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					                                      Non-Conforming
                                            Fixed Rate

PRODUCT DESCRIPTION:         A Non-Conforming fixed period loan. Terms allowed are 10, 15, 25 and 30
                             years.

PRODUCT CODE:                J10
                             J15
                             J25
                             J30

                 OWNER-OCCUPIED PRIMARY RESIDENCE
                                 1-4 UNITS
                    Purchase and Rate & Term Refinance
    Max Loan Amount           Max LTV/CLTV             Minimum Credit Score
        $400,000               95/95% 80/100%               620 660 1

         $650,000               95/95% 90/95% 80/100%                680 620 680


        $1,000,000                  80/100% 80/95%                     680 620

        $1,500,000                         75/80%                      620
        $2,000,000                         70/70%                      700
        $3,000,000                         70/70%                      700
        $6,000,000                         60/70%                      720
       1 2 Units require 680 minimum credit score
       3-4 Units”
                 •    Max. 90/90% LTV/CLTV
                 •    Max. Loan Amount:: $1,500,000
       • Condotels:
                 •    Max 80/80% LTV/CLTV to $350,000
                 •    Max 75/75% LTV/CLTV to $650,000
                 •    Max Loan Amount $650,000
       • Non-Warrantable Condos
                 •    Max 95/95% LTV/CLTV to $300,000 with 620 minimum credit score
                 •    Max 80/80% LTV/CLTV to $650,000 with 620 minimum credit score
                 •    Max Loan Amount $650,000
       • Loan amounts greater than $3,000,000:
            •    2-4 Units not allowed
            •    Loans must be prior underwritten by investor




Jumbo Fixed Rate                            January 2006                                     1 of 16
                  OWNER-OCCUPIED PRIMARY RESIDENCE
                              1-4 UNITS
                          Cash Out Refinance
    Max Loan Amount         Max LTV/CLTV        Minimum Credit Score
        $400,000                 90/95%                620
        $650,000                 90/95%                620
       $1,000,000               80/80% 1               620
       $1,500,000               75/75% 2               620
       $3,000,000                70/70%                700
       $6,000,000                55/70%                720

       3-4 Units:
       •    Max. 80/80% LTV/CLTV
       •    Max. Loan Amount: $1,500,000
            1. Max. 80/80% LTV/CLTV with 660 credit score
            2. Max. 70/70% LTV/CLTV with 680 credit score
       Condotels and Non-Warrantable Condos: Not Allowed
       Loan amounts greater than $3,000,000:
       •    2-4 Units not allowed
       •    Loans must be prior underwritten by investor
       Maximum Cash Out restrictions:
       •    LTV greater than 80%: $325,000
       •    LTV 55.01 to 80%: $500,000
       •    LTV less than or equal to 55%: No restrictions



                                    SECOND HOME
                                         1 UNIT
                                Purchase and Rate & Term
                                       Refinance
  Max Loan Amount                    Max LTV/CLTV               Minimum Credit Score
      $400,000                         95/95% 90/95%                   660 620

      $650,000                         90/90% 80/95%                   660 620

      $1,000,000                           80/80%                        620
      $1,500,000                           75/75%                        620
      $3,000,000                           70/70%                        700
      $6,000,000                           60/70%                        720



       • Condotels:
                 Max 80/80% LTV/CLTV to $350,000
                 Max 75/75% LTV/CLTV to $650,000
                 Max Loan Amount $650,000
       • Non-Warrantable Condos:
                 Max 90/90% LTV/CLTV to $400,000 with 680 minimum credit score
                 Max 80/80% LTV/CLTV to $500,000 with 620 minimum credit score
                 Max 75/75% LTV/CLTV to $650,000 with 620 minimum credit score
                 Max Loan Amount $650,000
       2-4 Units not allowed
       Loan amounts greater than $3,000,000:
                 Loans must be prior underwritten by investor.




Jumbo Fixed Rate                                January 2006                           2 of 16
                                     SECOND HOME
                                         1 UNIT
                                    Cash Out Refinance
    Max Loan Amount                  Max LTV/CLTV                  Minimum Credit Score
        $400,000                         90/90%                           620
        $650,000                         90/90%                           660
       $1,000,000                        80/80%                           620
       $1,500,000                        75/75%                           620
       $3,000,000                        65/70%                           700
       $6,000,000                        55/70%                           720
       • 2-4 Units, Condotels, and Non-Warrantable Condos:   Not Allowed
       • Loan amounts greater than $3,000,000:
               • Loans must be prior underwritten by investor
       • Maximum Cash Out restrictions:
               LTV greater than 80%: $325,000
               LTV 55.01 to 80%: $500,000
               LTV less than or equal to 55%: No restrictions



