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					                             NON-CONFORMING (JUMBO) FIXED RATE PRODUCT



        PRODUCT               
                                 Conventional (Jumbo) Fixed Rate
                              
                                 10, 15, 20, 25 and 30 years
        DESCRIPTION           
                                 Fully amortizing
        TEMPORARY             
                                 Not permitted
        BUYDOWNS
        QUALIFYING RATE AND   Qualifying Rate
                              
                              
                               Qualify at Note rate using the fully amortized payment PITIA
        RATIOS
                              Ratios
                              
                              
                               Primary Residence: 45% DTI
                              
                              
                               Second Home: 35% DTI
        TYPES OF FINANCING    Purchase Mortgages

                               Rate and Term Refinances
                              
                               No seasoning of first mortgage
                              
                               If owned less than 12 months, LTV must be based on lower of appraised value or original sales price plus the
                                 cost of any documented improvements. If the value has increased greater than 15%, photographs of
                                 improvements are required.
                               If owned more than 12 months, LTV is based on current appraised value. HUD-1 or Deed must be provided to
                              
                                 verify ownership
                               Reasonable and customary closing costs, prepaids, buyout of co-owner and seasoned junior liens may be
                              
                                 incorporated into the loan amount.
                               Cash out not to exceed the lesser of 1% or $2000 of the principal amount of the new loan
                              
                               One year seasoning on junior liens from funding unless documentation is provided to verify it was incurred as
                              
                                 part of acquisition or for home improvements. This does not apply to draws of 1% or less of the new loan
                                 amount or a maximum of $2,000 within the past 12-month period
                               Properties listed for sale in the last 6 months (on or before the application date) are not eligible for refinance
                              
                                 transactions
                               Primary residences located in Texas:
                              
                               If the first or second Texas Section 50(a)(6) loan is being paid off, regardless of whether the borrower is getting
                              
                                 any cash back, the loan is restricted to the Texas Home Equity product. Refer to the Texas Home Equity
                                 Product Summary
                               If the first mortgage is not a Texas Section 50(a)(6) loan and the second mortgage is a Texas Section 50(a)(6),
                              
                                 the second lien may be subordinated and is considered a rate and term refinance. The second lien must be
                                 subordinate to the first mortgage and a subordination agreement must be executed. Borrower cannot receive
                                 any cash back from first mortgage transaction
                               If a Texas Section 50(a)(6) second lien is being paid off, the loan is restricted to the Texas Home Equity
                              
                                 product. Refer to the Texas Home Equity Product Summary.

Page 1 of 11                                  MORTGAGE SOLUTIONS FINANCIAL (MSF)                                              Rev. 17MAY12
                          NON-CONFORMING (JUMBO) FIXED RATE PRODUCT


                           
                              The title policy will reference Texas Section 50(a)(6)

                            Cash Out Refinances
                           
                            Primary Residence Only
                               All borrowers must have held title to subject property for a minimum of 6 months (note date to application
                                 date)
                               If owned less than 12 months, LTV must be based on lower of appraised value or original sales price plus
                                 the cost of any documented improvements. If the value has increased greater than 15%, photographs of
                                 improvements are required.
                               If owned more than 12 months, LTV is based on current appraised value. HUD-1 or Deed must be provided
                                 to verify ownership.
                               Properties listed for sale in the last 6 months (on or before application date) are not eligible for equity
                                 refinance transactions
                               Primary residences located in Texas subject to Texas Section 50(a)(6) are NOT eligible
                               Cash out limitations – Includes payoff of unseasoned second mortgages, HELOCs and/or non-mortgage
                                 debt
                                  Payoff of Federal and State tax liens and delinquent property tax liens
                                  Buyout of a co-owner who does not meet the no cash out refinance requirements
        MINIMUM/MAXIMUM     Maximum Loan Amount
                            $1,500,000: 1-4 Unit
                           
