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					                                   Section 2.04 - DU Refi Plus™

In This Product   This product description contains the following topics:
Description

                  Overview ........................................................................................................................ 2 
                      Product Summary ..................................................................................................... 2 
                      Features and Benefits .............................................................................................. 4 
                  Related Bulletins ............................................................................................................ 5 
                  Existing Mortgage Eligibility Requirements ................................................................... 6 
                      Existing Investor and Servicer Requirements .......................................................... 6 
                      Ineligible Existing Mortgages .................................................................................... 7 
                      Existing Mortgage Seasoning Requirements ........................................................... 7 
                      Existing Mortgage Payment History Requirements .................................................. 7 
                  Loan Terms .................................................................................................................... 8 
                      Loan Term ................................................................................................................ 8 
                      Minimum Loan Amount ............................................................................................. 8 
                      Maximum Loan Amount............................................................................................ 8 
                      Maximum LTV/TLTV/HTLTV, Primary Residence.................................................... 9 
                      Maximum LTV/TLTV/HTLTV, Second Home ......................................................... 11 
                      Maximum LTV/TLTV/HTLTV, Investment Property ................................................ 13 
                      ARM Parameters .................................................................................................... 15 
                      Interest Only Parameters ........................................................................................ 15 
                      Maximum Number of Financed Properties ............................................................. 15 
                  Eligible Transactions .................................................................................................... 16 
                      Tangible Net Benefit Requirements........................................................................ 17 
                  Secondary Financing ................................................................................................... 18 
                  Geographic Restrictions .............................................................................................. 20 
                  Occupancy/Property Types ......................................................................................... 21 
                  Eligible Borrowers ........................................................................................................ 25 
                  Income ......................................................................................................................... 27 
                  Qualifying Guidelines ................................................................................................... 28 
                  Credit Requirements .................................................................................................... 30 
                  Cash Requirements ..................................................................................................... 33 
                  Contributions by Interested Parties.............................................................................. 35 
                  Mortgage Insurance ..................................................................................................... 36 
                  Documentation Requirements ..................................................................................... 38 
                  Appraisal Requirements .............................................................................................. 39 
                  AUS Submission, Recommendations and Tolerances ................................................ 43 
                      DU Refi Plus Opt Out Option .................................................................................. 46 
                  Workflow ...................................................................................................................... 47 
                  Application Disclosures and Issues ............................................................................. 54 
                  MLCS Loan Setup and Processing.............................................................................. 55 
                  Closing and Loan Settlement Documentation ............................................................. 58 
                      Interest Credits ....................................................................................................... 58 




Section 2.04                                                                                                                   June 10, 2011
DU Refi Plus                                                                                                                    Page 1 of 58
Broker Seller Guide
Overview

Product           The DU Refi Plus™ is a loan program created to support the “Making Home
Summary           Affordable Initiative.” This loan program provides expanded opportunities for
                  borrowers who have demonstrated an acceptable payment history on their Fannie
                  Mae owned or guaranteed mortgage, but have not been able to refinance due to
                  declining property values or an inability to obtain mortgage insurance.

                  Eligible loan products available under the DU Refi Plus loan program include the
                  following:
                  • Agency Fully Amortizing Fixed Rate,
                  • Agency Fully Amortizing 5/1, 7/1 & 10/1 LIBOR ARMs,
                  • Agency Plus Fully Amortizing Fixed Rate, and
                  • Agency Plus Fully Amortizing 5/1, 7/1 & 10/1 LIBOR ARMs.

                  Note: 3/1 LIBOR ARMs, Interest Only (Fixed Rate and ARMs), Agency Affordable
                  Lending (i.e., MyCommunity Mortgages, including the Teacher, HealthCare Worker
                  and Safety 1st loan program) and Texas 50 (a)(6) transactions are NOT eligible.

                  All Agency loans originated under the DU Refi Plus loan program must be processed
                  through Fannie Mae’s Desktop Underwriter (DU) and receive a DU
                  “Approve/Eligible” recommendation. All Agency Plus loans originated under the DU
                  Refi Plus loan program must be processed through SunTrust’s Custom Desktop
                  Underwriter (CDU) and receive a DU “Approve/Eligible” and CDU “Eligible”
                  recommendation.

                  Reference: See the “Loan Terms” topic in Section 2.03: Agency Plus Loan Program
                  of the Broker Seller Guide for a link to the maximum loan amount limits.

                                                                            Continued on next page




Section 2.04                                                                          June 10, 2011
DU Refi Plus                                                                           Page 2 of 58
Broker Seller Guide
Overview, Continued

Product           •   For ALL Agency DU Refi Plus transactions, to ensure that the loan is being
Summary,              originated within the guidelines of the DU Refi Plus loan program, the following
(continued)           checklists are REQUIRED to be completed, placed in the loan file and
                      maintained with the underwriting documents.
                      • DU Refi Plus Loan Program Eligibility Checklist for Conforming Loan Limits
                           and For Current SunTrust Customer(s) (STM to STM) (BRO 0161), and
                      • DU Refi Plus Loan Program Eligibility Checklist – Conforming Loan Limits
                           (Non-STM to STM) (BRO 1385).
                  •   For ALL Agency Plus DU Refi Plus transactions, to ensure that the loan is being
                      originated within the guidelines of the DU Refi Plus loan program, ALL
                      messaging outlined on the SunTrust Custom Underwriting Findings report MUST
                      be reviewed and confirmed.
                  •   If a loan is eligible for the DU Refi Plus loan program as indicated by the DU
                      Findings report or SunTrust Custom Underwriting Findings report and the DU
                      Refi Plus Loan Program Eligibility Checklist for Conforming Loan Limits and For
                      Current SunTrust Customer(s) (STM to STM) (BRO 0161) or the DU Refi Plus
                      Loan Program Eligibility Checklist – Conforming Loan Limits (Non-STM to STM)
                      (BRO 1385), then the loan MUST be processed and closed as a DU Refi Plus.
                  •   If the loan is ineligible for the DU Refi Plus loan program as a result of the DU
                      Refi Plus eligibility checklist or SunTrust Custom Underwriting Findings report,
                      then the loan MUST be resubmitted to DU with the DU Refi Plus Opt Out Option
                      exercised and the loan MUST be processed as a standard limited cash-out
                      (rate/term) refinance transaction.

                      Reference: See the “DU Refi Plus Opt Out Option” subtopic in the “AUS
                      Submission, Recommendations and Tolerances” topic subsequently presented
                      in this product description for additional information regarding DU Refi Plus Opt
                      Out Option.

                  Agency and Agency Plus DU Refi Plus transactions are NOT eligible for Expanded
                  Approval recommendations (regardless of the EA Level), traditional underwriting or
                  processing through Freddie Mac’s Loan Prospector (LP) automated underwriting
                  system.

                  Note: Borrowers who are refinancing an existing SunTrust first mortgage (STM to
                  STM transactions), should be referred to SunTrust’s Loss Mitigation Department (1-
                  800-443-1032, Option #3) to review loan modification options if:
                  • they fall outside of the DU Refi Plus loan parameters outlined in this product
                     description, but are at risk of “imminent default,” AND/OR
                  • the loan transaction receives an Expanded Approval recommendation
                     (regardless of the EA Level).
                  • A risk of “imminent default” may exist when a borrower has suffered a financial
                     hardship that may impact their ability to pay their mortgage.
                  • Borrowers who are refinancing an existing SunTrust first mortgage (STM to STM
                     transactions) who fall outside of the DU Refi Plus loan parameters outlined in
                     this product description, but are NOT currently at risk of “imminent default,”
                     should be referred to SunTrust’s Consumer Direct Department (1-800-330-4684)
                     for further loan processing.

                                                                              Continued on next page



Section 2.04                                                                             June 10, 2011
DU Refi Plus                                                                              Page 3 of 58
Broker Seller Guide
Overview, Continued

Product           References:
Summary,          • See the “Workflow” topic subsequently presented in this product description for
(continued)          workflow procedures for loan referrals to SunTrust’s Loss Mitigation and
                     Consumer Direct Departments.
                  • See the “AUS Submission, Recommendations and Tolerances” topic
                     subsequently presented in this product description for additional information
                     regarding AUS processing.

                  Unless otherwise stated, all guidelines outlined in this product description will apply
                  to both standard Agency and Agency Plus DU Refi Plus transactions.

                  GUIDELINES NOT ADDRESSED IN THIS PRODUCT DESCRIPTION WILL
                  FOLLOW STANDARD AGENCY DU AND AGENCY PLUS GUIDELINES.

                  Reference: See Section 2.01: Agency Loan Programs and Section 2.03: Agency
                  Plus Loan Program of the Broker Seller Guide, for standard Agency DU and Agency
                  Plus guidelines.


Features and      Features and benefits of the DU Refi Plus loan program include the following:
Benefits
                                     Feature                                          Benefit
                      Expanded LTVs up to 105%.                    Provides     financing    opportunities   for
                                                                   borrowers who owe more than their home is
                                                                   worth due to the decline in property values.
                      •   Mortgage insurance (MI) is not           Flexible MI guidelines eliminate the
                          required for transactions where the      requirement for borrowers to purchase new
                          original LTV was 80% or less.            or additional MI coverage on the new loan.

                      •   For transactions where the original
                          LTV was greater than 80%, allows the
                          level of MI coverage in force on the
                          existing mortgage loan.

                          Note: Available for borrowers who are
                          refinancing an existing SunTrust first
                          mortgage ONLY (STM to STM
                          transactions).
                      Fixed Rate, 5/1, 7/1 and 10/1 ARM loan       Allow borrowers to obtain a more stable
                      products available                           mortgage product to ensure long-term
                                                                   homeownership sustainability.
                      AUS eligibility                              Streamlined efficiencies and reduced
                                                                   documentation requirements of AUS
                                                                   processing.




Section 2.04                                                                                      June 10, 2011
DU Refi Plus                                                                                       Page 4 of 58
Broker Seller Guide
Related Bulletins

General           Related bulletins are provided below in PDF format. To view the list of published
                  bulletins, select the applicable year below.

                  •   2011
                  •   2010
                  •   2009




Section 2.04                                                                          June 10, 2011
DU Refi Plus                                                                           Page 5 of 58
Broker Seller Guide
Existing Mortgage Eligibility Requirements

Existing          •   The existing mortgage MUST be a Fannie Mae owned or guaranteed first lien
Investor and          mortgage.
Servicer
Requirements          Note: The existing mortgage must have been delivered to Fannie Mae prior to
                      June 1, 2009.

                  •   When the loan casefile is submitted to DU, DU will determine if the borrower and
                      subject property address on the loan casefile match an existing eligible Fannie
                      Mae loan. A successful match is required in order for DU to evaluate the loan
                      for DU Refi Plus eligibility.

                      Reference: See the “AUS Submission, Recommendations and Tolerances”
                      topic subsequently presented in this product description for additional
                      information regarding the specific messaging issued by DU when a loan casefile
                      is identified as being eligible for the DU Refi Plus loan program.

                  •   Prior to submission to DU, to help determine if the loan is Fannie Mae owned or
                      guaranteed:
                      • Utilize the Fannie Mae Loan Look-Up tool, or

                          Note: A “Match Found” response to the search in the Fannie Mae Loan
                          Lookup tool means that Fannie Mae owns a loan at the address entered in
                          the search. It does not guarantee or imply that the borrower meets all
                          eligibility criteria for the DU Refi Plus loan program.

                      •   Contact Fannie Mae by phone at 1-800-7FANNIE (8 am – 8 pm EST).

                  •   The Fidelity Snapshot may be accessed by a SunTrust associate to confirm if
                      SunTrust is servicing the loan in order to follow guidelines for STM to STM
                      transactions.

                      Note: An Excel spreadsheet titled Fidelity Loan Data Retriever is used to obtain
                      the Fidelity Snapshot. Click here to access the Fidelity Loan Data Retriever
                      spreadsheet.

                      Reference: See the “Workflow” topic subsequently presented in this product
                      description for workflow procedures for obtaining the Fidelity Snapshot.

                                                                              Continued on next page




Section 2.04                                                                             June 10, 2011
DU Refi Plus                                                                              Page 6 of 58
Broker Seller Guide
Existing Mortgage Eligibility Requirements, Continued

Ineligible        Ineligible existing mortgages include the following:
Existing          • Loans delivered to Fannie Mae on or after June 1, 2009,
Mortgages         • Mortgage loans that are subject to any credit enhancement (i.e., full or partial
                       recourse) other than borrower paid mortgage insurance,
                  • Mortgage loans that are currently subject to any outstanding repurchase request
                       from Fannie Mae,
                  • Loans with Pool Insurance,
                  • Reverse mortgage loans,
                  • Second mortgage loans,
                  • Government mortgage loans
                  • Rural Development Guaranteed Rural Housing loans, and
                  • Texas 50 (a)(6).

                  Note: The above ineligibility criteria will be evaluated by either DU or the SunTrust
                  Fidelity Snapshot.


Existing          There are no seasoning requirements on the existing mortgage EXCEPT as outlined
Mortgage          below:
Seasoning         • For SunTrust serviced loans (STM to STM transactions), if the existing loan has
Requirements          a Buyers’ Bonus Mortgage feature, the borrower MUST be beyond the initial six
                      (6) months payment period.

                      Reference: See the “Workflow” topic subsequently presented in this product
                      description for workflow procedures for identifying existing SunTrust serviced
                      (STM to STM) loans that have a Buyers’ Bonus Mortgage feature.

                  Notes:
                  • The existing mortgage must have been delivered to Fannie Mae prior to June 1,
                     2009.
                  • Additional mortgage insurance (MI) company credit overlays may apply
                     regarding seasoning requirements. In all cases, the more restrictive of the MI
                     company guidelines or the guidelines outlined in this product description will
                     apply.

                      Reference: See the “Mortgage Insurance” topic subsequently presented in this
                      product description and Section 1.08a: Mortgage Insurance - DU Refi Plus
                      Requirements of the Broker Seller Guide for additional information.


Existing          Reference: See “Credit History Analysis” subtopic in the “Credit Requirements” topic
Mortgage          subsequently presented in this product description for existing mortgage payment
Payment           history requirements.
History
Requirements




Section 2.04                                                                             June 10, 2011
DU Refi Plus                                                                              Page 7 of 58
Broker Seller Guide
Loan Terms

Loan Term         Agency:
                  Fully Amortizing Fixed Rate: 10-40 years
                  Fully Amortizing 5/1 & 7/1 LIBOR ARMs: 10-30 years
                  Fully Amortizing 10/1 LIBOR ARMs: 15-30 years

                  Agency Plus:
                  Fully Amortizing Fixed Rate: 10, 15, 20 and 30 years
                  Fully Amortizing 5/1, 7/1 & 10/1 LIBOR ARMs: 30 years

                  Note: For Agency and Agency Plus loans originated under the DU Refi Plus loan
                  program, additional MI company credit overlays may apply regarding eligible loan
                  terms. In all cases, the more restrictive of the MI company guidelines or the
                  guidelines outlined in this product description will apply.

