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Bank Statement Mortgage Loan Qualifying Program Lender by gxi56729

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									                        EVERBANK WHOLESALE LENDING
STREAMLINE REFINANCE GOVERNMENT LENDING PROGRAM - FHA Fixed Rate and ARMS

PRODUCT            FHA - Government Lending Streamline Refinance Product
                   FIXED - 203(b) and 234(c)
PRODUCT OVERVIEW      FHA to FHA only
                      The borrower’s note rate must be decreasing
Revised 11-17-09      The lender must determine net tangible benefit to the borrower as a result
                      of the streamline transaction - see NTB section below.
LOAN PROGRAM       FIXED Streamline Refi:          FHA15FSL        FHA20FSL        FHA30FSL
CODES
LOAN PURPOSE       Streamline Refinance only - All proceeds used to pay existing first lien and
                   costs associated with the transaction; $500 or less allowed back to the
                   borrower at closing
INELIGIBLE LOAN    Any special Housing Initiative Programs or FHA Rehab properties are
TYPES              ineligible. Exceptions may only be granted though EverBank UW Management.


                   Cash out transactions for properties located in Texas are ineligible
LOAN TERMS         Fixed Rate Terms: 180, 240, 300 & 360 months
                   A Streamline Refinance without an appraisal is limited to the remaining term of
                   the existing mortgage plus 12 years (not to exceed 30 years).
LOAN AMOUNT        Minimum: None
                   Maximum:
                   1 Unit Properties: $417,000             Hawaii: 1 Unit Properties: $625,500
                   2 Unit Properties: $533,850                     2 Unit Properties: $800,775
                   3 Unit Properties: $645,300                     3 Unit Properties: $967,950
                   4 Unit Properties: $801,950                     4 Unit Properties: $1,202,925
                   In all cases, the lesser of the HUD maximum as defined by county or the
                   maximum as set forth above cannot be exceeded.
                   Generally, the maximum insurable mortgage is the lesser of:
                     FHA’s statutory loan limit for the area (typically a county or metropolitan
                     statistical area, MSA) , or
                     The applicable loan-to-value limit.

                   A complete listing of FHA mortgage loan limits for all areas are available
                   through the HUD website.
                   NOTE: The statutory loan limit applies to the base loan amount before
                   UFMIP is added.
OCCUPANCY            Primary Residence Only
         Revised     Investment property: Allowed only as a Streamline Without Appraisal
10-10-08             transaction. The max loan amount is limited to the principal balance and
                     UFMIP only - no interest or closing costs may be refinanced into the loan
                     amount. The maximum term is the lesser of 30 years or remaining term
                     plus 12 years.



                                                 1                                Revised 10-4-10
STREAMLINE REFINANCE GOVERNMENT LENDING PROGRAM - FHA Fixed Rate and ARMS

ELIGIBLE                  U.S. Citizens
BORROWERS                 Permanent Resident Aliens
                          Non-Permanent Resident Aliens
INELIGIBLE                Foreign Nationals
BORROWERS                 Anyone listed on the HUD LDP or GSA lists
NON-PURCHASING          The community property states are: Arizona, California, Idaho, Louisiana,
SPOUSE IN A             Nevada, New Mexico, Texas, Washington and Wisconsin.
COMMUNITY
                   If the borrower resides in or the subject property is located in a community
PROPERTY STATE
                   property state and only one spouse is a borrower, a credit report of the non-
(CREDIT QUALIFYING
                   purchasing spouse must be pulled and all of the debts included in the
ONLY)
                   qualifying ratios for the loan. The payment history is not factored into the
                   loan decision and CAIVRS/LDP/GSA checks are not completed for the non-
                   purchasing spouse.
NON-OCCUPYING      Allowed with no additional LTV restrictions.
CO-BORROWER
SOCIAL SECURITY    All files must provide evidence of the borrower’s SSN in addition to the
NUMBER             validation process performed in the FHA Connection:
                       For credit qualifying loans, obtain documentation such as a W-2, pay stub,
                       tax returns, copy of SS card, etc.
                       For non-credit qualifying loans, you may use ELR, SafeCheck, Lexus-Nexus
                       Instant ID or other third party verification tools or obtain copy of the SS Card.
                  All files must also contain the FHA Connection "screen print" evidencing the
                  SSN has passed validation.
ELIGIBLE PROPERTY    1 - 4 Family, Detached, Semi-Detached & PUD’s
TYPES                FHA Approved Condominiums (FHA Streamlines do not require Condo
                     Project Review) however, confirm Project is not prohibited in any way as
                     verified via the FHA Connection or www.hud.gov
INELIGIBLE           Manufactured Homes
PROPERTY TYPES       Co-ops
GEOGRAPHIC        Alaska, Guam, US Virgin Islands, Puerto Rico are ineligible
RESTRICTIONS
STATE SPECIFIC    Hawaii:
CRITERIA             Loans under Native Hawaiian Housing Loan Guarantee Program (Section
                     184A) are ineligible.
                     Loans under Hawaiian Home Lands (Section 247) are ineligible.
                     Leasehold properties are ineligible
                     Properties identified in Lava Flow Zones #1 & #2 are considered ineligible.
                        Florida Condominiums
                        The following requirements apply for condominiums in Florida:
                           Primary Residence - Max 75% LTV/CLTV prior to the inclusion of UFMIP
                           Investment properties ineligible
                        Texas:
                          Cash out transactions for properties located in Texas are ineligible
                          The borrower can receive no proceeds from a refinance in Texas
                          Total financed closing costs are limited to 10% of the new loan amount



