1. TITLE POLICY DOCUMENT CHECKLIST FOR PURCHASED LOANS Crescent Mortgage Company 6600 Peachtree Dunwoody Rd. NE, 600 Embassy Row, Suite 650 Atlanta, GA 30328 [ ] Short form title policies with proper ALTA s & affirmative coverage (if short form title polices are used, no survey is required unless required by your Title Company). [ ] An 8.1 environmental endorsement is required on all loans and ALTA 9 if long form policy or a survey will be required. [ ] The commitment should state endorsements to follow with final Title Policy. The ALTA s to follow must be listed on commitment. [ ] Loan amount, names, and lender must match security instrument followed by and or its successors and assigns on the lender name. 2. PMI POLICIES [ ] Crescent orders PMI Policies. PMI Premiums are not collected at closing. No up front premium or escrow reserves are to be collected. The monthly PMI payment should be included in borrower s payment only. USDA loans have a 2 month cushion of the monthly Guarantee Fees. 3. NOTE [ ] The loan information must match underwriting approval (i.e. rate, Loan term, Loan amount, address etc.) [ ] Note must be endorsed by an officer of the lender to Crescent Mortgage Company without recourse. The name and title of the officer should be typed on the endorsement. [ ] Borrowers must sign exactly as name is type on the note. [ ] On ARM loans, the change terms should be listed as to dates, the maximum the interest rate can rise, and the lowest the rate can drop. The floor of ARM loans is the margin on CMC loan products. You may use NOTE ALLONGES if necessary, but include all information regarding the loan, but we prefer endorsements directly on the notes. We advise to complete a blanket POA and keep in your file in case a note was missed, then we could endorse on your behalf. The POA does not get recorded only used for endorsements or assignments if ever needed to prevent shipping docs back and forth and to save time on getting funds to you. 4. SECURITY INSTRUMENT [ ] The legal description should match the title policy and survey (if required) and appraisals. Short form title polices need no surveys and have no legal description. [ ] The names on the security instrument must match names on the title policy and assignment. Please do not allow name variations within files but an A/K/A if the file and title have name variations. Be sure to include all name variations on the Name Affidavit. [ ] The security instrument needs to be signed by borrower(s) as names are typed and notarized and witnessed. Notary information must be completed no blank fields. [ ] Any riders required must be completed and recorded with security instrument and proper ALTA s on Title Policy. Investor loans require 1 4 Family Riders & 2 nd Homes require Second Home Riders. [ ] All Georgia loans require that the closing Attorney s Affidavit and Waiver of Borrower s Rights be recorded with Security Deed. 1
Only add spouses to Title/Deed No brothers, sisters, mothers, fathers etc. 5. ASSIGNMENT [ ] All correspondent customers should be a MERS member either by being a LITE member. All Org ID s must be given to Crescent in order to use the MERS system properly without assignments. [ ] If your bank has applied for MERS membership and have not received your ORG ID at the time of becoming a correspondent, you must execute and record an Assignment to MERS with MERS language and MIN# included on the assignment. Submit a copy with your package for purchase. [ ] It is recommended that your bank use our MIN# which is on the lock confirmations and approval sheets. By doing this, Crescent is able to handle all the assigning of your loans through the MERS system at no cost to you. [ ] If your bank chooses to use your MIN# on closing documents, you will be required to assign the loan through the MERS system to Crescent Mortgage at your expense. This must be done BEFORE purchasing of your loan or penalties could occur. Crescent s MERS ID the loan should be assigned is 1002976. 6. SURVEYS [ ] Surveys should be no more than 60 days old. [ ] Surveys should have flood zone information from surveyor. [ ] Surveys should be signed & stamped by surveyor on a blue line copy. If property is partially in a flood zone, flood zone line should be shown in relation to structure. The flood certification will determine if flood insurance is required. The flood certification overrides survey! Flood certs should be no more than 60 days old. If you have dispute regarding flood certification, you will need to fax a copy of survey to the flood cert. company and have them fax back a revised flood cert. if they decide to make any changes. WE WILL GO BY THE FLOOD CERT!! Need a Survey on all Florida properties unless title companies using recent survey to remove all survey exceptions from title policy. 