SPECIALTY LENDING RETAIL GUIDELINES Revised 11/10/2014

SPECIALTY LENDING RETAIL GUIDELINES
Revised 11/10/2014
Stated Income Verified Assets
Program 1770
Loan Purpose
Purchase
Rate & Term
Units
1/PUD
Cash Out
Loan Purpose
Purchase
Rate & Term
Document Type
Product
Min. Loan Amount
LTV
70
60
CLTV
70
60
70
70
Units
LTV
CLTV
1/PUD
60
60
Primary Residence
Loan Amount
$1,000,000
$2,000,000
$1,000,000
Second Home
Loan Amount
$750,000
Max Cash Back
FICO
DTI
700
33%/43%
Max Cash Back
FICO
DTI
N/A
700
33%/43%
N/A
$400,000
To be manually underwritten. Require Fannie Mae 3.2 with Approve/Ineligible or similar status. All loans require loan committee review and approval
5/1 ARM and 7/1 ARM Interest rate caps 5/2/5 Index 1 year Libor Interest rate floor equals the start rate. Arm qualified on greater of note rate or fully indexed rate.
$417,001
700 MIN FICO. Minimum 2 open and active trade lines open for at least 24 months.
Credit Score & History Payments: 0x30 day late housing within last 24 months, 0x30 day late revolving and installment within past 12 months.
Non-traditional credit is not acceptable.
Adverse Credit
Eligible Bwrs
Ineligible Bwrs
No bankruptcies, foreclosures, deed in lieu of and modifications permitted. Consumer Credit Counseling is treated the same as bankruptcy and therefore not permitted.
US Citizens, permanent resident alien, non- permanent resident alien (must permanently reside in the US and have 2 yrs. residency, 2yrs credit and 2yrs employment).
Self-Employed Only
Non-occupant co-borrowers, non-occupied borrowers, Borrowers who are principal or employees of third party originators, Borrower affiliated with the builder, developer,
or property seller
Ineligible Transactions Non-Arms Length Transactions (Gift of Equity, sale by owner and any other non-arms length transaction), Property in Estate, Employer/Employee Sales, Flip Transactions
In addition to the subject property, the borrower(s) may not own more than three(3) additional financed properties.
Multiple Property
Properties owned which are free and clear of any financing do not count toward this limitation. Departing residence rules apply
Ownership
Liquidity Verified
Assets
Revised 11/10/2014
Must be borrower's own funds. Cash, cash equivalent securities and other readily marketable securities may be used as verified liquidity.
Liquidity minimums are calculated after closing and do not include proceeds from cash out on current loan
Loans amount <=$650,000, minimum liquidity = $100,000
Loans amount >$650,000 to $1,000,000, minimum liquidity = $2500,000
Loans amount >$1,000,000 to $1,500,000, minimum liquidity = $500,000
Loans amount >$1,500,000, minimum liquidity = $1,000,000
Min. 3 months Bank statements for both business and personal assets must be provided
Business account assets must be discounted to 33% of current balance
Stocks, Bonds, and mutual funds must be discounted to 70% of the current balance
Borrower(s) must be of retirement age (59 1/2) in order for retirement assets to be used at 70% of the current balance. If not retirement funds must be liquidated to be used.
Retail Page 1
Stated Income Verified Assets (cont)
Income Documentation
Gift Funds
Appraisals
Property Type
A full disclosure of income, assets, and liabilities is required on 1003
Self-Employed borrowers must have been self-employed for a minimum of two (2) years in same line of business
Self-Employed business number must be verified via 411 or internet
Self-Employed business license or CPA letter verifying borrower's ownership of business for last two (2) years
Rental agreements must be provided if rental income is used to qualify
Passive income (retirement, soc securit, trust, interest dividend, annuity, child support etc. must be fully verified)
Min. 3 months Bank statements for both business and personal assets must be provided. Stated income levels are to be validated by documentation in file to be determined reasonable.
For Ex. average monthly deposits should support income levels or other documentation must be provided.
Not allowed
Standard FNMA guidelines apply along with the following requirements:
All health and safety issues need to be addressed/satisfied
All transactions with a loan amount > $750,000 will require desk review
Properties that have been listed for sale within 3 months of application date are not eligible
Maximum 20% appreciation if subject property was purchased in last 6 months Additional restrictions may apply
1 Unit/PUD
10 acre limit, no hobby farms
Condominimums, Multi-Family Units, Condo-tels, and Cooperative properties are not eligible
Seller Contributions
Maximum 3% interested party contributions
Seasoning
Liens on the property must be seasoned for a minimum of 6 months.
If the lien is a HELOC, it must be seasoned 12 months with no draws taken in the previous 12 months.