                                   INVESTMENT
                                     1-4 UNITS
                         Purchase and Rate & Term Refinance
  Max Loan Amount                  Max LTV/CLTV                     Minimum Credit Score
      $400,000                            90/90%                              620
      $650,000                        90/90% 80/90%                         660 1 620

      $1,000,000                          80/80%                              620
      $1,500,000                  70/80% 70/70% 65/70%                     720 660 620


      $3,000,000                        Not Allowed                           NA
      $6,000,000                        Not Allowed                           NA


       •   1 3-4 Units require 680 minimum credit score
       • Condotels:
           •    Max 80/80% LTV/CLTV to $350,000
           •    Max 75/75% LTV/CLTV to $650,000
           •    Max Loan Amount $650,000
       • Non-Warrantable Condos
                Max 75/75% LTV/CLTV to $350,000 with 620 minimum credit score
                Max 70/70% LTV/CLTV to $400,000 with 620 minimum credit score
                Max 65/65% LTV/CLTV to $650,000 with 620 minimum credit score
                Max Loan Amount $650,000




Jumbo Fixed Rate                               January 2006                                3 of 16
                              INVESTMENT 1-4 UNITS
                                 Cash Out Refinance

    Max Loan Amount                Max LTV/CLTV                   Minimum Credit Score
        $400,000                   90/90% 1 75/90%                     660 1 620

         $650,000                   90/90% 2 70/90%                     660 2 620

        $1,000,000                     80/80% 3                           620 3
        $1,500,000                 70/70% 3 60/60% 3                    660 3 620 3

        $3,000,000                        Not Allowed                      NA
        $6,000,000                        Not Allowed                      NA
       •    Condotels and Non-Warrantable Condos are not allowed
       • 1 1-2 Units only
                 2 Max 75/75% LTV/CLTV with 680 minimum credit score
                 3 Max 55/60% LTV/CLTV with 620 minimum credit score
       • Maximum Cash Out restrictions:
                 LTV greater than 55%: $500,000
                 LTV less than or equal to 55%: No restrictions


APPRAISAL                    Loan Amount                              Appraisal Requirement
REQUIREMENTS                 Loans less than or equal to $1,000,000   One full appraisal (1004)


                             Loans greater than $1,000,000 and less   One full appraisal (1004) plus one field
                             than $3,000,000                          review. The field review must be
                                                                      completed by an TWSB approved
                                                                      review appraiser
                             Loans equal to or greater than           One full appraisal (1004) obtained
                             $3,000,000                               from LandSafe Services’AND
                                                                      Investor internal substantiation of value
                                                                      from LandSafe Services
                                                                      OR
                                                                      One field review completed by
                                                                      SandSave Services
                                                                      AND
                                                                      Investor internal substantiation of value
                                                                      from LandSafe Services.

                                                                      The following restrictions apply:
                                                                               •    Mixed use properties are
                                                                                    not allowed (vineyards,
                                                                                    orchard and so on).
                                                                               •    Marketing time should
                                                                                    not exceed 12 months.




Jumbo Fixed Rate                             January 2006                                               4 of 16
                       Loans secured by properties located in Clark County, Nevada are subject to the
                     following minimum appraisal requirements:

                     Appraisal Performed by LandSafe Services Inc. No additional requirements apply.

                     Appraisal company other than LandSafe Services
                     Option 1 / Additional Appraisal Requirements: The appraisal must comply with
                     the following additional requirements:
                     • The most recent data available must be used for the comparable sales. At least two
                     of the comparable sales should have closed within 30 days of the effective date of the
                     appraisal.
                     • One current listing must be from the immediate subject neighborhood and
                     representative of competitive properties in the neighborhood. Caution is requested to
                     not use the highest listing available, but the listings most likely to sell (excluding the
                     distressed listings).
                     • When reconciling the final value, emphasis should be placed on the most current
                     data, as well as the comparables and listings most similar in location and other
                     physical aspects to the subject property.

                     Additional Guidelines for New Construction:

                     • When appraising new construction, both the contract/sales date (when the buyer
                     entered into the contract with the builder), and the closing date must be reported and
                     analyzed. Differences in market conditions between the contract/sales date and the
                     effective date must be analyzed.
                     • The appraiser must provide the builder names of the subject property, and the
                     comparables (if new construction also).
                     • The appraiser should provide at least one sale from within the subdivision and one
                     sale from outside the subdivision.

