Ditech Mortgage Corp is updating its underwriting guidelines for jumbo loans effective March 14, 2014. The enhancements include allowing 80% LTV/CLTV for ARM and shorter term fixed rate loans compared to the previous 75% limit. Payment shock requirements are also being eliminated for borrowers who have owned a home in the past 3 years. Additional property eligibility and refinance transaction guidelines are outlined. Questions should be directed to client services.

1. 2014-011
Underwriting Guideline Updates
Overview
Ditech Mortgage Corp "ditech" Approved Clients, please note that we are enhancing
our Jumbo product resulting in less restrictive guidelines.
Effective Date
Effective for all loans registered on or after March 14, 2014.
Product Enhancements
New Policy Current Policy
Jumbo 5/1 ARM (Z73) with 2/2/5 cap
structure available.
Jumbo 5/1 ARM not available.
Maximum 80% LTV/CLTV for ARM
and 10 & 15 year Fixed Rate
products.
Maximum 75% LTV/CLTV for ARM
and 10 & 15 year products.
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2. Client Guide Enhancements
Eliminated payment shock
requirements for borrowers who
have previously owned a home in
the past 3 years.
250% payment shock for non-first
time homebuyers with a job history
of less than 5 years.
LTV Reduction of 10% borrowers
with more than two (2) financed
properties is being eliminated.
Reserve requirements still apply.
LTV Reduction of is required for
borrowers who own more than two
(2) financed properties.
Properties with 10 but no more than
20 acres may be eligible if the
acreage:
Is typical to the area (evidenced
by similar comparable sales), and
Has a land-to-value ratio of no
more than 35%, and
Is not income producing.
Maximum 10 acres.
Condominium project with fewer
than 10 units are eligible and must
be typical to the area (evidenced by
similar comparable sales).
Condominium projects with fewer
than 10 units are not eligible.
New Policy Current Policy Reference
Rate and Term Refinance Transaction
A HELOC on the subject
property seasoned at least
12-months may be included
in the loan amount. Draws
of not more than $2000 in
the past 12 months are
permitted.
A HELOC on the
subject property
seasoned at least 12-
months may be
included in the loan
amount. Draws not
permitted.
Chapter 6B
Transactions,
B600 Transaction
Types, A(2)(a)
Rate & Term
Refinance
Mortgage and the
Jumbo Product
Matrix
Conversion of a Primary Residence
When the borrower is
converting their primary
residence to a second
home or investment
When the borrower is
converting their
primary residence to
a second home or
Chapter 6B
Transactions,
B600 A(10)
Pending Sale of
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3. Questions
If you have any questions regarding any information in this announcement, please
feel free to contact your sales director or client services.
Client Services – 877-700-4622
property, the retained
property must have 30%
equity only when rental
income is being used to
qualify.
investment property,
the retained property
must have 30%
equity.
Current
Residence.
Tradeline Requirements
If the borrower cannot meet
the minimum tradeline
requirements but has at
least one (1) open tradeline
with 12 months or more
reporting, the credit may be
acceptable if all of the
following are met:
A minimum of seven (7)
years established credit
history, and
At least eight (8) or more
tradelines reported, and
At least one (1)
mortgage tradeline
OR
6 months reserves in
addition to reserves
required by the product
and one of the following:
DTI <35%, or
LTV <65%, or
Credit score
>740
If the borrower
cannot meet the
minimum tradeline
requirements but has
at least one (1) open
tradeline with 12
months or more
reporting, the credit
may be acceptable if
all of the following
are met:
A minimum of
seven (7) years
established credit
history, and
At least eight (8)
or more tradelines
reported, and
At least one (1)
mortgage
tradeline
Chapter 6F
Transactions,
F604 (D)(3)
Tradeline
Requirements.
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4. Registration Desk – 866-396-4622
NT Desk – 866-495-4622
Our web site address is:
correspondent.ditech.com
Visit our training site at:
correspondent-ditech.webex.com
Release Date 03/14/14
© 2014 Ditech Mortgage Corp All rights reserved. Ditech is a registered service mark. Information subject to change
without notice. These guidelines may be amended or terminated at any time. Terms and conditions apply.
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