B-2 Jumbo Guidelines by shuifanglj

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									  PROVIDENT BANK MORTGAGE - JUMBO FIXED RATE, 5/1, 7/1 & 10/1 LIBOR ARM PRODUCTS
                             Jumbo Fixed Rate            Jumbo 5/1 Libor Arm                   Jumbo 7/1 Libor Arm                   Jumbo 10/1 Libor Arm

1. Product Description              Conventional
                                    Jumbo Fixed Rate               Available                            Available                           Available
For Loan Amts = <                   15 & 30 year
$750,000 LP must be run.            Fixed
Minimum loan Amt                    Fully amortizing
$417,001
2. Product Codes                15 Yr. Jumbo Fixed              5/1 Jumbo Libor Arm                  7/1 Jumbo Libor Arm                    10/1 Jumbo Libor Arm
                                (JF15A )                        2.25% Margin (JA51A)                 2.25% Margin (JA71A )                  2.25% Margin
                                30 Yr. Jumbo Fixed                                                                                          (JA101A)
                                (JF30A )



3. Index                                               London interbank offered rate for twelve month United States dollar-denominated deposits, as published in the
                                    N/A
                                                       Wall Street Journal (Libor)
4. Interest Only Option             N/A                                                                    N/A
5. Margin                           N/A                                                                   2.25%
6. Annual/Adjustment                N/A                                                                     2%
Cap
7. Life Cap                         N/A                                                                     5%




Provident Bank Mortgage Jumbo Fixed Rate, 5/1, 7/1, 10/1 Libor Arms Guidelines                                                                               1
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  PROVIDENT BANK MORTGAGE - JUMBO FIXED RATE, 5/1, 7/1 & 10/1 LIBOR ARM PRODUCTS
                               Jumbo Fixed Rate                   Jumbo 5/1 Libor Arm                    Jumbo 7/1 Libor Arm                   Jumbo 10/1 Libor Arm

8. Rate At Adjustment                                                    The initial rate is in                The initial rate is in effect              The initial rate is in
                                                                         effect for 60 months.                 for 84 months. The first                   effect for 120 months.
                                                                         The first interest rate               interest rate adjustment is                The first interest rate
                                                                         adjustment is subject to              subject to the life cap;                   adjustment is subject to
                                                                         the life cap; thereafter, a           thereafter, a 2% annual                    the life cap; thereafter, a
                                                                         2% annual adjustment                  adjustment cap begins                      2% annual adjustment
                                                                         cap begins with the                   with the second                            cap begins with the
                                         N/A                             second adjustment.                    adjustment.                                second adjustment.
                                                                         Rate is equal to the note             Rate is equal to the note                  Rate is equal to the note
                                                                         margin plus index                     margin plus index rounded                  margin plus index
                                                                         rounded to the nearest                to the nearest .125%.                      rounded to the nearest
                                                                         .125%. Subject to                     Subject to annual live                     .125%. Subject to
                                                                         annual/life caps.                     caps.                                      annual/life caps.



9. Conversion Option                                                                              N/A
10. Conversion Fee                                                                                N/A
11. Wholesale Broker      Complete and accurate loan files must be received within the required delivery time frame as posted on the daily rate sheets.
Delivery                          30-day lock loans must be delivered within 5 calendar days from date of lock.
                                  45-day lock loans must be delivered within 10 calendar days from date of lock.

12. Temporary
                                                                                              NOT AVAILABLE
Buydowns
13. Qualifying Rate and   Qualifying Rate                      Qualifying Rate
Ratios                             All eligible mortgage                5/1 Arm Qualification is based on the higher of the fully indexed rate (Index plus Margin) or the
                                   products qualified at                initial note rate, not to exceed the start rate plus lifetime cap.
                                   Note rate using the fully            7/1 & 10/1 Qualification is based on the fully amortizing Note Rate.
                                   amortized payment of
                                   principal, interest,
                                   taxes, and insurance
                                   (PITI).




