Audit Checklist Insurance

							                       CLOSED LOAN PURCHASE / BROKER DRAWN DOCUMENTS
                                   FHA / VA AUDIT CHECKLIST
                                           Audit must be completed prior to funding


Borrower:
Loan #:                                                             Prepared by:


 NOTE
    Original Note is endorsed to MetLife Home Loans, a Division of MetLife Bank, N.A.
         Endorsed as either: (i) the appropriate legal name for MLHL OR (ii) the appropriate attorney-in-fact verbiage on the last
          page of the Note as follows:
              o Pay to the order of
                   Without recourse
                   MetLife Home Loans, a Division of MetLife Bank, N.A.
                   (Broker's name as it appears on the closing documents)
                   by: _______________________________________
                       FirstName Last Name, attorney-in-fact
    Case number is correct
    Borrower signed exactly as typed. If VA, name matches Certificate of Eligiblity.
    Signatures on all documents are identical
    Date matches Security Instrument
    Loan amount, interest rate and term matches Underwriting Approval, lock confirmation, TMO, Security Instrument
    P&I is calculated correctly
    First payment date and maturity date correct
    ARM caps, margin, index, and change date correct, if applicable
    Property address matched Security Instrument
    Note addendums attached, as required
             Balloon Rider Addendum
             ARM - caps, margin, index, change date
             Other:
    Correct document
 SECURITY INSTRUMENT
    Certified copy in file
    MOM language and MIN# are included (MERS registered, if not Assignment required)
    Borrowers signed exactly as typed
    Name, loan amount, maturity date, and term matches, Note, Underwriting Approval, lock confirmation, TMO
    Date matches date on Note
    Trustee information correct and lender named as beneficiary
    County information correct
    Notary acknowledgment is completed (signed, dated, stamped)
    Boxes are checked to indicate proper riders attached for recording
             PUD rider
             Condo rider
             1-4 family rider
             Balloon rider
             ARM rider
             Second home rider
             Waiver of Borrower's Rights
             Other:
    Signatures on all documents are identical




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 ASSIGNMENT (if not MERS registered)
    Certified copy of intervening assignment, completed in its entirety
    Closing date matches Security Instrument
    Borrower’s name matches Note, Underwriting Approval, lock confirmation , TMO
    Legal description matches Security Instrument
    Completed witnessed, notarized and assigned to MetLife Home Loans, a Division of MetLife Bank, N.A.
    Execution date and notary date match
    Recording information included
 BUYDOWN AGREEMENT
    Agreement executed by all parties
    Total buydown amount is correct
    Funds are reflected on HUD-1
    Buydown per program guidelines
 SETTLEMENT STATEMENT
    Case number is correct.
    HUD-1 and addendum executed by all borrowers, sellers, and closing agent
    FHA - seller contributions do not exceed 6% of sales price
    No credits to borrowers are reflected on front page 1, other than normal tax pro-rations or others that are
    acceptable. NO LUMP SUM CREDITS.
    Aggregate adjustment is on line 1008 of the HUD-1
    Borrower’s names and current address are reflected on page 1
    Seller's names and current address are reflected on page 1 (N/A for refinance transactions)
    Seller matches seller’s name on title commitment (N/A for refinance transactions)
    Closing Agent name and address listed on page 1 is same agent on title commitment & insured closing letter
    Property address is complete and correct
    Settlement date is completed
    Lender’s name and address reflected
    Loan type, file number, and loan number indicated
    Loan amount consistent with note
    Minimum down payment (investment) is met, if FHA
    Borrower has paid appropriate amount of closing costs as required.
    Borrower has not be charged any non-allowable fees.
    Borrower has not exceeded maximum available cash for closing.
    Proper disclosure of fees reflected-i.e. Third Party Service Provider identified, POC, fee amounts and paid by-see
    Compliance Section of the Policy & Procedures-Section 1
    Correct number of months escrow collected and aggregate adjustment amount is correct
    Payoff of current mortgage lien matches last assignee on the title commitment
 FINAL TRUTH IN LENDING
    Signed and dated by Borrowers at closing

    APR fees included in finance charge agree with APR fees charged on HUD-1
    MI premium disclosed correctly
 MIP / VA Funding Fee
    Verify accuracy of MIP or funding fee on HUD-1
    If no VAFF, confirmation that the veteran is exempt
    Transmittal is in the file
    Renewals set up correctly and disclosed to borrower.



