CMG VA Loan Matrix & Guidelines Wholesale Lending

CMG Financial, a Division of CMG Mortgage Inc. NMLS#1820 Corporate Headquarters: 3160 Crow Canyon Rd. Ste. 400, San Ramon, CA 94583

CMG VA Loan Matrix & Guidelines ? Wholesale Lending

Loan Matrix ? LTV/CLTV & Minimum Credit Score ? Purchase & Cashout ..........................................................................................2 Loan Matrix ? LTV/CLTV & Minimum Credit Score ? IRRRL..................................................................................................................4 Part A ? Borrower Eligibility ....................................................................................................................................................................9 Part B ? Property Ownership Restrictions............................................................................................................................................17 Part C ? Occupancy................................................................................................................................................................................18 Part D ? Underwriting Documentation ..................................................................................................................................................19 Part E ? Application................................................................................................................................................................................22 Part F ? Credit Analysis .........................................................................................................................................................................24 Part G ? Evaluating Income ...................................................................................................................................................................27 Part H ? Asset Assessment ...................................................................................................................................................................49 Part I ? Liability Analysis .......................................................................................................................................................................56 Part J ? Property Eligibility ....................................................................................................................................................................62 Part K ? Geographic Restrictions..........................................................................................................................................................68 Part L ? Disaster Policy..........................................................................................................................................................................69 Part M ? VA Residual Income ................................................................................................................................................................70 Part N ? Property Insurance...................................................................................................................................................................73 Part O ? Title Insurance..........................................................................................................................................................................80 Part P ? Departing Residence Policy ....................................................................................................................................................82 Part Q ? Refinance Transactions...........................................................................................................................................................83 Part R ? Secondary / Subordinate Financing........................................................................................................................................94 Part S ? Interested Party Contributions (IPCs) / Financing Concessions / Sales Concessions .......................................................96 Part T ? Funding Fee ..............................................................................................................................................................................97 Part W ? Temporary Buydowns...........................................................................................................................................................100 Part X - Links to CMG Policies, Agency Resources, Etc. ..................................................................................................................100 Part Y ? Product Codes / Terms / ARM Information ...........................................................................................................................102

Click Here for Quicklink back to Table of Contents

CMG VA Guidelines ? Wholesale/Select Partner Updated 12/7/2022

Part Z - Recent Updates / 90 Day Lookback .......................................................................................................................................103

Loan Matrix ? LTV/CLTV & Minimum Credit Score ? Purchase & Cashout

Loan Amount Loan Amounts $647,200

Loan Amounts > $647,200 to $1,200,000 Loan Amounts > $1,200,000 to $2,000,000 (3) Loan Amounts > $2,000,000 to $3,000,000 (3) Loan Amounts > $3,000,000 to $5,000,000 (3)

Purchase and Regular Refinance (Cash out ? Type I & II)

Minimum Credit Score Transaction Type & Maximum LTV (1)

600 (4)

620 680 720

Purchase 100% (depending on eligibility) Regular (Cashout) Refinance 100% (5)

760

Maximum CLTV See below (2)

1. LTV may exceed maximum (100%) by the amount of the financed funding fee on purchase transactions only (not cash out ? cash out max is 100%, including financed funding fee).

2. Simultaneous 2nd: the second mortgage loan (in conjunction with the first mortgage) may not exceed the NOV. In all cases, must have 25% guaranty/equity of the lower of Certificate of Reasonable Value/Purchase price. Refer to Part R ? Secondary Financing.

3. Loan amounts greater than $1,200,000 require the following in addition to meeting all VA requirements:

? Minimum six months reserves PITIA

? First time homebuyers not permitted

? Each applicant must have a minimum of 3 trade lines with at least 2 active trade lines (active is defined as last activity date less than or equal to 12 months from the current date) with 12 months satisfactory history on each trade line and a minimum 24 month credit file history.

4. Credit scores from 600-619 permitted subject to meeting all the following requirements:

? Underwriting: AUS approval required (except for IRRRLs). Manual downgrades are allowed with Approve/Eligible findings. "Refer" findings not permitted ? Nontraditional credit is not permitted except as outlined in Part F-3: Credit History & Credit Depth ? SFR/Condo/PUD only (no multi units) ? Gifts are allowed however: Max 31/43 ratios ? Cash out transactions require the following: Second signature, Max DTI 43%, No open collections/judgments, housing payment history required 0x30x24 ? Borrowers must have a verifiable housing history or must demonstrate a regular savings pattern which demonstrates their financial maturity ? All loans/borrower must meet VA residual income requirements and current requirements for DTI restrictions ? Max loan amount $647,200 (closed on/after Jan 1, 2022) ? See ratesheet for pricing adjustments. 5. Principal balance of new loan cannot exceed the amount on loan being refinanced for Type I Cash out Refinance & VA Recoupment requirements apply. Loan to Value is calculated as Total Loan Amount/Appraised Value and cannot exceed 100%.

See next page for LTV matrix for IRRRL transactions.