Properties listed within 3 months of application date are not eligible for financing
Subordination
Agreement
Subordination agreement is mandatory, if applicable
Eligible States
Available in All States except: AK, FL, NJ, and NY
Buy Down, Temporary Temporary Buy Downs are currently not permitted
Revised 11/10/2014
Retail Page 2
12 MO BANK STMT W/P and L (50% LTV to $2.5M)
PROGRAM 1470
Primary, 2nd Home, Investment Properties - Owner Occ and Non-Owner Occ Properties
Purchase, Rate/Term & Cash-Out Refinances
DTI 43% DTI over 43% requires residual income equal to (.45%) of UPB Max DTI 55% by exception only
Property Types
Maximum Loan Amount
Maximum Cash-Out Minimum FICO
$1,000,000
1 Unit SFR and PUDs
$2,500,000
Max Loan Amt
620
$50,000
$1,500,000
Condos and 2-4 Unit
50%
70%
$2,500,000
NA
Document Type
To be manually underwritten. Require Fannie Mae 3.2 with Approve/Ineligible or similar status. All loans require loan committee review and approval
5/1 ARM and 5/1 I/O only. Loans qualified off of rate + 2%. High cost mortgage loans are ineligible (must meet Section 32). * Only institutional secondary financing will be accepted
Product
Minimum three (3) active trade lines open for at least 24 months. One (1) installment tradeline within the last thirty six (36) months
Credit Score & History
As noted on the credit report, however if the mortgage is not listed on the credit report a 24 month VOM showing no late mortgage payments is required or a 24 month VOR for
Mortgage & Rental History with no late rental history is required. 0x30 in the last 24 months
Adverse Credit
Ineligible Bwrs
Multiple Property Ownership
Assets
Reserves
Income
Maximum LTV
55%
50%
Maximum CLTV/HCLTV*
75%
70%
Minimum Loan Amount
No Bankruptcies in the last four (4) years. One (1) year for foreclosure/short sale (subject to rate adjustment)
Foreign nationals, Non-arms length transactions.
Maximum ten (10) total financed properties including the subject property
Business funds acceptable only if bwr is 100% owner of business (cannot be used for cash to close). Bwr must contribute at least 30% from own funds for purchase transactions
Loan Amt
Required Reserves
See table regarding reserve requirements for subject property. Six (6) months additional
Up to $1,000,000
9 months
reserves required on all other financed properties
$1,000,001
$1,500,000
12
months
-Business accts acceptable for reserves; not for determining Ability to Repay - provided
$1,500,001
$2,500,000
18
months
bwr is sole owner of business
Tax returns, signed 4506T and transcripts are NOT required. Options for income verification (NOTE: all options below require 12 months personal bank statements to verify income and a CPA letter verifying minimum two
(2) years self employment):
P&L Option - borrower income verification utilizing a business P&L statement
Self employed borrowers with 100% ownership
• Most recent year's P&L prepared or reviewed by CPA
CPA or Accounting Firm Letter and Tax Returns Option
Self employed borrowers with 25% or more ownership
• CPA or accounting firm letter stating business income taken by the bwr over the last two tax years
• CPA or accounting firm prepared P&L statement for the last two (2) years
Personal Bank Statements Option
Self employed borrowers with 25% or more ownership
• Twelve (12) month P&L prepared by borrower, 3rd party CPA or tax preparer covering the same time period as bank statements
* Only institutional secondary financing will be acceptable
All files must be submitted with an AVM, BPO, or Appraisal
High Priced Mortgage Loans require escrow.
Revised 11/10/2014
Retail Page 3
12 MO BANK STMT W/P and L (50% LTV to $2.5M)
PROGRAM 1470
Employment
Gift Funds
Refinance Transactions
2 year history; Requires valid third party verification (CPA, Business License) w/i 30 calendar days of Note. Business phone number must be verifiable via 411 or internet
Acceptable after 30% minimum down payment made from borrower's own funds
12 month seasoning required unless Delayed Purchase Refinance. Properties listed for sale in the last 12 months are ineligible for Cash Out. Impounds required
Standard FNMA guidelines apply along with the following requirements:
Loan Amount
Appraisal Requirement
Appraisals
• LTV will be based on the lower of the Two Full URARs and the purchase price
for purchase money loans
• Appraisals are good for 120 days. Recert of value not acceptable
Residual Income
Eligible States
Loans with DTI ≥ 43% require residual income of 0.0045 (0.45%) of the unpaid principal balance of the loan
Eligible for all states GBL is authorized to lend in
Up to $1,000,000
One (1) Full Appraisal
Must have 3 sold comps in past 6 months
$1,000,001 - $2,500,000
Two (2) Full Appraisals
Must have 5 sold comps in the past 12 months
**High Cost Mortgage Loans are ineligible (must meet section 32)
Revised 11/10/2014
Retail Page 4
FULL DOC PROGRAM (50% LTV to $2.5M)
PROGRAM 1460
Property Types
1 Unit SFR and PUDs
Condos and 2-4 Unit
Document Type
Product
Credit Score & History
Mortgage & Rental History
Adverse Credit
Ineligible Bwrs
Multiple Property Ownership
Assets
Reserves
Income
Employment
Gift Funds
Refinance Transactions
Appraisals
Residual Income
Eligible States
Revised 11/10/2014
Maximum LTV
55%
50%
1 YR OUT OF FORECLOSURE
ASSET DEPLETION
Primary, 2nd Home, Investment Properties - Owner Occ and Non-Owner Occ Properties
Purchase, Rate/Term & Cash-Out Refinances
DTI 43% DTI over 43% requires residual income equal to (.45%) of UPB Max DTI 55% by exception only
Maximum CLTV/HCLTV*
75%
70%
Minimum Loan Amount
Maximum Loan Amount
Maximum Cash-Out Minimum FICO
$1,000,000
$2,500,000
Max Loan Amt
620
$50,000
$1,500,000
50%
70%
$2,500,000
NA
To be manually underwritten. Require Fannie Mae 3.2 with Approve/Ineligible or similar status, AVM, BPO or appraisal for submission. All loans require loan committee review.