                                                    2                                 Revised 10-4-10
STREAMLINE REFINANCE GOVERNMENT LENDING PROGRAM - FHA Fixed Rate and ARMS

SEASONING                  At time of application, borrower must have made at least 6 payments on the
REQUIREMENTS               current FHA-insured mortgage being refinanced. This standard applies to
             Revised 11-   both credit-qualifying and non-credit qualifying transactions.
APPRAISAL                     The FHA Connection can be used to obtain the appraiser assignment
REQUIREMENTS                  A URAR is required.
(if applicable)
DECLINING MARKET           Not applicable
POLICY
MORTGAGE                   Effective for new FHA case number assignments on or after October 4, 2010
INSURANCE                  the following premiums will apply:
 Revised 10-4-2010         Upfront Premiums: FHA will charge an upfront premium in an amount
                           equal to the following percentages of the mortgage:
                             Full-Credit Qualifying Refinances = 1.00%
                             Streamline Refinances (all types) = 1.00%
                           Annual Premiums: An annual premium, shown in basis points below, to be
                           remitted on a monthly basis, will also be charged based on the initial loan-to-
                           value and length of the mortgage according to the following schedule for
                           Full-Credit Qualifying Refinances, and Streamline Refinances:
                              For loan terms > 15 yrs and LTV’s < 95% = .85%
                              For loan terms > 15 yrs and LTV’s > 95% = .90%
                              For loan terms < 15 yrs and the LTV is < 90.00% = 0.00
                              For loan terms < 15 yrs and the LTV is > 90% = .25%
                           On any refinance where the MIP refund exceeds the Upfront MIP required on
                           the new loan, the overage will be refunded directly to the borrower from HUD.
UNDERWRITING               Manual underwriting is recommended for Streamline Refinances and must be
GUIDELINES                 completed by an EverBank Direct Endorsement Underwriter. If the TOTAL
Revised 7-26-2010          Scorecard within DU or LP is used to score a streamline refinance, the loan
                           can continue to be processed and underwritten as a streamline transaction.
                           Streamline loans run through TOTAL are not required to have documentation
                           in the case binder to verify the values used. "Refer" risk classifications on
                           streamline refinances do not require manual underwriting.
                           Underwriting is subject to all FHA published guidelines, as outlined within the
                           4155.1 REV-5 Handbook, or any other AUS system reduced documentation
                           guidelines such as the TOTAL Scorecard User Guide.
                           The use of Non-traditional Credit is NOT permitted.
DOCUMENTATION              VVOE - A verbal verification of employment is required for all streamline loans.
REQUIREMENTS               The following documentation requirements must be met:
      Revised 11-
                             Wage earners - a VVOE can be obtained either through The Work
17-09
                             Number or directly via telephone.
                             For self-employed borrowers - a verbal verification of employment by a
                             neutral, third-party such as a CPA, regulatory agency or professional
                             organization is required to independently confirm self-employment.
                             Additional evidence may include a current business license, business
                             reference letters, or documentation to support marketing efforts such as
continued next page          phone listings, etc.


