DU Refi Plus™ Loan Program Eligibility Checklist for
DU REFI PLUS™ LOAN PROGRAM ELIGIBILITY CHECKLIST FOR CURRENT SUNTRUST CUSTOMER(S) (STM TO STM) SunTrust Loan Number: Borrower/Co-Borrower Name: Instructions: This checklist is REQUIRED to be completed and placed in the loan file on ALL DU Refi Plus loan transactions. If the DU Refi Plus Opt Out Option has been exercised, this checklist is NOT REQUIRED to be completed. * * IF ANY OF THE RESPONSES TO THE QUESTIONS BELOW IS “NO”* * THE LOAN IS NOT ELIGIBLE FOR ORIGINATION UNDER THE DU REFI PLUS LOAN PROGRAM. Yes 1. 2. 3. Underwriting Authority Loan owned by Fannie Mae Fidelity Snapshot Agency Conforming: Correspondent Lender has “Delegated Level II Underwriting Authority” as defined in Section 1.05: Underwriting of the Correspondent Seller Guide. If “NO”, the loan has been submitted to a SunTrust underwriter for prior approval. Agency Plus: Correspondent Lender has “Expanded Delegated Underwriting Authority” as defined in Section 1.05: Underwriting of the Correspondent Seller Guide. If “NO”, the loan has been submitted to a SunTrust underwriter for prior approval. The existing first mortgage being refinanced is currently owned by Fannie Mae. The Fidelity Snapshot was utilized. Note: The Request For Information For DU Refi Plus™ – MI Determination For SunTrust to SunTrust Transactions form (COR 0062) must be completed and faxed to SunTrust to obtain the Fidelity Snapshot. The Fidelity Snapshot must be printed and placed in the loan file. 4. Eligible Borrower(s) The borrower(s) on the existing first mortgage being refinanced are the same borrower(s) on the new loan, unless: a borrower is being added, OR a borrower is being omitted and the following requirements have been met: The borrower(s) being removed from the loan must also be removed from the deed (i.e., title), except in the case of death. If a borrower is being removed due to death, a copy of the death certificate or other legal document evidencing death must be provided. Notes: A borrower may be added to (including non-occupant co-borrowers) or removed from the new loan provided at least one (1) borrower from the existing mortgage remains on the new mortgage. Adding or removing a borrower is allowed when subordinating a SunTrust second mortgage (Combo Second Mortgage, EZ Two, SunTrust Equity Line or Equity Loan). The SunTrust second mortgage cannot be modified, regardless of borrower(s) being added to or removed from the first mortgage, and the borrower(s) currently obligated on the SunTrust second mortgage must remain. 5. Underwriting Method The loan has been processed through Fannie Mae’s Desktop Underwriter (DU), received a DU Refi Plus “eligibility” and received a DU Refi Plus “Approve/Eligible”. Notes: DU resubmissions AFTER closing are NOT allowed by SunTrust. If the loan is not eligible for approval AND is at risk of default then the loan should be referred to SunTrust’s Loss Mitigation Department for further review. 6. Loan Program 7. Maximum Loan Amount Agency Plus DU Refi Plus The loan program is an: Agency Conforming: Fully Amortizing Fixed Rate product (10-30 year term), Agency Conforming: Fully Amortizing 5/1 or 7/1 LIBOR ARM (10-30 year term), OR Agency Conforming: Fully Amortizing 10/1 LIBOR ARM (15-30 year term) Agency Plus: Fully Amortizing Fixed Rate product (10, 15, 20 and 30 year term), OR Agency Plus: Fully Amortizing 5/1, 7/1 or 10/1 LIBOR ARM (30 year term). Note: 3/1 LIBOR ARMs, Temporary Buydowns, and Texas 50(a)(6) transactions are NOT eligible. The loan amount meets the Agency Plus maximum loan limits. Click here to access the maximum loan limits for Fannie Mae. Click here to access Fannie Mae’s Loan Limit Geocoder. Skip Question # 7 if the loan program is an Agency Conforming. COR 0161 (02/27/15) Page 1 of 5 No DU REFI PLUS™ LOAN PROGRAM