5/1 ARM and 5/1 I/O only. High cost mortgage loans are ineligible (must meet Section 32). * Only institutional secondary financing will be accepted
Minimum three (3) active trade lines open for at least 24 months. One (1) installment tradeline within the last thirty six (36) months
As noted on the credit report, however if the mortgage is not listed on the credit report a 24 month VOM showing no late mortgage payments is required or a 24 month VOR for with no late rental
history is required. 0x30 in the last 24 months
No Bankruptcies in the last four (4) years. One (1) year for foreclosure/short sale (subject to rate adjustment)
Foreign nationals, Non-arms length transactions.
Maximum ten (10) total financed properties including the subject property
Minimum two (2) most recent bank statements required
Business funds acceptable only if bwr is 100% owner of business (cannot be used for reserves). Bwr must contribute at least 30% from own funds for purchase transactions
Loan Amt
Required Reserves
See table regarding reserve requirements for subject property. Six (6) months additional
Up to $1,000,000
9 months
reserves required on all other financed properties
$1,000,001 - $1,500,000
12 months
•Business accts acceptable for reserves; not for determining Ability to Repay - provided
$1,500,001 - $2,500,000
18 months
bwr is sole owner of business
IRS transcripts executed on all transactions
Standard income documentation required:
• Wage earners require two (2) years W2s along with most recent pay stub showing minimum 30 days YTD income
• Self employed borrowers require two (2) year tax returns with all pages and schedules
Asset Depletion (limited to max 50% LTV/CLTV):
Eligible assets: cash or cash equivalent; marketable securities (i.e.- CDs, money market accts, stocks, bonds, and mutual funds). Retirement assets may only be used if bwr is of retirement age (59 1/2)
Income calculated off of 20yr amortization
If asset depletion is used for partial income (e.g. - retirement income AND asset depletion) - income from asset depletion is limited to income from other sources: i.e. If retirement income is $50,000/yr then allowable
contribution to income from asset depletion will be $50,000/yr giving a total income of $100,000/yr
2 year history; Requires valid third party verification (CPA, Business License) w/i 30 calendar days of Note. Business phone number must be verifiable via 411 or internet
Acceptable after 30% minimum down payment made from borrower's own funds
12 month seasoning required unless Delayed Purchase Refinance. Properties listed for sale in the last 12 months are ineligible for Cash Out
Standard FNMA guidelines apply along with the following requirements:
• LTV will be based on the lower of the Two Full URARs and for purchase money loans, the
purchase price
• Appraisals are good for 120 days. Recert of value not acceptable
Loan Amount
Appraisal Requirement
Up to $1,000,000
One (1) Full Appraisal
Must have 3 sold comps in past 6 months
$1,000,001 - $2,500,000
Two (2) Full Appraisals
Must have 5 sold comps in the past 12 months
Loans with DTI ≥ 43% require residual income of 0.0045 (0.45%) of the unpaid principal balance of the loan. Max DTI of 55%
Eligible for all states GBL is authorized to lend in
Retail Page 5
JUMBO A PROGRAM (65% LTV to $2.5M)
PROGRAM 1040
PURCHASE and RATE/TERM REFINANCE
Occupancy
Units FICO
1
Primary
720
Loan Amount
$417,001 - $1,000,000
Max LTV/CLTV
80% / 80%
700
$417,001 - $1,000,000
75% / 75%
740
$1,000,001 - $1,500,000
80% / 80%
$1,000,001 - $1,500,000
75% / 75%
$1,500,001 - $2,000,000
70% / 70%
$2,000,001 - $2,500,000
65% / 65%
$533,851 - $1,000,000
*70% / 70%
$1,000,001 - $1,500,000
*65% / 65%
$1,500,001 - $2,000,000
*50% / 50%
$417,001 - $1,000,000
75% / 75%
$1,000,001 - $1,500,000
70% / 70%
$1,500,001 - $2,000,000
65% / 65%
720
2
700
720
Second Home
1
720
DTI
Reserves
9 months
43%
12 months
18 months
40%
12 months
18 months
43%
9 months
18 months
CASH OUT
Occupancy
Units FICO
1
700
720
Primary
2
700
720
Second Home
1
700
Loan Amount
$417,001 - $1,000,000
Max LTV/CLTV
*75% / 75%
DTI
$1,000,001 - $1,500,000
*70% / 70%
43%
$1,500,001 - $2,000,000
*55% / 55%
$533,851 - $1,000,000
*70% / 70%
$1,000,001 - $1,500,000
*65% / 65%
$1,500,001 - $2,000,000
*50% / 50%
$417,001 - $1,000,000
*70% / 70%
$1,000,001 - $1,500,000
*65% / 65%
$1,500,001 - $2,000,000
*50% / 50%
720
