VA Correspondent Manual - LenderLive VA Guidelines v4.0.pdfVA Correspondent Manual. 2 LenderLive Network, Inc. Proprietary and Confidential Doc. 1001 CORRESPONDENT LENDING Click here

Correspondent VA Guidelines v4.04.0

Version 4.0 - Effective 9-29-2014

VA Correspondent Manual

2

LenderLive Network, Inc. Proprietary and Confidential Doc. 1001

CORRESPONDENT LENDING

Click here to go directly to the VA Underwriting Guidelines

All items with gray shading indicates LenderLive requirements that take precedence over VAguidelines. ................................................................................................................................................. 1

Click here to go directly to the VA Underwriting Guidelines ................................................................ 1

Table of Contents4506-T ............................................................................................................................ 10

APPRAISAL ...................................................................................................................... 10

ACREAGE..................................................................................................................................... 10

APPRAISAL VALIDITY .................................................................................................................... 10

PROPERTY ADDRESSES ................................................................................................................. 11

APPRAISAL MANAGEMENT COMPANIES (A Lenderlive FHA Requirement) ...................................... 11

INTEREST RATE REDUCTION REFINANCING LOANS (IRRRL’s) ........................................................... 11

VA APPRAISER ASSIGNMENT – PURCHASE AND CASH-OUT TRANSACTIONS ONLY ............................ 12

APPRAISAL INVOICE ..................................................................................................................... 12

FORM REQUIREMENTS................................................................................................................. 12

PHOTOGRAPHS............................................................................................................................ 13

ASSETS............................................................................................................................ 13

EARNEST MONEY DEPOSITS.......................................................................................................... 13

LARGE DEPOSITS.......................................................................................................................... 13

SAVINGS AND CHECKING ACCOUNTS ............................................................................................ 13

PROCEEDS FROM THE SALE OF REAL ESTATE.................................................................................. 14

SALE OF A PERSONAL ASSET ......................................................................................................... 14

SAVINGS BONDS .......................................................................................................................... 14

RETIREMENT SAVINGS ................................................................................................................. 15

STOCKS AND/OR BONDS .............................................................................................................. 15

RENT CREDIT ............................................................................................................................... 15

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SWEAT EQUITY ............................................................................................................................ 15

AUS ................................................................................................................................ 15

DATA INTEGRITY .......................................................................................................................... 16

BORROWERS ................................................................................................................... 16

APPLICATION ............................................................................................................................... 16

ELIGIBLE BORROWERS.................................................................................................................. 16

INELIGIBLE BORROWERS/LOANS ................................................................................................... 17

CASH RESERVES ............................................................................................................... 17

CERTIFICATE OF ELIGIBILITY .............................................................................................. 18

ELIGIBILITY DETERMINATION ........................................................................................................ 19

OBTAINING A CERTIFICATE OF ELIGIBILITY ..................................................................................... 20

INTEREST RATE REDUCTION REFINANCING LOANS ......................................................................... 21

CERTIFICATE OF ELIGIBILITY RESOURECES ...................................................................................... 21

CLOSING COSTS ............................................................................................................... 21

ALLOWABLE CLOSING COSTS ........................................................................................................ 21

NON-ALLOWABLE BORROWER-PAID CLOSING COSTS ..................................................................... 22

CLOSING REQUIREMENTS ................................................................................................. 23

PROPERTY ADDRESSES ................................................................................................................. 23

CLOSING REQUIREMENTS............................................................................................................. 24

ESCROW STATES .......................................................................................................................... 25

NOTARY POLICY ........................................................................................................................... 26

CO-BORROWERS.............................................................................................................. 26

COMPENSATING FACTORS ................................................................................................ 26

CONDOMINIUMS ............................................................................................................. 27

CONDOMINIUM RESOURCES ........................................................................................................ 27

CONFLICT OF INTEREST .................................................................................................... 28

CREDIT HISTORY .............................................................................................................. 28

CREDIT INQUIRIES ........................................................................................................................ 28

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DEBTS EXCLUDED FROM THE CREDIT REPORT ................................................................................ 28

FORECLOSURES............................................................................................................................ 28

SHORT SALES ............................................................................................................................... 29

CHAPTER 7 BANKRUPTCIES........................................................................................................... 29

CHAPTER 13 BANKRUPTCIES ......................................................................................................... 30

CREDIT COUNSELING.................................................................................................................... 30

JUDGMENTS ................................................................................................................................ 31

DEFAULTED CAIVR NUMBERS ....................................................................................................... 31

CREDIT REPORTS.............................................................................................................. 31

AGE OF CREDIT REPORTS.............................................................................................................. 32

CREDIT SCORES................................................................................................................ 32

MEDIAN CREDIT SCORE (REPRESENTATIVE CREDIT SCORE) ............................................................. 32

MINIMUM CREDIT SCORES ........................................................................................................... 32

DECLINING MARKETS ....................................................................................................... 33

DISCLOSURES/FORMS ...................................................................................................... 33

REQUIRED DISCLOSURES AND FORMS ........................................................................................... 33

DOWN PAYMENT............................................................................................................. 33

DOWN PAYMENT ASSISTANCE .......................................................................................... 33

EMPLOYMENT/INCOME ................................................................................................... 33

INCOME DOCUMENTATION.......................................................................................................... 33

NON-MILITARY INCOME ............................................................................................................... 34

CURRENT EMPLOYMENT < 12 MONTHS ........................................................................................ 34

JOB CHANGES .............................................................................................................................. 34

AUTO ALLOWANCES..................................................................................................................... 34

DISABILITY INCOME...................................................................................................................... 35

MATERNITY LEAVE ....................................................................................................................... 35

ACTIVE-DUTY MILITARY INCOME................................................................................................... 35

COMMISSION .............................................................................................................................. 36

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EDUCATIONAL ASSISTANCE........................................................................................................... 36

NON-TAXABLE INCOME ................................................................................................................ 37

OVERTIME/BONUS/PART-TIME EMPLOYMENT/SECOND JOB .......................................................... 37

RECENTLY DISCHARGED VETERANS ............................................................................................... 37

RESERVE / NATIONAL GUARD INCOME.......................................................................................... 37

SECTION 8 HOUSING VOUCHERS ................................................................................................... 38

SELF-EMPLOYMENT ..................................................................................................................... 38

ENERGY EFFICIENT MORTGAGES/IMPROVEMENTS ............................................................. 38

ENTITLEMENT/GUARANTY ................................................................................................ 38

BASIC ENTITLEMENT .................................................................................................................... 39

ADDITIONAL OR BONUS ENTITLEMENT.......................................................................................... 39

RESTORATION OF ENTITLEMENT ................................................................................................... 39

ENTITLEMENT RESOURCES ........................................................................................................... 40

ESCROWS........................................................................................................................ 40

ESCROW HOLDBACKS ....................................................................................................... 40

BANK-OWNED PROPERTIES .......................................................................................................... 41

FUNDING FEE .................................................................................................................. 41

FUNDING FEE TABLES ................................................................................................................... 43

GEOGRAPHIC RESTRICTIONS ............................................................................................. 43

ELIGIBLE LOCATIONS .................................................................................................................... 43

COMMUNITY PROPERTY STATES ................................................................................................... 43

Local Requirements ..................................................................................................................... 44

GIFT FUNDS..................................................................................................................... 44

ELIGIBLE GIFT DONORS................................................................................................................. 44

INELIGIBLE GIFT DONORS ............................................................................................................. 44

GIFT DOCUMENTATION................................................................................................................ 44

GIFT OF EQUITY ........................................................................................................................... 45

INCOME .......................................................................................................................... 45

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INSURANCE ..................................................................................................................... 45

HAZARD INSURANCE .................................................................................................................... 45

FLOOD INSURANCE ...................................................................................................................... 45

CONDO/PUD LIABILITY INSURANCE ............................................................................................... 45

HO-6 POLICY ................................................................................................................................ 46

JOINT LOANS ................................................................................................................... 46

JOINT LOAN ELIGIBILITY/INELIGIBILITY........................................................................................... 48

JOINT LOAN RESOURCES............................................................................................................... 48

LAND CONTRACTS........................................................................................................................ 48

LIABILITIES....................................................................................................................... 49

EXCLUDED LIABILITIES .................................................................................................................. 50

LOAN PURPOSE ............................................................................................................... 50

PURCHASE................................................................................................................................... 50

CASH-OUT REFINANCE ................................................................................................................. 50

INTEREST RATE REDUCTION REFINANCING LOANS (IRRRL).............................................................. 50

LOAN TERM..................................................................................................................... 51

FIXED RATE MORTGAGES ............................................................................................................. 51

ARMS .......................................................................................................................................... 51

LTV/CLTV ........................................................................................................................ 51

PURCHASES ................................................................................................................................. 51

CASH-OUT ................................................................................................................................... 51

INTEREST RATE REDUCTION REFINANCING LOAN (IRRRL) ............................................................... 52

MANUFACTURED HOMES ................................................................................................. 52

MAXIMUM / MINIMUM LOAN AMOUNTS .......................................................................... 53

PURCHASES ................................................................................................................................. 53

CASH-OUT REFINANCES................................................................................................................ 53


LOAN AMOUNT RESOURCES ......................................................................................................... 54

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MINIMUM PROPERTY REQUIREMENTS .............................................................................. 54

PROPERTY RESOURCES ................................................................................................................. 54

MORTGAGE INSURANCE ................................................................................................... 55

MULTIPLE PROPERTIES/VA LOANS ..................................................................................... 55

MAXIMUM NUMBER OF LENDERLIVE LOANS ................................................................................. 55

NEAREST LIVING RELATIVE................................................................................................ 55

NET TANGIBLE BENEFIT .................................................................................................... 55

NEW CONSTRUCTION....................................................................................................... 56

NON-OCCUPANT CO-BORROWERS .................................................................................... 56

NOTICE OF VALUE ............................................................................................................ 56

OCCUPANCY .................................................................................................................... 57

POWER OF ATTORNEY...................................................................................................... 58

POWER OF ATTORNEY RESOURCES ............................................................................................... 59

PROPERTY ELIGIBILITY ...................................................................................................... 59

ELIGIBLE ...................................................................................................................................... 59

INELIGIBLE................................................................................................................................... 60

PROPERTY FLIPPING ......................................................................................................... 61

PROPERTY INSPECTIONS ................................................................................................... 62

TERMITE INSPECTIONS ................................................................................................................. 62

WELL INSPECTIONS ...................................................................................................................... 62

SEPTIC INSPECTIONS .................................................................................................................... 63

INSPECTION REQUIREMENTS FOR REQUIRED REPAIRS ................................................................... 63

DECLARED DISASTERS................................................................................................................... 63

DISASTER RESOURCES ...................................................................................................... 64

STATE AND LOCAL REQUIREMENTS ............................................................................................... 64

CHINESE DRYWALL....................................................................................................................... 65

PROPERTY INSPECTION RESOURCES .............................................................................................. 65

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PURCHASES / PURCHASE AGREEMENTS ............................................................................. 65

DEPARTURE OF CURRENT RESIDENCE............................................................................................ 65

QUALIFYING RATES .......................................................................................................... 65

FIXED RATE MORTGAGES ............................................................................................................. 65

ADJUSTABLE RATE MORTGAGES ................................................................................................... 66

RATIO ............................................................................................................................. 66

AUTOMATED UNDERWRITING ...................................................................................................... 67

RECENTLY LISTED PROPERTIES .......................................................................................... 67

PURCHASES ................................................................................................................................. 67


CASH-OUT REFINANCE.................................................................................................................. 68

INTEREST RATE REDUCTION REFINANCING LOANS (IRRRRL)............................................................ 68

REFINANCE TRANSACTIONS .............................................................................................. 68

CASH-OUT REFINANCE TRANSACTIONS ......................................................................................... 68


RENTAL INCOME.............................................................................................................. 72

CONVERTING EXISTING HOMES TO RENTALS ................................................................................. 72

2-4 UNIT SUBJECT PROPERTY ........................................................................................................ 72

RENTAL INCOME – INVESTMENT PROPERTIES THAT ARE NOT THE SUBJECT PROPERTY .................... 73

RESIDUAL INCOME........................................................................................................... 73

SEASONING ..................................................................................................................... 75

PURCHASES ................................................................................................................................. 75


INTEREST RATE REDUCTION REFINANCING LOANS (IRRRRL) ........................................................... 76

SELLER CONTRIBUTIONS ................................................................................................... 76

SOCIAL SECURITY VERIFICATION ........................................................................................ 76

SUBORDINATE FINANCING................................................................................................ 76

TITLE .............................................................................................................................. 78

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CASH-OUT REFINANCE TRANSACTIONS ......................................................................................... 79

ENERGY LOAN TAX ASSESSMENT PROGRAM (ELTAP) LIENS ............................................................ 79

PROPERTY ASSESSED CLEAN ENERGY (PACE) LIENS ........................................................................ 79

UNEXPIRED RIGHTS OF REDEMPTION – ALL STATES EXCEPT ALABAMA............................................ 79

AUTOMATED UNDERWRITING SYSTEMS ........................................................................................ 80

MANUAL DOWNGRADES .............................................................................................................. 80

Stacking Order................................................................................................................. 81

Stacking Order for Purchase/Cash-out Refinance Loans.................................................................. 81

Stacking Order for IRRRLs ............................................................................................................. 82

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4506-T A fully executed IRS Form 4506-T must be included in all loan files. If the 4506T transcripts do not match the borrower’s income and the borrower is a victim

of taxpayer identification theft, the following conditions must be met in order to validatethe borrower’s income:o Proof of identification theft as evidenced by one of the following: Proof ID theft was reported to and received by the IRS (IRS form 14039) OR Copy of notification from the IRS alerting the taxpayer to possible identification

thefto In addition to one of the documents above, all applicable documents below must be

provided: W2 or 1099 transcripts which match the W2 or 1099 income shown on the 1040s 1099 mortgage interest must match the reported interest on Schedule A or

Schedule E 1099G unemployment must match the reported amount of unemployment 1099 dividend and interest income must match the reported dividend and interest

Validation of prior tax year’s income (income for current year must be in line with prioryears)

APPRAISALACREAGEThe following property requirements must be met:

Acreage size must be typical for the area Properties with acreage must be residential in nature. Appraiser must clarify that

residential use is the highest and best use of the property. LenderLive requires that comparable sales be an acceptable distance from the

subject. Deviations from the standard agency guidelines must be addressed by theappraiser.

Any Income generated by the subject must be inconsequential and may not be used toqualify for the loan.

APPRAISAL VALIDITYAppraisals are valid for six months.

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PROPERTY ADDRESSESThe property addresses should be consistent throughout the file. However, abbreviation of“Street,” “Road,” etc. is acceptable, even if “Street” or “Road” is fully spelled in anotherdocument.

Use the standardized USPS address. Compare the USPS address to the legaldescription on the title commitment and use the city in the legal description if that differsfrom the USPS address

APPRAISAL MANAGEMENT COMPANIES(A Lenderlive FHA Requirement)For appraisals allowed by VA to be ordered outside the VA portal they must be ordered througha LenderLive approved Appraisal Management Company (AMC’s).

Approved AMC’s:

Streetlinks Lender Solutions

www.streetlinks.com

United Lender Servicers (ULS)

www.ULSnow.com

LenderLive Inc. reserves the right to deny individual appraisers even when they are performingservices for an approved AMC.

