From Everbank
FNMA Refinance Plus Conforming
Fixed & ARM Mortgages
-
FNRFP15F, FNRFP20F,
FNRFP30F, FNRFP5YL, FNRFP7YL, FNRFP10Y, HBRFP15F, HBRFP30F, HBRFP5YL
Fannie Mae’s Home Affordable Refinance
program provides refinance opportunities to borrowers with existing
Fannie Mae loans who have demonstrated an acceptable payment history
but due to declining home values have been unable to refinance to a
lower payment. This program offers options to refinance into a
more stable mortgage product.
Effective Monday April 6, 2009, the FNMA
DU Refinance Plus will be available to all production channels as any
lender may refinance the existing mortgage without being the current
mortgage servicer. This is the first of subsequent phases based on additional
MI partner participation. Key benefits of the April version will
allow current FNMA uninsured MI loans which will now exceed an 80% LTV
to refinance without new MI up to the maximum LTV/CLTV/HCLTV as outlined
in the lending grid.
Highlights of this initial product offering
include the following:
- All loans must receive a DU
Approve/Eligible only. (No Expanded Approval or Manual UW, although
some Approve/Ineligible will apply)
- The April version will follow
the Standard FNMA DU lending grid with some expanded LTV/CTLV/HCLTV
up to 80.00% from 75.00% for 3-4 unit primary residences and for investment
properties. (Not High Balance)
- New subordinate financing
is not permitted and existing subordinate financing cannot be paid off
at closing, it must be re-subordinated.
- No minimum FICO for LTV’s
< 80.00%
- A minimum FICO of 580 for
LTV’s > 80.00%
- A minimum FICO of 680 for
all High Balance ARMs at LTV’s > 80.00%.
- Mortgage Insurance will not
be required as long as the original FNMA mortgage did not require primary,
borrower-paid MI. Lender Paid MI is not available under this program.
- Project reviews for Condominiums
and PUDs are not required.
- This product is not subject
to the EverBank Declining Markets policy
| PRODUCT |
FNMA DU Refi Plus Conforming
Fixed Rate & ARM Mortgages |
| PROGRAM OVERVIEW |
The FNMA Home Affordable Refinance
program is for FNMA guaranteed loans that provide the borrower with
acceptable payment histories unique refinance opportunities due to declining
home price values. All loans will require DU approval and offer
expanded eligibility criteria and reduced documentation requirements.
|
| PROGRAM INTENT |
This program is designed to
provide a benefit to the borrower by refinancing their current loan
into a more stable product. Examples of this are transactions that move
the borrower from:
- 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
|
| LOAN PROGRAM
CODES
|
Fully
Amortized
Fixed Rate: FNRFP15F,
FNRFP20F, FNRFP30F
ARM: FNRFP5YL, FNRFP7YL,
FNRFP10Y
|
| LOAN PROGRAM
CODES –
HIGH BALANCE LOAN AMOUNTS
|
Fully Amortized
Fixed Rate: HBRFP15F,
HBRFP30F
ARM: HBRFP5YL
|
| LOAN
TYPE |
Limited Cash-Out Refinance |
| LOAN TERM
|
Fully Amortized
Fixed Rate:
120, 180, 240, 300, 360
ARM:
180 or 360months
High Balance
Fixed Rate: 180 &
360 months only
ARM: 360 months only
|
| ARM FEATURES |
Conversion Option:
None
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.
|
| ELIGIBLE
PROPERTY TYPES
|
- 1 Unit Single Family
Residence
- 2 – 4 Units
- FNMA Eligible Condos
and Planned Unit Developments (PUDs)
|
| INELIGIBLE
PROPERTY TYPE |
- Manufactured Homes
- Co-Ops
|
| ELIGIBLE
DU RECOMMENDATIONS |
- DU Approve/Eligible
- DU Approve/Ineligible
(Ineligible only for LTV/CLTV/HCLTV ratios or minimum representative
credit scores)
|
| INELIGIBLE
TRANSACTIONS
|
- Loans with new subordinate
financing
- Loans receiving
Expanded Approval findings
|
| DU REFI PLUS-
EXPANDED ELIGIBILITY
|
The following transactions
which are currently limited to 75% LTV/CLTV/HCLTV will be eligible up
to 80% LTV/CLTV/HCLTV under this version of DU Refinance Plus. This
does not include High Balance.