                  Reference: See the “Mortgage Insurance” topic subsequently presented in this
                  product description and Section 1.08a: Mortgage Insurance - DU Refi Plus
                  Requirements of the Broker Seller Guide for additional information.


Minimum Loan      Agency:
Amount            • No minimum loan amount.

                  Agency Plus:
                  • $417,001 for one (1) unit properties
                  • $533,851 for two (2) unit properties

                  Notes:
                  • The minimum loan amount is always one ($1) dollar above the conforming loan
                     amount for one (1) and two (2) unit properties.
                  • Two (2) unit properties are only eligible for primary residence transactions.


Maximum Loan      Agency:
Amount            • $417,000 for one (1) unit properties
                  • $533,850 for two (2) unit properties
                  • $645,300 for three (3) unit properties
                  • $801,950 for four (4) unit properties

                  Agency Plus:
                  • Agency Plus loans are available ONLY in high cost areas (as defined by HUD).
                  • The maximum loan amount will vary based on the location of the subject
                     property; however, will NEVER exceed $729,750 for one (1) unit properties and
                     $934,200 for two (2) unit properties.

                      Note: Two (2) unit properties are only eligible for primary residence transactions.

                  Reference: See “Loan Terms” topic located in Section 2.03: Agency Plus Loan
                  Program of the Broker Seller Guide for a link to the maximum loan limits.

                                                                                 Continued on next page


Section 2.04                                                                               June 10, 2011
DU Refi Plus                                                                                Page 8 of 58
Broker Seller Guide
Loan Terms, Continued

Maximum                  Agency:
LTV/TLTV/HTLTV,          Fully Amortizing Fixed Rate: 10-40 years
Primary                  Fully Amortizing 5/1 & 7/1 LIBOR ARMs: 10-30 years
Residence                Fully Amortizing 10/1 LIBOR ARMs: 15-30 years

                         References:
                         • See the “Minimum Loan Amount” and “Maximum Loan Amount” subtopics
                            previously presented in this product description for additional information
                            regarding determining the minimum and maximum allowable loan amounts.
                         • See the “Geographic Restrictions” topic subsequently presented in this product
                            description for additional information on state specific lending restrictions.


     Loan          Product      # of                               LTV/TLTV/HTLTV for DU
    Program                     Units                      Limited Cash-Out (Rate/Term) Refinances

                                                STM to STM               Non-STM to STM              Non-STM to STM
                                                Transactions               Transactions               Transactions
                                                                        (MI NOT REQUIRED            (MI REQUIRED on
                                                                         on Original Loan)            Original Loan)
Agency           Fixed
                                                                1,2,3
                                                                          95%/95%/95%1,3                             1,3
                 Rate, 5/1,      1-4      105%/no max/no max                                         80%/95%/95%
                 7/1 & 10/1
                 ARMs
1
  LTV is the “loan-to-value” of the first mortgage to the value of the property. TLTV is the “total loan-to-value” of the
  first AND second mortgage to the value of the property (if second is HELOC, the outstanding balance is used to
  calculate TLTV). HTLTV is the “HELOC total loan-to-value” of the first AND HELOC second mortgage to the value
  of the property (the total available credit line is used to calculate HTLTV).
2
  There is no maximum TLTV or HTLTV limit for STM to STM DU Refi Plus loan transactions.
3
   Existing subordinate financing MUST be re-subordinated to maintain the first lien priority of the new DU Refi Plus
  mortgage loan. New subordinate financing is NOT permitted in conjunction with the DU Refi Plus loan program.
  See the “Secondary Financing” topic subsequently presented in this product description for additional information
  regarding subordinations.



                                                                                             Continued on next page




Section 2.04                                                                                             June 10, 2011
DU Refi Plus                                                                                              Page 9 of 58
Broker Seller Guide
Loan Terms, Continued

Maximum                  Agency Plus:
LTV/TLTV/HTLTV,          Fully Amortizing Fixed Rate: 10, 15, 20 and 30 years
Primary                  Fully Amortizing 5/1, 7/1 & 10/1 LIBOR ARMs: 30 years
Residence,
                         References:
(continued)
                         • See the Minimum Loan Amount and Maximum Loan Amount subtopics
                            previously presented in this product description for additional information
                            regarding determining the minimum and maximum allowable loan amounts.
                         • See the Geographic Restrictions topic subsequently presented in this product
                            description for additional information on state specific lending restrictions.


     Loan        Product        # of                               LTV/TLTV/HTLTV for CDU
    Program                     Units                      Limited Cash-Out (Rate/Term) Refinances

                                                STM to STM               Non-STM to STM              Non-STM to STM
                                                Transactions               Transactions               Transactions
                                                                        (MI NOT REQUIRED            (MI REQUIRED on
                                                                         on Original Loan)            Original Loan)
Agency         Fixed Rate         1       105%/no max/no max1,2,3         90%/90%/90%1,3,            80%/90%/90%1,3,
Plus
                                                                        Note: For loan amounts    Note: For loan amounts >
                                                                        >      $625,500,   the    $625,500,             the
                                                                        LTV/TLTV/HTLTV       is   LTV/TLTV/HTLTV          is
                                                                        limited             to    limited to 80%/80%/80%.
                                                                        80%/80%/80%.

                                  2       105%/no max/no max1,2,3         75%/75%/75%1,3             75%/75%/75%1,3

Agency         5/1, 7/1 &         1       105%/no max/no max1,2,3         75%/75%/75%1,3             75%/75%/75%1,3
Plus           10/1 ARMs          2       105%/no max/no max1,2,3         75%/75%/75%1,3             75%/75%/75%1,3


1
  LTV is the “loan-to-value” of the first mortgage to the value of the property. TLTV is the “total loan-to-value” of the
  first AND second mortgage to the value of the property (if second is HELOC, the outstanding balance is used to
  calculate TLTV). HTLTV is the “HELOC total loan-to-value” of the first AND HELOC second mortgage to the value
  of the property (the total available credit line is used to calculate HTLTV).
2
  There is no maximum TLTV or HTLTV limit for STM to STM DU Refi Plus loan transactions.
3
   Existing subordinate financing MUST be re-subordinated to maintain the first lien priority of the new DU Refi Plus
  mortgage loan. New subordinate financing is NOT permitted in conjunction with the DU Refi Plus loan program.
  See the “Secondary Financing” topic subsequently presented in this product description for additional information
  regarding subordinations.



                                                                                             Continued on next page




Section 2.04                                                                                              June 10, 2011
DU Refi Plus                                                                                              Page 10 of 58
Broker Seller Guide
Loan Terms, Continued

Maximum                  Agency:
LTV/TLTV/HTLTV,          Fully Amortizing Fixed Rate: 10-40 years
Second Home              Fully Amortizing 5/1 & 7/1 LIBOR ARMs: 10-30 years
                         Fully Amortizing 10/1 LIBOR ARMs: 15-30 years

                         References:
                         • See the Minimum Loan Amount and Maximum Loan Amount subtopics
                            previously presented in this product description for additional information
                            regarding determining the minimum and maximum allowable loan amounts.
                         • See the Geographic Restrictions topic subsequently presented in this product
                            description for additional information on state specific lending restrictions.


     Loan          Product      # of                               LTV/TLTV/HTLTV for DU
    Program                     Units                      Limited Cash-Out (Rate/Term) Refinances

                                               STM to STM                Non-STM to STM               Non-STM to STM
                                               Transactions                Transactions                Transactions
                                                                        (MI NOT REQUIRED             (MI REQUIRED on
                                                                         on Original Loan)             Original Loan)
Agency           Fixed            1      105%/no max/no max1, 2,3         90%/90%/90%1,3              80%/90%/90%1,3
                 Rate, 5/1,
                 7/1 & 10/1
                 ARMs
1
  LTV is the “loan-to-value” of the first mortgage to the value of the property. TLTV is the “total loan-to-value” of the
  first AND second mortgage to the value of the property (if second is HELOC, the outstanding balance is used to
  calculate TLTV). HTLTV is the “HELOC total loan-to-value” of the first AND HELOC second mortgage to the value
  of the property (the total available credit line is used to calculate HTLTV).
2
  There is no maximum TLTV or HTLTV limit for STM to STM DU Refi Plus loan transactions.
3
   Existing subordinate financing MUST be re-subordinated to maintain the first lien priority of the new DU Refi Plus
  mortgage loan. New subordinate financing is NOT permitted in conjunction with the DU Refi Plus loan program.
  See the ”Secondary Financing” topic subsequently presented in this product description for additional information
  regarding subordinations.



                                                                                             Continued on next page




Section 2.04                                                                                             June 10, 2011
DU Refi Plus                                                                                             Page 11 of 58
Broker Seller Guide
Loan Terms, Continued


Maximum                  Agency Plus:
LTV/TLTV/HTLTV,          Fully Amortizing Fixed Rate: 10, 15, 20 and 30 years
Second Home,             Fully Amortizing 5/1, 7/1 & 10/1 LIBOR ARMs: 30 years
(continued)
                         References:
                         • See the Minimum Loan Amount and Maximum Loan Amount subtopics
                            previously presented in this product description for additional information
                            regarding determining the minimum and maximum allowable loan amounts.
                         • See the Geographic Restrictions topic subsequently presented in this product
                            description for additional information on state specific lending restrictions.


     Loan           Product       # of                              LTV/TLTV/HTLTV for CDU
    Program                       Units                     Limited Cash-Out (Rate/Term) Refinances

                                                  STM to STM               Non-STM to STM             Non-STM to STM
                                                  Transactions              Transactions               Transactions
                                                                               (MI NOT               (MI REQUIRED on
                                                                            REQUIRED on                Original Loan)
                                                                            Original Loan)
Agency Plus      Fixed Rate,         1      105%/no max/no max1,2,3         65%/65%/65%1,3            65%/65%/65%1,3
                 5/1, 7/1 &
                 10/1 ARMs
1
  LTV is the “loan-to-value” of the first mortgage to the value of the property. TLTV is the “total loan-to-value” of the
  first AND second mortgage to the value of the property (if second is HELOC, the outstanding balance is used to
  calculate TLTV). HTLTV is the “HELOC total loan-to-value” of the first AND HELOC second mortgage to the value
  of the property (the total available credit line is used to calculate HTLTV).
2
   There is no maximum TLTV or HTLTV limit for STM to STM DU Refi Plus loan transactions.
3
  Existing subordinate financing MUST be re-subordinated to maintain the first lien priority of the new DU Refi Plus
  mortgage loan. New subordinate financing is NOT permitted in conjunction with the DU Refi Plus loan program.
  See the “Secondary Financing” topic subsequently presented in this product description for additional information
  regarding subordinations.


                                                                                             Continued on next page




Section 2.04                                                                                             June 10, 2011
DU Refi Plus                                                                                             Page 12 of 58
Broker Seller Guide
Loan Terms, Continued

Maximum                   Agency:
LTV/TLTV/HTLTV,           Fully Amortizing Fixed Rate: 10-40 years
Investment                Fully Amortizing 5/1 & 7/1 LIBOR ARMs: 10-30 years
Property                  Fully Amortizing 10/1 LIBOR ARMs: 15-30 years
                          References:
                          • See the Minimum Loan Amount and Maximum Loan Amount subtopics
                              previously presented in this product description for additional information
                              regarding determining the minimum and maximum allowable loan amounts.
                          • See the Geographic Restrictions topic subsequently presented in this product
                              description for additional information on state specific lending restrictions.

     Loan      Product      # of                                LTV/TLTV/HTLTV for DU
    Program                 Units                       Limited Cash-Out (Rate/Term) Refinances

                                           STM to STM                 Non-STM to STM                Non-STM to STM
                                           Transactions                 Transactions                 Transactions
                                                                     (MI NOT REQUIRED              (MI REQUIRED on
                                                                      on Original Loan)              Original Loan)
Agency         Fixed         1-4         75%/75%/75%1,2                75%/75%/75%1,2               75%/75%/75%1,2
               Rate,
               5/1, 7/1
               & 10/1
               ARMs
1
  LTV is the “loan-to-value” of the first mortgage to the value of the property. TLTV is the “total loan-to-value” of the
  first AND second mortgage to the value of the property (if second is HELOC, the outstanding balance is used to
  calculate TLTV). HTLTV is the “HELOC total loan-to-value” of the first AND HELOC second mortgage to the value
  of the property (the total available credit line is used to calculate HTLTV).
2
   Existing subordinate financing MUST be re-subordinated to maintain the first lien
  priority of the new DU Refi Plus mortgage loan. New subordinate financing is NOT permitted in conjunction with
  the DU Refi Plus loan program. See the “Secondary Financing” topic subsequently presented in this product
  description for additional information regarding subordinations


                                                                                             Continued on next page




Section 2.04                                                                                             June 10, 2011
DU Refi Plus                                                                                             Page 13 of 58
Broker Seller Guide
Loan Terms, Continued

Maximum                 Agency Plus:
LTV/TLTV/HTLTV,         Fully Amortizing Fixed Rate: 10, 15, 20 and 30 years
Investment              Fully Amortizing 5/1, 7/1 & 10/1 LIBOR ARMs: 30 years
Property,
                        References:
(continued)
                        • See the Minimum Loan Amount and Maximum Loan Amount subtopics
                           previously presented in this product description for additional information
                           regarding determining the minimum and maximum allowable loan amounts.
                        • See the Geographic Restrictions topic subsequently presented in this product
                           description for additional information on state specific lending restrictions.


     Loan       Product      # of                                LTV/TLTV/HTLTV for CDU
    Program                  Units                       Limited Cash-Out (Rate/Term) Refinances

                                             STM to STM                  Non-STM to STM               Non-STM to STM
                                             Transactions                  Transactions                Transactions
                                                                      (MI NOT REQUIRED on            (MI REQUIRED on
                                                                          Original Loan)               Original Loan)
Agency         Fixed           1           75%/75%/75%1,2                 65%/65%/65%1,2              65%/65%/65%1,2
Plus           Rate,
               5/1, 7/1 &
               10/1
               ARMs
1
  LTV is the “loan-to-value” of the first mortgage to the value of the property. TLTV is the “total loan-to-value” of the
  first AND second mortgage to the value of the property (if second is HELOC, the outstanding balance is used to
  calculate TLTV). HTLTV is the “HELOC total loan-to-value” of the first AND HELOC second mortgage to the value
  of the property (the total available credit line is used to calculate HTLTV).
2
   Existing subordinate financing MUST be re-subordinated to maintain the first lien
  priority of the new DU Refi Plus mortgage loan. New subordinate financing is NOT permitted in conjunction with the
  DU Refi Plus loan program. See the “Secondary Financing” topic subsequently presented in this product description
  for additional information regarding subordinations.


                                                                                            Continued on next page




Section 2.04                                                                                            June 10, 2011
DU Refi Plus                                                                                            Page 14 of 58
Broker Seller Guide
Loan Terms, Continued

ARM                  See Section 2.01: Agency Loan Programs and Section 2.03: Agency Plus Loan
Parameters           Program of the Broker Seller Guide for 5/1, 7/1 and 10/1 LIBOR ARM parameter
                     guidelines.


