Correspondent Lending Agency Overlays Matrix SunTrust Mortgage, Inc. Agency Overlays – as of January 30, 2015 Agency Plus DU Standard Agency LP Overlay Description Texas Cash-Out Refi 50(a)(6) - DU Topic Products Standard Agency DU In order to mitigate the risk on the loans we purchase, SunTrust Mortgage has overlays in our guidelines in addition to Agency investor (i.e., Fannie Mae and Freddie Mac) requirements. This summary of overlays is being provided as a reference tool for AUS (DU and LP) processed loans; it is not intended to replace our detailed product guideline documents. An “X” under a product column indicates that the overlay applies for that product. For complete product guidelines and for overlays (denoted by an underline) that apply for traditionally underwritten (i.e., non-AUS) loan transactions, please refer to the applicable product description on the STMPartners.com website. Age of Appraisal Documentation For new construction and existing properties, the appraisal report cannot be more than 120 days old as of the date of the note and mortgage. See the “Appraisal Update” topic in this matrix for additional information. X X X Age of Credit Documentation For all mortgage loans (existing and new construction), credit documentation (credit reports and employment, income, and asset documentation) must be dated no more than 120 days as of the note date). X X X Alimony, Child Support, and Maintenance Payments Appraisal Update Voluntary payments (with more than 10 months of payments remaining) must be included in the borrower’s monthly debt payment. X X X The appraisal update must occur within the 120 days that precede the date of the note and mortgage. X X X X X AUS Eligibility X An appraisal update reported on Form 442, Appraisal Update and/or Completion Report or reported on a new appraisal based on an exterior only inspection must at a minimum, have a photograph of the front of the subject property. X A-minus transactions are not eligible. X LP processing is not eligible. Construction-Lending: See the “Construction Lending: Single-Closings” and “Construction-Lending TwoClosings” topics in this matrix for additional information regarding LP processing. Cash Reserve Requirements Standard Agency - 2-4 unit Primary Residences: 6 months PITIA reserves (must be manually calculated outside of DU) X X Agency Plus – 1-2 Unit Primary Residences: 6 months PITIA reserves (must be manually calculated outside of DU) Standard Agency and Agency Plus - Second Homes: 2 months PITIA reserves (must be manually calculated outside of DU) X Standard Agency - 1-4 Unit Investment Properties: 6 months PITIA reserves (must be manually calculated outside of DU) X X X Agency Plus - 1 Unit Investment Properties: 6 months PITIA reserves (must be manually calculated outside of DU) X Construction-Lending: Single-Closings Not eligible for LP. Construction-Lending: Two-Closings Continuity of Obligation Not eligible for LP. Co-Signed Debt The primary obligor should have been making payments on the debt for at least 12 months. X Co-Signer Co-signers/guarantors are not eligible. X Court Assigned Debt Documentation must be provided on any transfer of ownership (if applicable). X X X Credit History Bankruptcy / Foreclosure: For loans with a bankruptcy or foreclosure that has not cleared the waiting period as of the credit report date, the loan may not be resubmitted to DU after closing to obtain an "Approve/Eligible." X X X All borrowers must have at least one credit score. X X X X Standard Agency - Primary Residences Purchase and Limited Cash-Out Refinance: minimum 640 credit score Cash-Out Refinance: minimum 660 credit score X X Standard Agency – Second Homes: Purchase and Limited Cash-Out Refinances: minimum 640 credit score for LTVs </= 80% minimum 660 credit score for LTVs > 80% Cash-Out Refinance: minimum 660 credit score X X Standard Agency - Investment Properties: Purchase: minimum 640 credit score for LTVs </= 80% minimum 660 credit score for LTVs > 80% Limited Cash-Out Refinances: minimum 640 credit score Cash-Out Refinance: minimum 660 credit score X X Credit Score Requirements X Log homes are not eligible. X X X Non-AUS guidelines apply. Refer to the continuity of obligation guidelines outlined in the applicable guideline document for additional information. X X X X Agency Plus - Primary Residences: minimum 640 credit score for 1-unit, purchase and