- 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.
|
| STATE SPECIFIC
CRITERIA – HAWAII
|
- Leasehold estates
must follow FNMA & EverBank Leasehold standards as
published in the EverBank Corporate Underwriting Guidelines
- Leasehold properties
will require an ALTA leasehold endorsement.
- Properties identified
in Lava Flow Zones #1 & #2 are considered ineligible.
|
| INELIGIBLE
LENDING AREAS |
Guam, Puerto Rico, US Virgin
Islands |
| OCCUPANCY |
- Primary
- Second Homes
- Investment
|
| ELIGIBLE
BORROWERS |
- The borrowers on
the existing mortgage must be identical to the borrowers on
the new mortgage
- 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
|
| INELIGIBLE
BORROWERS |
Foreign Nationals |
| LOANS PER
BORROWER
|
No Limit - The FNMA Multiple
Mortgages to the Same Borrower
policy as announced in FNMA Announcement #09-02 does not apply to the
FNMA DU Refi Plus program. No message will be issued from DU, and all
loans under this program are exempt from this policy. |
| MINIMUM LOAN
AMOUNT |
None |
| MAXIMUM LOAN
AMOUNTS |
1 Unit: $417,000
Alaska & Hawaii*: 1 Unit: $625,500
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
|
| HIGH BALANCE
MAXIMUM LOAN AMOUNTS
|
1 Unit: $625,500
Alaska & Hawaii*: 1 Unit: $938,250
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.
|
| HOUSING /
DEBT RATIOS |
No maximum; as determined
by DU |
| MAXIMUM LTV
RATIOS |
See lending grids at end of
program description for Maximum LTV/CLTV/HCLTV Ratios. |
| QUALIFYING
RATE AND PAYMENT |
Fully Amortized 5/1, 7/1,
& 10/1 ARMs: Qualify at Note rate
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).
|
| GIFT DOCUMENTATION |
DU: Gift information
is provided on the 1003 and must include the donor’s name/address/phone
number, the amount of the gift, and the relationship to the borrower. |
| RESERVES |
As determined by DU |
| SUBORDINATE
FINANCING |
- 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/CLTV/HCLTV
definitions are outlined below:
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 |
Mortgage Insurance will not
be required for DU Refi Plus loans with an LTV > 80.00% if the
original LTV on the existing FNMA loan was less than or equal to
80%. The following message will be issued by DU when mortgage insurance
is not required:
- 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)
|
| REFINANCE
DEFINITIONS
|
Limited Cash-Out Refinance:
- Pay off of 1st
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.
|
| ESCROWS |
-
Required, unless LTV is
80% or less, subject to price adjustment; refer to rate sheet.
|
| TEMPORARY
BUYDOWNS |
|
| PREPAYMENT
PENALTY |
None |
| APPRAISAL
REQUIRMENTS |
Appraisal Standards will be
determined by DU with new options as outlined below:
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.
|
| PROPERTY
LISTED FOR SALE |
FNMA Announcement 08-22 requires
lenders to confirm that the subject property is not currently listed
for sale. All loans where the Property Fieldwork Waiver is exercised
will require a signed affidavit from the borrower disclosing how long
the borrower has owned the property and whether the property is currently
listed for sale.
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.
|
| PROJECT WARRANTY
STANDARDS |
Project Warranty Reviews are
not required for Condominiums or PUD projects.
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)
|
| AGE OF CREDIT
PACKAGE & APPRAISAL DOCUMENTS |
The credit package and all
appraisal documentation (including Property Fieldwork Waiver) must be
no older than 120 days to the Note date.
Property Fieldwork Waiver - When offered and executed, all loans should
apply and select the PIW Flag in your LOS for correct identification.
|
| DECLINING
MARKET POLICY
|
This product is not subject
to the EverBank Declining Market Policy – Maximum LTV/CLTV will be
determined by DU or per the lending grids at the back of the program
description. |
| UNDERWRITING
GUIDELINES |
- 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
|
| INCOME DOCUMENTATION
REQUIREMENTS |
Income must be documented
to the DU Finding report. The minimum requirements issued by DU
are as follows:
- Salary/Bonus/Overtime:
1 current paystub and a verbal verification of employment (VVOE)
- Commission/Self-Employment
– 1 year’s federal income tax returns
|
| 4506-T
|
Required for all loans. Refer
to Underwriting Bulletin #2009-13 for requirements. |
CREDIT
REPORT & CREDIT SCORE REQUIREMENTS
|
A residential mortgage credit
report or tri-merged report conforming to all FNMA requirements may
be used.
