• an interest only loan to a fully amortized loan: or
• an ARM to a fixed rate; or
• reducing a 30 year fixed term to a 15 year fixed rate term

Fixed Rate: FNRFP15F, FNRFP20F, FNRFP30F

ARM: FNRFP5YL, FNRFP7YL, FNRFP10Y

HIGH BALANCE LOAN AMOUNTS

Fixed Rate: HBRFP15F, HBRFP30F

ARM: HBRFP5YL

Fixed Rate: 120, 180, 240, 300, 360

ARM: 180 or 360months

High Balance

Fixed Rate: 180 & 360 months only

ARM: 360 months only

Caps:  5/1, 7/1 and 10/1:  5/2/5

Margin:  2.25%

Index:  Average of the interbank offered rates for (1) year US dollar deposits in the London market, as published in the Wall Street Journal.

• 1 Unit Single Family Residence
• 2 – 4 Units  
• FNMA Eligible Condos and Planned Unit Developments (PUDs)

• Manufactured Homes
• Co-Ops

• DU Approve/Eligible
• DU Approve/Ineligible (Ineligible only for LTV/CLTV/HCLTV ratios or minimum representative credit scores)

• Loans with new subordinate financing
• Loans receiving Expanded Approval findings

EXPANDED ELIGIBILITY

• 3-4 Unit Primary Residence
• 1-4 Unit Investment Property

For all other transactions, the current FNMA DU maximum allowable LTV/CLTV/HCLTV will apply. See lending grids at end of this program description.

• Leasehold estates must follow FNMA & EverBank Leasehold standards as

• Leasehold properties will require an ALTA leasehold endorsement.
• Properties identified in Lava Flow Zones #1 & #2 are considered ineligible. 

• Primary
• Second Homes
• Investment

• The borrowers on the existing mortgage must be identical to the borrowers on

• Borrowers may be added to the new loan, provided the existing borrower is retained. In addition, the new borrower(s) must be one of the following:
• U.S. Citizen
• Permanent Resident Aliens
• Non-Permanent Resident Aliens

2 Units: $533,850                                         2 Units: $800,775

3 Units: $645,300                                         3 Units: $967,950

4 Units: $801,950                                         4 Units: $1,202,925

These amounts are the maximum loan amounts that may apply in high-cost areas; the limit may be lower for a specific high-cost area.

High-Cost areas and maximum loan amounts can be found at the end of this program description.

In all cases, the qualifying payment should be reflected in the housing and debt ratios and noted as such on the Transmittal Summary (Form 1008).

• All existing subordinate financing must be re-subordinated. It cannot be paid off as  part of a DU Refinance Plus transaction
• No new subordinate financing is permitted.

LTV: Obtained by dividing the first lien amount by the value

CLTV: Obtained by dividing the first lien amount and the disbursed amount of the HELOC & any other secondary financing by value.

HCLTV: Obtained by dividing the first lien amount and the total HELOC credit line limit & any other secondary financing by the value.

*All CLTV limits must be satisfied first in order to be eligible for HCLTV limits. *

• Mortgage Insurance is not required for this DU Refinance Plus loan

In addition to this DU message, all loan files not currently serviced by EverBank will require a copy of the existing mortgage monthly statement to confirm no MI currently is in force. Loans currently being serviced by EverBank will need to confirm that no mortgage insurance is in place on the existing loan via MSP. (MIP - Screen to confirm MI Code of 13)

If the original LTV on the existing FNMA loan was > 80.00% and DU does not issue the message above, the loan is ineligible for a DU Refi Plus and the borrower should be offered a different loan transaction.

Existing FNMA-owned loans that currently have Lender Paid MI are NOT eligible for DU Refi Plus.  They will never receive a message offering a DU Refi Plus transaction.

All DU Refi Plus loans greater than 80.01% without MI will require a new MI code of  95 at time of Loan Delivery. (See end of PDS)

• Pay off of 1^st Lien regardless of age.
• No subordinate financing may be paid off with the proceeds of the new mortgage
• Pay related closing costs, prepaid items and points
• Disburse cash out to Borrower not to exceed 2% or $2000, whichever is less.

•  
  Required, unless LTV is 80% or less, subject to price adjustment; refer to rate sheet.

•  
  Ineligible

Certain DU Refi Plus loans will waive the requirement for an appraisal or exterior-only property inspection. For those specific DU Refi Plus loans, the DU Finding Report will issue two property fieldwork recommendation messages:

• One message will indicate that the loan is eligible for the DU Refi Plus;

     Property Fieldwork Waiver : AND

• The other message will indicate the minimum level of property fieldwork required if the lender does not elect to exercise the DU property report waiver.

If a loan is ineligible for PFW and DU does not offer the Property Fieldwork Waiver, a message will be issued indicating the minimum level of property fieldwork required.