INTEREST RATE REDUCTION REFINANCING LOANS(IRRRL’s)

For refinances that are paying off LenderLive loans, an appraisal is not required. For refinances paying off non-LenderLive loans, a full FNMA 1004/FHLMC 70 appraisal

is required. Lender is responsible for compliance with the Appraisal Independence Regulations and

must provide the associated AIR Compliance Certification with the appraisal submission.

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VA APPRAISER ASSIGNMENT – PURCHASE AND CASH-OUTTRANSACTIONS ONLY

All appraisals for purchase or cash-out refinance transactions must be orderedelectronically through VA’s WebLGY System

All information contained in VA Case Number / Appraiser Assignment, the salesagreement, and all addendums are required

VA-approved appraisers are randomly assigned by WebLGY Case Number is assigned simultaneously with completion of appraisal order VA appraisers must provide appraisals in a timely manner VA appraiser may only be contacted for status – questions related to repair or value

must conform to the standards for appraisal independence Borrower may not pay more than the maximum appraisal or inspection fee established

by VA. Maximum appraisal and inspection fees are established by the Regional LoanCenter having jurisdiction over the property. Refer to VA Appraisal Fee Schedule andTimeliness Requirements

APPRAISAL INVOICE VA appraiser sends appraisal and invoice to the underwriting lender that ordered the

appraisal Borrowers may not pay VA appraisers directly

FORM REQUIREMENTS 1-Unit residences require Form 1004 2 to 4-Unit residences require Form 1025 Condos require Form 1073 Fannie Mae Form 1004MC or Freddie Mac Form 71 – Market Conditions Addendum is

required for all appraisals All appraisals must be Uniform Appraisal Dataset (UAD) compliant. However, due to

limitations in WebLGY, appraisals must be uploaded in PDF format and cannot beuploaded in XML formato Only closed sales may be used as comparableso The “Lender/Client” field on the appraisal must reflect the lender’s name and “VA”o The address of the lender must now be entered in the “Address” field for the lendero The “Borrower” field must reflect the name of the veteran only and not the veteran’s

spouse. The only exception is for VA Liquidation appraisals, which must reflect “N/A”in the borrower field.

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PHOTOGRAPHSPhotographs of the following rooms/characteristics are required:

Kitchen All bathrooms Main living area All physical deterioration, if applicable Examples of recent updates, such as restoration, remodeling and renovation, if

applicable

ASSETSAll funds to close, when required, must be documented from an acceptable source. Acceptablesources of funds to close and documentation requirements are described below. For AUS“approve” or “accept” responses, document to findings.

EARNEST MONEY DEPOSITSEMDs refunded to the borrower at closing must be verified with one or more of the following:

Copy of the cancelled check Bank statement or print out showing transfer of the funds to the realtor or escrow agent –

If the statement does not indicate the payee, a copy of the check is also required Money order receipts and evidence of source of funds

LARGE DEPOSITS LenderLive requires verification of any one deposit (not including payroll direct deposits)

that exceeds 25% of the total monthly gross income but not less than $1000 in onespecific account

SAVINGS AND CHECKING ACCOUNTS Funds must be verified via one or more of the following:

o VOD oro Original or certified true copies of most recent two months’ bank statements or

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o Most recent two months’ internet bank statements – must include all pertinentinformation and URL signature at top and/or bottom of document All large deposits must be verified, regardless of whether the funds are required

for closing. “Large deposits” are determined on a case-by-case basis and arenon-payroll deposits that are unusual and high for the borrower’s income andobligations. In all cases, if the source of the large deposit was a new debt, thepayment must be included in the ratios and residual income calculations.

o When one or more of the bank account owners is not a borrower on the loan, thenon- borrowing joint account owner(s) must provide a letter stating the borrower hasaccess to the funds. However, if the account is joint with a non-borrowing spouseand there are no additional joint account owners, an access letter is not required

Non-Sufficient Funds (NSFs) showing on a borrower’s bank statement(s) are generallyan indication of the borrower’s financial mismanagement and are considered a negativelayer of risk. Written explanations are required.

Overdraft protection withdrawals are generally considered a neutral factor and are notconsidered negatively. Overdraft protection funds are frequently unsecured loans orlines of credit and may not be used for the borrower’s EMD or funds to close unless theyare transferred from another asset account held by the borrower and do not constitutean unsecured loan or line of credit.

PROCEEDS FROM THE SALE OF REAL ESTATEHUD-I Settlement Statement required

SALE OF A PERSONAL ASSETThe borrower may sell a car, motorcycle, recreational vehicle, jewelry, stamp or coin or baseballcard collections, etc. All of the following documentation is required:

Evidence of borrower’s ownership Estimate of value Bill of sale Provide paper trail of funds from purchaser to borrower. (i.e. Copy of Check or Money

Order, evidence of wire transfer, etc.)

SAVINGS BONDS Provide copies of bonds indicating ownership Provide evidence of redemption value

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Provide evidence of deposit of proceeds to borrower’s bank account

RETIREMENT SAVINGS Document balances with the most recent statement Document the terms and conditions for withdrawal and/or borrowing Unless funds may be withdrawn within 30 days of request, retirement savings accounts

may not be used as reserves but may be used as a compensating factor. If funds maynot be withdrawn within 30 days of request, do not include in AUS findings

When used as reserves, 60% of the vested balance may be used

STOCKS AND/OR BONDS Provide most recent two months’ brokerage statements When funds are required for closing, proof of liquidation and evidence of deposit into a

verified account is required

RENT CREDIT Provide a copy of the rent-with-option-to-buy agreement that clearly defines the terms

and conditions, including rent credit The portion of rent credit that exceeds fair market rents for the area may be credited

toward borrower’s funds to closeo Fair market rents for the area are estimated by the appraiser. If borrower is

purchasing a home other than the home he or she is currently renting, rent creditsmay not exceed 4% of the purchase price (see Seller Contributions section)

SWEAT EQUITYNot allowed

AUSLoan Prospector or Desktop Underwriter response required for all loan types except InterestRate Reduction Refinancing Loans – Do not run IRRRL loans through automated underwriting

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DATA INTEGRITYAll information input to DU or LP must mirror the documentation in the file.

BORROWERSAPPLICATIONThe veteran must always be the primary borrower on the loan, regardless of whether incomefrom the veteran is being used to qualify

ELIGIBLE BORROWERSFor additional information, refer to VA Pamphlet 26-7, Chapter 7, Section 1 – Loans RequiringSpecial Underwriting - Joint Loans

Eligible veteran(s)o If more than one veteran’s entitlement is used and the veterans are not married to

one another, prior approval must be obtained by the VA regional loan center havingjurisdiction over the property

o If both veterans’ entitlement is used and the veterans are married to each other, loancan be underwritten by LenderLive or a VA Automatic customer

o All veterans using entitlement must occupy the property Un-remarried surviving spouse of veteran who died from service-connected injuries or

un-remarried surviving spouse of a veteran who was totally disabled at the time of deatho VA Regional Loan Center determines cause of death – see Certificate of Eligibility

Section Veteran’s spouse co-borrower

o The veteran must be the primary borrower on the loan, regardless of whether theveteran contributes income to the loan

o Veteran’s spouse is not required to be a veterano Same-sex spouses require VA’s approval. Provide the following information in the

loan file: Date and state of marriage State of residence at the time of marriage State in which the subject property is located State in which the couple currently resides Estimated closing date

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For loans underwritten by VA Automatic lenders, determination of eligibility forthe same sex spouse must be included in the file at the time of purchase

Non-veteran co-borrower who is not the veteran’s spouseo Eligible veteran must be primary borrower on the loano Additional down payment that is ≥ 25% of the non-veteran’s half of the loan is

required – Refer to VA Pamphlet 26-7, Chapter 7, Section 1 – Loans RequiringSpecial Underwriting

o Joint Loanso Prior approval by VA Regional Loan Center having jurisdiction over the property is

requiredo VA guaranty will not exceed the lesser of 25% of the veteran’s half of the loan or

veteran’s available entitlement – If veteran’s half of the loan is ≤ $144,000, bonusentitlement cannot be used, regardless of total loan amount

o Down payment plus VA guaranty must be ≥ 25% of the base loan amount, excludingthe financed funding fee

o All borrowers must occupy the propertyo Veteran’s income must be sufficient to qualify for his or her half of the loan

INELIGIBLE BORROWERS/LOANS Any borrower who does not meet the eligible borrower criteria described above Any loan having any of the following characteristics:

o One borrower is required to pay a funding fee and the other is not (If the borrower notrequired to pay the funding fee is the veteran’s spouse, the loan remains eligible)

o Two veteran borrowers are required to pay different funding feeso Refer to Joint Loan Eligibility/Ineligibility

CASH RESERVES Borrower is using rental income to qualify - Borrower’s ability to accumulate liquid assets

and the current availability of liquid assets for unplanned expenses should beconsidered in the overall credit analysiso Borrower is using rental income from multi-unit subject property to qualify – Six

months reserves from the borrower’s own funds requiredo Borrower is using rental income from investment properties that are not the subject

property to qualify – Three months reserves from the borrower’s own funds required Borrower’s debt-to-income ratio exceeds 50% - Two months reserves from the

borrower’s own funds required:o Reserves may not be gifted

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o 401k funds may be used for LenderLive’s reserve requirement. Unless funds may bewithdrawn within 30 days of request, retirement savings accounts may not be usedas reserves. If funds may not be withdrawn within 30 days of request, do not includein AUS findings

CERTIFICATE OF ELIGIBILITYA Certificate of Eligibility is required for all VA purchase and cash-out refinance transactions butis not required for VA IRRRLs. For IRRRL transactions, only a VA IRRRL case number isrequired. The following information is included on a Certificate of Eligibility:

Veteran’s full name – The veteran’s name on the Certificate of Eligibility must match theveteran’s name in WebLGY, the loan guaranty certificate and the note and mortgageo The following name discrepancies are the only acceptable variations: James Everett Brown, James E. Brown, James Brown William Smith Jr., William Smith, William R. Smith, William Ryan Smith, Jr.,

William Ryan Smith, William R. Smith, Jr.o The following name discrepancies must be resolved prior to the loan closing (this list

is not all- inclusive and name discrepancies are reviewed on a case-by-case basis): Name discrepancies due to marriage (C of E shows Mary Smith, but

documentation in WebLGY and/or the note and mortgage shows Mary Jones) Hyphenated name discrepancies (C of E shows Bill Smith, but documentation in

WebLGY and/or the note and mortgage shows Bill Smith-Jones) Middle name discrepancies (C of E shows Bill John Smith, but documentation in

WebLGY and/or the note and mortgage shows Bill Robert Smith) First name discrepancies (C of E shows Bill Smith, but documentation in

WebLGY and/or the note and mortgage shows William Smith) Last name prefix discrepancies (C of E shows Bill St. Pete, but documentation in

WebLGY and/or the note and mortgage shows Bill Stpete) Veteran’s truncated social security number Entitlement code

o 01 – World War IIo 02 – Korean Waro 03 – Post-Korean Waro 04 – Vietnam Waro 05 – Entitlement Restoredo 06 – Un-remarried Surviving Spouseo 07 – Spouse of POW/MIAo 08 – Post World War II o 09 – Post Vietnam War o 10 – Gulf Waro 11 – Selected Reserves

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Veteran’s branch of service Funding fee status – “Exempt” or “Non-Exempt” Itemized list of entitlement amounts charged to previous loans – The following

information is provided for each loan:o VA loan numbero State in which property is locatedo Total loan amounto Date of loano Entitlement amount charged

Amount of basic entitlement available Total entitlement charged to previous VA loans (includes total of all entitlement amounts

for all active VA loans) Comments stating the amount of the veteran’s disability pay, funding fee status,

restoration/non restoration of previously used entitlement and/or instructions to contactthe appropriate Regional Loan Center

ELIGIBILITY DETERMINATION Eligibility is based on the veteran’s length and type of military service. Generally

speaking, VA determines that veterans who fulfill the criteria below are eligible for theVA home loan benefit:o Veterans with two years of continuous active-duty and an honorable dischargeo Veterans with six years of service in the Selected Reserves or National Guard and

an honorable dischargeo Veterans with 90 days active-duty wartime service and an honorable dischargeo Veterans with 181 days of continuous active-duty during peacetimes listed below and

an honorable discharge: July 26, 1947 – June 26, 1950 February 1, 1955 – August 4, 1964 May 8, 1975 – August 1, 1990

o Un-remarried surviving spouse of a veteran Eligibility determined by Veterans Administration (VA) Veteran must have been totally disabled at the time of death or died on active-

duty or as a result of service-connected injuries or illness - VA determines causeof veteran’s death

For IRRRL transactions, the Certificate of Eligibility must be in the deceasedveteran’s name and social security number

For purchase and cash-out transactions, the Certificate of Eligibility must be inthe surviving spouse’s name

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OBTAINING A CERTIFICATE OF ELIGIBILITYThere are three methods for obtaining a veteran’s certificate of eligibility:

VA’s ACE (Automated Certificate of Eligibility) system – This must be attempted beforeusing the Eligibility Center or Regional Loan Centero Obtained through VA’s Website: https://vip.vba.va.gov - For a brief on-line

demonstration, refer to VA’s on-line training – Ordering a Certificate of Eligibility On-Line

VA’s Eligibility Centero 1700 Clairmont Road, Decatur, GA 30031 – 888-768-2132o Send the following documentation to the address above (faxes are not permitted): Copy of veteran’s Member 4 copy of VA Form DD-214 or other

Reservist/National Guard discharge papers Fully executed Request for Certificate of Eligibility, VA Form 26-1880 Active-duty veterans must provide a current statement of service on military

letterhead and signed by the appropriate personnel stating all of the following: Veteran’s name Veteran’s date of birth Active-duty entry date Lost time, if any and its duration Name of commanding officer providing the information

o Turn time is typically seven days from receipt of documentation to VA mailing out thecompleted Certificate of Eligibility – Turn times may increase with volume increase

o Up-load a certified true copy of the Certificate of Eligibility into the paperless file – Ablanket certified-true-copy stamp for all the items in the file is sufficient

Veteran Walk-Ino Most Regional loan centers prepare Certificates of Eligibility for walk-in veteranso Call in advance to verify Regional Loan Center accepts walk-in requests and the

office hours during which Certificates of Eligibility are preparedo Provide the following documentation to regional loan center team member (faxes are

not permitted): Copy of veteran’s Member 4 copy of VA Form DD-214 or other

Reservist/National Guard discharge papers Fully executed Request for Certificate of Eligibility, VA Form 26-1880 Active-duty veterans must provide a current statement of service on military

letterhead and signed by the appropriate personnel stating all of the following: Veteran’s name Veteran’s date of birth

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Active-duty entry date Lost time, if any and its duration Name of commanding officer providing the information

o Up-load a certified true copy of the Certificate of Eligibility into the paperless file – Ablanket certified-true-copy stamp for all the items in the file is sufficient

Un-remarried Surviving Spouseo Send fully executed Request for Determination of Loan Guaranty – Unmarried

Surviving Spouses – VA Form 26-1817 to the VA Eligibility Center at the AtlantaRegional Loan Center – Turn times may be lengthy

INTEREST RATE REDUCTION REFINANCING LOANS No Certificate of Eligibility is required Prior Loan Validation printout is no longer required

CERTIFICATE OF ELIGIBILITY RESOURECES VA Pamphlet 26-7, Chapter 2

CLOSING COSTSALLOWABLE CLOSING COSTSVeteran may pay any of the following reasonable closing costs and fees:

1% origination feeo For purchase and cash-out loans, the origination fee is calculated using the total loan

amount, including the financed funding feeo For IRRRLs, the origination fee is calculated using the payoff minus any cash

payments by the veteran, if applicable Reasonable and customary discount points VA appraisal fee – The veteran may not pay a fee higher than the maximum allowable

appraisal fee for the state in which the property is located and may not pay for morethan one appraisal. Therefore, do not order appraisals for properties under constructionuntil the property is at least 90% complete – See VA Appraisal Fee Schedules

VA compliance inspector fees – Only if required by the NOV (Notice of Value) Recording fees Taxes and stamps

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Credit report fees – a $50 credit evaluation fee may be paid in lieu of the credit report feefor automated underwriting approvals

Pre-paid items Insurances (hazard and flood, when required) Flood zone determination Well and septic inspection fees Survey, if required by lender or veteran, except for surveys of condominiums Title insurance, title examination, title endorsement, title policy, title search, including the

owner’s title policy Environmental protection lien endorsement Express mail fees for refinances if the saved per diem interest cost to the veteran will

exceed the cost of the special handling – Anything over $50, provide the invoice to verifyfee

VA funding fee Mortgage Electronic Registration System (MERS) fee Closing protection letter – Must not exceed the actual documented cost Fraud protection report Termite, provided the loan is a cash-out refinance – The borrower may never pay these

fees for purchase transactions The veteran may pay for repairs. For purchase transactions, the purchase agreement

must state the veteran is responsible for the cost of necessary repairs

If a fee is not listed above, assume VA does NOT permit the veteran to pay it

NON-ALLOWABLE BORROWER-PAID CLOSING COSTSGenerally, the veteran may NOT pay any of the fees listed below, but the seller or lender maypay the non- allowable fees. However, if no origination fee is charged and the fee is not listed inthe section below that itemizes fees the Veteran may never pay, the Veteran may pay non-allowable costs up to 1% of the purchase price. The veteran may also pay a combination ofnon-allowable fees and an origination fee, provided the combination does not exceed 1% of thepurchase price. The non-allowable fees are:

Attorney fees other than for title commitments Lender’s appraisals Lender’s inspections, except construction loan inspections and inspections required on

the appraisal/NOV Loan closing or settlement fees Doc prep, underwriting, loan application, admin or processing fees

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Assignment fees Photographs Interest rate lock-in fees E-Mail, fax, copying, postage, stationery, telephone or other overhead charges Amortization schedules, Truth-in-Lending fees, etc. Notary fees Escrow fees or charges Commitment fees or marketing fees of secondary purchasers Trustee fees Fees charged by third parties, regardless of affiliation with lender Tax service fees The veteran may never pay any of the following fees or charges, regardless of whether

an origination fee was paid:o Termite inspection fee for a purchase transactiono Attorney fee that benefits the lendero Broker feeo Brokerage fees or commissions charged by real estate agents or real estate brokers

in connection with a VA loano Prepayment penalties financed through a refinance transaction – When the payoff

states a pre-payment penalty is due, veterans may pay pre-payment penalties out-of-pocket only

o FHA/VA inspection fees for builders (Normal new construction inspections of thedwelling are permitted when required by the appraiser)

o Any portion of the seller’s lien(s) or short sale fees

CLOSING REQUIREMENTSPROPERTY ADDRESSESThe property addresses on the appraisal, mortgage, note, and the flood certification must beidentical. However, abbreviation of “Street,” “Road,” etc. is acceptable, even if “Street” or“Road” is fully spelled in another document. This is the only acceptable variance

Use the standardized USPS address. Compare the USPS address to the legaldescription on the title commitment and use the city in the legal description if that differsfrom the USPS address

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CLOSING REQUIREMENTS Non-borrowers who are not married to the veteran may not take title under any

circumstance A fully executed Report and Certification of Loan Disbursement – VA Form 26-1820

must be included in the closing packageo Section 6 stating the name and address of nearest living relative not living with the

veteran must be completed for all VA loans – Spouse may not be listed as nearestliving relative

o Active duty veterans must complete the active duty certification by checking the boxlocated between item 27g and 28A on page 2 of the form

A VA Origination Statement itemizing all of the fees from lines 801 and 1101 and all ofthe credits in section 200 of the HUD-I Settlement is requiredo Complete VA Origination Statement

Interest credit allowed - Loan must close by the 7th calendar day of the month precedingthe first payment date

A minimum of 12 months chain of title as evidenced by the title commitment satisfactoryto LenderLive review

A verbal VOE must be submitted with the funding requesto Verbal VOEs for hourly, salaried, or commission income borrowers must be

completed within 10 business days of the note and must confirm the borrower iscurrently employed and must address the probability of continued employment. If thecompany representative states they do not perform verbal verifications, confirmborrower is still employed via a receptionist, phone extension directory and/or activevoice mail box. If the company representative indicates they do not comment onprobability of continued employment, indicate that response on Verbal Verification ofEmployment,

o Verifications for active-duty military borrowers may be in the form of a military Leaveand Earnings Statement (LES) dated within 30 days of closing

o Verifications for self-employed borrowers must be within the most recent 30 daysand must be obtained from a third party such as a CPA, regulatory agency or theapplicable licensing bureau and verification of the business’ phone listing andaddress via phone book, the internet or directory assistance is also required

o Verification of employment/certification of non-employment income is required for allloans prior-to-funding and must be completed on Verbal Verification of Employment,

For purchase transactions, VA does not permit the borrower to bring additional funds toclose to pay any portion of the remaining lien(s) on behalf of the seller or short sale feeson behalf of the seller – For example, if the seller owes $120,000 on an existingproperty, and the sales price is $100,000, the borrower may not pay any portion of theremaining $20,000 on behalf of the seller

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A payoff statement must be included in all refinance transaction files and must bereviewed by the underwriter

All conditions must be collected and provided in the closing packageo Down payment assistance funds are typically wired to the closing agent – Wire

transfer documentation must be included in the file prior to funding or purchase Any changes to loan amount, funding fee, cash-to-close, interest rate, points, PITI, etc.

must be reviewed by underwriter prior to closing and disbursing loan Principal reductions are required when the total of lender and/or seller credits reflected

on the HUD- I Settlement Statement exceeds the total of the actual closing costs, pre-paid expenses and discount points

Principal reductions are required when the borrower receives any cash back at apurchase transaction closingo Documented funds paid by the borrower outside of closing for items such as EMD or

appraisal and credit report may be refunded to the borrower at closing – Documentfunds paid outside of closing with one of the following: Cancelled checks Bank statement showing transfer of funds – If the statement does not indicate the

payee, a copy of the check is also required Money order receipts and evidence of source of funds

Principal reductions are required when the borrower is receiving more than $500 cash atclosing on an interest rate reduction refinancing loan. The principal reduction mustinclude all cash back and not just the portion of cash back that exceeds $500. Forexample, if the HUD Settlement Statement indicates the borrower is receiving $626 cashback, a principal reduction in the amount of $626 is required. A principal reduction inthe amount of $126 is insufficient

Closing documents must be signed and notarized on or before the closing date indicatedon the closing documents, regardless of the state in which the property is located and/orwhether it’s an escrow state

For properties located in California, interest may not be charged prior to loandisbursement unless disbursement.

A fully executed Social Security Number Validation, SSA-89 required in all closingpackages

ESCROW STATES

Alaska Idaho UtahArizona Montana Washington

California Nevada Wyoming

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Colorado New Mexico

Hawaii Oregon

NOTARY POLICY Notaries may not be associated with the correspondent. Ineligible notaries include but

are not limited to the following:o Any employee of the broker/correspondent, including but not limited to loan

originators, processors, etc. (When closing loans in-house, banks and credit unionsmay use an employee to perform notary services)

o Any family member of one of the principal ownerso Anyone who receives funds, other than the notary fee, upon loan closing

Loans that close with an unacceptable notary must be re-closed with a non-associatednotary prior- to-funding

CO-BORROWERS Co-borrower must be Veteran’s spouse and/or eligible veteran or loan requires prior

approval by VA regional loan center having jurisdiction over the propertyo Same-sex spouses require VA’s approval. Provide the following information in the

loan file: Date and state of marriage State of residence at the time of marriage State in which the subject property is located State in which the couple currently resides Estimated closing date The underwriter will obtain VA’s approval

When co-borrower is not a veteran or the veteran borrower’s spouse, VA will guarantyonly the veteran’s portion of the loan – A down payment ≥ 25% of the non-veteran co-borrower’s portion of the loan is required – If there is one co-borrower who is not theveteran’s spouse and is also not a veteran, the veteran’s “portion” of the loan is half ofthe loan amounto Combination of veteran’s entitlement plus down payment must be ≥ 25% of the base

loan amount, excluding the financed funding fee

COMPENSATING FACTORSRatio guidelines may be exceeded when compensating factor(s) that support loan approval aredocumented in the file. The remarks section of Loan Analysis, VA form 26-6393 must contain

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the underwriter’s list of compensating factors that were used to justify approval. The followingitems are VA recognized compensating factors:

Excellent credit history Conservative use of consumer credit Minimal debt Long-term employment Significant liquid assets Sizable down payment Equity position in refinance loans Minimal or no increase in monthly housing expense Military benefits Satisfactory homeownership experience High residual income

o For loans that exceed VA’s 41% total debt ratio guideline, residual income must be atleast 20% more than the loan’s residual income requirement

o Supervisory underwriter signature and written justification required when ratioexceeds 41% but borrower’s residual income is < 120% of requirement

Low debt-to-income ratio Tax credits for child care Tax benefits of homeownership

When any of the above factors have been evaluated by automated underwriting and the loanreceives a “refer” response, automated underwriting has determined the compensating factor isnot sufficient to render an “approve” or “accept” response. Alternative compensating factorsmust be provided for review.

CONDOMINIUMS For all VA loan purposes, condos, including site condos must be VA-approved

o Condominiums should not be appraised until the project and/or phase in which theunit is located is approved by VA

Condominiums without Homeowner’s Associations are ineligible for LenderLive financing

CONDOMINIUM RESOURCES VA Pamphlet 26-7, Chapter 16

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CONFLICT OF INTEREST Transactions in which the realtor and the originator are the same individual are ineligible.

CREDIT HISTORYUnderwriters must address all recent derogatory credit and provide justification for loanapproval, regardless of AUS response.

CREDIT INQUIRIESInquiries within the most recent 90 days must be explained in writing, regardless of automatedunderwriting response

DEBTS EXCLUDED FROM THE CREDIT REPORT Debts exceeding 2% of the stable monthly income for all borrowers but not appearing on

the credit report must be verified by the creditor.o If the debt is held by a private individual, 12 months canceled checks are required.o If the loan receives an “approve” or “accept” response through automated

underwriting but the payment history reflects more than 1 30-day late payment withinthe most recent 12 months, the loan must be downgraded to a “refer” response andmanually underwritten

o The debt must be included as a liability in the ratio and residual income calculations

FORECLOSURES Foreclosures aged more than two years may be disregarded:

o If the mortgage was not included in the Chapter 7 Bankruptcy, the foreclosure timeframe is measured form the foreclosure completion date.

o If the mortgage was included in a Chapter 7 Bankruptcy, the foreclosure time frameis measured from the earlier of the foreclosure completion or the Chapter 7Bankruptcy discharge.

o If the foreclosed loan was a VA loan and VA took a loss, the Veteran’s entitlement forthe property is not restored until VA is reimbursed for their loss. If the borrower’sCertificate of Eligibility indicates a foreclosure, VA permits the Veteran to use any

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remaining entitlement. If there is no remaining basic entitlement, the loan amountmust be greater than $144,000.

Loans for borrowers having foreclosures within the most recent two years are rarelyacceptable unless both of the following requirements are met:o Borrower has obtained consumer credit with a satisfactory payment history over a

continued period (at least one year)o Foreclosure was due to documented extreme extenuating circumstances such as

unemployment, prolonged strikes, medical bills not covered by insurance, etc.Divorce is not generally viewed as beyond the control of the borrower. When theforeclosure was related to failure of a self-employed business, the following must bedocumented: Evidence that borrower is employed in a permanent position after business failure Evidence of no derogatory credit prior to self-employment Evidence of no derogatory credit after the foreclosure Evidence business failure was not due to borrower’s misconduct

Loans for borrowers having foreclosures within the most recent 12 months cannot beapproved

Defaulted time-share loans are considered foreclosures

SHORT SALES The borrower must have made all mortgage and installment payments within the month

due for the 12 months prior to the short sale The short sale must serve as payment in full on the existing lien(s) and the existing

mortgage servicer may not require repayment of the difference between the mortgagebalance and the short payoff

Borrowers may not execute a short sale to take advantage of declining marketconditions and purchase, at a reduced price, a similar or superior property within areasonable commuting distance

If a borrower was delinquent on the mortgage at the time of short sale, LenderLive willnot approve the borrower for VA financing for at least two years after the date of theshort sale unless the borrower experienced significant extenuating circumstances

CHAPTER 7 BANKRUPTCIES Chapter 7 bankruptcies discharged more than two years ago may be disregarded Loans for borrowers having Chapter 7 bankruptcies within the most recent two years are

rarely acceptable unless both of the following requirements are met:

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o Borrower has obtained new consumer credit with a satisfactory payment history overa continued period (at least one year)

o Bankruptcy was due to documented extreme extenuating circumstances such asunemployment, prolonged strikes, medical bills not covered by insurance, etc.Divorce is not generally viewed as beyond the control of the borrower. When theChapter 7 bankruptcy was related to failure of a self-employed business, thefollowing must be documented: Evidence that borrower is employed in a permanent position after business failure Evidence of no derogatory credit prior to self-employment Evidence of no derogatory credit after the foreclosure Evidence business failure was not due to borrower’s misconduct

Loans for borrowers having Chapter 7 bankruptcies within the most recent 12 monthscannot be approved

CHAPTER 13 BANKRUPTCIES Must document at least one year into the payout plan has elapsed Must document satisfactory payment history Must obtain court permission to enter into new mortgage When the bankruptcy is still in repayment, include Chapter 13 payment in the debt ratio If the borrower has satisfactorily completed the repayment, the borrower is considered to

have re-established credit. Evidence of the discharge of the Chapter 13 is required.

CREDIT COUNSELINGThe following documentation is required if veteran entered credit counseling after becomingdelinquent on one or more obligation. However, if borrower entered into credit counseling priorto incurring delinquent credit, credit counseling is treated as a neutral or positive factor.

Must document at least one year into the payout plan has elapsed Must document satisfactory payment performance Must document the debts/trade lines included in the payment plan Must obtain counseling agency permission to enter into new mortgage

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JUDGMENTS Judgments must be paid in full prior to closing unless the borrower is in a re-payment

plan – Provide the following:o Fully executed repayment agreemento Evidence timely payments have been made (Evaluated on a case-by-case basis

generally for a minimum of a 12-month period) - Payment must be included in ratioswhen qualifying borrower

Judgments belonging to a non-purchasing spouse in a community property state aresubject to all of the above requirements

DEFAULTED CAIVR NUMBERS Credit Alert Interactive Voice Response System (CAIVRS) verification required for all

borrowers and non-borrowing spouses in community property states If the borrower or non-borrowing spouse in a community property state is currently

delinquent on any federal debt, VA mortgage, Title I Loan, Federal student loan, SBAloan, Federal taxes or has a lien against the property for debt owed to the United States,the borrower is not eligible until the delinquent account is brought current or satisfactorypayment arrangements have been made. If the debt owed to the federal government isa judgment lien against the property, it must be satisfied. The borrower’s CAIVRnumber is preceded by one of the following codes indicating whether the borrower hasan acceptable CAIVR number or the type of loan default:o A – Clear (this indicates the borrower has no delinquent Federal debt)o B – Bankruptcyo C – Claimo D – Defaulto E – Department of Educationo F – Foreclosureo J – Department of Justice

CREDIT REPORTSCredit reports must be submitted, including credit reports for IRRRL transactions

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AGE OF CREDIT REPORTS All credit reports must be tri-merge credit reports or Residential Mortgage Credit Reports Credit reports must be dated within 120 days of loan disbursement To achieve LenderLive’s and VA’s minimum credit requirements, a new credit report

may be re-pulled after a borrower has repaired derogatory credit and LenderLive willhonor the new credit score.

