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CMG FHA Guidelines: Wholesale & Select Partner

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CMG FHA Guidelines: Wholesale & Select Partner CMG Financial, a Division of CMG Mortgage Inc. NMLS #1820 Corporate Headquarters: 3160 Crow Canyon Rd. Ste. 400, San Ramon, CA 94583 CMG FHA Guidelines: Wholesale & Select Partner Loan Matrix – LTV/CLTV & Minimum Credit Score ...................................................................................................................................................... 2 Program Details, Highlights and Overlays.................................................................................................................................................................... 3 Part A – Borrower & Application ................................................................................................................................................................................ 10 Part B – Property Ownership Restrictions .................................................................................................................................................................. 18 Part C – Occupancy .................................................................................................................................................................................................. 19 Part D – Underwriting Documentation ........................................................................................................................................................................ 20 Part E – Application ................................................................................................................................................................................................... 24 Part F – Credit Analysis ............................................................................................................................................................................................. 26 Part G – Evaluating Income ....................................................................................................................................................................................... 35 Part H – Asset Assessment ....................................................................................................................................................................................... 59 Part I – Liability & Debt Analysis ................................................................................................................................................................................ 67 Part J – Property Eligibility ......................................................................................................................................................................................... 73 Part K – Geographic Restrictions ............................................................................................................................................................................... 83 Part L – Disaster Policy ............................................................................................................................................................................................. 85 Part M – Mortgage Insurance (UFMIP & Annual Premium) ........................................................................................................................................ 86 Part N – Property Insurance ...................................................................................................................................................................................... 87 Part O – Title Insurance ............................................................................................................................................................................................. 94 Part P – Departing Residence Policy ......................................................................................................................................................................... 96 Part Q – Transaction Types (Purchase and Refinances) ........................................................................................................................................... 97 Part R – Secondary Financing ................................................................................................................................................................................. 118 Part S – Interested Party Contributions (IPCs) / Financing Concessions / Sales Concessions ................................................................................ 119 Part X - Links to CMG Policies, FHA Resources, Etc. .............................................................................................................................................. 120 Part Y – Product Codes / Terms / ARM Information ................................................................................................................................................. 121 Part Z - Recent Updates / 90 Day Lookback ............................................................................................................................................................ 123 CMG Wholesale & Select Partner- FHA Loan Matrix & Guidelines Handbook 4000.1: Updated 03/05/2019 Click Here for Quicklink back to Table of Contents Loan Matrix – LTV/CLTV & Minimum Credit Score Standard Loan Amounts & High Balance FHA Loans No Cash Out Refinances Purchase Cash Out Rate and Term Simple Refinance Streamline Refinance 600 Standard loan 600 Standard loan 600 Standard loan amounts 2 600 Standard loan amounts 2 600 Standard loan amounts 2 FICO amounts 2 amounts 2 620 High Balance 4 620 High Balance 4 620 High Balance 4 620 High Balance 4 620 High Balance 4 LTV 96.50% 5 85.00% 97.75%3 97.75%3 N/A3 CLTV 96.50% 1 85.00% 97.75% 97.75% none 1. 110% CLTV permitted with the use of eligible DPA, not to exceed 100% "Cost to Acquire" 2. Credit scores from 600-619 permitted subject to meeting all the following requirements: AUS approval required (except Streamlines). Manual downgrades are allowed with Approve/eligible findings. "Refer" findings not permitted. Non-traditional credit is not permitted except as outline in Credit Depth Policy. SFR/Cond/PUD only (no multi units) Standard loan amounts only. High balance loan amounts not permitted Cash out transactions require a second signature and the following: Max DTI 43%, No open collections/judgments, housing payment history required 0x30x24. For all transactions, borrowers must have a verifiable housing history or must demonstrate a regular savings pattern which demonstrates their financial maturity or require a CMG Level II second signature. DTI: up to 43% no comp factors required, 45% with 1 HUD comp, 50% with 2 HUD comp factors - 50% max no exceptions (not applicable to non-credit qualifying streamlines). Note: HUD Compensating factors can be located in Part F-8 – Manual Underwriting and full details are in HUD Handbook 4000.1 Chapter 5. 3. FHA Maximum Loan Amount Calculation applies. HUD approved secondary residences are subject to additional restrictions. 4. All High Balance Loans: Maximum 0x30x12 mortgage history and must score Approve/Eligible (Streamlines okay to be manually underwritten: HPH applies) 5. Refer to CMG’s FHA 203(h) Disaster Relief Guideline Addendum for transactions eligible up to 100% LTV. www.cmgfi.com Information in these guidelines is for credit policy guidance only and is not a complete representation of CMG Financial (NMLS #1820) Lending Policies. Information is accurate as of the date of publishing and is subject to change without notice. The Guidelines outlined apply to Agency loans submitted to TOTAL Scorecard. In addition to applying these CMG-specific overlays, all loans submitted to TOTAL Scorecard must comply with the AUS Findings and FHA/Ginnie Mae requirements. To verify our state licenses, please log onto the following website: http://www.cmgfi.com/licensing.php and www.nmlsconsumeracces.org P a g e | 2 CMG Wholesale & Select Partner- FHA Loan Matrix & Guidelines Handbook 4000.1: Updated 03/05/2019 Click Here for Quicklink back to Table of Contents Program Details, Highlights and Overlays All CMG Financial Guidelines will follow FHA/Ginnie Mae Guidelines (the HUD Handbook) in addition to CMG Financial overlays, when applicable. Topic Details / Highlights / Overlays Fixed: 15, 20, 25 and 30 year; ARM: 5/1 Arm, Margin 2%, Caps 1/1/5, Index based 1 Yr T-Bill (per WSJ) Good Neighbor Next Door eligible for 15 & 30 year terms only. HUD REO w/ $100 Down eligible for 15 & 30 year terms only. Eligible Terms Note: Non-owner occupied Properties and HUD-approved Secondary Residences are only eligible for Streamline Refinancing into a fixed rate Mortgage. Refer to Part Y – Product Codes, Terms, ARM Information for additional information. Purchase, Rate & Term Refinance, Cash-out Refinance, Simple Refinance and Streamline Refinances permitted. Eligible A Net Tangible Benefit Worksheet must be completed on all refinance transactions. Section 203(h) transactions eligible as noted in CMG’s FHA 203(h) Disaster Relief Guideline Addendum. Transactions HUD REO Transactions permitted, including $100 Down, HUD Repo with Repair Escrow, and Good Neighbor Next Door. Refer to Part Q – Transaction Types – Purchase transactions for additional details based on transaction type. Tax and Insurance escrows are required on all FHA loans. Effective on loans closed on or after January 1, 2016 that require flood insurance: the premiums related to the flood insurance must be escrowed
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