Gree Tree Homepath
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Gree Tree Homepath



Get the inside detail on how to most effective use this product as a Green Tree Correspondent.

Get the inside detail on how to most effective use this product as a Green Tree Correspondent.



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Gree Tree Homepath Gree Tree Homepath Document Transcript

  • Homepath "Notice: Please note that this is not a client offer or solicitation for all loan products listed. All loans submitted for purchase by Green Tree Servicing LLC (“Green Tree”) must be eligible for purchase by Green Tree and be in full compliance with the Green Tree Loan Product Matrix and Green Tree Client Contract for each approved client."
  • • What are the HomePath Products? • AUS and Qualifications • High Balance Option • FAQ’s • Questions Agenda 5/13/2013 3
  • › No appraisal fees › No mortgage insurance Gifts (if no minimum investment required) borrowers own savings; › Down payment of at least 3 percent can be funded by: › Available for owner occupied, second and investments › Low down payment and flexible mortgage terms (fixed-rate, adjustable-rate) • A program designed to move REO homes • The benefits include: What is HomePath? 5/13/2013 4
  • 30 Year Fixed High Balance 20 Year Fixed High Balance › High Balance Limits 8-30 Year Fixed › Conforming Limits • Fixed Options: Available Terms 5/1 LIBOR › High Balance Limits 7/1 LIBOR 5/1 LIBOR › Conforming Limits • Arm Options: 5/13/2013 5
  • › Investment Properties › Second Homes › Primary Residence • Purchase ONLY of: Transaction Type and Occupancies 5/13/2013 6
  • Properties located in Hawaii, West Virginia or New York are not permitted. Leasehold Estates Modular/ Pre-Cut Fannie Mae Warrantable with special caveats Condo's Fannie Mae Warrantable PUD's 1-4 units Eligible Property Types 5/13/2013 7
  • and that fidelity insurance exists. flood if applicable adequate hazard/homeowners • The Lender must provide evidence of: 5/13/2013 • Lender is not required to warrant that the condominium project meets Fannie Mae’s project eligibility criteria, provided that for each mortgage secured by a condominium unit. (See the Client Guide for the policy on Condominium Comparables) Established Attached Condominium projects* – Must have Lender Full Review New and Newly converted Attached Condominium projects – Must have PERS Final Project Approval issued by FNMA (posted on › Eligible Project Warranty › Primary Residence - full project warranty required › Second homes and Investment properties not permitted • Florida Condos Condo Caveats 8
  • › Tax Identification Number (TIN) is not acceptable › Must be employed in the U.S. › Must be a legal resident of the U.S. as evidenced by social security number • Non-Permanent Resident Alien 5/13/2013 › Provide Alien Registration Card if borrower is not living in the U.S. • Permanent Resident Aliens • US Citizens Eligible Borrowers 9
  • AUS and Qualifications
  • 5/13/2013 › Any message related to the level of fieldwork recommendation › Any message that says the maximum allowable interested-party contribution has been exceeded on principal residence or second home with LTV >90% › Any message relating to amount of MI required • The following DU messages may be disregarded, provided that the loan complies with all HomePath Mortgage requirements: › DU recommendation of Approve/Eligible • Underwriting through DU is required Automated Requirements 11
  • 7/1 5/1 5/13/2013 Qualify using the greater of the fullyindexed, fully-amortizing rate or Note rate + 2.0%. Ratios are evaluated by DU to a maximum 50% DTI Qualify at Note rate. Fixed Rate Fully Amortizing Fixed Rate & LIBOR ARMS Qualifying and Ratios 12
  • Fixed Rate LTVs/Score Requirements 5/13/2013 13
  • ARM LTVs/Score Requirements 5/13/2013
  • • Refer to LTV charts for limitations ***DPA Programs are NOT permitted*** › Is Permitted Secondary Financing 5/13/2013 15
  • • • • Green Tree first and second liens: Maximum combined loan amount <= $1 million Green Tree first and other lender second liens: Maximum combined loan amount <= $1.25 million Green Tree total overall exposure with a borrower <= $1.5 million › › › Green Tree first and second liens: Maximum combined loan amount <= $650,000 Green Tree first and other lender second liens: Maximum combined loan amount <= $1 million Green Tree total overall exposure with a borrower <= $1 million › › › › Individual loan amount <= $650,000 › All loans must be submitted to Green Tree Non Delegated & Broker 5/13/2013 Total overall exposure includes all Green Tree liens on all properties owned by the borrower High Balance/Super Conforming loan products are not eligible › Conditional Delegated Total overall exposure includes all Green Tree liens on all properties owned by the borrower Individual loan amounts <= $1 million › Delegated Underwriting Authority 16