The following credit report discrepancies require a new credit report:o Social Security number is incorrecto Last name is incorrecto Middle initial is incorrecto Misspelled first names and/or missing or incorrect suffixes (Jr./Sr.) require a new

credit report unless the name variation appears in the AKA section of the creditreport

Credit report must contain Office of Foreign Assets Control (OFAC) screening

CREDIT SCORESMEDIAN CREDIT SCORE (REPRESENTATIVE CREDITSCORE)The following methodology is used to determine a borrower’s representative credit score:

Three Scores – Use the middle credit score Two Scores – Use the lowest credit score One Score – Use that score

MINIMUM CREDIT SCORESMinimum VA Credit Score Requirements

LoanPurpose

Purchase Rate and Term Refinance1

Cash-Out Refinance 2,3 IRRRL

Units 1-4 Units 1-2 Units 3-4 Units SFR 2 Units 1-2 Units 3-4 Units

MinimumCredit Score 620 620 640 640 680 620 640

1. VA Cash-out refinance in which borrower does not receive cash back and/or consolidate non-mortgage debt

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2. Borrower receives cash back and/or consolidates non-mortgage debt

3. 3-4 Units ineligible

DECLINING MARKETSAt this time, there are no declining market restrictions.

DISCLOSURES/FORMSREQUIRED DISCLOSURES AND FORMS

A VA Origination Statement, itemizing all of the fees from lines 801 and 1101 and all ofthe credits in section 200 of the HUD-I Settlement Statement is required

DOWN PAYMENTNo minimum down payment or cash investment required unless:

Veteran’s available entitlement is less than 25% of the base loan amount, excluding thefinanced funding fee or

Co-borrower is not a veteran or the spouse of the veteran borrower

DOWN PAYMENT ASSISTANCE Not available.

EMPLOYMENT/INCOMEINCOME DOCUMENTATION

Follow the income documentation requirements for AUS “approve” or “accept” responses While VA no longer requires a pay stub if the lender obtains a full VOE containing all

required information, LenderLive requires a pay stub If the property is located in a presidentially declared disaster area, and the disaster was

declared by the President prior to the loan closing, the underwriter must determine the

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borrower remains employed and income has not declined as a result of the disaster orany other factors

NON-MILITARY INCOMEBorrowers with non-military employment must have a two-year history of employment prior toapplication

Verify all employment within the most recent two years

CURRENT EMPLOYMENT < 12 MONTHSCurrent employment less than 12 months is generally not considered stable and reliable. Thefollowing must be evaluated:

Employer’s written statement of the probability of continued employment, if provided Applicant’s training and/or education related to the duties of the current position – This

generally applies to skilled positions: nurses, medical technicians, lawyers, paralegals,computer systems analysts, etc.

Underwriter must provide justification in writing on the Loan Analysis, VA Form 26-6393for use of income from a borrower employed by his or her current employer less than 12months

JOB CHANGES Frequent job changes for career advancement in the same or related field are acceptable

– Borrower should be employed by current employer for the most recent 12 monthsunless there is strong justification provided by the employer for use of income

Frequent job changes from one field to another and/or that do not improve the borrower’sposition are not acceptable without strong justification. Underwriter explanation mustaccompany the file

AUTO ALLOWANCES May be used to offset a car payment, if applicable In the event the documented auto allowance exceeds the car payment, the portion of

income that exceeds the car payment may be counted as effective income

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DISABILITY INCOME VA disability income may be used to calculate the veteran’s ratio and residual income.

When the amount of disability income is displayed on the Certificate of Eligibility, nofurther documentation is required

Long term disability income used for qualification purposes must continue for at leastthree years after closing. The file must contain evidence of the amount of disabilityincome and evidence of continuanceo Social Security Disability income is the only disability income exempt from evidence

of continuation Short term disability income may not be used to calculate the borrower’s ratio or residual

income

MATERNITY LEAVEA borrower’s regular, stable income may be considered as acceptable income when a maternityleave occurs. The employer must state in writing on their letterhead that the borrower’semployment and wages will not be adversely affected and will be available when the borrowerreturns to work. The borrower must state in writing his or her intent to return to work.

ACTIVE-DUTY MILITARY INCOME Obtain borrower’s Leave and Earnings Statement (LES) For active duty veterans, the ETS (Expiration of Term of Service) date must be at least

12 months after loan closing. If the active duty veteran’s ETS date is within 12 monthsof the closing date or the borrower is a Reservist or National Guard Veteran, regardlessof remaining ETS, one of the following is required:o Documentation that active-duty service personnel has re-enlisted or extended period

of active duty beyond 12 months after closingo A written statement from active-duty service personnel that he or she intends to re-

enlist or extend period of active duty 12 months beyond closing and a writtenstatement from commanding officer stating active-duty service personnel is eligibleto re-enlist and commanding officer has no reason to believe re-enlistment will notbe granted

o Evidence of a valid offer of local civilian employment following release from activeduty – Employer must document the following: Date employment will begin Earnings, etc.

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If the ETS field on the Leave and Earnings Statement reflects “9999,” evidence of 12months remaining enlistment must be obtained from the veteran’s commanding officer

Leave and earnings statements for officers will not have a date in the ETS field. The ETSfield will be blank or contain “XXXX” - No documentation of remaining length of serviceis required

Explanation and documentation of allotments listed on the LES is required. Allotmentsthat are obligations and/or debts must be included in the borrower’s liabilities. Smallallotments need not be explained and/or counted as a liability. Bank allotments that aredeposits to checking and/or savings accounts are not a liability.

In addition to base pay, active-duty military personnel receive various allowances andpays – allowances and pays may be included in income calculation when they areexpected to continue due to the military personnel’s duty assignmento Allowances are non-taxable (clothing allowance is reflected on LES as an annual

figure – divide by 12 to determine monthly amount)o Pro-pay, combat pay, etc. are taxable

COMMISSION Averaged over two years Obtain the following documentation:

o Most recent two years’ signed and dated tax returns, including all schedules Borrower’s unreimbursed business expenses from Schedule A of IRS Form 1040

must be deducted from the gross commission before averaging the commissionincome

o Verification of employment or other written verification of YTD commissions, paystructure (salary plus commission, straight commission, or draws againstcommission), and when commissions are paid

Commission income received less than two years may only be considered when theborrower has previous related employment and/or extensive training

Commissions received less than one year are generally not allowable

EDUCATIONAL ASSISTANCE May not be used as effective income

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NON-TAXABLE INCOME For the purpose of calculating ratios only, non-taxable income may be grossed up by the

applicable state and federal income tax rate. Use current income tax withholding tablesto determine the appropriate tax rates.

Non-taxable income may not be grossed up when calculating the veteran’s residualincome

OVERTIME/BONUS/PART-TIME EMPLOYMENT/SECOND JOB Acceptable when received two years and income is regular and predictable – Income is

calculated by averaging the income over the most recent two years If received between 12 and 24 months, may be used to offset debts with 10 to 24 months

remaining

RECENTLY DISCHARGED VETERANSEmployment Income

If applicant is employed less than 12 months in current position, obtain a statement fromemployer that verifies applicant is performing job duties satisfactorily and probability ofcontinued employment is favorableo Job duties that are similar or directly related to the veteran’s military experience are

one indicator of likely continuance of employmento Employment that requires skills for which the veteran has no training or experience

requires greater time in the jobo If the veteran receives retirement income and only minimal income from employment

is required to meet ratio and residual income requirement, “resolve doubt in favor ofthe veteran”

o Veterans who are self-employed must meet the self-employment requirements below Underwriter must provide justification for use of income from a borrower employed by his

or her current employer less than 12 months

RESERVE / NATIONAL GUARD INCOME May be used when the expiration date of the applicant’s current contract indicates a

strong probability that the reserve/guard income will continue Underwriters must consider whether income for Reserve/National Guard borrowers is

subject to change due to activation

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o If the income will be reduced, consideration must be given to applicant’s ability torepay the loan during activation

o If income will increase, consideration must be given to applicant’s ability to repay theloan once activation is terminated

SECTION 8 HOUSING VOUCHERS The amount of the housing voucher may be treated as income – HUD must provide

evidence three year continuance

SELF-EMPLOYMENT Averaged over two years Obtain the following documentation:

o Year-to-date profit and loss and balance sheet for the businesso Most recent two years’ signed and dated personal tax returnso Most recent two years’ signed and dated business or corporate returns, including all

applicable schedules and list of stockholders or partners showing percentage ofownership

o Business credit report as needed Self-employment income received less than two years may be considered when

borrower has previous related employment and/or extensive specialized training Self-employment income received less than one year is ineligible

ENERGY EFFICIENTMORTGAGES/IMPROVEMENTS

Not allowed

ENTITLEMENT/GUARANTY Veteran’s available entitlement is the amount of the loan VA will guarantee Investors require at least a 25% guaranty

o May consist of veteran’s available entitlement only, if available entitlement ≥ 25% ofthe base loan amount, excluding the financed funding fee and the co-borrower is theveteran’s spouse and/or a veteran

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o For purchase transactions, may consist of combination of the veteran’s availableentitlement and down payment, provided the sum of the veteran’s availableentitlement plus down payment ≥ 25% of the base loan amount, excluding thefinanced funding fee

o For refinance transactions, may consist of a combination of the veteran’s availableentitlement, existing equity and/or down payment, provided the total is ≥ 25% of thebase loan amount, excluding the financed funding fee

o Veterans without any available entitlement are ineligible for VA loans, regardless ofthe amount of the down payment or equity in the property

BASIC ENTITLEMENT All veterans receive $36,000 basic entitlement Remaining basic entitlement is shown on veteran’s Certificate of Eligibility – Will be $0 to

$36,000, depending on the amount of outstanding un-restored entitlement used Provides veteran with VA guaranty for loan amounts ≤ $144,000 May be used multiple times (see restoration of entitlement below) May be combined with bonus entitlement for loan amounts > $144,000

ADDITIONAL OR BONUS ENTITLEMENT Amount depends on VA County Loan Limits – For a list of high cost counties, refer to or

VA County Loan Limits for High Cost Countieso If the county in which the property is located is not listed on the High Cost Matrix, the

county limit is $417,000 Additional or bonus entitlement is calculated using the following formula: (County

maximum limit X 25%) - $36,000 = additional or bonus entitlement (i.e. If the countymaximum is $417,000 X 25% = $104,250. $104,250 minus $36,000 = $68,250.$68,250 is the additional or bonus entitlement)

May be combined with basic entitlement for loan amounts > $144,000 May not be used for loan amounts ≤ $144,000 May be used for loan amounts > $144,000, even when there is no basic entitlement

remaining

RESTORATION OF ENTITLEMENT Previously used entitlement may be restored only when the VA loan is paid in full and

title has been transferred to a new owner

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o A one-time exception to the transfer of title requirement may be granted by VA whenthe VA loan is paid in full but the veteran still owns the property to which entitlementwas charged

To obtain restoration of entitlement, submit the following documents to the VA EligibilityCenter:o Fully executed Request for Certificate of Eligibility, VA Form 26-1880o Evidence prior loan was paid in full (HUD-I statement, etc.)o Previous certificates of eligibility, if available

Borrower who had a previous foreclosure must pay the foreclosure in full beforeentitlement may be restoredo A borrower who had a previous VA foreclosure may use remaining available

entitlement, subject to meeting all underwriting guidelines, including clear CAIVRresponse

Entitlement charged to the subject property is simultaneously restored and re-used forrefinance transactions

Simultaneous restoration of entitlement is permitted when a veteran is purchasing a newhome and the sale of his or her existing VA guaranteed residence will close withinseven days of the new purchase – A fully executed Request for Certificate of Eligibility,VA Form 26-1880 is required

ENTITLEMENT RESOURCES VA Pamphlet 26-7 – Chapter 2

ESCROWS Escrow waivers not allowed Property tax escrows for new construction properties may be calculated based on the

fully assessed property value – Obtain actual tax amounts from the local assessor’soffice based on the completed value or 1.50% of the purchase price

For new construction properties and purchases of properties located in California only,property taxes may be calculated using 1.50% of the purchase price or the actual taxrate

ESCROW HOLDBACKS Allowed only for exterior property repairs that cannot be completed due to inclement

weather

Commented [BF1]: Joe Neamon to confirm if we canprovide this service

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The veteran may pay for repairs, provided the purchase agreement indicates the veteranis to pay for them

Underwriter approval required on a case-by-case basis Construction must be complete and the home must be suitable for immediate occupancy Postponement of the improvements must be beyond the control of the builder/seller For completion of exterior work only – Acceptable escrow repair items include but are not

limited to the following:o Walkways, driveways, and retaining wallso Exterior paintingo Landscapingo Garages

Not allowed for structural repairs and foundation work Appraiser must indicate “subject to” on appraisal and list all required repairs Fully executed Compliance Inspection Report, VA Form 26-1839 required prior to

disbursement Escrow holdback will be 1½ times reasonable bid for repair Repairs must usually be completed within 90-120 days of closing Two bids required For loans underwritten by LenderLive, all repair escrows are held by LenderLive’s

servicing department and may not be held by the title company or any municipality For loans underwritten by VA Automatic Correspondents, repair escrows are held

according to the Correspondent’s policies

BANK-OWNED PROPERTIESApproval of repair escrow is granted on a case-by-case basis for completion of exterior repairsthat will not be completed prior to close. Escrows are not permitted for structural repairs or itemsthat affect the health and safety of the occupants.

FUNDING FEE Any loan having any of the following funding fee characteristics is ineligible

o One borrower is required to pay a funding fee and the other is not (If the borrower notrequired to pay the funding fee is the veteran’s spouse, the loan remains eligible)

o Two veteran borrowers are required to pay different funding feeso Refer to Joint Loan Eligibility/Ineligibility

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Most veterans pay a VA funding fee – The amount of the funding fee is determined bythe following veteran and/or loan characteristics:o Type of military service (Regular Military or National Guard/Selected Reserve)o Down payment amount, if any on purchase transactions – For the purposes of

calculating the funding fee on purchases, the LTV is calculated by dividing the baseloan amount by the purchase price, regardless of the appraised value. While thiscalculation includes transactions where the appraised value is less than thepurchase price, the maximum base loan amount is 100% of the lesser of thepurchase price or appraised value

o Loan purpose (purchase, cash-out refinance, IRRRL)o First time or subsequent use of entitlement – Entitlement code “05” indicates the

borrower is subject to the subsequent use funding fee. Furthermore, if theentitlement code is anything other than “05,” but a condition on the veteran’sCertificate of Eligibility states the veteran is subject to a subsequent use funding fee,the veteran must pay the subsequent use funding fee.