                     Option 2 / Full Appraisal with LandSafe Review: In lieu of the additional
                     requirements above, non-LandSafe appraisals may be submitted with a LandSafe
                     review. The review appraisal may be a desk review, field review or a LandSafe
                     Appraisal Review Analysis (LARA) that receives a quality rating of 3, 4 or 5.


ASSUMABILITY         Not assumable
CONTRIBUTIONS        LTV                           Owner Occupied Second Home             Investment
                     Greater than 90%                       3%        3%                  Not Allowed
                     Greater than 80% and less              6%        3%                   3%
                     than or equal to 90%
                     Less than or equal to 80%              6%        6%                  6%
CONVERSION OPTIONS   Not allowed
CREDIT CRITERIA      CRITERIA Borrowers are subject to all of the following credit requirements:
                     • Credit Score Designation is by FNMA methodology
                     • All borrowers must meet the minimum credit score requirements shown in the
                     Maximum LTV/CLTV tables.
                     • May not be delinquent currently on their mortgage or housing payment
                     • Minimum Credit History of 2 years
                     • Minimum number of tradelines: 3 (with at least one currently open and not be a
                     collection or charge-off)
                     • A minimum of two scores is required.

                     Non-Permanent Resident Alien/Foreign National:
                     For borrowers with no usable credit score or without U.S. sources, a non-traditional
                     or international credit report or three original credit letters from a lending institution
                     located in the country of origin, or a combination, is acceptable.

                                                       CREDIT HISTORY
                      Credit Issue                       Requirement
                      Revolving and Installment          Late payments are considered accounted for in



Jumbo Fixed Rate                        January 2006                                                    5 of 16
                                                      the credit score.
                    Mortgage Lates                    Maximum mortgage lates permitted are
                                                      • 1x30 in the last 12 months
                                                      • 0x60 in the last 24 months
                                                      :
                    Bankruptcy, Foreclosure,          Subject to individual evaluation
                    Deed-inlieu, Short Sale
                    History of Credit Counseling      A minimum of 12 months seasoning is required
                                                      on credit established since the credit counseling
                                                      was terminated
                    Judments, Collections,            Subject to individual evaluation.
                    Charge-Offs
                    Non-Traditional Credit            Allowed for Non-Permanent Resident Aliens
                    Report                            and Foreign Nationals only

                   Bankruptcy:
                   If a bankruptcy was disclosed on the borrower’s credit report, and it was determined
                   to be acceptable due to extenuating circumstances, the following documentation must
                   be included in the loan file, in addition to all the documentation required for
                   extenuating circumstances.
                              • Copies of the bankruptcy petition, schedule of debts, a schedule of the
                             debts discharged, and discharge certificate.
                              • Evidence to indicate that all debts not satisfied by the bankruptcy have
                             been paid or are being paid.
                             • Any other evidence necessary to support the Seller’s determination that
                             factors outside the borrower’s control caused the bankruptcy, and that the
                             borrower has re-established an acceptable credit reputation.

                   Foreclosures and Collections: To document the acceptability of the borrower’s
                   credit despite derogatory or adverse credit information caused by financial
                   mismanagement, the loan file must contain the following:
                             • Evidence on the credit report and other credit documentation that the
                             borrowers have reestablished acceptable credit for at least 4 years. Note: If
                             the derogatory information involved tradeline credit, the reestablished
                             reputation must also be for tradeline credit. If the derogatory information
                             involved non-credit payment references, either tradelines or non-credit
                             payment references can be used.
                             • Evidence on the credit report and other credit documentation that all of
                             the borrower’s credit is current.
                             • Evidence that no new public records, no 60-day late payments, and no
                             more than two 30-day payments exist for the most recent 48 months.
DOCUMENTATION      Full/ Alternative Documentation required.
REQUIREMENTS
                   *Loans greater than $3,000,000: The additional documentation is required:

                   INCOME
                      Two years tax returns (all borrowers)
                      Most recent quarterly filing (if applicable)
                      Two most recent pay stubs (salaried)

                   ASSETS
                      Two most recent asset statements

                   Foreign National/Non-Permanent Resident Alien Documentation:
                   Foreign National :
                       Residency visa to periodically visit or live in the United States for a limited
                   amount of time. Eligible visas are: B-1, B-2, E-1, E-2, G1 through G-5, I, J-1, J-2, K-
                   1, O-1, and R-1.
                       Copy of unexpired passport.
                       Social Security Number or a copy of the “Certificate of Foreign Status of
                   Beneficial Owner for United States Tax Withholding” Form W-8BEN.
                       Documentation for employment:



