Conventional-Jumbo & ARMS Wells Fargo - Seller Guide- Conv Elig. Products : #900 ARMS: # 973; #974; #975 Bond Programs (login and password required) Michigan Ohio Florida Texas MSHDA Communities First Florida Bond SETH

2 Revised 10/06/17 Maximum LTV by Occupancy & Purpose Maximum CLTV/HCLTV Term Minimum FICO Maximum Loan Amount Subordinate Financing Mortgage Insurance Eligible Borrowers Occupancy Ineligible Property Type Title Escrow Waivers Maximum Debt Ratio AUS Response Credit History Non Arms Length Conventional Rate 1 Unit Table of Contents Primary Second Home Investor Purchase 95% 90% 85% Rate & Term 95% 90% 75% Cash Out 80% 75% 75% 2 Unit Purchase 85% N/A 75% Rate & Term 80% N/A 75% Cash Out 75% N/A 70% (same as LTV - see above) LTV is reduced by 5% when loan has subordinate financing 30, 25, 20, 15 & 10 years 620 <= 80 % - No MI required > 80% Standard Coverage MI required Monthly, Single Premium, Split, and Financed MI allowed LPMI allowed with pricing hits (uw dept will order MI for this option) Note: Single Premium MI is counted in Points and Fees US Citizens, Permant Residents. Non-permanent residents allowed Non Permanent Resident Grid in the Loan Placement Workbook) Primary Residence, Second Home, Investment Property Non-Warrantable Condo, Condotel, Co-op, More than 2 units. Fee simple title only. No leasehold estates, No life estate LTV must be 80% or less for waiver of taxes AND insurance May waive homeowners only up to 90% LTV Loans with flood insurance must at least have flood insurance escrowed No waiver allowed for loans with monthly mortgage insurance Note max $424,100 New Subordinate Financing and Resubordination of Existing Subordinate Financing All subordinate financing must meet Fannie mae guidelines for payment, remaining term, etc. Per AUS DU Approve/Eligible LP Findings with Accept/Eligible per underwriter discretion -maximum LTV/CLTV may No manual underwriting allowed (see Significant Derogatory Credit must be recognized by DU and waiting periods must be met (see significant derogatory credit grid in Loan Placement Workbook) Not allowed for 2nd home or investment property. Primary residence may require AVM or review appraisal at underwriter discretion. 1 unit Principal residence - borrower minimum contribution can come from gift funds. Minimum Contribution 2 unit Principal residence (with LTV > 80%) or Second homeborrower must contribute 5% of their own funds. Investment Property - all contribution must be borrower own funds Appraisal Requirements Escrow Holdback for Repairs Per Findings Condition rating of C5 or C6 are only acceptable if subject to repairs that will bring the property to a C4 level. Allowed for items that can not be completed due to weather. Non weather related items approved on exception basis only - see Loan Placement Workbook Multiple Financed Properties Signifcant Derogatory Credit Documentation Principal Residence = unlimited and Second Home = Follow Agency Guidelines Follow Agency Guidelines Per Findings Investment HPML All HPML loans must have $2500 minimum residual income or reserves equal to 3 months PITIA. Residual income less than $800 is ineligible for financing. Investment property and 2nd home loans can not use reserve option and must have $2500 residual income. HPML threshold is determined by adding APOR Refer to the Loan Placement Workbook for Specific Loan Scenarios Not Covered on this Grid

3 Revised 11/20/17 Loan Purpose Maximum LTV Maximum CLTV/HCLTV Maximum Loan Amount Term Minimum FICO Fannie Mae No FICO Rate See Fannie Mae seller guide for full guidelines Purchase & Rate & Term Refinance Only No Cash Out Refis Allowed If one borrower has a usable FICO - 97% maximum No borrower has a usable FICO - 90% maximum Table of Contents (same as LTV - see above) LTV is reduced by 5% when loan has subordinate financing $424,100 30, 25, 20, 15 & 10 years Note max Must run a three merged credit report on all borrowers. This program can be utilized if one or more borrowers do not have a usuable credit score. If one borrower has a credit score the minimum score allowed is 620 Payment References - One borrower has a usable credit score Payment References - All borrowers do not have a usable credit score (see selling guide B & 4-03 for details on reference types and documentation requirements) AUS Response & Underwriting Homebuyer Education Subordinate Financing Mortgage Insurance Eligible Borrowers Occupancy Ineligible Property Type Title Escrow Waivers Maximum Debt Ratio Minimum Contribution Appraisal Requirements Escrow Holdback for Repairs Documentation HPML If the borrower with the credit score is contributing more than 50% of the qualifying income, no credit references are needed for the borrower without a credit score If the borrower with the credit score is NOT contributing more than 50% of the qualifying income you must provide 2 payment references (see below) for each borrower without a credit score Each borrower without a credit score must have 2 payment references from sources that require the borrower to make a periodic payment on a regular basis with intervals that are no longer than every 3 months At least one borrower must have a housing payment history with 0x30 lates for the most recent 12 months The payment history on non-housing references may not exceed 1x30. If multiple nonhousing references are provided only one may have the 1 x 30, the rest must be 0 x 30 Each borrower must have no collections (excluding medical), judgements or tax liens for the most recent 24 months DU Approve/Eligible Loan must be underwritten by Wells Fargo when non-traditional credit is needed. When all borrowers do not have a usable FICO score at least one borrower must particpate in homeowenrship education before the note date New Subordinate Financing and Resubordination of Existing Subordinate Financing All subordinate financing must meet Fannie mae guidelines for payment, remaining term, etc. <= 80 % - No MI required > 80% Standard Coverage MI required Monthly, Single Premium, Split, and Financed MI allowed LPMI allowed with pricing hits (uw dept will order MI for this option) Note: Single Premium MI is counted in Points and Fees US Citizens, Permant Residents. Non-permanent residents allowed Permanent Resident Grid in the Loan Placement Workbook) Primary Residence - 1 unit property only Non-Occupant Co-borrower NOT allowed Non-Warrantable Condo, Condotel, Co-op, Manufactured Home, Florida Newly Converted Condos Fee simple title only. No leasehold estates, No life estate LTV must be 80% or less for waiver of taxes AND insurance May waive homeowners only up to 90% LTV Loans with flood insurance must at least have flood insurance escrowed No waiver allowed for loans with monthly mortgage insurance 40% if no borrower has a FICO. Otherwise follow AUS. 1 unit Principal residence - borrower minimum contribution can come from gift funds. Per Findings Condition rating of C5 or C6 are only acceptable if subject to repairs that will bring the property to a C4 level. Allowed for items that can not be completed due to weather. Non weather related items approved on exception basis only - see Loan Placement Workbook Per the Fannie Mae Seller Guide (see Non All HPML loans must have $2500 minimum residual income or reserves equal to 3 months PITIA. Residual income less than $800 is ineligible for financing. Investment property and 2nd home loans can not use reserve option and must have $2500 residual income. HPML threshold is determined by adding APOR Refer to the Loan Placement Workbook for Specific Loan Scenarios Not Covered on this Grid