                                                       3                                  Revised 10-4-10
STREAMLINE REFINANCE GOVERNMENT LENDING PROGRAM - FHA Fixed Rate and ARMS

DOCUMENTATION         For fixed income, passive income or unearned income – a verbal VOE is
REQUIREMENTS          not required but the income must be documented. For Non-Credit
Continued             Qualifying loans, the EverBank policy which requires the IRS Direct
Revised 11-17-09      verification can be used to document these types of income derived from
                      passive earnings. (i.e, Div/Int - 1040 should indicate Schedule B earnings
                      as reported to the IRS)
                   Lender Certification:
                   Prior to closing, a signed and dated cover letter on EverBank letterhead
                   must be provided certifying that the borrower is employed and has income at
                   the time of the application.
                   Uniform Residential Loan Application (1003)
                   Credit Qualifying: A fully completed 1003 is required to capture income,
                   employment, assets, and liabilities from the credit report.
                   Non-Credit Qualifying: A fully completed 1003 is required in order to capture
                   borrower employment information only. No assets or liabilities are required.
                   Assets:
                   If assets are needed to close, the lender must verify and document those
                   assets with the most recent bank statement
                   Payoff Statement:
                   The pay-off statement for the mortgage being refinanced must be included
                   in the credit package.
NET TANGIBLE       The new mortgage must provide one of the following net tangible benefits
BENEFIT (NTB)      to the borrower:
                   Reduction in total mortgage payment PITIA (principal, interest, taxes and
(Rev. 11/2009)     insurances, HOA fees, ground rents, special assessments and all subordinate
                   liens):
                       The new total mortgage payment (PITIA) must be at least 5% lower than
                       the total mortgage payment for the mortgage being refinanced.
                   Refinance from an ARM to a Fixed Rate mortgage:
                       When refinancing from a 1/1 ARM to a Fixed Rate, the new interest rate
                       can be no more than 2% above the current rate
                       When refinancing a Hybrid ARM (i.e. 3/1, 5/1, 7/1, etc.) the new total
                       mortgage payment (PITIA) may not increase by more than 20% from the
                       current total mortgage payment (PITIA)
                   Reducing the term of the mortgage
                       Term reduction refinance transactions are ineligible for streamline
                       documentation and must be underwritten and closed as a no-cash out
                       refinance; must be run through DU or LP TOTAL Scorecard and
                       processed as a full-credit qualifying transaction.
DEBT RATIOS        Credit Qualifying: Maximum 31% / 43% for manually underwritten loans or as
                   determined by the AUS with TOTAL scorecard approval decision.
                   The use of Mortgage Credit Certificates (MCC's) as income or to reduce the
                   housing and debt ratios are not eligible.
QUALIFYING RATE    Qualify at the Note Rate. (Note: Loan must close at the rate for which it
                   was approved)
MINIMUM DOWN       Not applicable
PAYMENT

                                               4                                 Revised 10-4-10
STREAMLINE REFINANCE GOVERNMENT LENDING PROGRAM - FHA Fixed Rate and ARMS

GIFTS                 Allowed per FHA requirements

INTERESTED PARTY      Not applicable
CONTRIBUTIONS
RESERVES              None required

SUBORDINATE              Existing subordinate financing must be re-subordinated.
FINANCING                The maximum CLTV is 100%
                         A copy of the Secondary Financing Note/Agreement must be part of
Revised 3-3-2010         the underwriting package.
REFINANCE LOAN        FHA Streamline Refinance Categories:
TYPES                    Without an Appraisal
                         With an Appraisal
                         Credit-Qualifying Streamline
STREAMLINE            All Occupancies:
WITHOUT AN               The maximum insurable mortgage cannot exceed the outstanding
APPRAISAL                principal balance MINUS the applicable refund of the UFMIP, PLUS the
  Revised 11-17-09       new UFMIP that will be charged on the refinance.
                         The outstanding principal balance may include interest charges by the
                         current lender but MAY NOT include any delinquent interest, late charges
                         or escrow shortages.
                         The base LTV continues to be calculated by dividing the actual base loan
                         amount by the appraised value.
                         CLTV is based on the original appraised value of the subject property
                         Subordinate liens cannot be paid off and must be re-subordinated -
                         maximum CLTV is 100%
                         Borrowers may be added that were not on the original loan.
                         See the new Maximum Mortgage Calculation chart at the end of this
                         product description. Worksheet must be placed in loan file upon
                         completion.
                      Important Reminder : you must enter the ORIGINAL appraised value from the
                      FHA Refinance Authorization screen in the FHA Connection. This is required
                      to ensure the remaining tem the monthly MIP needs to remain in effect is
STREAMLINE WITH       Owner Occupied ONLY:
AN APPRAISAL             The maximum insurable mortgage is the lower of:
         Revised         1. Outstanding principal balance MINUS the applicable refund of UFMIP,
11/17/09                    PLUS closings costs, prepaid items to establish the escrow account
                            and the new UFMIP that will be charged on the refinanced OR
                         2. 97.75% of appraised value of the property PLUS new the new UFMIP
                            that will be charged on the refinance
                         The outstanding principal balance may include interest charges by the
                         current lender but MAY NOT include any delinquent interest, late charges
                         Discount points may NOT be included in new mortgage. If the borrower
                         has agreed to pay discount points, the lender must verify the borrower
                         has sufficient assets to pay them along with any other financing costs that
continued next page      are not included in the new mortgage amount.