Jumbo Fixed Rate                     January 2006                                                  6 of 16
                               • All income must be converted to US dollars for qualifying purposes.
                               • Self-Employed: IRS form 4506 or 8821, as applicable, is required if the
                               borrower files US tax returns.
                               • Salaried: Employment must be verified through customary sources (for
                               example, W-2s or equivalent, VOE, paystubs, or letter from the borrowers
                               employer). The documentation must state the monthly income for the
                               previous two years

                     Non-Permanent Resident Alien:
                     It must be documented that the borrower is a legal resident with a US source of
                     income that can be expected to continue for three years. Therefore, work permits
                     should have at least three years until the expiration date.

                     Documentation requirements are:
                          Salaried: A minimum of two years employment must be verified through
                     customary sources ( for example, W-2s or equivalent, VOE, paystubs, or letter from
                     the borrower’s employer). The documentation must state the monthly income for the
                     previous two years.
                          Self-Employed: Copies of the borrower’s signed federal income tax returns that
                     were filed with the IRS for the previous two years. Both individual and business
                     returns must be provided with all applicable schedules attached.

                     Residency:
                     The following documentation is required to verify residency:
                          Verification that the borrower is authorized to work in the US and the US source
                     of income
                          Evidence of a visa that allows the borrower to reside and work in the US for a
                     limited amount of time. There is no minimum time required to be left on the visa;
                     however, underwriter discretion is advised. If there is less than six months
                     remaining, the borrower should provide a letter explaining his/her intention to remain
                     in the county, and a copy of their application for the visa extension.

ELIGIBLE BORROWERS     Borrower Type        Owner-Occupied         Second Home           Investment
                      U.S. Citizen           • Allowed           • Allowed             • Allowed
                      Permanent             • Allowed             • Allowed            • Allowed
                      Resident Alien
                      Foreign National      Maximum loan         Maximum loan
                                            amt:                 amt:
                                            $1,000,000           $1,000,000

                                            • Purchase and       • Purchase and
                                            Rate & Term:         Rate & Term:
                                            Maximum              Maximum
                                            80/80%LT             75/75%LT
                                            V/CLTV               V/CLTV

                                            • Cash Out:          • Cash Out:
                                            Maximum              Maximum
                                            70/70%               65/65%
                                            LTV/CLTV             LTV/CLTV

                                            • 80/20 Option:      • 80/20 Option:
                                            Not allowed          Not allowed

                      Non-Permanent         • Maximum            • Maximum             Not allowed
                      Resident Alien        Loan amount:         Loan amount:
                                                                 $1,500,000
                                            $1,500,000
                                            • Purchase and       • Purchase and
                                            Rate & Term:         Rate & Term:
                                            Maximum              Maximum



Jumbo Fixed Rate                       January 2006                                                  7 of 16
                                          90/90%LT               90/90%LT
                                          V/CLTV                 V/CLTV

                                          • Cash Out:            • Cash Out:
                                          Maximum                Maximum
                                          70/70%                 70/70%
                                          LTV/CLTV               LTV/CLTV

                                          • 80/20                • 80/20
                                          Option:                Option:
                                          Not allowed            Not allowed

                    Non-Occupant          Income from            Not applicable        Not allowed
                    Co-Borrower           nonoccupant
                                          Coborrowers can
                                          be used to qualify
                                          if:
                                          • Full/Alt doc
                                          only

                                          • Immediate
                                          Family member

                                          • Maximum
                                          90/90%
                                          LTV/CLTV

                                          • Occupant
                                          Ratios should not
                                          Exceed guidelines
                                          by more than 5%\

                                          • Occupant must
                                          provide 5% of the
                                          required down
                                          payment.

GEOGRAPHIC         Loans in excess of $650,000 are restricted to major metropolitan areas, or to areas
RESTRICTIONS       where there is sufficient marketability, as established in the appraisal, for upper-end
                   properties.

                   • Treat any area considered a soft market area conservatively. For loans in an
                   identified soft market area, the maximum LTV must be reduced by 5%.

