Ofc alt a_expanded_ratio_matrix
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The document outlines guidelines for an expanded ratio program for fixed rate and ARM loans. Key requirements include: - Minimum FICO scores of 720, 700, and 720 for owner occupied, second homes, and investment properties respectively. - Maximum debt-to-income ratios of 50% and ARM loans must qualify at the note or fully indexed rate, whichever is higher. - Minimum reserves of 6-12 months PITIA depending on loan amount. Additional reserves are required for investment properties. - Property types eligible include single family, condos, PUDs. Ineligible include mobile homes, commercial properties, and properties over 5 acres.
Ofc alt a_expanded_ratio_matrix
- 1. 04-09-2014 Expanded Ratio Program 202 (Wholesale) Fixed Rate Owner Occupied (1‐Unit Only) Second Home (1‐Unit Only) Investment Property (1‐Unit Only) Max CLTV Minimum FICO Max CLTV Minimum FICO Max CLTV Minimum FICO 80% 720 75% 720 70% 720 75% 700 70% 700 65% 700 Eligible Products • 15YFIX202– 15 Year Fixed Rate • 30YRFIX202 – 30 Year Fixed Rate • 7/1ARM202 ‐ 7/1 Hybrid (5/2/5 Caps 12 ML 4.25% Margin) Loan Amount • Minimum Loan amount $100,000 • Maximum Loan Amount $850,000 Age Of Documents • All credit documents must be dated within 120 days of the note date. • Preliminary Title Policies must be no more than 180 days old on the date the note is signed. Credit Score • The credit score used to qualify will be based on the middle of three scores. If only two scores are available then the lower of the two should be used as the qualifying credit score. • In the event that the transaction has more than one borrower, the lower of all qualifying credit scores will be used. Trade lines • Minimum of two trade lines are required for all borrowers that are contributing income to qualify. At least one trade line must be open and active for the past 24 months. • A current mortgage paid as agreed for past 60 months will override the minimum trade line requirement Housing History • Max 0x30x24 inclusive of all mortgages on all REO for all borrowers on the transaction • VOM/VOR as a standalone documentation is not acceptable. If the housing history is not documented on the credit report then cancelled checks are required for the most recent 24 months. Significant Derogatory Credit • Period of time that must elapse prior to loan eligibility is as follows: * Foreclosure ‐ 7 years * Short Sale, Deed‐in Lieu, or Pre‐foreclosure sales ‐ 7 years * Bankruptcy: o Chapter 7 or 11 ‐ 4 years from discharge or dismissal o Chapter 13 ‐ 2 years from discharge or 4 years from dismissal *Reduction in Oaktree standard waiting periods are NOT reduced for any extenuating circumstances. Employment/Income Verification • Employment and income documentation must comply with Employment and Income Analysis and Documentation section of the Oaktree Selling Guide • VOE’s as a standalone document are not acceptable. Income must be fully documentedas outlined in the OaktreeSelling Guide. • Tax transcripts are required for each borrower whose income is utilized as a source of repayment. The most recent available tax transcripts are required to support the income used to qualify the borrower. • A signed 4506‐T is required for all transactions • Mortgage Credit Certificates (MCCs): Not permitted Conversion of a Primary Home to an Investment Property • Rental Income: To use rental income to qualify, must include proof that equity position is at least 30% • Required documentationto include fully executed lease agreement and proof of receipt of security deposit from tenant. • Proposed tenant cannot include a family member or an individual with an established relationshipwith any party involved with transaction