* Properties located in Soft Market areas, where the appraiser notes the property is in a declining market, are subject to a 5% LTV/CLTV reduction
Revised 11/10/2014
Reserves
9 months
18 months
40%
12 months
18 months
40%
12 months
18 months
Retail Page 6
JUMBO A PROGRAM 65% LTV TO $2.5M (cont)
PROGRAM 1040
Document Type
To be manually underwritten. All loans require loan committee review
Credit Score & History
Minimum 3 active trade lines open for at least 24 months or credit history established for at least 10 yrs with 10 tradelines (one trade line must be a mortgage)
Mortgage & Rental History
As noted on the credit report, however if the mortgage is not listed on the credit report a 24 month VOM showing no late mortgage payments is required or a 12 month VOR for
with no late rental history is required
Adverse Credit
No bankruptcies, foreclosures, short sales, deed in lieu of and modifications within the last 7yrs. No judgments/liens/collections within the last 24 months. No significant
derogatory ratings on any trade line within the last 36 months (including installment or revolving accts)
Ineligible Borrowers
Foreign nationals, non-occupant co-borrowers, irrevocable trusts, land trusts, limited partnerships, general partners or corporations, non-arms length transactions
Multiple Property Ownership
Maximum 4 total financed properties including the subject property
Assets
Business funds not acceptable. Two months asset statements required. All large deposits must be explained and sourced.
Reserves
See program matrix for reserve requirements
Income
Wage Earners: current paystub with minimum 30 day YTD and most recent 2yrs W-2s; (paystub must be dated no earlier than 30 days from initial loan application date).
Self Employed: Most current two years tax returns. Three years transcripts and current P&L required
Passive income: 2yrs proof of receipt along with documentation to prove 3yrs continuance. 2yrs tax returns and 2yrs tax transcripts required
Asset based income: Retired borrowers only. Max LTV/CLTV 70%. Bwr must have unrestricted access to accts with no other acct holders. No foreign assets. Income calculated off of 30yr (360month) period.
Acceptable assets: Bank deposits (100%), Stocks & bonds (stock options not allowed) (65%), Mutual funds (65%), IRA/401k (can only be used if distribution is not already set up) (65%)
4506T to be signed and executed
Employment
Gift Funds
Seller Contributions
Refinance Transactions
2 year history; VVOE 10 business days from Note date for wage earners; Self-employed requires valid third party verification (CPA, Business License) w/i 30 calendar days of Note
Max 80% LTV. Bwr must come in with 5% of down payment. Cannot be used for reserve requirements
6% contributions for LTVs ≤ 80%
12 month seasoning required unless Delayed Purchase Refinance. Max cash out $300,000 on cash out transactions. Properties listed for sale in the last 12 months are ineligible for Cash Out
Appraisals
Unpaid Principal Balance $417,001 - $1,500,000
2 Unit $533,851 - $1,500,000:
-One Full URAR for loan amts up to and including $1,500,000 (1004 or 1073)
Unpaid Principal Balance $1,500,001 +:
-Two Full URARs for loan amounts ≥ $1,500,001
- LTV will be based on the lower of the Two Full URARs and for purchase money loans, the purchase price
Appraisal Standards:
- $1,000,000 E&O
- Minimum three comparable sales (closed) and inclusion of MLS listing price and history
- Condo or PUD must include at least one comparable outside of the development and one inside the development
- Appraisals are good for 120 days. Recert of value not acceptable
- Third party verification required (AVM, in-house appraisal review, field review)
Qualifying Ratios
Eligible Properties
See program matrix for ratio requirements
Eligible for all states GBL is authorized to lend in
Revised 11/10/2014
Retail Page 7
JUMBO B PROGRAM (70% LTV TO $2.0M)
PROGRAM 1140
PURCHASE and RATE & TERM REFINANCES
Loan Amount
FICO
Owner Occupied LTV/CLTV/HCLTV*
2nd Home LTV/CLTV/HCLTV*
$2,000,000
720+
70%
N/A
720+
75%
65%
700-719
70%
65%
$1,500,000
$650,000
Reserves**
12 months
Not Available
680-699
$1,000,000
DTI
740+
85%
75%
720+
80%
75%
700-719
75%
70%
680-699
70%
70%
700+
85%
75%
680-699
80%
75%
43%
6 months
First Time Homebuyer*** Purchases
Loan Amount
FICO
Owner Occupied LTV/CLTV/HCLTV
$1,000,000
720+
80%
$650,000
680+
65%