The DU Property Fieldwork Waiver will not be offered in the following scenarios:

• Loans that receive an Approve/Ineligible recommendation from DU
• All 2-4 unit properties

The Property Fieldwork Waiver offered by DU is only valid if offered on the final DU submission. Any subsequent submissions to DU where the Property Fieldwork Waiver is not offered invalidates the option to use the PFW and the minimum level of property fieldwork must be used. 

To identify the loan is exercising this option the underwriter should select the PIW flag in the front-end system. All Property Fieldwork Waivers will require the SFC Code of 807 at Loan Delivery and a fee of $75.00.

An EverBank Borrower DU Refi Plus Affidavit Form has been created.   This will be part of the application package and can be signed prior to closing OR the Underwriter should place an At Closing UW condition in order to get this signed as part of the closing package.

EverBank must only confirm the property is not a CondoTel. (web site confirmation)

FNMA Project Type Codes are required at Loan Delivery as follows:

V - Condominiums

E - PUD’s

Underwriters will be required to place the correct Condo V Project Type on the final 1008 since LQ & WITS currently do not support this value. (Pending LOS updates)

 
Property Fieldwork Waiver - When offered and executed, all loans should apply and select the PIW Flag in your LOS for correct identification.

• All loans originated under this program must be underwritten through DU
• Follow FNMA Seller Guide standards when not addressed
• Underwriting is subject to EverBank guidelines

• Salary/Bonus/Overtime: 1 current paystub and a verbal verification of employment (VVOE)
• Commission/Self-Employment – 1 year’s federal income tax returns

The “Representative” FICO score for all qualifying borrowers is determined as follows:

• One Borrower: Lowest of 2 or Middle of 3 FICO’s obtained
  • Multiple Borrowers: Lowest “applicable” FICO among ALL borrowers used to determine “representative” FICO for product eligibility.

Minimum Credit Score requirements:

LTV’s < 80%: No minimum credit score required

LTV’s > 80%: 580 minimum credit score required

                         680 minimum credit score for High Balance ARMs

Collections/Charge-offs:

• DU Loans
• 1 Unit, Primary Residence – Collection and charge-off accounts are not required to be paid off, regardless of the amount, provided the account does not threaten the subject loan’s first lien position. 
• 2 – 4 Unit Primary Residence and Second Home – Accounts totaling up to $5,000 in aggregate may remain unpaid.  All others must be satisfied prior to closing.
• Investment properties - Accounts up to $250 per acct. or $1000 in aggregate may remain unpaid.  All others must be satisfied prior to closing.

Please refer to the DU findings report for any adverse credit policy messages.

• Co-signed Loan:  A co-signed debt may be excluded from ratios provided there is documentation to show the primary obligor has made the last 12 months payments and there is not a history of delinquencies.
• Property Settlement “Buyouts”: Outstanding mortgage liabilities may be excluded from ratios provided a transfer of title is obtained to release our borrower (Quit Claim Deed)
• Assumptions: Contingent mortgages are not considered in qualifying ratios with evidence of ownership transfer, & a executed assumption agreement, and evidence of timely payments during the most recent 12 month period OR borrower must qualify with the full payment.
• Court-Ordered Assignment of Debt: Long term debt may be excluded from ratios provided a divorce decree/separation agreement specifies another individual as responsible & transfer of ownership can be documented.
• Loans Secured by Financial Assets (401-K’s): Loans secured by a financial asset may be excluded from long term debt provided the acct. statement indicates the asset as collateral for the outstanding loan. These same assets used for the subject transaction must be discounted to reduce the value of the asset by the loan amount.

• Production closer approval required
• Follow agency and published standards

• 147 - DU Refi Plus Program
• 807 - Property Fieldwork Waiver Exercised ($75.00) PIW Flag Set
• 95 - NO MI Code -All LTV’s over 80.01% without MI

FNMA Unique Project Type Codes:

• V - Condominiums (Underwriter to place on 1008- Pending LOS updates)
• E - PUD’s

5/1, 7/1 and 10/1 ARMs:  Assumable with borrower qualification and lender approval after initial fixed period.

5/1 ARM:  1 year LIBOR 51525 

7/1 ARM:  1 year LIBOR 71525  

10/1 ARM:  1 year LIBOR 10525

5/1 ARM:  5/1 year LIBOR NonConvrt 525 caps/MAPS

7/1 ARM:  7/1 year LIBOR NonConvrt 525 caps/MAPS

10/1 ARM:  10/1 year LIBOR NonConvrt 525 caps

5/1 ARM:  Note 3528 & Rider 3187

7/1 ARM:  Note 3528 & Rider 3187

10/1 ARM:  Note 3528 & Rider 3187