- 2. 04-09-2014 Debt to Income Ratio • Max 50% • 7/1 ARM must be qualified based on the greater of the note rate or the fully indexed rate Residual Income • Must meet the minimum residual income as indicated on the Oaktree Residual Income Analysis worksheet Reserves • For loan amounts less than $417,000 – 6 Months PITIA is required • For loan amounts greater than $417,000 – 12 months PITIA is required • For Investment property transactions, an additional 6 months PITIA is required for each additional property • Gift funds may not be used to meet reserve requirement Seller Concession • 75%‐80% CLTV max 3% seller concession • < 75% CLTV max 6% seller concession Minimum Borrower Investment • For Primary Residences Minimum down payment of 5% from borrowers own funds are required. Balance of the cash to close may be paid from other acceptable asset sources including gift funds(See Oaktree selling guide for requirements on gift funds) • For Second home and investment properties, gift funds are not eligible for down payment/closing costs. Appraisals • Full Interior/Exteriorform 1004 is required on all transactions •Appraisal Condition Rating of C5/C6 or a Quality Rating of Q6: Not permitted •Reuse of an appraisal from a prior transaction: Not Permitted • Oaktree will require successful UCDP Submission Summary Reports (SSRs) from both Fannie Mae and Freddie Mac. Oaktree not purchase loans that include the recently added proprietary messages that indicate 100% of the loans submitted with appraisals from the identified appraiser will be reviewed, or that Fannie Mae will not accept appraisals from the identified appraiser, as applicable. Eligible Property Types • Single Family Detached • Single Family Attached • PUDs • Condominiums ‐ Refer to CondominiumsSection in this Matrix • Rural Properties ‐ In accordance with Agency Guidelines, loans must be residential in nature • Leaseholds ‐ Provide Freddie Mac Ground Lease Analysis (Form 461) • Illinois Land Trust – See Oaktreeselling guide for specific requirements Ineligible Property Types •Cooperatives • 2‐4 Unit Properties • Condotels • Hotel/Motel Condominiums • Mobile Homes • Manufactured Housing • Commercial Operations • Geodesic Domes • Working farms and ranches • Unimproved Land • Properties with more than 5 Acres • Timeshares Condominiums • Must meet Fannie Mae eligibility for a full lender review. Limitations on Financed Properties • Borrower may own up to 4 properties (regardless of being financed or not) • Refer to additional requirements for Investment Transactions in the Reserve section of this matrix •Maximum exposure of 2 Oaktree financed loans to any one borrower in a Condo or PUD development Recently Listed Properties • Refinance Transaction ‐ Properties that were listed for sale within 90 days of the disbursement date of the new mortgage loan, the loan is ineligible for sale to Oaktree. Eligible Mortgage Products • Fixed Rate: 15 and 30 Year Terms
- 3. 04-09-2014 Loan Purpose • Purchase • Rate/Term refi • Cash out transactions are not eligible Occupancy • Owner Occupied • Second Home • Investment • Non‐Occupant Co borrowers are not eligible. Non‐Arms Length Transactions • Non‐arms length transactions are not permitted. Escrows • Escrows are required on all loans AUS • All Loans Must be submitted to DU for the benefit of alerts • DU documentation requirements cannot be followed. • All Loans require a manual underwrite • Loans within the Fannie Mae standard loan limits must receive a refer recommendation Assignment of Mortgage • All loans must be registered with MERS at the time of delivery to Oaktree, and MERS transfer of beneficial rights of servicing rights must be initiated by the Seller, to Oaktree, within 24 hours of purchase. * If Oaktree will be handling the registration with MERS, please refer to Oaktree Seller's Guide Buydowns • Temporary Buydowns are not permitted. Disaster Policy • When a property is located in a Disaster Area, Oaktree requires verification the structure is sound and not negatively impacted by the Disaster. This must be verified prior to closing/purchasing the loan. Refer to the list of affected counties published by FEMA at the following link: http://www.fema.gov/news/disaster_totals_annual.fema • Please refer to Oaktree Seller's Guide for Disaster Procedures High Cost Loans •Oaktree will not fund High Cost Loans Secondary Financing • New Secondary Financing: Not Permitted • HELOC CLTV position must be calculated at the maximum credit line. Existing secondary financing must be subordinated or can be refinanced in accordance with the Oaktree Selling Guide State Restrictions •The following state is not eligible: • Nevada