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
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