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DU Refi Plus

"Notice: Please note that this is not a client offer or solicitation for all loan products
listed. All loans...
?

TO ASK A QUESTION DURING THE
SESSION, SELECT THE CHAT OR
ICON, TYPE YOUR QUESTION AND
SEND IT TO THE HOST. YOU MAY
ALSO...
• FAQ’s
• Questions

› DU 9.0 Updates

• What is HARP/DU Refi Plus?
• AUS and Qualifications

Agenda

5/31/2013
3
5/31/2013

• HARP is program to help borrowers, who are current
on their mortgage but may not be eligible for a
traditiona...
5/31/2013

› waiving the requirement for appraisals in most cases

› reduced documentation

› lower acceptable credit scor...
5/31/2013

• DU/DO will issue a new finding that states the loan
is eligible but not underwritten as DU Refi Plus
because ...
5/31/2013

The existing first mortgage must have closed prior to June 1,2009
to be eligible

http://loanlookup.fanniemae.c...
Loan term is shortened, or

Interest rate is reduced

›

›

An ARM to a Fixed-Rate loan

An ARM to a new ARM with an initi...
› 8-30 year Fixed term in annual increments

• LTV <= 105%

› 8-30 year Fixed term in annual increments

• LTV >105% <= 12...
› 7/1 LIBOR Arms

› 5/1 LIBOR Arms

• LTV <= 105%

5/31/2013

ARM Loan Terms for Conforming Limits

10
› 10, 15, 20, & 30 year Fixed

• LTV <= 105%

› 15, 20, & 30 year Fixed

• LTV >105% <= 125%

› 15, 20, & 30 year Fixed

•...
› 7/1 LIBOR Arms

› 5/1 LIBOR Arms

• LTV <= 105%

5/31/2013

ARM Loan Terms for High Balance Limits

12
LTV/CLTV Limitations FIXED Rate

5/31/2013
13
LTV/CLTV Limitations FIXED Rate

5/31/2013
14
LTV/CLTV Limitations ARMs

5/31/2013
15
› Maximum 45% DTI

› Minimum 620 FICO Score

LTV < 80% in NM

LTV < = 90% in CA

› LTV < = 80%

5/31/2013

› Same Servicer...
› Maximum 45% DTI

› Minimum 620 FICO Score

LTV < = 90% in CA

› LTV < = 80%

5/31/2013

› Same Servicer loans where exis...
› CA LTV <= 90%

5/31/2013

› Same Servicer loans where existing taxes and Insurance are
waived, OR

• The following crite...
AUS and Qualifications
Borrower confirms the intent to maintain ownership.

5/31/2013

Property has been taken off the market at least one day pr...
• Foreign National is not permitted

5/31/2013

› If not on the original loan, provide proof of residency status.

› If on...
5/31/2013

› The borrower being removed is also removed from the deed
and retains no ownership in the property

• A borrow...
Will be evaluated by DU

7/1

5/1

5/31/2013

Qualify using the greater of the fullyindexed, fully-amortizing rate or Note...
5/31/2013

• Borrowers in an active bankruptcy are not eligible

• No more than 90 days may have elapsed from the last
pai...
› Standard age of documentation requirements apply

5/31/2013

› Documentation is not required to confirm history of recei...
› Standard age of documentation requirements apply .

› Retain Execution of 4506-T and obtain tax transcript

5/31/2013
26...
Paystub only
Paystub OR Personal tax return covering most recent year

Personal tax return covering most recent year

Docu...
5/31/2013

› An explanation letter and documentation for large deposits is no longer required. However, if
a large deposit...
Occupancy Type

5/31/2013

Occupancy of existing loan does not
need to be the same as new loan.

• Investment Properties

...
Properties located in New York or Hawaii are not permitted.

Leasehold Estates

Modular/ Pre-Cut

Condo Unit

1 unit PUD's...
› Non-Same servicer – Primary Residence only

5/31/2013

› Same Servicer – Primary, Second Homes, and Investment Propertie...
5/31/2013

Appraisal reports with a C5, C6, or Q6 must be completed with an
“as is”

Condition ratings C1 through C6 and Q...
5/31/2013

Condition ratings C1 through C4 and Quality ratings C1 through C5
are eligible.

› The value marketability and ...
› Investment properties in Texas

5/31/2013

› Owner-occupied or second home properties in West Virginia

› Owner-occupied...
› Not eligible for the waiver per DU

5/31/2013

› subsequent events such as a hurricane or other natural disaster
(or)

›...
› PIW Disclosure is required.