The following borrowers are exempt from paying the VA funding fee:o Veterans currently receiving service-connected disability incomeo Veterans who were in receipt of disability compensation or who received military

retirement compensation instead of disability compensation but are now receivingactive-duty pay due to re-enlistment or being recalled to active duty

o Veterans receiving pension in lieu of service-connected disability incomeo Veterans who previously received service-connected disability incomeo Veterans for whom VA has issued a memorandum disability rating resulting from a

“pre- discharge review of existing medical evidence” If the VA disability questionnaire indicates the veteran filed a claim while on

active duty and the veteran is not yet discharged, VA Form 26-8937- Verificationof VA Benefits must be completed by a an employee located at the RegionalLoan Center having jurisdiction over the property location

o Un-remarried surviving spouses of veterans who were totally disabled at the time ofdeath or died as the result of service-connected injuries If the Comments section of the Certificate of Eligibility instructs the lender to fax

a copy of Verification of VA Benefits, VA Form 26-8937 fax the fully executedform to the Regional Loan Center having jurisdiction over the property location

If the certificate of eligibility contains information that conflicts with anyinformation in the file, fax a fully executed copy of Verification of VA Benefits, VAForm 26-8937 to the Regional Loan Center having jurisdiction over the propertylocation. For example, if the Certificate of Eligibility states the veteran is “non-exempt” from paying the funding fee, and the file contains evidence the borrowerreceives disability income, the RLC must complete VA form 26-8937

Funding fee is a percentage of the base loan amount

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o For joint loans on which the co-borrower is not the veteran’s spouse, the funding feeis calculated using the veteran’s portion of the loan

o For joint loans on which two or more veterans use entitlement, each funding fee iscalculated separately for each veteran’s portion of the loan

Funding fee may be financedo The funding fee must be fully financed or fully paid in cash at closingo The funding fee may not be financed and paid in cash by the veteran, seller, lender

or any other party Funding fee is non-refundable

FUNDING FEE TABLES Funding fee tables at:

o http://www.benefits.va.gov/homeloans/documents/docs/funding_fee_table.pdf

GEOGRAPHIC RESTRICTIONSELIGIBLE LOCATIONS

Properties may be located in all U.S. states, District of Columbia and U.S. Virgin Islands

COMMUNITY PROPERTY STATESThe following states are community property states:

Arizona Louisiana Texas AlaskaCalifornia Nevada Washington

Idaho New Mexico Wisconsin

Unless the loan is an Interest Rate Reduction Refinancing Loan, a credit report isrequired for all non-borrowing spouses

CAIVR verification is required for non-borrowing spouseso Federal debts of non-borrowing spouses in community property states must be

satisfied prior to closing the new VA loan Debts of non-purchasing spouses must be counted in the borrower’s qualifying ratios

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o Underwriters must base the credit decision, in part, on the non-borrowing spouse’scredit history

o Derogatory items on the non-borrowing spouse’s credit report are evaluated on acase-by- case basis

o VA permits consideration of the non-borrowing spouse’s income when debts arebeing included in the ratios and the property is located in a community property state– The income is not run through automated underwriting

Local Requirements See the link below for additional local requirements:

o http://www.benefits.va.gov/HOMELOANS/appraiser_cv_local_req.asp

* While rare, if local building codes require a termite inspection or the appraiser noticesinfestation, a termite inspection is required in states and/or counties where a termite inspectionis generally not required.

GIFT FUNDSELIGIBLE GIFT DONORS

Borrower’s relative

INELIGIBLE GIFT DONORSAny person or entity with an interest in the sale of the property, such as the seller, real estateagent or broker, builder, or any entity associated with any of the above

A family member who is also a realtor on the transaction may provide their commissionas a gift to the borrower. Provide both of the following:o Fully executed gift letter ando HUD-I Settlement Statement reflecting credit of the family member/realtor’s

commission

GIFT DOCUMENTATION Fully executed gift letter

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Evidence of donor’s withdrawal of funds (e.g. Copy of donor’s cancelled check, bankstatement or bank-validated withdrawal slip)

Cash-on-hand is not an acceptable source of donor’s gift funds Evidence of deposit into borrower’s account Excess gift funds may not be considered as reserves but may be considered as a

compensating factor All gift fund documentation must be satisfied prior-to-closing

GIFT OF EQUITY Regardless of the donor source and relationship to the veteran, VA does not permit gifts

of equity

INCOMESee Employment/Income

INSURANCEHAZARD INSURANCE

Hazard Insurance Requirements, - Refer to the correspondent lending manual for details

FLOOD INSURANCE Flood Insurance Requirements, - Refer to the correspondent lending manual for details Eligible Flood Provider Companies- FEMA Flood Insurance Company List

CONDO/PUD LIABILITY INSURANCE Condominium Section of Conventional Underwriting Guidelines

o Must be provided prior-to-close Site Condominiums – Liability insurance is not required

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HO-6 POLICY Required for all attached units, including PUDs, unless the master condo policy includes

interior unit coverage – Master policy must include replacement of improvements andbetterment coverage to cover any improvements made to the unit

HO-6 policy that covers fixtures, equipment, and other affixed property inside individualunits is required unless the master policy meets all guides stated above

Must be ≥ 20% of the unit’s appraised value HO-6 Policy applies to PUDs that have any coverage maintained under a master policy

JOINT LOANS Non-borrowers who are not married to the veteran may not take title under any

circumstance Co-borrowers, including spouses of veterans, must meet all of VA’s underwriting

requirements, including those pertaining to credit, employment, income, asset andCAIVR verification

Veteran and veteran’s spouse who is not a veterano Funding fee is calculated by multiplying the applicable funding fee factor by the base

loan amounto No down payment is required, provided veteran has sufficient remaining entitlement

to guaranty 25% or more of the base loan amount, excluding the financed fundingfee

o LenderLive issues loan approval Veteran and veteran’s spouse who is also a veteran

o Veterans may use one or both entitlements – Refer to Joint Loan Eligibility Funding fee calculation is based on whether entitlement is being used from one

or both borrowers Only one spouse uses entitlement – Funding fee is calculated by multiplying

the applicable funding fee factor by the base loan amount Both spouses use entitlement – Funding fees are calculated by multiplying

the applicable funding fee factor for each spouse by half of the base loanamount

o LenderLive issues loan approval, even when both veterans use entitlemento No down payment is required, provided one or both veterans have sufficient

remaining entitlement to guaranty 25% or more of the base loan amount, excludingthe financed funding fee

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o VA will not guaranty > 25% of the loan limit for the county in which the property islocated, regardless of the veterans’ combined available entitlement

Multiple veterans who are not married to one another – Refer to Joint Loan Eligibilityo Veterans may use entitlement from one or more of the veterans. However, VA will

guaranty only the portion(s) of the loan for veteran(s) who are using entitlement.The loan will require a down payment that, when combined with the VA guaranty, is≥ 25% of the base loan amount, excluding the financed funding fee

o All veterans must occupy the property, regardless of whether they are usingentitlement

o Funding fees are calculated by multiplying the applicable funding fee factor for eachveteran who is using entitlement by his or her portion of the base loan amount

o Prior loan approval by the VA regional loan center having jurisdiction over theproperty is required

o No down payment is required, provided all veterans use entitlement and havesufficient remaining entitlement to guaranty 25% or more of their portion of the baseloan amount, excluding the financed funding fee

o VA will not guaranty > 25% of the loan limit for the county in which the property islocated, regardless of the veterans’ combined available entitlement

Veteran(s) with non-veteran co-borrowers – Refer to Joint Loan Eligibilityo VA will guaranty only the veteran’s portion of the loan If there are two borrowers (one is a veteran and the other is not), the VA guaranty

will not exceed 25% of half of the loan – In an example where the loan amount is$200,000 and assuming the veteran has sufficient remaining entitlement, VA willguaranty no more than $25,000 (half of $200,000 is $100,000. 25% of $100,000is $25,000)

If anyone other than the veteran and the veteran’s spouse takes title, the loan is ajoint loan and VA will guaranty only the veteran’s portion of the loan as describedabove, regardless of whether the additional title holder is a co-borrower on theloan.

o Funding fees are calculated by multiplying the applicable funding fee factor for theveteran by his or her portion of the base loan amount

o Down payment required Combination of down payment and VA guaranty must be ≥ 25% of the base loan

amount, excluding the financed funding fee – Using the example above, 25% ofthe total loan amount is $50,000 and the amount VA will guaranty is $25,000 –borrowers must make a $25,000 down payment

o Prior loan approval by the VA regional loan center having jurisdiction over theproperty is required

o Veteran’s income must be sufficient to repay the veteran’s portion of the property

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Using the example above, the veteran’s portion of the loan is 50% or $100,000 –Veteran’s income must be sufficient to repay $100,000

JOINT LOAN ELIGIBILITY/INELIGIBILITY

Veterans Entitlement/Funding Fee Description EligibleTwo or more veterans All veterans are using entitlement and funding fee factors are identical

(both funding fees are 2.15%, etc.)Yes

Two or more veterans All veterans are using entitlement and all veterans are exempt from payingthe funding fee

Yes

Two or more veterans

All veterans are using entitlement and one veteran is exempt from payingthe funding fee but all others are required to pay a funding fee

No

Two or more veterans Only one veteran is using entitlement No

Two or more veterans

All veterans are using entitlement but one or more of the veteran’s fundingfee factors differs from the others (One veteran’s funding fee factor is2.15% and the other veteran’s funding fee factor is 3.30%, etc.)

No

Veteran and non-veteran co-borrower whois not the veteran’s spouse

Veteran is subject to paying a funding fee No

Veteran and non-veteran co-borrower whois not the veteran’s spouse

Veteran is exempt from paying a funding fee Yes

Veteran and non-veteran spouse Veteran is exempt from paying a funding fee or veteran is required to paya funding fee

Yes

Un-remarried Surviving Spouse Un-remarried Surviving Spouse is always exempt from paying a fundingfee

Yes

JOINT LOAN RESOURCES VA Pamphlet 26-7, Chapter 7

LAND CONTRACTSLoans to refinance the unpaid balance of a land contract are acceptable.

Maximum loan amount is the lesser of the appraised value or the existing balance plusallowable closing costs, discount points and funding fee

Borrowers receive no cash at closing

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LIABILITIES The following items must be included in the borrower’s ratio:

o PITI for subject property If the borrower subordinates a HELOC, the monthly payment is calculated using

the higher of the maximum accessible line of credit or existing balanceo All other real estate debts, including taxes and insurance for properties owned free

and clearo Installment debtso Revolving debts Revolving debt paid off or significantly paid down prior-to or at closing may be

excluded from the ratioso Auto leases, regardless of remaining termo Child supporto Alimonyo Child care expenses for all children ≤ 12 years of age – Child care expenses may be

excluded when the borrower’s 4506T transcripts reveal no child care deduction andborrowers meet one of the following criteria: Spouse does not work or Borrowers provide proof that there are no child care expenses

o Union dues and employment related expenseso Significant commuting expenses

In a community property state - (Alaska, Arizona, California, Idaho, Louisiana, Nevada,New Mexico, Texas, Washington and Wisconsin), debts of non-purchasing spousesmust be counted in the borrower’s qualifying ratioo Underwriters must base the credit decision, in part, on the non-borrowing spouse’s

credit history

All derogatory items on the non-borrowing spouse’s credit reportare evaluated on a case-by-case basis

CAIVR verification for non-borrowing spouses in community property states isrequired. Delinquent Federal debts of the non-purchasing spouse must besatisfied prior to closing the new VA loan

VA permits consideration of the non-borrowing spouse’s income when debts arebeing included in the ratios because the property is located in a communityproperty state – The income is not run through automated underwriting

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EXCLUDED LIABILITIESThe following items may be excluded from the ratio:

Installment debts with fewer than ten payments remaining, provided they do not have asevere impact on the family’s ability to make payments on the obligation

401k loans Student loans that are deferred more than 12 months after closing Debts, including now delinquent debts, assigned to an ex-spouse by a divorce decree Co-signed debts with the following documentation:

o Evidence payments have been made in a timely manner for 12 monthso Evidence payments have been made by the person for whom the borrower co-signedo If the person making the payments is not a borrower on the co-signed debt, the

payment must be included in the ratio and residual income calculation

LOAN PURPOSEPURCHASE

1 to 4-Unit owner-occupied properties If the borrower is purchasing a property that results in a short sale for the existing lender,

a fully executed copy of the short sale agreement is required and must be reviewed bythe underwriter

CASH-OUT REFINANCE Borrower pays off existing mortgage debt and finances closing costs, pre-paid expenses

and/or discount points but does not receive more than $500 cash back or consolidatenon-mortgage debt – 1 to 4-Unit owner occupied property

Borrower consolidates non-mortgage debt and/or receives cash back at closing – 1 to 2-Unit owner occupied properties only

INTEREST RATE REDUCTION REFINANCING LOANS (IRRRL) Streamline of an existing VA loan – 1 to 4-Unit properties – If the property currently

functions as a second home or investment property, the veteran must providecertification of prior occupancy

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LOAN TERMFIXED RATE MORTGAGES

10, 15, 20, 25 and 30-year fixed rate mortgages without temporary buydowns

ARMS 5/1 CMT adjustable-rate mortgages without temporary buydowns

LTV/CLTVPURCHASES

LTV – Base loan amount may be up to 100% of the lower of the purchase price orappraised value. Entitlement plus down payment, if any, must be sufficient to guaranteeat least 25% of the base loan amount, excluding the financed funding fee

CLTV – 100% of acquisition cost – purchase price plus closing costs, pre-paid expensesand discount pointso Copies of the fully executed note and mortgage are required at closing and must be

provided prior to funding or loan purchase

CASH-OUT LTV:

o Borrower does not receive more than $500 cash back and/or consolidate non-mortgage debt

o Borrower does not receive more than $500 cash back and/or consolidate non-mortgage debt – Base loan amount may be up to 100% of the appraised value.Entitlement plus property equity must be sufficient to guaranty at least 25% of thebase loan amount, excluding the financed funding fee – See the “Rental Income”section of this document for 3 to 4-Unit property restrictions

o Borrower receives cash back and/or consolidates non-mortgage debt and property isa single family residence – Base loan amount may be up to 95% of the appraisedvalue.

o Entitlement plus property equity must be sufficient to guaranty at least 25% of thebase loan amount, excluding the financed funding fee (3 to 4-Units are ineligible)

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o Borrower receives cash back and/or consolidates non-mortgage debt and property isa 2- Unit residence – Base loan amount may be up to 85% of the appraised value.Entitlement plus property equity must be sufficient to guaranty at least 25% of thebase loan amount, excluding the financed funding fee (3 to 4-Units are ineligible)

o Secondary liens being paid off through the VA refinance must be seasoned at least12 months and may not have had any draws totaling $1000 or more in the mostrecent 12 months or the transaction will be considered one in which the borrowerconsolidates non- mortgage debt. However, if all draws in the most recent 12months were used for documented home improvements, the transaction will not beconsidered consolidation of non-mortgage debt

CLTVo Existing subordinate financing -115% - Existing subordinate financing may be paid

down and modified, provided the new CLTV does not exceed 115%. If thesubordinate lien is a line of credit, the CLTV is calculated using the maximumaccessible credit limit and not the outstanding balance

o New subordinate financing is not permitted Copies of the fully-executed note and mortgage are required prior-to-closing

INTEREST RATE REDUCTION REFINANCING LOAN (IRRRL) LTV:

o Base LTV may not exceed the lesser of 100% of the appraised value or loan amountcalculation on the Interest Rate Reduction Refinancing Loan Worksheet, VA Form26-8923 – Neither the county loan limit nor the veteran’s remaining entitlement areconsidered – see Refinance section

CLTV – Existing subordinate financing may be re-subordinated – Unlimited CLTV. Newsubordinate financing is not permittedo Copies of the fully-executed note and mortgage are required prior-to-closing