Provident Bank Mortgage Jumbo Fixed Rate, 5/1, 7/1, 10/1 Libor Arms Guidelines                                                                                              2
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  PROVIDENT BANK MORTGAGE - JUMBO FIXED RATE, 5/1, 7/1 & 10/1 LIBOR ARM PRODUCTS
                              Jumbo Fixed Rate                  Jumbo 5/1 Libor Arm                    Jumbo 7/1 Libor Arm                   Jumbo 10/1 Libor Arm

Qualifying Cont.             Ratios                          Ratios
                                 Back DTI Ratio: 40%                   Back DTI Ratio: 40%
                                 Occupant Borrower’s                   Occupant Borrower’s Ratio w/ Non-Occupant Co-Bwr: 40% (Max 70% LTV)
                                 Ratio w/ Non-Occupant
                                 Co-Bwr: 40% (Max
                                 70% LTV)




14. Types of Financing   - Purchase Mortgages
                         - Rate and Term Refinance
                                  There is no minimum seasoning requirement.
                                  The transaction must meet all applicable continuity of obligation requirements.

                                  The LTV is based on the current appraised value, regardless of the length of ownership.
                                  Proceeds from a rate/term refinance may be used to payoff the following:
                                      o Principal balance of an existing first mortgage lien, regardless of age,
                                      o Related closing costs, discount points, pre paids, and/or
                                      o Subordinate mortgage liens that have been seasoned for at least one (1) year. For a junior lien that is an equity line of credit, the
                                           seasoning requirement shall be applied to the date of the most recent draw against the equity line unless the draws were less than
                                           $2,000 (the total draws cannot exceed a total of $2,000 in the last 12 months).




Provident Bank Mortgage Jumbo Fixed Rate, 5/1, 7/1, 10/1 Libor Arms Guidelines                                                                                        3
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                                   If a subordinate lien (including equity lines) is to be paid of in the refinance transaction, it must be seasoned for at least one (1) year,
                                   otherwise, the transaction will be considered a “cash-out” refinance and not eligible as a rate term refinance. This includes, but is not
                                   limited to, home improvement liens evidenced by Mechanics’ lien on the title.
Types of Financing Cont.           If secondary financing is not seasoned, it may be included in the refinance if the second lien was incurred at the original purchase of the
                                   property (evidenced by a copy of the final HUD 1 from the original purchase)
                                   The borrower cannot receive more than the following in cash at closing:
                              1.   Loan amounts <= $1,000,000 will be limited to two thousand dollars ($2,000), OR
                              2.   Loan amounts > $1,000,000 will be limited to five thousand dollars ($5,000)
                                   Spousal Buyouts are allowed and are treated as rate/term refinance transactions under the following conditions:
                                   1. The property must be the borrowers primary residence,
                                   2. The property must be one (1) unit property,
                                   3. A copy of the divorce decree or settlement agreement must be provided as verification of the terms of the buyout,
                                   4. The borrower cannot receive any cash back at closing, and
                                   5. Payoff to the spouse must be reflected on the HUD-1.


                              Property Listed for Sale
                              PBM will not provide financing on any refinance transaction secured by a property:
                                 Currently listed for sale, or
                                 Listed for sale within the six months prior to the loan application

15. Maximum Loan           Maximum Loan Amount
Amount                           $2,000,000

                           Minimum Loan Amount
                                  $417,001




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  PROVIDENT BANK MORTGAGE - JUMBO FIXED RATE, 5/1, 7/1 & 10/1 LIBOR ARM PRODUCTS
                             Jumbo Fixed Rate          Jumbo 5/1 Libor Arm             Jumbo 7/1 Libor Arm   Jumbo 10/1 Libor Arm

16. Loan Amount and      Primary Residence – Purchase and Rate/Term Refinance/Cash Out
LTV Limitations          Second Home – Purchase and Rate/Term Refinance

                                         PRIMARY RESIDENCE – PURCHASE AND RATE/TERM REFINANCE



                                         Single Family Detached or Attached, PUD or Condo*
                                                  Primary Residence Purchase and Rate/Term
                               Loan Amount               Max.                         Max.                   Loan
                                 1-2 Units               LTV                          CLTV                   Score
                                   Up to                 75%                          75%                    740
                                $1,000,000               70%                          70%                    720
                                *$1,500,000              70%                          75%                    760
                                                         65%                          70%                    740
                                $2,000,000               55%                          65%                    760