                   Alabama - The following counties have been designated as soft market areas:
                               Bullock
                               Macon
                   Alaska
                          > Restricted Lending Areas: Fairbanks
                                       Properties built prior to June 1992 and located outside of the
                                       city limits of Fairbanks but located in the surrounding
                                       communities require a clear engineering report OR evidence
                                       that the property meets the Alaska Housing Finance Agency
                                       property inspection requirements.
                          > The following additional restrictions apDlv for Cash Out transactions:
                                     Confomring loans:
                                                The maximum allowable L TV is the lesser of 85%
                                                or as allowed by the individual loan program
                                                guidelines.
                                     Non-conforming ARM loans (excluding fixed period ARMs
                                     3/1,511,7/1 or 10/1):




Jumbo Fixed Rate                      January 2006                                                   8 of 16
                                               . Owner-occupied primary residences only
                                               . Maximum L TV is the lesser of 75% or as
                                               allowed by the individual loan program.
                     Arkansas – Closed-end seconds and equity lines of credit (HELOC) are not
                   allowed.

                    California

                     Conforming loan programs secured by 3-4 unit properties in California must be
                   delivered with an Approve/Eligible DU or Accept LP Certificate. Loans secured by
                   3-4 unit owner-occupied properties must include an Occupancy Certificate in file
                      Big Rock Mesa (Malibu) and Castellamare (Pacific Palisades) - All of the
                   following conditions apply to any loan if the subject property is located in the
                   Castellamare area of Pacific Palisades or on the following streets in the
                   Big Rock Mesa Area (Malibu):

                               Big Rock Drive       McAnany Way       Rockcroft Drive Seaboard Way
                               Cool Oak Way         Piedra Chica Road Rockpoint Way    Seamore Drive
                               Inland Way           Pinnacle Way      Rockport Way     Whitecap Way
                               Little Rock Way      Roca Chica Drive Royal Stone Drive

                               Due to earth slippage and land slides, the following conditions apply:
                                •      Verify soil engineer’s report stating soil is stable and not subject to
                                    future expansion, slippage or slide activity.
                                •   Verify structural engineer’s report confirming dwelling and any
                                     outbuildings or garages have not been affected by soil expansion,
                                     slippage or land slides and are in, at least, good condition.
                                •    Homes on septic systems are not acceptable.
                                •    Borrower must sign a Borrower Property IndemnificationCertificate.

                                         *For more specific location information, the referenced streets
                                         may be located in the most current copy of the Thomas Bros.
                                         Guide for Los Angeles

                               •      Oakley, Contra Costa County – Purchase transactions only – The
                                    DuPont Chemical Plant, located at 6000 Bridgehead St., Oakley, CA
                                    is considered a potential environmental hazard site. The appraiser is
                                    responsible for making appropriate comments on the appraisal report
                                    regarding the potential hazard. If the appraiser determines that the
                                    property is located within one mile of the site or any impact is noted
                                    on the appraisal, the borrowers are required to sign the Notice to
                                    Prospective Buyers of Properties form acknowledging that the
                                    property is near a source of potential hazard.

                    Florida

                               •    Dade County – All loans require a completed Fraud indicator
                                     Checklist, call for a sample
                               •     For condominiums and attached PUDs, maximum financing is
                                      allowed, but the projects must be reviewed for right of first refusal.

                    Hawaii

                               •    Big Island of Hawaii – Loans originated in lava flow zones #1 and #2
                                    are not allowed.
                               •    Equity loans may not exceed 12% interest rate APR

                    Maine

                               •    The adjustment cap for first lien ARM loans is restricted to a
                                    maximum increase of 2% per year.




Jumbo Fixed Rate                       January 2006                                                    9 of 16
                            •    Loan programs that do not have adjustment caps on the interest rate
                                  changes are ineligible.
                            •     Closed-end fixed rate second balloon loans are not allowed.

                     Massachusetts – Title V states that dwellings with individual sewage disposal
                   systems, new and existing, must be inspected by a DEP approved inspector and,
                   where repairs are indicated, be repaired prior to loan closing for all purchase
                   transactions.

                    Missouri – St. Louis, Green Jade Estates Subdivision: financing is not allowed

                    Montana – No loan may be secured by property of more than 40 acres

                     Nevada - Loans secured by properties located in Clark County, Nevada are subject
                   to the following minimum appraisal requirements:

                            Appraisal Performed by LandSafe Services Inc. No additional
                            requirements apply.