› Must be dated within 90 days of the Note date.

› Final DU recommendation resulted in a P...
5/31/2013

• See the Conventional Appraisal chapter of the Client
Guide for complete disaster requirements.

› If damage i...
5/31/2013

› Mortgage Insurance is not required for this DU Refi Plus loan casefile.

(OR)

› Fannie Mae's records indicat...
Genworth

MGIC

Radian

Essent Guaranty

CMG – Acceptable for Credit Unions only

›

›

›

›

›

MGIC

Radian

›

›

- Ess...
5/31/2013

*SUBJECT TO MI COMPANY GUIDELINES AND APPROVAL*
(Check with your MI Partner for requirements)

•DO/DU will indi...
› Borrower Paid MI (BPMI)

› Single Premium

› Split Premium (with or without options)

› Standard Annual

› Level Annual
...
5/312013

*If transferring MI tell us on your U/W submission cover page*

› MGIC

› Radian

• For files sent to Green Tree...
› PMI

› RMIC

› UGI

› Genworth

› Radian

› MGIC

5/31/2013

• For Correspondent Clients Underwriting their
own files:

...
› Submit to Green Tree for underwriting

• Non-Delegated Correspondent and Wholesale

› Otherwise submit to Green Tree (in...
› You may choose to “opt out” of the DU Refi Plus.

› NO! We do not allow it to be flipped to another AU.

5/31/2013

• If...
5/312013

Questions?

Green Tree’s DU REFI PLUS

46
The Client Guide
Product Matrix

›

›

www.gtcorrespondent.com

Green Tree Website

Your Sales Director or Account Executi...
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Green Tree DU Refi Plus

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Full details for Green Tree clients on how to most effectively use the product in todays market

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Transcript of "Green Tree DU Refi Plus"

