29
PBM JUMBO PRODUCTS COMPARISON CHART This is only a Quick Reference Jumbo Comparison Chart. Refer All Product Specific Guidelines for complete guidelines and updates Page 1 08/04/2014 This is only a Quick Reference Jumbo Comparison Chart. Refer All Product Specific Guidelines for complete guidelines and updates PBM PRODUCT NAME EXPANDED JUMBO ULTIMATE JUMBO PORTFOLIO JUMBO DELUXE JUMBO PRODUCT CODES JF15R JF30R JA51R JA101R JF15P JF30P PA51AJ JF30D PRODUCTS OFFERED 15 YEAR FIXED, 30 YEAR FIXED, 5/1 ARM AND 10/1 ARM 15 year fixed and 30 year fixed rate. Temporary buy downs not allowed. No interest only. 5/1 Libor Arm 30 Year fixed EXCEPTION CASE BY CASE NO EXCEPTIONS ALLOWED PER THE INVESTOR CASE BY CASE Approved Only By Corporate Admin NO EXCEPTIONS MINIMUM LOAN AMOUNT $417,001 OR $1.00 Over conforming limit for 1-2 units. Loan amounts >$2,000,000 available for 30 year fixed rate product only. First time Home Buyers (have not owned a property for 3 years or more) are limited to a maximum loan of $1,000,000. $417,001 for all counties. $417,001 $417001 UNDERWRITING Manual underwrite ONLY. *Prior Investor Approval for Appraisal ONLY. Appraisal is recommended to be sent to Corporate in advance. All loans must be manually underwritten and fully documented. Unless otherwise addressed below, FNMA underwriting guidelines should be followed. In some cases, Manual underwrite ONLY, AUS is not utilized. Corporate Underwriter Prior Approval. NO EXCEPTIONS ALLOWED PER THE INVESTOR. Manual underwrite ONLY. Corporate Underwriter prior approval : 2 nd Signature required on loan amounts exceeding $750,000. Appraisal review by investor required. LOAN Manual underwrite ONLY. 2 nd Signature by corporate underwriter required on all loans Appraisal review by investor required. LOAN MUST BE LOCKED PRIOR TO REVIEW.

PBM JUMBO PRODUCTS COMPARISON CHART Jumbo Products... · PBM JUMBO PRODUCTS COMPARISON CHART This is only a Quick Reference Jumbo Comparison Chart. Refer All Product Specific Guidelines

  • Upload
    lytu

  • View
    229

  • Download
    1

Embed Size (px)

Citation preview

PBM JUMBO PRODUCTS COMPARISON CHART

This is only a Quick Reference Jumbo Comparison Chart. Refer All Product Specific Guidelines for complete guidelines and updates Page 1

08/04/2014

This is only a Quick Reference Jumbo Comparison Chart. Refer All Product Specific Guidelines for complete guidelines and updates

PBM PRODUCT NAME

EXPANDED JUMBO ULTIMATE JUMBO PORTFOLIO JUMBO DELUXE JUMBO

PRODUCT CODES JF15R JF30R JA51R JA101R JF15P JF30P PA51AJ JF30D

PRODUCTS OFFERED

15 YEAR FIXED, 30 YEAR FIXED, 5/1 ARM AND 10/1 ARM

15 year fixed and 30 year fixed rate. Temporary buy downs not allowed. No interest only.

5/1 Libor Arm 30 Year fixed

EXCEPTION CASE BY CASE NO EXCEPTIONS ALLOWED PER THE INVESTOR

CASE BY CASE Approved Only By Corporate Admin

NO EXCEPTIONS

MINIMUM LOAN AMOUNT

$417,001 OR $1.00 Over conforming limit for 1-2 units. Loan amounts >$2,000,000 available for 30 year fixed rate product only. First time Home Buyers (have not owned a property for 3 years or more) are limited to a maximum loan of $1,000,000.

$417,001 for all counties. $417,001 $417001

UNDERWRITING Manual underwrite ONLY. *Prior Investor Approval for Appraisal ONLY. Appraisal is recommended to be sent to Corporate in advance. All loans must be manually underwritten and fully documented. Unless otherwise addressed below, FNMA underwriting guidelines should be followed. In some cases,

Manual underwrite ONLY, AUS is not utilized. Corporate Underwriter Prior Approval. NO EXCEPTIONS ALLOWED PER THE INVESTOR.

Manual underwrite ONLY. Corporate Underwriter prior approval : 2nd Signature required on loan amounts exceeding $750,000. Appraisal review by investor required. LOAN

Manual underwrite ONLY. 2nd Signature by corporate underwriter required on all loans Appraisal review by investor required. LOAN MUST BE LOCKED PRIOR TO REVIEW.

PBM JUMBO PRODUCTS COMPARISON CHART

This is only a Quick Reference Jumbo Comparison Chart. Refer All Product Specific Guidelines for complete guidelines and updates Page 2

08/04/2014

This is only a Quick Reference Jumbo Comparison Chart. Refer All Product Specific Guidelines for complete guidelines and updates

PBM PRODUCT NAME

EXPANDED JUMBO ULTIMATE JUMBO PORTFOLIO JUMBO DELUXE JUMBO

PRODUCT CODES JF15R JF30R JA51R JA101R JF15P JF30P PA51AJ JF30D exceptions to underwriting guidelines or product eligibility may be acceptable when strong compensating factors exist to directly address the issue and offset the risk. A copy of the loan file must be sent to corporate for 2nd signature.

INELIGIBLE BORROWERS

Non Occupant Co-Borrowers, Foreign Nationals, Borrowers without a credit score and Borrowers with more than 4 financed properties (any kind) including the subject property.(see NOTE under Multiple Financed Properties) Irrevocable Trusts, Land Trusts.

Refer to FNMA guidelines. Non-Permanent Resident Aliens, Irrevocable Trusts, Land Trusts, Limited partnerships, general partners, corporations, and limited liability companies, Borrowers with only an ITIN.

Foreign Nationals, Non-Permanent Resident Alien with a visa granting diplomatic immunity is not allowed. Borrower’s without a credit score, loans with co-signors that will not be on title, borrowers that are not natural persons, life estates, non-revocable trust, borrowers with more than 4 financed properties and Non Arm’s length transactions.

RESIDENCY Permanent Resident Aliens/Non-Permanent Resident Aliens must meet the following requirements: Provide acceptable documentation

Refer to FNMA guidelines. Permanent resident Aliens. Permanent resident aliens, Non- permanent resident aliens with lawful residency. Borrowers with acceptable un expired visa Series t H-1, H-1B, L-1, E-1,

PBM JUMBO PRODUCTS COMPARISON CHART

This is only a Quick Reference Jumbo Comparison Chart. Refer All Product Specific Guidelines for complete guidelines and updates Page 3

08/04/2014

This is only a Quick Reference Jumbo Comparison Chart. Refer All Product Specific Guidelines for complete guidelines and updates

PBM PRODUCT NAME

EXPANDED JUMBO ULTIMATE JUMBO PORTFOLIO JUMBO DELUXE JUMBO

PRODUCT CODES JF15R JF30R JA51R JA101R JF15P JF30P PA51AJ JF30D to verify that a non-U.S. citizen borrower is legally present in the U.S., Be employed in the United States for the past 12 months, Demonstrate that income and employment is likely to continue for at least three (3) years.