7. HAZARD INSURANCE POLICY [ ] The coverage on the policy must be adequate. See attached Insurance Requirements. Names and addresses must be the same as Note & Deed. If names differ, a name affidavit is required. (i.e. John Wayne Smith & John W. Smith.) [ ] Policy must be endorsed to: Crescent Mortgage Company, ISAOA, ATIMA P. O. Box 28258, Atlanta, GA 30358 [ ] If loan is a purchase, you must have a 1 year paid policy with a paid receipt or proof of payment being made on hud 1. Binders are acceptable with a 1 year paid receipt, but you are responsible for supplying policy within 30 days. [ ] If loan is a refinance, you may rollover a policy if it has more than 60 days left before renewal. If the policy has less than 60 days, the premium must be paid at closing. 2
Must have 2 months cushion in reserves.. 8. FLOOD INSURANCE POLICY [ ] S e e a t t a c h e d T i t l e a n d I n s u r a n c e R e q u i r e m e n t s. [ ] Flood certs can be no older than 60 days and flood insurance is based on flood cert determination not a survey or elevation cert. [ ] Flood certification must be transferred to Crescent Mortgage Company prior to loan being purchased [ ] Paid receipts are required BEFORE closing on Flood Polices. These cannot be paid at the closing. If property is in a flood zone, borrower must sign flood notice at least 10 days prior to closing to document an opportunity to shop for insurance. 9. HUD 1 OR SETTLEMENT STATEMENT [ ] Hud 1 should be in Broker s name No funny money credited to borrower on front of hud 1 without itemizing to specific costs. [ ] If seller closing costs credit is on front of the hud, the amount must not exceed the actual amount of the closing costs paid by borrowers [ ] On 95% & 100% LTV loans, seller cannot pay any more than 3% of the sales price or appraiser value whichever is lesser towards closing costs unless underwriter has approved a higher amount. Some costs such as deed stamps, pest inspections, home warranties are customary seller costs and are not closing costs and are not included in 3%. Be careful with this. Also, investment properties, seller can pay only 2% of sales price or appraised value whichever is lesser. [ ] Escrows should be collected on improved amounts to prevent large shortages and payment shock the following year. [ ] The initial escrow account statement should be signed and amounts should match the hud 1 total collected. [ ] Page 3 of the HUD -1 must match the Good Faith Figures approved by Crescent and no tolerance violations without cures being listed on the front of the HUD. 10. FIRST PAYMENT NOTICE Include a payment breakdown (i.e. P&I, monthly hazard, flood, tax & PMI escrows or any other item that may be included in monthly payment). [ ] Always set payments up on improved tax amounts. Prefer you use your address for payments but if you want to use ours, Crescent Mortgage Company 5901 Peachtree Dunwoody Rd, N.E., Bldg C, Ste 250 Atlanta, GA 30328 Phone # 800 851 0263 [ ] The monthly amounts on the payment coupon, must match the monthly amounts on the HUD 1. 11. RIGHT OF RESCISSION Must allow 72 full hours to cancel, disbursement should actually come on the fourth day. Rescission must be signed by all borrowers on note & title. 3
12. TAX INFORMATION SHEET [ ] T h i s f o r m s hould include all information regarding the taxes (i.e. tax collectors address, tax parcels, tax ID numbers, etc.). These can be filled in by hand since no signatures are required. [ ] THE TAX AMOUNTS AND DUE DATES SHOULD MATCH THE INITIAL ESCROW DISCLOSURE AND YOUR HUD-1 ESCROW IMPOUNDS. [ ] If 1 st year taxes are shown on this sheet as lot only, please insert the estimated improved amount in designated place on certification. [ ] Hazard insurance information should be included on this sheet for servicer. 13. TERMITE INSPECTIONS & SOIL TREAMTENT WARRANTIES [ ] On NEW CONSTRUCTIONS we will take either a soil treatment warranty or termite report certificate of occupancy or a hold harmless letter for FHLMC & FNMA programs. [ ] Most conventional loans the underwriter will conditions for a hold harmless statement [ ] Any active infestation, damage, insufficient ventilation, or excess moisture must be repaired prior to closing. NO ESCROWING FOR THIS TYPE OF REPAIRS. [ ] Many state pest inspection letters do not dictate if structural inspections are needed. If inspector does not clearly state house is structurally sound, a structural inspection is required if there is active or previous infestation. [ ] On inspections with any previous infestation, provided the previous infestation is not in places that could affect the structure (joists, sills, beams, etc) a hold harmless letter could be used. If you have any questions, call Crescent. [ ] If repairs are required, a new inspection or documentation that repairs have been done is required. [ ] Of course, any active infestation will have to be treated and a new letter should be obtained. 