        LOAN AMOUNT
                                                                           Continental US              Alaska and Hawaii
                                                       Units           Minimum Loan Amount              Minimum Loan
                                                                                                            Amount
                                                         1                    $417,001                      $625,501
                                                         2                    $533,851                      $800,776
                                                         3                    $645,301                      $967,951
                                                         4                    $801,951                     $1,202,926
        LOAN AMOUNT AND                                           PURCHASE AND RATE/TERM REFINANCE
        LTV LIMITATIONS                                                  PRIMARY RESIDENCE
                                                       Units      LTV *  CLTV *   Credit      Loan Amount
                                                                                  Score
                                                                  80%     80%       700         $1,000,000
                                                        1-2
                                                                  80%     80%       720         $1,500,000
                                                                  70%     70%       700         $1,000,000
                                                        3-4
                                                                  70%     70%       720         $1,500,000
                                                                  PURCHASE AND RATE/TERM REFINANCE
                                                                            SECOND HOME
                                                         1        65%     65%      740         $1,000,000

Page 2 of 11                                 MORTGAGE SOLUTIONS FINANCIAL (MSF)                                        Rev. 17MAY12
               NON-CONFORMING (JUMBO) FIXED RATE PRODUCT




                                                                  CASH OUT REFINANCE 1
                                                                   PRIMARY RESIDENCE
                                                                              Credit
                                        Units             LTV *      CLTV *                    Loan Amount
                                                                              Score
                                                          80%         80%       700              $1,000,000
                                         1-2
                                                          80%         80%       720              $1,500,000
                                   1
                                       Cash out limits:
                               Primary Residence               Max Cash Out for >65 and 80 LTV/CLTV
                               is $250,000
                               1-2 Units                       Max Cash Out for 65 LTV/CLTV is
                               $350,000
                               Site Condominiums – 1 unit Only
                               PUD
                * Declining Markets

                
                   Contact locks@msofco.com for market classification determination
                
                   If the Market Portal tool delivers an A market designation, but the appraiser indicates the subject property is
                     located in a submarket which is declining, the A market must be downgraded to a B market reducing the
                     LTV/CLTV by 5%

                Declining Market Maximum LTV/CLTV:
                 B Market: Reduce Max LTV/CLTV by 5%
                 C Market: Reduce Max LTV/CLTV by 10%
                 D Market: Reduce Max LTV/CLTV by 15%

                 Maximum Market Upgrade of 5% LTV/CLTV permitted based on all credit guidelines below:
                
                 Minimum 720 FICO
                
                 Maximum DTI 40%
                
                 Single Family Primary Residence, PUDs, Modular Home, Pre-Cut Home, Panelized Home and Site
                   Condominiums (multi-family not permitted)
                 Purchase and Rate/Term only
                
                 Two Full Appraisals if loan amount is > $1million (see appraisal section below)
                
                 Full Amortization
                
                 Maximum Combined Loan Amount $2 million
                

                Maximum Market Upgrade of 10% LTV/CLTV permitted for D Markets only, based on all credit guidelines below

Page 3 of 11                      MORTGAGE SOLUTIONS FINANCIAL (MSF)                                              Rev. 17MAY12
                         NON-CONFORMING (JUMBO) FIXED RATE PRODUCT


                          (All States Except AZ, FL MI and NV):
                          
                             Minimum 740 FICO
                          
                             Maximum DTI 40%
                          
                             Single family primary residence, PUDs, Modular Home, Pre-Cut Home, Panelized Home and Site
                          
                             Condominiums (multi-family not permitted)
                          
                             Purchase and Rate/Term only
                          
                             Two full appraisals if loan amount is > $1.0 million (see appraisal section below)
                          
                             Full amortization
                          
                             Maximum combined loan amount $2 million
        SECONDARY         
                             Refer to Loan Amount and LTV Limitations
        FINANCING
        PROPERTY TYPES    Eligible Property Types
                           Single family Residence
                           Modular Home, Pre-Cut Home, Panelized Home
                           Multifamily (2 to 4 units)
                           Site Condominium (1 unit )
                           Planned Unit Development (PUD)

