ACC's Underwriting Guidelines _24.9 KB_ - ACC Mortgage by yantingting

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									                                                                                             ACC MORTGAGE
                                                                                                          MATRIX
                                                                                                   September 1, 2012

    GUIDELINE SECTION NAME                               Owner Occupy                                            Non Owner Occupy / Commercial Loans                                             FIX AND FLIP PROGRAM


                                There must be a benefit to the borrower for all Refi's. Cash out is There must be a benefit to the borrower for all Refi's. Cash out is
     Benefit to the Borrower    not a benefit to the borrower. Must be improving their overall      not a benefit to the borrower. Must be improving their overall          Purchase transaction only
                                financial position                                                  financial position



        Capacity to Repay       All borrowers must show the ability to repay the loan               All borrowers must show the ability to repay the loan                   All borrowers must show the ability to repay the loan



         Max LTV/CLTV           Max 90%                                                             Max 75%                                                                 Max 100% of purchase price
B
A     Pre Payment Penalty       Never                                                               Never                                                                   Never

S                               Rate start at 8.99% Interest Only                                   Rate start at 9.99% Interest Only                              Points   Rate start at 11% Interest Only
          Rate & Points
I                               Points start at 2                                                   start at 3                                                              Points start at 4

C        Loan Amounts
                                Max Loan amount $2,000,000.00
                                Min Loan Amount $80,000 (lower case by case)
                                                                                                  Max Loan amount $2,000,000.00
                                                                                   Cut LTV to 50% Min Loan Amount $80,000 (lower case by case)           Cut LTV to 50%
                                                                                                                                                                            Max Loan amount $500,000.00                                      Min

S                               for loan amounts over $500,000.00                                 for loan amounts over $500,000.00
                                                                                                                                                                            Loan Amount $80,000 (lower case by case)

                                                                                                    All States except: Michigan, Ohio, Alabama, Louisiana, Indiana,
                                Maryland, Virginia & Washington DC - other states by exception
        Approved States         only
                                                                                                    California, Arizona, Alaska, Hawaii, Texas, North Carolina, Illinois,   DC Metro Area OK, other states case-by-case
                                                                                                    Nevada and Georgia


             Terms              30yr fixed                                                          1yr to 5 yrs - Interest Only                                            6mos Balloon - Interest Only



                                Full Doc Only



     Minimum Credit History     N/A                                                                 N/A                                                                     N/A



                                Individual CR and Business CR -Good for 30 days                     Individual CR and Business CR -Good for 30 days                         Individual CR and Business CR -Good for 30 days
     Credit report Type & Age   A minimum of 2 Scores must be obtained for each borrower            A minimum of 2 Scores must be obtained for each borrower                A minimum of 2 Scores must be obtained for each borrower
C
R       Alternative Credit      Non Traditional Credit is not permitted                             Non Traditional Credit is not permitted                                 Non Traditional Credit is not permitted


E                               All Accounts must be paid in full at closing including collections, All Accounts must be paid in full at closing including collections,
      Delinquent Accounts       judgments, charge offs, pass due child support, liens, etc... Need judgments, charge offs, pass due child support, liens, etc... Need
D                               copy of payoff statements                                           copy of payoff statements

I
T          Foreclosure                                          OK                                                                   N/A                                                                      OK


         Chapter 7 BK           Must be Discharge Min 1 Day                                         Must be Discharge Min 1 Day                                             Must be out of bankruptcy
         Chapter 13 BK          We can buyout bankruptcy                                            We can buyout bankruptcy                                                Must be out of bankruptcy

       Credit Explanations      Written explanations are required for derogatory credit items.      Written explanations are required for derogatory credit items.          Written explanations are required for derogatory credit items.