                            Appraisal company other than LandSafe Services
                            Option 1 / Additional Appraisal Requirements: The appraisal must
                            comply with the following additional requirements:
                                     •    The most recent data available must be used for the
                                          comparable sales. At least two of the comparable sales
                                          should have closed within 30 days of the effective date of
                                          the appraisal.
                                     •    One current listing must be from the immediate subject
                                          neighborhood and representative of competitive properties
                                          in the neighborhood. Caution is requested to not use the
                                          highest listing available, but the listings most likely to sell
                                          (excluding the distressed listings).
                                     •    When reconciling the final value, emphasis should be placed
                                          on the most current data, as well as the comparables and
                                          listings most similar in location and other physical aspects to
                                          the subject property.
                                     •
                                     Additional Guidelines for New Construction
                                     •    • When appraising new construction, both the contract/sales
                                          date (whenthe buyer entered into the contract with the
                                          builder), and the closing datemust be reported and analyzed.
                                          Differences in market conditions betweenthe contract/sales
                                          date and the effective date must be analyzed.
                                     •    • The appraiser must provide the builder names of the
                                          subject property, and the comparables (if new construction
                                          also).
                                     •    • The appraiser should provide at least one sale from within
                                          the subdivision and one sale from outside the subdivision.

                            Option 2 / Full Appraisal with LandSafe Review: In lieu of the
                            additional requirements above, non-LandSafe appraisals may be submitted
                            with a LandSafe review. The review appraisal may be a desk review, field
                            review or a LandSafe Appraisal Review Analysis (LARA that receives a
                            quality rating of 3, 4 or 5.

                   New York –
                           •       New York consolidation, extension and modification refinance loans
                                 are not eligible.
                            •       State law requires that MI be removed when the LTV reaches 75%.
                                 A mortgagor cannot be required to pay the cost of continuing
                                 mortgageinsurance when the unpaid principal amount of the real estate
                                 loanrepresents 75% or less of the appraised value at the time the loan



Jumbo Fixed Rate                     January 2006                                              10 of 16
                                   wasmade.
                             •       MI is not allowed on loans allowing negative amortization or
                                   potential negative amortization.

                   South Carolina – Closed-end fixed rate second balloon loans in the state of South
                   Carolina are not allowed.

                     Tennessee – HELOC terms are limited to 10 year draw period/10 year repayment
                   period.

                     Texas –

                             •        Cash out refinances are permitted on true second homes and
                                   investment properties only. A copy of the borrower’s most recently
                                   filed tax returns must be supplied evidencing the property has been a
                                   second home or investment property for at least the most recent 12
                                   months. It must be verified with the title company that the property is
                                   not considered the borrower’s homestead, and the borrower must
                                   submit an affidavit that the property is not his/her Texas homestead.

                             •       In the event of cash out on reduced documentation, or other
                                   programs that prohibit income verification, it is acceptable to include
                                   only the appropriate tax return schedule. This schedule must include
                                   the title evidence validating that the property has been a second home
                                   or investment property for at least the preceding 12 months.

                             •      All refinance transactions require a completed Texas Refinance
                                   Worksheet (See Forms and Exhibits link at
                                   www.TWSBmortgage.com)

                   West Virginia

                             •     Loans that are refinanced within 24 months of the original loan must
                                    include a completed Tangible Net Benefit Worksheet in the loan file.
                                    You may obtain the worksheet from the following website:
                                    http://www.wvdob.org/professionals/docs/Tangible_Net_Benefit
                                    _Worksheet_2002.pdf

                             •     Loans originated under No Ratio and No Income No Asset (NINA)
                                    documentation are not allowed.

                              •   The maximum LTV/CLTV allowed is 100%
GIFTS              Gifts are allowed subject to the additional restrictions noted in the following table:

                                                       GIFT FUNDS
                    Occupancy                           Owner-occupied primary residence
                    Source                              Relatives, domestic partner or fiancé/fiancée
                                                        only
                    Percentage of Borrower’s Own        5%
                    Funds Required on the Loan          Exception: On loan amounts less than or equal
                    Transaction                         to $650,000 where the LTV/CLTV is 80% or
                                                        less, the entire down payment may be a gift.


                   Ineligible for Gift Funds: Second Homes, investment properties and 100% CLTV
                   loans

MAXIMUM LOAN       See maximum LTV/CLTV tables above
AMOUNT
MINIMUM LOAN       Minimum loan amount must be greater than the current conforming loan limit. *
AMOUNT
                   *Loan amount less than minimum loan amount allowed if the loan does not meet
                   conforming guidelines but will meet non conforming.



Jumbo Fixed Rate                      January 2006                                                 11 of 16
MULTIPLE PROPERTY   The occupancy of the property being financed will determine the limitations on how
OWNERSHIP           many other financed 1-4 family properties the borrower may own.