                           Ineligible Property Types
                           Assisted Living Projects
                           Attached Condominium
                           Cantilevered Property
                           Common Interest Apartments
                           Condo-Hotel
                           Cooperative
                           Houseboats
                           Investment Securities
                           Manufactured Home
                           “Meth House” even if cleaned
                           Mixed use property
                           Mobile Home
                           Multi-family dwelling with more than 4 units
                           Multi-family condominium dwelling with ownership of > 1 unit evidenced by a single deed and mortgage
                            (includes lock-out units)
                           Projects with non-incidental business operations owned or operated by the Homeowners Association such as,
                            but not limited to, a restaurant, spa, health club, etc.
                           Property or project with pending structural litigation. Non-structural litigation may be considered on a case-by-
                            case basis.

Page 4 of 11                              MORTGAGE SOLUTIONS FINANCIAL (MSF)                                             Rev. 17MAY12
                         NON-CONFORMING (JUMBO) FIXED RATE PRODUCT


                              Property that restricts the owner’s ability to occupy the unit, have mandatory rental pools or guaranteed rent-
                               backs
                              Property that represents a legal, but Non-Conforming use if zoning regulations prohibit rebuilding the
                               improvements to current density in the event of full or partial destruction.
                              Property without full kitchen
                              Non-warrantable condominium
                              Planned Unit Development (PUD) project with pending structural litigation
                              Property with more than 10 acres
                              Property without full utilities installed to meet all local health and safety standards
                                
                                 Continuing supply of potable water
                                 
                                
                                 Public sewer or certified septic system
                                 
                                
                                 Public electricity
                                 
                                
                                 Natural or LP gas
                                 
                               Property zoned and used for commercial or industrial purposes
                              Tax-sheltered syndicate
                              Time share units/projects
                              Unimproved land
                              Working farm, ranch or orchard
        OCCUPANCY         
                             Primary Residence
                          
                             Second Home
        ASSUMPTIONS       
                             Not Permitted
        ESCROW WAIVERS    
                             Permitted for one unit primary residences only
        UNDERWRITING      
                             Manual Underwrite is required for all loans in addition to direct investor approval
        DOCUMENTATION     
                             Full Income
        TYPES
        BORROWER          Eligible
                           U.S. citizen
        ELIGIBILITY
                          Permanent Resident
                           Verify Alien Registration Card
                           Must provide valid Social Security number

                          Non-Permanent Resident
                           Primary residence only
                           Maximum LTV/CLTV for 1-2 units: 75%
                           Maximum LTV/CLTV for 3-4 units: 70%

                          First Time Homebuyer

Page 5 of 11                               MORTGAGE SOLUTIONS FINANCIAL (MSF)                                               Rev. 17MAY12
                 NON-CONFORMING (JUMBO) FIXED RATE PRODUCT


                      Primary residence only
                      For all loans, verification of 12 months rental payments is required. The loan file must contain 12 months
                       cancelled checks or bank statements to evidence eligibility for mortgage/housing history for the loan program
                       under which the loan is submitted. Written Verification of rent via the credit report is not permitted. Direct
                       written verification of rent is acceptable in lieu of cancelled checks when the landlord is a large professional
                       management company
                      First-Time Homebuyers require 12 month reserves
                      Borrower living rent free requires 12 months reserves (excluding retirement accounts). This is to be used only
                       when all borrowers are living rent free

                  Non-occupant Co-Borrower, guarantor, and co-signor
                   An Established relationship with the Borrower exists
                   A party with an interest in the property sales transaction, (including but not limited to the builder, property
                    seller, or real estate broker) is not eligible as a non-occupant Co-Borrower, guarantor, or co-signor
                   Primary residence only
                   A non-occupant Co-Borrower, guarantor, or co-signor must provide verification of income
                   Maximum LTV/CLTV for 1-2 units: 75%
                   Maximum LTV/CLTV for 3-4 units: 70%
                   Qualifying total debt ratio for the occupant borrower may not exceed 45%