14. TRUTH IN LENDING DISCLOSURE [ ] The finance charge on TIL must match fees collected on HUD 1 that were paid by borrower(s). [ ] ARM loans and any loan with monthly PMI/MIP/USDA fees please include a full Amortization Schedule for the APR WIN check. [ ] Assumption, refund, & prepayment boxes must be marked properly. [ ] TIL must be signed by all people on the Note, Mortgage, Deed of Trust, any Community or Homestead property rights. Crescent has a list of FINANCE CHARGES listed on Crescent our website. a. Doc prep fees are not finance charges when payable to attorneys for preparation of the warranty deed. b. Other junk fees, include attorney wire fees or post closing fees, and broker fees that are charged, really too many variations to name specifically since many try to create new names, it seems, to justify some charges. If charges are not on initial good faith, we may question. c. Discount points may not be used as an income fee. The points must be to buy, extend or recoup pricing adjustments (i.e. escrow waivers/ investment property adjustments). d. Must comply with MDIA and pass all State, Federal, Agency, and M/ATR tests. 15. MISC. DOCUMENTS [ ] Occupancy Certification [ ] Name affidavits for the name variations within file from processing to closing [ ] Address affidavit for any address variations found at closing. [ ] W 9 s on all borrowers [ ] 4506T s on all borrowers on all loans. [ ] Patriot act form completed with proper ID information. [ ] Mailing address form or certification if address is different than the property address. Such as using a P O Box for mail or Second Home or Investment property). [ ] Quality control authorization signed by borrowers 4
[ ] Escrow waiver statement must be signed on any loan with escrows waived & copy of hazard policy in effect with correct mortgagee is required. [ ] On WELL WATER & SEPTIC INSPECTIONS (FHLMC & FNMA PROGRAMS) we will take either the inspection or test or a hold harmless statement. [ ] On COMMUNITY WATER SYSTEMS we can take a hold harmless statement but must have copy of the LICENSE from the state. 16. UNDERWRITING CONDITIONS Please attach all underwriting conditions to a copy of the approval sheet from Crescent except for such conditions as termite, signed application, ETC. This allows easy clearance of any conditions. You may attach any original conditions to replace fax copies also. 17. MISC. NOTES [ ] Any person added to Security Instrument for Title, Homestead, or Community Property Also sign the TIL, & Right of Rescission (if applicable). [ ] Specific POA for borrowers approved by Crescent prior to closing no general poa s unless extenuating circumstances. ( see attached requirements). Any POA s used for sellers must be approved for that transaction only by Crescent. 18. MDIA and HIGH COST LOANS We run tests on every loan for MDIA, Federal, State, & Agency high cost tests. CMC will test for QM/ATR on each loan as well as HPML s (High Priced Mortgage Loans). If any loan doesn t comply with these regulations or fails a test we will not purchase these loans. 19. FHA, VA, & USDA FEES [ ] The fees must match the financed and monthly calculations set forth by UW. Crescent will wire funds (FHA /VA funding fee). If MIP or FF is financed, the seller cannot pay at closing. USDA fees, CMC will mail these to USDA when CMC submits the loan for guarantee. [ ] ALL fees will be netted from the Purchasing of the loan by CMC. Correspondents should keep these fees form the closing. Please do not send checks to the agencies or CMC. 20. FHA AND VA NEW CONSTRUCTION DOCS [ ] FHA requires specific docs for the new construction of properties. The soil treatment warranty (99a & 99b) both pages, awareness letter signed by borrowers, and manufacturer s warranty or AC letter we call it and 1 year builder warranty and 10 yr warranty if required by the underwriter [ ] VA new constructions docs include, the awareness letter and it depends which letter this is based on if you are using a 1 yr or 10 yr warranty. CABO letter, utilities cert, lead pipe letter, and 1 yr warranty. IF YOU DO YOUR OWN DOCS, DO NOT CLOSE WITHOUT HAVING A COPY OF THE LNOV TO INSURE ALL CONDITIONS ARE MET. Rev. 03/2015 5