Purchase and Rate/Term Refinance Cash -Out Refinance ...

[Pages:43]NEWPORT NON-QM MATRIX

Last Updated March 23, 2020

Credit Grade Mortgage History Minimum Credit Score

720

Purchase and Rate/Term Refinance

Grade A+

0x30x12, 0x60x24

Full

LTV/CLTV

Loan Amount

65

$2.00M

Cash-Out Refinance

Grade A+

0x30x12, 0x60x24

Full

LTV/CLTV

Loan Amount

65

$2.00M

720

80

700

80

680

80

660

80

640

80

620

80

600

N/A

Doc Type

Full

Second Home/ Investor

70

2-4 Units2

80

2-4 Units Condo1

70

Min Loan Amt

Max Loan Amt

$1.50M

$1.50M

$1.50M

$1.50M

$1.50M

$1.50M

N/A

Other LTV Caps

Alt Doc Reduced

N/A

N/A

N/A

N/A

N/A

N/A

80

$1.50M

80

$1.50M

80

$1.50M

75

$1.50M

75

$1.50M

70

$1.50M

N/A

N/A

Other LTV Caps

Full

Alt Doc

Reduced

70

N/A

N/A

75

N/A

N/A

65

N/A

N/A

$100,000

Credit Score >= 720: $2.00M

Credit score < 720: $1.50M

1 2-4 Units condo refer to additional restriction on page 2 2 2-4 Units family for investment is limited to 70% LTV

NOTE: Additional program overlays apply, refer to page 4

1

2-4 Units Condo Restrictions Based Guidelines Applies to Owner Occupied and Investment Transactions

Credit Score 720+ 640 620

Full Doc Qualification

Purchase and R&T

LTV/CLTV

Loan Amt Maximum

Credit Score

70

$1.5M

720+

70

$1.5M

680

65

$1.5M

640

620

Note: Investment transactions requires a minimum fico score of 680.

Cash-Out LTV/CLTV

65 65 60 55

Loan Amt Maximum $1.5M $1.5M $1.5M $1.5M

2

Mortgage History Doc Type

Credit Score 720 680 640 620

680+ 640 620

680+ 640 620 Min Loan Amount Max Loan Amount Overlays

Restrictions

Streamlined First Lien Program Income, Asset and Reserve Requirements Subject to DU Findings

PRIMARY RESIDENCE

Purchase and Rate/Term Refinance

Cash-Out Refinance

0x30 last 12 Full

LTV/CLTV 80 80 80 80

0x30 last 12 Full

LTV/CLTV 80 80 75 70

SECOND HOME AND INVESTOR

70

70

70

70

70

70

2-4 Family Excludes Condo

80

70

70

70

70

70

Minimum $100K

Maximum $1.5M

Footnote descriptions and additional program overlays apply, refer to page 4

? Product allowed: 15, 30 year Fixed or 5/1, 7/1, 10/1 Libor ARM. Interest Only offered on all ARM and Fixed products. ? FNMA DU Required. Findings allowed: Approved/Eligible, Approve/Ineligible, Ineligible findings can only be for loan amount ? Interest Only: 30-year IO qualifies over 20 years and 40-years IO qualifies over 30 years term ? Up to 50% DTI with minimum 720 fico score and LTV/CLTV 80%. ? 35% maximum DTI for Purchase and R&T 90.01-95% or Cash-out 85.01-95% ? Income, Asset and Reserve requirements subject to DU findings. ? 0x30 in past last 12 months ? 2-4 Units Condo Allowed for Primary and investment transactions. Follow FNMA condo guidelines. Further restrictions on LTV on page 4. ? Ineligible property: non-warrantable condo ? No criteria / variances outside of DU Findings or any investor exception ? Eligible transaction types: Gift of Equity, Inherited Properties, Land contracts, Lease Option to Buy, Contract of Deed ? Ineligible transaction types: construction financing but permanent end financing on construction loan is allowed ? Extenuating circumstances guidelines for derogatory credit not allowed, unable to use FNMA Code to override foreclosure and short sale findings ? Non-Permanent Resident Alien not allowed ? Restricted (RSU) income not allowed, illegal income or assets, income from a business that is state or federally illegal ? At least one of the borrower must have documented, recent, consecutive, 12-month primary housing history ? Tax liens must be paid off. IRS tax repayment plan not allowed. ? Agency Transferred appraisal allowed. No PIW allowed ? Minimum of 5% from borrower own funds regardless of LTV ? Follow FNMA guideline for maximum financed properties one borrower may own