G-1 through G-5, A-1 through A-3.

OCCUPANCY TYPES

Primary Residence for 1-2 units and Second Homes Residences for 1 unit properties.

Primary residence 1-2 units. Second Homes (1 unit only)

Primary residences for 1-2 unit properties.

Primary residences for 1-2 unit properties, Second home for 1 unit properties.

INVESTMENT PROPERTIES

Not allowed Not allowed Not allowed Not allowed

SECOND HOMES Second Home residences for 1 unit properties must be located a reasonable distance away from the borrower’s principal residence, suitable for year-round use. Cannot be subject to any agreements that give a management firm control over the occupancy of the property.

Second home residence for 1 unit properties. Refer to FNMA guidelines for additional information.

Not allowed Only one (1) unit properties are allowed for second homes. The borrower may not own any other second homes or investment properties in the same geographic market as the subject. If the subject property is tenant occupied, the property must be vacant at close. The subject property cannot be controlled by a management firm (condo tel)

CONDOMINIUMS Low and High rise Condo Condominiums must meet Warrantable Low/Mid/High Rise

PBM JUMBO PRODUCTS COMPARISON CHART

This is only a Quick Reference Jumbo Comparison Chart. Refer All Product Specific Guidelines for complete guidelines and updates Page 4

08/04/2014

This is only a Quick Reference Jumbo Comparison Chart. Refer All Product Specific Guidelines for complete guidelines and updates

PBM PRODUCT NAME

EXPANDED JUMBO ULTIMATE JUMBO PORTFOLIO JUMBO DELUXE JUMBO

PRODUCT CODES JF15R JF30R JA51R JA101R JF15P JF30P PA51AJ JF30D (project must be FNMA approved and met all FNMA eligibility requirements). NOTE: Limited Review is NOT eligible. See guidelines for more specific project types. For hybrid ARMs, maximum LTV/CLTV/HCLTV is reduced by 5% for Condos.

FNMA warrant ability guidelines.

Low/Mid/High-Rise Condos (types S,T, or U), New condominium projects (Type R) with “CPM” approval. Detached site condos.

Condominiums which are FNMA approved and met all FNMA eligibility requirements Warrantable Types S, T or U. New condominium projects (Type R) with Condo Project Manager (CPM) approval, Site (detached) Condos.

ELIGIBLE PROPERTIES

Single Family attached and detached dwellings. Two unit primary Residence properties (purchase and rate/term refinance only), Townhomes, Condos (see guidelines for additional requirements), PUDs, Modular Homes and 1 unit Second Homes. Properties with <= 20 acres. For Properties > 10-20 Acres: 30 year fixed rate only. See additional guidelines.

Single Family single unit, Single Family Attached single unit, 2 Unit Detached (Must be owner occupied. Condominiums must meet FNMA warrant ability guidelines.

Single family, 1-2 units,PUDs, Properties with <=10 acres (maximum 35% land to value, No income producing attributes. See Condo’s above.

Single Family, 2 unit primary properties(purchase and rate/term refinance only), Townhomes, Leaseholds, Puds and Condos. (see above for Condo types)

PBM JUMBO PRODUCTS COMPARISON CHART

This is only a Quick Reference Jumbo Comparison Chart. Refer All Product Specific Guidelines for complete guidelines and updates Page 5

08/04/2014

This is only a Quick Reference Jumbo Comparison Chart. Refer All Product Specific Guidelines for complete guidelines and updates

PBM PRODUCT NAME

EXPANDED JUMBO ULTIMATE JUMBO PORTFOLIO JUMBO DELUXE JUMBO

PRODUCT CODES JF15R JF30R JA51R JA101R JF15P JF30P PA51AJ JF30D

INELIGIBILE PROPERTIES

Investment properties, 3-4 unit Owner Occupied Properties, 2-4 Unit Second Home Properties, Condotels, Manufactured homes. Unique properties. Cooperatives. Multifamily properties, three or more units. Commercial and mixed use properties. Working farm, Ranches or Orchards, Properties subject to oil or gas leases. Properties >20 Acres.

Manufactured homes, 3-4 unit properties, Unwarrantable Condos, Mobile Homes, Cooperatives, Contotels, Hotel Condos, Log homes, Geodesic Domes, Working Farms and Ranches, Unimproved Land and property currently in litigation, Commercial properties, Properties with encroachments, Zoning violations including residential properties zoned commercial, Properties with less than 750 square feet, Mixed Use properties, Properties with more than 15 acres, and properties held in a business name.

3-4 unit Owner Occupied Properties, Second Homes, Unwarrantable or Limited Review Condos, Manufactured/Mobile homes, Modular Homes, Condo-hotel units, Unique properties, Log homes, Working farms, ranches or orchards, Mixed use Properties, Properties subject to oil or gas leases, Properties with >10 acres. Note: it is not acceptable to have property appraised with only 10 acres in order to meet eligibility.

Investment properties, Condos which have been solely subject to FNMA limited review process for Condos, Manufactured homes, log, earth or dome homes, Time share project/units, Income producing farms, properties with less than 750 square feet of living area, lot size >10 acres or not typical for the area and unsupported by comparables, Properties for which the appraisal indicates condition ratings of C5 or C6 or a quality rating of Q6, each as determined under the Uniform Appraisal Dataset (UAD) guidelines, all properties not located in the state of California.

PBM JUMBO PRODUCTS COMPARISON CHART

This is only a Quick Reference Jumbo Comparison Chart. Refer All Product Specific Guidelines for complete guidelines and updates Page 6

08/04/2014

This is only a Quick Reference Jumbo Comparison Chart. Refer All Product Specific Guidelines for complete guidelines and updates

PBM PRODUCT NAME

EXPANDED JUMBO ULTIMATE JUMBO PORTFOLIO JUMBO DELUXE JUMBO

PRODUCT CODES JF15R JF30R JA51R JA101R JF15P JF30P PA51AJ JF30D

MULTIPLE PROPERTIES

FINANCED/OWNED

The Borrower(s) may own a total of four (4) financed properties including the subject property. All financed properties, other than the subject property, requires an additional six (6) months PITI reserves for each property. NOTE: 1-4 unit properties held in the name of an LLC or other corporation can be excluded from the calculation of number of properties financed only in the cases where the borrower is not personally obligated for the mortgage.

Owner occupied: Borrowers can have up to eight (8) financed properties. Second home: Borrowers can have up to four financed properties. Investor limits the borrower to four (4) financed properties. Borrowers with greater than 2 financed properties require 18 months PITI Reserves.

The borrower(s) may own a total of four (4) financed, 1-4 unit residential properties, including the subject property regardless of occupancy. All financed properties other than the subject property, require an additional six (6) months reserves for each property. Note: 1-4 unit financed properties held in the name of an LLC or other corporation can be excluded from the calculation of number of properties financed only in cases where the borrower is not personally obligated for the mortgage.

The Borrower (s) may own a total of four (4) financed properties.

LEASEHOLD ESTATES

Acceptable in areas where leasehold estates are commonly accepted. Refer to FNMA guidelines for

Leaseholds acceptable provided the lease period extends to 5 years past the note maturity date.