                                                                                        ACC MATRIX SEPTEMBER 2012.xls                                                                                                                          Page 1
                                                                                                            ACC MORTGAGE
                                                                                                                         MATRIX
                                                                                                                    September 1, 2012

        GUIDELINE SECTION NAME                                        Owner Occupy                                               Non Owner Occupy / Commercial Loans                         FIX AND FLIP PROGRAM


                                           Employment and income for a salaried employee may be Employment and income for a salaried employee may be
    Income Documentation -           W-2 verified by obtaining all of the following documentations: verified by obtaining all of the following documentations:
                                                                                                                                                                                                   NO DOC
               wage earner                 VOE, most recent paystubs, 2 years             W-2 Lender to             VOE, most recent paystubs, 2 years             W-2 Lender to
                                           verbal verify employment                                                 verbal verify employment



                                                                                                             Full Doc: Most recent 2 yrs personal & business tax returns-with all
                                                                                                             schedules, signed 8821/4506-T(If S corp. or Partnership and owner
                                           Full Doc only: Most recent 2 yrs personal & business tax returns-
B   Income Documentation -          Self   with all schedules, signed 8821/4506-T(If S corp. or Partnership
                                                                                                             is 25% or greater, will need tax returns as well). Good standing
                                                                                                             letter, Article of incorporation, business license.                                SIGNED 4506-T
               Employed                    and owner is 25% or greater, will need tax returns as well). Good
A                                          standing letter, Article of incorporation, business license.
                                                                                                             NO DOC available for LTVs below 60%
                                                                                                             STATED & NO DOC- We require a 4506T to show they filed tax
S                                                                                                            returns.


I
C                                          We will consider automobile allowances as acceptable stable
                                           income for a borrower who has been receiving the payments for at
                                                                                                                 We will consider automobile allowances as acceptable stable
                                                                                                                 income for a borrower who has been receiving the payments for at
S                                          least two years, provided ACC mortgage includes all associated
                                           business expenditures in its calculation of the borrower's total debt-
                                                                                                                 least two years, provided ACC mortgage includes all associated
I             Auto allowance               to-income ratio.                                        ACC
                                                                                                                 business expenditures in its calculation of the borrower's total debt-
                                                                                                                 to-income ratio.                             ACC should not include
                                                                                                                                                                                                     N/A
                                           should not include automobile allowances that have been
N                                          received for less than two years when it calculates the borrower's
                                                                                                                 automobile allowances that have been received for less than two
                                                                                                                 years when it calculates the borrower's debt-to-income ratio, but
                                           debt-to-income ratio, but may use them to justify a higher
C                                          qualifying ratio.
                                                                                                                 may use them to justify a higher qualifying ratio.

O
M                                          All sources of income, including non-employed income (eg,
                                           retirement, stock, etc.) may be used to qualify. 2 yr history of
                                                                                                                    All sources of income, including non-employed income (eg,
                                                                                                                    retirement, stock, etc.) may be used to qualify. 2 yr history of
E              Capital Gains               receiving the income is required, and verify receipt of the income
                                           for the past 12 mths, and that it is likely to continue for the next 3
                                                                                                                    receiving the income is required, and verify receipt of the income
                                                                                                                    for the past 12 mths, and that it is likely to continue for the next 3
                                                                                                                                                                                                     N/A
                                           yrs.                                                                     yrs.

                                           Borrower has been receiving OT or bonus for at least 1 yr, income        Borrower has been receiving OT or bonus for at least 1 yr, income
                                           must be expected for 2 yrs, W2 forms and payroll stmts indicate          must be expected for 2 yrs, W2 forms and payroll stmts indicate an
         Bonus & Incentive Income          an earnings level that is consistent with the total income that is       earnings level that is consistent with the total income that is being
                                                                                                                                                                                                     N/A
                                           being considered.                                                        considered.
                                           Payments must continue for at least 3 years. Need a copy of              Payments must continue for at least 3 years. Need a copy of
    Child Support, Alimony, Maintenance    divorce degree, separation agreement and court order (must               divorce degree, separation agreement and court order (must have                  N/A
                                           have court order)                                                        court order)
                                           Borrowers who receive commission >25% of their total income              Borrowers who receive commission >25% of their total income
                                           need to provide: Most recent Federal tax return, current paystub         need to provide: Most recent Federal tax return, current paystub
           Commission Income               and most recent W2. for borrower's with <25%, follow standard            and most recent W2. for borrower's with <25%, follow standard
                                                                                                                                                                                                     N/A
                                           guidelines.                                                              guidelines.