Interest Only        Interest only transactions are NOT eligible under the DU Refi Plus loan program.
Parameters

Maximum              The table below provides guidelines for the maximum number of financed properties
Number of            for Agency and Agency Plus DU Refi Plus transactions.
Financed
Properties

                     STM to STM Transactions                                Non-STM to STM Transactions
Guidelines outlined in Section 1.20: Maximum Number of Financed        Guidelines outlined Section 1.20: Maximum
Properties and Borrower Exposure of the Broker Seller Guide apply      Number of Financed Properties and
with the following exceptions.                                         Borrower Exposure, of the Broker Seller
                                                                       Guide apply.
•   For primary residence STM to STM transactions the maximum
    number of financed properties a borrower may have is limited to    Reference: See Section 1.20: Maximum
    ten (10), but cannot exceed a total of twelve loans.               Number of Financed Properties and
    •    The following guidelines apply for loans where borrowers      Borrower Exposure, of the Broker Seller
         have more than four (4) financed properties.                  Guide, for additional information.
         •    Agency DU Refi Plus mortgage transactions only are
              eligible.

             Note: Agency Plus DU Refi Plus transactions are not
             eligible.

        •    The credit report must show no mortgage lates (0 x 30)
             in the last twelve (12) months on all mortgage loans.
        •    The borrower must be a seasoned investor with at
             least 24 months satisfactory landlord experience as
             evidenced through copies of pages 1 and 2 of the most
             recent year’s signed federal income tax return,
             including Schedule E.
        •    Recent credit inquiries (within the past 120 days) must
             be researched to determine no additional financing is
             being obtained for the purchase of additional
             properties.
        •    The borrower cannot have any history of bankruptcy or
             foreclosure within the past seven (7) years.
        •    Rental income used from other properties owned by
             the borrower must be documented with two (2) years
             federal income tax returns.

Reference: See Section 1.20: Maximum Number of Financed
Properties and Borrower Exposure, of the Broker Seller Guide, for
additional information.




Section 2.04                                                                                      June 10, 2011
DU Refi Plus                                                                                      Page 15 of 58
Broker Seller Guide
Eligible Transactions

General              •    All DU Refi Plus loans MUST be originated as a limited cash-out (rate/term)
                          refinance transaction.


                     •    Purchase money, cash-out refinance, construction-permanent (one time and two
                          time closings) and streamline refinance transactions are NOT eligible.
                     •    The table below provides limited cash-out refinance guidelines for Agency and
                          Agency Plus DU Refi Plus transactions.

                  STM to STM Transactions                           Non-STM to STM Transactions
•   Existing purchase money subordinate financing may NOT            STM to STM guidelines apply.
    be paid off with the proceeds of the DU Refi Plus
    mortgage loan. All existing subordinate financing must be
    resubordinated to maintain the first lien priority of the new
    DU Refi Plus mortgage loan.
•   The borrower may receive up to $250 cash back at
    closing.
•   If there is excess cash back greater than $250, the loan
    amount must be recalculated, the loan must be re-
    approved and new documents must be drawn. Principal
    curtailments are not allowed regardless of the amount.

Notes:
• If the “Details of Transaction” screen in DU reflects that
    the borrower is receiving more than $250 cash back, the
    loan casefile will not be underwritten as a DU Refi Plus
    transaction.
• Additional MI company credit overlays may apply for
    limited cash-out (rate/term) refinance transactions. In all
    cases, the more restrictive of the MI company guidelines
    or the guidelines outlined in this product description will
    apply.
• Additional credit overlays may apply for transactions
    where existing subordinate financing is being
    resubordinated.

References:
• See the “Mortgage Insurance” topic subsequently
    presented in this product description and Section 1.08a:
    Mortgage Insurance - DU Refi Plus Requirements of the
    Broker Seller Guide for additional information.
• See Section 1.21a: Subordinations for DU Refi Plus and
    Freddie Mac Relief Refinance Mortgage of the Broker
    Seller Guide for specific credit overlays and workflow
    procedures for the subordination of SunTrust second
    mortgages, home equity lines of credit (HELOCs) and
    home equity loans.

                                                                                 Continued on next page




Section 2.04                                                                               June 10, 2011
DU Refi Plus                                                                               Page 16 of 58
Broker Seller Guide
Eligible Transactions, Continued

Tangible Net         The table below provides information regarding Tangible Net Benefit Requirements
Benefit              for Agency and Agency Plus DU Refi Plus transactions.
Requirements

* STM Internal
Information
ONLY *

                STM to STM Transactions                         Non-STM to STM Transactions
A Tangible Net Benefit Analysis (BRO 1362) form must be          STM to STM guidelines apply.
completed on ALL DU Refi Plus transactions in order to
document that the borrower is receiving a benefit in the
form of either:
• A reduced monthly mortgage principal and interest
    payment, or
• A more stable mortgage product (i.e., refinancing from
    an ARM to a fixed rate mortgage; refinancing from an
    interest only to a fully amortizing mortgage, decreasing
    the borrower’s remaining amortization period, etc.).

Note: The above referenced form must be completed by a
SunTrust Underwriter.




Section 2.04                                                                             June 10, 2011
DU Refi Plus                                                                             Page 17 of 58
Broker Seller Guide
Secondary Financing

General              The table below provides general information on secondary financing for Agency and
                     Agency Plus DU Refi Plus transactions.


                   STM to STM Transactions                                 Non-STM to STM Transactions
•   There is no maximum TLTV or HTLTV limit for DU Refi             STM to STM guidelines apply with the following
    Plus loan transactions, EXCEPT as outlined below:               EXCEPTION:
    •    Investment properties are limited to a 75%                 • See the “Loan Terms” topic for maximum
         TLTV/HTLTV, regardless of the location of the subject         TLTV/HTLTV limits.
         property.
•   Existing subordinate financing MUST be resubordinated to
    maintain the first lien priority of the new DU Refi Plus
    mortgage loan. Subordinate financing may NOT be paid
    off with the proceeds of the DU Refi Plus loan, regardless if
    the subordinate financing is a purchase money second.

    Reference: See Section 1.21a: Subordinations for DU Refi
    Plus and Freddie Mac Relief Refinance Mortgage of the
    Broker Seller Guide for specific credit overlays and
    workflow procedures for the subordination of SunTrust
    second mortgages, home equity lines of credit (HELOCs)
    and home equity loans.

    Note:     The requirements outlined in Section 1.21:
    Subordination of SunTrust Second Mortgage Loans of the
    Broker Seller Guide are NOT applicable to DU Refi Plus
    transactions.

•   New subordinate financing is NOT permitted in conjunction
    with the DU Refi Plus loan program
•   When processing the NEW first mortgage through
    DU/CDU, the loan information for ALL existing subordinate
    financing (i.e., second mortgage payment and balance)
    MUST be input into DU to ensure that the TLTV/HTLTV
    and other risk factors are considered in the final AUS
    recommendation.
•   A copy of the second mortgage note (or financing
    agreement terms if the second is a HELOC) is required for
    the loan file to confirm that the terms of the secondary
    financing meets DU Refi Plus requirements.

    Notes:
    •   In lieu of the second mortgage note (or financing
        agreement) a letter from the lender, on their letterhead,
        may be obtained only if the subordinate lien is reported
        on the credit report.
        •    The letter must disclose the terms for the
             secondary financing and confirm if the second lien
             is subject to prepayment penalty and if so, outline
             the terms (i.e., prepayment period).
    •   The existing secondary financing may be a Community
        Second.

                                                                                         Continued on next page



Section 2.04                                                                                        June 10, 2011
DU Refi Plus                                                                                        Page 18 of 58
Broker Seller Guide
Secondary, Continued
General,
(continued)

               STM to STM Transactions                    Non-STM to STM Transactions
•   Subordinate financing that does not fully amortize   See previous page for information.
    under a level monthly payment plan where the
    maturity or balloon payment date is less than five
    (5) years is acceptable.
•   Subordinate financing that is subject to a pre-
    payment penalty is acceptable.
•   Secondary financing cannot be subject to
    wraparound terms.
•   Acceptable title evidence must be obtained showing
    all secondary financing recorded and clearly
    subordinate to the first lien.
•   Subordinate secondary financing may be subject to
    negative amortization.




Section 2.04                                                                           June 10, 2011
DU Refi Plus                                                                           Page 19 of 58
Broker Seller Guide
Geographic Restrictions

General           In addition to standard Agency and Agency Plus geographic lending restrictions, the
                  following additional geographic restrictions apply for DU Refi Plus transactions:
                  • A Property Fieldwork Waiver (PFW) fee is NOT permitted to be charged to the
                       borrower in the following states:
                       • Iowa,
                       • New Jersey, and
                       • New York.

                  References:
                  • See the “Appraisal Guidelines” topic for additional information regarding Property
                     Fieldwork Waivers (PFW) requirements.
                  • See Section 2.01: Agency Loan Programs and Section 2.03: Agency Plus Loan
                     Program of the Broker Seller Guide for standard Agency and Agency Plus
                     geographic lending restrictions.
                  • See Section 1.11: Geographic State Restrictions, of the Broker Seller Guide for
                     SunTrust specific geographic restrictions and state specific predatory lending
                     restrictions that may apply.




Section 2.04                                                                             June 10, 2011
DU Refi Plus                                                                             Page 20 of 58
Broker Seller Guide
Occupancy/Property Types

Agency               The table below provides occupancy/property type guidelines for Agency DU Refi
                     Plus transactions.

                   STM to STM Transactions                                 Non-STM to STM Transactions
•   Eligible occupancy/property types include the following:        STM to STM guidelines apply with the following
    •    one (1) to four (4) unit primary residences (attached or   EXCEPTIONS:
         detached),                                                 •  PUD transactions with a PFW, confirm the
    •    one (1) unit second homes (attached or detached),             HOA fee with third party documentation,
    •    one (1) to four (4) unit investment properties (attached      such as but not limited to a recent HOA
         or detached),                                                 letter, due billing statement or by using the
    •    condominiums and units in a PUD, and                          Condominium/PUD Questionnaire (BRO
                                                                       0212a) in the case of an attached PUD.
        Notes:                                                      • Condominium properties must be Fannie
        •   Condominium properties will require an abbreviated         Mae accepted or warranted under the
            review to ensure that the property is not a condotel.      SunTrust Project Review process.
            No additional project review will be required.
        •   The DU Refi Plus / Freddie Mac Relief Refinance             Reference: See Section 1.13: SunTrust
            Mortgage Condominium Questionnaire (BRO 0217)               Condominium       and    PUD   Approval
            must be completed and placed in the loan file.              Requirements of the Broker Seller Guide
        •   The      Certification  of   Project    Compliance:         for warranty guidelines.
            Condominium Lender Warranties - Agency and
            Non-Agency Loan Products (BRO 0212b) must be            •   Loans secured by a condominium property
            completed and included in every DU Refi Plus loan           require a full appraisal regardless of the DU
            file for condominiums warranted under the DU Refi           Findings or SunTrust Custom DU Findings
            Plus abbreviated condominium review process.                Report indicating PFW eligibility.

                                                                        Reference:         See     the     Appraisal
        References:                                                     Requirements      topic    for     additional
        •   See the “Workflow” topic subsequently presented in          information.
            this product description for workflow procedures for
            the abbreviated condominium review/warranty
            process.
        •   See Section 2.01: Agency Loan Programs and
            Section 2.03: Agency Plus Loan Program of the
            Broker Seller Guide for additional information
            regarding geographic lending restrictions that apply
            for condominium properties.
        •   See Section 1.13: SunTrust Condominium and
            PUD Approval Requirements of the Broker Seller
            Guide for additional information.

    •   modular housing.


                                                                                         Continued on next page




Section 2.04                                                                                         June 10, 2011
DU Refi Plus                                                                                         Page 21 of 58
Broker Seller Guide
Occupancy/Property Types, Continued

Agency,
(continued)

                  STM to STM Transactions                              Non-STM to STM Transactions
                                                                      See previous page for information.
•   It is acceptable if the occupancy type on the new loan is
    NOT the same as the occupancy type on the original loan. If
    the original first mortgage lien was secured by a second
    home or investment property and the borrower is disclosing
    that the property is now a primary residence, evidence of the
    property being a primary residence must be documented in
    the loan file.

    Note: Additional MI company credit overlays may apply
    regarding occupancy restrictions on the new loan. In all
    cases, the more restrictive of the MI company guidelines or
    the guidelines outlined in this product description will apply.

    Reference:     See the “Mortgage Insurance” topic
    subsequently presented in this product description and
    Section 1.08a:   Mortgage Insurance - DU Refi Plus
    Requirements of the Broker Seller Guide for additional
    information.

•   All other standard Agency occupancy/property guidelines
    (i.e., ineligible occupancy/property type guidelines) apply.

    Reference: See Section 2.01: Agency Loan Programs of
    the Broker    Seller Guide for standard Agency
    occupancy/property guidelines.


                                                                                    Continued on next page




Section 2.04                                                                                    June 10, 2011
DU Refi Plus                                                                                    Page 22 of 58
Broker Seller Guide
Occupancy/Property Types, Continued

Agency Plus          The table below provides occupancy/property type guidelines for Agency Plus DU
                     Refi Plus transactions.


                    STM to STM Transactions                                  Non-STM to STM Transactions
•   Eligible occupancy/property types include the following:          STM to STM guidelines apply with the
    •    one (1) to two (2) unit primary residences (attached or      following EXCEPTIONS:
         detached),                                                   • Condominium properties must be Fannie
    •    one (1) unit second homes (attached or detached),                 Mae accepted or warranted under the
    •    one (1) unit investment properties (attached or detached),        SunTrust Project Review process.
    •    condominiums and units in a PUD, and
                                                                          Reference: See Section 1.13: SunTrust
        Notes:                                                            Condominium and PUD Approval
        •   Condominium properties will require an abbreviated            Requirements of the Broker Seller Guide
            review to ensure that the property is not a condotel.         for warranty guidelines.
            No additional project review will be required.
        •   The DU Refi Plus / Freddie Mac Relief Refinance           •   Loans secured by a condominium
            Mortgage Condominium Questionnaire (BRO 0217)                 property require a full appraisal
            must be completed and placed in the loan file.                regardless of the DU Findings or
        •   The      Certification   of   Project      Compliance:        SunTrust Custom DU Findings Report
            Condominium Lender Warranties - Agency and Non-               indicating PFW eligibility.
            Agency Loan Products (BRO 0212b) must be
            completed and included in every DU Refi Plus loan             Reference:        See    the   Appraisal
            file for condominiums warranted under the DU Refi             Requirements     topic   for   additional
            Plus abbreviated condominium review process.                  information.


        References:
        •   See the “Workflow” topic subsequently presented in
            this product description for workflow procedures for
            the abbreviated condominium review/warranty
            process.
        •   See Section 2.01: Agency Loan Programs and
            Section 2.03: Agency Plus Loan Program of the
            Broker Seller Guide for additional information
            regarding geographic lending restrictions that apply
            for condominium properties.
        •   See Section 1.13: SunTrust Condominium and PUD
            Approval Requirements of the Broker Seller Guide for
            additional information.