4 Revised 11/20/17 LTV and Purpose Maximum CLTV/HCLTV Maximum Loan Amount Term Minimum FICO Freddie Mac No FICO Rate See Freddie Mac seller guide for full guidelines Purchase & Rate & Term Refinance Only (NO cash out allowed) Maximum 95% LTV (same as LTV - see above) LTV is reduced by 5% when loan has subordinate financing $424,100 30, 25, 20, 15 & 10 years Table of Contents Note max Must run a three merged credit report on all borrowers. This program can be utilized if one or more borrowers do not have a usuable credit score. If one borrower has a credit score the minimum is 620 Payment References - One borrower has a usable credit score If the borrower with the credit score is contributing more than 50% of the qualifying income, no credit references are needed for the borrower without a credit score If the borrower with the credit score is NOT contributing more than 50% of the qualifying income you must provide 2 payment references (see below) for each borrower without a credit score Payment References AUS Response & Underwriting Homebuyer Education Subordinate Financing Mortgage Insurance Each borrower without a credit score must have 2 payment references from the United States. A joint reference can count for each borrower At least one borrower must have a housing payment history with 0x30 lates for the most recent 12 months The payment history on non-housing references may not exceed 1x30. If multiple non-housing references are provided only one may have the 1 x 30, the rest must be 0 x 30 Each borrower must have no collections (excluding medical), judgements or tax liens LP Accept Loan must be underwritten by Wells Fargo when non-traditional credit is needed. When all borrowers do not have a usable FICO score at least one borrower must particpate in homeowenrship education before the note date New Subordinate Financing and Resubordination of Existing Subordinate Financing All subordinate financing must meet Freddie Mac guidelines for payment, remaining term, etc. <= 80 % - No MI required > 80% Standard Coverage MI required Monthly, Single Premium, Split, and Financed MI allowed LPMI allowed with pricing hits (uw dept will order MI for this option) Note: Single Premium MI is counted in Points and Fees Eligible Borrowers US Citizens, Permant Residents. Non-permanent residents allowed Non Permanent Resident Grid in the Loan Placement Workbook) (see Occupancy Ineligible Property Type Title Primary Residence - 1 unit property only Non-Occupant Co-borrower NOT allowed Non-Warrantable Condo, Condotel, Co-op, Manufactured Home, No Florida Newly Converted Condos Fee simple title only. No leasehold estates, No life estate LTV must be 80% or less for waiver of taxes AND insurance May waive homeowners only up to 90% LTV Escrow Waivers Loans with flood insurance must at least have flood insurance escrowed No waiver allowed for loans with monthly mortgage insurance Maximum Debt Ratio Per AUS Minimum Contribution 1 unit Principal residence - borrower minimum contribution can come from gift funds. Appraisal Requirements Per Findings Condition rating of C5 or C6 are only acceptable if subject to repairs that will bring Escrow Holdback for Repairs Documentation HPML Allowed for items that can not be completed due to weather. Non weather related items approved on exception basis only - see Loan Placement Workbook Per the Freddie Mac Seller Guide All HPML loans must have $2500 minimum residual income or reserves equal to 3 months PITIA. Residual income less than $800 is ineligible for financing. Investment property and 2nd home loans can not use reserve option and must have $2500 residual income. HPML threshold is determined by adding APOR Refer to the Loan Placement Workbook for Specific Loan Scenarios Not Covered on this Grid