                                    •   *Condo’s maximum loan amount is $1,000,000.
                                    •   12 month reserve requirement




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                             Jumbo Fixed Rate           Jumbo 5/1 Libor Arm           Jumbo 7/1 Libor Arm         Jumbo 10/1 Libor Arm




                                                          PRIMARY RESIDENCE – Cash Out
                                           Single Family Detached or attached PUD or Condo*
                                                                   Primary Residence Only
                                                Max.         Max.             Loan
                           Loan Amount                                                       Number of units      **Max Cash Out
                                                LTV          CLTV             Score
                          $1,000,000            65%           65%              760                 1           The Lesser of $250,000
                                                                                                                 or 50% of the loan
                          $1,500,000            60%          60%               760                 1                  amount
                          $2,000,000            55%          55%               760                 1

                                       •   *Condo Maximum loan amount is $1,000,000 and maximum cash out may not exceed $100,000
                                           including paid debts, unseasoned subordinate financing and cash in hand.
                                       •   12 month reserve requirement. Cash out may not be used to meet reserve requirement.
                                       •   **Maximum cash in hand is limited to $100,000
                                       •   No Cash out on Second Homes




Provident Bank Mortgage Jumbo Fixed Rate, 5/1, 7/1, 10/1 Libor Arms Guidelines                                                          6
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                             Jumbo Fixed Rate         Jumbo 5/1 Libor Arm             Jumbo 7/1 Libor Arm         Jumbo 10/1 Libor Arm




                                                    Second Home Purchase Rate/Term Refinance
                                         Single Family Detached or attached PUD or Condo*
                                             Max.          Max.               Loan
                           Loan Amount                                                         Number of units   Required Reserves
                                             LTV           CLTV               Score
                           $1,000,000        75%            75%                740                   1              12 months
                                             70%            70%                720
                           $1,500,000        70%            70%                760                   1              12 months
                                             60%            70%                740
                           $1,500,000        65%            75%                760                   1              12 months

                           $2,000,000         55%           65%                760                   1              12 months

                          * Condos limited to loan amounts of $1,000,000

17. Secondary Financing


                                                                   Allowed per Agency guidelines




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                              Jumbo Fixed Rate                   Jumbo 5/1 Libor Arm                   Jumbo 7/1 Libor Arm                   Jumbo 10/1 Libor Arm

18. Property Types       Eligible Property Types
                                   Single Family Residence
                                   Condominium – Warrantable only
                                   Site Condominium
                                   Planned Unit Development (PUD)

                         Ineligible Property Types
                                   Assisted Living Projects
                                   Cantilevered Property
                                   Common Interest Apartments
                                   Condo-Hotel
                                   Condominium project with pending structural litigation
                                   Cooperative
                                   Houseboats
                                   Investment Properties
                                   Manufactured Home
                                   Mixed use property
                                   Mobile Home
                                   Multi-family dwelling with 2 or more units
                                   Multi-family condominium dwelling with ownership of >1 unit evidenced by a single deed and mortgage (includes lock-out units)
                                   Projects with non-incidental business operations owned or operated by the Homeowner Association such as, but not limited to, a
                                   restaurant, spa, health club, etc.
                                   Property or project with pending structural litigation. Non-structural litigation may be considered on a case-by-case basis.
                                   Property that restricts the owner’s ability to occupy the unit, have mandatory rental pools or guaranteed rent-backs.
                                   Property that represents a legal, but Non-Conforming use if zoning regulations prohibit rebuilding the improvements to current density in
                                   the event of full or partial destruction.
                                   Property without full kitchen
                                   Non-warrantable condominium
                                   Planned Unit Development (PUD) project with pending structural litigation
                                   Property with more than 10 acres
                                   Property without full utilities installed to meet all local health and safety standards
                                    - Continuing supply of potable water
                                    - Public sewer or certified septic system
                                    - Public electricity
                                    - Natural or LP gas




Provident Bank Mortgage Jumbo Fixed Rate, 5/1, 7/1, 10/1 Libor Arms Guidelines                                                                                        8
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  PROVIDENT BANK MORTGAGE - JUMBO FIXED RATE, 5/1, 7/1 & 10/1 LIBOR ARM PRODUCTS
                                Jumbo Fixed Rate                   Jumbo 5/1 Libor Arm                Jumbo 7/1 Libor Arm              Jumbo 10/1 Libor Arm

                                      Property zoned and used for commercial or industrial purposes
                                      Tax-sheltered syndicate
                                      Time share units/projects
                                      Unimproved land
                                      Working farm, ranch or orchard
                                      Hobby farms
                                      Hotel Condominium
                                      New construction homes purchased through auction
                                      Log, earth or dome homes.