ELIGIBILITY CHECKLIST FOR CURRENT SUNTRUST CUSTOMER(S) (STM TO STM) SunTrust Loan Number: Borrower/Co-Borrower Name: Yes 8. Occupancy/ Property Types The subject property is a one (1) – four (4) unit primary residence, one (1) unit second home or one (1) – four (4) unit investment property (including units located in warrantable condominium and PUD projects). Notes: It is acceptable if the occupancy type on the new loan is NOT the same as the occupancy type on the original loan. If the original first mortgage lien was secured by a second home or investment property and the borrower is disclosing that the property is now a primary residence, evidence of the property being a primary residence must be documented in the loan file. A PUD review/warranty is not required on DU Refi Plus STM to STM loan transactions. Condominium properties will require an abbreviated review by the delegated lender or if underwritten by SunTrust Mortgage, the SunTrust Mortgage Condominium Department, to ensure that the property is not a condotel, not in a houseboat project, or in a timeshare or segmented ownership project and all required insurance is in place. The scope of the condominium project review is limited to these items only. No additional project review (including review of original project approval decision) will be required. The DU Refi Plus (STM to STM) Condominium Questionnaire (COR 0217) must be completed and placed in the loan file. The Certification of Project Compliance: Condominium Lender Warranties - Agency and NonAgency Loan Products (COR 0212a) must be completed and included in every DU Refi Plus loan file for condominiums warranted under the DU Refi Plus abbreviated condominium review process. Reference: See the Underwriting topic located in Section 2.04: DU Refi Plus for specific requirements for condominium procedures. 9. Loan Purpose The loan purpose is a limited cash-out (rate/term) refinance transaction and meets the following requirements: Borrower may finance prepaids, closing costs and points, The borrower may receive up to $250 cash back at closing, If there is excess cash greater than $250, the following guidelines apply: the excess amount of no more than $500 must be applied to the new first mortgage as a principal curtailment, or the loan amount must be recalculated, the loan must be re-approved and new documents must be drawn. Borrower may NOT payoff existing secondary financing with the proceeds of the DU Refi Plus mortgage loan, and Note: The borrower is permitted to pay off or pay down an existing second mortgage from their own funds. Borrower must subordinate existing secondary financing. References: See Section 1.26a: Subordinations for DU Refi Plus of the Correspondent Seller Guide for specific credit overlays and workflow procedures for the subordination of SunTrust second mortgages. See Section 2.04 DU Refi Plus located in the Correspondent Seller Guide for principal curtailment information. Notes: Purchase and cash-out refinance transactions are not eligible. Construction-permanent (one time and two time closing) transactions are not eligible for originations or modifications. COR 0161 (02/27/15) Page 2 of 5 No DU REFI PLUS™ LOAN PROGRAM ELIGIBILITY CHECKLIST FOR CURRENT SUNTRUST CUSTOMER(S) (STM TO STM) SunTrust Loan Number: Borrower/Co-Borrower Name: Yes 10. Maximum LTV/TLTV/ HTLTV Agency Conforming: LTV/TLTV/HTLTV meets the requirements outlined below Primary (1-4 Units) Loan Purpose Limited Cash-Out (Rate/Term) Refi Cash-Out Refi # of Units 1-4 1-4 Not Eligible Max LTV/TLTV/HTLTV no max/no max/no max 105%/no max/no max # of Units 1 1 Not Eligible Max LTV/TLTV/HTLTV no max/no max/no max 105%/no max/no max # of Units 1-4 1-4 Not Eligible Max LTV/TLTV/HTLTV no max/no max/no max 105%/no max/no max Second Homes (1 Unit) Loan Purpose Limited Cash-Out (Rate/Term) Refi