5 Chase Correspondent Lending / Products / Agency Amortizing ARMs (04/26/16) Agency Amortizing ARMs (04/26/16) Table of Contents Included in this document are: Product Specifications Chase Overlays Market Types Special Features Amortization Type Maximum Loan Amount Minimum Loan Amount Loan Terms Maximum LTV/CLTV & Minimum Credit Score Underwriting Specifications Annuitization of Assets Eligible Funds Prepayment Options ARM Features Escrow Waivers Principal Curtailments Appraisals Family Opportunity Private Mortgage Insurance Assumability Geographic Restrictions Property Type Bankruptcy & Foreclosure Income Qualifying Ratios Buydown (Temporary) Interested Party Contributions Recast Option Completion Escrows Legal Documents Redemption Rights Construction to Perm Financing - Single Close and Two Time Close Requirements Live Free Mortgages Refinance (Cash Out) Continuity of Obligation Multiple Property Ownership Refinance (No Cash Out) Conversion of Primary Residence Negative Amortization Relocating/Trailing Co- Borrower Conversion Option Non-Occupant Co-Borrowers Reserves Credit History Non-Owner Occupied Property Subordinate Financing Deed Restricted Properties Non-US Citizens Title/Deed Restrictions Documentation Predatory or High Cost Loan Underwriting Method Eligible Borrowers PRODUCT SPECIFICATIONS Chase Overlays Refer to the Chase DU/LP Overlay Matrix for Chase specific requirements that must be applied to loans submitted to DU or LP Market Types Primary Residence/Second Vacation Home/Investment Product Market Type 5/1 LIBOR ARM 706 7/1 LIBOR ARM /1 LIBOR ARM 509 Special Features Eligible features: Agency High Balance Loan Limits Texas 50(a)(6) Available on 5/1, 7/1, and 10/1 ARM transactions (Market Types 706, 518, and 509) Amortization Type Fully Amortizing Maximum Loan Amount Number of Units 48 Contiguous States Alaska & Hawaii 1 Unit/Condo/PUD/Co-op $424,100 $636,150 Minimum Loan Amount $5,000 Loan Terms 5/1 and 7/1 LIBOR ARMs 2 $543,000 $814,500 3 $656,350 $984,525 4 $815,650 $1,223,475

6 10, 15, 20, 25 and 30 Years 10/1 LIBOR ARM 15, 20 and 30 Years Maximum LTV/CLTV & Minimum Credit Score Primary Residence Transactio Type Property Type DU Approve/Eligible All States Max Min Credit LTV/CLTV/H Score LP Accept/Eligible All States Max LTV/CLTV/H Min Credit Score Purchase 1 Unit/PUD/Condo (Attached/Detached) 90/90% /95% 660 Co-op* (Attached/Detached) 90%/NA /95% Unit 75/75% /80% Unit 65/65% /80% 660 No Cash Out Refinance 1 Unit/PUD/Condo (Attached/Detached) 90/90% /95% 660 Co-op* (Attached/Detached) 90%/NA /95% Unit 75/75% /80% Unit 65/65% /80% 660 Cash Out Refinance 1 Unit/PUD/Condo (Attached/Detached) 75/75% /80% 660 Co-op* (Attached/Detached) 75%/NA 80/80% Units 65/65% 75/75% 660 *Co-op eligible in NY only. See Geographic Restrictions topic in this Guide Second/Vacation Home Transactio Property Type DU Approve/Eligible All Type States Max LTV/CLTV/H Min Credit Score LP Accept/Eligible All States Max LTV/CLTV/H Min Credit Score Purchase 1 Unit/PUD/Condo (Attached/Detached) 80/80% /85% 660 Co-op* (Attached/Detached) 80%/NA /85% Units NA NA NA NA No Cash Out Refinance 1 Unit/PUD/Condo (Attached/Detached) 80/80% /85% 660 Co-op* 75%/NA /85% Units NA NA NA NA Cash Out Refinance 1 Unit/PUD/Condo (Attached/Detached) 65/65% /75% 660

7 Co-op* (Attached/Detached) NA NA NA NA Correspondents can deliver cooperative share loans secured by second homes in New York City when: Second home is the only cooperative unit owned by the borrower, and Borrower's primary residence is not located in New York City Non-Owner Occupied Transactio Type 2-4 Units NA NA NA NA Property Type DU Approve/Eligible All States Max LTV/CLTV/H Min Credit Score LP Accept/Eligible* All States Max LTV/CLTV/H Min Credit Score Purchase 1 Unit/PUD/Condo (Detached) 75/75% /85% 660 Co-op* (Attached/Detached) NA NA NA NA 2-4 Units 65/65% /75% 660 No Cash Out Refinance 1 Unit/PUD/Condo (Attached/Detached) 65/65% /75% 660 Co-op* (Attached/Detached) NA NA NA NA 2-4 Units 65/65% /75% 660 Cash Out Refinance 1 Unit/PUD/Condo (Attached/Detached) 65/65% /75% 660 Co-op* (Attached/Detached) NA NA NA NA UNDERWRITING SPECIFICATIONS Annuitization of Assets Eligible on DU approved loans only. ARM Features Index: O 1 Year LIBOR ARM Rate Adjustments: O Interest rate can be adjusted up or down at each rate change date, based on the movements in the index O The interest rate will be adjusted to equal the sum of the index plus the required margin, rounded to the nearest.125% subject to the interest rate caps O The monthly payment will be adjusted in accordance with the change in the interest rate Interest Rate Change Dates: O The interest rate at lock-in will remain constant until the first rate change date. Subsequent rate change dates will occur on the 1st day of every 12th calendar month thereafter O The first change date is the month prior to the First Payment date plus the number of years (5, 7 or 10) based on the ARM program type. For Example: 5/1 ARM with a First Payment date of 4/01/2013 would have an Interest Rate change date of 3/01/2018 Caps: O 5/1 LIBOR ARM: 2/2/5% O 7/1 & 10/1 LIBOR ARM: 5/2/5% Margin: O 5/1, 7/1,10/1 LIBOR ARM: 2.25% O The Floor is the margin ARM Change Look Back Period: O 45 days 2-4 Units 60/60% /70% 660