    •   modular housing.


                                                                                         Continued on next page




Section 2.04                                                                                        June 10, 2011
DU Refi Plus                                                                                        Page 23 of 58
Broker Seller Guide
Occupancy/Property Types, Continued

Agency Plus,
(continued)

                   STM to STM Transactions                             Non-STM to STM Transactions
                                                                      See previous page for information.
•   It is acceptable if the occupancy type on the new loan is NOT
    the same as the occupancy type on the original loan. If the
    original first mortgage lien was secured by a second home or
    investment property and the borrower is disclosing that the
    property is now a primary residence, evidence of the property
    being a primary residence must be documented in the loan file.

    Note: Additional MI company credit overlays may apply
    regarding occupancy restrictions on the new loan. In all cases,
    the more restrictive of the MI company guidelines or the
    guidelines outlined in this product description will apply.

    Reference: See the “Mortgage Insurance” topic subsequently
    presented in this product description and Section 1.08a:
    Mortgage Insurance - DU Refi Plus Requirements of the
    Broker Seller Guide for additional information.

•   All other standard Agency Plus occupancy/property guidelines
    (i.e., ineligible occupancy/property type guidelines) apply.

    Reference: See Section 2.03: Agency Plus Loan Program of
    the Broker Seller Guide for standard Agency Plus
    occupancy/property guidelines.




Section 2.04                                                                                   June 10, 2011
DU Refi Plus                                                                                   Page 24 of 58
Broker Seller Guide
Eligible Borrowers

General              The table below provides information on eligible borrowers for Agency and Agency
                     Plus DU Refi Plus transactions.


              STM to STM Transactions                                    Non-STM to STM Transactions
•   If DU is unable to recognize a borrower, DU will         •   If DU is unable to recognize a borrower, DU will
    issue a message that the social security number              issue a message that the social security number
    (SSN) on the existing Fannie Mae loan associated             (SSN) on the existing Fannie Mae loan associated
    with the subject property does not match and                 with the subject property does not match and
    require the lender to confirm the borrowers on the           require the lender to confirm the borrowers on the
    loan casefile match all borrowers on the existing            loan casefile match all borrowers on the existing
    Fannie Mae loan, except in cases where a borrower            Fannie Mae loan, except in cases where a borrower
    is being added or removed due to death or divorce.           is being added or removed due to death or divorce.

    Reference: See the “Borrower Verification” subtopic          Reference: See the “Borrower Verification” subtopic
    subsequently presented within the “Workflow” topic           subsequently presented within the “Workflow” topic
    for additional information.                                  for additional information.

•   A borrower may be added to (including non-               •   A borrower may be added to (including non-
    occupant co-borrowers) or removed from the new               occupant co-borrowers) or removed from the new
    loan.                                                        loan.
•   Borrowers may be removed from the new loan               •   Borrowers may be removed from the new loan
    provided at least one (1) borrower from the existing         provided at least one (1) borrower from the existing
    mortgage remains on the new mortgage. The                    mortgage remains on the new mortgage. The
    following requirements will apply.                           following requirements will apply.
    •    The borrower(s) being removed from the loan             •    The borrower(s) being removed from the loan
         must also be removed from the deed (i.e., title).            must also be removed from the deed (i.e., title).
    •    Evidence must be provided that the remaining            •    Evidence must be provided that the remaining
         borrower(s) have been making the payments                    borrower(s) have been making the payments
         from his or her own funds for twelve (12)                    from his or her own funds for twelve (12)
         consecutive months prior to the origination of               consecutive months prior to the origination of
         the new mortgage.                                            the new mortgage.
         •    The twelve (12) month payment history                   •    The twelve (12) month payment history
              may NOT be satisfied using multiple                          may NOT be satisfied using multiple
              consecutive loans within the borrower’s                      consecutive loans within the borrower’s
              credit history.                                              credit history.
         •    Twelve (12) months cancelled checks or                  •    Twelve (12) months cancelled checks or
              bank statements (if automatic draft) must                    bank statements (if automatic draft) must
              be documented in the loan file.                              be documented in the loan file.
         •    The account being used to document the                  •    The account being used to document the
              twelve (12) month payments must reflect                      twelve (12) month payments must reflect
              the remaining borrower(s) as the owner of                    the remaining borrower(s) as the owner of
              the account.                                                 the account.


                                                                                           Continued on next page




Section 2.04                                                                                           June 10, 2011
DU Refi Plus                                                                                           Page 25 of 58
Broker Seller Guide
Eligible Borrowers, Continued

General,              The table below provides information on eligible borrowers for Agency and Agency
(continued)           Plus DU Refi Plus transactions.


                 STM to STM Transactions                                   Non-STM to STM Transactions

Notes:                                                            Notes:
• If a borrower is being removed due to death, then the           • If a borrower is being removed due to death,
    following applies:                                                then the following applies:
    •    Twelve (12) month payment history is NOT required.           •   Twelve (12) month payment history is
    •    Documentation to evidence the borrower’s death                   NOT required.
         must be obtained.                                            •   Documentation to evidence the borrower’s
• Additional MI company credit overlays may apply                         death must be obtained.
    regarding eligible borrower guidelines. In all cases, the     • Adding or removing a borrower is allowed
    more restrictive of the MI company guidelines or the              when subordinating a SunTrust second
    guidelines outlined in this product description will apply.       mortgage (Combo Second Mortgage, EZ Two,
• Adding or removing a borrower is allowed when                       SunTrust Equity Line or Equity Loan).
    subordinating a SunTrust second mortgage (Combo                   •   The SunTrust second mortgage can not
    Second Mortgage, EZ Two, SunTrust Equity Line or                      be modified, regardless of whether
    Equity Loan).                                                         borrower(s) are added to, or removed
    •    The SunTrust second mortgage can not be modified,                from, the first mortgage, and
         regardless of whether borrower(s) are added to, or           •   the borrower(s) currently obligated on the
         removed, from the first mortgage, and                            SunTrust second mortgage will remain
    •    the borrower(s) currently obligated on the SunTrust              unchanged.
         second mortgage must remain.
                                                                  •   If the remaining borrower cannot meet the
Reference: See the “Mortgage Insurance” topic subsequently            requirements but the loan is eligible for the DU
presented in this product description and Section 1.08a:              Refi Plus loan program as indicated by the DU
Mortgage Insurance - DU Refi Plus Requirements of the                 Findings or SunTrust Custom DU Findings
Broker Seller Guide for additional information.                       report, then the following applies:
                                                                      •    the loan may not close as a DU Refi Plus
•   If the remaining borrower cannot meet the requirements                 transaction, and
    but the loan is eligible for the DU Refi Plus loan program        •    the loan must be processed as a standard
    as indicated by the DU Findings or SunTrust Custom DU                  Agency or Agency Plus limited cash-out
    Findings report, then the following applies:                           refinance (rate/term) transaction.
    •    the loan may not close as a DU Refi Plus                          •    In order for DU to properly assess the
         transaction, and                                                       loan as a standard Agency or Agency
    •    the loan must be processed as a standard Agency                        Plus limited cash-out refinance
         or Agency Plus limited cash-out refinance (rate/term)                  (rate/term) transaction the DU Opt
         transaction.                                                           Out Option must be exercised.
         •    In order for DU to properly assess the loan as a
              standard Agency or Agency Plus limited cash-                     Reference:        See    the   “AUS
              out refinance (rate/term) transaction the DU Opt                 Submission, Recommendations and
              Out Option must be exercised.                                    Tolerances”     topic   subsequently
              Reference:      See the “AUS Submission,                         presented in this product description
              Recommendations and Tolerances” topic                            for additional information regarding
              subsequently presented in this product                           DU Refi Plus Opt Out Option.
              description for additional information regarding
              DU Refi Plus Opt Out Option.




Section 2.04                                                                                           June 10, 2011
DU Refi Plus                                                                                           Page 26 of 58
Broker Seller Guide
Income

Income              The table below provides income documentation requirements for Agency and
Documentation       Agency Plus DU Refi Plus transactions.
Requirements

                  STM to STM Transactions                                Non-STM to STM Transactions
The following minimum income documentation requirements           STM to STM guidelines apply with the following
apply:                                                            EXCEPTIONS:
• Salaried/Hourly/Bonus/Overtime:         Income must be          • Self-Employed/Commission: Income must
    documented with paystub(s) dated within 30 days before           be documented as outlined in the Agency
    application and include YTD income for at least 30 days          and Agency Plus product descriptions.
    and a verbal verification of employment (VOE).
                                                                      Reference:    See Section 2.01: Agency
    Reference: See Section 1.05: Closing Information of the           Loan Programs and Section 2.03: Agency
    Broker Seller Guide for additional requirements and               Plus Loan Program of the Broker Seller
    workflow procedures for verbal verifications of employment.       Guide for non-AUS income documentation
                                                                      requirements.
•   If the borrower is employed by a relative, documentation is
    required to verify if the borrower has any ownership in the       * STM Internal Information ONLY: See the
    company.                                                          “Income Validation Procedures” documents
    • Obtain two (2) years individual signed federal tax              for additional information.
         returns.

•   Self-Employed/Commission: Income must be documented
    with one years’ (most recent filed) federal income tax
    return.

    * STM Internal Information ONLY
    Reference: See the Income Validation Procedures for
    additional information on the proper documentation of tax
    returns.

•   Rental Income:       If rental income is being used for
    qualification, standard Agency non-AUS guidelines apply.

Note: A written VOE in lieu of receiving pay stubs and W-2s is
acceptable provided a fully executed (i.e., signed by all
borrowers) IRS Form 4506-T is obtained and the signed IRS
Form 4506-T is processed.

References:
• See Section 2.01: Agency Loan Programs of the Broker
    Seller Guide for standard Agency non-AUS guidelines.
• See the “IRS 4506-T” subtopic in Section 1.05: Closing
    Information of the Broker Seller Guide for IRS Form 4506-T
    requirements at application and at closing.




Section 2.04                                                                                      June 10, 2011
DU Refi Plus                                                                                      Page 27 of 58
Broker Seller Guide
Qualifying Guidelines

Qualifying Rate      The table below provides information on qualifying rates for Agency and Agency Plus
                     DU Refi Plus transactions.

             STM to STM Transactions                                   Non-STM to STM Transactions
Standard Agency DU and Agency Plus guidelines apply.                    STM to STM guidelines apply.

See Section 2.01: Agency Loan Programs and Section
2.03: Agency Plus Loan Program of the Broker Seller
Guide for additional information.




Qualifying           The table below provides qualifying ratio information for Agency DU Refi Plus
Ratios -             transactions.
Agency

                STM to STM Transactions                                  Non-STM to STM Transactions
•   The maximum debt to income ratio is 50.00%                 •   The maximum debt to income ratio is 45.00%.
    (regardless of LTV).                                       •   If the borrower’s proposed mortgage P&I
•   If the borrower’s proposed mortgage P&I payment                payment increases by more than 20% of the
    increases by more than 20% of the current mortgage             current mortgage P&I (or Interest Only) payment,
    P&I (or Interest Only) payment, then the maximum               then the maximum qualifying ratios are 31/45%.
    qualifying ratios are 31/45%. If the qualifying ratios
    exceed     the    maximum     allowable   DTI
    requirements, the loan may be considered on a
    case-by-case basis; however, the loan must be
    reviewed by a SunTrust underwriting manager or
    underwriting team lead.

Note: For Agency loans originated under the DU Refi Plus
loan program, additional MI company credit overlays may
apply regarding restrictions if the borrower’s proposed
mortgage P&I payment increases. In all cases, the more
restrictive of the MI company guidelines or the guidelines
outlined in this product description will apply.

References:
• See the “Mortgage Insurance” topic subsequently
    presented in this product description and Section
    1.08a:     Mortgage Insurance - DU Refi Plus
    Requirements of the Broker Seller Guide for additional
    information.
• For borrowers who fall outside of the qualifying ratio
    requirements for the DU Refi Plus loan program, see
    the “Workflow” topic subsequently presented in this
    product description for additional information regarding
    workflow procedures for loan referrals to SunTrust’s
    Loss Mitigation Department.


                                                                                        Continued on next page




Section 2.04                                                                                        June 10, 2011
DU Refi Plus                                                                                        Page 28 of 58
Broker Seller Guide
Qualifying Guidelines, Continued


Qualifying          The table below provides qualifying ratio information for Agency Plus DU Refi Plus
Ratios –            transactions.
Agency Plus

               STM to STM Transactions                              Non-STM to STM Transactions
•   The maximum debt to income ratio is 45.00%          •   The maximum debt to income ratio is 45.00%
    (regardless of the LTV).                                (regardless of the LTV).
•   If the borrower’s proposed mortgage P&I payment     •   If the borrower’s proposed mortgage P&I payment
    increases by more than 20% of the current               increases by more than 20% of the current
    mortgage P&I (or Interest Only) payment, then the       mortgage P&I (or Interest Only) payment, then the
    maximum qualifying ratios are 31/45%. If the            maximum qualifying ratios are 31/45%.
    qualifying ratios exceed the maximum
    allowable DTI requirements, the loan may be
    considered on a case-by-case basis; however,
    the loan must be reviewed by a SunTrust
    underwriting manager or underwriting team
    lead.

Note: For Agency Plus loans originated under the DU
Refi Plus loan program, additional MI company credit
overlays may apply regarding restrictions if the
borrower’s proposed mortgage P&I payment increases.
In all cases, the more restrictive of the MI company
guidelines or the guidelines outlined in this product
description will apply.




Section 2.04                                                                                   June 10, 2011
DU Refi Plus                                                                                   Page 29 of 58
Broker Seller Guide
Credit Requirements

Credit Score       The table below provides Agency DU Refi Plus minimum credit score requirements.
Requirements -
Agency

               STM to STM Transactions                               Non-STM to STM Transactions
The minimum credit scores for Agency DU Refi Plus        The minimum credit scores for Agency DU Refi Plus
transactions are outlined in the table below:            transactions are outlined in the table below:

         Product          Minimum Credit Score                    Product             Minimum Credit Score
         Agency            660 for all borrowers                  Agency               660 for all borrowers




Credit Score       The table below provides Agency Plus DU Refi Plus minimum credit score
Requirements       requirements.
– Agency Plus

                STM to STM Transactions                           Non-STM to STM Transactions
The minimum credit scores for Agency Plus DU Refi    The minimum credit scores for Agency Plus DU Refi Plus
Plus transactions are outlined in the table below:   transactions are outlined in the tables below:

      Product          Minimum Credit Score          Note: If the existing loan required MI (i.e., if the original
     Agency Plus        660 for all borrowers        LTV of the existing loan was > 80% and existing MI
                                                     coverage in still in force, etc.), then the maximum loan-to-
                                                     value (LTV) is limited to 80% or less.

                                                     Reference: See the “Loan Terms” topic for maximum
                                                     loan-to-value (LTV/TLTV/HTLTV) requirements.