In areas where leasehold estates are commonly accepted, loans secured by leasehold estates are

Leaseholds acceptable. Leasehold estates must meet all FNMA eligibility requirements (i.e. term or

PBM JUMBO PRODUCTS COMPARISON CHART

This is only a Quick Reference Jumbo Comparison Chart. Refer All Product Specific Guidelines for complete guidelines and updates Page 7

08/04/2014

This is only a Quick Reference Jumbo Comparison Chart. Refer All Product Specific Guidelines for complete guidelines and updates

PBM PRODUCT NAME

EXPANDED JUMBO ULTIMATE JUMBO PORTFOLIO JUMBO DELUXE JUMBO

PRODUCT CODES JF15R JF30R JA51R JA101R JF15P JF30P PA51AJ JF30D further clarification. eligible for purchase. lease); Term of lease must

run for at least 5 years beyond the maturity date of the Mortgage.

ELIGIBLE TRANSACTION

TYPES

Purchase, Rate/Term Refinances, and Cash out Refinances are eligible. Construction to permanent/Take Out.

Purchase, Rate/Term Refinances, and Cash out Refinances are eligible. Construction to permanent/Take Out.

Purchases, Rate and term refinance, Cash out refinance, Construction to permanent/take out, Delayed purchase refinance.

Purchase, Rate and term refinance, Cash out refinance, delayed purchase refinance.

REVOCABLE TRUST

Allowed. Refer to Product guidelines for detailed information on Inter Vivos Revocable Trusts.

Allowed. Refer to Product guidelines for detailed information on Inter Vivos Revocable Trusts.

Refer to FNMA guidelines. Inter-Vivos Revocable Trusts allowed. Refer to guidelines for requirements

RATE AND TERM REFINANCE

Cash back to the borrower is limited to 1%. Properties listed for sale in the past 6 months of loan application are not eligible for a rate/term refinance transaction. Inherited properties may not be refinanced prior to 12 months ownership. Subordinate liens must be Seasoned for one (1) year. For a junior lien that is an equity line of credit, the seasoning requirement shall be applied to the date of the most recent draw

Cash back to the borrower is the lesser of 1% of the loan amount or $10,000. Proceeds can be used to pay off the first trust regardless of age. Proceeds to pay off a seasoned for 12 months junior lien that has not draws greater than $2000. Pay off of an unseasoned junior lien is not eligible for a rate and term refinance.

Cash back to the borrower is limited to 1%. Properties listed within the last 6 months from the application are not eligible. Any Junior liens must have been in place for 12 month unless obtained at the time of purchase. A seasoned equity line is defined as not having any draws greater than $2,000 in the past 12 months. Inherited properties may not be refinanced prior to 12 months of ownership.

Cash back to the borrower may not exceed 1% of the principal amount of the new mortgage. If a subordinate lien (including equity lines) it must be seasoned for 1 year otherwise the transaction is considered cash out. Seasoning requirement for a junior lien that is an equity line of credit will be applied to the date of the most recent draw less than $2000 in the last 12 months. A third refinance in less than 12 months is

PBM JUMBO PRODUCTS COMPARISON CHART

This is only a Quick Reference Jumbo Comparison Chart. Refer All Product Specific Guidelines for complete guidelines and updates Page 8

08/04/2014

This is only a Quick Reference Jumbo Comparison Chart. Refer All Product Specific Guidelines for complete guidelines and updates

PBM PRODUCT NAME

EXPANDED JUMBO ULTIMATE JUMBO PORTFOLIO JUMBO DELUXE JUMBO

PRODUCT CODES JF15R JF30R JA51R JA101R JF15P JF30P PA51AJ JF30D against the equity line unless the draws were less than $2000. If Junior Lien is to be paid off it must be seasoned for at least one (1) year or have been incurred during the original purchase; otherwise, the transaction is considered “Cash Out”.

NOT eligible. A loan secured by a subject property that has been listed for sale within six months of the loan application date is not eligible. Construction to Perm allowed LTV is based on the current appraised value at the time the permanent loan is closed. See guidelines for other restrictions.

LTV RATIO CALCULATIONS

RATE AND TERM REFINANCE

Property that was purchased within 12 months of the application; Property Value is equal to the lower of sales price or appraised value minus sales concessions. Refer to matrix for LTV restrictions. For Homes where capital improvements have been made to the property after purchase, LTV/CLTV/HCLTV can be based on the lesser of the current appraised value OR original purchase price plus the documented improvements.

Properties owned less than 12 must use the lesser of the original purchase price or new appraised value.

If the borrower has less than 12 months ownership in the property, the LTV/CLTV for a refinance transaction is calculated on the lesser of the purchase price or appraised value. For homes where capital improvements have been made to the property after purchase, LTV/CLTV can be based on the lesser of the appraised value or original purchase price or the original purchase price plus the documented improvements.

If the property was purchased within 12 months of the application date, the property is equal to the lower of the sales price or appraised value less sales concessions.

PBM JUMBO PRODUCTS COMPARISON CHART

This is only a Quick Reference Jumbo Comparison Chart. Refer All Product Specific Guidelines for complete guidelines and updates Page 9

08/04/2014

This is only a Quick Reference Jumbo Comparison Chart. Refer All Product Specific Guidelines for complete guidelines and updates

PBM PRODUCT NAME

EXPANDED JUMBO ULTIMATE JUMBO PORTFOLIO JUMBO DELUXE JUMBO

PRODUCT CODES JF15R JF30R JA51R JA101R JF15P JF30P PA51AJ JF30D

CASH OUT REFINANCE

Borrower must have owned property for at least six months prior to the application date unless requirements for Delayed Purchase Refinance are met. Properties that have been listed for sale within 12 months of application are NOT eligible for a cash-out refinance transaction. Inherited properties may not be refinanced prior to 12 months ownership. Cash out on primary

Borrower must have owned the property a minimum of 6 months and 6 months seasoning on existing loan. Cash-out cannot be used to pay down debt for qualifying. POA not allowed in conjunction with cash out. Maximum Cash out:

• 65-60% LTV $300,000

• 55% LTV and below $500,000

The borrower must have owned the property a minimum of 6 months. Properties listed for sale within the past 12 months of loan application are NOT eligible. Inherited properties may not be refinanced prior to 12 months ownership. (case by case exceptions will be made). See guidelines for cash out transactions where the borrower is paying off a

Borrower must have owned the property at least 6 months. Seasoning of at least 6 months since prior financing or date of purchase is required. Cash out allowed on Construction to permanent refinances if the lot was acquired twelve or more months before applying for the construction financing and the LTV is based on the lesser of the current appraised value of the

PBM JUMBO PRODUCTS COMPARISON CHART

This is only a Quick Reference Jumbo Comparison Chart. Refer All Product Specific Guidelines for complete guidelines and updates Page 10

08/04/2014

This is only a Quick Reference Jumbo Comparison Chart. Refer All Product Specific Guidelines for complete guidelines and updates

PBM PRODUCT NAME

EXPANDED JUMBO ULTIMATE JUMBO PORTFOLIO JUMBO DELUXE JUMBO

PRODUCT CODES JF15R JF30R JA51R JA101R JF15P JF30P PA51AJ JF30D

residence 1 unit only. Maximum Cash out:

• 60-65% LTV/CLTV $250,000

• 55% LTV/CLTV $500,000

• 45% LTV/CLTV $750,000

retirement/pledged asset account loan. Maximum cash out is $250,000.

property and the total acquisition costs. Maximum cash:

• $250,000 for loans up to $1,500,000

• $500,000 for loans up to $2,000,000

• $750,000 for loans up to $2,500,000

LTV RATIO CALULATIONS

CASH OUT REFINANCE

6-12 Months Ownership-LTV is based on the lesser of the Sales Price or Appraised Value. No cash out allowed if owned <6 months.