                  Foreign National
                   Not permitted

                  Trust Agreements
                   Refer to the Seller’s Guide
        CREDIT    Refer to Loan Amount and LTV Limitations for requirements

                  Tradeline Requirements
                  
                   A minimum of 3 active tradelines, each rated and paid satisfactorily for at least 12 months
                  
                   A minimum 24 month credit history
                  
                   Authorized user accounts may not be used to satisfy the tradeline requirements
                  
                   Active tradelines are defined by the date of the last activity on the account within 6 months from the current
                     date

                  Housing Payment History
                  
                  
                   0 x 30 mortgage/rental delinquency in past 12 months
                  
                  
                   No 60+ mortgage/rental delinquency in past 24 months
                  
                  
                   Subject mortgage must be current on delivery

                  Bankruptcy

Page 6 of 11                       MORTGAGE SOLUTIONS FINANCIAL (MSF)                                               Rev. 17MAY12
               NON-CONFORMING (JUMBO) FIXED RATE PRODUCT


                
                   A minimum seven years must have elapsed since the date of discharge or dismissal of bankruptcy
                
                   Chapter 7 bankruptcy is measured from discharge date
                
                   Chapter 13 bankruptcy is measured from discharge date
                
                   There can be no 30-day mortgage/rental delinquency in the past 12 months and no 60+ day mortgage/rental
                     delinquency in the past 24 months
                      If a mortgage is included and discharged in the bankruptcy, it should be treated as a forbearance, therefore,
                        a foreclosure

                Foreclosure
                
                
                 A minimum seven years must have elapsed since the date of foreclosure completion
                
                
                 There can be no 30-day mortgage/rental delinquency in the past 12 months and no 60+ day mortgage/rental
                 delinquency in the past 24 months

                Restructured Loan / Short Payoff
                
                A restructured loan or short payoff is a mortgage loan in which the terms of the original transaction have been
                  changed resulting in either absolute forgiveness of debt or a restructure of debt through either a modification of
                  the original loan or origination of a new loan that results in:
                   Forgiveness of a portion of principal and/or interest on either the first or second mortgage;
                   Application of a principal curtailment by or on behalf of the investor to simulate principal forgiveness;
                   Conversion of any portion of the original mortgage debt to a “soft” subordinate mortgage; or
                   Conversion of any portion of the original mortgage debt from secured or unsecured debt
                 In many cases, a borrower may not disclose that their existing mortgage loan has been restructured. The
                  credit report may show a restructured loan as “settled for less than owed”. If the credit report does not
                  specify “settled for less than owed”, you will need to scrutinize the mortgage balance reported on the credit
                  report versus the payoff balance. If the two balances do not match and the difference is more than unpaid
                  interest or prepayment penalties, the loan may have been restructured
                 If the existing loan being paid off is a restructured loan or short payoff, the loan is not eligible for a
                  Rate/Term Refinance transaction
                 If the Borrower has had a prior restructured loan or short pay off, the new loan is eligible for financing
                  subject to compliance with all foreclosure guidelines

                Consumer Credit Counseling
                 Borrowers must provide a satisfactory explanation for participating in Consumer Credit Counseling. A
                  Borrower is eligible while they are in Consumer Credit Counseling Service (CCCS) provided the following
                  criteria are met:
                   Credit score requirements are met
                   Qualifying ratios must be calculated on the creditor’s minimum monthly payment (per the credit report)
                      versus the reduced consumer credit counseling payment
                   All accounts must be current


Page 7 of 11                     MORTGAGE SOLUTIONS FINANCIAL (MSF)                                            Rev. 17MAY12
                 NON-CONFORMING (JUMBO) FIXED RATE PRODUCT


                          No cash in hand unless all accounts included in the consumer credit counseling are paid