8 Note: For assistance identifying the ARM index, margin and caps, refer to the ARM Job Aid in ChaseLoanManager > Resource Center > Topics > Products Appraisals Follow AUS messaging for appraisal requirements, plus: If using DU approval, Property Inspection Waiver (PIW) is eligible on refinance transactions If using LP approval, Property Inspection Alternative (PIA) is not eligible Additional due diligence required when Final DU or LP Findings indicates High Value Flag Assumability Loans are assumable after the initial fixed rate period under certain conditions described in the Security Instrument Co-op loans are not assumable Bankruptcy & Foreclosure Bankruptcy or foreclosure must be recognized by AUS in the borrower's history. An Approved/Eligible recommendation must be received Foreclosure: Refer to Derogatory Credit DU and LP for requirements Buydown (Temporary) Not available Completion Escrows Eligible on Purchase transactions only. Refer to Escrow Holdback/Completion Escrow Requirements for detailed requirements Construction to Perm Financing - Single Close and Two Time Close Requirements A Construction-to-Permanent financing mortgage can be closed as a single close transaction or as a two time closing transaction The appraiser's Certificate of Completeness/Appraisal Update, with photo of the completed property, and Certificate of Occupancy (or equivalent form) from applicable government authority is required for both types of transactions Single Close Requirements: A Single Close transaction is a loan that combines construction and permanent financing into a single transaction with Modification For Single Close transactions, please refer to Products > Construction to Perm Modification (Single Close) Two Time Close Requirements: A Two Time Close transaction involves two separate closing transactions, one for the construction phase and another closing for the permanent financing DU Underwritten Loans: Limited Cash Out/No Cash Out or Cash Out Refinance transaction Limited Cash Out (NCO or Cash Out Refinance) Use the maximum refinance LTV/CLTV/HCLTV The LTV is calculated by dividing the loan amount of the construction-to-permanent financing by the as-completed appraised value of the property (lot and improvements) LP Underwritten Loans: No Cash Out and Cash Out Refinance Use the maximum refinance LTV/CLTV/HCLTV/HTLTV The maximum LTV/CLTV will be calculated using the current appraised value for the property (lot & improvements), regardless of length of ownership See Refinance Cash Out and Refinance No Cash Out sections for additional requirements on refinance transactions Continuity of Obligation Refer to Correspondent Lending Guide > Credit Guide DU and LP > Definition Refinance, Construction to Perm, Land Contract DU and LP > Continuity of Obligation Conversion of Primary Residence Follow Agency Requirements and any respective Chase Overlays. Conversion Option Not eligible Credit History Acceptable credit history determined by AUS, document per AUS findings, plus Minimum 660 Credit Score required Deed Restricted Properties 1 Unit/Condo/PUD and 2 Unit properties only AVMs not acceptable Co-ops not eligible See Appraisal/Property Requirements > Property General Requirements > Deed Restricted Properties section for detailed requirements. Note: Not eligible on LP transactions Documentation Full/Alt Doc, as determined by DU or LP

9 For loans submitted to DU for an underwriting recommendation, follow DU Findings, Fannie Mae documentation requirements and Chase defined DU/LP Overlay requirements For loans submitted to LP for an underwriting recommendation, follow LP Findings, Freddie Mac documentation requirements and Chase defined DU/LP Overlay requirements Eligible Borrowers U.S. Citizens Permanent Resident Aliens* Non-Permanent Resident Aliens* *Refer to Correspondent Lending Guide > Credit Guide DU and LP > Borrower DU and LP > Foreign Borrowers Eligible Funds Must be from borrower s own funds, or Gifts permitted for Primary Residence and Second/Vacation Homes. O 1 Unit Primary Residence: Gift funds can fund all or part of the down payment and closing costs O 2-4 Unit Primary Residence or 1 Unit Second Home Minimum 5% from borrower s own funds required for LTV/CLTV/HCLTV > 80% Escrow Waivers Eligible, see Closed Loan Documentation Requirements > Escrow Waivers for applicable premiums and restrictions See Registration and Pricing > Best Efforts Pricing > Service Release Premium for information on applicable service release premiums Underwriter approval required for LTV >80% LTV must be < = 90% for waiver of Tax and Hazard insurance escrows Private mortgage insurance premiums must always be escrowed, unless single premium Notes: Escrow waivers are not permitted on1-4 Unit/Condo/PUD Primary Residence transactions with LTV >= 80% in New Mexico In accordance with California State Law, LTV must be less than 90.00% for waiver of Tax and/or Hazard Insurance escrows for loans secured by properties in California Family Opportunity College bound son or daughter residing in a one unit second home residence purchased by their parent(s) (Max LTV subject to MI eligibility requirements) O Child must be enrolled in college (documentation validating current enrollment is required) O Subject property must be within a reasonable proximity to the university that the child is attending O Property must be a reasonable distance from the parent s home in order to be classified as a true second home. The subject property can provide the parents a place to stay while visiting the campus, but it will be the child s primary residence O Property cannot be rented and it must be occupied by the child for a minimum of one year O Borrowers may not own additional second/vacation homes in the same locale O A letter from the borrower describing the purpose is required O Property must be registered, underwritten and priced as a second/vacation home O Parents will apply and qualify for the loan. The child is not an applicant and does not factor into the qualifying for the mortgage O Parents own the property. If the child is of legal age, the child may join the parents on the title, but it is not required Adult children purchasing or refinancing (NCO refinance only) a primary residence for elderly parent (s) who are unable to work or have insufficient income to qualify for a mortgage (DU only) (Max LTV subject to MI eligibility requirements) O Elderly parents must be unable to work or not have sufficient income to qualify for a mortgage on their own. The adult child must provide a letter of explanation outlining the intent to purchase a home for elderly parents who are financially limited O The parent(s) will occupy the subject property as their primary residence O The adult child may already own his or her own primary residence O Assisting an elderly parent has no distance requirements on where the adult child s primary residence is located O Property must be registered, underwritten and priced as a primary residence O The subject property must be submitted to DU as the primary residence and the borrower s current primary residence will be listed as other real estate owned O The parent(s) and adult child can both apply for the loan, but the child is the primary source of qualification. The parent is not required to be on the loan O Title must be in the borrower(s) name, but the elderly parent(s) may also be on the title Parents purchasing or refinancing (NCO refinance only) a primary residence for a disabled son or daughter who are unable to work or have insufficient funds to qualify for a mortgage standard LTVs apply (DU only) (only applicable with 1-unit properties) O Disabled adult child must be unable to work or not have sufficient income to qualify for a mortgage on his or her own. The parent(s) must provide a letter of explanation outlining the intent to purchase a home for their physically handicapped or