                                                 5                                 Revised 10-4-10
STREAMLINE REFINANCE GOVERNMENT LENDING PROGRAM - FHA Fixed Rate and ARMS

STREAMLINE WITH      The base LTV continues to be calculated by dividing the actual base
AN APPRAISAL         loan amount by the appraised value.
Continued            CLTV is based on the new appraised value
                     Subordinate liens cannot be paid off and must be re-subordinated -
                     maximum CLTV is 100%
                     Borrowers may be added that were not on the original loan.
                     Only lead based repairs must be completed, but repair costs may not be
                     included in the loan amount.
                     If the appraised value is such that the borrower would be better advised
                     to proceed as if no appraisal had been made, the appraisal may be
                     ignored and not used. A notation must be made on the HUD 92900 and
                     FHA Connection corrected.
                     See the new Maximum Mortgage Calculation chart at the end of this
                     product description. Worksheet must be placed in loan file upon
                     completion.
PROJECT              FHA to FHA Streamlines do not require Condo Project Review however
WARRANTY             underwriting should confirm the Project is not prohibited in any way as
STANDARDS            • FHA Project Approval is not required for any FHA/HUD Real Estate
                     Owned (REO).
CREDIT-QUALIFYING   When to do a Credit-Qualifying Streamline:
STREAMLINE           ANY reduction in term must credit qualify and must have an appraisal
Revised 11-17-09     Deletion of a borrower(s)
Revised 10-10-08     Following an assumption of a mortgage that does not contain restrictions
                     limiting assumptions only to creditworthy borrowers and the assumption
                     occurred less than 6 months ago (unless the assumptor can document
                     he/she has made the mortgage payments during this time)
                     Following an assumption of a mortgage in which the transferability
                     restriction was not triggered (i.e. property transfer in a divorce) and the
                     assumption occurred less than 6 months ago (unless the assumptor can
                     document he/she has made the mortgage payments during this time)
                    Requirements:
                      May be done without or with an appraisal
                      All occupancies eligible (Investment only allowed without an appraisal)
                      The total loan amount, including the UFMIP, if financed into the loan, may
                      not exceed 100% of the appraised value.
                      Subordinate liens cannot be paid off and must be re-subordinated -
                      maximum CLTV 100%
                      See applicable Maximum Mortgage Calculation chart at the end of this
                      product description based on whether the loan is without or with an
                      appraisal
                      Provide income documentation, credit report, and a DTI calculation for all
                      borrowers
                      A verbal verification of employment is required prior to closing.
                    The use of Non-traditional Credit is NOT permitted for credit-qualifying
                    transactions.




                                               6                                 Revised 10-4-10
STREAMLINE REFINANCE GOVERNMENT LENDING PROGRAM - FHA Fixed Rate and ARMS