  1. 1. DU Refi Plus "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."
  2. 2. ? TO ASK A QUESTION DURING THE SESSION, SELECT THE CHAT OR ICON, TYPE YOUR QUESTION AND SEND IT TO THE HOST. YOU MAY ALSO PRESS #6 ON YOUR PHONE KEY PAD TO UNMUTE YOUR LINE, AND ASK YOUR QUESTION DIRECTLY TO THE HOST. (IF YOU CAN’T HEAR US…WE’RE USING PHONE LINES, NOT MIC OR SPEAKERS) YOU’VE GOT QUESTIONS…WE’VE GOT ANSWERS. WELCOME 5/31/2013 2
  3. 3. • FAQ’s • Questions › DU 9.0 Updates • What is HARP/DU Refi Plus? • AUS and Qualifications Agenda 5/31/2013 3
  4. 4. 5/31/2013 • HARP is program to help borrowers, who are current on their mortgage but may not be eligible for a traditional refinance due to losing equity in their property because of a declining market. • Like any other refinance, borrowers replace their current mortgage with a completely new mortgage which provides them with new terms, interest rates and monthly payments. As a result, it may lower their payment, which could help improve their monthly financial situation. • Many Lenders refer to the HARP Program as DU Refi Plus. What is HARP? 4
  5. 5. 5/31/2013 › waiving the requirement for appraisals in most cases › reduced documentation › lower acceptable credit scores • It is not a typical traditional rate/term refinance. • Fannie Mae (FNMA) has less-stringent criteria: › Refer and manual underwrites are NOT permitted › Approve/Eligible or EA/Eligible only • The loan must be run through DU. Why is it referred to as DU Refi Plus? 5
  6. 6. 5/31/2013 • DU/DO will issue a new finding that states the loan is eligible but not underwritten as DU Refi Plus because the system was instructed to underwrite as a standard limited cash-out refinance. • To Opt Out of DU Refi Plus, enter “Standard LCOR” in the Product Description field of the Additional Data Screen in Desktop Underwriter or Originator. • In our 1003 Import system on the Terms of Loan Page simply click the Check box “Opting” out of DU REFI PLUS 6
  7. 7. 5/31/2013 The existing first mortgage must have closed prior to June 1,2009 to be eligible http://loanlookup.fanniemae.com/loanlookup › The loan is currently owned by FNMA The first mortgage exceeds the current market value of the home (i.e., loan-to-value) › The home value has decreased › The borrower is current on their mortgage payments • DU Refi Plus may be an option if: Who Benefits from DU Refi Plus? 7
  8. 8. Loan term is shortened, or Interest rate is reduced › › An ARM to a Fixed-Rate loan An ARM to a new ARM with an initial fixed period equal to or greater than that of the existing mortgage A 30-year Fixed Rate to a 15, 20, or 25-year Fixed Rate › › › If borrower was in a trial modification and denied a permanent modification, use the original terms of the loan for comparison › Confidential and proprietary, do not share with others outside of your organization. 5/31/2013 Use the terms of the permanent modified loan for comparison › • Modified Mortgage • DU does not make the determination that the DU Refi Plus transaction will benefit the borrower • An increase to a longer term (i.e. 15-year Fixed Rate to 30-year Fixed Rate) is permitted if there is a reduction in the borrowers P& I payment An interest-only to a fully amortizing loan (provide amortization of principal and accumulation of equity in the property) › • Generally, a more stable product would include movement from: Monthly P&I decreases, or › • Acceptable borrower benefits are met if: • The borrower must receive a benefit from the refinance transaction with either a reduced monthly P&I payment or movement to a more stable product. Borrower Benefit 8
  9. 9. › 8-30 year Fixed term in annual increments • LTV <= 105% › 8-30 year Fixed term in annual increments • LTV >105% <= 125% › 8-30 year Fixed term in annual increments • LTV >125% 5/31/2013 Fixed Loan Terms for Conforming Limits 9
  10. 10. › 7/1 LIBOR Arms › 5/1 LIBOR Arms • LTV <= 105% 5/31/2013 ARM Loan Terms for Conforming Limits 10
  11. 11. › 10, 15, 20, & 30 year Fixed • LTV <= 105% › 15, 20, & 30 year Fixed • LTV >105% <= 125% › 15, 20, & 30 year Fixed • LTV >125% Loan Terms for High Balance Limits 5/31/2013 11
  12. 12. › 7/1 LIBOR Arms › 5/1 LIBOR Arms • LTV <= 105% 5/31/2013 ARM Loan Terms for High Balance Limits 12
  13. 13. LTV/CLTV Limitations FIXED Rate 5/31/2013 13
  14. 14. LTV/CLTV Limitations FIXED Rate 5/31/2013 14
  15. 15. LTV/CLTV Limitations ARMs 5/31/2013 15
  16. 16. › Maximum 45% DTI › Minimum 620 FICO Score LTV < 80% in NM LTV < = 90% in CA › LTV < = 80% 5/31/2013 › Same Servicer loans where existing taxes and Insurance are waived, OR • The following criteria must be met: Escrow Waivers for Primary Residences 16
  17. 17. › Maximum 45% DTI › Minimum 620 FICO Score LTV < = 90% in CA › LTV < = 80% 5/31/2013 › Same Servicer loans where existing taxes and Insurance are waived, OR • The following criteria must be met: Escrow Waivers for Second Homes 17
  18. 18. › CA LTV <= 90% 5/31/2013 › Same Servicer loans where existing taxes and Insurance are waived, OR • The following criteria must be met: Escrow Waivers for Investment Properties 18
  19. 19. AUS and Qualifications