2nd Home LTV/CLTV/HCLTV
DTI
Reserves*
N/A
43%
12 months
DTI
Reserves*
Cash-Out Refinances
Loan Amount
FICO
Owner Occupied LTV/CLTV/HCLTV
2nd Home LTV/CLTV/HCLTV
$1,500,000
720+
70%
60%
720+
75%
75%
700-719
70%
65%
700+
75%
70%
$1,000,000
$650,000
12 months
40%
6 months
* 5% LTV reduction on all declining/soft markets
** 6 months additional reserves required for any additional financed properties owned by the bwr
*** Payment shock must be < 300%
Revised 11/10/2014
Retail Page 8
JUMBO B PROGRAM (70% LTV TO $2.0M) cont
PROGRAM 1140
To be manually underwritten, however DU must still be run. All loans require loan committee review
Minimum three (3) active trade lines open for at least 12 month. Loans secured against borrower's financial assets (e.g. - 401k loan) will be included in calculating DTI.
Credit Score & History
Deferred student loans are included in DTI (use 2% of the original loan amt if no payment amount is listed on the credit report)
Min 24 months housing payment history; must reflect 0x30 payment history. Private mortgages must be verified with cancelled checks along with a VOM. Checks need to be
Mortgage & Rental History dated prior to the next due date
Document Type
Adverse Credit
Ineligible Borrowers
Multiple Property Ownership
Assets
Reserves
Income
Employment
Gift Funds
Seller Contributions
Refinance Transactions
Appraisals
Residual Income
No bankruptcies in the last 4 yrs. Ch. 13 bk < 7yrs requires all bk paperwork. No foreclosures/NOD in the last 8 yrs, No short sales/deed in lieu within the last 4yrs. No
judgments/liens/collections within the last 24 months. No significant derogatory ratings on any trade line within the last 36 months (including installment or revolving accts). Reestablishment of credit required
Borrowers with diplomatic immunity or otherwise excluded from US jurisdiction, non-occupant co-borrower/co-signor, blind trusts
Maximum 4 total financed properties including the subject property
Two months asset statements required. All large or irregular deposits must be explained and sourced. Borrower must be 100% owner of business to use business assets (CPA
letter verifying usage of funds will not negatively impact business required)
See program matrix for reserve requirements. Additional 6 months PITIA required on all other non-subject financed properties
Wage Earners: current paystub with minimum 30 day YTD and most recent 2yrs W-2s; (paystub must be dated no earlier than 30 days from initial loan application date).
Self Employed: Most current two years tax returns. Two years transcripts and current P&L required
Passive income: 2yrs proof of receipt along with documentation to prove 3yrs continuance. 2yrs tax returns and 2yrs tax transcripts required
Asset based income: Retired borrowers only. Max LTV/CLTV 70%. Bwr must have unrestricted access to accts with no other acct holders. No foreign assets. Income calculated off of 30yr (360month) period.
Acceptable assets: Bank deposits (100%), Stocks & bonds (stock options not allowed) (65%), Mutual funds (65%), IRA/401k (can only be used if distribution is not already set up) (65%)
4506T to be signed and executed
2yr history for wage earner, 4yrs for self employed; VVOE 10 business days from Note date for wage earners; Self-employed requires valid third party verification (CPA, Business License) w/i 30 calendar days of Note
Owner occupied loans only. Bwr must come in with 10% of down payment. Cannot be used for reserves or closing costs
6% contributions for LTVs ≤ 80%; 2% contributions for LTVs > 80%
Max cash out $400,000 on cash out transactions. Properties listed for sale in the last 6 months are ineligible
Loans <= $1,000,000 require one (1) full appraisal; loans > $1,000,000, but ≤ $1,500,000 require a full appraisal and a desk review; loans > $1,500,000 require two (2) appraisals
Declining/Soft markets will require either a Field Review or 2nd Full Appraisal (5% LTV reduction for Declining/Soft Markets)
Maximum 10 acres
Land values that exceed 35% of the appraised value of the property require appraiser to comment that it is typical and common in the subject's market area
Minimal agricultural usage is acceptable as long as it is not constitute a majority of the borrower's income
The lesser of the purchase price or appraised value will be used on Cash-Out transactions with less than 6mo seasoning
Based on household size.