                   Major Adverse Credit
                    Collection accounts, charge-off accounts, judgments, liens, delinquent property taxes, repossessions,
                     garnishments, and non-mortgage accounts currently 90 days or more delinquent.
                    For Major Adverse accounts reporting within the past 24 months:
                      Major adverse accounts reported in the past 24 months are not allowed; however, isolated accounts with
                        less than a $500 cumulative balance are permitted. These accounts may be left open provided they do not
                        affect title
                    For Major adverse accounts reporting older than 24 months:
                      All State, IRS, and property tax liens (subject property and other properties), regardless of seasoning, are
                        required to be paid whether or not they currently affect title. No payment plans or subordination is allowed
                      All other adverse accounts over 24 months old that do not affect title are not required to be paid
        ASSETS     Borrower Investment
                   Primary Residence
                  
                      A minimum down payment of 5% must be paid from the borrower’s own funds. The balance may be paid
                        from any of the acceptable asset sources. (borrowers funds, gift funds or secondary financing)
                   Second Home
                  
                      The entire down payment must be paid from the borrower’s own funds. Gifts are not permitted.

                  Seller Contributions
                  
                  
                   Maximum contribution is 3%

                  Gifts
                   Acceptable on loans up to $1 million provided minimum borrower investment requirements are met.
                   The minimum borrower investment is waived on primary residences when gift reduces the LTV <= 80% and
                    borrower pays own closing costs and no secondary financing exists.
                   No gifts acceptable on loans over $1 million

                  Reserves
                  
                  
                   Reserves must come from borrower’s own funds. Must be verified PITIA (inclusive of HOA fees, if applicable)
                   reserves remaining after closing, exclusive of closing costs, cash out received, and proceeds from home equity
                   transactions:

                  Loan Amount/Combined Loan Amount > = to $1 million
                  
                  
                   Minimum 12 months reserves (inclusive of HOA fee, if applicable) and exclusive of cash out funds, business
                   assets (other than Schedule C)
                    Minimum 6 months liquid reserves
                    Maximum 6 months reserves permitted from retirement accounts. See Reserves below.


Page 8 of 11                        MORTGAGE SOLUTIONS FINANCIAL (MSF)                                           Rev. 17MAY12
                          NON-CONFORMING (JUMBO) FIXED RATE PRODUCT



                               Loan Amount/Combined Loan Amount < $1 million
                              
                               DTI > = 35%
                                  Minimum 12 months reserves (inclusive of HOA fee, if applicable) and exclusive of cash out funds,
                                    business assets (other than schedule C)
                                  Minimum 6 months liquid reserves
                                  Maximum 6 months reserves permitted from retirement accounts. See Reserves below
                               DTI < 35%
                              
                                  Minimum 6 months liquid reserves (inclusive of HOA fee, if applicable)
                                  Exclusive of 401k/SEP accounts, cash out funds, business assets (other than schedule C). See below for
                                    other Ineligible Reserves

                                Refer to the Departure Residence section for reserve requirements if:
                              
                               The borrower’s primary residence is for sale, but will not close before the Note Date of the Mortgage on the
                                 new primary residence
                               The borrower is converting their primary residence to a second home or investment property
                              
                               Proposed rent is being used for income
                              

                              Ineligible sources for reserves or funds to close include, but are not limited to:
                              
                              Business Assets (other than schedule C)
                              
                              Cash out Proceeds
                              
                              Bridge Loans
                              
                              Loans secured by other assets
                              
                              Proceeds from the sale of non-real estate assets
                              
                              Funds in a Custodial or “In Trust For” account

                               First Time Homebuyers
                              
                              Refer to Borrower Eligibility for additional reserve requirements

                                Retirement Account Funds
                              
                               Borrowers of retirement age (generally 59 1/2): Subtract 30 percent from the vested amount less any
                                 outstanding loans
                               Borrowers not of retirement age: Subtract 50 percent from the vested amount less any outstanding loans
                              