                                                     •       Primary Residence – Fixed Rate :

                                                                        Minimum Credit Score
                                                         •     1 Unit Properties:
                                                               •   LTV/TLTV/HTLTV 80.01 - 90%: 720 for
                                                                   all borrowers
                                                               •   LTV TLTV/HTLTV 75.01 – 80%: 700 for
                                                                   all borrowers
                                                               •   LTV/TLTV/HTLTV </= 75%: 660 for all
                                                                   borrowers
                                                         •     2 Unit Properties:
                                                               •   740 for all borrowers

                                                     •       Primary Residence – ARMs:

                                                                       Minimum Credit Score
                                                         •    1 Unit Properties:
                                                              •   680 for all borrowers
                                                         •    2 Unit Properties:
                                                              •   740 for all borrowers




                                                                                      Continued on next page


Section 2.04                                                                                      June 10, 2011
DU Refi Plus                                                                                      Page 30 of 58
Broker Seller Guide
Credit Requirements, Continued


Credit Score
Requirements
– Agency Plus,
(continued)

              STM to STM Transactions             Non-STM to STM Transactions
   See previous page for information.   •   Second Homes (Fixed Rate and ARMs):

                                                       Minimum Credit Score
                                                        740 for all borrowers


                                        •   Investment Properties (Fixed Rate and ARMs):

                                                       Minimum Credit Score
                                                        740 for all borrowers




                                                                   Continued on next page




Section 2.04                                                                    June 10, 2011
DU Refi Plus                                                                    Page 31 of 58
Broker Seller Guide
Credit Requirements, Continued

Credit History       The table below provides credit history analysis requirements for Agency and
Analysis             Agency Plus DU Refi Plus transactions.

                  STM to STM Transactions                               Non-STM to STM Transactions
•   As of the date of the application, the borrower must    •   As of the date of the application, the borrower must
    be current on the mortgage being refinanced.                be current on the mortgage being refinanced.
•   The borrower’s payment history must reflect 0X30        •   The borrower’s payment history must reflect 0X30
    on ALL housing debts (including ALL mortgage and            on all housing debts for the last 12 months. If the
    rental payments) for the last 12 months. If the             payment history is seasoned less than 12 months,
    payment history is seasoned less than 12 months,            the borrower’s payment history must reflect 0X30
    the borrower’s payment history must reflect 0X30            over the life of the loan period.
    over the life of the loan/rental period. The 12 month   •   All other credit requirements (i.e., bankruptcies,
    payment history must be consecutive and may                 foreclosures, late payments, etc.) must meet all
    come from multiple loans within the borrower’s              other standard Agency DU guidelines.
    credit history.
                                                                Reference: See Section 2.01:      Agency Loan
                                                                Programs of the Broker Seller Guide for standard
    Note: If the existing loan has a Buyers’ Bonus              Agency DU guidelines.
    Mortgage feature, the borrower MUST be beyond
    the initial six (6) months payment period.

    Reference: See the “Workflow” topic subsequently
    presented in this product description for workflow
    procedures for identifying existing loans that have a
    Buyers’ Bonus Mortgage feature.

•   All other credit requirements (i.e., bankruptcies,
    foreclosures, late payments, etc.) must meet all
    other standard Agency DU guidelines.

Note: Additional MI company credit overlays may apply
regarding mortgage payment history requirements. In
all cases, the more restrictive of the MI company
guidelines or the guidelines outlined in this product
description will apply.

References:
• See the “Mortgage Insurance” topic subsequently
    presented in this product description and Section
    1.08a:     Mortgage Insurance - DU Refi Plus
    Requirements of the Broker Seller Guide for
    additional information.
• See Section 2.01: Agency Loan Programs of the
    Broker Seller Guide for standard Agency DU
    guidelines.




Section 2.04                                                                                         June 10, 2011
DU Refi Plus                                                                                         Page 32 of 58
Broker Seller Guide
Cash Requirements

Cash Reserves          The table below provides cash reserve requirements for Agency DU Refi Plus
- Agency               transactions.


                 STM to STM Transactions                              Non-STM to STM Transactions
The cash reserve requirements for the Agency DU Refi      The cash reserve requirements for Agency DU Refi Plus
Plus transactions are outlined in the table below:        transactions are outlined in the table below:

  Occupancy Type            Reserve Requirement            Occupancy Type            Reserve Requirement
  Primary Residence           1-4 Units: Per DU            Primary Residence           1-4 Units: Per DU
    Second Home                  1 Unit: Per DU
 Investment Property      1 Unit: Two (2) months PITI
                         2-4 Units: Six (6) months PITI
                                                              Second Home        •   1 Unit: Two (2) months
                                                                                     reserves are required.
                                                                                 •   Two (2) months of
                                                                                     reserves are required on
                                                                                     each additional financed
                                                                                     second    home      and/or
                                                                                     investment property.

                                                           Investment Property   •   1 – 4 Units:      Six (6)
                                                                                     months    reserves    are
                                                                                     required.
                                                                                 •   Two (2) months of
                                                                                     reserves are required on
                                                                                     each additional financed
                                                                                     second    home     and/or
                                                                                     investment property.


                                                          Reference: See Section 2.01: Agency Loan Programs
                                                          of the Broker Seller Guide for standard Agency DU
                                                          guidelines.


                                                                                      Continued on next page




Section 2.04                                                                                     June 10, 2011
DU Refi Plus                                                                                     Page 33 of 58
Broker Seller Guide
Cash Requirements, Continued

Cash Reserves          The table below provides cash reserve requirements for Agency Plus DU Refi Plus
– Agency Plus          transactions.

                 STM to STM Transactions                              Non-STM to STM Transactions
The cash reserve requirements for the Agency Plus DU      The cash reserve requirements for Agency Plus DU Refi
Refi Plus transactions are outlined in the table below:   Plus transactions are outlined in the table below:

  Occupancy Type            Reserve Requirement             Occupancy Type          Reserve Requirement
  Primary Residence           1-2 Units: Per DU             Primary Residence     •  If LTV </=80%, then
    Second Home                  1 Unit: Per DU                                      four (4) months of
 Investment Property      1 Unit: Two (2) months PITI                                reserves required.
                                                                                  • If LTV > 80%, then six
                                                                                     (6) months of reserves
                                                                                     required.

                                                               Second Home        •   Four (4) months of
                                                                                      reserves required.
                                                                                  •   Two (2) months of
                                                                                      reserves are required
                                                                                      on    each     additional
                                                                                      financed second home
                                                                                      and/or       investment
                                                                                      property.

                                                            Investment Property   •   Six (6) months of
                                                                                      reserves required.
                                                                                  •   Two (2) months of
                                                                                      reserves are required
                                                                                      on    each     additional
                                                                                      financed second home
                                                                                      and/or       investment
                                                                                      property.


                                                          Reference: See Section 2.03: Agency Plus Loan
                                                          Program of the Broker Seller Guide for standard Agency
                                                          DU guidelines.



Gifts                  The table below provides information on gifts for Agency and Agency Plus DU Refi
                       Plus transactions.

                STM to STM Transactions                              Non-STM to STM Transactions
Gifts must be documented in accordance with standard                  STM to STM guidelines apply.
Agency DU guidelines.

Reference: See Section 2.01: Agency Loan Programs
of the Broker Seller Guide for additional information.




Section 2.04                                                                                      June 10, 2011
DU Refi Plus                                                                                      Page 34 of 58
Broker Seller Guide
Contributions by Interested Parties

Lender Credit       The table below provides information on lender credits for Agency and Agency Plus
                    DU Refi Plus transactions.

               STM to STM Transactions                        Non-STM to STM Transactions
Standard Agency DU and Agency Plus guidelines apply.           STM to STM guidelines apply.

Reference: See Section 2.01: Agency Loan Programs
and Section 2.03: Agency Plus Loan Program of the
Broker Seller Guide for additional information.




Temporary           The table below provides information on temporary interest rate buydowns for
Interest Rate       Agency and Agency Plus DU Refi Plus transactions.
Buydowns

              STM to STM Transactions                         Non-STM to STM Transactions
Temporary interest rate buydowns, including      the           STM to STM guidelines apply.
SunTrust ARM Alternative, are NOT eligible.




Section 2.04                                                                            June 10, 2011
DU Refi Plus                                                                            Page 35 of 58
Broker Seller Guide
Mortgage Insurance

General              The table below provides information on mortgage insurance for Agency and Agency
                     Plus DU Refi Plus transactions.

                      STM to STM Transactions                              Non-STM to STM Transactions
•   Data from the Fidelity servicing system will be needed to   •   If the original LTV of the existing loan was </=
    determine MI eligibility and to order a modified MI             80% or if the LTV was > 80%; however, the
    certificate, if required.                                       existing loan does not have mortgage insurance
                                                                    (MI previously canceled or terminated), then MI
    Note: An Excel spreadsheet titled Fidelity Loan Data            coverage is not required on the new loan.
    Retriever is used to obtain the Fidelity Snapshot. Click        • The maximum loan-to-value (LTV) guidelines
    here to access the Fidelity Loan Data Retriever                      for Non-STM to STM (MI NOT REQUIRED
    spreadsheet.                                                         on Original Loan) must be followed.
    Reference:    See the “Workflow” topic subsequently                 Reference: See the “Loan Terms” topic for
    presented in this product description for workflow                  maximum loan-to-value (LTV) requirements.
    procedures for obtaining the Fidelity Snapshot.
                                                                    Notes:
                                                                    •   New refinance transactions with an LTVs <
•   Section 1.08a: Mortgage Insurance - DU Refi Plus                    80% do not require MI regardless if the
    Requirements of the Broker Seller Guide MUST be                     existing loan has MI.
    reviewed for EVERY loan requiring mortgage insurance            •   DU will issue the following message on
    (MI) to ensure adherence with the most current MI                   transactions in which the existing Fannie
    guidelines. In all cases, the more restrictive of the MI            Mae loan was greater than 80%, and does
    company guidelines or the guidelines outlined in this               not appear to have MI based on the
    product description will apply.                                     information currently available to DU:
•   ALL LOANS REQUIRING MORTGAGE INSURANCE
    MUST BE CLOSED IN THE NAME OF SUNTRUST                              Fannie Mae’s records indicate that the
    MORTGAGE, INC. Loans that do not meet this guideline                existing Fannie Mae loan does not currently
    will invalidate the MI coverage and therefore will NOT be           have mortgage insurance coverage in effect.
    saleable on the secondary market.                                   Mortgage insurance is not required for this
•   The requirement for mortgage insurance (MI) for the new             DU Refi Plus loan casefile.
    refinance transaction will depend on the current MI
    coverage on the existing loan, as outlined in the table     •   If the existing loan required MI (i.e., if the original
    below:                                                          LTV of the existing loan was > 80% and existing
                                                                    MI coverage is still in force, etc.), then the
    Original    Existing MI          MI Coverage                    maximum loan-to-value (LTV) is limited to 80% or
     LTV of     Coverage in        Required for New                 less.
    Existing      Force                  Loan                       • The maximum loan-to-value (LTV) guidelines
      Loan                                                               for Non-STM to STM (MI REQUIRED on
    </= 80%         None             Not Required                        Original Loan) must be followed.
     > 80%        None (MI           Not Required
                  previously                                            Reference: See the “Loan Terms” topic for
                 cancelled or                                           maximum loan-to-value (LTV) requirements.
                 terminated)
      > 80%          Yes          Yes, MI coverage is               Note: DU will issue the following message to
                                 required at the same               assist in identifying loans in which the original
                                  level in force on the             LTV on the existing Fannie Mae loan was greater
                                   existing loan or the             than 80%, and the existing Fannie Mae loan
                                 modified level per the             currently has MI:
                                      DU findings.




                                                                                          Continued on next page



Section 2.04                                                                                           June 10, 2011
DU Refi Plus                                                                                           Page 36 of 58
Broker Seller Guide
Mortgage Insurance, Continued

General,
(continued)

                     STM to STM Transactions                                Non-STM to STM Transactions
    Notes:                                                                 Mortgage insurance is required for
    •   New refinance transactions with LTVs </= 80% do not require        this DU Refi Plus loan casefile. The
        MI, regardless if the existing loan has MI.                        lender may either obtain the level of
    •   DU will issue the following message on transactions in which       mortgage insurance (MI) coverage
        the existing Fannie Mae loan was greater than 80%, and             that is in effect on the existing Fannie
        does not appear to have MI based on the information                Mae loan or standard mortgage
        currently available to DU:                                         insurance coverage. The lender
                                                                           should confirm the accuracy of the MI
         Fannie Mae’s records indicate that the existing Fannie Mae        coverage in effect on the existing
         loan does not currently have mortgage insurance coverage in       Fannie Mae loan prior to obtaining
         effect. Mortgage insurance is not required for this DU Refi       new MI at that specified level of
         Plus loan casefile.                                               coverage, or modifying the existing
                                                                           MI certificate. Fannie Mae’s records
•   Existing loans with lender paid mortgage insurance (LPMI) are          indicate that the amount of MI in
    eligible.                                                              effect on the existing Fannie Mae
                                                                           loan is <existing MI>%, and the
    Note: The Lender Paid Private Mortgage Insurance Notice (BRO           standard level of MI coverage for this
    1305) must be signed by all borrowers at the time of loan              loan casefile is <standard MI>%.
    commitment.                                                            Verify the MI premium is accurately
                                                                           reflected in the loan application.
•   Loans originated with the same level of MI coverage as on the
    existing loan will require a transfer and/or modification of the
    existing MI coverage to the new loan.

    Note: DU will issue the following message to assist in identifying
    loans in which the original LTV on the existing Fannie Mae loan
    was greater than 80%, and the existing Fannie Mae loan currently
    has MI:

    Mortgage insurance is required for this DU Refi Plus loan casefile.
    The lender may either obtain the level of mortgage insurance (MI)
    coverage that is in effect on the existing Fannie Mae loan or
    standard mortgage insurance coverage. The lender should
    confirm the accuracy of the MI coverage in effect on the existing
    Fannie Mae loan prior to obtaining new MI at that specified level
    of coverage, or modifying the existing MI certificate. Fannie Mae’s
    records indicate that the amount of MI in effect on the existing
    Fannie Mae loan is <existing MI>%, and the standard level of MI
    coverage for this loan casefile is <standard MI>%. Verify the MI
    premium is accurately reflected in the loan application.

Reference: See the “Workflow” topic subsequently presented in this
product description and Section 1.08a: Mortgage Insurance - DU Refi
Plus Requirements of the Broker Seller Guide for additional
information regarding workflow procedures for obtaining MI information
on the existing loan, transferring/modifying the existing MI coverage to
the new loan, as well as MI data input for MLCS.




Section 2.04                                                                                       June 10, 2011
DU Refi Plus                                                                                       Page 37 of 58
Broker Seller Guide
Documentation Requirements

General              The table below provides documentation requirements for Agency and Agency Plus
                     DU Refi Plus transactions.

            STM to STM Transactions                          Non-STM to STM Transactions
Unless otherwise outlined in this product description,        STM to STM guidelines apply.
DU Refi Plus transactions must be documented in
accordance with the requirements outlined on the DU
and CDU Finding Reports.