                           Ineligible Transactions
                                     New Construction homes purchased through auctions
                                     Property Flip transactions
                                     Properties with resale/deed restrictions


19. Occupancy                         Primary Residence and Second Home
20. Geographic
Locations/Restrictions                California only
21. Assumptions                      Not Permitted                       Not Permitted
22. Escrow Waivers         Permitted
23. Underwriting           Investor Approval required on all loans. Branch to underwrite file and then submit to Corporate for final review and submission to
                           Investor.
                                     LP to be run on all Loan =< $750,000.

                                      Manual Underwrite is required for loan amounts > $750,000



24. Documentation Types                   •    Full Income


25. Borrower Eligibility   Eligible
                                      U.S. Citizen



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                                    Permanent Resident Aliens
                                       - Provide Alien Registration Card
                                       - Must provide valid Social Security number
                                    Non-Permanent Resident Alien
                                       - Must provide a valid Social Security number
                                       - Must have a minimum two-year history of residence, credit, and employment in the U.S.
                                       - Must provide documentation to support that the Borrower is eligible to work in the U.S. as evidenced by an unexpired
                         .               Employment Authorization Document (EAD) issued by the United States Citizenship and Immigration Services (USCIS). For
                         .               further information, see www.uscis.gov.
                                                    ~ If the authorization for temporary residency status will expire within one year and a prior history of residency status
                         .                            renewals exist, continuation may be assumed. If there is no prior renewals, the likelihood of renewal must be
                                                      determined based on information from USCIS
                                                    ~ Borrowers sponsored by a specific employer do not need an EAD. A valid passport, a letter from the                        .
                         employer/sponsor and an I-94 or I-797 form proving they may work in the U.S. are acceptable in lieu of the EAD.
                                                    ~ A Social Security card may not be used as evidence of eligibility of employment; the USCIS EAS must be used.
                                          -    An individual classified under Diplomatic Immunity, Foreign Nationals, Temporary Protected Status, Deferred Enforced
                                               Departure or Humanitarian Parole is not eligible
                                    First Time Homebuyer
                                       - Primary Residence
                                        - For all loans, verification of 12 months rental payments is required. The loan file must contain 12 months cancelled checks or .
                         bank statements to evidence eligibility for mortgage/housing history for the loan program under which the loan is submitted.                  .
                         Written verification of verification via the credit report is not permitted. Direct written verification of rent is acceptable in lieu of cancelled checks
                         when the landlord is a large professional management company.
                                       - First-Time Homebuyers require 12 months reserves
                                       - Non-occupant Co-Borrower, guarantor, and co-signor
                                       - An Established relationship with the Borrower exist
                                       - A party with an interest in the property sales transaction (including but not limited to the builder, property seller, or real estate .
                         broker) is not eligible as a non-occupant Co-Borrower, guarantor, or co-signor.
                                       - Primary residence
                                       - A non-occupant Co-Borrower, guarantor, or co-signor must provide verification of income
                                       - Qualifying total debt ratio for the occupant borrower may not exceed 43%
                                       - Refer to Provident Bank Mortgage Underwriting Guidelines for complete qualification requirements.
                                    Trust Agreements
                                       Living Revocable Trusts only




Provident Bank Mortgage Jumbo Fixed Rate, 5/1, 7/1, 10/1 Libor Arms Guidelines                                                                                             10
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                         Ineligible
                                   Foreign National


26. Credit               Refer to # 16 Loan Amount and LTV Limitations for Credit Score requirements
                         Minimum Tradeline Requirements
                         The credit report must contain a minimum number of tradelines, sufficient seasoning and the minimum required credit score applicable.
                         An acceptable credit report must satisfy one of the following option:
                         Option 1
                                   The credit report contains a total of at least three (3) open non disputed tradelines; one (1) of which must be a notn-disputed installment or
                                   mortgage tradeline,
                                   Each of the three must be open for at least 24 months, and
                                   Each of the three must be updated within the last six months.