10 O Disabled adult child will occupy the subject property as his or her primary residence O Parent(s) may already own their own primary residence O Assisting a disabled adult child has no distance requirements on where the adult child s primary residence is located O Property must be registered, underwritten and priced as a primary residence O The subject property must be submitted to DU as the primary residence and the borrower s current primary residence will be listed as other real estate owned O The parent(s) and disabled adult child can both apply for the loan, but the parent(s) are the primary source of qualification. The disabled adult child is not required to be on the loan O Title must be in the borrower(s) name, but the disabled adult child may also be on the title Geographic Restrictions Texas 50(a)(6) Homestead Properties: Limited to a maximum LTV/CLTV/HCLTV of 80/80%. See Texas 50(a)(6) Product Guide under products>texas Refinance Transactions Limited to 5/1, 7/1 and 10/1 ARM transactions evaluated through DU only. Not permitted on 5/1, 7/1, and 10/1 ARM transactions evaluated through LP. Co-ops: Eligible in NY only Refer to Co-op Guide > Cooperative Share Lending Overview > Chase Cooperative Lending Areas Miscellaneous State Legislation Requirements: Follow your state-specific guidelines, plus Alaska: Maximum LTV limited to 80% on loans with loan amounts less than or equal to $25,000 California: LTV must be less than 90.00% for waiver of Tax and/or Hazard Insurance New Mexico: Escrow Waiver not permitted on 1-4 Unit/Condo/PUD Primary Residence transactions with an LTV >= 80% Income Follow DU/LP Findings and Fannie Mae/Freddie Mac Income calculation/documentation requirements (depending on AU submission type). In addition: O Signed 4506-T and tax transcripts required on all loans. For details and validation requirements refer to Tax Transcripts. Refer to the DU and LP Overlay Matrix for self employed income requirements. Interested Party Contributions Occupancy Type LTV/CLTV/HCLTV Maximum IPC Primary Residence >90% 3% >75% 6% <= 75% 9% Second Home >75% 6% Non-Owner Occupied ALL 2% NOTE: May include seller paid prepaid items and other costs (may not exceed the allowed percentage as dictated by the LTV/CLTV/HCLTV). The CLTV limitations include secondary financing from all sources Legal Documents Standard Agency documentation applies Live Free Mortgages Not eligible Note: These loans are originated by lenders at relatively high rates and sold with the intent of specifically targeting these same borrowers with a low/no cost refinance in the near future. Thus the originating lender would quickly generate an additional service release premium. This unethical practice often includes an arrangement whereby the originating lender agrees to pay a number of installments on the loan ( live free ). Chase will not purchase any loan made under these circumstances or any seasoned loan that the lender has agreed to refinance or that is in the process of refinancing. Multiple Property Ownership If the subject property is: Primary Residence: Unlimited Second Home: 4 Investment: 4 Refer to Correspondent Lending Guide>Credit Guide DU and LP > Occupancy DU and LP > Multiple Financed Properties for specific guidelines. Negative Amortization None Non-Occupant Co-Borrowers <= 75% 9%

11 All ARM Products Maximum Combined DTI is the more restrictive AUS Findings or 50% For DU Submissions, maximum DTI is more restrictive of DU Findings or 50% LP provides borrower qualifying ratios and combined qualifying ratios from both borrower and non- occupant co-borrower If LTV/CLTV/HCLTV /HTLTV >80%, occupant borrower must have 5% of his/her own funds for down payment For LTV/CLTV/HCLTV/HTLTV maximum follow AUS. See Qualifying Ratio section of this guide for qualifying rate and additional requirements Non-Owner Occupied Property Newly Contracted properties: May not be affiliated with the builder/developer or property seller Down payment must be from own sources Gift funds not permitted Non-US Citizens Non-Permanent Resident Alien: Refer to AUS findings and Correspondent Lending Guide > Credit Guide DU and LP > Borrower DU and LP > Foreign Borrowers Non-Resident Alien Not Eligible Permanent Resident Alien: Eligible with proof of lawful permanent residency Underwritten the same as U.S. citizen Predatory or High Cost Loan Chase Correspondent will not purchase loans defined as a high cost or predatory mortgage loan. Refer to Compliance-Related Topics > High Cost. Prepayment Options None Principal Curtailments Principal Curtailments permitted on No Cash Out or Limited Cash Out and must be reflected on the HUD-1 Settlement Statement (for applications dated before 10/03/2015) or Closing Disclosure (CD) (for applications dated on or after 10/03/2015). Agency Maximum Principal Curtailment Fannie Mae Lesser of 2% or $2,500 Freddie Mac Lesser of 1% or $5,000 Note: All loans must comply with current guidelines and program requirements regarding cash-back to the borrower. Private Mortgage Insurance Private mortgage insurance is required on all loans with LTV s >80%. In addition to ensuring that the loan meets Chase and Agency guidelines, Correspondent must ensure that the loan meets the MI provider s insurance requirements. Follow AUS Findings, plus Standard MI coverage required Single Premium/Life of Loan coverage is eligible Seller can pay first year or onetime single premium if within contribution limits Not Eligible: O Financed, Reduced, Minimum MI, Lower Cost and Split Premium mortgage insurance O Chase paid LPMI Standard Coverage LTV MI Coverage % > 80% - 85% 12% > 85% - 90% 25% > 90% - 95% 30% Refer to Insurance > Private Mortgage Insurance. Property Type 1-4 Unit, Primary Residence 1 Unit, Second/Vacation Home