Properties owned less than 12 months must use the lesser of the original purchase price or new appraised value.

If the borrower has less than 12 months ownership in the property, the LTV/CLTV for a refinance transaction is calculated on the lesser of the purchase price or appraised value. For homes where capital improvements have been made to the property after purchase, LTV/CLTV can be based on the lesser of the appraised value or original purchase price or the original purchase price plus the documented improvements.

6-12 months ownership: LTV is based on the lesser of the acquisition costs or current appraised value. A third refiance in 12 months is Not Eligible.

PBM JUMBO PRODUCTS COMPARISON CHART

This is only a Quick Reference Jumbo Comparison Chart. Refer All Product Specific Guidelines for complete guidelines and updates Page 11

08/04/2014

This is only a Quick Reference Jumbo Comparison Chart. Refer All Product Specific Guidelines for complete guidelines and updates

PBM PRODUCT NAME

EXPANDED JUMBO ULTIMATE JUMBO PORTFOLIO JUMBO DELUXE JUMBO

PRODUCT CODES JF15R JF30R JA51R JA101R JF15P JF30P PA51AJ JF30D

QUALIFYING RATE 5/1 HYBRID ARM

Qualify at the higher of the fully indexed rate or the Note Rate plus 2%.

N/A Greater of the fully indexed rate or the Note Rate + 2.0%.

N/A

QUALIFYING RATE 7/1 , 10/1(if applicable)

HYBRID ARMs

Qualify at the higher of the Note Rate or fully indexed rate

N/A N/A N/A

MAXIMUM DTI ARMS

40% 5/1 AND 10/1 ARM’s NO EXCEPTIONS FOR DTI ALLOWED FOR DTI ON ARM PRODUCTS.

43% 40% N/A

CONTINUITY OF OBLIGATION

Refer to FNMA underwriting guidelines.

Refinances must meet the more restrictive of these guidelines or FNMA continuity of obligation guidelines.

Refer to FNMA underwriting guidelines

Must be present from the existing lien to the new lien. Transfer of ownership from a corporation to an individual does not meet the definition of acceptable continuity of obligation. Acceptable If borrower recently inherited or was legally awarded the property. See guidelines for additional restrictions.

PBM JUMBO PRODUCTS COMPARISON CHART

This is only a Quick Reference Jumbo Comparison Chart. Refer All Product Specific Guidelines for complete guidelines and updates Page 12

08/04/2014

This is only a Quick Reference Jumbo Comparison Chart. Refer All Product Specific Guidelines for complete guidelines and updates

PBM PRODUCT NAME

EXPANDED JUMBO ULTIMATE JUMBO PORTFOLIO JUMBO DELUXE JUMBO

PRODUCT CODES JF15R JF30R JA51R JA101R JF15P JF30P PA51AJ JF30D

SECONDARY OR SUBORDINATE

FINANCING

Must be from an Institutional lender up to the maximum LTV/CLTV per matrix. Must be recorded. Must have regular monthly payments of at least interest only with terms that require interest at a market rate. • Seller subordinate

financing not allowed.

Must be from an institutional lender or employer sponsored financing. Mortgages with regular payments that cover at least the interest monthly. Seller-carried second financing in NOT allowed. Subordination of existing subordinate financing is allowed. Current payment amount for existing HELOC’s ma be used.

Institutional financing ONLY up to the maximum LTV/CLTV. Must have regular payments that cover at least the interest due. Mortgage terms required to be at market rate. Seller subordinate financing not allowed (Corporate exceptions may be considered).

Must be from an institutional lender in an amount up to the maximum LTV/CLTV/HTLTV allowed. Must cover at least the interest accrued. Mortgage terms must require interest at market rate. Seller-carried second financing in NOT allowed.

PBM JUMBO PRODUCTS COMPARISON CHART

This is only a Quick Reference Jumbo Comparison Chart. Refer All Product Specific Guidelines for complete guidelines and updates Page 13

08/04/2014

This is only a Quick Reference Jumbo Comparison Chart. Refer All Product Specific Guidelines for complete guidelines and updates

PBM PRODUCT NAME

EXPANDED JUMBO ULTIMATE JUMBO PORTFOLIO JUMBO DELUXE JUMBO

PRODUCT CODES JF15R JF30R JA51R JA101R JF15P JF30P PA51AJ JF30D

CONSTRUCTION TO

PERM/TAKEOUT

Rate & Term and Cash Out Refinance Transactions. If the lot was acquired 12 or more months before applying for the construction financing LTV is based on the current appraised value of property. If the lot was acquired less than 12 months before applying for the construction financing, the LTV is based on the lesser of the current appraised value of the property and the total acquisition costs. Refer to product guidelines for specific requirements.

Construction financing is not allowed but permanent take out is allowed.

The borrower must hold title to the lot, which may have been previously acquired or purchased as part of the transaction. For lots owned >= 12 months from date of application LTV/CLTV/HCLTV is based on current appraised value. For lots owned <=12 months from application date for subject transaction, LTV<CLTV<HCLTV is based on the lesser of the current appraised value of the property and the total acquisition costs. Cash out is acceptable with the same LTV/CLTV/HCLTV criteria.

The LTV based on the appraised value of the property at the of the property at the time the permanent loan is closed, regardless of seasoning, meets the requirements in the loan program matrix. Proceeds are used to pay off an interim construction loan and allowable closing costs.

PBM JUMBO PRODUCTS COMPARISON CHART

This is only a Quick Reference Jumbo Comparison Chart. Refer All Product Specific Guidelines for complete guidelines and updates Page 14

08/04/2014

This is only a Quick Reference Jumbo Comparison Chart. Refer All Product Specific Guidelines for complete guidelines and updates

PBM PRODUCT NAME

EXPANDED JUMBO ULTIMATE JUMBO PORTFOLIO JUMBO DELUXE JUMBO

PRODUCT CODES JF15R JF30R JA51R JA101R JF15P JF30P PA51AJ JF30D

NON OCCUPANT CO-BORROWER

Case by Case Investor Exception Only

Non occupant co borrowers are not allowed.

Case By Case Exception Request Required

If there is a Non-occupant co-borrower, the owner-occupant must meet the following requirements on purchase transactions only. • If the LTV is greater

than 70% and the non-owner occupant’s income is used to qualify the owner occupant must contribute 5% of the purchase price from his or her own funds.

• The owner occupant must qualify at 35%/40% maximum ratios, regardless of the LTV. The maximum DTI ratio for the non-occupant is 43%.