                         Option 2
                                    The borrow must have a credit history of at least five (5) years,
                                    The credit report must contain at least five non disputed tradelines (open, paid or closed); on of which must be a non disputed installment
                                    or mortgage tradeline (open, paid or closed),
                                    Individual tradelines may be established for less than a five year period, and
                                    The tradelines being evaluated in Option 2 must have had activity within the most recent five year period.

                         Authorized user accounts may not be used to meet the minimum tradeline requirements.


                         Housing Payment History
                                 0 x 30 mortgage/rental Delinquency in the past 24 months
                                 Subject mortgage must be current on delivery

                         Paying off privately held mortgage must be documented with 12 months cancelled checks or bank statements.




                         Bankruptcy/Foreclosure/Deed-in-Lieu/Short Sale
                                 None in past 5 years




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                                   Measured by discharge or dismissal date

                         The borrower must have re established a satisfactory credit history and demonstrate the ability to manage his/her financial affairs since the time of
                         the discharge.
                         The borrower must show a re established satisfactory credit history as follows:
                                   Minimum four credit references (must be traditional credit references and one must be housing related),
                                   At least three credit references must have been active 24 months before application and all accounts must be current as of the loan
                                   application,
                                   No more than 1 X 30 days lates on installment or revolving debt in the 24 months before application,
                                   No 60 + days late since discharge,
                                   No past due housing since discharge,
                                   No new judgments or collection since discharge


                         Payoff vs. Paydown
                         Accounts may not be “paid down” to 10 months or less to allow the Borrower to qualify. Installment or Mortgage accounts must be paid in full.
                         Payoff of revolving accounts in order to qualify the Borrower is not allowed

                         Collections, Judgments and Charge-offs
                         All judgments, charge offs and collections must be paid off at closing
                         All garnishments and liens must be paid in full prior or at closing
                         Letter of explanations are required.
                         Gifts may NOT be used to pay off judgments, charge offs, collections, garnishments or liens.

                         Conversion of a Primary Residence to a Second Home
                                 If the current primary residence is being converted to a second home, both the current and proposed mortgage payments must be used to
                                 qualify and reserves of six (6) months PITI must be documented for the conversion property, in addition to the reserve requirement for the
                                 proposed mortgage.




                         Conversion of a Primary Residence to an Investments Property =>30% Equity
                                 Follow current Agency guidelines in addition to:




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                                   The borrower has at least two (2) years experience as a landlord as evidenced by two (2) years tax returns and,
                                   Reserves of six (6) months PITI must be documented for the conversion property, in addition to the reserve requirement for the proposed
                                   mortgage.
                                   If current residence is a two to four (2 – 4) unit primary residence that will be converted to an investment property it is required that the
                                   property meet the 30% equity requirement to utilize the rental income from ANY of the property’s units, regardless if the units were
                                   previously occupied by the borrow or not.

                         Conversion of Primary Residence to Investment Property < 30% equity
                                 Follow current Agency guidelines in addition to:
                                 Reserves of six (6) months must be documented for the conversion property, in addition to the reserve requirement for the proposed
                                 mortgage.
                                 Borrowers with a current two to four (2-4) unit primary residence that will be converted to an investment property to meet the 30%
                                 required equity position to utilize the rental income from ANY of the property’s units, regardless of the units were previously occupied by
                                 the borrow or not.

27. Income Analysis      Verbal Verification of Employment

                         A verbal verification of employment is required for all borrowers. This policy applies to all income types with the exception of passive income.
                                   For salaried borrowers, the verbal verification of employment must be completed within 24 hours prior to funding.
                                   For self-employed borrowers, the verbal verification of employment must be completed within 3 days prior to note date.
                                   For military income, a military Leave and Earnings Statement dated within 30 days prior to note date is acceptable in lieu of a verbal
                                   verification of employment.