Required Gross Residual Income
One Person
Two Persons
Three Persons
Four Persons
Five Persons*
$1,515
$2,964
$3,227
$3,644
$3,688
Property Flips/ Rapid
Appreciation
*An additional $100 should be added for each individual over 5
Purchases and Rate & Term Refinances: Appreciation > 20% in the past 90 days requires 2 appraisals. Paying off seller financing is not permitted
Cash-out Refinances: Appreciation > 20% in the past 12 months requires 2 appraisals
There can be no pattern of previous flipping in the last 12 months
Eligible States
Eligible for all states GBL is authorized to lend in
Revised 11/10/2014
Retail Page 9
QUICK CLOSE (VOE ONLY)
1580 PROGRAM
Occupancy
Primary
Second Home
Primary
Second Home
Document Type
Credit Score & History
Mortgage & Rental History
Bankruptcy
Foreclosure
Deed-in-Lieu/ Short Sale
PROGRAM DISCONTINUED
PURCHASE
RATE/TERM FINANCE
CASH-OUT REFINANCE
Units FICO Loan Amount LTC/CLTV Occupancy Units FICO Loan Amount LTV/CLTV Occupancy Units FICO Loan Amount
1
$417,000
95%
1
$417,000
95.00%
1
$417,000
2
$533,850
85%
2
$533,850
85.00%
2
$533,850
Primary
Primary
Per DU
3 Per DU
$645,300
3
$645,300
3 Per DU
$645,300
75%
75.00%
4
$801,950
4
$801,950
4
$801,950
1
$417,000
90%
Second
1
$417,000
90.00%
Second
1
$417,000
High Balance
1
$625,500
90%
1
$625,500
90%
1 Per DU
$625,500
2
$800,775
2
$800,775
2
Primary
Primary
75%
75%
Per DU
3 Per DU
$967,950
3
$967,950
3
N/A
N/A
4
$1,202,925
4
$1,202,925
4
1
$625,500
65%
Second
1
$625,500
65%
Second
1
LTV/CLTV
85%
75%
60%
N/A
As determined and evaluated by DU; All loans must receive “Approve/Eligible” DU Finding and must meet QM guidelines. MINIMUM LOAN AMT $100,000
Min 620 FICO for LTV ≤ 80%, Min 660 for LTV > 80%. The mortgage/rental rating cannot have any ≥ 60 day lates in previous 12 months; All delinquencies require a satisfactory explanation.
Mortgage/rental rating cannot have any ≥ 60 day lates in previous 12 months; All delinquencies require a satisfactory explanation.
Chapter 7 or 11 discharged 4 years; Chapter 13 discharged 2 years or dismissed 4 years; Multiple BK filings 5 years if more than on filing in previous 7 years
None in last 7 years; none in last 3 years with documented circumstances & max 90% LTV/CLTV, Primary Residence, Purchase or Rate/Term Refinance only.
None in last 2 years Max 80% LTV; none in last 4 years Max. 90% LTV; none in last 7 years Max. LTV per guideline.
Past due accounts that have not gone to collection must be brought current. Collection/Charge-off accts do not have to be paid off if subj is 1 unit primary. Collections/Charge-offs totaling > $5,000
Coll/Charge-Off/Judgment must be paid off when subj is 2-4 unit primary or 2nd home
All funds used to close must be disclosed on 1003 and input into DU; Cash-on hand not allowed; Single deposits >25% of combined gross mo. income must be sourced &
Assets
explained. Bank statements cannot be > 45 days from the loan app. date or more recent/ supplemental bank-generated form required. VODs unacceptable
Reserves
Six (6) months reserves required if subj is a 2-4 unit property
Income
Employment
Gift Funds
Seller Contributions
Financed Properties
Mortgage Insurance
Refinance Transactions
Appraisals
Income to be calculated off of employer executed WVOE. Cannot use rental income to qualify. 4506T to be signed on all loans, however transcripts will only be ordered if DTI > 40%. W2
transcripts will only be ordered on loans with LTV > 70%
2 yr history; VVOE 10 business days from Note date for wage earners (Self employed borrowers, Commission based borrowers, Bwrs employed by family members are ineligible)
No minimum contribution required if subj is primary residence. No gift funds for investment properties. Gift funds required to be sourced. Gift cannot come from Foreign assets
Primary Residence or 2nd Home >90% LTV = 3%; 75.01-90% LTV = 6%; ≤ 75% LTV = 9%
No maximum for O/O transactions; Max 4 financed properties when subj is 2nd home. N/O/O transactions ineligible
Borrower Paid: monthly/single premium (financing of single premium ok); Lender Paid: single premium only
Properties listed for sale in last 12 months require acceptable proof of being taken off the market and borrower must provide written confirmation of intent to occupy. A continuity of obligation must be
demonstrated to be eligible for a rate/term and/or cash-out refinance.
Market Condition Addendum is required on all appraisals. Appraisals must meet UAD & AIR requirements.