3

Newport Streamlined restrictions continued

? Derogatory Credit- CH 7 & 11: Four years from discharge to app date; CH 13: Two years from discharge to app date or 4 years from dismissal to application date; Loss Mitigations Four years prior to app date; Foreclosure Seven (7) years from completion date to application date; Multiple bankruptcies per Fannie Mae; if a foreclosure is included in the bankruptcy, each event is tread separately to determine pricing.

? All delinquent credit that will impact title, including delinquent taxes, judgments, charge-off accounts, tax liens and mechanic's liens must be paid off prior to or at closing

? Recently listed; take application at least 6 months off the market for R&T and Cash-Out, Cash-out limited to 80% LTV ? DU Approve/Ineligible findings for Streamlined guideline cannot be for credit event. ? No extenuating circumstances allowed.

Regardless of DU Findings, the following will require 2 years of tax returns:

? Is employed by family members; ? Is employed by interested parties to the property sale or purchase; ? Receives income from temporary or periodic employment (or unemployment) or employment that is subject to time limits, such as a contract

employee or a tradesman; ? Receives income from capital gains, royalties, or other miscellaneous non-employment earnings reported on IRS Form 1099; ? Receives income that cannot otherwise be verified by an independent and knowledgeable source; ? Uses interest and dividend income to qualify; ? Uses tip income reported on IRS Form 4137 that was not reported by the employer on the W-2 to qualify;

Credit Score 720+ 640+ 620+

2-4 Units Condo Restrictions for Streamlined First Lien Matrix Applies to Owner Occupied and Investment Transactions

Full Doc Qualification

Purchase and R&T

LTV/CLTV

Loan Amt Maximum

Credit Score

70

$1.50M

720+

70

$1.50M

680+

65

$1.50M

640+

620+

Cash-Out LTV/CLTV

65 65 60 55

Loan Amt Maximum $1.50M $1.50M $1.50M $1.50M

4

Additional Guidelines Overlays for Streamlined First Lien and Full Guidelines

Second Homes / Investor (Self-Employed Borrowers Only)

? Minimum credit score of 680 required SFR, 2-4 Units, PUDs, and Warrantable Condos Only

First Time Homebuyer Guideline Overlays

? SFR, PUDs, and Warrantable Condos Only ? Owner Occupied Transactions Only ? Follows standard reserve requirements. NOTE: Reserves will be subject to DU Findings for Streamlined First Lien approval

Non-Warrantable Condos

? First Time Home Buyers Not allowed ? Purchase and R&T refinance 90% Maximum LTV/CLTV

? Cash-out refinance 75% maximum LTV/CLTV Maximum Loans to One Borrower

? Maximum Loans to One Borrower Sold to JMAC: The aggregate dollar amount of all loans sold or serviced by JMAC may not exceed $3Million. The maximum number of loans that can be submitted at one time for the same borrower is limited to 2 or up to a maximum of $3M.

? Maximum properties One Borrower May Own up to 10 Financed properties (including principal residence) and limited up to 15 total properties owned regardless if property is free and clear excludes commercial properties.

5

Program Credit Grade

Doc Expiration Mortgage/ Housing History

Minimum Credit Score Bankruptcy History1

(Multiple Bankruptcies are Ineligible)

Prior Loss Mitigation2 Foreclosure History3

Maximum DTI

Adverse Credit

Residual Income

CREDIT GRADE MATRIX Prime A+

Note: All credit documents including the appraisal must be no more than 60 days from date initially submitted to Investor.

0x30x12, 0x60x24

620 Chapter 7: 4 years from discharge date to application date. Chapter 11 and 13: 4 years from dismissal date to application date *Multiple BK's not allowed within 15 years from application date 4 years prior to application date

4 years

43% Max for LTV > 80% Up to 50% Min 720 credit score, LTV/CLTV ................
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