MANUFACTURED HOMES Not eligible

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MAXIMUM / MINIMUM LOAN AMOUNTSPURCHASES

1 to 4-Units - Maximum base loan amount is the lesser of $1,000,000 or 100% of thelesser of the purchase price or appraised value – If veteran does not have fullentitlement remaining, and/or loan exceeds VA’s county loan limit, down payment isrequired

Minimum loan amount is $50,000

CASH-OUT REFINANCES 1 to 2-Units - Maximum base loan amount is the lesser of $1,000,000 or the LTV listed

below - If veteran does not have full entitlement remaining, and/or loan exceeds VA’scounty loan limit, additional equity may be required

o Borrower does not receive more than $500 cash back and/or consolidate non-mortgage debt –

o Maximum LTV may be up to 100% of the appraised value. Entitlement plus propertyequity must be sufficient to guaranty at least 25% of the base loan amount,excluding the financed

o funding fee – Refer to the “Rental Income” section of this document for additional 3 to4-Unit property restrictions

o Borrower receives cash back and/or consolidates non-mortgage debt – MaximumLTV may be up to 95% of the appraised value. Entitlement plus property equitymust be sufficient to guaranty at least 25% of the base loan amount, excluding thefinanced funding fee

o Borrower receives cash back and/or consolidates non-mortgage debt and property isa 2-Unit residence – Base loan amount may be up to 85% of the appraised value.Entitlement plus property equity must be sufficient to guaranty at least 25% of thebase loan amount, excluding the financed funding fee (3 to 4-Units are ineligible)

o Secondary liens other than purchase money seconds being paid off through the VArefinance must be seasoned at least 12 months and may not have had any drawstotaling $1000 or more in the most recent 12 months or the transaction will beconsidered one in which the borrower consolidates non-mortgage debt. However, ifall draws in the most recent 12 months were used for documented homeimprovements, the transaction will not be considered consolidation of non-mortgagedebt

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3 to 4-Units - Maximum loan amount is the lesser of $1,000,000 or 100% of the lesser ofthe appraised value - If veteran does not have full entitlement remaining, and/or loanexceeds VA’s county loan limit, additional equity may be requiredo Borrower may not receive cash back and/or consolidate non-mortgage debt

Minimum loan amount is $50,000

INTEREST RATE REDUCTION REFINANCING LOAN (IRRRL) Maximum base loan amount is the lesser of the following three calculations:

o Amount calculated by the Interest Rate Reduction Refinancing Loan Worksheet, VAForm 26-8923 or

o 100% of appraised value oro LenderLive’s maximum loan limitation: 1 to 4-Units - $1,000,000

Neither the county loan limit nor the veteran’s remaining entitlement are considered Minimum loan amount is $50,000

LOAN AMOUNT RESOURCES VA County Loan Limits for High Cost Counties Refer to the Entitlement Worksheet Form

MINIMUM PROPERTY REQUIREMENTSAll properties must meet the following requirements:

Must be constructed in compliance with local building codes Must meet Federal building regulations Must meet HUD requirements Must be safe, structurally sound, sanitary and habitable Must meet the standards considered desirable in a permanent home in its locality

PROPERTY RESOURCES VA Pamphlet 26-7, Chapter 10 VA Pamphlet 26-7, Chapter 11 VA Pamphlet 26-7, Chapter 12 VA Pamphlet 26-7, Chapter 13

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MORTGAGE INSURANCENone required, regardless of LTV

MULTIPLE PROPERTIES/VA LOANS VA does not limit the number of properties or VA loans a veteran may have Veteran is required to occupy the subject property when financed as VA purchase or

cash-out refinance transaction – Additionally, LenderLive requires the borrower tooccupy the property when the loan is an Interest Rate Reduction Refinancing Loan(IRRRL)

MAXIMUM NUMBER OF LENDERLIVE LOANSLenderLive will not approve and close loans for borrowers having more than five loans withLenderLive or having an aggregate loan amount of $2,000,000. The maximum number of loansand aggregate loan amount calculations include all of the following:

Non-closed loans with LenderLive and Loans that are closed and currently serviced by LenderLive and Loans that were closed with LenderLive but the servicing rights have been sold to

another lender within the most recent 24 months

NEAREST LIVING RELATIVEBorrower must provide the name, address and phone number of his or her nearest livingrelative.

Obtained at closing on Report and Certification of Loan Disbursement, VA Form 26-1820

NET TANGIBLE BENEFITA net tangible benefit form must be completed when required by the state. The following statescurrently require a fully-executed net tangible benefit form:

Colorado

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Illinois Maine Maryland Massachusetts Nevada New Mexico North Carolina Ohio Rhode Island South Carolina Virginia Maryland Net Tangible Benefit Form, - state specific form required Colorado Net Tangible Benefit Form, - state specific form required Massachusetts Net Tangible Benefit Form, - state specific form required Rhode Island Net Tangible Benefit Form, - state specific form required

NEW CONSTRUCTION Not available

NON-OCCUPANT CO-BORROWERS Not permitted

NOTICE OF VALUEThe Notice of Value (NOV) is required for all VA loans and is completed by the processing staffwithin five days of receipt of the appraisal:

The NOV is uploaded to the paperless file by the processing staff Brokers and Correspondents must provide a copy of the NOV to borrowers within five

days of receipt Indicates appraised value, appraiser’s estimate of remaining economic life and required

repairso Only the repairs necessary to bring the property up to VA’s minimum property

requirements may be listed on the NOV

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OCCUPANCY Purchases and cash-out refinances - Owner-occupied primary residences only IRRRLs – Provided the veteran provides certification of prior occupancy, the subject

property may be a primary residence, second home or investment property Veteran is required to occupy the subject property for the new VA loan

o Veteran must either occupy the home at the time of closing (cash-out refinances) orcertify that he or she will occupy within 60 days of loan closing The veteran’s spouse or dependent child who occupies the home satisfies the

occupancy requirement when the veteran cannot occupy the home due to over-seas active-duty assignment If the dependent child satisfies the occupancy requirement, the attorney in

fact or the dependent’s legal guardian must make the occupancy certificationon VA Form 26-1820

In most cases, the spouse or dependent child cannot satisfy the occupancyrequirement for a retired or discharged veteran or an active duty borrowerstationed within the states

The spouse or dependent child satisfies the occupancy requirement for aveteran who works overseas for a private contractor, provided there isevidence in the file the veteran is granted regular leaves of absence to returnto the United States. If there is no regular leave schedule, the spouse cannotsatisfy the occupancy requirement

No family member other than the veteran’s spouse or dependent child maysatisfy the occupancy requirement, and they satisfy the requirement onlyunder the circumstances listed above

Single active-duty veterans must occupy within 12 months of loan closing and theproperty must be located within reasonable commuting distance of the veteran’sassigned base

Veterans who will retire within 12 months of loan closing satisfy VA’s occupancyrequirement when the following is presented: Copy of veteran’s application for retirement submitted to current employer

(must indicate a retirement date within 12 months of loan closing) Evidence borrower will meet ratio and residual income requirements using

post- retirement income

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POWER OF ATTORNEYVA permits the following Powers of Attorney for active-duty military personnel stationedoverseas and other veterans who cannot be present at closing:

General Power of Attorneyo Veteran must sign purchase agreement and initial 1003

Specific Power of Attorneyo Veteran does not need to sign the 1003, purchase agreement or any other

application documentso Specific power of attorney must include all of the following information: Entitlement – Must state the veteran intends to use all or a specified amount of

entitlement – A specific amount is not required, but the veteran mustacknowledge the intent to use VA entitlement. In the event the veteran providesan amount, it must be equal to or greater than the amount of entitlement used.

Loan Purpose – Must state veteran intends to purchase, construct, or refinance Property – Must list address and legal description, if available Sales Price – Must state the purchase price for the property Loan Terms – Must state loan type and term Occupancy – Veteran must state he or she intends to meet VA occupancy

requirements Verify veteran is alive and not missing in action on the day of closing for all loans that

close with either general or specific powers of attorney – Missing in action certification isnot required for veterans who are retired or discharged from the military and thereforenot classified as active-duty. However, the alive and well verification is also required forretired or discharged veterans who are not on active-duty. Additionally, when theveteran will sign as power of attorney for a non-veteran co-borrower, VA still alsorequires an alive and well confirmation for the non-veteran co-borrower. E-Mail, fax or letter from the veteran or If veteran cannot be reached due to deployment, E-Mail, fax or letter from

veteran’s commanding officer or If neither veteran or commanding officer can be reached, provide lender

certification of conversation with commanding officer or rear detachmentpersonnel – Include the following information in the lender certification: Name and rank/title of VA personnel with whom you communicated Date of conversation Method of communication, including phone number, if applicable

Powers of attorney for non-veteran spouses are permissible. A specific power of attorneyas described above is not required, but the POA must be specific to the loan and includethe property address.

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All signatures on the power of attorney must be notarized, and the power of attorneymust be reviewed by a LenderLive underwriter. All signatures must match thesignatures in the file

Powers of attorney are not permitted for cash-out transactions in which the borrowerconsolidates non- mortgage debt and/or receives cash back at closing unless theveteran is deployed overseas

There must be more than one borrower on the loan and at least one borrower must bepresent at closingo POA is not allowed for single borrower transactions unless LenderLive has borrower

experience and can compare signatures from previous transactions Title policy may not include any exceptions related to the POA

POWER OF ATTORNEY RESOURCES VA Pamphlet 26-7, Chapter 9

PROPERTY ELIGIBILITYELIGIBLE

Owner occupancy required for all loans 1 to 4-Units

o 3 to 4-Unit properties are ineligible if the loan is a cash-out transaction and theborrower consolidates non-mortgage debt and/or receives cash back at closing

o Cash-out transactions in which the borrower does not receive cash back orconsolidate non- mortgage debt are permitted for 1 to 4-Units

Condominiums – must be listed as approved on VA Approved Condominium SearchEngine

PUDso PUDs must have all three of the following characteristics or VA does not consider the

project to be a PUD: Common areas and Mandatory HOA membership and Mandatory HOA fee

o Homeowner’s assessments must be subordinate to the VA-guaranteed mortgage –For purchase and cash-out refinance transactions (not required for IRRRLtransactions or PUDs located in Florida or Minnesota), provide one of the followingitems as documentation of HOA assessment subordination:

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PUD by-laws indicating all homeowner’s association assessments aresubordinate to mortgage liens (At minimum, LenderLive must review the titlepage, table of contents and corresponding HOA lien subordination sectionreflecting the page(s) indicated in the table of contents) or

Subordination agreement executed by a representative of the homeowner’sassociation or

Title commitment stating that the title company will insure over any homeowner’sassociation assessment liens or

Letter on letterhead from the title company indicating that PUD liens cannot takefirst lien position in the state in which the property is located or

ALTA 9 or ALTA 5 title endorsement that references HOA assessments T-17 endorsement that references HOA assessments – Texas only 60-Day letters may not be provided in lieu of one of the documents above

Modular homes Properties having shared wells, subject to the following documentation:

o Recorded shared well agreement that provides irrevocable water rights to the subjectproperty

Leaseholdso Leasehold properties require VA approval prior to ordering the appraisal. Approval is

obtained through the VA Central office – For additional documentation requirements,refer to VA Pamphlet 26-7, Chapter 10.06

o Attorney’s opinion letter stating all warranties are met is required.

INELIGIBLE Any property where the seller is not the owner of record 3 to 4-Unit properties are ineligible for cash out transactions in which the borrower

consolidates non-mortgage debt and/or receives cash back at closing Second homes Bed and breakfasts, group homes, etc. Investment properties

Condotels

Non-owner occupied properties – However, provided the veteran provides certification ofprior occupancy, IRRRLs may finance a second home or investment property

Condominium projects not on the VA approved list Single-wide manufactured homes Properties having both a stick-built and manufactured home located on the same parcel

or property unless the manufactured home is unoccupied and utilities are not hooked up Modular On-Frame properties

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Manufactured homes Mixed-use properties Co-operatives Working farms, ranches and orchards Condominiums without Homeowner’s Associations are ineligible for LenderLive financing Properties located in a “cancer cluster” or other health hazard area unless the local

health authority provides written certification that the subject property is not affected bythe health hazard and the borrower provides a written certification acknowledging thehealth hazard and its resolution

Properties having Chinese drywall or properties previously having Chinese drywall,regardless of any drywall removal and/or efforts to cure the damage

Graduated Payment Mortgages (GPMs) Growing Equity Mortgages (GEMs) Energy Efficient Mortgages (EEMs) Down Payment Assistance Programs (DPAs)

PROPERTY FLIPPING Seller must be owner of record Seller must have owned the property for at least 30 days – Purchase agreement must be

executed by borrower(s) at least 31 days after the seller acquired the property The following sellers are exempt from the 30 day seller seasoning requirement:

o State and Federally chartered financial institutions and government sponsoredentities (Fannie Mae and Freddie Mac)

o Sales by HUD of its real estate owned propertieso Local and State government agencieso Non-profits approved to purchase HUD REO propertieso Sales of properties located in presidentially-declared disaster areas, provided the

exemption is announced by an FHA mortgagee lettero Sales of properties acquired through inheritance – Seller’s inheritance must be

documentedo Sales of properties acquired by employers or relocation agencies in connection with

relocations of employeeso Sales of REO properties by lenders and property disposition firms they hire or with

whom they are affiliatedo Builders selling a newly built home or building a home for a borrower

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o For Profit or non-profit entities that purchase abandoned or foreclosed propertiesusing Neighborhood Stabilization Program funds are temporarily exempt from the90-day lock-out period. Seller must be a duly incorporated entity A copy of the written agreement granting the seller NSP funds is required

PROPERTY INSPECTIONSTERMITE INSPECTIONS

Required for properties located in areas where the termite infestation probability is ”veryheavy” or “moderate to heavy” according to the Termite Infestation Probability Mappublished in the International Residential Code – Refer to Geographic Restrictionssection for state requirementso Validity period is 90 days. If the loan will not close within the 90 day validity period, a

new inspection is required prior to closingo Not required for IRRRL transactions

If the property is a low-rise condo or high-rise condo, the termite inspection is requiredonly if the appraiser notices a potential problem

If the termite inspection indicates damage from current or prior infestation, a structuralinspection is required

Must be signed by the borrower prior-to-closing

WELL INSPECTIONS When required by the local building, planning or health authorities having jurisdiction over

the property, hook-up to available public water is required Water quality must meet the requirements of the health authority that has jurisdiction

over the property location If there are no local requirements, water quality must meet the maximum contaminate

requirements set forth by the Environmental Protection Agency - – At minimum, thereport must evaluate lead, nitrates, nitrites and total and fecal coliform

Water test must be performed by the health authority that has jurisdiction over theproperty location. If the health authority is unable to complete water analysis in a timelymanner, a commercial testing lab or licensed sanitary engineer acceptable to the healthauthority may perform the water test

Unless the local health authority indicates otherwise, water and well certifications arevalid for 90 days

