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					                                                  HARP2: DU Refi Plus and Refi Plus
                              Refi Plus (Manual U/W; Guild-to-Guild)                                            DU Refi Plus
Description             Home Affordable Refinance provides refinance opportunities to borrowers with existing Fannie Mae loans who have
                        demonstrated an acceptable payment history but have been unable to refinance to obtain a lower payment or move to a more
                        stable product. The loan being refinanced must have been delivered to Fannie Mae prior to June 1, 2009.
Borrower Benefit        The lender must represent and warrant that the borrower is receiving a benefit in the form of either:
                         A reduced monthly P&I payment
                         A reduced interest rate
                         A reduced amortization term
                         A more stable product (for example, ARM to fixed rate)
Channel of Business     Retail only                                                    Retail, wholesale, and correspondent
Existing Servicer       Originating lender must be the current servicer (Guild to Originating lender is not required to be the current servicer
                        Guild only).
Underwriting Method     Manual Underwriting only                                       DU underwriting, must be A/E. Loans may be converted to Refi Plus
                                                                                       (manual) provided the lender is the current servicer.
Loan Purpose            Limited cash-out refi only, with payoff of existing first mortgage, financing of closing costs, and no more than $250 cash to
                        borrower
LTV                     Unlimited                                                      Unlimited for owner occupied and second homes
                                                                                       105% for investment properties
                                                                                       125% Max LTV for Correspondent
CLTV                    Unlimited                                                      Unlimited for owner occupied and second homes
                                                                                       110% for investment properties
Subordinate Financing    All existing subordinate financing must be re-subordinated
                         No new subordinate financing is permitted
                         No restrictions on terms of existing subordinate financing
                        Subordinate lienholder may not agree to re-subordinate, or will not consider without an appraisal
Eligible Borrowers       Borrowers may be removed for any reason,                      Borrowers may be removed for any reason provided remaining
                            including death or divorce, provided remaining                 borrowers show proof of making payment for 12 month, and
                            borrower shows proof of making payments for 12                 borrower being removed is also removed from the deed
                            months, and the borrower being removed is also              In the case of borrowers being removed due to death, evidence of
                            removed from the deed (evidence of death must be               making payments for 12 months is not required (with evidence of
                            provided in the file)                                          death provided in the file)
                         Borrowers may be added in the new transaction                 Borrowers may be added in the new transaction provided the

Rev. 03/08/12
                              provided the original borrowers remain on the loan             original borrowers remain on the new loan

                                                  REFI PLUS                                                        DU REFI PLUS
Occupancy                 1-4 primary residence, second home, and 1-4 investment            Manufactured homes not allowed
                          property; all property types including condos,                    2-4 units not allowed
                          manufactured housing and PUD’s.
Payment History           Existing mortgage must be current, and:                           No 60-day late in past 12 months on any mortgage trade line
                           No delinquency in the most recent 6 month period                No limit on payment increase
                           No more than 1x30 in months 7-12
Bankruptcy ,              Standard Fannie Mae policies do not apply regarding            Standard Fannie Mae and DU policies do apply regarding prior
Foreclosure, Short Sale   prior bankruptcy or foreclosure                                bankruptcy or foreclosure
Verification of           P&I not increasing by >20%: Must verify employment             Must obtain a verbal VOE and verify the source of borrower’s non-
Employment/Income         and source of non-employment income, if any. Ability to        employment income; plus obtain any other income documentation
                          repay the mortgage is based upon acceptable payment            per DU Findings. Lender is relieved of reps & warrants if all of the DU
                          history on the existing mortgage, and the borrower             requirements are met; and enters data that is complete, accurate, and
                          benefit provisions.                                            not fraudulent.
                          P&I is increasing by more than 20%: Borrower must be            One paystub and verbal VOE
                          re-qualified for the new loan; including verification of all    Commissioned/Self-Employed: one year federal tax return
                          income sources and amounts (verification of any assets
                          needed to close). Max DTI 45%; 620 FICO
Verification of            If assets are required for closing, must be verified      Must be verified to the extent that DU Findings require such
Assets/Reserves                                                                       verification. Lender is relieved of reps & warrants if all of the DU
                                                                                      requirements are met; and enters data that is complete, accurate, and
                                                                                      not fraudulent.
Credit Scores              No minimum                                                 620 for Primary
                           If P&I increasing by >20%, minimum 620                     680 for second home/investment
                                                         Current representative score required at loan delivery for pricing purposes
DTI                       None, unless P&I increasing by >20%: 45% DTI                DU will calculate
No. of Financed           LTV < 125%: No limit                                         Owner Occupied: no limit
Properties                LTV >125%: Maximum 4 financed properties                     Investment or Second Home: Maximum 4 financed properties
Property Valuation        Lender is responsible for standard reps & warrants           DU Property Inspection Waiver: Lender is relieved of reps &
                          related to the value, marketability and condition                warrants related t value, marketability or condition. $75 fee (PIW
                          reflected in the property valuation used to support the          will not be offered when LTV/CLTV >125%, or for 2-4 units or
                          refinance transaction. Will use a new appraisal.                 manufactured homes)
                                                                                       When an appraisal is required, must be supported by a desk
                                                                                           review at a minimum (our overlay)
Project Eligibility       Lender is responsible for reps and warrants on the          No new project review required; lender must confirm project is not a
                          original loan regarding project eligibility, fraud, and     hotel or motel.
                          compliance with laws.
Rev. 03/08/12
                                      Refi Plus                                                      DU Refi Plus
PMI                All MI companies have guidelines for same-servicer      Guild-to-Guild: see Refi Plus guidelines
                    modification of existing MI policies. Review the        Different servicer refinance: Loans requiring MI are not allowed
                    applicable MI company website for details.
                   LPMI is allowed
                   LTV >125%: loans requiring MI are not allowed
High Balance       Allowed; must meet >125% DU Refi Plus guidelines        Allowed (except for Correspondent, at this time)




Rev. 03/08/12

				
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