                                           Full Doc: All sources of income, including non-employed income           Full Doc: All sources of income, including non-employed income
                                           (eg, retirement, stock, etc.) may be used to qualify.2 yr history of     (eg, retirement, stock, etc.) may be used to qualify.2 yr history of
      Disability Income/Workers Comp       receiving the income is required, and verify receipt of the income       receiving the income is required, and verify receipt of the income               N/A
                                           for the past 12 mths, and that it is likely to continue for the next 3   for the past 12 mths, and that it is likely to continue for the next 3
                                           yrs.                                                                     yrs.

                                                                                                                                                                                                     N/A




                                                                                                     ACC MATRIX SEPTEMBER 2012.xls                                                                                  Page 2
                                                                                                         ACC MORTGAGE
                                                                                                                      MATRIX
                                                                                                                 September 1, 2012

      GUIDELINE SECTION NAME                                       Owner Occupy                                               Non Owner Occupy / Commercial Loans                         FIX AND FLIP PROGRAM


                                        Full Doc: All sources of income, including non-employed income           Full Doc: All sources of income, including non-employed income
                                        (eg, retirement, stock, etc.) may be used to qualify.2 yr history of     (eg, retirement, stock, etc.) may be used to qualify.2 yr history of
            Dividend/Interest           receiving the income is required, and verify receipt of the income       receiving the income is required, and verify receipt of the income               N/A
                                        for the past 12 mths, and that it is likely to continue for the next 3   for the past 12 mths, and that it is likely to continue for the next 3
                                        yrs.                                                                     yrs.


          Employed by relative          Full Doc Only, 2 years tax returns                                       Full Doc Only, 2 years tax returns                                               N/A
                                        Acceptable only if income can be verified on US personal tax             Acceptable only if income can be verified on US personal tax
B           Foreign Income              returns & is paid in US currency. Foreign currency will be on a          returns & is paid in US currency. Foreign currency will be on a case-            N/A
                                        case-by-case basis                                                       by-case basis
A
S            Foster Income
                                        Full Doc: 2 yr history of receiving the income is required, and
                                        verify receipt of the income for the past 12 mths, and that it is
                                                                                                                 Full Doc: 2 yr history of receiving the income is required, and verify
                                                                                                                 receipt of the income for the past 12 mths, and that it is likely to             N/A
I                                       likely to continue for the next 3 yrs.                                   continue for the next 3 yrs.


C                                       Secured: copy of the note is required to verify the payment              Secured: copy of the note is required to verify the payment amount
                                        amount & remaining term. Payments must continue for 3 yrs.               & remaining term. Payments must continue for 3 yrs. Unsecured:
S   Installment Sales & Land Contract   Unsecured: evidence receipt for the last 12 mths is required in          evidence receipt for the last 12 mths is required in addition to a               N/A
                                        addition to a copy of the note verifying payment amount and              copy of the note verifying payment amount and remaining term of at
                                        remaining term of at least 3 yrs.                                        least 3 yrs.
I
N                                       Full Doc: 2 yr history of receiving the income is required, and          Full Doc: 2 yr history of receiving the income is required, and verify
            Note Receivable             verify receipt of the income for the past 12 mths, and that it is        receipt of the income for the past 12 mths, and that it is likely to             N/A
C                                       likely to continue for the next 3 yrs.                                   continue for the next 3 yrs.