DELAYED PURCHASE FINANCING

Owner occupancy for Primary residence only (no 2nd homes allowed). The LTV is based on the lesser of the purchase price or current appraised value. Funds secured by a pledged asset or retirement

Refer to FNMA guidelines. Loan is underwritten as a rate and term refinance. Owner occupancy for primary residence only. Funds secured by a pledged asset or retirement account are not considered borrower’s own funds for the Delayed Purchase Refinance programs.

Original purchase transaction is an arm’s-length transaction. No second homes allowed. Underwritten as a rate and term refinance. There are no existing liens on the subject property. The source of funds for the purchase transaction are

PBM JUMBO PRODUCTS COMPARISON CHART

This is only a Quick Reference Jumbo Comparison Chart. Refer All Product Specific Guidelines for complete guidelines and updates Page 15

08/04/2014

This is only a Quick Reference Jumbo Comparison Chart. Refer All Product Specific Guidelines for complete guidelines and updates

PBM PRODUCT NAME

EXPANDED JUMBO ULTIMATE JUMBO PORTFOLIO JUMBO DELUXE JUMBO

PRODUCT CODES JF15R JF30R JA51R JA101R JF15P JF30P PA51AJ JF30D

account are not considered borrower’s own funds for Delayed Purchase Refinance programs; see cash out section for additional guidance.

documented (no borrowed, gift or shared funds); The new loan amount if no more than the actual documented amount of borrower’s initial investment in purchasing the property plus the financing of closing costs.

INTERESTED PARTY

CONTRIBUTIONS

• 75% - 80% = 3% • <75% = 6%

• 3% of value with LTV/CLTV ratios greater than 75% and up to 80%.

• 6% of value with LTV/CLTV ratios less than or equal to 75%.

• 75.01%-80% - 3% • <=75% = 6%

• 75.01%-80% - 3% • <= 75% - 6%

SALES/FINANCING CONCESSIONS

NOT ALLOWED See product specific guidelines for additional information

See above interested Party contributions. Refer to FNMA guidelines for additional information.

NOT ALLOWED See product specific guidelines for additional information

NOT ALLOWED

PBM JUMBO PRODUCTS COMPARISON CHART

This is only a Quick Reference Jumbo Comparison Chart. Refer All Product Specific Guidelines for complete guidelines and updates Page 16

08/04/2014

This is only a Quick Reference Jumbo Comparison Chart. Refer All Product Specific Guidelines for complete guidelines and updates

PBM PRODUCT NAME

EXPANDED JUMBO ULTIMATE JUMBO PORTFOLIO JUMBO DELUXE JUMBO

PRODUCT CODES JF15R JF30R JA51R JA101R JF15P JF30P PA51AJ JF30D

NON ARMS LENGTH

NOT ALLOWED. Non-Arm’s length transactions are not eligible with the exception of the following: Family sales or transfers, Property Buyer or Seller representing themselves as real estate agent, Employee of lender, Renter buying from landlord. 24 months cancelled checks required .

Not allowed. Non- Arm’ length transactions are not eligible with the exception of the following: Family sales or transfer, Property sellers or buyers are representing themselves as the real estate agent in the transaction, the borrower is the employee of the originating lender and the lender has an established employee loan program, renter buying from landlord (24 months cancelled checks are required).

NOT ALLOWED

HOLDBACKS Escrow holdbacks are not allowed unless the holdback has been dispersed and a certificate of completion has been issued prior to investor purchase.

Investor cannot purchase loans with open escrow holdbacks. All holdback must be cleared prior to investor approval.

Case by Case Exception Request Required.

NOT ALLOWED

RESERVE The tables below indicate The tables below indicate The tables below indicate Refer to Loan Program

PBM JUMBO PRODUCTS COMPARISON CHART

This is only a Quick Reference Jumbo Comparison Chart. Refer All Product Specific Guidelines for complete guidelines and updates Page 17

08/04/2014

This is only a Quick Reference Jumbo Comparison Chart. Refer All Product Specific Guidelines for complete guidelines and updates

PBM PRODUCT NAME

EXPANDED JUMBO ULTIMATE JUMBO PORTFOLIO JUMBO DELUXE JUMBO

PRODUCT CODES JF15R JF30R JA51R JA101R JF15P JF30P PA51AJ JF30D

ELIGIBLE ASSETS the number of months of PITIA required. See “Multiple Financed Properties” for additional reserves requirement. Acceptable reserves include 100% of the amount for stocks, bonds and mutual funds and 60% of the VESTED amount of funds in 401K, IRA and other IRS qualified retirement plans, the cash value of life insurance policies, the borrower’s share of undistributed trust funds. Business funds are NOT an acceptable form of reserves.

the number of months of PITIA required. First time home buyers require 12 months require 12 months reserves. Borrowers that own more than two financed properties require at least 18 months reserves. See FNMA guidelines for additional information.

the number of months of PITIA required. First time Home buyers require reserves of 12 month PITI and are limited to a maximum loan of $850,000. All financed properties, other than the subject property require an additional six (6) months reserves for each property.

matrix. In addition, all financed properties, other than the subject property, require an additional 6 months reserves for each property.

PBM JUMBO PRODUCTS COMPARISON CHART

This is only a Quick Reference Jumbo Comparison Chart. Refer All Product Specific Guidelines for complete guidelines and updates Page 18

08/04/2014

This is only a Quick Reference Jumbo Comparison Chart. Refer All Product Specific Guidelines for complete guidelines and updates

PBM PRODUCT NAME

EXPANDED JUMBO ULTIMATE JUMBO PORTFOLIO JUMBO DELUXE JUMBO

PRODUCT CODES JF15R JF30R JA51R JA101R JF15P JF30P PA51AJ JF30D

RESERVE REQUIREMENTS

<= $1,000,000 6 MO 1,000,001-$1,500,000 9 MO

1,5000,001-2,000,000 12 MO 2,000,001-2,500,000 24 MO

For Hybrid ARMs, add 3 months PITI for minimum reserves required as noted above. * First time home buyers (borrowers that had not had ownership in a property for 3 years) require 12 month PITI reserves.

PURCHASE/RATE & TERM/CASHOUT

1 unit <$1,500,000 9 months

>$1,500,000 12 months 2 unit

<$1,500,000 12 months

Primary Residence Purchase, R/T or C/O

<= $1,000,000 9 months > $1,000,000 12 months

Refer to Loan Program Matrix

SECOND HOME-RESERVES

<= $1,000,000 12 MO 1,000,001-$1,500,000 18 MO 1,5000,001-2,000,000 24 MO 2,000,001-2,500,000 36 MO

For Hybrid ARMs, add 3 months PITI for minimum reserves required to noted above.

2nd Home 1 unit <$1,500,000 18 months

*First time home buyers require 12 months PITI reserves.

N/A

BUSINESS ASSETS RESERVES

Business assets are NOT an acceptable form of

Refer to FNMA guidelines Business funds are not an acceptable form of

Not acceptable

PBM JUMBO PRODUCTS COMPARISON CHART

This is only a Quick Reference Jumbo Comparison Chart. Refer All Product Specific Guidelines for complete guidelines and updates Page 19

08/04/2014

This is only a Quick Reference Jumbo Comparison Chart. Refer All Product Specific Guidelines for complete guidelines and updates

PBM PRODUCT NAME

EXPANDED JUMBO ULTIMATE JUMBO PORTFOLIO JUMBO DELUXE JUMBO

PRODUCT CODES JF15R JF30R JA51R JA101R JF15P JF30P PA51AJ JF30D reserves reserves.