        MULTIPLE PROPERTIES    Multiple Loans to the Same Borrower
                               Maximum 20% concentration in any one project or subdivision
                              
        OWNED / FINANCED       Up to 4 financed properties, including the subject property
                              
                               Refer to Underwriting section
                              
        APPRAISAL              All appraisals must be ordered through Veros AMC, must be ordered by MSF personnel only
                              
                               Loan amounts <= $1,000,000
                              
        REQUIREMENTS
                                  One full appraisal with interior photos

Page 9 of 11                                 MORTGAGE SOLUTIONS FINANCIAL (MSF)                                             Rev. 17MAY12
                                  NON-CONFORMING (JUMBO) FIXED RATE PRODUCT


                                        
                                       Desk review of appraisal required
                                   
                                   
                                    Loan amounts > $1,000,000
                                     Two full appraisals with interior photos as determined by investor at time of underwriting
         MORTGAGE                  N/A
         INSURANCE
         DEPARTURE                 
                                      Pending sale of current primary residence or conversion to second home
                                          Qualify with PITIA of both properties
         RESIDENCE POLICY
                                          6 months reserves required for both properties
                                   
                                      Current primary conversion to investment property
                                         Qualify with PITIA of both properties or document 30% equity to use rental income for qualifying
                                         6 months reserves required for both properties
                                   
                                      See Seller’s Guide for additional requirements
                CONSTRUCTION TO    Rate and Term Refinance
                PERMANENT          
                                      Arms Length Transactions
                FINANCING               The LTV/CLTV is based on the appraised value of the property (both lot and improvements); regardless of the
                                        length of time, the Borrower had held title to the lot
                                   
                                      Non-Arms Length Transactions
                                   
                                      See Arms Length/Non-Arms Length Transactions section of Seller’s Guide for eligibility
                                   
                                      If the lot was acquired 12 or more months before applying for the construction financing, or if the lot was
                                        acquired through an inheritance or gift (regardless of the date of acquisition) the LTV/CLTV is based on the
                                        lesser of:
                                         The current appraised value for the property (lot and improvements) or
                                         The total acquisition costs (the sum of construction costs and the lower of the sales price or current
                                             appraised value of the lot)
                                         If the lot was acquired within the 12 months preceding the date of the application for construction financing,
                                             the LTV/CLTV is based on the lesser of:
                                            
                                             The current appraised value for the property (lot and improvements) or
                                            
                                             The total acquisition costs (the sum of construction costs and the lower of the sales price or current
                                                appraised value of the lot)
                                            
                                             Document the sales price of the lot with a copy of either the purchase contract or the related HUD-1
                                                Uniform Settlement Statement

                                   Cash Out Refinance
                                    Arms Length Transactions
                                    If the lot was acquired 12 or more months before applying for the construction financing, the LTV/CLTV is
                                   
                                      based on the current appraised value of the property (both the lot and improvements)
                                    If the lot was acquired within the 12 months before applying for the construction financing, the LTV/CLTV is
                                   

Page 10 of 11                                        MORTGAGE SOLUTIONS FINANCIAL (MSF)                                             Rev. 17MAY12
                              NON-CONFORMING (JUMBO) FIXED RATE PRODUCT


                                    based on the lesser of:
                                       The current appraised value of the property (both the lot and improvements) or
                                       The total acquisition costs (sum of the construction costs and the lower of the sales price or current
                                        appraised value of the lot)
                               
                                  A non-arm's length transaction is not eligible for a Cash Out Refinance transaction
           AUS REQUIREMENTS    
                                  All loans must be submitted through Fannie Mae Desktop Underwriter/Desktop Originator (DO/DU) and the
                                    feedback report reviewed for appropriate fraud alerts and contributory messages prior to performing a manual
                                    underwriting review




Page 11 of 11                                   MORTGAGE SOLUTIONS FINANCIAL (MSF)                                           Rev. 17MAY12

				
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