Cash-Out Refi Product Fixed Rate 5/1, 7/1 &10/1 ARMs Product Fixed Rate 5/1, 7/1 &10/1 ARMs Investment (1-4 Units ) Loan Purpose Limited Cash-Out (Rate/Term) Refi Cash-Out Refi Product Fixed Rate 5/1, 7/1 &10/1 ARMs Agency Plus: LTV/TLTV/HTLTV meets the requirements outlined below Primary (1-4 Units) Loan Purpose Limited Cash-Out (Rate/Term) Refi Cash-Out Refi Max LTV/TLTV/HTLTV no max/no max/no max 105%/no max/no max Product Fixed Rate 5/1, 7/1 &10/1 ARMs # of Units 1 1 Not Eligible Max LTV/TLTV/HTLTV no max/no max/no max 105%/no max/no max Investment (1-4 Units) Loan Purpose Limited Cash-Out (Rate/Term) Refi Cash-Out Refi 11. Minimum Credit Score Requirements (For ALL Borrowers) 12. Maximum Number of Financed Properties # of Units 1-4 1-4 Not Eligible Second Homes (1 Unit) Loan Purpose Limited Cash-Out (Rate/Term) Refi Cash-Out Refi Product Fixed Rate 5/1, 7/1 &10/1 ARMs Product Fixed Rate 5/1, 7/1 &10/1 ARMs # of Units 1-4 1-4 Not Eligible Max LTV/TLTV/HTLTV no max/no max/no max 105%/no max/no max Minimum credit score will be determined by DU. Regardless of the occupancy type (i.e., primary residence, second home or investment property), there is no limit to the maximum number of financed properties a borrower may own (individually or jointly), however the maximum dollar exposure is limited to $2.5 million dollars. Note: DU Refi Plus STM to STM transactions are EXEMPT from the guidelines outlined in Section 1.22: Maximum Number of Financed Properties and Borrower Exposure of the Correspondent Seller Guide 13. Qualifying Rate 14. Qualifying Ratio 15. Payment/Credit History For fully amortizing fixed rate transactions, the borrower(s) qualifies at the note rate. For fully amortizing 5/1 LIBOR ARMs, the borrower(s) qualifies at the greater of the note rate plus 2% or the fully indexed (index + margin) rate. For fully amortizing 7/1 and 10/1 LIBOR ARMs, the borrower(s) qualifies at the greater of the note rate or the fully indexed (index + margin) rate. The qualifying ratios will be determined by DU. As of the date of the application, the borrower is current on the mortgage being refinanced. The acceptable mortgage payment history for all mortgage tradelines is determined by DU. If a mortgage tradeline was NOT 60 days or more past due when the account was last reported (i.e., loan was current when last reported), BUT has been 60 days or more past due in the last 12 months, the loan casefile will receive an “Ineligible” recommendation. If the DU Findings Report does not address a mortgage tradeline that is 60 or more days past due within the last 12 months, that appears on the credit report, the tradeline must be manually evaluated outside of DU. It is not required that the borrower(s) comply with the waiting period and re-establishment of credit criteria following a bankruptcy, foreclosure, deed-in-lieu of foreclosure, or short sale. However if the credit history includes a bankruptcy which includes the subject property and is still open, in order for the DU Refi Plus loan to be eligible for origination, written permission from the bankruptcy court must be obtained to proceed with the refinance. Investigation of bankruptcies or foreclosures declared by the borrower in the Declarations section of the loan application is not required. All other declarations must be investigated. All other credit requirements must meet all other standard Agency DU guidelines. Reference: See Section 2.01: Agency Loan Programs of the Correspondent Seller Guide for standard Agency DU guidelines. COR 0161 (02/27/15) Page 3 of 5 No DU REFI PLUS™ LOAN PROGRAM ELIGIBILITY CHECKLIST FOR CURRENT SUNTRUST CUSTOMER(S) (STM TO STM) SunTrust Loan Number: Borrower/Co-Borrower Name: Yes 16. Cash Reserves 17. SunTrust’s Tangible Net Benefit Form Cash reserve requirement has been met. Primary (1-4 units): Per DU