  20. 20. Borrower confirms the intent to maintain ownership. 5/31/2013 Property has been taken off the market at least one day prior to the application date. › Properties that have been listed for sale are eligible with the following restrictions: • Not permitted on properties in TX The borrower may receive cash back at closing of no more than $250. taxes, escrow shortage and late fees can now be included in the loan amount. ) Closing costs, prepaid costs and discount points. (Delinquent • DU Version 9.0 will be updated to allow for the simultaneous refinancing of a subordinate lien on DU Refi Plus case files, provided that the new loan amount does not exceed the existing unpaid principal balance of the subordinate lien. Subordinate financing must re-subordinate. › Pay off of the existing first mortgage only. • Rate and Term Refinance Transaction Type 20
  21. 21. • Foreign National is not permitted 5/31/2013 › If not on the original loan, provide proof of residency status. › If on the original loan, proof of residency status is not required. • US Citizens • Permanent & Non-Permanent Resident Aliens Eligible Borrowers 21
  22. 22. 5/31/2013 › The borrower being removed is also removed from the deed and retains no ownership in the property • A borrower may be added or removed provided an original borrower remains on the new loan. Adding or Removing a Borrower 22
  23. 23. Will be evaluated by DU 7/1 5/1 5/31/2013 Qualify using the greater of the fullyindexed, fully-amortizing rate or Note rate + 2.0%. West Virginia Maximum DTI 50% RATIOS: Qualify at Note rate. Fixed Rate Fully Amortizing Fixed Rate & LIBOR ARMS Qualifying and Ratios 23
  24. 24. 5/31/2013 • Borrowers in an active bankruptcy are not eligible • No more than 90 days may have elapsed from the last paid date of the mortgage to the date of the credit report. Current mortgage payment history must be obtained if more than 90 days old • 12 month mortgage payment history is required › DU will evaluate eligibility • No minimum fico score is required • A full credit report is required for each applicant on the loan Credit 24
  25. 25. › Standard age of documentation requirements apply 5/31/2013 › Documentation is not required to confirm history of receipt or continuity of income › Documentation is required to confirm source and receipt of income • Same Servicer Income Documentation Requirements 25
  26. 26. › Standard age of documentation requirements apply . › Retain Execution of 4506-T and obtain tax transcript 5/31/2013 26 › Documentation is not required to confirm history of receipt and continuity of income › Documentation is required to confirm source and receipt of income • Non-Same Servicer Income Documentation Requirements
  27. 27. Paystub only Paystub OR Personal tax return covering most recent year Personal tax return covering most recent year Document per Income type Divorce Decree, Separation agreement, Court Order Bonus and Overtime Commission Self-Employment Second Job Alimony and Child Support 5/31/2013 Paystub only DU Refi Plus Documentation Base Pay (salary or hourly) Income Type • Employment and income must be stated on the application and verified! Documenting Income per DU 9.0 27
  28. 28. 5/31/2013 › An explanation letter and documentation for large deposits is no longer required. However, if a large deposit was the result of a new loan as identified by the LQI Report, verification of terms and inclusion in DTI is required. • Requirement for Large Deposits › Proof of liquidation of assets (e.g., sale of stock) is not required even if those assets are being used by the borrower to pay closing costs. • Requirement for Liquidation of Assets › Retirement account: Deduct 40% of the vested amount less any outstanding loans › Stocks, bonds, mutual funds: Deduct 30% of the value less any outstanding loans • Net assets must be determined for the following: › Most recent monthly, quarterly or annual account statement • Assets for closing must be stated on the application • Verification of assets is required Documenting Assets 28
  29. 29. Occupancy Type 5/31/2013 Occupancy of existing loan does not need to be the same as new loan. • Investment Properties • Second Homes • Primary Residence 29
  30. 30. Properties located in New York or Hawaii are not permitted. Leasehold Estates Modular/ Pre-Cut Condo Unit 1 unit PUD's 1-4 Unit Eligible Property Types 5/31/2013 30
  31. 31. › Non-Same servicer – Primary Residence only 5/31/2013 › Same Servicer – Primary, Second Homes, and Investment Properties • Eligible Property Types for Florida Condos › Satisfactory verification must be provided verifying subject project is not a Condo Hotel and confirmation of hazard, flood and liability insurance coverage is required. • No project review required Condominium Projects 31
  32. 32. 5/31/2013 Appraisal reports with a C5, C6, or Q6 must be completed with an “as is” Condition ratings C1 through C6 and Quality ratings C1 through C6 are eligible. › The value marketability and condition of the subject property must meet guidelines. • An Interior and Exterior Appraisal Report (Form 1004, 1073, or 1025) is required if a PIW Finding is not available. Appraisals – Same Servicer 32