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
|
ADVERSE CREDIT
POLICY
|
Judgments/Garnishments:
All must be satisfied prior to closing.
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.
|
| CONTINGENT
LIABILITIES
|
- 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.
|
| POWER
OF ATTORNEY |
Eligible:
- Production closer
approval required
- Follow agency and
published standards
|
| LOAN
DELIVERY CODING - SPECIAL FEATURE CODES (SFC) |
Loan Delivery SFC codes MUST
be submitted to FNMA as follows:
- 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
|
| ASSUMABILITY
|
Fixed Rate: Not Assumable
5/1, 7/1 and 10/1 ARMs:
Assumable with borrower qualification and lender approval after initial
fixed period.
|
| DISCLOSURES |
Fixed Rate:
Standard Disclosure Package
5/1 ARM:
1 year LIBOR 51525
7/1 ARM:
1 year LIBOR 71525
10/1 ARM: 1 year
LIBOR 10525
|
| CLOSING PACKAGE
NAME |
Fixed Rate: Conventional
Fixed Rate
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
|
| NOTES AND
RIDERS |
Fixed Rate: Multistate
Fixed Rate Note # 3200 (or state specific as required)
5/1 ARM: Note
3528 & Rider 3187
7/1 ARM: Note
3528 & Rider 3187
10/1 ARM: Note
3528 & Rider 3187
|
| ORIGINATION
CHANNELS (A) |
All Production Channels |
DU ELIGIBILITY
MATRICES
|
FULLY AMORTIZED FIXED RATE
AND ARMS |
|
Limited Cash-Out Refinance |
| Occupancy |
Number of Units
|
LTV |
CLTV |
HCLTV |
Minimum
FICO |
|
Primary Residence |
1-2 |
80.01-95 |
95 |
95 |
580 |
| 80 |
95 |
95 |
N/A |
| 3-4 |
80 |
80 |
80 |
N/A |
| Second
Home |
1 |
80.01-90 |
90 |
90 |
580 |
| 80 |
90 |
90 |
N/A |
| Investment |
1-4 |
80 |
80 |
80 |
N/A |
| HIGH
BALANCE FULLY AMORTIZED FIXED RATE AND ARMS
1 |
|
Limited Cash-Out Refinance |
| Occupancy |
Number of Units |
LTV |
CLTV |
HCLTV |
Minimum FICO1 |
|
Primary Residence
and Second Home
|
1 |
80.01-90 |
90 |
90 |
580 |
| 80 |
90 |
90 |
N/A |
| Investment |
1 |
75 |
75 |
75 |
N/A |
1 The minimum
credit score for High-Balance ARMs > 80% LTV is 680 – no exceptions
HIGH BALANCE
HIGH-COST AREA MAXIMUM LOAN AMOUNTS
|
State
|
County
Name |
1-Unit
Limit |
|
California |
Alameda |
625,500 |
| Alpine |
463,450 |
| Contra
Costa |
625,500 |
| El
Dorado |
474,950 |
| Los
Angeles |
625,500 |
| Marin |
625,500 |
| Mono |
529,000 |
| Monterey
|
483,000 |
| Napa
|
592,250 |
| Nevada |
477,250 |
| Orange
|
625,500 |
| Placer |
474,950 |
| Sacramento |
474,950 |
| San
Benito |
625,500 |
| San
Diego |
546,250 |
| San
Francisco |
625,500 |
| San
Luis Obispo |
561,200 |
| San
Mateo |
625,500 |
| Santa
Barbara |
603,750 |
| Santa
Clara |
625,500 |
| Santa
Cruz |
625,500 |
| Sonoma |
520,950 |
| Ventura
|
598,000 |
| Yolo |
474,950 |
| Colorado |
Eagle |
625,500 |
| Hinsdale |
423,200 |
| Lake |
625,500 |
| Ouray |
419,750 |
| Pitkin |
625,500 |
| Routt |
625,500 |
| San
Miguel |
625,500 |
| Summit |
625,500 |
|
Connecticut |
Fairfield |
511,750 |
| District
of Columbia |
District of Columbia |
625,500 |
| Florida |
Collier |
448,500 |
| Monroe |
529,000 |
| Georgia |
Greene |
515,200 |
| Hawaii |
Honolulu |
721,050 |
| Kauai |
713,000 |
| Maui |
626,750 |
| Idaho |
Blaine |
457,700 |
| Teton |
625,500 |
| Maryland |
Anne Arundel |
494,500 |
| Baltimore |
494,500 |
| Baltimore
City |
494,500 |
| Calvert |
