Conventional Underwriting Guidelines Contents General...........................................................................................................................................................8 Temporary COVID Guidelines ........................................................................................................................8 Lending Policy..............................................................................................................................................9 Product Descriptions And Rate Sheets.............................................................................................................9 Loan Registration/Lock ..................................................................................................................................9 Present Address ....................................................................................................................................9 Purchase Commitments ..........................................................................................................................9 Subject Address Change.........................................................................................................................9 Loan Disclosures/Submissions .......................................................................................................................9 Adjustable Rate Mortgage (ARM) Disclosure..............................................................................................9 Electronic Signed Application Disclosures..................................................................................................9 Adverse Action .............................................................................................................................................9 Ineligible Participants............................................................................................................................ 10 Exc eptions................................................................................................................................................. 10 Loan Verifications ....................................................................................................................................... 10 Liens ........................................................................................................................................................ 10 Ass ess ments....................................................................................................................................... 10 Transfer Fee Covenants ....................................................................................................................... 10 Document Expiration ................................................................................................................................... 10 Escrow/Impound Funds ............................................................................................................................... 11 Escrow/Impound Waiver .............................................................................................................................. 11 Escrow Waiver Limitations .................................................................................................................... 11 Multiple Loans To The Same Borrower .......................................................................................................... 11 Number Of Financed Properties .................................................................................................................... 11 Fannie Mae......................................................................................................................................... 11 Freddie Mac ........................................................................................................................................ 12 Power Of Attorney ...................................................................................................................................... 12 Short Sale Fees Paid By The Borrower .......................................................................................................... 13 A sset s .......................................................................................................................................................... 14 Ass et Doc umentation .................................................................................................................................. 14 Bank Printouts ..................................................................................................................................... 14 Truncated Asset Account Numbers......................................................................................................... 15 Verification Of Deposit Form .................................................................................................................. 15 Limited Funds to Close- Freddie Mac ...................................................................................................... 15 Asset Types............................................................................................................................................... 15 Business Assets .................................................................................................................................. 15 Cash-On-Hand .................................................................................................................................... 16 Depository Accounts ............................................................................................................................ 16 Individual Development Accounts (IDA) ................................................................................................... 16 Life Insurance Net Cash Value............................................................................................................... 17 Pooled Savings (Community Savings Funds) ........................................................................................... 17 Retirement Accounts ............................................................................................................................ 17 Stocks, Bonds And Mutual Funds ........................................................................................................... 17 Trust Accounts .................................................................................................................................... 18 Borrowed Funds ......................................................................................................................................... 18 Borrowed Funds Secured By An Asset .................................................................................................... 18 Bridge Or Swing Loans ......................................................................................................................... 18 Credit Card Financing........................................................................................................................... 19 VI. Underwriting Guidelines 1 of 150 09/20/2021 Return to Menu Conventional Underwriting Guidelines Disaster Relief Grant Or Loan ................................................................................................................ 19 Employer Assistance ............................................................................................................................ 19 Personal Unsecured Loans ................................................................................................................... 21 Small Business Administration (SBA) loans and Grants under COVID-19 ..................................................... 21 Contributions by Interested Parties ................................................................................................................ 21 Corporate Reloc ations .......................................................................................................................... 21 Down Payment Assistance Programs...................................................................................................... 22 Interested Party Contributions ................................................................................................................ 22 Financing Concessions ......................................................................................................................... 22 Maximum Contributions ........................................................................................................................ 23 Payment Abatements ........................................................................................................................... 23 Personal Property ................................................................................................................................ 23 Realtor Commission ............................................................................................................................. 24 Sales Conc ess ions............................................................................................................................... 24 Undisclosed Seller Contributions ............................................................................................................ 24 Credits .....................................................................................................................................................