Matrix Quick Links - prioritywholesale.net

1 LTV/FICO Grid Quick LinksMatrix Quick Links Section 1: Program Summary Program Summary Underwriting Texas 50(a)(6) Determination Texas 50(a)(6) Special Considerations Fee Caps Attorney Review Ineligible programs Section 2: Transaction Details Loan Limits Eligible Terms and programs Eligible Transactions Seasoning Principal Curtailments/Reductions Refinances (General) Payoff Demands Subordinate Financing Section3: Borrower Eligibility Eligible Applicants Occupancy Power of Attorney Living Trust (Inter Vivos Revocable Trust) Non-Arm s Length Transactions Maximum # of Financed Properties Multiple Mortgages to the Same Borrower Ineligible Borrowers Section 4: Collateral Eligible Properties Acreage Restrictions Condos Ineligible Properties Properties Previously Listed for Sale Appraisals Disaster Areas Section 5: Income Income Verification of Employment Section 6: Credit Credit Qualifying Ratios Borrowers Retaining their Current Residence Conversion of Primary Residence Current Principal Residence Pending Sale Section 7: Assets Assets Cash Reserves Ineligible Assets Section 8: Program Details Age of Documentation Electronic Signatures Escrows Excluded Parties- LDP/GSA Searches Flood Insurance Hazard Insurance Interest Credit Hardships Process to Add or Remove Borrowers Rent Loss Insurance Title Insurance Section 9: References References PWL Diamond Texas 50(a)(6) Jumbo Cash Out MatrixInformation in this Matrix is a summary only and is not a complete representation of Priority Wholesale Lending Policies.

2 Refer to the Priority Wholesale 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. The overlays outlined in this Matrix apply to agency loans submitted to DU/LP. In addition to applying these PWL specific overlays, all loans submitted to DU must comply with the DU Findings and Fannie Mae requirements and that all loans submitted to LP comply with the LP Findings and Freddie Mac requirements. This document should not be relied upon or treated as legal advice. Guidelines subject to change without of Program Summary Program Summary This Program Guide serves as a comprehensive summary of Priority Wholesale Lending's Conventional Underwriting Overlays. Refer to Fannie Mae s SellingGuide for any information not specified in the Program Summary. Underwriting Underwriting All loans must be run through Fannie Mae Desktop Underwriter (DU); Findings must be Approve/Eligible.

3 A manual follow-up must then be completed. Even though loans may receive an Eligible recommendation from DU, the loan may not be eligible for delivery according to the Texas Constitution or Selling Guide as DU does not contain specific eligibility rules needed to determine eligibility in accordance with this law. SFC 304 must be used in association with all Texas 50(a)(6) loans. If DU issues a warning for excessive DU runs, a written explanation must be provided by the originator. Texas 50(a)(6) Determination Texas 50(a)(6) Determination Texas 50(a)(6) Special Considerations Special Considerations A Texas (a)(6) loan may not close until: Twelve days after the borrower submits the loan application or all borrowers sign the12-day notice, whichever is later. One day after the borrowers receives a copy of the Settlement Statement and HUD-1. After the one-year anniversary of the closing of an existing Texas (a)(6) 1: Program Summary PWL Diamond Texas 50(a)(6) Jumbo Cash Out 2 of 13 Information in this Matrix is a summary only and is not a complete representation of Priority Wholesale Lending Policies.

4 Refer to the Priority Wholesale 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. The overlays outlined in this Matrix apply to agency loans submitted to DU/LP. In addition to applying these PWL specific overlays, all loans submitted to DU must comply with the DU Findings and Fannie Mae requirements and that all loans submitted to LP comply with the LP Findings and Freddie Mac requirements. This document should not be relied upon or treated as legal advice. Guidelines subject to change without Fee Caps Fee Caps A 3% Fee cap exists on all Texas (a)(6) loans: Attorney Review Attorney Review All Texas 50(a)(6) loans must be reviewed and certified by an PWL approved TXAttorney prior to loan closing. PWL s approved firms include:Black, Mann and GrahamIneligible programs HPML/Section 32 Mortgage Credit Certificates (MCC) Temporary Buydowns Land trusts in the state of Illinois are not eligible Leaseholds secured by Indian/Tribal lands Homestyle/Homepath RenovationsSection 2: Transaction Details Loan Limits Loan LimitsMinimum Loan Amount: None Maximum Loan Amount: Eligible Terms and programs Eligible Terms & programs Eligible Transactions Eligible Transactions Purpose of Refinance: Texas A6 Ineligible programs PWL Diamond Texas 50(a)(6) Jumbo Cash Out 3 of 13 Information in this Matrix is a summary only and is not a complete representation of Priority Wholesale Lending Policies.