References:
• See the “Appraisal Requirements” topic
    subsequently presented in this product description
    for additional information regarding appraisal
    documentation requirements.
• See the “Income” topic previously presented in
    this product description for additional information
    regarding income documentation requirements.




Section 2.04                                                                            June 10, 2011
DU Refi Plus                                                                            Page 38 of 58
Broker Seller Guide
Appraisal Requirements

General              The table below provides appraisal requirements for Agency and Agency Plus DU
                     Refi Plus transactions.


               STM to STM Transactions                                  Non-STM to STM Transactions
•   For certain DU Refi Plus eligible loan casefiles, DU    STM to STM guidelines apply with the following
    will waive the requirement for an appraisal or          EXCEPTIONS:
    exterior-only property inspection and offer a           •  PUD transactions with a PFW, confirm the HOA fee
    Property Fieldwork Waiver (PFW).                           with third party documentation, such as but not
    • A PFW is eligible for consideration on the               limited to a recent HOA letter, due billing statement
         following transactions:                               or by using the Condominium/PUD Questionnaire
         • 1 unit primary residence, second home               (BRO 0212a) in the case of an attached PUD.
              and investment properties,                    •  Loans secured by a condominium property require a
         • Max 95% LTV/TLTV/HTLTV.                             full appraisal regardless of the DU Findings or
                                                               SunTrust Custom DU Findings Report indicating
    • A PFW is not eligible for the following                  PFW eligibility.
         transactions:
                                                            •  The following is required for Agency Plus DU Refi
         • 2-4 unit transactions,                              Plus transactions:
         • LTV/TLTLV/HTLTVs greater than 95%,                  • A full appraisal (i.e., Form 1004 or 1073 if a
              and                                                   condominium) with an interior and exterior
         • mixed-use properties.                                    inspection is required.
•   For LTVs 95.01 – 105%, follow the appraisal                • A full appraisal (i.e., Form 1004 or 1073 if a
    requirement outlined DU Findings or SunTrust                    condominium) AND a field review (i.e., Form
    Custom DU Findings Report; a PFW is not eligible.               2000) is required if:
•   For LTVs </= 95%, follow the appraisal                          • the property value is >/= $1,000,000 AND
    requirement outlined DU Findings or SunTrust                         the LTV/TLTV/HTLTV is >/= 75%, or
    Custom DU Findings Report, a PFW is eligible.
                                                                    • the loan amount is >/= $625,500 AND the
                                                                         LTV/TLTV/HTLTV is > 80%.
    Note: Additional MI company credit overlays may
    apply regarding appraisal requirements. In all
                                                                    Note: If the field review results in a different
    cases, the more restrictive of the MI company
                                                                    opinion of value, the lower of the original
    guidelines or the guidelines outlined in this product
                                                                    appraised value or the field review value, should
    description will apply.
                                                                    be used to calculate the LTV ratios.
    Reference: See the “Mortgage Insurance” topic
    subsequently presented in this product description          •   For units located in a condominium project, two
    and Section 1.08a: Mortgage Insurance - DU Refi                 (2) comparables must be from projects outside
    Plus Requirements of the Broker Seller Guide for                the subject project.
    additional information.                                     • The age of the appraisal can be up to 120 days
                                                                    old at the time of closing. If the appraisal is
•   A full CoreLogic report is required on all loans in             greater than 120 days, but less than 12 months
    which an appraisal is used to determine the                     old, an appraisal update is required.
    property value.     A CoreLogic report is NOT           •   A full CoreLogic report is required on all loans in
    required if the PFW option is exercised.                    which an appraisal is used to determine the property
                                                                value.
    References:                                                 • A mini LoanSafe report is required if the PFW
    •   See Section 1.06: Appraisal Guidelines, of the              option is exercised.
        Broker Seller Guide, for additional information
        concerning     appraisals    and      appraisal     References:
        requirements.                                       •   See Section 1.06: Appraisal Guidelines, of the
    •   See the Workflow topic for CoreLogic                    Broker Seller Guide, for additional information
        requirements.                                           concerning appraisals and appraisal requirements.
                                                            •   See the Workflow topic for CoreLogic requirements.

                                                                                         Continued on next page



Section 2.04                                                                                          June 10, 2011
DU Refi Plus                                                                                          Page 39 of 58
Broker Seller Guide
Appraisal Requirements, Continued

General,
(continued)

                        STM to STM Transactions                                    Non-STM to STM Transactions
   •   As part of the risk analysis, DU assesses the reasonableness of the        See previous page for information.
       estimated value for the property and recommends the minimum
       level of property valuation and inspection fieldwork that must be
       performed. If a loan is determined eligible for a PFW, the loan will
       receive two fieldwork messages; one indicating the availability of the
       PFW and a second indicating the minimum fieldwork required if the
       lender chooses not to exercise the PFW.
   •   The following message will appear in the Property and Appraisal
       Information section of the DU Findings or SunTrust Custom DU
       Findings report:
       • “Desktop Underwriter accepts the value submitted as the
            market value for the subject property on this limited cash-out
            refinance transaction where the borrower’s existing loan is
            identified as a Fannie Mae loan. This loan is eligible for delivery
            to Fannie Mae without an appraisal or exterior-only property
            inspection if the DU Refi Plus property fieldwork waiver is
            exercised by the lender at the time of loan delivery to Fannie
            Mae. To exercise this waiver and be eligible for representation
            and warranty relief on the value, condition and marketability of
            the subject property, Special Feature Code 807 and the DU
            Casefile ID must be included in the loan delivery file. A fee will
            be charged to exercise this waiver. If the waiver is not
            exercised, at least the minimum level of fieldwork
            recommended for this transaction must be obtained.”

       Reference: See the “Special Feature Code” subtopic within the
       “MLCS Loan Setup and Processing” topic for additional information.

   •   The fee for exercising the PFW option is $75. This fee cannot be
       disclosed as an appraisal fee since there is no appraisal. Except as
       outlined in this subtopic, the PFW fee should be disclosed on the
       HUD-1 as a “Property Fieldwork Waiver Fee” and the HUD-I needs
       to show the fee is being paid to the Lender. There is no specific
       HUD line designation for this PFW fee; however, it should be placed
       in the 800 series of lender fees or the 1300 series. This fee should
       be calculated as a finance charge fee.
       Note: A PFW fee may NOT be charged to the borrower if the
       subject property is located in the state of Iowa, New Jersey or New
       York OR if an appraisal has been ordered. In these instances, the
       PFW fee will be absorbed by the Lender.

   •   If the transaction is eligible for a PFW, the PFW MUST be exercised,
       regardless if geographic restrictions apply and/or an appraisal has
       been ordered.


                                                                                          Continued on next page




Section 2.04                                                                                          June 10, 2011
DU Refi Plus                                                                                          Page 40 of 58
Broker Seller Guide
Appraisal Requirements, Continued

General,
(continued)

                      STM to STM Transactions                                 Non-STM to STM Transactions
   •   The following guidelines apply if an appraisal has been ordered       See previous page for information.
       AND the PFW has also been exercised:
       • The borrower must be charged for the appraisal ONLY. The
           borrower may NOT be charged for BOTH the appraisal fee
           and the PFW fee. In these instances, the PFW fee will be
           absorbed by the Lender.
       • The value from the appraisal must be used when submitted to
           DU.
       • MLCS must reflect the highest level of appraisal review
           obtained. The PFW appraisal code of “7” should NOT be
           used; however, the Special Feature code of 807 MUST
           always be reflected in MLCS when a PFW has been
           exercised.
   •   An appraisal report must be obtained if the following applies,
       regardless of the DU Findings or SunTrust Custom DU Findings
       Report indicating PFW eligibility:
       • the lender has reason to believe that the fieldwork is
           warranted based on additional information obtained about the
           property or subsequent events such as a hurricane or other
           natural disaster, or based on additional information provided
           by DU regarding the subject property and/or loan casefile, or
       • state law requires a full appraisal.
       Note: If an appraisal is obtained due to one of the reasons above
       and the loan is eligible for the PFW, the PFW may NOT be
       exercised.

   •   When a loan is subsequently resubmitted, the DU Findings or
       SunTrust Custom DU Findings Report must be reviewed to verify
       if the messaging referencing eligibility for PFW continues to
       appear. If the messaging no longer appears and the DU Findings
       Report identifies that another level of appraisal is required, then
       PFW is no longer available and the appropriate appraisal must be
       ordered.
   •   The DU Refi Plus property fieldwork waiver offer must have been
       issued no more than 120 days prior to the note date.
   •   When a PFW is used in lieu of an appraisal, the borrower must
       sign the following disclosure Notice About Appraisal of Your
       Property, indicating that he/she understands his/her loan is being
       made without an appraisal.

       Note: The Notice About Appraisal of Your Property form will print
       with the borrowers closing package.


                                                                                      Continued on next page




Section 2.04                                                                                      June 10, 2011
DU Refi Plus                                                                                      Page 41 of 58
Broker Seller Guide
Appraisal Requirements, Continued

General,
(continued)

                         STM to STM Transactions                             Non-STM to STM Transactions
    •     The table outlined below provides additional guidance regarding   See previous page for information.
          loans originated with an appraisal and/or PFW.

                                                               Notice
                                                                About
  Appraisal /                                    Charge to
                       Appraisal Code    SFC                  Appraisal
 PFW Scenario                                    Borrower
                                                               of Your
                                                              Property
 Loan already       F - Full Appraisal    807    Appraisal     Do not
 has an             2 – 2055 exterior              Fee         provide
 unexpired          6 – 2075
 appraisal, yet
 is also now
 eligible for
 PFW
 Specific State     7 - FANNIE MAE PFW    807       $0         Provide
 (IA, NJ, NY)
 does not allow                                  Note: The
 borrower to                                       default
 pay for PFW,                                     charge of
 but loan is                                       $75 will
 eligible for                                    need to be
 PFW.                                             manually
 Appraisal not                                   changed to
 ordered.                                           $0 in
                                                   MLCS.
 Borrower           F - Full Appraisal    807     Appraisal    Do not
 wants an           2 – 2055 exterior               Fee        provide
 Appraisal or       6 – 2075
 State requires
 an appraisal,
 but loan is
 eligible for
 PFW
 No appraisal,      7 - FANNIE MAE PFW    807       $75        Provide
 state allows
 PFW, eligible
 for PFW
 Not Eligible for   F - Full Appraisal    NA     Appraisal     Do not
 PFW                2 – 2055 exterior              Fee         provide
                    6 – 2075

    References:
    •   See the “Appraisal Codes” subtopic within the “MLCS Loan Setup
        and Processing” topic for additional information on the appraisal
        code requirements for loans originated with a PIW.
    •   See Section 1.06: Appraisal Guidelines, of the Broker Seller
        Guide, for additional information concerning appraisals and
        appraisal requirements.




Section 2.04                                                                                     June 10, 2011
DU Refi Plus                                                                                     Page 42 of 58
Broker Seller Guide
AUS Submission, Recommendations and Tolerances

AUS               Agency:
Submission        • All Agency DU Refi Plus transactions must be processed through Fannie Mae’s
                     Desktop Underwriter (DU) and receive a DU “Approve/Eligible” recommendation.

                      Reference: Click here to obtain a copy of the DU data input instructions.

                  •   Agency and Agency Plus DU Refi Plus transactions are NOT eligible for
                      Expanded Approval recommendations (regardless of the EA Level), traditional
                      underwriting or processing through Freddie Mac’s Loan Prospector (LP)
                      automated underwriting system.

                      Note: Borrowers who are refinancing an existing SunTrust first mortgage (STM
                      to STM transaction), should be referred to SunTrust’s Loss Mitigation
                      Department (1-800-443-1032, Option #3) to review loan modification options if
                      the loan transaction receives an Expanded Approval recommendation
                      (regardless of the EA Level).

                  •   The maximum number of DU submissions for the DU Refi Plus loan program is
                      limited to ten (10). Written documentation/justification must be provided in the
                      loan file for underwriter review/approval when the number of DU submissions
                      exceed ten (10).

                      Reference: See Section 1.03a: Automated Underwriting of the Broker Seller
                      Guide for additional information.

                  •   When the loan casefile is submitted to DU, DU will determine if the borrower and
                      subject property address on the loan casefile match an existing eligible Fannie
                      Mae loan. A successful match is required in order for DU to evaluate the loan
                      for DU Refi Plus eligibility.

                                                                               Continued on next page




Section 2.04                                                                              June 10, 2011
DU Refi Plus                                                                              Page 43 of 58
Broker Seller Guide
AUS Submission, Recommendations and Tolerances, Continued

AUS               Agency, (continued):
Submission,       • The following message will be issued by DU (in the “Risk/Eligibility” section of
(continued)          the DU Findings Report) when the loan casefile is identified by DU as being
                     eligible for the DU Refi Plus loan program:

                          “This loan casefile was underwritten according to the DU Refi Plus
                          expanded eligibility guidelines offered on certain limited cash-out
                          refinance loan casefiles where the borrower’s existing loan is identified
                          by DU as a Fannie Mae loan. This casefile must be delivered with
                          Special Feature Code 147.”

                      Note: DU will also provide messaging to inform users why a loan casefile was
                      not underwritten as a DU Refi Plus loan. Specific messaging will appear in the
                      “Risk/Eligibility” section of the DU Underwriting Findings Report.

                  •   To ensure that the loan is being originated within the guidelines of the DU Refi
                      Plus loan program, the following checklists are REQUIRED to be completed,
                      placed in the loan file and maintained with the underwriting documents:
                      • DU Refi Plus Loan Program Eligibility Checklist for Conforming Loan Limits
                          and For Current SunTrust Customer(s) (STM to STM) (BRO 0161), and
                      • DU Refi Plus Loan Program Eligibility Checklist – Conforming Loan Limits
                          (Non-STM to STM) (BRO 1385).

                  Agency Plus:
                  • Agency Plus DU Refi Plus loans MUST be processed through SunTrust’s
                     Custom Desktop Underwriter (CDU) and must receive a SunTrust “Eligible” and
                     DU “Approve/Eligible” recommendation. Traditional underwriting, DU Expanded
                     Approval recommendations (regardless of the EA Level) and LP processing are
                     NOT acceptable.

                      Reference: See “Vendor Code” in the “MLCS Loan Setup and Processing” topic
                      subsequently presented in this product description for additional information
                      regarding vendor code requirements.

                  •   Borrowers who are refinancing an existing SunTrust first mortgage (STM to STM
                      transaction) should be referred to SunTrust’s Loss Mitigation Department (1-800-
                      443-1032, Option #3) to review loan modification options if the loan transaction
                      receives an Expanded Approval recommendation (regardless of the EA Level).
                  •   Upon submission, all loans will first be routed through Fannie Mae’s Standard
                      Desktop Underwriter (DU) engine.
                  •   The maximum number of DU submissions for the DU Refi Plus loan program is
                      limited to ten (10). Written documentation/justification must be provided in the
                      loan file for underwriter review/approval when the number of DU submissions
                      exceed ten (10).

                      Reference: See Section 1.03a: Automated Underwriting of the Broker Seller
                      Guide for additional information.

