Agency Eligible Product Guidelines - CCMC Correspondent Lending

Agency Eligible Product Guidelines Desktop Underwriter Version 9.1, Max LTV 95% Purchase and R/T Refinance (*See Additional DU Refi Plus Parameters) Credit Units LTV,CLTV,HCLTV Score

Transaction Type Matrix

Owner Occupancy

1 Unit Purchase-R/T

FRM: 95%

ARM: 90%

2 Unit Purchase-R/T

FRM: 85%

ARM: 75%

3 & 4 Unit Purchase-R/T

FRM: 75%

ARM: 65%

Units

LTV,CLTV,HCLTV

1 Unit Purchase 1 Unit R/T

FRM: 90% ARM: 80%

Units

LTV,CLTV,HCLTV

620

Credit Score

Cash Out Refinance Units

LTV,CLTV, HCLTV

Credit Score

1

FRM: 85% ARM: 75%

2

FRM: 75% ARM: 65%

3&4

FRM: 75% ARM: 65%

Units

LTV,CLTV, HCLTV

Credit Score

1

FRM: 75% ARM: 65%

620

Units

LTV,CLTV,HCLTV

1

FRM: 75% ARM: 65%

620

Second Home

1 Unit Purchase

620

Credit Score

FRM: 85% ARM: 75%

Investment

Maximum Original Principal Balance

ATR/QM Rule

Credit Score

2-4 Unit Purchase

FRM: 75% ARM: 65%

1-4 Unit R/T

FRM: 75% ARM: 65%

620

620

2-4

FRM: 70% ARM: 60%

2014 FNMA Conforming Loan Limits (Contiguous States):  1 Unit $417,000  2 Units $533,850  3 Units $645,300  4 Units $801,950 Please refer to the FNMA Selling Guide for loan limit updates

For loans subject to the ATR/QM rule, Cherry Creek Mortgage Company will only purchase loans that comply with the ATR/QM requirements.  Correspondents are responsible for providing evidence of compliance with the ATR/QM rules. 

Clear itemization of fees and application of all credits that indicate paid by/to is required on all loans.

©2014 Cherry Creek Mortgage NMLS ID 3001. THIS INFORMATION IS SOLELY FOR MORTGAGE PROFESSIONALS AND SHOULD NOT BE PROVIDED TO CONSUMERS OR THIRD-PARTIES. INFORMATION IS ACCURATE AS OF 10/02/2014 AND IS SUBJECT TO CHANGE WITHOUT NOTICE.

AUS

DU: Approve/Eligible (No Manual Underwriting) U.S. Citizens, Permanent Resident Aliens, with proof of lawful permanent residence, Non-Permanent Resident Alien Immigrants

Borrower Eligibility

Credit Scores

Minimum 620 FICO (limits to LTV/CLTV may apply), full tri-merge credit report w/ scores Maximum as approved by DU **CCMC does not accept DTI >50% DU / LP (Excluding DU Refi Plus and FHLMC Open Access)

Qualifying Ratios

Condos/PUDs

Must follow FNMA published Condo Eligibility Guidelines.

Quick Reference

www.fanniemae.com/singlefamily/project-eligibility

Assignment of Mortgage

Loans delivered must be registered by the Sellers with MERS at time of delivery. A MERS transfer of beneficial rights (TOB) and transfer of servicing rights (TOS) must be initiated by the Seller to Cherry Creek Mortgage Company (ORG ID#1000302), within 48 hours of purchase by Cherry Creek Mortgage Company FRM: 10 – 30 year terms ARM: 5/1, 7/1, 10/1 (Caps: 5-year ARMs: 2/2/5. 7 and 10-year ARMs: 5/2/5)

Terms

Minimum Loan Size

$50,000

Property Eligibility

SFD, 2-4 Units, Modular, Condos, and Manufactured (Manufactured must be O/O and meet FNMA standard eligibility. See Manufactured Home Parameters section for additional details)

Ineligible Properties/Features

      

Texas Cash-Out Co-ops Temporary Buydown Leasehold Estates Ground Lease Community Land Trust Recently Listed – Listing must be cancelled at least one day prior to the initial application date

Mortgage Insurance

Standard MI coverage required. Follow DU Findings and FNMA Selling Guide

Current Employment

Follow DU Findings and FNMA Selling Guide

Assets/Reserves

Follow DU Findings and FNMA Selling Guide

Rental Income

Rent loss insurance covering at least 6 months rent is required for 2-4 unit primary properties and 1-4 unit investment properties when rental income from the subject property is used to qualify the borrower

©2014 Cherry Creek Mortgage NMLS ID 3001. THIS INFORMATION IS SOLELY FOR MORTGAGE PROFESSIONALS AND SHOULD NOT BE PROVIDED TO CONSUMERS OR THIRD-PARTIES. INFORMATION IS ACCURATE AS OF 10/02/2014 AND IS SUBJECT TO CHANGE WITHOUT NOTICE.