12 1-4 Unit, Non-Owner Occupied Attached/Detached Properties Notes: Condotel/Lodging Units properties are NOT eligible Condos and attached PUDs must meet Fannie Mae or Freddie Mac criteria. Refer to Chase Condo and PUD Quick Reference Guides for Condo/PUD Project Approval Guidelines located under the Quick Reference Guides and Matrices for an outline of ineligible project types Co-ops permitted in NY only and must meet Fannie Mae or Freddie Mac criteria. Refer to Co-op Guide > Cooperative Requirements 1-4 Family properties require a 1-4 Family Rider Manufactured homes are NOT eligible Qualifying Ratios ARM Ratio Rate 5/1, 7/1, 10/1 ARMs Follow more restrictive of AUS Findings or 50% Use the appropriate rate for the ARM type as noted below 5/1 ARM DU: Qualify at the higher of the Note rate plus 2% or the fully indexed rate LP: Qualify at the higher of the Note rate plus 2% or the fully indexed rate 7/1 and 10/1 ARMs DU: Qualify at the higher of the Note rate or the fully indexed rate LP: Qualify at the higher of the Note rate or the fully indexed rate Recast Option A recast option allows the principal and interest payment amount to be recalculated when an additional principal reduction is applied to the loan. The calculation is based on the remaining principal balance after the curtailment (amount in excess of the minimum required principal) is made. The interest rate and term of the loan remain unchanged. Amount of escrow payment is reviewed and calculated on an annual basis. All recast requests must be made after the loan is purchased by Chase and set up for Servicing. The request should be directed to the Servicing Department at or faxed to , Attention: Recasts Department. Typical recast guidelines are listed below: Recast requests are considered on a case-by-case basis. All Agency and Non-Agency product requests are contingent upon investor requirements. Minimum curtailment amount is generally $5,000, but may vary by product. A processing fee (generally $150-$300) may be charged. Redemption Rights Loans with an unexpired redemption period are eligible for delivery to Chase providing that the following conditions are met: The property must be located in a state where it is common and customary to sell a single family property during a redemption period. The mortgagee title insurance must contain a specific exception for the unexpired right of redemption and affirmatively insure the mortgagee against all loss arising out of the exercise of any right of redemption, without qualification. If any party exercises a right to redeem the mortgaged property, the mortgage must be paid off directly out of the redemption proceeds with no requirement for any further action or claim for repayment. The Correspondent must warrant that Chase will not incur any loss due to the exercise of any party of a right to redeem the mortgaged property. Correspondent must identify loans with unexpired redemption rights on the Funding Request Form. Note: Lenders are also encouraged to provide written disclosures to borrowers regarding the redemption period on these properties. Refinance (Cash Out) 6 months seasoning required Delayed Financing: If property was purchased within six months of application without mortgage financing, a cash-out refinance is eligible subject to meeting Fannie Mae and Freddie Mac requirements (Note: Funds received as gifts and used to purchase the property may not be reimbursed with proceeds of the new mortgage.) Verification of funds are required and must meet reserve requirements and verified cash to close The LTV/CLTV/HCLTV and property value will be based on the current appraised value

13 Pay-off of any junior liens not related to the original purchase of the subject property will be considered a cash-out refinance Existing first mortgage was originated within 6 months of the application date and was a cash-out transaction Payoff of seasoned Home Equity Lines of Credit that have had draws within the last 12 Months Mortgage placed on a property previously owned free and clear by the borrower (Continuity of Obligation topic for specific criteria) After payoff of closing costs and pre-paid items any cash back in excess of the lesser of 2% of the new loan amount or $2,000 is considered a cash-out refinance Refer to Credit Guide DU and LP > Definition Refinance, Construction to Perm, Land Contract- DU and LP > Cash-Out Refinance Definition for detailed requirements for Cash-Out Refinance transactions. Refinance (No Cash Out) Verification of funds are required and must meet reserve requirements and verified cash to close Payoff of existing first mortgage (including a first lien home equity loan or HELOC) and payoff of a junior lien related to the purchase of the subject property is permitted The HUD-1 (transactions before 10/03/2015) or CD (transactions on or after 10/03/2015) related to the original purchase transaction must be provided to document the second lien was related to the purchase transaction Closing costs and prepaid items may be financed Maximum incidental cash permitted back to the borrower is the lesser of 2% of the new loan amount or $2,000 Refer to Credit Guide DU and LP > Definition Refinance, Construction to Perm, Land Contract DU and LP > No Cash-out Refinance Agency Products for detailed requirements for No Cash-out Refinance transactions. Note: Paying down a HELOC in lieu of paying off and closing a HELOC is considered a Cash Out Refinance transaction; regardless if the HELOC was used as purchase money. Relocating/Trailing Co-Borrower Corporate Relocation Permitted. Refer to Credit Guide > Employment > Corporate Relocation for requirements Restricted Relocation Not permitted Trailing Co-Borrower Not permitted Reserves Primary Residence: Follow Fannie Mae (DU) or Freddie Mac (LP) requirements and/or findings, PLUS: For loans submitted to LP Primary 2-4 Units: 6 months PITI for subject property Second/Vacation Home: Follow Fannie Mae (DU) requirements and/or findings, PLUS: Pursuant to Fannie Mae Announcement 09-02, 2 months additional reserves required for each additional financed Second/Vacation or Investment Property owned. For loans submitted to LP, 2 months PITI for subject property, PLUS: Pursuant to Freddie Mac Announcement 10-23, 2 months additional reserves required for each additional financed Second/Vacation or Investment Property owned. Non-Owner Occupied: Follow Fannie Mae (DU) requirements and/or findings, PLUS: Pursuant to Fannie Mae Announcement 09-02, 2 months additional reserves required for each additional financed Second/Vacation or Investment Property owned. For loans submitted to LP, 6 months PITI for subject property, PLUS: Pursuant to Freddie Mac Announcement 10-23, 2 months additional reserves required for each additional financed Second/Vacation or Investment Property owned. Subordinate Financing Refer to Credit Guide DU and LP > Debt Analysis Guidelines DU and LP > Subordinate Financing for detailed requirements Title/Deed Restrictions The following are ineligible for delivery to Chase: Life Estate Blind Trusts Irrevocable Trusts Community Land Trusts Non-permitted additions outside of Chase published guidelines Underwriting Method Loans must be evaluated through DU or LP 2 Unit Properties require a DU or LP approval