  33. 33. 5/31/2013 Condition ratings C1 through C4 and Quality ratings C1 through C5 are eligible. › The value marketability and condition of the subject property must meet guidelines. • An Interior and Exterior Appraisal Report (Form 1004, 1073, or 1025) is required if a PIW Finding is not available. Appraisals – NON - Same Servicer 33
  34. 34. › Investment properties in Texas 5/31/2013 › Owner-occupied or second home properties in West Virginia › Owner-occupied properties in Kansas with an LTV exceeding 100% • Property Fieldwork Waivers will not be permitted in the following scenarios and will require FULL Interior/Exterior Appraisals: Appraisals 34
  35. 35. › Not eligible for the waiver per DU 5/31/2013 › subsequent events such as a hurricane or other natural disaster (or) › the lender has reason to believe that an appraisal is warranted based on additional information obtained about the property (or) • Lenders may NOT exercise the property fieldwork waiver if: Property Fieldwork Waiver 35
  36. 36. › PIW Disclosure is required. › Must be dated within 90 days of the Note date. › Final DU recommendation resulted in a Property Fieldwork Waiver offer. › Accurate property address. 5/31/2013 • Additional requirements of a Property Fieldwork Waiver: › The borrowers estimate of value or any other value obtained for the property may not be used. • If Property Fieldwork Waiver is exercised, the loan must be resubmitted to DU using the estimated value provided by DU. Property Fieldwork Waiver 36
  37. 37. 5/31/2013 • See the Conventional Appraisal chapter of the Client Guide for complete disaster requirements. › If damage is noted an interior and exterior inspection is required and repairs indicated by the appraiser must be completed prior to closing › A re-inspection is required after a Major Disaster Declaration • Non-Same Servicer › A re-inspection is not required • Same Servicer FEMA Major Disaster Declaration Policy 37
  38. 38. 5/31/2013 › Mortgage Insurance is not required for this DU Refi Plus loan casefile. (OR) › Fannie Mae's records indicate that the existing Fannie Mae loan does not currently have mortgage insurance coverage in effect. Mortgage insurance is not required for this DU Refi Plus loan casefile. • DU will issue the following message or messages: › If the LTV was > 80% original transaction and mortgage insurance was previously cancelled or terminated in accordance with FNMA. › the LTV was < 80% on the original transaction • Mortgage Insurance is not required if, even if the LTV is > 80% if: Mortgage Insurance 38
  39. 39. Genworth MGIC Radian Essent Guaranty CMG – Acceptable for Credit Unions only › › › › › MGIC Radian › › - Essent Guaranty 5/31/2013 • Green Tree will obtain mortgage insurance for those Clients who submit loans to us for underwriting United Guaranty › • Delegated Correspondent Clients underwriting and obtaining mortgage insurance • Lender Paid MI is not eligible › the LTV on the original loan and the new LTV is > 80% and the MI on the existing loan was never cancelled or terminated. • Mortgage Insurance is required if: DU Mortgage Insurance Message 39
  40. 40. 5/31/2013 *SUBJECT TO MI COMPANY GUIDELINES AND APPROVAL* (Check with your MI Partner for requirements) •DO/DU will indicate the level of MI coverage required. New Mortgage Insurance Requirements 40
  41. 41. › Borrower Paid MI (BPMI) › Single Premium › Split Premium (with or without options) › Standard Annual › Level Annual › Monthly and Zero Monthly • Green Tree allows MI "transfers" : Transfer of Mortgage Insurance 5/31/2013 41
  42. 42. 5/312013 *If transferring MI tell us on your U/W submission cover page* › MGIC › Radian • For files sent to Green Tree for Underwriting: Transfer of Mortgage Insurance 42
  43. 43. › PMI › RMIC › UGI › Genworth › Radian › MGIC 5/31/2013 • For Correspondent Clients Underwriting their own files: Transfer of Mortgage Insurance 43
  44. 44. › Submit to Green Tree for underwriting • Non-Delegated Correspondent and Wholesale › Otherwise submit to Green Tree (includes EA recommendations) High Balance are not eligible › Loan Amounts up to $650,000 › Requires Approve/Eligible recommendation • Conditional Delegated › Eligible to underwrite or send to Green Tree on loans <= $1,000,000 • Delegated Underwriting Authority 5/31/2013 44
  45. 45. › You may choose to “opt out” of the DU Refi Plus. › NO! We do not allow it to be flipped to another AU. 5/31/2013 • If I initially ran my loan through DU and received DU Refi Plus Findings, can I run my loan through LP instead if I need a Limited Cash Out Refi? › NO! Any amount exceeding $250 would need to be applied as a principal curtailment and be reflected on the HUD-1 Settlement Statement. • Is the borrower permitted to get reimbursed for items paid outside of closing, in addition to the $250 cash back? › Only if a more stable product (i.e. ARM to Fixed, IO to fully amortizing, shorter term, etc) is utilized. There must be a net tangible benefit. • Are increases to the borrowers payment permitted? FAQ’s 45
  46. 46. 5/312013 Questions? Green Tree’s DU REFI PLUS 46
  47. 47. The Client Guide Product Matrix › › www.gtcorrespondent.com Green Tree Website Your Sales Director or Account Executive Correspondent_Lending@gtoriginations.com 877-700-4622, Option 9 Client Services • Contact: › › › • Refer to: Further Information 5/31/2013 47

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