NON-QM ENHANCEMENTS

GUIDELINE UPDATES

• TRADELINES

  • Provided the primary wage earner has three credit scores, the minimum tradelines are satisfied.

  • An alternative tradeline option has been added.

  • This does not apply to Foreign National or ITIN borrowers

• TAX REPAYMENT PLANS
  • Now require a minimum of two (2) timely payments
• CRYPTO CURRENCY, BITCOIN AND ETHEREUM
  • Are now elibible sources of funds
    • Note: these funds cannot be used for income under the asset utilization option
• ALT DOC 1099
  • 1099 transcript may be used in place of the 1099's
• BANK STATEMENT LOANS

  • Qualifying income is based on the calculated income (removed the comparison

    to the income on the signed 1003)

  • Clarified the need for a Borrower Prepared Business Summary when using 12 or

    24-months bank statements to qualify
• SELECT PRIME

  • Increased $3.5m loans to 75% LTV with a 720+ FICO

  • Interest Only increased to 90% with a 660 score

  • Simplified cash out tiers

  • LTV >= 70% - max $500K cash out; LTV < 70% - $1m cash out
• PRIME

  • Added a 580-619 FICO tier band

  • Interest Only increased to 90% with a 660 score

  • Simplified cash out tiers

  • LTV >= 70% - max $500K cash out; LTV < 70% - $1m cash out

• EXPANDED CREDIT

  • Interest Only increased to 85% LTV with a 660 score

  • Simplified cash out tiers

  • LTV >= 70% - max $500K cash out; LTV < 70% - $1m cash out

• DSCR

  • Increased maximum loan amount to $3.5m with a 700+ score and minimum 1.00 DSCR

  • Clarified that a credit refresh is not required prior to closing

  • Clarified that a credit inquiry explanation is not required

  • Clarified that if we’re using the 1007 to compute the DSCR, evidence of receipt

    of the rental income is not required.

  • Changed the number of months receipt of proof of rents received from 3 to 2

    months