Information in these guidelines is for credit policy guidance only and is not a complete representation of CMG Financial (NMLS #1820) Lending Policies. Information is accurate as of the date of publishing and is subject to change without notice. The Guidelines outlined apply to VA loans submitted to DU/LP. In addition to applying these CMG-specific overlays, all loans submitted to DU/LP must comply with the AUS Findings and VA requirements. To verify our state licenses, please log onto the following website: and

P a ge |2

Click Here for Quicklink back to Table of Contents

CMG VA Guidelines ? Wholesale/Select Partner Updated 12/7/2022



Information in these guidelines is for credit policy guidance only and is not a complete representation of CMG Financial (NMLS #1820) Lending Policies. Information is accurate as of the date of publishing and is subject to change without notice. The Guidelines outlined apply to VA loans submitted to DU/LP. In addition to applying these CMG-specific overlays, all loans submitted to DU/LP must comply with the AUS Findings and VA requirements. To verify our state licenses, please log onto the following website: and

P a ge |3

Click Here for Quicklink back to Table of Contents

CMG VA Guidelines ? Wholesale/Select Partner Updated 12/7/2022

Loan Matrix ? LTV/CLTV & Minimum Credit Score ? IRRRL

IRRRL Transactions 1, 4

FICO

Maximum LTV/CLTV

Occupancy

Maximum Loan Amount

640 +

No Limit / No Limit 1, 2

Primary& NOO

$1,200,000

620 - 639

110% / No Limit 1, 2, 3

Primary & NOO

$1,200,000

600 - 619

110% / No Limit 1, 2, 3

Primary Only

$647,200 (closed on/after Jan 1, 2022)

1. An appraisal valuation product not required unless discount points are charged on a Fixed-to-ARM IRRRL If discount points are charged, additional requirements may apply. Refer to section Q-4 IRRRL Transactions > QM - NTB - Recoupment - Seasoning section. NOTE: When eligible without a valuation product the "value" for LTV purposes is based on the total loan amount as calculated by the VA Form 26-8923 IRRRL Worksheet. If a valuation product is obtained that value is to be used as a current market value.

2. All IRRRLS require VVOE. Refer to VVOE section.

3. When a valuation product is obtained for any reason, LTV is calculated by dividing the base loan amount (Line 16 on the IRRRL worksheet) by the appraised/AVM value.

4. Refer to Part Q ? Transaction Types ? IRRRL Transactions



Information in these guidelines is for credit policy guidance only and is not a complete representation of CMG Financial (NMLS #1820) Lending Policies. Information is accurate as of the date of publishing and is subject to change without notice. The Guidelines outlined apply to VA loans submitted to DU/LP. In addition to applying these CMG-specific overlays, all loans submitted to DU/LP must comply with the AUS Findings and VA requirements. To verify our state licenses, please log onto the following website: and

P a ge |4

Click Here for Quicklink back to Table of Contents

CMG VA Guidelines ? Wholesale/Select Partner Updated 12/7/2022

Category Eligible Transactions

Ineligible Transactions

VA IRRRL Valuation Requirements

Program Details, Highlights & CMG Minimum Credit Standards

Purchase and Refinance. Note: With the exception of VA-to-VA Streamlines (IRRRLs), the VA defines all refinances to be cash-out. Each cash-out transaction will be classified as a Type I or Type II Cash-out Refinance. ? Energy Efficient Mortgages (EEMs) are not eligible. ? Texas 50(a)(6) loans ? VA Regular Refinance loans not meeting GNMA seasoning requirements are ineligible. Exceptions to seasoning requirements for either Regular Refinances or IRRRLs are not permitted. ? Mortgage Credit Certificates (MCCs) are not eligible. If discount points are charged on a Fixed-to-ARM IRRRL, additional VA requirements apply. Refer to section Q-4 IRRRL Transactions > QM - NTB - Recoupment - Seasoning section.

NOTE: When eligible without a valuation product the "value" for LTV purposes is based on the total loan amount as calculated by the VA Form 26-8923 IRRRL Worksheet. If a valuation product is obtained that value is to be used as a current market value and LTV restrictions noted in the matrix apply.

Minimum Loan Amount: $50,000. Maximum Loan Amount: $5,000,000 (including any Financed Funding Fee). All loans with a base loan amount exceeding conventional conforming standard loan amounts must utilize a high balance product code.

All VA loans require a 25% guaranty/equity: VA does not impose maximum statutory loan limits however, VA does publish county loans limits () to determine how much the VA will insure on certain loans. The 25% guaranty may come from the VA or Down payment or both. If VA's Insuring participation is less than 25% of the purchase price / appraisal then the borrower must bring a down payment for the difference. When LGC will not cover 25% Guaranty, a loan amount calculation worksheet must be in the file documenting that the 25% Guaranty/Equity requirement is met.

Loan Amount

For loans closed on and after January 1, 2021, the VA guaranty will be as follows:

a. Full entitlement. For loans above $144,000, the maximum amount of guaranty may not exceed 25 percent of the loan amount. b. Partial entitlement. For loans above $144,000, the maximum amount of guaranty may not exceed the lesser of 25 percent of the loan amount OR 25 percent of the Freddie Mac CLL. c. Married Veterans. When a Veteran and the Veteran's spouse, who is also a Veteran, use dual entitlement to guaranty a loan above $144,000, the maximum amount of guaranty shall be 25 percent of the loan amount so long as one of the Veterans has full entitlement. VA will charge entitlement for married Veterans according to their preference. If both Veterans have partial entitlement, the maximum amount of guaranty may not exceed the lesser of 25 percent of the loan amount OR 25 percent of the Freddie Mac CLL. d. Joint Loans. When more than one Veteran (Vet-Vet) seeks to use their entitlement on a loan above $144,000, if at least one Veteran3 has partial entitlement, the maximum amount of guaranty may not exceed the lesser of 25 percent of the loan amount OR 25 percent of the Freddie Mac CLL. VA will charge entitlement to each Veteran equally. However, unequal charge of



Information in these guidelines is for credit policy guidance only and is not a complete representation of CMG Financial (NMLS #1820) Lending Policies. Information is accurate as of the date of publishing and is subject to change without notice. The Guidelines outlined apply to VA loans submitted to DU/LP. In addition to applying these CMG-specific overlays, all loans submitted to DU/LP must comply with the AUS Findings and VA requirements. To verify our state licenses, please log onto the following website: and

P a ge |5

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download