O         Trailing Spouse/RLP           Not Acceptable                                                           Not Acceptable                                                                   N/A
            Renting Rooms                                                                                                                                                                         N/A
M                                       Not Acceptable                                                           Not Acceptable

                                        Copy of award letter, verify likelihood of continuance for at least 3 Copy of award letter, verify likelihood of continuance for at least 3
E      Social Security/Retirement       yrs. Can NOT be grossed up                                            yrs. Can NOT be grossed up
                                                                                                                                                                                                  N/A


                                        Full Doc: All sources of income, including non-employed income Full Doc: All sources of income, including non-employed income
                                        (eg, retirement, stock, etc.) may be used to qualify. 2 yr history of (eg, retirement, stock, etc.) may be used to qualify. 2 yr history of
             Stock Options              receiving the income is required, and verify receipt of the income receiving the income is required, and verify receipt of the income                     N/A
                                        for the past 12 mths, and that it is likely to continue for the next 3 for the past 12 mths, and that it is likely to continue for the next 3
                                        yrs.                                                                   yrs.



                                        Unemployment benefits—such as those received by seasonal                 Unemployment benefits—such as those received by seasonal
                                        workers—may be considered as acceptable stable income if the             workers—may be considered as acceptable stable income if the
                                        income is properly documented, has been received for the past            income is properly documented, has been received for the past two
                                        two years, and is predictable and likely to continue (as discussed       years, and is predictable and likely to continue (as discussed for
         Unemployment Comp              for seasonal unemployment compensation in Section 402.05                 seasonal unemployment compensation in Section 402.05 above).
                                                                                                                                                                                                  N/A
                                        above). Copies of the borrower's signed federal income tax               Copies of the borrower's signed federal income tax returns that
                                        returns that were filed with the IRS for the past two years should       were filed with the IRS for the past two years should be used to
                                        be used to establish a history of the receipt of these benefits          establish a history of the receipt of these benefits



                                        VA benefits are mentioned; award letter, likeliness of 3 yrs             VA benefits are mentioned; award letter, likeliness of 3 yrs
         VA Survivors Benefits          continuance, verification of receipt. VA educational benefits are        continuance, verification of receipt. VA educational benefits are                N/A
                                        unacceptable income sources.                                             unacceptable income sources.




                                                                                                  ACC MATRIX SEPTEMBER 2012.xls                                                                                  Page 3
                                                                                                ACC MORTGAGE
                                                                                                             MATRIX
                                                                                                        September 1, 2012

    GUIDELINE SECTION NAME                                 Owner Occupy                                             Non Owner Occupy / Commercial Loans                                            FIX AND FLIP PROGRAM

                                  Credit and Income: 30 days Appraisal: 3 mths Recert up to 6           Credit and Income: 30 days Appraisal: 3 mths Recert up to 6
        Age of Income Docs        months with exception                                                 months with exception
                                                                                                                                                                               Credit: 30 days Appraisal: 3 mths


                                  In the absence of a stated mthly payment on revolving or long-    In the absence of a stated mthly payment on revolving or long-term
             Liabilities          term debt, 5% of the outstanding balance will be considered to be debt, 5% of the outstanding balance will be considered to be the                                           N/A
                                  the required mthly payment.                                       required mthly payment.


                                  Not considered in debt ratio even on sole Prop provided proof can Not considered in debt ratio even on sole Prop provided proof can
                                  be obtained showing business pays the debt. If documentation       be obtained showing business pays the debt. If documentation
          Business Debt
B                                 does not exist then debt and rating will be considered that of the does not exist then debt and rating will be considered that of the
                                  borrower's. The lender should consider the stability of income and borrower's. The lender should consider the stability of income and
                                                                                                                                                                                                               N/A


A
G
                                  the ability to pay both business and personal expenses             the ability to pay both business and personal expenses


S
E
                                  Deferred installment debt—such as student loans and loans in          Deferred installment debt—such as student loans and loans in
I
N                                 forbearance—must also be included as part of the borrower's           forbearance—must also be included as part of the borrower's
                                  recurring monthly debt obligations. If the borrower's credit report   recurring monthly debt obligations. If the borrower's credit report
C
E     Deferred Student Loans
                                  does not indicate the monthly payment that will be payable at the     does not indicate the monthly payment that will be payable at the
                                                                                                                                                                                                               N/A
                                  end of the deferment period, the lender should request a copy of      end of the deferment period, the lender should request a copy of
S
R                                 the borrower's payment letter or forbearance agreement so that it     the borrower's payment letter or forbearance agreement so that it
                                  can determine what payment amount to use in calculating the           can determine what payment amount to use in calculating the
A                                 borrower's total monthly obligations                                  borrower's total monthly obligations