FIRST TIME HOME BUYER

First time home buyers (borrowers who have not owned a property in the last 3 years) require reserves of 12 months PITIA and are limited to a max. loan of $1,000,000

First time home buyers (borrowers who have not owned a property in the last 3 years) require reserves of 12 months PITIA and are limited to a max. loan of $1,000,000

First time home buyers (borrowers who have not owned a property in the last 3 years) require reserves of 12 months PITIA and are limited to a maximum loan of $850,000.

First time homebuyers must demonstrate reserves of 12 month PITI and are limited to a maximum loan amount of $1,000,000.

SOURCE OF FUNDS TO

CLOSE

All asset documentation must be dated within 90 days of the date of the note was signed.

All asset documentation must be dated within 90 days of the date of the note was signed.

All asset documentation must be dated within 90 days of the date of the note was signed.

All asset documentation must be dated within 60 days of the date of the note was signed.

BUSINESS ASSETS CAN be used for down payment and or closing costs but CANNOT be used for income. CANNOT be used for reserves. Borrower must have 100% access to the funds. Borrower must be the sole proprietor or 100% owner of the business (or all borrowers combined own 100%). See guidelines for additional requirements.

Allowed. Borrower must be 100% owner. A letter from the CPA must be provided confirming the withdrawal will not harm the business OR business funds used for close cannot exceed 50% of the lesser of the prior two months business bank statements. Note: When the same business has multiple accounts for the months, it will be counted as the same business account.

Business assets may be used of down payment and/or closing costs, not for purposes of calculating reserves. Borrower must have access to funds. The borrower must be the sole proprietor or 100% owner of the business (or all borrowers combined own 100%).

Business asset CANNOT be used. NO EXCEPTIONS.

LIQUIDATION OF RETIREMENT ACCOUNTS

Proof of liquidation and proof of receipt of funds is required.

Refer to FNMA Guidelines. Proof of liquidation and proof of receipt of funds is required.

Proof of liquidation and proof of receipt of funds is required.

PBM JUMBO PRODUCTS COMPARISON CHART

This is only a Quick Reference Jumbo Comparison Chart. Refer All Product Specific Guidelines for complete guidelines and updates Page 20

08/04/2014

This is only a Quick Reference Jumbo Comparison Chart. Refer All Product Specific Guidelines for complete guidelines and updates

PBM PRODUCT NAME

EXPANDED JUMBO ULTIMATE JUMBO PORTFOLIO JUMBO DELUXE JUMBO

PRODUCT CODES JF15R JF30R JA51R JA101R JF15P JF30P PA51AJ JF30D GIFT For purchase transactions,

gift funds may be used once the borrower contributes at least 5% from their own funds. Donor must be an immediate family member, future spouse or domestic partner living with borrower. Refer to FNMA guidelines for additional requirements.

Gift funds are allowed after the borrower contributes 5%. Donor must be an immediate family member.

Gift funds are allowed after the borrower contributes 5%. Donor must be an immediate family member. Cannot be used for reserves. Donor must be an immediate family member, future spouse, or domestic partner living with the borrower.

Gifts may be used for purchase transactions if the borrower also contributes at least 5% from his or her own funds: Gift funds may not be used to meet reserve requirements: The donor must an immediate family member, future spouse, or domestic partner living with the borrower. Proof of the donor’s ability to give and evidence of transfer and receipt of funds is required.

TRUST FUNDS Refer to FNMA guidelines Allowed. Refer to FNMA guidelines Allowed. Borrower must have access to all or a certain specific amount of the funds and shows the trust has the assets to disburse funds to the borrower(s).

MUTUAL FUNDS AND STOCK

Full Value of stock accounts can be considered in the calculation of assets available for reserves.

Proof of receipt/liquidation is required. See FNMA guidelines.

Full Value of stock accounts can be considered in the calculation of assets available for reserves.

Proof of liquidation and transfer is required.

PBM JUMBO PRODUCTS COMPARISON CHART

This is only a Quick Reference Jumbo Comparison Chart. Refer All Product Specific Guidelines for complete guidelines and updates Page 21

08/04/2014

This is only a Quick Reference Jumbo Comparison Chart. Refer All Product Specific Guidelines for complete guidelines and updates

PBM PRODUCT NAME

EXPANDED JUMBO ULTIMATE JUMBO PORTFOLIO JUMBO DELUXE JUMBO

PRODUCT CODES JF15R JF30R JA51R JA101R JF15P JF30P PA51AJ JF30D

NON ACCEPTABLE SOURCES OF

FUNDS

For Assets not listed as acceptable contact Corporate for eligibility.

Refer to FNMA guidelines For Assets not listed as acceptable contact Corporate for eligibility.

Business assets, sale of an asset other that real property of publicly traded securities, cash on hand, deposit from an individual development account (IDA) Funds from a community savings system, Unsecured loans from an Employer Assisted Homeownership Benefit Program.

CREDIT HISTORY REQUIREMENTS

No 30 day late payments in the last 24 months on any mortgage or rental accounts. (NO EXCEPTIONS). Must verify 24 months of Rent/Mortgage History.

Mortgage/Rental history must reflect zero 30 day lates in the last 24 months. Investor will consider the borrower as having timely payments for the time in which the borrower has owned a property “free and clear”. Investor will not allow borrowers that are living “rent free”.

Mortgage/Rental history must reflect zero 30 day lates in the last 24 months. (NO EXPEPTIONS) Must verify 24 month Mortgage/Rental History.

Primary wage earner must have a minimum of 24 months housing history. No late payment allowed on any mortgage or rental account in the last 24 months. Authorized user accounts are not considered in the minimum trade line requirement. Borrower mush not have been a part to a loan that was modified due to the inability to repay under the original loan terms within the last 2 years.

MINIMUM CREDIT Three “Open” trade All borrowers contributing A minimum of 3 open trade Option one:

PBM JUMBO PRODUCTS COMPARISON CHART

This is only a Quick Reference Jumbo Comparison Chart. Refer All Product Specific Guidelines for complete guidelines and updates Page 22

08/04/2014

This is only a Quick Reference Jumbo Comparison Chart. Refer All Product Specific Guidelines for complete guidelines and updates

PBM PRODUCT NAME

EXPANDED JUMBO ULTIMATE JUMBO PORTFOLIO JUMBO DELUXE JUMBO

PRODUCT CODES JF15R JF30R JA51R JA101R JF15P JF30P PA51AJ JF30D HISTORY lines;(1) One must open

and active for 24 months. One must be an installment or mortgage account. One must be rated for 12 months. Authorized user accounts will not be considered as acceptable trade lines. Two open trade lines are acceptable for purchase transactions where the borrower(s) have a 24 month history in the past five years. An exception to the minimum trade line requirement is not required if the borrower’s credit history meets the following: *No less than 10 trade lines are reporting. *At least one trade line is open and reporting for a minimum of 12 months. *Credit history established for at least 10 years.

qualifying income must meet one of the following options: *Three (3) open trade lines with 24 months of credit history and all 3 of these trade lines must have had activity within the last 6 months. *Two (2) open trade lines with: Purchase transactions only and borrower(s) have 24 months consecutive mortgage history in the past 5 years. *One (1) open trade line with: A minimum of 12 months reporting on the open trade line, and no less than 10 trade lines reporting with the one being a mortgage and credit history established for at least 10 years. Authorized user accounts cannot be used to satisfy minimum trade requirements.

lines: One must be open and active for 24 months. At least one of the required 3 trade lines must be an installment or mortgage account. Remaining trade lines are acceptable for purchase transactions where the borrower(s) have a 24 month history in the past five years. An Exception to the minimum trade line requirement is not required if the borrower’s credit history meets the following: No less than 20 trade lines are reporting and one must be a mortgage. Credit history established for at least 10 years. Note: Borrowers not contributing income for qualifying purposes are not subject to the minimum trade line requirement. Authorized user accounts will not be considered as acceptable trade lines.

