1. Retail Card 1-23-06 © 2006 Irwin Mortgage Corporation
PRODUCT
CARD
See intranet Product Guide for details
A Stated Income product that allows fast and easy approvals for borrowers with superior credit
LOAN TYPES
• Fixed-rate loans with terms of 10, 15, 20, 25 and 30 years
• ARMs — 3/1, 5/1 and 7/1
• Available in SIVA and SISA versions
– SIVA version (Stated Income, Verified Assets) provides a pricing
enhancement when paired with the SIVA version of the
AddVantage HEL closed-end second
– SISA version (Stated Income, Stated Assets) may be paired with
the SISA version of the AddVantage HEL closed-end second
ARM DETAILS
ARM Index Margin Initial Cap Annual Cap Lifetime Cap
3/1 CMT 2.875 2% 2% 6%
5/1 CMT 2.875 2% 2% 5%
7/1 CMT 2.875 5% 2% 5%
MAXIMUM LTV/CLTV
Purchase Ltd. Cash-Out Refi Cash-Out Refi
Primary residence 95% 95% 70%
Second home 90% 90% N/A
Investment property 75% 75% N/A
MINIMUM FICO
LTV/CLTV Minimum FICO Scores
≤ 90% 680 — purchase & ltd. cash-out refiPrimary residence
> 90% - 95% 720 — purchase & ltd. cash-out refi
Cash-out refi ≤ 70% 720 — primary residence only
Second home ≤ 90% 700 — purchase & ltd. cash-out refi
Investment property ≤ 75% 700 — purchase & ltd. cash-out refi
MORTGAGE INSURANCE
These companies will insure Easy Stated
SM
at the normal “A” rate:
• GE: order as “Alt-A” and mark as Custom DU A/E
• Radian: order as “A” rate
Lender-paid mortgage insurance (LPMI) option
• Available only on the fixed-rate version
• Enhanced pricing for higher FICO borrowers
• Borrower must sign an LPMI initial disclosure
No MI option
• Available only on the fixed-rate version
• Requires FICO scores ≥ 700
ELIGIBLE PROPERTIES
• 1-unit primary residences, secondary homes and investment properties
• Condos — Fannie Mae warrantable
• PUDs — Type E or F
UNDERWRITING
• Custom DU Approve/Eligible recommendation only
• Follow the more restrictive of the 1
st
- or 2
nd
-lien program guidelines
• Ratios — 50% maximum DTI regardless of Custom DU
recommendation
• Qualify at — note rate
• Co-borrowers — must occupy the property
• Seller contributions – permitted up to standard agency guidelines
• Temporary buydowns — not permitted
• Gifts — not permitted
DOCUMENTATION REQUIREMENTS
Credit
• Obtain a current mortgage or rental rating for the borrower’s primary
housing payment
– If this rating isn’t on the credit report, obtain a Verification of
Mortgage (VOM) or a Verification of Rent (VOR)
– Borrowers without a current housing payment are ineligible for the
Easy Stated program
• The borrower’s credit history must not include any late mortgage or
rent payments in the most recent 12 months
Assets
• SISA version — no documentation required
• SIVA version:
– Document all liquid assets submitted to Custom DU regardless of
whether this documentation is required on the Custom DU
Findings Report
– Verify and document each liquid asset entered with a verification
of deposit or a bank statement covering a one-month period
– Provide an explanation and documentation for large deposits
– Borrowers must execute the VOD at application for QC purposes
Income
• Stated, not verified
• Sources of non-employment income must have a stated 2-year
history of receipt
• Form 4506-T is required at application and at closing
Employment
• Salaried borrower
– Employment must be verified via a phone call to the employer or
confirmation letter from 3
rd
party
– Must have a 2-year job history in the same business
• Self-employed borrower
– Borrower’s business must have existed for at least 2 years in the
same field and location, unless the physical location of the
business has no material impact on its financial performance
– Verification of the borrower’s business (including location changes
noted above) must be documented through an acceptable
third-party source — letter from a CPA, regulatory website,
directory assistance, etc.