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SEPTIC INSPECTIONS When required by the local building, planning or health authorities having jurisdiction over

the property, hook-up to available public sewer is required All septic systems must adequately dispose of waste in a safe method that does not

create a nuisance or endanger the public health Unless the local health authority indicates otherwise, septic certifications and inspections

are valid for 90 days

INSPECTION REQUIREMENTS FOR REQUIRED REPAIRS Repair inspections must confirm all required repairs are satisfactorily completed and

must meet the requirements below:o Inspections completed by the appraiser may be on any of the following forms: The appraiser’s letterhead Fannie Mae Form 1004D or Freddie Mac Form 442 – Update Completion Report HUD Form 92051 – Compliance Inspection Report LenderLive does not accept a lender certification as evidence of repair

completion for any required repairs

DECLARED DISASTERS If the loan for a property located in a declared disaster area closes prior to the date the

disaster is declared, VA will guaranty the loan without regard to the disaster If the property is located in a declared disaster area and the appraisal is completed prior

to the disaster but does not close until after the disaster is declared by the President, allof the following certifications and requirements must be provided prior to closing,funding and/or loan purchase:o Lender Certification containing the following verbiage: “This is to affirm that the

property which is security for VA loan number (insert VA case number) has beeninspected to ensure that it was not damaged in the recently declared disaster or hasbeen restored to its pre- disaster condition or better.” The certification must be signed and dated by a representative of the Lender and

must provide the signer’s titleo Veteran Certification containing the following verbiage: “I have inspected the

property located at (insert full property address) and find its condition now to be

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acceptable to me. I understand that I will not be charged for any disaster-relatedexpenses and now wish to close the loan.” The sentence related to disaster-related expenses is required for purchase

transactions only The certification must be signed and dated by the veteran

o The VA underwriter must make the following comments on the VA Loan Summary,VA Form 26-0286: “Lender and Veteran Disaster Certifications Enclosed” If local laws require a property inspection, building permits or a certificate of

occupancy, copies of the required items meeting local building authority criteriamust be included in the loan file

o Veterans may not pay for disaster inspections or repairso If there appears to be any indication of decline in value since the original appraisal

was completed, the VA fee appraiser must update the value on the appraisal. The veteran may pay for the appraisal revision

o The lender must determine the borrower remains employed and income has notdeclined as a result of the disaster or any other factors

o LenderLive requires an interior and exterior inspection from a licensed appraiser,home inspector or fee appraiser verifying all of the following: Improvements are still standing and in acceptable condition Neighborhood condition A photograph of the subject property’s interior and exterior If property damage is found, the inspector must provide an itemized list of the

damages with repair estimates If the property damage is structural or there are other complex damages, a

qualified third party must inspect the damages and provide evidence the propertyhas been satisfactorily repaired

Required repairs must be completed prior to the loan being cleared to close

DISASTER RESOURCES FEMA Disaster Website VA Loan Guaranty Policy Regarding Natural Disasters

STATE AND LOCAL REQUIREMENTS LenderLive will generally rely on the appraiser and realtor (via the sales contract) for

notification of mandatory state or local inspections

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CHINESE DRYWALL If LenderLive is made aware that Chinese drywall is currently present or previously

existed in the home, we will not approve, fund or purchase the loan, regardless of anydrywall removal and/or efforts to cure the damage

PROPERTY INSPECTION RESOURCES VA Pamphlet 26-7, Chapter 12

PURCHASES / PURCHASE AGREEMENTSDEPARTURE OF CURRENT RESIDENCERental income from the property the borrower is vacating may be used to offset the currentmortgage payment, provided there is no evidence the property will be difficult to rent

Document the rental income with a current lease agreement Under no circumstances, may rental income be included in the borrower’s income If there is no current lease agreement, the underwriter may offset the payment with

prospective rental income, provided there is evidence the local rental market is verystrong. To demonstrate the amount of the prospective rent and the local rental market isstrong, obtain one of the following in writing:o Appraiser’s analysiso Analysis from a real estate agent having no interest in the transaction. The analysis

may not come from the listing or selling Realtor or any Realtor who is employed witheither Realtor

QUALIFYING RATESFIXED RATE MORTGAGES

Without Buydown - Borrowers are qualified at note rate With Buydown – Borrowers are qualified at note rate (Buydowns are temporarily

ineligible)

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ADJUSTABLE RATE MORTGAGES 5/1 ARMS – Borrowers are qualified at note rate

RATIO VA has implemented a maximum total DTI ratio of 41% for all loans.

o Loans that exceed the maximum allowed ratio may be acceptable, only if significantcompensating factors are documented and are recorded,

o Or if the loan receives either an Accept from LP or an Approve from DU.o In addition the residual income calculation requirements must be met.

The following items must be included in the borrower’s ratio:o PITI for subject loano All other real estate debts, including taxes and insurance for properties owned free

and clearo Installment debtso Revolving debts Revolving debt paid off prior-to or at closing may be excluded from the ratios

o Auto leases, regardless of remaining termo Child supporto Private school tuitiono Alimonyo Child care expenses for all children ≤ 12 years of age – Child care expenses may be

excluded when the borrower’s 4506T transcripts reveal no child care deduction andborrowers meet one of the following criteria: Spouse does not work or Borrowers provide proof that there are no child care expenses

o Union dues and employment related expenseso Significant commuting expenses

In a community property state - (Alaska, Arizona, California, Idaho, Louisiana, Nevada,New Mexico, Texas, Washington and Wisconsin), debts of non-purchasing spousesmust be counted in the borrower’s qualifying ratioso Underwriters must base the credit decision, in part, on the non-borrowing spouse’s

credit history Derogatory items on the non-borrowing spouse’s credit report are evaluated on a

case- by-case basis CAIVR verification for non-borrowing spouses in community property states is

required. Delinquent Federal debts of the non-purchasing spouse must besatisfied prior to closing the new VA loan

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VA permits consideration of the non-borrowing spouse’s income when debts arebeing included in the ratios because the property is located in a communityproperty state – The non-purchasing spouse’s income is not run throughautomated underwriting

The following items may be excluded from the ratio:o Installment debts with fewer than ten payments remaining, provided they do not have

a severe impact on the family’s ability to make payments on the obligationo 401k loanso Student loans that are deferred more than 12 months after closingo Co-signed debts with the following documentation: Evidence payments have been made in a timely manner for the most recent 12

months and Evidence payments have been made by the person for whom the borrower co-

signed If the person making the payments is not a borrower on the co-signed debt, the

payment must be included in the ratio and residual income calculations

AUTOMATED UNDERWRITINGLoan receives an AUS “approve” or “accept” response

Loans that receive an automated “approve” or “accept” response may follow theapproved ratio in the findings, subject to underwriter evaluation for data integrity

RECENTLY LISTED PROPERTIESPURCHASES

Seller must be owner of record for 30 days See Seasoning for exceptions to seller seasoning requirements

CASH-OUT REFINANCES Property must be off the market at least six months prior to application

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CASH-OUT REFINANCEBorrower does not receive cash back or consolidate non-mortgage debt.

Property must be off the market at least one day prior to application – Evaluated on acase-by-case basis

INTEREST RATE REDUCTION REFINANCING LOANS(IRRRRL)

Property must be off the market at least one day prior to application Evaluated on a case-by-case basis

REFINANCE TRANSACTIONSCASH-OUT REFINANCE TRANSACTIONS

Any refinance other than an Interest Rate Reduction Refinancing Loan (IRRRL) isclassified as a cash-out refinance, regardless of whether borrower receives cash orconsolidates debto A veteran who is not on title at the time of application may be added to title prior to

closing and execute a refinance transaction for a spouse’s property, provided all ofthe following requirements are met: The veteran is the spouse of the borrower on the note for the loan being

refinanced The spouse remains as a co-borrower on the subject refinance The mortgage history on the subject property is acceptable and the refinance

transaction is not a bail out of an existing borrower who is not credit-worthy The veteran meets all occupancy requirements and is added to title prior to

closing If the existing obligor on the loan being refinanced is not the veteran’s spouse

and/or will not be a co-borrower on the refinance transaction, the transactionmust be executed as a purchase, and the veteran cannot be added to title untilthe loan closes

LenderLive’s maximum LTVs and credit scores are based on whether the borrowerreceives cash at closing and/or consolidates non-mortgage debt:o Borrower does not receive more than $500 cash back and/or consolidate non-

mortgage debt:

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Maximum LTV – 100% 1-2 Units - All borrowers must have a minimum credit score of 620 3 to 4-Unit property – All borrowers must have a minimum credit score of 640 Secondary liens other than purchase money seconds being paid off with loan

proceeds must be seasoned at least 12 months and may not have had any drawstotaling more than $1000 in the most recent 12 months unless the draws were fordocumented home improvements

o Borrower receives cash back at closing and/or consolidates non mortgage debt: Single family residence – All borrowers must have a minimum credit score of

640 2-Units – All borrowers must have a minimum credit score of 680 3 to 4-Units - Ineligible Maximum LTV:

Single Family Residence 95% 2-Unit residence – 85%

Existing lien of at least $1 required – Property may not be owned free and clear Short refinance transactions are not permitted if the veteran receives cash back and/or

consolidates non-mortgage debt Cash-out explanation required

INTEREST RATE REDUCTION REFINANCING LOAN (IRRRL) VA to VA streamline refinance For Appraisal and AVM requirements, refer to Appraisals All borrowers must meet LenderLive’s minimum credit score requirement

o All borrowers must have a minimum credit score of 620o Pricing adjustments may applyo If the mortgage history is not included on the credit report, a supplemental credit

report for the mortgage history is required All mortgage late payments require written explanation and evidence of

extenuating circumstances Borrowers having more than two 30-day or one 60-day late mortgage payment in

the most recent 12 months are ineligible Double-wide manufactured homes - Not permitted Maximum cash in hand - $500 – Must be the result of documented overages While ratios are not calculated unless the principal and interest payment increases 20%

or more, LenderLive does not approve IRRRLs if none of the borrowers have income.The 1003 must include the current employer’s name, address, phone number,

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borrower’s job title and length of time on job. The following documentation requirementsapply:o Salary hourly or commission income – LenderLive performs a verbal verification of

employmento Active-duty military income – LenderLive performs a verbal verification of

employmento Borrower works in a seasonal profession but is currently receiving unemployment

income – Proof the borrower is currently receiving unemployment income andLenderLive performs a verbal verification of employment evidencing the borrowerhas been employed in a seasonal position at least two years. If the climate in whichthe borrower works indicates the borrower should be currently employed in his or herseasonal position, but the borrower is currently receiving unemployment, the loan willbe denied

o Self-employed or partnership income – Provide a copy of a current valid businesslicense or evidence of the business’ existence through Lexis Nexis

o Rental income as the borrower’s only source of income – Copy of current lease(s)required

o Social security income and borrower is ≥ 62 years of age – No verification is requiredo Pension income – Provide a bank statement documenting direct deposit of the

borrower’s pension income or a copy of the borrower’s pension award lettero IRA or 401k distribution income: - Provide a copy of the borrower’s written distribution

plan from the investment company or three months’ bank statements identifying theconsistent monthly deposit

o Child support or alimony income – Provide a current friend of the court letter or copyof the borrower’s divorce decree or support order and the most recent three months’bank statements showing consistent deposits in the amount of the support oralimony

o Disability income or social security income and borrower is ≤ 62 years of age –Provide a bank statement documenting direct deposit of income or a copy of theborrower’s social security award letter or a copy of the borrower’s disability awardletter or a Certificate of Eligibility indicating the veteran receives VA disabilityincome

o Loans that have two borrowers who were both employed on the application for loanbeing refinanced but one is no longer employed – As long as acceptable incomeverification as described above is obtained for the employed or income-receivingborrower, no further verification is needed

o Loans having no borrowers who receive income - Ineligible Full income documentation required when the new P & I payment will increase by 20% or

more New loan must accomplish both of the following:

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o Decrease in principal and interest payment ando Decrease in interest rateo If IRRRL shortens the loan term, only the interest rate must decreaseo If IRRRL refinances an existing ARM loan into a fixed rate loan, neither the principal

and interest payment reduction nor the interest rate reduction are required Eligible borrowers:

o All parties on the original loan may obtain IRRRL financing jointly (or solely if loanwas in veteran’s name only), provided the veteran still owns property – If theveteran’s current spouse was obligated on the original loan, he or she must remainon the note and in title

o Veteran obligated on the original loan may obtain IRRRL financing solely afterdivorce from or death of a spouse with whom he or she was obligated on originalloan

o Veteran obligated on the original loan may obtain IRRRL financing with a newspouse when veteran was unmarried at time of original loan

o Veteran obligated on the original loan may obtain IRRRL financing with a differentspouse after a divorce from the original co-borrower spouse or when the original co-borrower spouse is deceased

o Un-remarried spouse of deceased veteran may obtain IRRRL financing, provided heor she was obligated on the loan being refinanced

o Veteran obligated on the original loan may obtain IRRRL financing solely whenoriginal loan being refinanced was joint with non-veterans

Ineligible Borrowers:o A non-veteran ex-spouse of a veteran may not obtain IRRRL financing, even when

home was awarded to him or her in a divorce settlemento A non-veteran widow or widower of a deceased veteran may not obtain IRRRL

financing when he or she was not obligated on the original loan being refinanced,regardless of whether they were married at the time the original loan closed

o A non-veteran may not obtain IRRRL financing, even when he or she was obligatedon the original loan being refinanced

o LenderLive will not permit a different veteran who is substituting entitlement for theveteran on the loan being refinanced

For all IRRRL loans, regardless of whether VA requires the interest rate and/or paymentreduction, the Veteran must acknowledge the following on Old vs. New LoanComparison, VA 26-8923o The differences between the existing and new VA loans Unless the borrower is refinancing from an ARM to fixed rate loan or reducing the

loan term, the principal and interest payment must decrease at least 4%o The time it will take to recoup the costs (closing costs, pre-paid expenses, discount

points and funding fee) associated with the loan (This part of the form is not required

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when the payment is increasing as permitted for an IRRRL loan that reduces theborrower’s loan term or the refinance of an existing VA ARM loan to a fixed rateloan) Unless the borrower is refinancing from an ARM to fixed rate loan or reducing the

loan term, the number of months to recoup may not exceed 48. When totalingthe closing costs on line D of the Old Vs. New Loan Comparison, pre-paidexpenses and the funding fee are not included

o Fully executed form must contain the correct information for both loans Loan amount includes the following – To calculate the loan amount, use the Interest

Rate Reduction Refinancing Loan Worksheet, VA Form 26-8923:o Existing loan balanceo + Allowable closing costs (origination fee is calculated as a percentage of the payoff

minus any cash payments by the veteran – refer to Interest Rate ReductionRefinancing Loan Worksheet, VA Form 26-8923)

o + Up to two discount pointso + Funding feeo LenderLive’s maximum $1,000,000 loan limitation applieso Neither the county loan limit nor the veteran’s remaining entitlement are considered

Certificate of Eligibility not required Maximum loan term is the original loan term of the loan being refinanced plus ten years,

not to exceed 30 years

RENTAL INCOMECONVERTING EXISTING HOMES TO RENTALSRental income from the property the borrower is vacating may be used to offset the currentmortgage payment, provided there is no evidence the property will be difficult to rent

Document the rental income with a current lease agreement Under no circumstances, may rental income be included in the borrower’s income If there is no current lease agreement, the underwriter may offset the payment with

prospective rental income, provided there is evidence the local rental market is verystrong

2-4 UNIT SUBJECT PROPERTYRental income from the non-owner occupied units may be used to qualify, provided all of thefollowing documentation is provided:

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Six months PITI reserves for the subject property and Evidence the borrower has a prior history of managing rental properties or other

background involving both property maintenance and rental For existing construction properties, rental income is calculated using 75% of the verified

prior rent of the non-owner occupied units For proposed construction properties, rental income is calculated using 75% of the

appraiser’s estimate of fair market rent If rental income is not used to calculate the ratio and residual income, the above

documentation is not required

RENTAL INCOME – INVESTMENT PROPERTIES THAT ARENOT THE SUBJECT PROPERTYRental income from investment properties owned by the veteran may be used to qualify,provided all of the following documentation is provided:

Three months PITI for the subject property and Two years individual tax returns plus applicable schedules indicating rental income for

the properties. Depreciation may be added back to the net rental income reflected onthe borrower’s Schedule E

In the event the tax returns do not show income for the investment property, rentalincome may be used to qualify the borrower if all of the following is documented:o Evidence the borrower has a prior history of managing rental properties or other

background involving both property maintenance and rental ando Copies of lease agreements for the properties ando Evidence of strength of the local rental market

If rental income is not used to calculate the ratio and residual income, the abovedocumentation is not required

RESIDUAL INCOMEResidual income is the amount of cash remaining for family support after the borrower(s) havesatisfied all monthly obligations. All borrowers are required to meet VA’s residual incomeguidelines based on the following loan characteristics:

Location of propertyo If the veteran or spouse is an active-duty or retired veteran and is able to take

advantage of the benefits resulting from the use of military facilities located near the

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subject property, the residual income requirement in the tables below is reduced by5%

Number of persons residing in the home, regardless of relationship to the veteran and/orwhether they will take title to the propertyo Even children who reside in the home part-time must be included in the household

size If the veteran’s spouse is not a co-borrower and has stable and reliable income

sufficient to support his or her living expenses, including all of his or her debt andresidual income requirement, the spouse may be excluded from the number ofpersons in the household

If the borrower pays documented child support for a child, the child need not beincluded in the number of persons in the household

If the veteran receives documented foster care income, foster children need notbe included in the household size. The foster care income is not included in theborrower’s ratios, and the child is excluded from the number of persons in thehousehold

o AUS will not calculate the residual income correctly unless the ages of all occupantsare entered on the loan application correctly.