5 Refer to the Priority Wholesale 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. The overlays outlined in this Matrix apply to agency loans submitted to DU/LP. In addition to applying these PWL specific overlays, all loans submitted to DU must comply with the DU Findings and Fannie Mae requirements and that all loans submitted to LP comply with the LP Findings and Freddie Mac requirements. This document should not be relied upon or treated as legal advice. Guidelines subject to change without Seasoning Seasoning If an existing Texas 50(a)(6) first or second mortgage will be paid off, the lender must verify that 12 months have passed since the closing date of the existing TX 50(a)(6) loan being paid off before the new lien is secured. TX only permits one equity loan at a time and only one within a 12 month period. Principal Curtailments/Reductions Principal Curtailments/ReductionsPermitted in instances where there is excess lender credit only Refinances (General) Refinances (General) Continuity of Obligation as defined in FNMA must be met A Net Tangible Benefit Worksheet must be completed on ALL refinance Payoff Demands Payoff Demands Payoff demands are required to ensure the current lien is paid in full prior to closing.

6 The expiration date of the payoff demand must be reviewed. A loan may not move to closing if the payoff will expire prior to funding. If the payoff demand contains an expiration date, the underwriter must verify the date is after the funding date. If the payoff demand does not contain an expiration date, the underwriter must verify a per diem amount is listed. The per diem should be applied to the payoff amount to cover proceeds through the funding date; it can be used for an unlimited number of days; unless otherwise specified in the payoff letter. A payoff is considered expired when: The document instructs the associate to void after a specified date; or The interest accrued amount on the statement signals the borrower will be past-duewhen the new loan funds;oThe borrower must make a mortgage payment prior to closing to avoid a latepayment on the credit; andoThe borrower must provide evidence the payment has been made and theupdated payoff demand must reflect that a payment has been Subordinate Financing Subordinate Financing New subordinate financing is not permitted on a first lien TX (a)(6).

7 Existing subordinate liens on the real estate that are not paid off with the new 50(a)(6) loan are permitted provided that: the subordinated 2nd mortgages cannot already be a 50(a)(6) loan (verification is required-the title company must obtain a copy of the security instrument) and the subordinated 2nd mortgage must meet the 80% CLTV requirement. HELOCs are not eligible for subordinate financing. A copy of the subordinating Note, Mortgage/Deed and Subordination Agreement is also required. Section3: Borrower Eligibility Eligible Applicants Eligible Applicants All borrowers must have valid and verifiable Social Security Numbers, as well as a valid driver s license, state-issued ID or passport. Other forms of taxpayer identification are not allowed. Borrowers must be either Citizens or be lawful permanent or non-permanent residents of the United States. A citizen, who is lawfully residing in the as a permanent or a nonpermanent resident alien, is eligible for a mortgage on the same terms as a citizen.

8 PWL Diamond Texas 50(a)(6) Jumbo Cash Out 4 of 13 Information in this Matrix is a summary only and is not a complete representation of Priority Wholesale Lending Policies. Refer to the Priority Wholesale 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. The overlays outlined in this Matrix apply to agency loans submitted to DU/LP. In addition to applying these PWL specific overlays, all loans submitted to DU must comply with the DU Findings and Fannie Mae requirements and that all loans submitted to LP comply with the LP Findings and Freddie Mac requirements. This document should not be relied upon or treated as legal advice. Guidelines subject to change without can be no more than 4 borrowers per loan. A married borrower cannot create a lien against the property unless his/her spouse consents to the lien by signing all applicable program and closing disclosures and documents.

9 Occupancy Occupancy Eligible occupancy types include: 1 unit Primary Residences serving are the borrower s TX Power of Attorney Power of Attorney Not permitted Living Trust (Inter Vivos Revocable Trust) Living Trust (Inter Vivos Revocable Trust) A living trust is an eligible mortgage borrower if it meets the following requirements as well as State requirements. All trusts must be approved by PWL legal prior to Loan determine whether or not the Trust meets all the criteria required by State and investor standards, one of the following will be required: A copy of the trust document must be included in the file Trust must meet qualifying trust under Texas law for purposes of owning residentialproperty that qualifies for the homestead Non-Arm s Length Transactions Non-Arm s Length Transactions Not permitted Maximum # of Financed Properties Maximum # of Financed Properties Borrowers financing their Primary Residence may have up to 10 properties (financed orfree & clear).

10 Borrowers with greater than 4 financed properties must have a minimum12 month history of landlord experience (the agencies may require additionalexperience). These limitations apply to the borrower s ownership in one-to four unit properties ormortgage obligations on such properties and are cumulative for all borrowers. Thislimitation includes properties financed Multiple Mortgages to the Same Borrower Multiple Mortgages to the Same Borrower PWL will finance no more than 4 properties for any oneborrower PWL limits its maximum exposure to one borrower at $ Maximum of 2 financed units in a single condo project or PUD Ineligible Borrowers Ineligible Borrower (Ineligible Applicants) Non-Occupant Co-Borrowers Co-Signers/Co-Guarantors Limited Partnerships, Corporations and LLC s Non-Revocable Trusts or Guardianships Foreign Nationals Borrowers with Diplomatic Immunity Individuals Employed by PWL Third PartyOriginators Individuals on the LPD/GSA exclusionary listsSection 4.