Second Home (1 unit): Per DU Investment (1-4 units): Per DU A “Tangible Net Benefit” form documenting the borrower is receiving a benefit is included as part of the loan file. Borrower benefit may be in the form of either: A reduced monthly mortgage principal and interest payment, A reduction in the interest rate, A reduction in the loan amortization term, or A more stable mortgage product including, but not limited to, the following: refinancing from an ARM to a fixed rate mortgage, refinancing from an interest only to a fully amortizing mortgage, decreasing the borrower’s remaining amortization period, or refinancing from an ARM to a new ARM with an initial fixed period of five years or more and equal to or greater than the initial fixed period of the existing ARM. Notes: The mortgage loan type may change from a fixed rate mortgage to an ARM provided there is a reduction in the P&I payment. The new mortgage loan may exceed the original loan term of the existing mortgage provided there is a reduction in the P&I payment or a reduction in interest rate. 18. Gifts Transaction follows current Agency DU guidelines for primary and second homes. Note: Investment properties are not eligible. Reference: See Section 2.01: Agency Loan Programs for additional information. 19. Mortgage Insurance (MI)* 20. Appraisal Requirements Transactions which require MI on the new loan are not eligible for purchase by SunTrust. TM This loan file contains the Request for Information DU Refi Plus - MI Determination for SunTrust to SunTrust Transactions - Correspondent Division form (COR 0062) evidencing the loan being paid off does not currently have Mortgage Insurance. The loan file has been documented per DU findings. "Property Fieldwork Waiver" (PFW) option is available for certain transactions The fee for each exercised “PFW” is $75 A PFW is eligible for consideration on 1 unit primary residence, second home and investment properties. A PFW is not eligible for the following transactions: 2-4 unit transactions, mixed-use properties, and properties with rural characteristics. Regardless of the LTV/TLTV/HTLTV, follow the appraisal requirements outlined in the DU Findings Report (including the ability to use a Property Fieldwork Waiver [PFW] instead of obtaining an appraisal), unless otherwise noted below: Properties with rural characteristics are not eligible for a PFW. A full appraisal is required. Reference: See Section 2.01: Agency Loan Programs for additional rural property information An appraisal report must be obtained if the following applies, regardless of the DU Findings Report indicating PFW eligibility: the lender has reason to believe that the fieldwork is warranted based on additional information obtained about the property or subsequent events such as a hurricane or other natural disaster, or based on additional information provided by DU regarding the subject property and/or loan casefile, or state law requires a full appraisal. Note: If an appraisal is obtained due to one of the reasons above and the loan is eligible for the PFW, the PFW may NOT be exercised. Reference: See Section 1.31: Disaster Area Procedures of the Correspondent Seller Guide for additional information. Notes: Fannie Mae determines the reasonableness of the collateral value based on internal model validation. If the transaction is eligible for a PFW but an appraisal is available, the PFW must be obtained but the value from the appraisal must be used when submitting to DU. When a Property Fieldwork Waiver (PFW) is used in lieu of an appraisal, the borrower(s) must sign the Notice About Appraisal of Your Property disclosure form (COR 0059) indicating that he/she understands his/her loan is being made without an appraisal. COR 0161 (02/27/15) Page 4 of 5 No DU REFI PLUS™ LOAN PROGRAM ELIGIBILITY CHECKLIST FOR CURRENT