MORTGAGE            For both non-credit qualifying and credit-qualifying refinance transactions:
PAYMENT HISTORY        If the loan is seasoned 12 months or more, provide evidence that the
         Revised       existing loan has not had any 30-day or greater mortgage lates in the
11-17-09               past 12 months
                       If the loan is seasoned less than 12 months, evidence:
                           The existing loan has no 30-day or greater mortgage lates since
                           inception of the loan AND
                           No 30-day or greater mortgage lates for any other first mortgage loans
                           associated with the property and borrower(s) in the most recent 12
                           months
                       Evidence the existing loan is current
ALLOWABLE FEES      Allowable fees are the FHA customary and reasonable fees that may be
         Revised 1- collected from the borrower and added to the existing indebtedness for
11-10               refinances.
                        Refer to Section 5-2 of the 4000.2 REV- 3 mortgagees’ handbook in AllRegs
                        for a current listing of fees and further explanation of "Closing Costs And Other
                        Fees (05/04)". The borrower may not pay a Tax Service Fee.
                    The cost for any item charged to the borrower must not exceed the cost paid by
                    the lender or charged to the lender by the service provider.
PROPERTIES LISTED      Properties currently listed for sale at the time of application are ineligible
FOR SALE               Properties previously listed and then cancelled are eligible for
  7/16/09              refinance with the following requirements:
                          Refinances (including fully qualifying rate/term and streamline
                          transactions): Maximum LTV allowed
                          Cash-out Refinances: Max LTV 70% if the listing was
                          cancelled within the 6 months prior to the application date
                    The following documentation must be provided to evidence listing
                    and cancellation in the loan file:
                       The property’s listing history in the subject section of the appraisal
                       Copy of cancelled listing agreement
                       Evidence a search was made of the Multiple Listing Service (MLS)
                       A written note from the borrower providing a reasonable explanation for
                       removing the house from the market AND confirming the borrower’s intent
                       to continue to occupy the subject property as their primary residence
SHORT SALE OR       Borrowers are eligible for a FHA refinance of their current mortgage
SHORT PAYOFF        with a Short Payoff under the following circumstances only:
TRANSACTIONS           Borrower is current on the existing mortgage, and
                       Appraised value supports the new refinance, and
                       Borrower suffered a reduction in income which does not support
                       repayment of the existing debt.
                    Borrowers are eligible for a FHA refinance when they have experiences a
                    prior Short Sale under the following circumstances only:
continued next page    The subject property was a primary residence, and




                                                    7                                  Revised 10-4-10
STREAMLINE REFINANCE GOVERNMENT LENDING PROGRAM - FHA Fixed Rate and ARMS

SHORT SALE OR               Mortgage payments on the prior mortgage were 0 X 30 days late
SHORT PAYOFF                preceding the short sale, and
TRANSACTIONS                All installment debts were 0 X 30 days late preceding short sale.
    Continued            Borrowers in default on the mortgage at the time of the short sale
                         are not eligible for new FHA financing for 3 years from the date of
                         the pre-foreclosure sale.
NUMBER OF LOANS          FHA only allows a borrower to have one outstanding FHA loan at a time.
PER BORROWER             The maximum number of financed properties is four, including the
Revised 1/20/09          borrower’s primary residence. This standard applies to all occupancy types.
CAIVRS                A clear CAIVRS (Credit Alert Interactive Voice Response System) is not
                      required for a streamline refinance, unless it is a credit-qualifying streamline
                      loan. Refer to Handbook 4155.1 REV-5 for full eligibility rules as offered by
                      FHA.
GOVERNMENT            A borrower is not eligible for a FHA insured loan if he/she has any outstanding
INDEBTEDNESS (LDP Federal Debt until the delinquent account is brought current, paid, or satisfied
& GSA LISTS)          (this includes VA loans, federal student loans, SBA loans, federal taxes or any
       Revised 10-10- lien owed to the U.S. government). A borrower who is listed on the HUD LDP &
08                    GSA Lists is ineligible for financing. This list can be checked & verified within
                      the FHA Connection. The loan file must be documented with LDP/GSA
                      computer printouts that these have been checked and cleared and identified.

CONSTRUCTION TO          Not applicable
PERM
4506-T                   Required for all loans. Most recently filed two years of IRS tax
Revised 8/2009           return transcripts must be obtained and validate filed earnings.
                     Refer to Underwriting Bulletin 2009-32 for guidance.
CREDIT REPORT        Non-Credit Qualifying and Credit-Qualifying:
REQUIREMENTS AND       A credit report is required in order to verify the borrower's credit score(s)
CREDIT SCORES          A residential mortgage credit report (RMCR) or tri-merged report
    Revised 11-17-09   conforming to all agency requirements is required.
                       All available credit scores must be entered into FHA Connection

                         Minimum credit score. (Both Manual & AUS TOTAL Scorecard underwriting):
                           640 for all loans (regardless of loan amount or number of units)
ADVERSE CREDIT           Not applicable
POLICY
AGE OF APPRAISAL            The appraisal is valid for 120 days for existing construction and new
AND CREDIT                  construction. If the appraisal has expired, a new report must be ordered.
DOCUMENTS                   Recertifications are not allowed. The DE Underwriter can extend the
Revised 1-11-10             expiration date by 30 days to allow for minor delays in closing.
                           Credit documents should be no older than 90 days to the date of closing
                           for existing properties and 120 days for new construction.
ESCROWS                  Required for all loans, regardless of LTV.

