ULTRA JUMBO (UJ series) FULL DOC PROGRAM Purchase and Rate/Term Refinance Owner Occupied Investment Property FICO Loan Amt SFR, Condos, PUDs Second Home 2-4 Family SFR, Condo, PUDs & 2-4 Family LTV CLTV LTV CLTV LTV CLTV LTV CLTV 720+ $2.5M 95 1 /90 95 1 /90 80 80 80 80 80 80 680-719 $2M 95 1 /90 95 1 /90 80 80 80 80 80 80 620-679 $2M 80 80 80 80 80 80 80 80 Cash-out Refinance Owner Occupied Investment Property FICO Loan Amt SFR, Condos, PUDs 2nd Home 2-4 Family SFR, Condo, PUDs & 2-4 Units LTV CLTV LTV CLTV LTV CLTV LTV CLTV 760+ $2.5M 95 1 /90 2 /85 95 1 /90 2 /85 80 80 80 80 80 80 720-759 $2.5M 95 1 /90 2 /85 95 1 /90 2 /85 80 80 80 80 80 80 680-719 $2M 85 85 80 80 80 80 80 80 640-679 $2M 75 75 75 75 75 75 75 75 620-639 $2M 70 70 70 70 70 70 70 70 1 90.01-95% Purchase /Rate & Term / Cash-out Refi LTV/CLTV 2 85.01-90% Cash-out Refinance LTV/CLTV Minimum credit score of 680 required for purchase and rate/term refinance. Minimum credit score of 720 required for cash-out refinance transactions. Maximum 35% DTI. Primary residence only. Single-family, PUDs, and warrantable Condominiums only. Maximum combined loan balance $1,500,000. Minimum credit score of 720 required. Maximum 35% DTI Primary residence only. Single-family, PUDs, and warrantable Condominiums only. Maximum combined loan balance $1,500,000. OVERLAY TO FIRST-TIME HOME BUYERS Primary Residence only. Single Family, PUDs, and warrantable Condos only 9 months PITI required www.mcfunding.com Ultra Jumbo Update: 11/14/2018 1
PROGRAM DETAILS Mortgage/Housing History 0X30 in the past 24 months Bankruptcy History 1 Multiple bankruptcies are ineligible Chapter 7 Four (4) years from discharge date to application date Chapter 13 and Chapter 11 personal - 4 years from discharge date to application date Prior Loss Mitigation 2 Foreclosure History 4 years prior to application date 4 years Maximum DTI Up to 50% minimum 720 credit score and LTV/CLTV 80 Adverse Credit Residual Income Reserves All reserves requirements are calculated by determining the subject property PITIA and adding other property PITIAs as applicable. All delinquent credit that will impact title, including delinquent taxes, judgments, charge-off accounts, tax liens and mechanic's liens, must be paid off prior to or at closing. DTI > 43% requires household residual income $3500 DTI 43% requires household residual income $1500 6 months PITIA reserves required for all LTV/CLTV 80% 9 months PITIA reserves required for LTV/CLTV > 80%, loan amounts > $1,500,000, second home, 2-4 unit, investment, and First Time Homebuyer 6 months PITIA reserves required for each additional financed property (up to a maximum of 36 months) Maximum Cash-out No limit Minimum 6 months ownership seasoning required for cash-out transactions Establishing LTV/CLTV Cash-out Refinance 12 months ownership seasoning to use appraised value to determine LTV/CLTV. If the ownership seasoning is less than 12 months, the lower of the purchase price or the appraised value will be used to determine LTV/CLTV. The purchase price must be documented. 1 Consumer Credit Counseling Service (CCCS) is considered the same as Chapter 13 bankruptcy. Bankruptcy dismissal dates are treated the same as discharge dates. 2 Loss Mitigation includes non-foreclosure actions such as Deed-in-lieu, Short Sale, NOD, Short Refinance, Pre- Foreclosure Sale, Loan Extension, Loan Modification, Forbearance and Charge-off. Multiple Loss Mitigation events are allowed. Multiple REO limits If the loan is secured by the borrower's principal residence, there are no limitations to the number of properties owned or financed. If the loan is secured by the borrower's second home or an investment property: o May have up to 10 financed properties (including principal residence) OR o May own or have financed an unlimited number of properties so long as the subject transaction has a maximum LTV/CLTV of 70% or the program maximum, whichever is less. www.mcfunding.com Ultra Jumbo Update: 11/14/2018 2
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FIXED RATES: 30, 15yr fixed available Fully Amortized Loan Terms Interest Only Loan Terms Mortgage Insurance Minimum Loan Amount Principal Reduction /Curtailment Application Date used for Credit Grade Criteria ADJUSTABLE RATES: 5/1 ARM 7/1 ARM 10/1 ARM Initial Fixed Rate terms (months) 60 84 120 Periodic Caps 2/2/5 5/2/5 Periodic Rate Change (months) 12 months Index 12 Month Libor Lifetime Cap Start Rate + 5% Lifetime Floor Start Rate Margin See Rate sheet Look Back Period 45 Days Qualifying Rates: 5/1 ARM - Borrowers qualify at the higher of the fully indexed rate or the initial note rate plus the periodic adjustment (2%).* 7/1 & 10/1 ARMs - Borrowers qualify at the higher of the fully indexed rate or the initial note rate.