d32d3eb8-17c3-49bf-9a8e-ace28c09a63b.doc                                                                         07-18-2007
                                                                                 Closed Loan Purchase/Broker Drawn Documents
                                                                                                       FHA / VA Audit Checklist
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 TITLE COMMITMENT
     Borrowers name matches legal documents
     Loan amount and legal description matches legal documents
     Exceptions have been addressed and cleared for final policy.
     Title commitment has been signed and dated
     Tax information is included.
     All necessary endorsements have been ordered/obtained
     Wholesale-Closing in Brokers Name: The Title Commitment should reflect the proposed insured as the lender
    named on the closing documents, Its successors and/or assigns (ISAOA).
     Endorsed also to the Secretary of the U.S. Department of Housing and Urban Development or the Veterans Affairs,
    as required.
     Insured Closing Letter issued by a title insurance underwriter is in file; is signed and dated on or before closing date;
    and benefits the lender named on the closing documents and names the settlement agent or title company closing
    the loan.
 SURVEY
    Signed, sealed and dated by surveyor, if applicable
    For refinances, (if applicable) a copy of original survey plus signed affidavit by borrowers
    If survey is not new, confirmation that the old survey is acceptable to the title company (at title company's
    discretion).
    Address and legal description match legal documents
    Easement reflected on survey match title commitment. No encroachments are noted
 HAZARD INSURANCE POLICY
    Property Address agrees with the legal documents
    Coverage amount should be determined as follows:
          1. Compare the insurable value of improvements/structures (as established by the hazard insurer) to the
              principal balance of the mortgage.
                   a. If the insurable value is less than the principal balance, the insurable value is the amount of
                        required coverage.
                   b. If the insurable value is greater than or equal to the principal balance, go to step 2.
          2. Calculate 80% of the insurable value of the improvements/structures.
                   a. If the 80% result is less than or equal to the principal balance, the principal balance is the amount
                        of required coverage.
                   b. If the 80% result is greater than the principal balance, this 80% result is the amount of required
                        coverage
    Effective date of policy must be on or before funding/disbursement date and for the term of one year or more.
    Refinance loans must have a minimum of 90-days remaining in force at the time of closing
    Endorsement request is present changing the mortgagee clause to MetLife Home Loans, a Division of MetLife Bank,
    N.A.
    Paid in full for 1 year- reflected on HUD-1 (if Purchase)-Non escrow account loans will require proof of a 1 year paid
    policy-Installments are NOT acceptable. BINDERS ARE NOT ACCEPTABLE UNLESS STATE LAWS ALLOWS
    Best Key Rating must be "B"+ IV or better, or a Demotech, Inc. rating of "A" or better
    Unless a higher maximum amount is required by state law, the maximum deductible is up to 5% of the face amount
    of the policy
 FLOOD INSURANCE POLICY
    Flood Certificate identified as life of loan
    Confirm that Lender ID 35055 and MLHL's loan number appear on the Flood Certificate
    Confirm property address is correct
    If property is in a Special Flood Hazard Area, confirm property is in a participating community
    Confirm flood insurance disclosure has been provided to borrower if property is in flood zone and properly executed
    Flood Insurance is present if required, with maximum coverage available (required if zone A, A1-A30, AE, AH, AO,
    AR, A99, V, VE, VO, V1-V30)

d32d3eb8-17c3-49bf-9a8e-ace28c09a63b.doc                                                                              07-18-2007
                                                                                                Closed Loan Purchase/Broker Drawn Documents
                                                                                                                      FHA / VA Audit Checklist
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    Endorsement on flood policy request is present changing the mortgagee clause to MetLife Home Loans, a Division
    of MetLife Bank, N.A.
    Unless a higher maximum amount is required by state law, the maximum deductible is $5,000
 NOTICE OF RIGHT TO CANCEL
    Date of transaction is complete and agrees with closing date
    Date Rescission (Notice of Right to Cancel) expires is complete and correct (expires at midnight 3 business days
    after the latter of the execution of the closing documents, final TIL date, or date Notice of Right to Cancel received).
    Borrowers have signed and dated the "receipt" of Notice of Right to Cancel
    Borrowers have signed and dated confirmation section (if applicable to form)
    Separate document for each borrower
 SALES CONTRACT
    Fully executed
    The name(s) of the borrower(s) and seller(s) are correct.
    The property address is the same as the address on the survey and appraisal.
    All changes to the sales contract have been initialed by the borrower and seller
 APPRAISAL
    Property address is correct
    Value is included
    Signed by appraiser
    Signed final inspection with photos, as required
 POWER OF ATTORNEY
    The Power of Attorney states that the Attorney-in-Fact has no financial interest in the transaction (i.e. real estate
    agent, broker)
    (The attorney-in-fact is a person the borrower has selected to execute the documents as attorney-in-fact on behalf of the borrower.)
    The Power of Attorney is revocable (i.e. rescindable) in writing or gives a specific expiration date which survives the
    closing date
    The Power of Attorney irrevocable on the physical or mental disability of the principal (i.e. borrower)
    The closing agent approved the Power of Attorney and ensured the lien position without exception to the Power of
    Attorney
     The Power of Attorney states the purpose of the transaction (i.e., right to purchase or refinance real property)
     The Power of Attorney specific as to the property and complies with state law and allows for the Mortgage Note to
    be enforced in the jurisdiction
     The Power of Attorney has been notarized and includes a notary acknowledgment
     VA only: Has the veteran provided written consent to the specifics of the transaction as evidenced by either A or B
    below?
      A. The veteran has signed both the sales contract AND the initial application, as long as the veteran’s intention to
         obtain a VA loan on the specific property is expressed somewhere in these documents.
         OR
      B. A specific power or attorney or other document signed by the veteran that includes ALL of the following
         elements:
               Entitlement: a clear intention to use all or a specific amount of the veteran’s entitlement.
               Purpose: A clear intention to obtain a loan for purchase, construction, repair, alteration, improvement or
                   refinancing.
               Property Identification: Identifies the specific property.
               Price and Terms – Indicates the sales price, if applicable, or other relevant terms of the transaction.
               Occupancy: Indicates the veteran’s intention to use the property as an owner occupied home or other
                   appropriate VA occupancy requirement.
     VA only: If veteran is on active duty, has an “Alive and Well” statement been obtained or attempted to be obtained
    from the Veteran’s Commanding Officer.
       Not required for VA IRRRL’s
       Must attempt to obtain for a purchase or cash-out refinance; however, if the certification can not be obtained,
         VA will accept documentation that a good faith bona fide effort was made to obtain the certification (i.e.
         contacted home base of deployed veteran, copy of returned e-mail, etc.)
d32d3eb8-17c3-49bf-9a8e-ace28c09a63b.doc                                                                                                   07-18-2007
                                                                             Closed Loan Purchase/Broker Drawn Documents
                                                                                                   FHA / VA Audit Checklist
                                                                                                               Page 5 of 7
    The signature lines on the closing documents are prepared correctly and the attorney-in-fact has signed correctly.