                         Employment by relative or transaction participants

                         If the borrower is employed by a relative, a closely held family business, the property seller, real estate agent, or any party to the real estate
                         transaction, the following documentation must be obtained:
                                    Borrower’s signed and completed personal federal income tax returns for the most recent two-year period plus a signed 4506t form, and
                                    Verification of Employment form (VOE) and
                                    W-2’s for the most recent two tax years.

                         Current income reported on the VOE or pay stub may be used if it is consistent with W-2 earnings reported on the tax returns. If the tax returns do
                         not include W-2 earnings or income is substantially lower than the current VOE or pay stub, further investigation is needed to determine whether
                         income is stable.




Provident Bank Mortgage Jumbo Fixed Rate, 5/1, 7/1, 10/1 Libor Arms Guidelines                                                                                          13
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                         Self-Employed Borrowers

                         All self-employed Borrowers are required to provide copies of signed individual (and business if appropriate) tax returns including all applicable
                         schedules for the previous two years. A signed 4506-T is also required. Signed Year-to-date P & L and Balance Sheet are also required and should
                         not be dated more than 120 days of the loan closing date. However P & L and Balance sheet are not required if the LTV/CLTV is 65% or less.

                         If a borrower is self-employed and self-employed income is not used to qualify, the borrower’s individual federal tax returns must be obtained. If a
                         business loss is reported on the borrower’s individual federal tax returns, the Underwriter may require additional documentation in order to fully
                         evaluate the impact of a business loss on the income used for qualifying.


                         Child Support, Alimony or Maintenance Income

                         In order to be used as income, alimony, child support or separate maintenance payments the following must be obtained:
                                    Evidence the borrower has received the total court ordered amount for the most recent three months, and
                                    Copy of signed court order reflecting the payor’s obligation for the previously 12 months, or
                                    Copy of the signed court order reflecting the payor’s obligation for the previous six to 12 months if the monthly income does not exceed
                                    30% of the borrower’s qualifying income.

                         Income from alimony, child support or separate maintenance payments may be considered qualifying income if:
                                  The documentation shows that the payor was obligated to make payments to the borrower for the most recent 12 months and is obligated
                                  to make payment to the borrower for the next three years, or
                                  The payor was obligated for less than 12 months but not less than six months and if the amount of the monthly payment does not exceed
                                  30% of the borrower’s qualifying income.

                         Please note: Income cannot be considered for qualifying if the payor has been obligated to make payments for less than six months, the payments
                         are not for the full amount or the payments are not received on a consistent basis.




                         Commission, Bonus, Overtime or Income from a second job




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                         Commission
                         Must have a two year history of receipt to use as qualifying income. To document, obtain all of the following:
                             1. Most recent YTD paystub or salary voucher documenting at least one month of income.
                             2. W-2s and/or 1099s covering the most recent two years.
                             3. Complete signed individual federal tax returns for the most recent two years reflecting at least six months of commission income and a
                                  signed 4506-T.
                             4. Verbal VOE not more than 24 hours prior to funding date.

                         Employee-paid business expenses reflected on the borrower’s tax returns must be deducted from the borrower’s gross commission income when
                         calculating income.

                         Bonus
                         Must have a two year history of receipt to use as qualifying income. To document, obtain all of the following:
                             1. Most recent YTD paystub or salary voucher documenting at least one month of income
                             2. W-2s covering the most recent two years
                             3. Verbal VOE not more than 24 hours prior to the funding date.

                         Overtime, Second Jobs or Additional Job
                         Must have a 2-year history of receipt and be likely to continue for the next 3 years. To document, obtain all of the following:
                             1. Most recent YTD paystub or salary voucher documenting at least one month of income
                             2. W-2s covering the most recent two years
                             3. Verbal VOE not more than 24 hours prior to the funding date.
                         Overtime only: The employer must verify that overtime is likely to continue.

                         Foreign Income
                         Acceptable only if income can be verified on U.S. personal tax returns.

                         Foreign income should be paid in U.S. currency. However, income paid in foreign currency may be considered on a case-by-case basis if it’s
                         converted in U.S. currency.

                         Rental Income
                         Follow Agencies’ published guidelines in calculating and documenting rental income.