* Fully amortizing mortgage loan that pays interest only during the first 10 years and amortizes down over the remaining years. FIXED RATES: Terms: 30, 40yr interest only available Qualifying Rate: Borrowers qualify at the note rate based on fully amortizing Principal and Interest payment during the principal repayment period. Borrowers will not be qualified on the Interest Only payment amount. ADJUSTABLE RATES: Caps, index, margin & look back periods see fully amortized section (above) 10/1 ARM IO - 30 YR 10/1 ARM IO - 40 YR Term 360 480 Amortization term 240 360 Qualifying Rates: Borrowers qualify at the higher of the fully indexed rate or the initial note rate using the fully amortizing Principal and Interest payment during the principal repayment period. Borrowers will not be qualified on the Interest Only payment amount.* Mortgage insurance is not required or permitted. $1.00 above regular conforming limits A principal curtailment to the new refinance loan at closing is allowed up to the lesser of 2% of the new loan amount or $2000 and must be clearly reflected on the Closing Disclosure. Otherwise, principal curtailment/reductions are not allowed. The borrower s initial application date will be used to determine the seasoning for prior bankruptcy, loss mitigation, foreclosure events, etc. www.mcfunding.com Ultra Jumbo Update: 11/14/2018 4
Program Codes Borrower Eligibility Fixed Period 40 year 30 year 15 year Fully Amortized UJM30 UJM15 Interest Only UJM40io UJM30io Adjustable 5/1 7/1 10/1 (30yr term) 10/1 (40yr term) Fully Amortized UJM5/1 UJM7/1 UJM10/1a Interest Only UJM10/1io3 UJM10/1io4 Eligible Borrowers: U.S. Citizens First Time Homebuyers Permanent Resident Aliens Ineligible Borrowers: Foreign Nationals Non-Permanent Resident Aliens Inter Vivos Revocable (aka living) Trusts Note: The number of borrowers per application is limited to 4 Minimum Tradeline Requirements Borrower Credit Eligibility Foreign Income & Assets Eligible Property Types A borrower(s) without an established credit history is ineligible. A valid and usable score is one that is generated based on credit history and credit patterns that accurately reflect the borrower s history. It should contain at least: o Three established open and active tradelines reported on the credit report: One reported for a minimum of 24 months All active in the last 12 months (defined as last activity within 12 months of credit report date) One with a minimum $2,500 high credit balance Borrower eligibility requirements apply to all properties currently or previously owned by the borrower. For example, mortgage housing history, loss mitigation, foreclosure, etc. Inclusive of all liens regardless of lien position. Foreign Income is NOT allowed Foreign Assets may be used as a source of funds to close and to meet applicable reserve requirements. These funds must be transferred to a United States domiciled account in the borrower s name. The transfer should occur within 30 days of closing, but in all cases 10 days prior to closing. o Documenting Assets Held in Foreign Accounts: Assets must be verified in U.S. dollar equivalency at the current exchange rate via either www.xe.com or the Wall Street Journal conversion table. A copy of the two most recent statements of the foreign account to verify that funds are seasoned a minimum of 60 days. Single Family Residence (attached and detached) PUDs (attached and detached) 2-4 Units Fannie Mae warrantable condominiums (low, mid, and high-rise) www.mcfunding.com Ultra Jumbo Update: 11/14/2018 5
Borrower Required Funds A minimum down payment of 5% of the borrower s own funds is required for any purchase transaction. Appraisal Requirements 1 Full Appraisal 1 if Combined Loan Amount <= $1.5M 2 Full Appraisals 1 if Combined Loan Amount > $1.5M 2 Condominiums require a HOA certification form Third Party Review Requirements Collateral Desktop Analysis (CDA) 2 Clear Capital Escalation Process If the CDA returns a value that is 10% of the Appraised Value 3 or the purchase price, the lower of the Appraised Value or purchase price can be used to establish the LTV/CLTV. If the CDA returns a value that is "Indeterminate" or > 10% of the Appraised Value 3, a Clear Capital Broker Price Opinion (BPO) and Clear Capital Value Reconciliation of Three Reports must be ordered. The reconciled value determined by Clear Capital will be used to determine LTV/CLTV. If the Clear Capital CDA returns a value that is greater than the Appraised Value 3, the Appraised Value will be used to determine LTV/CLTV. 1. Full Appraisal refers to a Uniform Residential Appraisal Report (URAR). This includes a FNMA 1004 and FHLMC 70 2. The CDA will be completed on lower of the two appraisals 3. The Appraised Value is the value determined from the original appraisal(s) obtained by MCFI. www.mcfunding.com Ultra Jumbo Update: 11/14/2018 6