                    Allowable number of properties:
                     Owner-Occupied                                     No Restrictions
                     Second Home                                        4
                     Investment Property                                No Restrictions
NEGATIVE            N/A
AMORTIZATION
NON-ARMS LENGTH     Allowed
TRANSACTIONS
OCCUPANCY           •      Owner Occupied
                    •      • Second Home
                    •      • Investment

                    * To ensure occupancy status, owner-occupied properties secured by 3-4 units will be
                    subject to additional review if the borrower also owns investment properties

PRIVATE MORTGAGE    •      Mortgage insurance coverage requirements are detailed in the following tables
INSURANCE
                                                         MI COVERAGE
                                        All Property Types Except Non-Warrantable Condos

                                          LTV                                                %
                                       90.01-95%                                            30%
                                       85.01-90%                                            25%
                                       80.01- 85%                                           12%

                                                           MI COVERAGE
                                                        Non-Warrantable Condos

                                          LTV                                                %
                                       90.01-95%                                            30%
                                       85.01-90%                                            25%
                                       80.01- 85%                                           20%

                    Acceptable MI companies for this program are:
                    GE       MGIC     PMI      RMIC TRIAD UGI

PROPERTY TYPES      Eligible Property Types

                        Attached SFRs
                         Detached SFRs
                          Attached PUDs
                           Detached PUDs
                            Low-Rise Condominiums
                             High-Rise condominiums
                              Non-Warrantable Condos
                               Condotels
                                Factory-Built Housing 1 ( Modular, Panelized and Prefabricated)
                                  2-4 Units 2
                                 Rural properties <=20 Acres (see Rural Property tables below)
                                          1 Includes modular, panelized and prefabricated classification of factory-
                                          built housing. A Log home is a unique example of prefabricated (pre-cut)
                                          factory-built housing, and is defined as a partially prefabricated dwelling,
                                          constructed using a log wall system of solid wood walls, four inches or
                                          more thick, sold as a Home Kit either with or without all materials to fully
                                          enclose the structure, having conventionally framed interior walls, rafter or
                                          truss system roofs, and conventionally built floor decks. Kits generally
                                          include pre-cut materials necessary to construct the dwelling as defined, as
                                          well as plans and specifications for construction. Materials are not always



Jumbo Fixed Rate                          January 2006                                                       12 of 16
                             pre-cut to exact design specifications; minor modifications may be required
                             at the time of on-site construction. Log homes are allowed under this
                             program; however must meet the definition of prefabricated, as described
                             above.

                             2 2-4 Units are subject to the following restrictions:
                                         Refinance of owner-occupied 2-4 unit properties require an
                                       occupancy inspection; the homeowner’s policy must show that
                                       the mailing address and property address are the same

                                         2-4 units are not eligible for second homes


                    RURAL PROPERTIES SUBJECT TO REQUIREMENTS BASED ON LOT
                    SIZE
                    Note: If a location is not designated in the appraisal as rural, the property may
                    be deemed as rural if the area meets any of the characteristics listed in the
                    following table

                     Lot size less than or equal to 10 acres    Lot size greater than 10 acres, but
                                                                less than 20 acres
                          Must be an owner-occupied                   Must be an owner-occupied
                     primary residence or second home           primary residence or second home
                          Loan amount may not exceed                  Loan amount may not exceed
                     $1,000,000                                 $1,000,000
                          The appraisal must indicate a               Maximum 90% CLTV
                     marketing time of 6 months or less to            Two full appraisals are required.
                     ensure values are stable or appreciating   The value must be based on the lower
                          Subject property parcel may not       of the two appraised values
                     have been split from a larger parcel       The second appraisal must be from
                     which has agricultural use                 an investor approved appraisal
                          Working farms, ranches, orchards,     company. Comparables should be
                     and/or commercial operations are           of similar acreage to the subject
                     not permitted                              property.
                          All comparable sales must be                The appraisal must indicate
                     located within 5 miles of subject          property values are stable or
                     property                                   appreciating
                          Subject property must have                  The appraiser must comment on
                     adequate sewage, water and utilities       the appraisal that the property is not
                     available and in service                   being used as a working farm, and is
                          Subject property must be              typical for the area
                     accessible by roads that meet local              No more than 35% of the
                     standards                                  appraised value may be attributed
                                                                to land value
                                                                      Subject property parcel may not
                                                                have been split from a larger parcel
                                                                which has agricultural use
                                                                      Subject property may not be an
                                                                over-improvement
                                                                      Subject property must have
                                                                adequate sewage, water, and
                                                                utilities available and in service
                                                                      Subject property must be
                                                                accessible by roads that meet local
                                                                standards


                    Ineligible Property Types
                    • Cooperatives
                    • Factory-Built Housing (Manufactured
QUALIFYING RATE     Note rate
QUALIFYING RATIOS        Qualifying ratio is 40%