limited cash-out refinance transactions minimum 660 credit score for the following: 1-unit, cash-out refinance transactions 2-units (all transactions) X Agency Plus - Second Home and Investment Properties: minimum 740 credit score (all transactions) X Texas Cash-Out Refinance: minimum 660 credit score Page 1 of 3 Last Revision Date: 01/30/2015 (Correspondent) X X Correspondent Lending Agency Overlays Matrix DU Property Inspection Waiver (PIW) If the transaction is eligible for a PIW, the PIW must be exercised, regardless if geographic restrictions apply and/or an appraisal has been ordered. X Employer Assistance If the financing terms provide for the employer to require full repayment of the debt if the borrower’s employment is terminated (either voluntarily or involuntarily) before the maturity date of the subordinate financing, the borrower must have sufficient assets to pay off the outstanding balance of the employer subordinate financing in addition to the required funds to complete the transaction. If this requirement is not met, the employer subordinate financing is not eligible. X Employment Start Date Salaried or Hourly Wage Earner: Borrowers must start their new employment before closing. X Escrow Waivers Escrow waivers are only permitted on loans with LTVs 80.00% or less (unless a higher LTV is permitted by state law). X X X Leasehold estate ground rent, when the ground lease agreement is in the name of the borrower, is not eligible for an escrow waiver. X X X Loans secured by investment properties are not eligible for an escrow waiver. X X X Flood Insurance: NonResidential Detached Structures Geographic Restrictions If detached structure is attached to the land and serves as part of the security for the mortgage, flood insurance is required for the detached structure. X X X X X Higher Priced Covered Transactions SunTrust Mortgage will not purchase or fund loans for the purchase or refinance of a second home or cash out refinances for investment properties that fail the HPCT test. X X Income Documentation LP Streamlined Accept Documentation: For the following types of income/employment, obtain the most recent two years of signed federal tax returns filed with the IRS: clients employed by a family member, the property seller, or real estate broker; contracting income; self-employed income (soleproprietor, s-corporation, partnership, corporation). Mortgage Credit Certificates (MCCs) are not eligible. Individual Taxpayer Identification Number Interested Party Contribution An individual taxpayer identification number is not allowed in lieu of a valid SSN. The calculation to determine the maximum allowable interested party contribution is based on the lesser of the sales price or appraised value of the subject property. X Inter Vivos (Living) Trust Institutional trustees are not permitted. X X X X X X X X X X X Fixed Rate, 2-unit, Purchase and Limited Cash-Out Refinance: max 80% LTV/TLTV/HTLTV X X X X Fixed Rate and ARM: 3-4 units, Purchase and Limited Cash-Out Refinance: Not eligible X ARM, 1-unit, Purchase and Limited Cash-Out Refinance: max 90% LTV/TLTV/HTLTV X ARM, 2-unit, Purchase and Limited Cash-Out Refinance: max 75% LTV/TLTV/HTLTV X ARM, 3-4 units, Purchase and Limited Cash-Out Refinance: max 65% LTV/TLTV/HTLTV X ARM, 1-unit, Cash-Out Refinance: max 75% LTV/TLTV/HTLTV X ARM, 2-4 units, Cash-Out Refinance: max 65% LTV/TLTV/HTLTV Maximum Number of Financed Properties and Borrower Exposure X X X ARM, 1-unit, Purchase and Limited Cash-Out Refinance: max 80% LTV/TLTV/HTLTV X ARM, 1-unit, Cash-Out Refinance: max 65% LTV/TLTV/HTLTV X Fixed Rate and ARM: 2-4 units, Purchase and Limited Cash-Out Refinance: Not eligible Fixed Rate and ARM, 3-4 units, Cash-Out Refinance: Not eligible X X Fixed Rate, 1-unit, Purchase and Limited Cash-Out Refinance: max 95% LTV/TLTV/HTLTV Fixed Rate, 3-4 units, Purchase and Limited Cash-Out Refinance: max 75% LTV/TLTV/HTLTV Maximum LTV/TLTV/HTLTV (Investment Property) X X All trustees must sign the note, security instrument, and associated riders. Florida: Fixed Rate, 1-unit, Purchase and Limited Cash-Out Refinance: max 80% LTV/TLTV/HTLTV. X X Income Type Maximum LTV/TLTV/HTLTV (Second Home) X X Michigan, Nevada, New Jersey: See the “Maximum LTV/TLTV/HTLTV (Primary Residence)” topic in this matrix. Michigan, Nevada, New Jersey: Fixed Rate, 1-unit, Purchase and Limited Cash-Out Refinance: max 