L
    Consumer Credit Counseling    ACC loan must pay off CCCS completely                                 ACC loan must pay off CCCS completely                                                                  N/A

G
U      Debt to Income Ratios      Max 45%                                                               Max 50%                                                                                                N/A
I
D         Assets - 1st lien
                                  Purchase: Proof of assets (Source and season) Refi's: used as         Purchase: Proof of assets (Source and season) Refi's: used as
                                                                                                                                                                               Purchase: Proof of assets
                                  compensating factor                                                   compensating factor
E
L
I   Sales & Finance Concessions
                                  Primary or 2nd Homes: 6% of the lesser of the sales price or
                                  appraised value. All Investment property: 6% of the less or the
                                                                                                        Primary or 2nd Homes: 6% of the lesser of the sales price or
                                                                                                        appraised value. All Investment property: 6% of the less or the        6% of the lesser of the sales price or appraised value.
N                                 sales price or appraised value.                                       sales price or appraised value.

E        Foreign National
                                  Eligible for financing by exception only. Max LTV 75% No Income, Eligible for financing by exception only. Max LTV 75% No Income,
                                                                                                                                                                                                               N/A
                                  No Credit. Need to see type of Visa                              No Credit. Need to see type of Visa
S
                                  < then 1 yr seasoning: If the 1st lien being pd off is a purchase &   < then 1 yr seasoning: If the 1st lien being pd off is a purchase &
                                  the original purchase price (as stated on 1003) is less than the      the original purchase price (as stated on 1003) is less than the new
                                  new app. value the file should contain documentation supporting       app. value the file should contain documentation supporting the
       Refinance Seasoning        the increase in value. IF the increase is not supported the UW will   increase in value. IF the increase is not supported the UW will use
                                                                                                                                                                                                               N/A
                                  use the lower of the original price or the new app. value to          the lower of the original price or the new app. value to determine
                                  determine LTV/CLTV.                                                   LTV/CLTV.



       First Time Homebuyer       No specific guidelines related to FTHB.                               No specific guidelines related to FTHB.                                                                N/A




                                                                                         ACC MATRIX SEPTEMBER 2012.xls                                                                                                                   Page 4
                                                                                                                ACC MORTGAGE
                                                                                                                             MATRIX
                                                                                                                        September 1, 2012

         GUIDELINE SECTION NAME                                           Owner Occupy                                               Non Owner Occupy / Commercial Loans                                             FIX AND FLIP PROGRAM


                                                Debt consolidation is not considered cash out. Any cash in hand         Debt consolidation is not considered cash out. Any cash in hand to
     Cash out Refi & Rate and Term Refi         to borrower is by exception only.                                       borrower is by exception only.
                                                                                                                                                                                                                                N/A



        Co Borrowers (non-occupant)             Case by Case                                                            Case by Case                                                                                            N/A


                                                Must comply with local state regs. Borrower must be settler,            Must comply with local state regs. Borrower must be settler,
                                                beneficiary, trustee. Required documentation: Attorney's opinion        beneficiary, trustee. Required documentation: Attorney's opinion
B                    Trusts
                                                letter stating the Trust is revocable, the borrower is the
                                                settler/beneficiary, trust assets may be used as collateral, trust is
                                                                                                                        letter stating the Trust is revocable, the borrower is the
                                                                                                                        settler/beneficiary, trust assets may be used as collateral, trust is
                                                                                                                                                                                                                                N/A

A                                               valid. Need a copy of Trust docs or a copy of the Summary for
                                                Jurisdictions
                                                                                                                        valid. Need a copy of Trust docs or a copy of the Summary for
                                                                                                                        Jurisdictions
S
       Maximum Exposure-properties
I                                               No Limit                                                                No Limit                                                                                                N/A