Minimum 3 open trade lines:

• 1 must be open and active for two years.

• 1 trade line (revolving or installment) with a minimum $5,000 credit limit.

• 1 remaining trade line must be rated at least 12 mos.

Option two: Minimum 2 open trade lines:

• 1 open and active trade line and;

• 1 Mortgage trade line with 24 month history within the last 5 years.

Option three: • 10 trade lines with

at least 10 years established credit history

• 1 of the 10 trade lines must be open and active for at

PBM JUMBO PRODUCTS COMPARISON CHART

This is only a Quick Reference Jumbo Comparison Chart. Refer All Product Specific Guidelines for complete guidelines and updates Page 23

08/04/2014

This is only a Quick Reference Jumbo Comparison Chart. Refer All Product Specific Guidelines for complete guidelines and updates

PBM PRODUCT NAME

EXPANDED JUMBO ULTIMATE JUMBO PORTFOLIO JUMBO DELUXE JUMBO

PRODUCT CODES JF15R JF30R JA51R JA101R JF15P JF30P PA51AJ JF30D least 12 months

• 1 of the 10 trade lines must be a mortgage (either active or inactive)

BANKRUPTCY None allowed Not allowed None allowed. Chapter 7, 11 or 13 bankruptcies are not allowed in the past 7 years from discharge date or dismissal date.

FORECLOSURE DEED IN LIEU

None allowed Not allowed None allowed Not allowed in the past 7 years.

SHORT SALE None allowed Not allowed None allowed Not allowed in the past 7 years.

JUDGEMENTS, COLLECTIONS, CHARGEOFFS,

GARNISHMENTS OR LIENS.

Refer to FNMA Guidelines All judgments and tax liens must be paid.

Refer to FNMA Guidelines All of the following must be paid in full by or at closing: judgments, charge-offs, collection accounts, garnishments, or liens. Collections or charge-offs less than $1,000.00 (cumulative) are not required to be paid off.

LOAN MODIFICATIONS

None allowed unless the modification is lender initiated and documented proof that it was not a distressed situation is provided.

Borrowers with prior loan modifications are not allowed, unless the modification is lender initiated and documented proof that it was not a distressed situation is provided.

None allowed. unless, the modification is lender initiated and documented proof that it was not a distressed situation is provided and no funds were forgiven.

Borrower must not have been a party to a loan that was modified due to the inability to repay under the original loan terms within the last 2 years.

PBM JUMBO PRODUCTS COMPARISON CHART

This is only a Quick Reference Jumbo Comparison Chart. Refer All Product Specific Guidelines for complete guidelines and updates Page 24

08/04/2014

This is only a Quick Reference Jumbo Comparison Chart. Refer All Product Specific Guidelines for complete guidelines and updates

PBM PRODUCT NAME

EXPANDED JUMBO ULTIMATE JUMBO PORTFOLIO JUMBO DELUXE JUMBO

PRODUCT CODES JF15R JF30R JA51R JA101R JF15P JF30P PA51AJ JF30D CONSUMER CREDIT

COUNSELINIG Not Allowed Refer to FNMA guidelines. Not Allowed None allowed.

CAPITAL GAINS Proof of sufficient assets to generate capital gains. Requires 3 years tax returns including schedule D. Must be consistent from consistent sources.

Not Allowed Capital gains for like assets may be considered as effective income. The earnings trend or loss must be considered in the overall analysis of this income type.

Allowed. 24 month average. Proof of sufficient assets to generate capital gains after closing for the qualifying income to be expected to continue for the next 3 years.

NOTE INCOME Receipt of recent 12 months payments and continuance for at least 3 years.

Not Allowed Proof of receipt of at least 12 months and must continue for at least 3 years.

Proof of receipt of at least 12 months and must continue for at least 3 years.

DIVIDENED AND INTEREST INCOME

Document prior 2 year tax returns. Proof of assets to support the continuation.

Refer to Fannie Mae Guidelines

Document prior 2 year tax returns. Proof of assets to support the continuation.

Document prior 2 year tax returns. Proof of assets to support the continuation. Proof on continuance for at least 3 years.

TRUST INCOME Proof of continuance for at least 3 years. Regular receipt of trust income for the past 12 months must be documented.

Refer to FNMA guidelines Can be used if guaranteed and regular payments will continue for at least 3 years. Proof of receipt for the last 12 months is required. Non- taxable trust income must include proof of distribution.

Contact Corporate underwriting for eligibility.

SOCIAL SECURITY INCOME

Proof of continuance for at least 3 years. 3 months receipt of income. May gross up social security if documented with tax

Must be verified by a Social Security Administration benefit verification letter.

Proof of continuance for at least 3 years.

Need 6 months proof of receipt, Award letter and most recent year 1099’s.

PBM JUMBO PRODUCTS COMPARISON CHART

This is only a Quick Reference Jumbo Comparison Chart. Refer All Product Specific Guidelines for complete guidelines and updates Page 25

08/04/2014

This is only a Quick Reference Jumbo Comparison Chart. Refer All Product Specific Guidelines for complete guidelines and updates

PBM PRODUCT NAME

EXPANDED JUMBO ULTIMATE JUMBO PORTFOLIO JUMBO DELUXE JUMBO

PRODUCT CODES JF15R JF30R JA51R JA101R JF15P JF30P PA51AJ JF30D returns showing non-taxable.

ALIMONY/CHILD SUPPORT

Proof of continuance for at least 3 years and proof of receiving full, regular, and timely payments for the past 6 month. If the income is the borrower’s primary income source and there is a defined expiration date (even if beyond 3 years), the income may not be acceptable for qualifying purposes.

The borrower must provide acceptable evidence that the payments have been received during the last twelve months.

Proof of continuance for at least 3 years. Must provide proof of receipt for at least the past 6 months. Child support payments may be grossed up. Refer to non-taxable income for child support income treatment in guidelines.

If receipt of such income has continued for less than 12 months but more than 6 months, such income can be used if it does not exceed 30% of the borrower’s qualifying income. If the payor has been obligated to make payments for less than 6 month, or if the payments are not for the full amount, are not received on a consistent basis, or receipt of such has continued for less than 6 month, the income must not be considered for qualifying.

FOREIGN INCOME Allowed. See guidelines for documentation.

Refer to FNMA guidelines. Allowed. Refer to guidelines for additional information.

Contact Corporate Underwriting for eligibility.

