Correspondent Overlay Matrix AS OF 8/15/2016

Transcription

1 Correspondent Overlay Matrix AS OF 8/15/2016 General Policy Overlays ATR/QM All All loan must be QM Agency Eligible - no non-qm loan Credit history Non-traditional credit is not acceptable Per DU/LP Debt to Income Per DU 31/43 for Refer and Manual Downgrades, up to 50% with compensating factors Non-profit & government agency DAPs are allowed Down Payment Assistance Programs All No community seconds, or secured loans No MCC's 620 Fico Minimum / Streamline 600 / 580 Income Documentation All VOE only is not allowed Amended tax returns within 90 days of the application/purchase contract are prohibited Amended tax returns within days of the application/purchase contract are allowed by exception only Maximum Loan Exposure All the investor will not extend more than 4 loans to any one individual or an aggregate of $1MM Mortgage Insurance All Borrower paid financed single premium not allowed Split premium MI is not allowed Tax Transcripts All Per DU/LPA Verbal VOE All Required on all loans and must be dated within 10 days of funding. Can NOT be obtained after funding Specific Overlays AUS DU only Condo Projects Must be HRAP/DELRAP Approved Site Condos appraisals must be on form 1073 Credit Report Mortgage only credit report for streamlines are allowed Flip Transactions Per HUD requirements High Balance If total Mortgage indebtedness exceeds $1MM, approval from the CLD is required

2 Property/Occupancy SFR, Condo s, PUD s (attached & detached), 2-4 units. First time home buyers on 3-4 units are allowed with a minimum of 12 months rent/lease history Sweat Equity Not allowed FICO Max DTI of 43% Exception to 50% with 3 months reserves of borrower's own funds FICO SFR, PUD or condos only; 2-4 units OK if no rents used to qualify 3 months reserves required on manual underwrites with DTI 43% Max DTI of 43% Ratios up to 50% per HUD guidelines & 3 months reserves from borrower s own funds Tax Transcripts W-2 validation for wage earners allowed - Commission, Sch C or Sch E borrowers are ineligible Specific Overlays Appraisal Per DU/LPA AUS Approve/Eligible or Accept, no manual underwrites Condo Full Project Review Allowed - See the Product Matrix for full details Debt Ratios Per DU/LP Delayed Financing Delayed financing is prohibited Down Payment Owner Occupied and 2nd homes: Entire down payment may be a gift. Max Financed Properties Second Home & Investment property: Per Agency Occupancy First time home buyers on investment transactions are not eligible. Property 2-4 units Condo PUD (attached & detached) SFR Leasehold estate must comply with the investor Guidelines.. Tax Transcripts W-2 validation for wage earners allowed - Commission, Sch C or Sch E borrowers are ineligible Specific Overlays Assets Sweat Equity not allowed Appraisal Per DU/LP AUS Approve/Eligible or Accept, no manual underwrites

3 Debt Ratios Per DU/LP Down payment Assistance No Community Seconds Gifts and Grant OK HomeStyle Renovation Not Allowed Max CLTV/HCLTV 97% Max Properties The borrower may not have ownership in any other residential property at the time of closing Occupancy Owner Occupied Primary Residence only Property 2-4 units Condo PUD (attached & detached) SFR Leasehold estate must comply with the investor Guidelines.. Tax Transcripts W-2 validation for wage earners allowed - Commission, Sch C or Sch E borrowers are ineligible DU Refi Plus Specific Overlays Appraisal Per DU AUS Approve Eligible with special feature code 147 only Condo Full Project Review Allowed - See the Product Matrix for full details Debt Ratios Per DU Down Payment Owner Occupied and 2nd homes: Entire down payment may be a gift. Investment Properties Sales price or appraised value less than $100,000 requires 2nd appraisal. LTV/CLTV Primary Residence - Unlimited Second Home/Investment - 105%/110% Max Financed Properties Second Home & Investment property: The borrower can have no more than 10 properties financed including subject property

4 Property and Occupancy Subordinate Financing 1-4 unit Primary and Investment residences 1-unit Second Homes PUDs and Condominiums Fee Simple and Leasehold properties Rural -- Maximum 10 acres (40 acres in Montana) Existing subordinate financing must be subordinated to new 1st lien or paid off with borrowers own funds. New Subordinate Financing is not allowed.

5 Specific Overlays Appraisal Loan amounts $650,000: required appraisal only. Loan amounts $650,001 to $1,000,000: required appraisal + a desk review. Loan amounts > $1,000,000: required appraisal + field review AUS DU or LP Debt Ratios Manual underwrite can not exceed 41.00% on DTI, up to 50% with 150% of the residual requirement or sufficient comp factors - Underwriter discretion LTV/CLTV Maximum 100% excluding the funding fee Property and Occupancy Single Family Residency, Condominiums ( approved), PUD (attached & detached) and 2-4 units Owner Occupied Primary Residence only FICO Properties located in Montana are ineligible Specific Overlays Appraisal No appraisal or AVM required. LTV /CLTV will be based on the original loan amount the investor may require a full appraisal at underwriter s discretion on any. AUS Manual underwrite, no AUS Credit Report Mortgage only credit report w/fico is allowed Debt Ratios If loan is a credit qualify, the max DTI is 41%/50% (housing debt ratio/total debt ratio). The ratio is greater than 41% solely due to the existence of tax-free income (notate tax-free income in the loan file or calculate an adjusted, smaller ratio based on grossing up of the tax-free income.); or Residual income exceeds the guidelines by at least 20 percent. LTC/CLTV Maximum 135%/135% excluding the funding fee Payment History Must evidence at least 3 months mortgage history on current mortgage. If current loan was originated by the investor, a minimum of 6 full months of payments must be received (can not be paid in advance). In addition, must have CLD approval before loan is submitted Property and Occupancy SFR, 2-4 units, Condominiums ( approved), PUD (attached & detached) Owner Occupied, Second Home and Investment properties are eligible.