Jumbo Fixed Rate                      January 2006                                               13 of 16
                            80/20 Option: Maximum Qualifying ratio is 45%
                            Loans greater than $3,000,000: Debt-to-income ratio of 50% allowed with
                                 compensating factors as determined by investor’s prior underwrite

                      QUALIFYING RATIOS OVER 40% with DU or LP Approval allowed with the
                      following restrictions:

                      o Full/Alt doc only (No documentation relief by AUS allowed)
                      o 1-2 unit primary residence or 1-unit second home
                      o Maximum loan amount $650,000
                      o “Approve” Recommendation from DU or “Accept” Risk Class from LP
                      o Minimum Fico Score of at least 660:
                                   Maximum total debt ratio doesn’t exceed 50%; OR
                      o Minimum Fico Score of at least 620:
                                   Maximum total debt ratio doesn’t exceed 45%
                                   No Interest-only feature
                      o No housing payments 30 days or more past due in the last 12 months
                      o No foreclosure or bankruptcy in the last seven years

RESERVES                Loan Amount             Owner-Occupied Second Home                Investment
                        Less than or equal 2 months                  6 months              6 months
                        to $3,000,000
                        Greater than            9 months             9 months             Not applicable
                        $3,000,000
SECONDARY FINANCING   FINANCING Secondary financing is allowed with the following restrictions:
                      • Negative amortization on subordinate financing is not allowed.
                      • The term of the loan cannot be less than 5 years, unless the financing fully
                      amortizes prior to that time.
                      • The loan term must provide for regular payments of principal and interest, or
                      interest only.
                      • If the loan has a variable rate:
                                      The total amount of secondary or subordinate financing must fully
                                 amortize during the term of the loan.
                                  AND
                                      The combined annual payment adjustments of the loan and the
                                 secondary or subordinate financing cannot exceed the lesser of a 2%
                                 interest rate increase, or an 8.50% payment increase.

SEASONING                 Transaction                    Calculation Based On:
REQUIREMENTS              Purchase                       The LTV/CLTV1 is based on the lesser of the
                                                         sales price or appraised value.
                          Rate and Term Refinance        The LTV/CLTV 1,2 is based on the current
                                                         appraised value.
                          Cash Out Refinance             The LTV/CLTV/HCLTV 2 is based on the
                                                         current appraised value.

                                 1 HCLTV (home equity line of credit combined loan-to-value) is ineligible
                                 for this product.
                                 2 If the property has been owned less than 12 months and the appraisal
                                 shows a substantial increase in value from the original purchase price, the
                                 appraiser should ensure the increase in value is valid

                      Note: Rate and Term Refinance transactions are subject to the following loan
                      program requirements:

                      First Lien: A minimum of 12 months seasoning is required. Less than 12 months
                      seasoning is allowed if the borrower did not receive cash proceeds from the
                      transaction
                      Second Lien: A minimum of 12 months seasoning is required, unless funds were
                      used for the original purchase of the home or for completing home improvements.




Jumbo Fixed Rate                         January 2006                                              14 of 16
TEMPORARY BUYDOWN   Not Allowed
TERM/AMORTIZATION   30 years

UNDERWRITING        • Manual Underwrite
                    • DTI ratios over 40% may utilize DU or LP with restrictions. See Qualifying Ratios
                    topic above.

                    * Loans greater than $3,000,000 must be submitted to the investor for prior
                    underwriting.




Jumbo Fixed Rate                      January 2006                                                15 of 16
                                               Exhibit A
                                     Approved Review Appraisal Firms

      Appraisal Companies                       Office Phone                  Fax
LandSafe Appraisal Services, Inc.    877 – 572-5673            888-626-8452
Lender Service, Inc. (LSI)           800-574-2567              800-638-7891
Hansen Quality Appraisal Service     858-483-6101              858-483-9493 or 3253
First American eAppraiseIT.Com       800-281-6200              800-681-6023
(formerly First American Appraisal   Extension 6977
Services)
Nationwide Appraisal Services        800-920-0050              800-396-2726
Corporation
Appraisal Enhancement Services       800-657-2400              800-668-8585
Property Sciences Group, Inc.        925-246-7300              925-680-8800
(California only)
Metropolitan Advisors (Southern      562-462-9250              562-462-9260
California only)
Nations Valuation Services           858-456-7604              858-456-7606
(formerly Revco)
Apple Appraisal                      925-313-5900              925-313-5906




Jumbo Fixed Rate                               January 2006                           16 of 16

				
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