14 Loans with subordinate financing require DU or LP approval Manual underwriting not permitted DU Expanded Approvals/LP A Minus not eligible Eligible Underwriting Methods: O O Chase Underwriting Delegated Underwriting is eligible

15 Revised Required Borrower Benefit reduced monthly principal and interest OR (underwriter must note benefit on 1008) reduction in the interest rate OR reduction in the amortization term OR a more stable mortgage product (ARM to ) Maximum LTV/Minimum FICO 105% with 680 FICO Maximum CLTV/HCLTV 110% TERM DU Refi Plus - Mtg 1 Program Description 100% with 620 FICO 30, 25, 20, 15 & 10 years Table of Contents Subordinate Financing New subordinate financing allowed only if replacing exisitng subordinate financing Existing subordinate financing being retained must be resubordinated Existing purchase money 2nd can not be rolled in (must resubordinate) Mortgage Insurance <= 80 % - No MI required > 80% - current loan has no MI (including cancelled MI) - No MI required Eligible Borrowers Occupancy Title Previously Modified Loan Ineligible Property Type BK & Foreclosure Mortgage Payment History Escrow Waivers Maximum Debt Ratio AUS Response Appraisal Requirements Documentation Maximum Cash Back > 80% - current loan has MI - MI required. - NOT ELIGIBLE AT THIS TIME Includes loans with LPMI Borrower(s) may be added to the new loan, provided the existing borrower(s) is retained. An existing borrower(s) may be removed from the new loan provided that at least one of the original borrower(s) is retained on the new loan. 1-2 unit Primary Residence, Second Home (1 unit only); 1-2 unit Investment Property Fee simple only. No leasehold. No life estate Loans that have been modified with interest or principal forgiveness are not allowed Manufactured Home, Non-Warrantable Condo, Condotel, Co-op Minimum 4 years since BK and minimum 7 years since Foreclosure. No "extenuating circumstance" allowed to reduce waiting period Must be 0x30 for lesser of life of loan or last 12 months LTV must be 80% or less Determined by DU Must be Approve/Eligible - Findings must show DU Refi Plus Per findings. May be eligible for PIW (property inspection waiver) PIW borrower must sign affidavit that property is not currently listed for sale NO PIW ALLOWED FOR Condos, Co-ops or Attached PUDS. Per Findings $250 maximum cash back. Details of transaction on 1003 AND HUD must both reflect less than $250 back.

16 Mortgage 1 Standard 97% LTV Program 8/2/2017 Table of Contents Findings DU Version Approve/Eligible LTV to 97% CLTV to 97% (sub. Financing is NOT a Community Second) to 105% (sub. Financing IS a Community Second) Loan Purpose Occupancy Non Owner Occupant CB Allowed Non-Borrower Income Term Title Property Type First Time Homebuyer Income Limits Homebuyer Education & Counseling Purchase Owner Occupied Primary Residence NO NO 30 year Rate Fee simple only. No leasehold. No life estate 1 unit SFD, Fannie Eligible Condo or PUD NO Manufactured housing At least one borrower must be a first-time home buyer, as indicated on the Uniform Residential Loan Application (Form 1003) in Section VIII., when at least one borrower responds No to Declaration M: Have you had an ownership interest in a property in the last three years? No income limit requirements Not required Minimum Borrower Contribution Not required - down payment can come from eligible gift funds per FNMA guidelines Mortgage Insurance 35% coverage required Reserves Per DU findings Special Feature Code % LTV FAQ