BUYDOWNS                 Ineligible
  Revised 2-18-08


                                                     8                                 Revised 10-4-10
STREAMLINE REFINANCE GOVERNMENT LENDING PROGRAM - FHA Fixed Rate and ARMS

PREPAYMENT                             Not Allowed
PENALTY
POWER OF                               Eligible to meet EverBank standards.
ATTORNEY
ASSUMABLE                              Fully assumable




This information is provided as information for wholesale brokers only and may not be copied or distributed to customers or potential customers. This information is
not an advertisement as defined by section 226.2(a)(2) of Regulation Z.


                                                                                   9                                                    Revised 10-4-10
STREAMLINE REFINANCE GOVERNMENT LENDING PROGRAM - FHA Fixed Rate and ARMS

                           PURCHASE CALCULATION WORKSHEET
                                              Effective April 5, 2010

Lesser of Sales Price or Appraised Value                                   ____________________

Required Adjustments (+ or -) *                                            ____________________

Mortgage Basis                                                             ____________________
Mortgage Basis x 96.5%                                                     ____________________
2.25% UFMIP x Mortgage Basis                                               ____________________

Mortgage with Financed UFMIP                                               ____________________

*Adjustments made for eligible repairs as required by the appraisal, seller
concessions and/or inducements to purchase.


                             6% SELLER CONTRIBUTION CALCULATION


Contract Sales Price                                                          ____________________

6% of Contract Sales Price                                                    ____________________

Total Seller Contribution                                                     ____________________

Excess Contribution                                                           ____________________




UNDERWRITER TO FILL IN THE FOLLOWING (All must be completed):
  Required Investment (+/-). (12a on old MCAW)                     $
  Current Housing Expense (Current prior to closing)               $
  Earnest Money Deposit                                            $
  Gift Funds (Regardless if received "Prior To" or "At Closing"    $
  Total Verified Asset including Gift Funds                        $
  Borrower Closing Costs                                % and      $
  Seller Closing Costs                                  % and      $

                   ** All data must exactly match the information keyed into Desktop Underwriter (DU) **




                                                              10                                      Revised 10-4-10
STREAMLINE REFINANCE GOVERNMENT LENDING PROGRAM - FHA Fixed Rate and ARMS

                    RATE AND TERM REFINANCE MAXIMUM                                                                2009
                              WORKSHEET #1
    1-A       APPRAISED VALUE

$             $                                    Appraised Value


x                 97.75%                           Factor 97.75% ML 2008-40


=             $                                    1-A Calculation for Max Loan



    1-B       EXISTING DEBT PLUS ALLOWABLE ADDITIONAL ITEMS

                                  Principle balance on existing first lien + prepayment penalties + up to
                                  one month monthly MIP + 30 days interest charged by servicing lender
    $
                                  for the current month + late charges + escrow shortgages (ML 2005-43
                                  and 2008-40)

                                  MIP Refund, if applicable
    -
                                  Allowable borrower-paid closing costs
    +
                                  Property-related liens for acquisition, repair or rehabilitation or any other
    +                             property liens that are seasoned at least 1 year
                                  Repairs required by the appraiser
    +
                                  Prepaid Expenses (Per diem interest to end of month on new loan +
    +                             flood/hazard insurance deposits + real estate tax deposits)
                                  Reasonable Discount Points
    +
          $                       Maximum Mortgage BEFORE UFMIP
    =

                           MAXIMUM MORTGAGE BEFORE ADDING UFMIP IS
                                   LOWEST OF (1 - A) OR (1 - B)

UNDERWRITER TO FILL IN THE FOLLOWING (All must be completed):
    Required Investment (+/-). (10h on old MCAW)                          $
    Current Housing Expense (Current prior to closing)                    $
    Gift Funds (Regardless if received "Prior To" or "At Closing"         $
    Total Verified Asset including Gift Funds                             $


