AIG Investments Jumbo Underwriting Guidelines December 20, 2019 These AIG Investments Jumbo Underwriting Guidelines (Exhibit A-2) are dated December 20, 2019. The Underwriting Guidelines may be updated or modified from time to time. AIG Investments believes the information contained in this document relating to state laws and third party requirements to be accurate as of January 1, 2020. However, this information is provided for informational purposes only and may change at any time without notice. AIG Investments is providing this information without any warranties, express or implied. © 2019 AIG Investments. All Rights Reserved. AIG Investments is an affiliate of American International Group, Inc. ("AIG”). AIG Investments is the program administrator for this program and not the purchaser of the loan. Please refer to the AIG Investments Correspondent Seller's Guide for additional information regarding the relationship between the parties. MC-2-A987C-1016 Table of Contents Table of Contents ..................................................................................................................................................................................................................... 1 Jumbo Loan Underwriting Introduction ................................................................................................................................................................................. 5 Chapter One: General ...................................................................................................................................................................................................... 6 Section 1.01 Matrices .......................................................................................................................................................................................... 6 Section 1.02 Eligibility .......................................................................................................................................................................................... 9 Section 1.03 Loan Application ........................................................................................................................................................................... 10 Section 1.04 Identity Verification ....................................................................................................................................................................... 10 Section 1.05 Social Security Number Validations ............................................................................................................................................. 10 Section 1.06 Electronically Signed Documentation ........................................................................................................................................... 10 Section 1.07 Miscellaneous Closing and Servicing Procedures ....................................................................................................................... 11 Section 1.08 Escrows/Impounds ....................................................................................................................................................................... 12 Section 1.09 Escrow/Impound Waiver ............................................................................................................................................................... 12 Section 1.10 Fraud Reports ............................................................................................................................................................................... 12 Chapter Two: Transaction ............................................................................................................................................................................................. 13 Section 2.01 Occupancy Type ........................................................................................................................................................................... 13 Section 2.02 Loan Purpose ............................................................................................................................................................................... 13 Section 2.03 Purchase Mortgage Loan Transactions ....................................................................................................................................... 13 Section 2.04 Refinance Mortgage Transactions ............................................................................................................................................... 14 Section 2.05 Refinance of a Home Improvement or Renovation Loan ............................................................................................................. 16 Section 2.06 Homes Recently Acquired or Listed For Sale .............................................................................................................................. 17 Section 2.07 First-Time Home Buyer ................................................................................................................................................................ 17 Section 2.08 Delayed Financing ........................................................................................................................................................................ 17 Section 2.09 Third Party Originations (TPO) ..................................................................................................................................................... 17 Section 2.10 Subordinate Financing .................................................................................................................................................................. 17 Section 2.11 Multiple Properties Financed/Owned ........................................................................................................................................... 18 Section 2.12 Ineligible Transaction Types ......................................................................................................................................................... 19 Section 2.13 Maximum Loan to Value / High Loan to Value (LTV/HCLTV) ...................................................................................................... 19 Section 2.14 Determining Amount to be Financed ............................................................................................................................................ 19 Section 2.15 Determining Value ........................................................................................................................................................................ 19 Section 2.16 CLTV / HCLTV .............................................................................................................................................................................. 19 Section 2.17 Treatment of Auctioneer Fees for LTV and HCLTV Purposes ..................................................................................................... 19 Section 2.18 Interested Party Contributions (IPCs) ........................................................................................................................................... 20 Section 2.19 Monthly Housing Expense ............................................................................................................................................................ 21 Section 2.20 CEMA Loans ................................................................................................................................................................................ 21 Section 2.21 Non-Arm’s-Length Transactions ................................................................................................................................................... 21 Chapter Three: Property ................................................................................................................................................................................................... 22 AIG Investments Jumbo Underwriting Guidelines (effective January 1, 2020) Page 1 Section 3.01 Eligible Property Types ................................................................................................................................................................. 22 Section 3.02 Ineligible Property Types .............................................................................................................................................................. 25 Section 3.03 Environmental Hazard Assessment ............................................................................................................................................. 25 Section 3.04 Hazard and Flood Insurance Requirements ................................................................................................................................. 25 Section 3.05 HOA Assessment Liens / Super Liens ......................................................................................................................................... 25 Section 3.06 Multiple Parcels ............................................................................................................................................................................ 25 Section 3.07 Rural Properties ...........................................................................................................................................................................