Prime Ascent and Credit Ascent Loan Eligibility Criteria Standard Doc and Alt Doc Published & Effective as of 8/12/2019 8/12/2019 CONTENTS Section 1.0 - PROGRAMS ...................................................................................................................................................................... 5 1.1 - Overview .................................................................................................................................................................................... 5 1.2 - Eligible Products ........................................................................................................................................................................ 5 1.3 - Interest Only Restrictions .......................................................................................................................................................... 6 1.4 - Underwriting ............................................................................................................................................................................... 6 1.5 - Loan Amounts ............................................................................................................................................................................. 6 1.6 - Minimum Credit Score .............................................................................................................................................................. 7 1.7 - Maximum LTV/CLTV ................................................................................................................................................................. 7 1.8 - Interested Party Contributions (Seller Concessions) ........................................................................................................... 7 1.9 - Escrows - Impound Accounts .................................................................................................................................................... 7 1.10 - Secondary Financing .............................................................................................................................................................. 7 1.11 - Seasoning (Loan and Document) ......................................................................................................................................... 8 1.12 - Fees............................................................................................................................................................................................ 8 1.13 - Borrower Statement Of Occupancy ................................................................................................................................... 8 1.14 - Automatic Payment Authorization (ACH) ........................................................................................................................... 8 1.15 – Borrower Contact Consent Form ......................................................................................................................................... 9 1.16 - Ability to Repay/ Qualified Mortgage Rule ................................................................................................................... 9 1.17 - Prepayment Penalty .............................................................................................................................................................. 9 1.18 - Alternative Loan Review/AUS .......................................................................................................................................... 10 1.19 - State and Federal High Cost Loans ................................................................................................................................. 10 1.20 - Listing Seasoning .................................................................................................................................................................. 10 1.21 - Premium Recapture ............................................................................................................................................................. 10 1.22 - Early Payment Default (EPD) ............................................................................................................................................ 10 1.23 – Documentation ..................................................................................................................................................................... 10 1.24 – Interest Credit ...................................................................................................................................................................... 10 1.25 – Assumability ......................................................................................................................................................................... 11 1.26 Property Insurance ................................................................................................................................................................. 11 1.261 - Coverage Requirements.............................................................................................................................................. 11 1.262 - Determining the Amount of Required Property Insurance ................................................................................... 11 Section 2.0 - PROPERTY ELIGIBILITY ................................................................................................................................................. 12 2.1 - Appraisals ................................................................................................................................................................................ 12 2.11 - Appraisal Requirements ................................................................................................................................................ 12 2.12 - Appraisal Review Requirements .................................................................................................................................. 14 2.13 - Minimum Property Requirements ................................................................................................................................. 14 2.14 - Rural Property ................................................................................................................................................................. 15 2.15 - Personal Property ........................................................................................................................................................... 15 2.16 – Escrow Holdbacks ........................................................................................................................................................... 15 2.17 – Declining Markets ........................................................................................................................................................... 15 2.2 - Ineligible Property Types: .................................................................................................................................................... 15 2.3 - Acreage Limitations ............................................................................................................................................................... 16 2.4 - State Eligibility........................................................................................................................................................................ 16 2.5 - Property Flipping ................................................................................................................................................................... 16 2.6 - Title Vesting & Ownership .................................................................................................................................................... 17 2.61 - Examples - Signature Requirements: ......................................................................................................................... 18 2.7 - Leasehold properties ............................................................................................................................................................. 19 2.8 - Texas Properties ..................................................................................................................................................................... 19 2.81 - Texas Purchase Loan ...................................................................................................................................................... 19 2.82 – Texas Rate/Term Loan .................................................................................................................................................. 19 i 8/12/2019 2.83 - Non-Texas Section 50(a)(6) loan ................................................................................................................................ 19 2.84 - TEXAS HOME EQUITY LOANS ..................................................................................................................................... 20 2.9 - Limitations on Financed Properties ..................................................................................................................................... 26 2.10 - Disaster Areas .....................................................................................................................................................................