                    ** All data must exactly match the information keyed into Desktop Underwriter (DU) **




                                                                    11                                            Revised 10-4-10
STREAMLINE REFINANCE GOVERNMENT LENDING PROGRAM - FHA Fixed Rate and ARMS

               FHA Streamline Refinance With Appraisal Worksheet
                                               Revised 2-3-10

#1 Maximum Mortgage Worksheet - Use the lower of method A or B
A
                               Outstanding Principal balance on existing first lien + interest
                               charged by servicing lender for current month (delinquent interest, late
$                              charges and escrow shortages may NOT be included)
                               UFMIP Refund, if applicable
-
                               Closing Costs and Prepaid Items to establish escrow accounts
+
                               Maximum Mortgage without Upfront MIP
=
                               New UFMIP
+
                               New Maximum Mortgage with Upfront MIP
=
B
                               97.75% of Appraised Value
$
                               New UFMIP
+
                               New Maximum Mortgage
=

NOTE: DISCOUNT POINTS MAY NOT BE INCLUDED IN THE NEW MORTGAGE. IF THE BORROWER HAS
AGREED TO PAY DISCOUNT POINTS, THE LENDER MUST VERIFY THE BORROWER HAS THE ASSETS TO PAY
THEM ALONG WITH ANY OTHER FINANCING COSTS THAT ARE NOT INCLUDED IN THE NEW MORTGAGE

# 2 Net Tangible Benefit (NTB) to Borrower
Which NTB is provided to the borrower by this transaction?
     Reduction in Term (Note: Must be underwritten and closed as a no cash-out refinance)
     ARM to Fixed Rate - 1/1 ARMs, new rate cannot be more than 2% above current rate
                   - 3/1, 5/1, 7/1 ARMS, new total PITIA cannot increase > 20%
     Reduction in Total Mortgage Payment - the new total mortgage payment must be at least 5%
     lower than the total mortgage payment for the mortgage being refinanced (show calculation)

     Old PITIA =___________New PITIA =____________________

NOTE: If a NTB cannot be provided to the borrower the loan must be fully-credit qualified

#3 UNDERWRITER TO FILL IN THE FOLLOWING (All must be completed):

Required Investment (+/-). (10h on old MCAW):                     $_______________________
Current Housing Expense (Current prior to closing):               $_______________________
Gift Funds (Regardless if received “Prior To” or “At Closing”):   $_______________________
Total Verified Asset including Gift Funds:                        $_______________________

                                                     12                                 Revised 10-4-10
STREAMLINE REFINANCE GOVERNMENT LENDING PROGRAM - FHA Fixed Rate and ARMS

                   FHA Streamline Refinance Without an Appraisal
                                               Revised 1-11-10


#1 Maximum Mortgage Worksheet

                            Outstanding Principal balance on existing first lien + interest charged
                            by servicing lender for current month (delinquent interest, late charges
$                           and escrow shortages may NOT be included)

                            UFMIP Refund, if applicable
-
                            Maximum Mortgage without Upfront MIP
=
                            New UFMIP
+
                            Maximum Mortgage with Upfront MIP
=

# 2 Net Tangible Benefit (NTB) to Borrower

Which NTB is provided to the borrower by this transaction?

     Reduction in Term (Note: Must be underwritten and closed as a no cash-out refinance)
     ARM to Fixed Rate - 1/1 ARMs, new rate cannot be more than 2% above current rate
                         - 3/1, 5/1, 7/1 ARMS, new total PITIA cannot increase > 20%
     Reduction in Total Mortgage Payment - the new total mortgage payment must be at
     least 5% lower than the total mortgage payment for the mortgage being refinanced
     (show calculation)

     Old PITIA =_________________               New PITIA =____________________

NOTE: If a NTB cannot be provided to the borrower the loan must be fully-credit qualified

#3 UNDERWRITER TO FILL IN THE FOLLOWING (All must be completed):

Required Investment (+/-). (10h on old MCAW):                     $_______________________
Current Housing Expense (Current prior to closing):               $_______________________
Gift Funds (Regardless if received “Prior To” or “At Closing”):   $_______________________
Total Verified Asset including Gift Funds:                        $_______________________




                                                      13                               Revised 10-4-10

								
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