  • Requires 48 month period to re-establish credit 5/13/2013 › Participation in a restructure of the mortgage due to delinquency. › Short payoff related to a delinquent mortgage obligation within the last seven years › One or more mortgage/rental delinquency of 60, 90, 120,150 days or greater reported within 12 months of the date of the credit report. • Mortgage Delinquencies - Loans will be ineligible with: • DU Approve/Eligible recommendations only. Credit 17
  • 5/13/2013 A minimum of two years must have elapsed since the date of the discharge of bankruptcy › Chapter 13 Bankruptcy 18 A minimum of four years must have elapsed since the date of the discharge or dismissal of bankruptcy › Chapter 7 Bankruptcy • Standard conforming bankruptcy and foreclosure guidelines apply. Refer to the Correspondent Funding Client Guide (Chapter 6F) for more details. Bankruptcy/Foreclosures
  • 2-4 units < 80% Second Homes< 80% › › › › 2% Investment Properties 9% for CLTV < 75% 6% for CLTV > 75% Primary Residence and Second Homes • Seller Contributions: Basis for the limit is based on CLTV ratio › All Investment Properties › Second Homes > 80% › High Balance Primary Residence > 80% › 2 – 4 units Primary Residence > 80% • 5% Investment from borrowers own funds required when: 1 unit Primary Residence (excluding High Balance Mortgages > 80%) › • No minimum borrower investment required when: Borrower Investment 5/13/2013 19
  • 5/13/2013 Follow DU for the subject property and 2 months PITIA for each additional financed second home or investment property › Second Homes and Investment Properties If either the borrower’s primary residence is for sale, but the sale will not close before the Note Date of the Mortgage on the new primary residence, or the borrower is converting his/her primary residence to a second home or Investment property; Six months PITIA reserves required for both the retained and subject properties 1 – 4 units – Follow DU › Primary Residence › Additional reserves may be required by DU based on risk. • Reserves Gifts are not permitted. › Investment Properties The Borrower Investment is waived on primary residences and second homes when gift funds reduce the LTV/CLTV to < 80%. Acceptable provided Borrower Investment is met. › Primary Residence and Second Homes • Gifts Gifts and Reserves 20
  • Lender must not request a copy of the appraisal, but if one is provided by the borrower then it must be included in the loan file with a note that the appraisal was ordered by the borrower outside of the loan transaction and was not reviewed or approved by Lender. The property value shown on the appraisal will not impact the LTV calculation Lender must inform the borrower that the purpose of the borrower-ordered appraisal and its contents are for the use and information of the borrower only, and will not be considered for purposes of the loan transaction › › › 5/13/2013 The borrower must order the appraisal from an appraiser selected by the borrower (and not one recommended by Lender), and the appraisal must be paid for by the borrower outside of the loan transaction. › • If the borrower, at its option, chooses to obtain an appraisal, then: • Client is not required to represent and warrant the value or condition of the property • The sales price of the property (as evidenced by the sales contract between Fannie Mae and the buyer/borrower) will be used as the property value for purposes of loan delivery and for determining the LTV/CLTV • No appraisal is required Appraisals 21
  • • NOT REQUIRED!! Mortgage Insurance 5/13/2013 22
  • FNMA HomePath Logo’s 5/13/2013 23
  • › This property has 10 DAYS left in FIRST LOOK • New First Look Time Clock feature: 5/13/2013 24 › First Look is designed to provide owner occupants and buyers a “first look” at Fannie Mae homes. Under First Look, Fannie Mae will only consider offers from owner occupants during the first 15 days a property is listed in the local multiple listing service (MLS). If the property is still for sale on the 16th day, investor offers may be submitted and will be considered. • First Look for Fannie Mae Homes FNMA HomePath – First Look
  • 620 is the absolute minimum score. Higher scores may be required depending on LTV; for example a 97% requires a 660 YES! Manual Underwrites are NOT permitted. NO. YES! Visit 5/13/2013 • Lender must document the file with the appropriate pages printed from showing that the property was eligible for HomePath financing. › • Is there a way to locate homes that are owned by Fannie as REO’s? › • Is the 97% LTV option eligible for High Balance? › • Do these loans have to go through DO/DU? › • What is the minimum credit score allowed? FAQ’s and Tips 25
  • Green Tree’s Homepath 5/13/2013 Questions? 26
  • The Client Guide Product Matrix › › Your Sales Director or Account Executive › 877-700-4622, Option 9 Client Services › › • Contact: Green Tree Website › • Refer to: Further Information 5/13/2013 27