625,500 |
| Carroll |
494,500 |
| Charles |
625,500 |
| Frederick |
625,500 |
| Harford |
494,500 |
| Howard |
494,500 |
| Montgomery |
625,500 |
| Prince
George's |
625,500 |
| Queen
Anne's |
494,500 |
| Massachusets |
Bristol |
426,650 |
| Dukes |
625,500 |
| Essex |
465,750 |
| Middlesex |
465,750 |
| Nantucket |
625,500 |
| Norfolk |
465,750 |
| Plymouth |
465,750 |
| Suffolk |
465,750 |
| New
Hampshire |
Rockingham |
465,750 |
| Strafford |
465,750 |
| New
Jersey |
Bergen |
625,500 |
| Essex |
625,500 |
| Hudson |
625,500 |
| Hunterdon |
625,500 |
| Middlesex |
625,500 |
| Monmouth |
625,500 |
| Morris |
625,500 |
| Ocean |
625,500 |
| Passaic |
625,500 |
| Somerset |
625,500 |
| Sussex |
625,500 |
| Union |
625,500 |
| New
York |
Bronx |
625,500 |
| Kings |
625,500 |
| Nassau |
625,500 |
| New
York |
625,500 |
| Putnam |
625,500 |
| Queens |
625,500 |
| Richmond |
625,500 |
| Rockland |
625,500 |
| Suffolk |
625,500 |
| Westchester
|
625,500 |
| North
Carolina |
Camden |
625,500 |
| Currituck |
458,850 |
| Hyde |
483,000 |
| Pasquotank |
625,500 |
| Perquimans |
625,500 |
| Pennsylvania |
Pike |
625,500 |
| Rhode
Island |
Bristol |
426,650 |
| Kent |
426,650 |
| Newport |
426,650 |
| Providence |
426,650 |
| Washington |
426,650 |
|
Utah |
Salt Lake |
600,300 |
| Summit |
600,300 |
| Tooele |
600,300 |
| Virginia |
Albemarle County |
437,000 |
| Amelia
County |
535,900 |
| Arlington
County |
625,500 |
| Caroline
County |
535,900 |
| Charles
City County |
535,900 |
| Chesterfield
County |
535,900 |
| Clarke
County |
625,500 |
| Cumberland
County |
535,900 |
| Dinwiddie
County |
535,900 |
| Fairfax
County |
625,500 |
| Fauquier
County |
625,500 |
| Fluvanna
County |
437,000 |
| Gloucester
County |
458,850 |
| Goochland
County |
535,900 |
| Greene
County |
437,000 |
| Hanover
County |
535,900 |
| Henrico
County |
535,900 |
| Isle
of Wight County |
458,850 |
| James
City County |
458,850 |
| King
and Queen County |
535,900 |
| King
William County |
535,900 |
| Lancaster
County |
442,750 |
| Loudoun
County |
625,500 |
| Louisa
County |
535,900 |
| Mathews
County |
458,850 |
| Nelson
County |
437,000 |
| New
Kent County |
535,900 |
| Powhatan
County |
535,900 |
| Prince
George County |
535,900 |
| Prince
William County |
625,500 |
| Spotsylvania
County |
625,500 |
| Stafford
County |
625,500 |
| Surry
County |
458,850 |
| Sussex
County |
535,900 |
| Warren
County |
625,500 |
| York
County |
458,850 |
| Alexandria
city |
625,500 |
| Charlottesville
city |
437,000 |
| Chesapeake
city |
458,850 |
| Colonial
Heights city |
535,900 |
| Fairfax
city |
625,500 |
| Falls
Church city |
625,500 |
| Fredericksburg
city |
625,500 |
| Hampton
city |
458,850 |
| Hopewell
city |
535,900 |
| Manassas
city |
625,500 |
| Manassas
Park city |
625,500 |
| Newport
News city |
458,850 |
| Norfolk
city |
458,850 |
| Petersburg
city |
535,900 |
| Poquoson
city |
458,850 |
| Portsmouth
city |
458,850 |
| Richmond
city |
535,900 |
| Suffolk
city |
458,850 |
| Virginia
Beach city |
458,850 |
| Williamsburg
city |
458,850 |
| Washington |
King |
506,000 |
| Pierce |
506,000 |
| San
Juan County |
483,000 |
| Snohomish |
506,000 |
| West
Virginia |
Jefferson |
625,500 |
| Wyoming |
Teton |
625,500 |
|