                                                for Primary or Second homes the full down payment may be from for Primary or Second homes the full down payment may be from a
G
C                Second Home                    a gift. Max LTV 70%                                           gift. Max LTV 70%
                                                                                                                                                                                                                                N/A

E
S            Investment Property                Gift funds are allowed for Inv Property Max LTV 70%                     Gift funds are allowed for Inv Property Max LTV 70%                                                     N/A

N          Properties listed for sale           Acceptable                                                              Acceptable                                                                                          Acceptable

E
R                                               Payoff may be treated as a purchase or refi, appraised value can Payoff may be treated as a purchase or refi, appraised value can
    Land Contract Recorded/Contract for be used to determine LTV in purchase regardless of the remaining be used to determine LTV in purchase regardless of the remaining
A                  Deed                 loan balance if the land contract or contract for deed has been  loan balance if the land contract or contract for deed has been
                                                                                                                                                                                                                                N/A

L                                               seasoned for at least 2 years.                                          seasoned for at least 2 years.




G         Land Contract Unrecorded              Payoff may be treated as a purchase. Refi, case by case                 Payoff may be treated as a purchase. Refi, case by case                                                 N/A

U
I                Lease Option                   Must be treated as a purchase                                           Must be treated as a purchase                                                                           N/A

D
E                   Escrows                     Escrows required. Case by case exceptions                               Escrows required. Case by case exceptions                                                               N/A

L                     Title
                                                24 month look back generally required.                                  24 month look back generally required.                             ACC
                                                                                                                                                                                                                                N/A
                                                ACC will order Title                                                    will order Title
I
             Mortgage Insurance                 No MI required                                                          No MI required                                                                                          N/A
N
E                  Min Sq Ft                    750 sf - case by case                                                   750 sf - case by case                                                                                   N/A


S                                               ACC will escrow funds for interest reserves, Home improvements, ACC will escrow funds for interest reserves, Home improvements,                  ACC will escrow funds for interest reserves, Home improvements, or
              Escrow Holdbacks                  or any other circumstances deemed appropriate by management or any other circumstances deemed appropriate by management                          any other circumstances deemed appropriate by management



              Employment Gaps                   Gaps greater than 30 days must be explained                             Gaps greater than 30 days must be explained                                                             N/A


                                                Mobile, Manufactured Homes, land, Subject-to Properties or              Church, Gas Satiations, Land, any property with an Environmental Mobile, Manufactured Homes, land, commercial or construction
           Unacceptable Properties              construction loans                                                      Impact                                                           loans




                                                                                                          ACC MATRIX SEPTEMBER 2012.xls                                                                                                                          Page 5
E
S

                                                                                           ACC MORTGAGE
                                                                                                        MATRIX
                                                                                                   September 1, 2012

    GUIDELINE SECTION NAME                             Owner Occupy                                            Non Owner Occupy / Commercial Loans                                           FIX AND FLIP PROGRAM


                                                                                                                                                                         For ACC loans one full appraisal by a Certified appraiser & BPO
                             For ACC loans one full appraisal by a Certified appraiser & BPO       For ACC loans one full appraisal by a Certified appraiser & BPO
                                                                                                                                                                         review with data verification (ACC will always order a BPO).The
                             review with data verification (ACC will always order a BPO).The       review with data verification (ACC will always order a BPO).The
           Appraisal         lesser of the appraised value, review value, or sales price will be   lesser of the appraised value, review value, or sales price will be
                                                                                                                                                                         lesser of the appraised value, review value, or sales price will be
                                                                                                                                                                         used to determine the LTV/CLTV. Appraiser must provide cost of
                             used to determine the LTV/CLTV.                                       used to determine the LTV/CLTV.
                                                                                                                                                                         cure AND ARV




B
A
S
I
C
S




                                                                                     ACC MATRIX SEPTEMBER 2012.xls                                                                                                                             Page 6

								
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