d32d3eb8-17c3-49bf-9a8e-ace28c09a63b.doc                                                                         07-18-2007
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                                                                                                    FHA / VA Audit Checklist
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 TRUST
    The borrower or borrowers must be creator(s) of the trust. The creators of the trust are usually called the Grantor,
    Settlor or Trustor.
    The borrower(s) must be the trustee(s) of the trust (or there must be an approved institutional trustee).
    The trust must be revocable.
    The borrower(s) must be the primary beneficiaries of the trust.
    The trustee(s) must have the authority to borrow money and pledge the trust property as security
    The Trust Agreement has been approved by MLHL National Underwriting Risk Management Department.
    The borrower’s name on closing documents appears exactly as the name appears in the Trust documents.

 LEASEHOLD
    The leasehold agreement has been approved by MLHL National Underwriting Risk Management Department.
 GENERAL DOCUMENTS
    1003 - Handwritten
    1003 - Final (executed by all borrowers)
    Bailee Letter/Agreement (address on collateral package delivery label must match address of warehouse lender)
    Conditions documentation
    Copy of valid, legible photo ID for each borrower
    ECOA
    Escrow Disclosure Statement / Waiver
    Good Faith Estimate
    Goodbye and Hello letter(s)
    IRS 4506T
    Lock confirmation – rate, term and expiration date match Note, Underwriting Approval and TMO
    Name affidavits
    Notice of Assignment, Sale or Transfer of Servicing Rights in file
    Notice of sale to borrower
    Occupancy affidavit
    Pest Inspection, if applicable
    Program disclosure(s) (signed), as required
    State Specific disclosures, if applicable
    Tax information sheet
    W-9, one for each borrower
    Warranty Deed (copy)
    FHA – not all inclusive
           Addendum to Application, pages 1- 4 of HUD 92900A
           Adjustable Rate Mortgage – if applicable
           CAIVRS checked
           Conditional Commitment signed by Underwriter
           Evidence of case transfer to MLHL from the FHA Connection
           For Your Protection: Get a Home Inspection, HUD-92564-CN
           GSA list checked
           Important Notice to Homebuyers
           Informed Consumer Choice Disclosure
           LDP List checked
           MCAW signed by Underwriter, HUD-92900-PUR or HUD-92900-MCAW
           Notice to Homeowner (Re: Assumption of HUD/FHA Insured Mortgage Release of Personal Liability)
    VA – not all inclusive
           Addendum to application, pages 1 and 2 on VA Form 26-1802A
           CAIVRS checked

d32d3eb8-17c3-49bf-9a8e-ace28c09a63b.doc                                                                          07-18-2007
                                                                        Closed Loan Purchase/Broker Drawn Documents
                                                                                              FHA / VA Audit Checklist
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            Certificate of Eligibility
            Interest Rate and Discount Disclosure
            VA Commitment, if approved by VA (VA Form 26-2866A)
            VA Loan Analysis (VA Form 26-6393) signed by Underwriter, or IRRRL Worksheet (VA Form 26-8923)
            VA Partial Entitlement Worksheet
            Report and Certification of Loan Disbursement, VA Form 26-1820, signed by borrowers
            Verification of VA Benefit Related Indebtedness, VA ?form 262-8937
            VA Lender Certification
            Counseling Checklist for Military Homebuyers, VA Form 263-0592
            Veteran’s Statement for Refinance (Old Loan vs. New Loan for IRRRLS)
            Federal Collection Policy notice, VA Form 26-0503
            Debt Questionnaire, VA Form 26-0551
            VA Underwriter Certification
            Veteran’s Certification as to Membership in the Reserves or National Guard




d32d3eb8-17c3-49bf-9a8e-ace28c09a63b.doc                                                                    07-18-2007