GATEWAY MORTGAGE GROUP LLC

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					                                                                               GATEWAY MORTGAGE GROUP, LLC
                                                                                        Correspondent Overlay Matrix
       Program guidelines for FNMA, FHA, VA, USDA, and HUD 184 are determined by the individual Agencies and are available on their respective websites; Agency guideline overlays are as follows:

 Guideline                    Product                              Comment
 Appraisal                    Texas Equity                         •     PIW and 2075 not acceptable, regardless of DU findings. See also Natural Disasters below.
 Asset Verification           All                                  •     Written VOD cannot be standalone documentation. The most recent complete statement required for all assets used to qualify, regardless of AUS
                                                                         findings.
 AUS                          Conventional/FHA/VA                  •     Fannie Mae DU with Approve/Eligible finding required (Freddie LP and Manual Underwrite not accepted).
                              USDA                                 •     GUS Accept required. (Manual Underwrite not accepted).
                              184                                  •     Manual Underwrite if Direct Guarantee correspondent or ONAP prior approval required.
 Credit Score Requirement     All Products                         >=640
                              FHA/VA/184 Only                      620 - 639
                                                                   •     Maximum DTI 45%.
                                                                   •     No First Time Home Buyers.
                                                                   •     Maximum 50% Payment Shock.
                                                                   •     Down payment must come from borrower own funds, not gift or DPA.
                                                                   •     No Bankruptcy, Foreclosure, Short Sale or Short Payoff, discharged, dismissed or completed within last 3 years.
                                                                   •     Minimum 2 months liquid reserves (checking, savings, stocks, bonds, mutual funds, certificates of deposit, and / or money market funds).
                                                                   •     Borrowers must have satisfactory documented 12 month VOR / VOM. Verification may include Credit Report, VOM, VOR, or 12 months canceled
                                                                         checks. Verification from non-institutional source must be supported by 12 canceled checks. If paying by cash, must document receipts and bank
                                                                         statements showing equal withdrawals for most recent 12 months.
                                                                   •     Cannot be a streamline refinance. See also Streamlined Refinance below..
 Down Payment                 FHA/VA/USDA/184                      •     All down payment assistance programs must be prior approved by Gateway. Government (Federal, State, County, etc.) approved DPA programs only.
 Assistance                                                              No Bond programs.
                              Conventional                         •     DPA and Bond programs not allowed.
 Eligible States              All                                  •     Alabama, Arkansas, California, Colorado, Florida, Indiana, Iowa, Kansas, Louisiana, Maryland, Mississippi, Missouri, Nebraska, Nevada, New Mexico,
                                                                         Oklahoma, South Carolina, Tennessee, Texas, Utah, Virginia, West Virginia, Wyoming. See also Location Restrictions below.
 Gift Funds                   All                                  •     Regardless of AUS finding, Donor must provide most recent complete 30 day statement or direct VOD with average balance, supporting ability to
                                                                         provide gift from an acceptable source.
                                                                   •     Cash on hand is not an acceptable source of Gift funds.
 Income Verification          All                                  •     A written VOE cannot be standalone documentation. Most recent paystub and W-2 required for all income used to qualify, regardless of AUS
                                                                         findings.
 Ineligible Properties        All                                  •     Cooperatives, Florida Condominiums, Manufactured Homes, and properties with less than 600 square feet.
 Investment Properties        All                                  •     When the borrower does not own a primary residence, any investment property loan must qualify with full PITI payment.
                                                                   •     No Rental Income considered for any lease executed with a family member or interested party to the transaction. See also Non-Arm’s Length.
 ITIN                         All                                  •     All borrowers must have a valid social security number; ITINs not allowed
 Location Restrictions        All                                  •     Loans in Martin, Palm Beach, Broward, Miami-Dade, and Monroe counties in Florida are not eligible.
 LTV / CLTV Restrictions      Conventional                         Purchase 95%*           Rate/Term 95%            Cash-out 85%
                                                                   *97% LTV allowed with base 95% LTV and 2% financed MI only. Borrower must invest minimum 5% down payment.
                              Conventional – DU Refi Plus          Loans with existing MI that must be transferred to the new loan are not eligible for DU Refi Plus.
                                                                   Occupancy                  Units                  LTV/CLTV
                                                                   Primary                     1-4                      95%
                                                                     nd
                                                                   2 Home                       1                       90%
                                                                   Investment                  1-4                      80%
                              VA                                   VA Cash-out transactions limited to 95% LTV.




Gateway Correspondent Overlay Matrix                                                                                                                                                                        Page 1 of 2
Rev. 02/16/2012
                                                                              GATEWAY MORTGAGE GROUP, LLC
                                                                                       Correspondent Overlay Matrix
      Program guidelines for FNMA, FHA, VA, USDA, and HUD 184 are determined by the individual Agencies and are available on their respective websites; Agency guideline overlays are as follows:

 Guideline                   Product                              Comment
 Mortgage Insurance          Conventional                         •  Approved MI companies – UGI, Radian, MGIC, and Genworth.
                                                                  •  Minimum or Reduced MI requiring a loan level price adjustment is not eligible, regardless of DU findings.
 Multiple Properties         All                                  •  Maximum 4 properties serviced by Gateway Mortgage Group, LLC.
 Natural Disasters           All                                  •  PIW not acceptable in areas that have experienced a recent Natural Disaster. Full FNMA 1004 / 1073 appraisal required regardless of DU findings.
                                                                     See also the Natural Disaster Policy in the Client Guide for detailed requirements.
 Non-Arm’s Length            All                                  •  Non-arm’s length transactions are transactions in which there is a relationship or business affiliation between the borrower and any interested party
                                                                     involved in the purchase or loan transaction. This includes the builder, seller, lender, broker, employer, real estate agent, appraiser, etc.
                                                                  •  Non-arm’s length transactions require full documentation, regardless of DU findings.
                                                                  •  Owner / Builder non-arm’s length new construction transactions are not allowed.
                                                                  •  Second home or investment property non-arms-length transactions are not allowed
 Principal Curtailments at   All                                  •  Allowed on “No Cash-out” or “Limited Cash-Out” refinances in the event funds being received by the borrower exceed the maximum allowable
 Closing                                                             amount permitted (excluding Texas Equity Refinances).
                                                                  •  May not exceed $500 and must be clearly reflected as a Principal Curtailment on the HUD-1.
                                                                  •  May be in addition to allowable cash-back to the borrower.
 Streamline Refinance        FHA/VA/USDA/184                      •  Streamline refinances (qualifying and non-qualifying) must meet 640 minimum FICO.
                                                                  •  0x30 late mortgage payments in the last 12 months or life of loan if less than 12 months.
                                                                  •  Minimum documentation required, including single line tri-merge credit report, most recent paystub, and verification of sufficient assets to close.
                                                                  •  Second homes and investment properties are not eligible for streamline refinance.
                                                                  •  USDA streamline only considered if current loan is USDA.
                                                                  •  In addition to all the above VA IRRRL’s require FNMA 2055 drive by appraisal supporting value.
 Temporary Buydowns          All                                  •  Not allowed.




Gateway Correspondent Overlay Matrix                                                                                                                                                                        Page 2 of 2
Rev. 02/16/2012

				
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