SUNTRUST CUSTOMER(S) (STM TO STM) SunTrust Loan Number: Borrower/Co-Borrower Name: Yes 21. Documentation Requirements (Income, Asset, Credit, etc.) 22. Tolerances No The loan file has been documented in accordance with documentation requirements for DU Refi Plus loan program as outlined in Section 2.04 DU Refi Plus located in the Correspondent Seller Guide. The loan meets standard Agency guidelines for Fannie Mae DU loans as outlined in the Agency product description. Reference: See the AUS Recommendations, Resubmissions and Forms topic in Section 2.01: Agency Loan Programs of the Correspondent Seller Guide for additional information. 23. Subordination If subordinate financing exists, the existing second MUST be re-subordinated to maintain the first lien priority of the new DU Refi Plus mortgage loan. Note: Subordinate financing may NOT be paid off with the proceeds of the DU Refi Plus loan, regardless if the subordinate financing is a purchase money second. The borrower is permitted to pay off or pay down an existing second mortgage from their own funds. If this loan has a SunTrust Combo or HELOC Subordination: The Subordination Agreement is in the file at the time of underwriting, The Subordination of the Combo or HELOC has been approved, and The Subordination Agreement has been recorded and is part of the closed loan file. Reference: See Section 1.26a: Subordinations for DU Refi Plus of the Correspondent Seller Guide for specific credit overlays and workflow procedures for the subordination of SunTrust second mortgages. 24. MLCS Program Code* MLCS reflects ONE of the following program codes (please check the applicable code reflected on MLCS): *To be confirmed by an Internal SunTrust Correspondent Teammate. Agency Conforming: C10RP: DU Refi Plus – Agency 10 Year Fixed, Fully Amortizing C15RP: DU Refi Plus – Agency 15 Year Fixed, Fully Amortizing C20RP: DU Refi Plus – Agency 20 Year Fixed, Fully Amortizing C30RP: DU Refi Plus – Agency 30 Year Fixed, Fully Amortizing A51RP: DU Refi Plus – Agency 5/1 ARM, Fully Amortizing, 2/2/5 caps 51RP: DU Refi Plus – Agency 5/1 ARM, Fully Amortizing, 5/2/5 caps 71RP: DU Refi Plus – Agency 7/1 ARM, Fully Amortizing 10RP: DU Refi Plus – Agency 10/1 ARM, Fully Amortizing Agency Plus: C10HRP: DU Refi Plus – Agency Plus 10 Year Fixed Rate, Fully Amortizing C15HRP: DU Refi Plus – Agency Plus 15 Year Fixed Rate, Fully Amortizing C20HRP: DU Refi Plus – Agency Plus 20 Year Fixed Rate, Fully Amortizing C30HRP: DU Refi Plus – Agency Plus 30 Year Fixed Rate, Fully Amortizing A51HRP: DU Refi Plus – Agency Plus 5/1 ARM, Fully Amortizing, 2/2/5 caps 51HRP: DU Refi Plus – Agency Plus 5/1 ARM, Fully Amortizing, 5/2/5 caps 71HRP: DU Refi Plus – Agency Plus 7/1 ARM, Fully Amortizing 10HRP: DU Refi Plus – Agency Plus 10/1 ARM, Fully Amortizing 25. Existing SunTrust Loan Number For all DU Refi Plus transactions, on MLCS screen M03, (process flow 05/01): a “Y” (for Yes) must be entered in the “SUNTRUST TO SUNTRUST REFI” field, and the existing (i.e., original) loan number must be entered in the “STM REFI LOAN NUMBER FIELD.” *To be confirmed by an Internal SunTrust Correspondent Teammate. Reference: See the MLCS Setup and Processing topic outlined in Section 2.04 DU Refi Plus located in the Correspondent Seller Guide. 26. Special Feature Codes MLCS reflects special feature code 807 is required for all DU Refi Plus loans originated with a Property Fieldwork Waiver (PFW). *To be confirmed by an Internal SunTrust Correspondent Teammate. Note: On MLCS, the applicable special feature codes MUST BE entered on screen M0B (process flow 05/01) in the field labeled “AGENCY SPECIAL FEATURE CODES.” _________________________________________________________ Signature COR 0161 (02/27/15) Page 5 of 5 _____________________ Date
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