Florida Condominium
New/newly converted projects require PERS approval. Established projects w/ PERS or Full Review no LTV restrictions; Limited/CPM Review: Max 75% LTV primary residence and max 70% LTV
second home.
Qualifying Ratios
Property Flips
Max 40% DTI
Allowed. Properties re-sold ≤ 90 days from acquisition require GreenBox prior approval.
Revised 11/10/2014
Retail Page 10
SUPER JUMBO PROGRAM (65% LTV up to $3.0M)
PROGRAM 1050
Occupancy
Units
Primary
1
Second Home
1
FICO
680
700
700
PURCHASE and RATE/TERM REFINANCE
Maximum Loan Amount
$1,000,000
$1,500,000
$2,000,000
$3,000,000
$2,500,000
Max LTV/CLTV
DTI
80%
75%
65%
50%
43%
CASH OUT
Occupancy
Units
FICO
Maximum Loan Amount
Max LTV/CLTV
DTI
$2,500,000
($450k
Cash-Out)
50%
Primary
1
700
43%
Document Type
To be manually underwritten. All loans require loan committee review
Product
Minimum $625,000 loan amount. Fix rate only
Minimum 3 active trade lines open for at least 24 months or credit history established for at least 10 yrs with 10 tradelines (one trade line must be a mortgage)
Credit Score & History
As noted on the credit report, however if the mortgage is not listed on the credit report a 24 month VOM showing no late mortgage payments is required or a 12 month
Mortgage & Rental History
VOR for with no late rental history is required. 0x30 in the last 24 months
No bankruptcies, foreclosures, short sales, deed in lieu of and modifications permitted. No judgments/liens/collections within the last 24 months. No significant
Adverse Credit
derogatory ratings on any trade line within the last 36 months (including installment or revolving accts)
Ineligible Bwrs/Properties FTHB, non-permanent resident aliens, irrevocable trusts, land trusts, foreign nationals, FL Condos, 2-4 unit properties, Rural properties, Properties with 10+ acres
Multiple Property OwnershipMaximum five (5) total financed properties including the subject property
Assets
Business funds acceptable only if bwr is 100% owner of business (cannot be used for reserves). Two (2) months consecutive statements required (3 mo. for business
Reserves
Minimum 36mo reserves for subject property plus six (6) months additional PITIA reserves for all other financed properties. 50% of reserves must be liquid
Income
Employment
Gift Funds
Seller Contributions
Refinance Transactions
Standard income documentation with the following requirements:
• 2yr documentation of income required
• Rental income calculated as the lower of current yr or 2yr avg
• IRA/401k and alimony income requires 3yrs continuance and proof of six (6) months receipt
• Cannot use asset as income
• 4506T to be signed and executed
2 year history; VVOE 10 business days from Note date for wage earners; Self-employed requires valid third party verification (CPA, Business License) w/i 30 calendar days of Note
Bwr must come in with 5% of down payment. Cannot be used for reserve requirements
3% contributions for LTVs 75.01% - 80%. 6% for LTVs ≤ 75%. Can only be used for closing costs and pre-paid expenses
12 month seasoning required unless Delayed Purchase Refinance. Properties listed for sale in the last 12 months are ineligible for Cash Out
Appraisals
Standard FNMA guidelines apply along with the following requirements:
•Two Full URARs required (must be completed by two independent companies)
• LTV will be based on the lower of the Two Full URARs and for purchase money loans, the purchase price
Eligible States
Eligible for all states GBL is authorized to lend in
Revised 11/10/2014
• No comparables greater than six (6) months old
• Appraisals are good for 120 days. Recert of value not acceptable
• No escrow holdbacks
Retail Page 11
FOREIGN NATIONAL (50% LTV UP TO $5.0M)
PROGRAM 770
Foreign Nationals
LTV
60%
55%
50%
Foreign Nationals
LTV
60%
55%
50%
Program Basics
Borrowers
• Green Card or VISA not required. Will need copy of passport or other form of ID
• Power of Attorney is NOT permitted. Bwr is required to go to an American consulate to sign and have loan docs notarized if not in the US
Credit
• All Borrowers must complete a W8 prior to final approval
• All borrowers must register for ACH prior to close
• All borrowers must register for ITIN
Eligible Terms
Translator
Income
Revised 11/10/2014
LTV
70%
65%
60%
Max Loan Amount
$2,000,000
$3,000,000
$5,000,000
LTV
70%
65%
60%
Max Loan Amount
$1,000,000
$2,000,000
$5,000,000
ARMs: 5/1, 5/1 Interest Only, 7/1, 10/1
If income and asset documentation is in a foreign language, documentation is required to be translated from a tax preparer/accountant/CPA or equivalent (comprehensive summary and accounting of the borrower's financial
position).