                                                                               Continued on next page




Section 2.04                                                                              June 10, 2011
DU Refi Plus                                                                              Page 44 of 58
Broker Seller Guide
AUS Submission, Recommendations and Tolerances, Continued

AUS               Agency Plus, (continued):
Submission,       • If a Standard DU recommendation of “Approve/Eligible” is received AND the
(continued)          appropriate field has been completed to identify the transaction as an Agency
                     Plus loan, the transaction will automatically be routed to SunTrust’s Custom DU
                     engine and a SunTrust Custom DU Findings report will be received.

                      Reference: Click here to obtain a copy of the CDU data input instructions.

                      Note: Loans processed through SunTrust’s Custom DU that DO NOT receive a
                      Standard DU recommendation of “Approve/Eligible” and a SunTrust Custom DU
                      recommendation of “Eligible” are NOT ELIGIBLE under the Agency Plus DU Refi
                      Plus loan program.

                      Reference: See “Loan Terms” topic located in Section 2.03: Agency Plus Loan
                      Program of the Broker Seller Guide for additional information.

                  •   SunTrust Custom DU Findings will still be generated on ineligible Agency Plus
                      DU Refi Plus loan transactions; however, the SunTrust Custom DU
                      recommendation will read “Not Eligible.” The SunTrust Custom DU Findings will
                      indicate that the Agency Plus loan has been underwritten through Custom DU
                      according to the product guidelines for the DU Refi Plus loan program and
                      received a SunTrust Recommendation of NOT ELIGIBLE.
                  •   If routed to CDU, SunTrust recommendations and messages will be issued
                      based on the standard guidelines of the Agency Plus DU Refi Plus loan
                      program.
                  •   Certain eligibility criteria for Agency Plus DU Refi Plus loans must be evaluated
                      OUTSIDE of CDU. The eligibility criteria required to be evaluated OUTSIDE of
                      CDU will be reflected in the messaging on the SunTrust Custom DU Findings
                      report.
                  •   To ensure that the loan is being originated within the guidelines of the Agency
                      Plus loan program, ALL messaging outlined on the SunTrust Custom DU
                      Findings report MUST be reviewed and confirmed.
                  •   ALL messaging on the DU Underwriting Findings report MUST BE IGNORED.
                  •   The DU Underwriting Analysis Report must also be reviewed.

                                                                              Continued on next page




Section 2.04                                                                             June 10, 2011
DU Refi Plus                                                                             Page 45 of 58
Broker Seller Guide
AUS Submission, Recommendations and Tolerances, Continued

Tolerances        The loan must meet standard Agency guidelines for Fannie Mae DU loans as
                  outlined in the Agency product description.

                  Reference: See the AUS Recommendations, Resubmissions and Forms topic in
                  Section 2.01: Agency Loan Programs of the Broker Seller Guide for additional
                  information.


DU Refi Plus      •   The DU Refi Plus Opt Out Option provides the ability to submit a loan to DU and
Opt Out Option        forgo the DU Refi Plus eligibility analysis. When the DU Opt Out Option is
                      exercised, DU/CDU analyzes the loan as a standard limited cash-out (rate/term)
                      refinance transaction.
                  •   If the loan is ineligible for the DU Refi Plus loan program as a result of the DU
                      Refi Plus eligibility checklist or CDU Findings Report; or a borrower is being
                      removed and the remaining borrower cannot meet the requirements but the loan
                      is eligible for the DU Refi Plus loan program as indicated by the DU Findings or
                      SunTrust Custom DU Findings report, then the loan MUST be resubmitted to
                      DU/CDU with the DU Refi Plus Opt Out Option exercised and the loan MUST be
                      processed as a standard limited cash-out (rate/term) refinance transaction.

                      Notes:
                      • DU Refi Plus Opt Out eligibility is determined when DU provides messaging
                         that the loan is eligible for the DU Refi Plus loan program; however, one of
                         the items shown below indicates that the loan is NOT eligible for DU Refi
                         Plus:
                         • DU Ref Plus Loan Program Eligibility Checklist for Conforming Loan
                             Limits and For Current SunTrust Customer(s) (STM to STM) (BRO
                             0161),
                         • DU Refi Plus Loan Program Eligibility Checklist – Conforming Loan
                             Limits (Non-STM to STM) (BRO 1385), or
                         • Custom Desktop Underwriter (CDU).
                      • To ensure the DU Refi Plus Opt Out Option was exercised in accordance
                         with the guidelines above, a copy of the checklist or SunTrust Custom
                         Underwriting Findings report showing the loan was ineligible for the DU Refi
                         Plus loan program must be retained in the file.

                  •   Click here for instructions on how to input DU Refi Plus Opt Out Option data into
                      DU Direct/DO, STMPartners and Calyx.




Section 2.04                                                                             June 10, 2011
DU Refi Plus                                                                             Page 46 of 58
Broker Seller Guide
Workflow

General           •   DU Refi Plus transactions may be underwritten by SunTrust underwriters or
                      contract underwriters.

                      Reference:        See Section 1.08a:     Mortgage Insurance - DU Refi Plus
                      Requirements of the Broker Seller Guide for additional information regarding the
                      eligibility of contract MI underwriting.

                  •   All Agency DU Refi Plus transactions must be processed through Fannie Mae’s
                      Desktop Underwriter (DU) and receive a DU “Approve/Eligible” recommendation.
                      All Agency Plus DU Refi Plus transactions must be processed through
                      SunTrust’s Custom Desktop Underwriter (CDU) and receive a DU
                      “Approve/Eligible” and CDU “Eligible” recommendation.

                      References:
                      • See the “AUS Submission, Recommendations and Tolerances” topic
                         previously presented in this product description for additional information.
                      • See “Loan Terms” topic located in Section 2.03: Agency Plus Loan Program
                         of the Broker Seller Guide to access a link to the maximum loan limits.

                  •   The original credit documents (in appropriate file order) should be in a manila
                      folder with the borrower’s name(s), property address, SunTrust loan number and
                      the originating Broker’s name typed on the label.
                  •   For appropriate order of the documents in the credit package, complete the
                      Conventional Loan Credit Package Checklist form (BRO 0002). In addition, the
                      loan must be registered with SunTrust prior to submission.
                  •   The table below provides guidelines regarding the CoreLogic report that is
                      required on DU Refi Plus transactions:

                        Appraisal / PFW / Transaction Scenario              CoreLogic Report
                        PFW and STM to STM Transaction                         Not Required
                        PFW and Non-STM to STM Transaction           Mini CoreLogic (LoanSafe Report)
                        No PFW                                                Full CoreLogic

                  Reference: See Section 1.03: Loan Submission and Underwriting Approval of the
                  Broker Seller Guide for additional information.

                                                                              Continued on next page




Section 2.04                                                                             June 10, 2011
DU Refi Plus                                                                             Page 47 of 58
Broker Seller Guide
Workflow, Continued

Borrower            The table below provides borrower verification workflow procedures for Agency and
Verification        Agency Plus DU Refi Plus transactions.



                       STM to STM                                            Non-STM to STM
•   Verify that the borrower’s SSN has been entered       •   Verify that the borrower’s SSN has been entered
    into the DU system correctly. If not, correct the         into the DU system correctly. If not, correct the
    borrower’s SSN and resubmit the loan to DU.               borrower’s SSN and resubmit the loan to DU.
•   Confirm the Fidelity Snapshot indicates the           •   Verify the current mortgage loan is reported on the
    borrowers on the current mortgage and the new             borrower’s credit report.
    mortgage are the same.                                •   Obtain a copy of the Note for the mortgage that is
•   Verify the current mortgage loan is reported on the       being refinanced.
    borrower’s credit report.


                                                                                     Continued on next page




Section 2.04                                                                                     June 10, 2011
DU Refi Plus                                                                                     Page 48 of 58
Broker Seller Guide
Workflow, Continued

Fidelity          The workflow procedures for SunTrust Employees who are obtaining a “snapshot”
Snapshot –        from Fidelity for borrowers who are refinancing an existing SunTrust first mortgage
STM to STM        (STM to STM transactions) are outlined below:
Transactions      • You must have a MSP (Fidelity) sign on to access. The ID starts with “AM”.
                      Access is requested via the FastForm for users who do not already have this
                      access.
                  • The Bluezone application must be installed on your PC or laptop. This is a
                      standard install on all SunTrust computers.
                      • Click on Start, Programs, Bluezone to verify.
                      • If for any reason you do not have Bluezone on your computer, you must
                          complete an EIS Request to obtain.
                  • An Excel spreadsheet titled Fidelity Loan Data Retriever is used to obtain the
                      Fidelity snapshot. Click here to access the Fidelity Loan Data Retriever
                      spreadsheet.
                      • This spreadsheet should be saved to your desktop for easy access. Click
                          here for instructions on how to save the Fidelity Loan Data Retriever tool to
                          the computer desktop.
                  • Open the Fidelity Loan Data Retriever EXCEL spreadsheet. It is best to have the
                      Fidelity Loan Data Retriever Spreadsheet open. Please close all other Excel
                      applications.
                  • Select “Enable Macros.”
                  • Click on the worksheet titled “Script.”
                  • Click the button “Wholesale or Correspondent Channel.”
                  • Enter the loan number and click “run script.”
                      • If the user enters a loan number not found on Fidelity, the script will prompt
                          the user to check the loan number and enter it again.

                          Note: The user will be prompted to input their user ID at this time.

                  •   The user will see the data being “scraped” from Fidelity.
                  •   If the loan is ELIGIBLE:
                      • A box will pop up stating “Completed Data Gathering”
                      • Click “OK”
                      • The worksheet titled “Loan Data” will be opened and reflect all of the
                           required data.
                      • Print the “Loan Data” worksheet and place in file.
                           • Data from this spreadsheet will be needed to order mortgage insurance,
                                if required.
                           • A soft copy of the result for every loan that is run through the script can
                                be found on the C:\MSP_LOAN_DATA folder on the PC that ran the
                                report.

                                                                                Continued on next page




Section 2.04                                                                               June 10, 2011
DU Refi Plus                                                                               Page 49 of 58
Broker Seller Guide
Workflow, Continued

Fidelity          •   If the loan is INELIGIBLE:
Snapshot -            • The script stops and provides alerts if the loan has one of the following
STM to STM                 conditions:
Transactions,              • Loan number cannot be found in Fidelity.
(continued)                • Not owned by Fannie Mae.
                           • Loan has pending or confirmed misrepresentation.
                           • Loan is pending repurchase by the investor.
                           • Loan has pool insurance.
                           • Loan is delinquent – refer to loss mitigation.
                      • The script finishes but provides alerts if there is less than a 12 month
                           payment history or if there was a misapplication payment reversal in the
                           payment history. The payment history would need to be manually reviewed
                           in these cases.


Identifying       The workflow procedures for identifying if an SunTrust first existing mortgage (STM
Existing          to STM transaction) has the Buyers’ Bonus Mortgage feature are outlined below:
Mortgages with    • You must have a MLCS sign on to access loan information regarding the
the Buyers’           existence of the Buyers’ Bonus Mortgage feature. Access is requested via the
Bonus                 FastForm for users who do not already have this access.
Mortgage          • Access MLCS screen M28 in process flow 05/14to obtain the FIRST payment
Feature – STM         date on the existing mortgage. Click here to view a screen shot that shows
to STM                where the first payment date will be located.
Transactions          • If the borrower is past the initial six (6) months payment period, no further
                          action is required to determine if the existing mortgage has the Buyers’
                          Bonus Mortgage feature. It is acceptable to proceed with the processing of
                          the loan in accordance with the guidelines for the DU Refi Plus loan
                          program.
                      • If six (6) or less payments have been made, the following procedures apply:
                          • Access MLCS screen M0B in process flow 05/14.
                          • View the data input in the “BUYDOWN CODE” field. If “DBD” is present,
                              the loan has the Buyers’ Bonus Mortgage feature and the loan is NOT
                              eligible for origination under the DU Refi Plus loan program.


Pricing           •   Rate sheets will reflect specific adjustments for the DU Refi Plus loan program.
                      The same Agency and Agency Plus base pricing will be utilized.
                  •   The workflow procedures for changing an existing lock to a DU Refi Plus are
                      outlined below:
                      • Contact the Lock Desk by phone at 1-888-779-1878, Option #1, Option #2,
                           Option #1.

                          Note: Should a fax or e-mail request be received, there is a turnaround time
                          of 24 hours. Turnaround time is subject to change based on capacity.

                      •   The Lock Desk will change the loan to a DU Refi Plus loan. Please note that
                          these loans are subject to the original base pricing and loan adjustments.

                                                                              Continued on next page




Section 2.04                                                                             June 10, 2011
DU Refi Plus                                                                             Page 50 of 58
Broker Seller Guide
Workflow, Continued

STMPartners       In addition to standard workflow processes currently utilized, the following workflow
                  procedures apply for DU Refi Plus loans locked on STMPartners:

                  •   On the Quick Lock screen, check the “Fannie DU Refi Plus/Freddie Relief Refi”
                      box.

                      Notes:
                      • When selecting the “Fannie DU Refi Plus/Freddie Relief Refi” box, another
                         dropdown box will appear to select the appropriate product – “Fannie Mae or
                         Freddie Mac”.
                      • Select “Fannie Mae” for the DU Refi Plus loan program.

                  •   In the Borrower Section of the Quick Lock screen, check “Existing STM
                      Customer” for STM to STM transactions,

                      Note: This indicator is also available in the Borrower Section of the following
                      screens:
                      • Re-Lock/Re-Price - Product and Pricing Selection Page
                      • Pricing Scenario – Loan Terms
                      • Application Loan Terms of the Loan Terms Page

                  •   On the Application screen, Liabilities section, check the “SunTrust Mortgage”
                      Box and enter the existing SunTrust loan number in the “Account Number” field.
                  Reference: Click here to view screen shots of the above required fields.

Condominium       The workflow procedures for obtaining an abbreviated condominium review for
Abbreviated       borrowers who are refinancing an existing SunTrust first mortgage (STM to STM
Review – STM      transaction) are outlined below:
to STM
                  •   The DU Refi Plus review submissions require the following documents:
Transactions
                      • completed Submission Request Form SunTrust Condo Approval Request,
                      • copy of Insurance Certificate (Liability, Hazard, H0-6 and Flood if
                          applicable),
                      • completed DU Refi Plus / Freddie Mac Relief Refinance Mortgage
                          Condominium Questionnaire (BRO 0217),
                      • copy of the Fidelity Snapshot for STM to STM transactions,
                      • DU Findings, and
                      • the original SunTrust Loan number.
                  •   The Broker submits the above items to the appropriate SunTrust Wholesale
                      Divisional Underwriting Office.
                      Note: The SunTrust Condo Approval Request form will be completed and
                      submitted by the SunTrust Wholesale Divisional Underwriting Office.
                  •   The SunTrust Wholesale Divisional Underwriting Office submits the DU Refi Plus
                      Review request to the Richmond Central Condo Department. The DU Refi Plus
                      Review requests may be sent via fax to the Richmond Central Condo
                      Department         at     804-291-2675       OR         via      email      to
                      mortgage.condodesk@suntrust.com *(include DU Refi Plus Review request in
                      the subject line).
                                                                             Continued on next page



Section 2.04                                                                             June 10, 2011
DU Refi Plus                                                                             Page 51 of 58
Broker Seller Guide
Workflow, Continued

Condominium       •   DU Refi Plus Review requests will be responded to within 24-48 hours of receipt
Abbreviated           of the complete submission.
Review – STM      •   The SunTrust Wholesale Divisional Underwriting Office will receive a completed
to STM                Certification of Project Compliance: Condominium Lender Warranties-Agency
Transactions,         and Non-Agency Loan Products Warranty Form (BRO 0212b) signed by an
(continued)           authorized Condo Analyst (marked DU Refi Plus Certified) which must be placed
                      in the file on top of the appraisal.