                         Rental Income from Departing Residence
                         Follow Standard PBM Underwriting Guidelines




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                         Notes Receivable, Installment Sales and Land Contracts
                         Evidence of receipt for the last 12 months is required, in addition to a copy of the note verifying payment amount and remaining term of at least
                         three years. A 12-month history of receipt must be verified with one of the following:
                               • Bank deposit receipts
                               • Canceled checks
                               • Tax returns.

27. Assets               Seller Contributions
                                  Maximum contribution is 6%
                         Gifts
                                  Gift funds may be used on primary residence and second home.
                                  A minimum down payment of 5% of the value for a primary residence must be paid from the Borrower’s own funds.
                                  Gift are allowed from immediate family only

                         Reserves

                         12 months PITI is required for reserves on the subject property. Must be verified with a current VOD or three (3) months bank statements.
                         Cash from Cash Out transactions may not be used for reserves.

                         Liquid assets verified to meet the reserve requirements may be in the form of:
                                   Cash equivalents (checking, savings, or money market accounts)
                                   100% of vested value of Publically Traded Stocks, Mutual Funds and Government Securities may be used.
                                   Cash surrender value of life insurance (less outstanding loans, if repayment not included in debt ratio calculation)
                                   For borrowers who have reached the required age for non-penalty withdrawal: 70 percent of vested pension, profit sharing, 401K or IRA
                                   (less outstanding loans).
                                   For purchase and rate/term refinance transactions that require at least 20 percent post-closing liquidity, half of the reserves may come from
                                   70 percent of vested pension, profit sharing, 401K or IRA (less outstanding loans) for borrowers who have not reached the required age for
                                   non-penalty withdrawals.
                                   Certain primary residence purchase and rate/term refinance transactions with low LTV allow half of required reserves to come from vested
                                   pension, profit sharing, 401K, or IRA (less outstanding loans) for borrowers who have not reached the required age for non-penalty
                                   withdrawals.
                                   Equity proceeds from the sale of a residence.




Provident Bank Mortgage Jumbo Fixed Rate, 5/1, 7/1, 10/1 Libor Arms Guidelines                                                                                        16
rev. 08/25/2010
  PROVIDENT BANK MORTGAGE - JUMBO FIXED RATE, 5/1, 7/1 & 10/1 LIBOR ARM PRODUCTS
                               Jumbo Fixed Rate                  Jumbo 5/1 Libor Arm                   Jumbo 7/1 Libor Arm               Jumbo 10/1 Libor Arm

                          Ineligible sources of reserves include:
                                    1031 Tax Exchange
                                    Cash on Hand
                                    Cross collateralization
                                    Gifts from unrelated person
                                    Lines of credit on credit cards
                                    Overdraft protection on checking accounts
                                    Pooled funds
                                    Rent with option to buy
                                    Salary advances from employer
                                    Signature loans
                                    Sweat equity
                                    Trade equity
                                    Unsecured borrower funds
                                    Unverified sale of assets
28. Multiple Properties   Multiple Loans to the Same Borrower
Owned/Financed                      Maximum 20% concentration in any one project or subdivision.
                                    A borrower may own a maximum of 4 financed properties on both primary and second home loan transactions.
                                    A borrower may finance a maximum of 4 properties with Provident Bank Mortgage and/or its Investors.
                                    There are no restrictions to the number of properties the Borrower owns free and clear.
                                    New multiple loans must be underwritten simultaneously.
                                    Refer to #23 Underwriting

29. Appraiser             HVCC compliant Appraisal(s) required ordered per PBM requirements.
Requirements
30. Appraisal             Provident Bank Mortgage loan amounts < $1,000,000.
Requirements                       One full appraisal

                          Provident Bank Mortgage loan amounts >$1,000,000 - $2,000,000
                                       -   Two full Appraisal completed by a certified appraiser
                                       -
                                   LTV/CLTV will be based on the lower of the appraised value, the reviewed value, or the sales price.




Provident Bank Mortgage Jumbo Fixed Rate, 5/1, 7/1, 10/1 Libor Arms Guidelines                                                                          17
rev. 08/25/2010

								
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