Min Loan Amount
$300,000
Standard verification
Two (2) years financial statements required to calculate income. 4506T to be signed and executed
Wage Earner
• Must provide paystubs and lender must obtain a written VOE verifying YTD and previous two year's income; if the borrower has a SSN or Tax ID#, the 4506T must be executed
Self-Employed
DTI ratios
Assets
Purchase Transaction
Max Loan Amount
Non Permanent Resident Aliens
$2,000,000
$3,000,000
$5,000,000
Rate and term & Cash-Out Refinance Transactions
Max Loan Amount
Non Permanent Resident Aliens
$2,000,000
$3,000,000
$5,000,000
• Must be self-employed for a minimum of 4 years; 4 years in the same line of work with two full years of self-employment may be considered as an exception (employment must be verified by NPF)
• A CPA letter, on the CPA's letterhead, documenting YTD and previous two year's income is required. All CPA contact information must be verifiable by NPF.
• If the borrower has a SSN or Tax ID#, the 4506T must be executed
• Standard ratios are 35/45
• 401K loans to be included in DTI
• Expanded DTI's are not permitted on the Foreign National Program
• Unreimbursed expenses are not deducted from income
Assets
Two (2) months bank statements or equivalent required. Must be sourced and seasoned from a known verifiable worldwide financial institution (i.e., Credit Suisse, HSBC, UBS, Bank of Tokyo). Funds cannot be in an institution
which cannot be verified. Google conversion to be provided if statement is not in US Dollars
Assets for Income
Not Permitted
Reserves
12 months reserves on all debt (including all payments, cars, etc.)\
Gifts
Not permitted
Seller Concessions
Max 6% up to 65% LTV
Retail Page 12
FOREIGN NATIONAL (50% LTV UP TO $5.0M)
PROGRAM 770
Guideline Summary (Continued)
Appraisal
Declining/ Soft Markets
Properties Listed for
Sale
All appraisals must be ordered through an GB approved AMC
• 1 Full appraisal is required; 2 full appraisals will be required for loan amounts >$1,000,000
Appraisals defined by the appraiser as declining are subject to 5% LTV reduction (ALL PRODUCTS); Appraisals defined as Tier 4 or 5 (declining) by GreenBox Market risk rating have additional requirements:
• Tier 4 - Field Review
• Tier 5 - 2nd Full Appraisal required
The listing must have been expired or withdrawn a minimum of 6 months prior to the application date
Property Flipping
Collateral
Subject property must have been purchased by the seller 6 months prior to the date of contract. Property flipping within 60 days is ONLY permitted if the seller is a Bank, FNMA, Freddie Mac or Mortgage Company
• Single Family - Attached and Detached
• Townhome
• PUD
Eligible Property Types
• 2-4 Unit (Owner Occupied only)
• Condominium (Fannie Mae or GreenBox CPM approved)
• Non-Warrantable Condos are not permitted
Ineligible Property
Types
• Manufactured, Mobile, Modular, or Factory Built homes
• Non-warrantable Condos
• Unimproved Land and property currently in litigation
• Cooperatives
• Commercial Enterprises (e.g. Bed and Breakfast, Boarding House, Hotel)
• Properties located in a Lava Zone
• Condotels/Hotel Condos
• Zoning violations including residential properties zoned commercial
• Log homes
• Properties with less than 750 square feet of living area
• Timeshares
• Geodesic Domes, Berms, Earth homes
• Properties with resale deed restrictions
Mixed Use Properties
General
Credit
General
Minimum # of Trade
Lines
Follow FNMA guidelines except the square footage of commercial part of the property cannot exceed 25% of the total square footage and the borrower must be the proprietor of the business
• An international credit report is required; if the borrowers has a valid SSN or Tax ID, a traditional credit report is also required.
• A credit reference letter, on the financial institution's letterhead including contact information, detailing the types and lengths of their relationship is required
• Revolving debt not permitted to be paid down or paid off to qualify
Mortgage History
A minimum of 3 tradelines are required on all transactions. An acceptable trade line is defined as any Open or Closed account with at least 12 months rating history. Authorized user accounts will not be considered
Borrower must have no mortgage lates
Derogatory Credit
Borrower must have no prior bankruptcy or foreclosure in order to be eligible for the Foreign National program
Escrow Waivers
Not permitted
LLC is acceptable for a foreign national, however none of the members of the LLC can be entities organized outside the US. Only one (1) member is required to be on the loan provided they have 10% ownership. Other members
required to sign an acknowledgement.
Vesting
Maximum Number of
Financed Properties
GreenBox exposure is limited to 1 loan, regardless of occupancy; borrowers owning an additional US property will be considered on an exception basis
GreenBox Disclaimer: Information in this matrix is a summary only and is not a complete representation of GreenBox Lending Policies. Refer to the GreenBox Lending Guide and applicable Product Guides for detailed requirements. Information is accurate as of the date of publishing and is subject to change without notice. This document
should not be relied upon or treated as legal advice.
Revised 11/10/2014
Retail Page 13
`