PBM JUMBO PRODUCTS COMPARISON CHART

This is only a Quick Reference Jumbo Comparison Chart. Refer All Product Specific Guidelines for complete guidelines and updates Page 26

08/04/2014

This is only a Quick Reference Jumbo Comparison Chart. Refer All Product Specific Guidelines for complete guidelines and updates

PBM PRODUCT NAME

EXPANDED JUMBO ULTIMATE JUMBO PORTFOLIO JUMBO DELUXE JUMBO

PRODUCT CODES JF15R JF30R JA51R JA101R JF15P JF30P PA51AJ JF30D SELF EMPLOYMENT Borrowers who are

employed by a family member are considered to be self –employed regardless of the percentage of ownership, and self-employed documentation is required. See guidelines for additional requirements.

“S” corporation or partnership must provide a year to date profit and loss statement and balance sheet. P&L used to support income trend in either a positive or negative direction. See guidelines for additional information.

Borrowers who are employed by a family member are considered to be self-employed regardless of the percentage of ownership and self-employed documentation is required. See guidelines for additional information.

Self-Employed Sole Proprietorship (more than 25% ownership) o Complete signed individual federal tax returns for the most recent 2 years reflecting at least 12 months of self-employment income. Self-Employed S-Corporation (more than 25% ownership) o Complete signed individual and business federal tax returns, including K-1s for the most recent 2 years reflecting at least 12 months of self-employment income. Self-Employed Partnership (more than 25% ownership)

RENTAL INCOME If the subject property is the borrower’s primary residence generating net rental income/loss must be added to the borrower’s total monthly income (net) or obligations (loss).

Refer to FNMA guidelines. Refer to guidelines. If subject property is a 2

unit primary residence and has owned the property for 1 year or more, at least 1 year federal taxes reflecting 12 months of rental income. If the

PBM JUMBO PRODUCTS COMPARISON CHART

This is only a Quick Reference Jumbo Comparison Chart. Refer All Product Specific Guidelines for complete guidelines and updates Page 27

08/04/2014

This is only a Quick Reference Jumbo Comparison Chart. Refer All Product Specific Guidelines for complete guidelines and updates

PBM PRODUCT NAME

EXPANDED JUMBO ULTIMATE JUMBO PORTFOLIO JUMBO DELUXE JUMBO

PRODUCT CODES JF15R JF30R JA51R JA101R JF15P JF30P PA51AJ JF30D borrower has owned the property less than 1 year, the income approach must be used.

RETIREMENT INCOME(PENSION, ANNUITY, AND IRA

DISTRIBUTIONS)

Existing distribution of asset from an IRA, 401K or similar retirement asset account must be sufficient to sustain income for 3 years. Proof of receipt of at least 6 months is required. Asset distribution of all post closing liquid and retirement assets are acceptable for borrower’s of retirement age or with retirement-like situations, i.e. sale of company, etc.

Refer to FNMA guidelines. To use annuity income to qualify, a formal and structured annuity agreement must exist through a guaranteed income vehicle. One of the following is required to show receipt of the income: Most recent one year W-2’s, 1099’s or Federal Income Tax Returns with all schedules. 12 months bank statements reflecting regular deposits of the annuity income. Existing distribution of assets from an IRA, 401K or similar retirement asset account must be sufficient to sustain income continuance for a minimum of 3 years. Receipt of 6 months is required. Note Distributions from asset accounts cannot be set up, or changed solely for loan qualification purposes.

Need 6 months proof of receipt, Award letter and most recent year 1099’s.

PBM JUMBO PRODUCTS COMPARISON CHART

This is only a Quick Reference Jumbo Comparison Chart. Refer All Product Specific Guidelines for complete guidelines and updates Page 28

08/04/2014

This is only a Quick Reference Jumbo Comparison Chart. Refer All Product Specific Guidelines for complete guidelines and updates

PBM PRODUCT NAME

EXPANDED JUMBO ULTIMATE JUMBO PORTFOLIO JUMBO DELUXE JUMBO

PRODUCT CODES JF15R JF30R JA51R JA101R JF15P JF30P PA51AJ JF30D

ASSET DEPLETION/ DISSIPATION

Annuitization (depletion of assets) is calculated using a 3% return over the life of the loan. Use of this income calculation supersedes use of existing retirement distributions (exclusive of pension distributions) if those assets are considered in the calculation.

Not Allowed Not Allowed May be used if the mortgage meets all of the following requirements:

• Is either a purchase of no cash out refinance;

• Has a maximum LTV of no greater than 70%;

• The borrower must not currently be using the eligible assets as a source of income.

• Both the source and the amount of the asset are reasonable and stable for each such asset used to qualify.

To calculate asset depletion using 3% rate of return.

UNACCEPTABLE INCOME

Rental income received from borrower’s single family primary residence or second home, Retained earnings, and Allowance

For income not listed as an acceptable income source contact Corporate Underwriting for eligibility.

Rental income received from the borrower’s single family primary residence or second home, Retained earnings, Education

For income not listed as an acceptable income source contact Corporate Underwriting for eligibility.

PBM JUMBO PRODUCTS COMPARISON CHART

This is only a Quick Reference Jumbo Comparison Chart. Refer All Product Specific Guidelines for complete guidelines and updates Page 29

08/04/2014

This is only a Quick Reference Jumbo Comparison Chart. Refer All Product Specific Guidelines for complete guidelines and updates

PBM PRODUCT NAME

EXPANDED JUMBO ULTIMATE JUMBO PORTFOLIO JUMBO DELUXE JUMBO

PRODUCT CODES JF15R JF30R JA51R JA101R JF15P JF30P PA51AJ JF30D income. benefits, and allowance

income.

APPRAISAL REQUIREMENTS

Purchase: Loan amounts <=$2,000,000 One (1) Full appraisal is required. Loan amounts >$2,000,000 two Full appraisals are required. Refinance: Loan amounts <=$1,000,000 One (1) Full appraisal is required. Loan amounts >$1,000,000 requires Two (2) Full appraisals are required. For properties purchased by the seller of the property within 90 days of the fully executed purchase contract, additional requirements apply. A second appraisal is required. See guidelines for additional requirements.

Two (2) full appraisals required on all loan amounts greater than $1,000,000 and the appraised value variance between the appraisals may not exceed 10%. LTV is based on the lessor of the two or purchase price, subject to Investor appraisal review process. Collateral Desktop Analysis (CDA) from Clear Capital. Cost $145. 2 day turn time. Note: Value reported on the appraisal review product must be within 10% of the appraisal and not identify issues that would undermine the credibility of the original appraisal.

Purchase: Loan amounts <=1,000,000 One full appraisal >$1,000,000 One full appraisal

+ Field review* Refinance: Loan amounts

<=$1,000,000 One full appraisal

>$1,000,000 One full appraisal + Field review*

*Field reviews that come in lower than the Full Appraisal will require a second full appraisal completed by the field reviewer. Note: For properties purchased by seller within 90 day of the purchase contract, a second appraisal will be required.

Purchase: loan amount <=$2,000,000 One full

appraisal >=$2,000,000 2 full appraisals Rate and term or Cash out: <=$1,000,000 1 Full appraisal >$1,000,000- <=$2,500,000

2 full appraisals. Investor review of appraisal is required.