17 Revised 05/01/17 Required Borrower Benefit (underwriter must note benefit on 1008) Maximum LTV/Minimum FICO Maximum CLTV/HCLTV Maximum Debt Ratio 45% TERMS Available Maximum Loan Amount Calculation Maximum Cash Back Subordinate Financing Mortgage Insurance Freddie Refi Relief - Open Access reduced interest rate OR a more stable mortgage product (ARM to ) OR reduction in the amortization term OR 95% with 740 FICO (primary residence only) 80% with 680 FICO (primary residence only) 80% with 700 FICO (second home) (same as LTV - see above) 30 year, 25 year, 20 year and 15 year fixed rate Table of Contents Complete Freddie Refi Loan Amount Calculation Form (must be included with submission) Closing costs & Prepaids rolled into loan amount can not exceed the LESSER of 4% of the current loan balance of $5000 $250 maximum cash back. Details of transaction on 1003 & CD must both reflect less than $250 back. No new subordinate financing allowed Existing subordinate financing must be resubordinated Existing purchase money 2nd can not be rolled in (must resubordinate) <= 80 % - No MI required > 80% - current loan has no MI (including cancelled MI) - No MI required > 80% - current loan has MI - MI required. - MI may be transferred/modified (NOT ordered new) Eligible Borrowers Occupancy Ineligible Property Type Multiple Property Ownership BK & Foreclosure Mortgage Payment History Seasoning Escrow Waivers AUS Response Appraisal Requirements Documentation *The borrower(s) obligated on the Note must be the same as the Borrower(s) on the Note on the Mortgage being refinanced, except a borrower may be omitted from the Note provided that at least one borrower(s) from the Mortgage being refinanced is retained *A borrower may be added to the Note provided that at least one borrower(s) from the Mortgage being refinanced is retained. *A non-occupying borrower may not be added to a Mortgage secured by a Primary Residence A copy of the original Note is required Primary Residence, Second Home (1 unit only) Manufactured Home, Non-Warrantable Condo, Condotel, Co-op (Condo project can not be on Chase ineligible list) Primary - No Limit. Second Home - Max of 4 financed properties Minimum 4 years since BK and minimum 7 years since Foreclosure. No "extenuating circumstance" allowed to reduce waiting period Must be 0x30 for lesser of life of loan or last 12 months Loan must be seasoned for at least 3 months LTV must be 80% or less (not allowed with Flood Insurance) Must have offering identifier 310 and show OPEN ACCESS with ACCEPT response Must show Freddie Mac loan number and MI information in the findings Full appraisal required HVE of 20% or greater on findings requires a review appraisal Per LP

18 5/1/2017 Table of Contents Findings Loan Prospector - Accept LTV maximum 95% CLTV Mortgage 1 Home Possible maximum 95% for institutional 2nds and 105% for community affordable 2nds Minimum FICO 660 Loan Purpose Purchase Term 30 year Rate Occupancy Owner Occupied Primary Residence Title Fee simple only. No leasehold. No life estate. Maximum DTI determined by LP Non Owner Occupant CB Allowed NO Property Type 1 unit SFD, Freddie Eligible Condo or PUD NO Manufactured housing First Time Homebuyer Not required. See homebuyer education requirements if all borrowers are first time homebuyers Income Limits Borrowers annual income cannot exceed 100% of the area median income limits. All reported income that is verified and meets the criteria for stable monthly income must be used to qualify the borrower. Note: No income limit when the property is located in an underserved area determined by using the Freddie Mac Affordable Income and Property Eligibility Tool Homebuyer Education & Counseling Ownership of Other Property Mortgage Insurance Subordinate Financing/Gift Minimum Borrower Contribution Interested Party Contributions Reserves Offering Identifier Code If all borrowers are first time homebuyers at least one borrower must take homebuyer education that meets National Industry for Homeownership Education and Counseling standards. Eligible sources are HUD approved counseling agencies, Internet based MI company programs, or Freddie Mac Credit Smart program. The borrower may not, as of the note date, have any ownership interest in any other residential properties to 95.00% - 25% coverage required to 90.00% - 25% coverage required to 85.00% - 12% coverage required An Affordable Second that does not require a payment before the due date of the 61st payment under the Home Possible mortgage may be entered in Loan Prospector in the Total Gift Fund field. In all other respects, the Affordable Second must be considered as secondary financing. Not required - down payment can come from eligible gift funds per Freddie Mac guidelines > 90% - 3% > 75% up to 90% - 6% <75.01% - 9% determined by LP 250 (Home Possible Advantage) select from dropdown on Freddie Mac Additional Data screen

19 Mortgage 1 Home Possible Advantage 5/1/2017 Table of Contents Findings Loan Prospector - Accept LTV to 97% CLTV to 105% (subordinate Financing Must be a Community Second) Minimum FICO 660 Loan Purpose Purchase Term 30 year Rate Occupancy Owner Occupied Primary Residence Title Fee simple only. No leasehold. No life estate Maximum DTI determined by LP Non Owner Occupant CB Allowed NO Property Type 1 unit SFD, Freddie Eligible Condo or PUD NO Manufactured housing First Time Homebuyer Not required. See homebuyer education requirements if all borrowers are first time homebuyers Income Limits Borrowers annual income cannot exceed 100% of the area median income limits. All reported income that is verified and meets the criteria for stable monthly income must be used to qualify the borrower. Note: No income limit when the property is located in an underserved area determined by using the Freddie Mac Affordable Income and Property Eligibility Tool Homebuyer Education & Counseling Ownership of Other Property Mortgage Insurance Subordinate Financing/Gift If all borrowers are first time homebuyers at least one borrower must take homebuyer education that meets National Industry for Homeownership Education and Counseling standards. Eligible sources are HUD approved counseling agencies, Internet based MI company programs, or Freddie Mac Credit Smart program. The borrower may not, as of the note date, have any ownership interest in any other residential properties. 25% coverage required An Affordable Second that does not require a payment before the due date of the 61st payment under the Home Possible mortgage may be entered in Loan Prospector in the Total Gift Fund field. In all other respects, the Affordable Second must be considered as secondary financing. Minimum Borrower Contribution Not required - down payment can come from eligible gift funds per Freddie Mac guidelines Interested Party Contributions Maximum 3% Reserves determined by LP Offering Identifier Code 250 (Home Possible Advantage) select from dropdown on Freddie Mac Additional Data screen