90% LTV/TLTV/HTLTV. X X Florida: See the “Maximum LTV/TLTV/HTLTV (Second Home)” topic in this matrix. Maximum LTV/TLTV/HTLTV (Primary Residence) Texas Cash-Out Refi 50(a)(6) - DU Agency Plus DU Overlay Description Standard Agency LP Topic Standard Agency DU Products X X X ARM, 1-unit, Purchase: max 75% LTV/TLTV/HTLTV X ARM, 1-unit, Limited Cash-Out Refinance: max 65% LTV/TLTV/HTLTV X ARM, 2-4 units, Purchase and Limited Cash-Out Refinance: max 65% LTV/TLTV/HTLTV X ARM, 1-unit, Cash-Out Refinance: max 65% LTV/TLTV/HTLTV X ARM, 2-unit, Cash-Out Refinance: max 60% LTV/TLTV/HTLTV X Borrower Exposure - Primary Residence, Second Home, and Investment Properties: Maximum total exposure of $2.5 million dollars on all SunTrust balance sheet (Portfolio) loans. No more than four real estate residential secured loans on the STI balance sheet (Portfolio). Only one of the four loans on the STI balance sheet can be for an investment property. X X X X Primary Residences: Maximum number of financed properties is four. X X X X Page 2 of 3 Last Revision Date: 01/30/2015 (Correspondent) Correspondent Lending Agency Overlays Matrix Maximum Number of Financed Properties and Borrower Exposure, (continued) Non-Permanent Resident Aliens Second Home & Investment Properties: Maximum number of financed properties is four. Power of Attorney X Second home and investment property transactions are not eligible. X X X Cash-Out Refinance transactions are not eligible. X X X A power of attorney may not be used to facilitate a closing via a recorded, interactive session conducted via the Internet. X X X X Properties Listed for Sale Non-AUS guidelines apply. Refer to the properties listed for sale guidelines outlined in the applicable guideline document for additional information. X Property Assessed Clean Energy (PACE) Loans PACE loans are not eligible for subordination X All PACE loans must be paid off as a condition to obtaining a new mortgage loan. X Proceeds of a standard limited cash-out refinance may not be used to pay off a PACE loan. Group homes are not eligible. X X X X X X X X X Manufactured housing is not eligible. X X Modular homes must follow non-AUS guidelines. Refer to the modular home guidelines outlined in the applicable guideline document for additional information X On-frame modular construction is not eligible. X Qualifying Rate For 7/1 and 10/1 ARM transactions, including 7/1 and 10/1 ARMs subject to a temporary buydown, borrowers qualify at the greater of the note rate or the fully indexed (index + margin) rate. X Qualifying Ratio Maximum 50% DTI X DTIs 45.01-50% are permitted when all borrowers have a minimum 720 credit score AND a maximum 80% LTV. If these requirements are not met, the maximum DTI is 45%. X X For all transactions (regardless of LTV): maximum 45% DTI Secondary Financing X X Leasehold estate transactions are not eligible. Restructured Loans Texas Cash-Out Refi 50(a)(6) - DU X Cash-out refinance transactions are not allowed. Property Types Agency Plus DU Overlay Description Standard Agency LP Topic Standard Agency DU Products X X Transactions that involve refinancing of a non-STM mortgage that has previously been restructured are not eligible for refinancing with SunTrust Mortgage. X STM to STM loans: SunTrust does not permit originations of loans with a previously restructured mortgage in the credit history. X X X X X X Community Second mortgages are not eligible. X X Housing Finance Agency (HFA) secondary financing is not eligible. X X Secondary financing (new or existing) which imposes a penalty for prepayment is only acceptable if certain requirements are met. Refer to the secondary financing guidelines outlined in the applicable guideline document for additional information. X Subordinate financing (closed-end second or HELOC) that has a balloon payment due less than five years after the note date of the first lien is acceptable if the borrower has assets available to pay off the outstanding balance of the subordinate financing in addition to the required funds to complete the transaction. Actual payoff of the account is not required. X Spousal/Partner Buy-Out A spousal/partner buy-out transaction is not eligible. X Temporary Buydowns Temporary buydowns are not eligible. X X Borrower-paid temporary buydowns are not eligible. Page 3 of 3 Last Revision Date: 01/30/2015 (Correspondent) X X X
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