Quick Reference

www.fanniemae.com/singlefamily/originating-underwriting

Rent/Mortgage History

Appraisal Requirements

0x30 last 12 months (if applicable) Full Appraisal required unless lesser inspection requirements noted on AUS **CCMC does not accept a PIA/HVE/AVM, in lieu of an appraisal, on LP loans 

Age of Documents

Escrow Holdback



Credit documents (credit reports, employment, income, and asset verifications) must be no more than 4 months old on the date the Note is signed. Expired documents must be updated by the Correspondent Appraisals may not be more than one year old; an update is required if more than four months old.



Preliminary Title Policies must be no more than 180 days old on the date the note is signed.

Weather-related only. Considered on a case-by case basis.

Financing Concession

Gift Funds

Financing concessions for primary residences must be within the following allowable percentages:  9% of value with LTV/CLTV ratios less than or equal to 75%  6% of value with LTV/CLTV ratios greater than 75% up to and including 90%  3% of value with LTV/CLTV ratios greater than 90%  The maximum financing concession for investment properties is 2% of value regardless of the LTV ratio.

Value is the lesser of the sales price or appraised value.

Follow FNMA Guidelines for gift funds.

Alaska, Georgia, Hawaii, Kentucky, Maine, Mississippi, New Hampshire, New York, North Carolina, and West Virginia

State Exclusions

Manufactured Home Parameters

               

30-year fixed, 1-unit, purchase, only No manual underwriting $75,000 minimum loan amount Existing mortgage or rent payments must be documented. Ineligible if unable to document No housing (mortgage or rental) lates in the past 12 months 680 minimum FICO, subject to available pricing 45% maximum DTI Minimum 2 months PITI reserves Gift funds are not eligible for reserve requirements 20 year maximum property age limit Double-wide or larger, no single-wides, must be designed as a one-family dwelling Excluded: Property Flips, Non-Occupant Co-Borrowers, Down Payment Assistance, Escrow Holdbacks or Escrow Repairs Maximum 10 acres MI must be underwritten by the MI company No PUDs or Condos Appraisal: two similar manufactured home comparables and one site-built and/or modular home comparable required. Appraisal must be on form 1004C and 1004 MC.

©2014 Cherry Creek Mortgage NMLS ID 3001. THIS INFORMATION IS SOLELY FOR MORTGAGE PROFESSIONALS AND SHOULD NOT BE PROVIDED TO CONSUMERS OR THIRD-PARTIES. INFORMATION IS ACCURATE AS OF 10/02/2014 AND IS SUBJECT TO CHANGE WITHOUT NOTICE.

         DU Refi Plus Parameters

      

Underwriting: DU Approve/Eligible, EA-1, EA-II, EA-III (No Manual Underwriting) Transaction Type: Limited Cash Out Refinance Terms: FRM: 10-30 year terms Minimum Loan Size: Follow FNMA Selling Guide Maximum Loan Size: New loan must meet FNMA loan limits applicable at the time of delivery Maximum LTV: 150%, Follow FNMA Selling Guide and Eligibility Matrix Maximum CLTV: Follow FNMA Selling Guide and Eligibility Matrix. Lender must calculate the CLTV and provide it at loan delivery, all existing liens must be re-subordinated, no new secondary financing.

Occupancy: 1-4 unit O/O, 1-unit SH, 1-4 unit N/O/O (N/O/O max LTV = 80%) Eligible Properties: SFD, 2-4 unit, Modular, Condo. (Follow FNMA Selling Guide for max. number of allowable financed properties and limits.

Mortgage Insurance: Follow FNMA guidelines for the transfer of existing coverage to new loan (required). If existing loan does not have MI coverage, no coverage is required.

Ratios: Maximum as approved by DU Employment, Assets, Reserves: Follow DU Findings and FNMA Selling Guide: FNMA Job Aid Cash to Borrower: Maximum $250 Mortgage History: 0x30 within the last 12 months Appraisal/Value: Property fieldwork waiver as allowed by DU when message appears. For properties in disaster areas, follow CCMC disaster policy. Appraisal fieldwork per DU requirements if waiver is not provided as an option.

Credit History (including Derogatory Credit): Follow DU Findings and FNMA Selling Guide

Quick Reference: www.fanniemae.com/singlefamily/originating-underwriting

©2014 Cherry Creek Mortgage NMLS ID 3001. THIS INFORMATION IS SOLELY FOR MORTGAGE PROFESSIONALS AND SHOULD NOT BE PROVIDED TO CONSUMERS OR THIRD-PARTIES. INFORMATION IS ACCURATE AS OF 10/02/2014 AND IS SUBJECT TO CHANGE WITHOUT NOTICE.