Condominium       A full condominium review is required. Condominium properties must be Fannie
Review – Non-     Mae accepted or warranted under the SunTrust Project Review process for non-STM
STM to STM        to STM transactions.
Transactions
                  Reference:   See Section 1.13: SunTrust Condominium and PUD Approval
                  Requirements of the Broker Seller Guide for warranty guidelines.


Mortgage          Reference: See Section 1.08a: Mortgage Insurance - DU Refi Plus Requirements of
Insurance –       the Broker Seller Guide for workflow procedures for transferring/modifying the
STM to STM        existing MI coverage to the new loan on STM to STM transactions.
Transactions

Subordination     Reference: See Section 1.21a: Subordinations for DU Refi Plus and Freddie Mac
of SunTrust       Relief Refinance Mortgage of the Broker Seller Guide for specific credit overlays and
Second            workflow procedures for the subordination of SunTrust second mortgages.
Mortgages

Referrals to      •   Borrowers who are refinancing an existing SunTrust first mortgage (STM to STM
SunTrust’s            transaction) should be referred to SunTrust’s Loss Mitigation Department to
Loss Mitigation       review loan modification options if:
Department –          • they fall outside of the DU Refi Plus loan parameters, outlined in this product
STM to STM                description, but are at risk of “imminent default” AND/OR
Transactions          • the loan transaction receives an Expanded Approval recommendation
                          (regardless of the EA Level).
                  •   SunTrust’s Loss Mitigation Department’s toll free number is 1-800-443-1032,
                      Option #3. Borrowers may also submit a request for assistance at
                      www.suntrustmortage.com (Click on Client Payment Concerns).
                  •   Borrowers not delinquent on their mortgage will first be routed to Customer
                      Service, second to Collections, and then to Loss Mitigation.
                  •   Borrowers who are delinquent on their mortgage but not “active” in loss
                      mitigation, will be routed to Collections and subsequently to Loss Mitigation as
                      appropriate.

                                                                               Continued on next page




Section 2.04                                                                             June 10, 2011
DU Refi Plus                                                                             Page 52 of 58
Broker Seller Guide
Workflow, Continued

Referrals from    •   Borrowers who have an existing SunTrust first mortgage and are ineligible for
SunTrust’s            the Home Affordable Modification Program will be referred to SunTrust’s
Loss Mitigation       Consumer Direct Department at 1-800-330-4684 to seek refinance eligibility
Department –          guidelines.
STM to STM        •   SunTrust’s Loss Mitigation Department will advise the borrower to have their
Transactions          loan number available (they will need to authenticate and then will be routed to a
                      Continuity loan officer, or stay in the queue for Consumer Direct).


Referrals to      •   Borrowers who are refinancing an existing SunTrust first mortgage (STM to STM
SunTrust’s            transaction) and fall outside of the DU Refi Plus loan parameters outlined in this
Consumer              product description, but are NOT currently at risk of “imminent default,” should
Direct                be referred to SunTrust’s Consumer Direct Department for further loan
Department            processing.
                  •   SunTrust’s Consumer Direct Department’s toll free number is 1-800-330-4684.


Principal         Principal curtailments at closing are not allowed regardless of the amount.
Curtailments at
Closing




Section 2.04                                                                               June 10, 2011
DU Refi Plus                                                                               Page 53 of 58
Broker Seller Guide
Application Disclosures and Issues

Consumer          The Consumer Handbook on Adjustable Rate Mortgages must be given to borrowers
Handbook on       prior to loan application, when originating an ARM transaction. The borrowers must
Adjustable        sign an acknowledgement of receipt of the Handbook on the program disclosure.
Rate
Mortgages

Program           The applicable ARM program disclosure must be presented to and signed by the
Disclosures       borrower prior to loan application, when originating an ARM transaction. This form
                  must be present in the file prior to funding and is as follows:
                  • Agency 5/1 LIBOR ARM Disclosure: Non-Convertible (BRO 1294),
                  • Agency 7/1 LIBOR ARM Disclosure: Non-Convertible (BRO 1296), and
                  • Agency 10/1 LIBOR ARM Disclosure: Non-Convertible (BRO 1298).


Other Loan        •   All consumer disclosures or notices required by federal, state and local laws and
Application           regulations must be complied with. This includes, but is not limited to, the Real
and                   Estate Settlement Procedures Act, the Equal Credit Opportunity Act, the Flood
Compliance            Disaster Protection Act, the Truth-in-Lending Act, the Fair Credit Reporting Act,
Issues                all as amended, and with all applicable usury limitations.
                  •   Further, all consumer disclosures relating to the mortgage loan must have been
                      properly given on a timely basis and in compliance with applicable laws, rules
                      and regulations.




Section 2.04                                                                             June 10, 2011
DU Refi Plus                                                                             Page 54 of 58
Broker Seller Guide
MLCS Loan Setup and Processing

Appraisal         The applicable appraisal code is required for all DU Refi Plus loan transactions:
Codes             • 2 – 2055 exterior only
                  • 6 – 2075
                  • 7 – Fannie Mae Property Fieldwork Waiver (PFW)

                      Note: If the PFW has been exercised AND an appraisal has been ordered,
                      MLCS must reflect the highest level of appraisal review obtained. The PFW
                      appraisal code of “7” should NOT be used.

                  •   F – Full appraisal

                  Note: On MLCS, the appraisal code field MUST BE entered on screen M0B (process
                  flow 05/14).


AUS Used          •   The following information is required in the “AUS USED” field for all DU Refi Plus
                      loan transactions:
                      • D – Desktop Underwriter

                      Note: Although ALL Agency Plus DU Refi Plus loan transactions MUST be
                      processed through SunTrust’s Custom Desktop Underwriter, for MLCS loan set-
                      up and processing purposes, “C – Custom Desktop Underwriter” should NOT be
                      denoted in the “AUS USED” field. As outlined above, “D” must be input in the
                      “AUS USED” field for ALL Agency AND Agency Plus DU Refi Plus loan
                      transactions.

                  •   The above information will automatically default in the “AUS USED” field if the
                      “VENDOR” field is completed.

                  Note: On MLCS, the AUS USED field is located on screen M0B (process flow
                  05/14).

                  Reference: See the Vendor Code subtopic subsequently presented for additional
                  information.


Processing        A processing type of “FAD” is required for all loans originated under the DU Refi Plus
Type              loan program.

                  Note: On MLCS, the processing type MUST BE entered on screen M0B (process
                  flow 05/14) in the field labeled “PROC TYPE.”

                                                                                Continued on next page




Section 2.04                                                                               June 10, 2011
DU Refi Plus                                                                               Page 55 of 58
Broker Seller Guide
MLCS Loan Setup and Processing, Continued

Program Codes      The tables below provide program codes for Agency DU Refi Plus transactions.
– Agency


               STM to STM Transactions                        Non-STM to STM Transactions

           Program Name                 Program                Program Name                  Program
                                          Code                                                Code
 DU Refi Plus – Agency 40 Year Fixed,    C40RP      DU Refi Plus – Non-STM – Agency 40       C40NRP
 Fully Amortizing                                   Year Fixed, Fully Amortizing
 DU Refi Plus – Agency 30 Year Fixed,   C30RP       DU Refi Plus – Non-STM - Agency 30       C30NRP
 Fully Amortizing                                   Year Fixed, Fully Amortizing
 DU Refi Plus – Agency 20 Year Fixed,   C20RP       DU Refi Plus – Non-STM– Agency 20        C20NRP
 Fully Amortizing                                   Year Fixed, Fully Amortizing
 DU Refi Plus – Agency 15 Year Fixed,   C15RP       DU Refi Plus – Non-STM - Agency 15       C15NRP
 Fully Amortizing                                   Year Fixed, Fully Amortizing
 DU Refi Plus – Agency 10 Year Fixed,   C10RP       DU Refi Plus – Non-STM - Agency 10       C10NRP
 Fully Amortizing                                   Year Fixed, Fully Amortizing
 DU Refi Plus – Agency 5/1 ARM, Fully    51RP       DU Refi Plus –Non-STM - Agency 5/1       51NRP
 Amortizing                                         ARM, Fully Amortizing
 DU Refi Plus – Agency 7/1 ARM, Fully    71RP       DU Refi Plus – Non-STM - Agency 7/1      71NRP
 Amortizing                                         ARM, Fully Amortizing
 DU Refi Plus – Agency 10/1 ARM,         10RP       DU Refi Plus – Non-STM - Agency          10NRP
 Fully Amortizing                                   10/1 ARM, Fully Amortizing




Program Codes      The tables below provide program codes for Agency Plus DU Refi Plus transactions.
–Agency Plus


               STM to STM Transactions                        Non-STM to STM Transactions

            Program Name                 Program                Program Name                  Program
                                          Code                                                  Code
  DU Refi Plus – Agency Plus 30 Year     C30HRP       DU Refi Plus – Non-STM - Agency         C30NHR
  Fixed, Fully Amortizing                             Plus 30 Year Fixed, Fully Amortizing
  DU Refi Plus – Agency Plus 20 Year     C20HRP       DU Refi Plus – Non-STM - Agency         C20NHR
  Fixed, Fully Amortizing                             Plus 20 Year Fixed, Fully Amortizing
  DU Refi Plus – Agency Plus 15 Year     C15HRP       DU Refi Plus – Non-STM - Agency         C15NHR
  Fixed, Fully Amortizing                             Plus 15 Year Fixed, Fully Amortizing
  DU Refi Plus – Agency Plus 10 Year     C10HRP       DU Refi Plus – Non-STM - Agency         C10NHR
  Fixed, Fully Amortizing                             Plus 10 Year Fixed, Fully Amortizing
  DU Refi Plus – Agency Plus 5/1 ARM,     51HRP       DU Refi Plus – Non-STM - Agency         51NHRP
  Fully Amortizing                                    Plus 5/1 ARM, Fully Amortizing
  DU Refi Plus – Agency Plus 7/1 ARM,     71HRP       DU Refi Plus – Non-STM - Agency         71NHRP
  Fully Amortizing                                    Plus 7/1 ARM, Fully Amortizing
  DU Refi Plus – Agency Plus 10/1         10HRP       DU Refi Plus – Non-STM - Agency          10NHRP
  ARM, Fully Amortizing                               Plus 10/1 ARM, Fully Amortizing



                                                                               Continued on next page



Section 2.04                                                                                 June 10, 2011
DU Refi Plus                                                                                 Page 56 of 58
Broker Seller Guide
MLCS Loan Setup and Processing, Continued

Special Feature   Special feature code 807 is required for all DU Refi Plus loans originated with a
Codes             Property Fieldwork Waiver.

                  Note: On MLCS, the special feature code MUST BE entered on screen M0B
                  (process flow 05/14) in the field labeled “AGENCY SPECIAL FEATURE CODES.”


SunTrust to       For all DU Refi Plus transactions, on MLCS screen Z73 (process flow 05/14), users
SunTrust          MUST validate that:
Refinance and     • a “Y” (for Yes) is reflected in the “SUNTRUST TO SUNTRUST REFI” field, and
STM Refi Loan     • the existing (i.e., original) SunTrust loan number is entered in the “STM REFI
Number Fields         LOAN NUMBER FIELD.”

                  Note: The above required information will automatically default on MLCS screen
                  Z73 when the “STM to STM” flag is checked and the existing loan number is
                  captured in STMPartners.

                  Reference: See the “Workflow” topic for additional information regarding workflow
                  procedures for STMPartners.


Target Investor   The target investor code is 111 for all DU Refi Plus loans.
Code

Vendor Code       The following vendor code is required for DU Refi Plus loan transactions:
                  • D – Desktop Underwriter

                  Notes:
                  • Although ALL Agency Plus DU Refi Plus loan transactions MUST be processed
                     through SunTrust’s Custom Desktop Underwriter, for MLCS loan set-up and
                     processing purposes, “C – Custom Desktop Underwriter” should NOT be
                     denoted as the vendor code. As outlined above, “D” must be input as the vendor
                     code for ALL Agency AND Agency Plus DU Refi Plus loan transactions.
                  • On MLCS, the vendor code field MUST BE entered on screen M0B (process
                     flow 05/14) in the AUTOMATED UNDERWRITING section in the field labeled
                     “VENDOR.”




Section 2.04                                                                              June 10, 2011
DU Refi Plus                                                                              Page 57 of 58
Broker Seller Guide
Closing and Loan Settlement Documentation

General            •     Unless specified below, all closing forms and documentation should follow
                         standard SunTrust guidelines.
                   •     ALL LOANS REQUIRING MORTGAGE INSURANCE MUST BE CLOSED IN
                         THE NAME OF SUNTRUST MORTGAGE, INC. Loans that do not meet this
                         guideline will invalidate the MI coverage and therefore will NOT be saleable on
                         the secondary market.

                   Reference: See Section 1.05: Closing Information of the Broker Seller Guide for
                   standard SunTrust guidelines.


Closing Legal      The following table shows the required legal documents and investor forms.
Documents
                                  Legal Documents                                  Investor Form
                       Fixed Rate Note                             Fannie Mae/Freddie Mac 3200 or state
                                                                   specific version
                       Non-Convertible Fully Amortizing 5/1, 7/1   Fannie Mae 3528 or state specific version
                       & 10/1 LIBOR Adjustable Rate Note
                       Security Instrument                         Fannie Mae/Freddie Mac state specific
                                                                   version
                       Non-Convertible Fully Amortizing 5/1, 7/1   Fannie Mae 3187
                       & 10/1 LIBOR Adjustable Rate Rider
                       2nd Home Rider, if applicable               Fannie Mae/Freddie Mac 3890
                       1-4 Family Rider, if applicable             Fannie Mae/Freddie Mac 3170
                       Condo Rider, if applicable                  Fannie Mae/Freddie Mac 3140
                       PUD Rider, if applicable                    Fannie Mae/Freddie Mac 3150




Escrow Waiver      Standard escrow waiver guidelines apply for all DU Refi Plus transactions.

                   Reference: See Section 1.05: Closing Information of the Broker Seller Guide for
                   additional information.


Interest Credits   Interest credits are not allowed under the DU Refi Plus loan program.




Section 2.04                                                                                      June 10, 2011
DU Refi Plus                                                                                      Page 58 of 58
Broker Seller Guide

				
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