Loan amount Underwriters who approve borrowers with a debt-to-income ratio that exceeds 41% must

document at least 20% more residual income than VA’s requirement for the householdsize, loan amount and property location or a supervisory underwriter’s signature andcompensating factors are required. If the ratio for an underwritten loan exceed 41% andthe veteran does not have at least 20% more residual income than VA’s requirement forthe loan, the underwriter must provide written justification for approvalo For the purposes of calculating ratios only, non-taxable income may be grossed up

by the applicable state and federal income tax rate. Use current income taxwithholding tables to determine the appropriate tax rates

o Non-taxable income may not be grossed up when calculating the veteran’s residualincome

o To complete the VA Loan Analysis – VA Form 26-6393, VA recommends using theborrower’s actual gross income for calculation purposes and indicating the grossedup ratio in Section 47, Remarks

The following items must be deducted from the total gross income when calculatingresidual income:o All items used in calculating the ratioo Maintenance and utility expense – calculated at 14 cents per square foot of living

space in the home (example: 1,000 square foot home X 14 cents = $140maintenance and utility expense)

o Social Security taxes – 4.200% of monthly income

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o Federal income taxes If borrower has an MCC (Mortgage Credit Certificate), reduce the federal income

taxes by the amount of the MCC tax credit Must provide a copy of the Mortgage Credit Certificate If the percentage of the MCC credit is more than 20%, the annual tax credit is the

lesser of $2000 or the borrower’s tax liability For MCC calculation instructions, refer to VA Pamphlet 26-7, Chapter 4.3.b

o State income taxes

SEASONINGPURCHASES

Seller must be owner of record Seller must have owned the property for at least 30 days – Purchase agreement must be

executed by the borrower(s) at least 31 days after the seller acquired the property The following sellers are exempt from the 30 day seller seasoning requirement:

o State and Federally chartered financial institutions and government sponsoredentities (Fannie Mae and Freddie Mac)

o Sales by HUD of its real estate owned propertieso Local and State government agencieso Non-profits approved to purchase HUD REO propertieso Sales of properties located in presidentially-declared disaster areas, provided the

exemption is announced by an FHA mortgagee lettero Sales of properties acquired through inheritance – Seller’s inheritance must be

documentedo Sales of properties acquired by employers or relocation agencies in connection with

relocations of employeeso Sales of REO properties by lenders and property disposition firms they hire or with

whom they are affiliatedo Builders selling a newly built home or building a home for a borrowero For Profit or non-profit entities that purchase abandoned or foreclosed properties

using Neighborhood Stabilization Program funds are temporarily exempt from the90-day lock-out period. Seller must be a duly incorporated entity A copy of the written agreement granting the seller NSP funds is required

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CASH-OUT REFINANCES No seasoning requirement – Value is based on appraised value, regardless of length of

ownership

INTEREST RATE REDUCTION REFINANCING LOANS(IRRRRL)

IRRRL financing is permitted for any VA-guaranteed loan, regardless of seasoning –Early loan payoff penalties may apply

When an appraisal or AVM is required, value is based on the appraised or AVM value,regardless of seasoning

SELLER CONTRIBUTIONS Seller may pay all reasonable and customary closing costs and discount points without

limit Seller may pay up to 4% of the purchase price toward any combination of the following:

o Pre-paid expenseso Funding feeo Buydown feeso Gifts, such as lawn mowers, televisions, etc.o Payoff of borrower liabilities, such as collections, judgments or other credit balanceso Rent credits for any property other than the subject property (borrower is receiving

rent credit for rents paid on current residence, but subject property is different thancurrent residence)

SOCIAL SECURITY VERIFICATION A fully executed Social Security Number Validation Form, SSAS 89 required in all closing

packages

SUBORDINATE FINANCINGSubordinate financing includes any financing that creates a lien against the subject property,even if it is a “soft”, “silent”, or “forgivable” second.

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Refer to the Down Payment Assistance section of this document for guidance on DPAand community seconds

Subordinate financing programs typically wire funds to the closing agent – Wire transferdocumentation must be included in the file prior to funding or purchase

Homebuyer Assistance Programs that are administered by government entities haveblanket approval with VA

Homebuyer Assistance Programs administered by private entities must also beapproved by VA prior to loan closing – Provide the following documents to the RegionalLoan Center having jurisdiction over the state in which the property is located:o Program descriptiono Sample loan documents

Proceeds from the second may be used to pay closing costs and down paymento Unallowable closing costs and fees may not be paid by the Homebuyer Assistance

Program When the sales price exceeds the appraised value, secondary financing may not be

used to pay the required down payment for the difference between the sales price andthe appraised value

Veteran may not receive cash back If repayment is required (loan is not a “silent” second), payment must be included in the

ratio If the second mortgage requires the borrower to occupy the property for a specified

length of time, the borrowers must certify they understand the repayment requirements If the Homebuyer assistance program requires the borrower to pay fees that exceed

$250, contact the regional loan center that has jurisdiction over the state in which theproperty is located for approval

Second mortgage may not restrict the veteran’s ability to sell the property any more thanthe VA first mortgage, and it should be assumable by creditworthy purchasers (Secondmortgages from instrumentalities of government are eligible, regardless of assumability)o VA requires evidence that all subordinate financing is assumable for purchase and

refinance transactions. The assumability requirements may be waived for refinancetransactions only, provided the veteran provides a signed and datedacknowledgement stating: The veteran is aware the secondary financing is not assumable and The veteran wishes to proceed with the VA refinance

Copies of the note and mortgage are required:o Purchase transactions – Copies of the fully executed note and mortgage are required

at closing and must be provided prior to funding or loan purchase

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o Refinance transactions – Copies of the fully-executed note and mortgage arerequired prior-toclosing

TITLE Effective date of title commitment must be no older than 90 days as of initial underwrite

and within 120 days of the note All borrowers take title to the property Non-borrowing spouses are permitted to take title with a borrowing spouse Non-borrowers who are not married to the borrower may not take title under any

circumstance Veterans who are on title may obtain a cash-out refinance, even if they are not obligated

on the existing lien(s) Properties held in a life estate are ineligible To comply with Federal Housing Finance Agency regulations codified in Title 12, Part

1228 of the Code of Federal Regulations, properties encumbered by private transfer feecovenants are ineligible

Borrowers may take title in a trust, subject to the following requirements:o The trust must be a living revocable trust also known as a “family trust” or an “inter

vivos trusto The title company must insure over the trust with no exceptions for the trust or

trusteeso A copy of the trust must be included in the loan submission packageo The settler or grantor must be a natural person and must also be the trustee or one

of the co- trusteeso Full title must be vested in the trust with no other ownerso The primary beneficiary of the trust must be the settler or grantor. If there’s more

than one settler or grantor, there may be more than one primary beneficiary,provided the income or assets of at least one of the grantors or settlors will be usedto qualify for the mortgage and that grantor or settler will occupy the property andsign the mortgage instruments in his or her individual capacity

o The trust document must give the trustee or trustees the authority to mortgage trustassets and to incur debt on behalf of the trust and to hold legal title to and managetrust assets

o An attorney’s opinion letter stating all of the requirements above are met must beprovided

For VA’s title requirements and a list of acceptable title restrictions, refer to VA Pamphlet26-7, Chapter 9

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CASH-OUT REFINANCE TRANSACTIONSAny refinance other than an Interest Rate Reduction Refinancing Loan (IRRRL) is classified asa cash-out refinance, regardless of whether borrower receives cash or consolidates debt

A veteran who is not on title at the time of application may be added to title prior toclosing and execute a refinance transaction for a spouse’s property, provided all of thefollowing requirements are met:o The veteran is the spouse of the borrower on the note for the loan being refinancedo The spouse remains as a co-borrower on the subject refinanceo The mortgage history on the subject property is acceptable and the refinance

transaction is not a bail out of an existing borrower who is not credit-worthyo The veteran meets all occupancy requirements and is added to title prior to closingo If the existing obligor on the loan being refinanced is not the veteran’s spouse and/or

will not be a co-borrower on the refinance transaction, the transaction must beexecuted as a purchase, and the veteran cannot be added to title until the loancloses

ENERGY LOAN TAX ASSESSMENT PROGRAM (ELTAP)LIENS

Not permitted

PROPERTY ASSESSED CLEAN ENERGY (PACE) LIENS Not permitted

UNEXPIRED RIGHTS OF REDEMPTION – ALL STATESEXCEPT ALABAMA

Unless the property is located in the State of Alabama, LenderLive will not approveand/or purchase any loan having an unexpired right of redemption unless the purchaseagreement, title and appraisal all show the same seller who is the original mortgagoro Title may show lis pendens notices from the bank or mortgageeo Purchase contract may indicate a short sale

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Unexpired Rights of Redemption – Alabama Only Purchase agreement, title andappraisal will be in the name of the lender and not the original mortgagor.o Title commitment will show one or both of the following acceptable recorded deeds: Foreclosure from John Doe (original mortgagor) to Anybank (foreclosing lender)

followed by the date on the deed and the recording date When the foreclosing lender deeds the property to HUD, Fannie Mae, Freddie

Mac, VA or GNMA, there will be a special warranty deed from Anybank(foreclosing lender) to one of the GSEs listed above followed by the date on thedeed and the recording date

o If the above referenced deeds are dated within the most recent 12 months, the titlecommitment must contain a specific exception for the unexpired right of redemptionand affirmatively insure, without qualification, the mortgagee (LenderLive) against alllosses arising out of the exercise of any outstanding right of redemption

AUTOMATED UNDERWRITING SYSTEMS All loans, except IRRRLs, must be run through DU or LP Underwriters must address all recent derogatory credit and provide justification for loan

approval, regardless of AUS response Loans receiving an “approve” or “accept” response are eligible for documentation relief.

Read the findings carefully for required documentation A LenderLive underwriter will review and determine data integrity of all information input

to the automated underwriting engine

MANUAL DOWNGRADESVA requires the underwriter to manually downgrade an “approve” or “accept” response to a“refer” response and perform a complete manual underwrite based on standard VA guidelines ifany of the following conditions exist:

Verification of a payment history for a debt not reported on the credit report reveals morethan one 30-day late payment in the most recent 12 months

Any mortgage debt, whether included on the credit report or verified directly from the lienholder, reveals more than one 30-day late payment in the most recent 12 months

If any debt on the credit report is past due, and the last update was > 90 days ago,current status is required. If the debt is past due by 90 or more days, the “approve” or“accept” response must be manually downgraded

Borrowers for whom the CAIVR system indicates the borrower(s) have delinquent federaldebt may not be approved

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Stacking OrderStacking Order for Purchase/Cash-out Refinance Loans

1. Lender’s cover or transmittal letter (if used).2. Evidence of compliance with Notice of Value (NOV) requirements; such as, final

compliance inspection, termite certification, and/or warranty.3. Uniform Residential Loan Application (URLA) with revised VA Form 26-1802a,

Department of Housing and Urban Development (HUD)/VA Addendum to URLA.a. These forms may be signed and dated anytime from the date of initial application

to the date of loan closing. These forms must be properly completed and legible,but do not have to be typed.

4. Purchase Agreement including all contract addendums and the signed VA EscapeClause.

5. HUD-1, Settlement Statement6. HUD-1 itemization attachments (Breakout of HUD-1 lines 801 and 802, 1100 (title fees),

200 (credits), etc.).7. VA Form 26-1820, Report and Certification of Loan Disbursement8. VA Form 26-8497, Request for Verification of Employment, and other verifications of

income such as pay stubs and tax returns.a. Reference: VA Pamphlet 26-7, section 2 of chapter 4.

9. Credit Alert Verification Report System (CAIVRS): borrower/coborrower10. All original credit reports obtained in connection with the loan and any related

documentation such as explanations for adverse credit if required.11. VA Form 26-8497a, Request for Verification of Deposit, and other related documents

(Alternative documentation: Original or certified true copies of last two bank statements).12. For Automated Underwriting cases: Feedback Certificate and underwriter’s certification

(acceptable variations on the documentation required in items 17, 18, and 19 below, andthe underwriter’s certification, are explained in VA Pamphlet 26-7, section 8 of chapter4).

13. VA Form 26-6393, Loan Analysis14. VA Form 26-0286, VA Loan Summary Sheet15. If a loan is submitted more than 60 days after loan closing, a statement signed by a

corporate officer of the lender which identifies the loan, provides the specific reasons forlate reporting and certifies that the loan is current. This statement must be submittedwith any late request for issuance of a Loan Guaranty Certificate (LGC).

16. VA Form 26-0592, Counseling Checklist for Military Homebuyers, if the applicant is onactive duty.

17. TIL – Truth in Lending18. GFE – Good Faith Estimate

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19. Closing Cost Estimate (future Doc)20. Other necessary documents (for example – but not limited to, Power of Attorney if used,

Lenders Loan Quality Certification).

Stacking Order for IRRRLs1. Lender’s cover or transmittal letter (if used).2. Uniform Residential Loan Application (URLA) with revised VA Form 26-1802a,

Department of Housing and Urban Development (HUD)/VA Addendum to URLA.a. These forms may be signed and dated anytime from the date of initial application

to the date of loan closing. These forms must be properly completed and legible,but do not have to be typed.

3. HUD-1, Settlement Statement4. HUD-1 itemization attachments (Breakout of HUD-1 lines 801 and 802, 1100 (title fees),

200 (credits), etc.).5. VA Form 26-1820, Report and Certification of Loan Disbursement6. Statement signed by the Veteran acknowledging the effect of the refinancing loan on the

Veteran’s loan payments and interest rate.a. The statement must show the interest rate and monthly payments for the new

loan versus that for the old loan.b. The statement must also indicate how long it will take to recoup ALL closing

costs (both those included in the loan and those paid outside of closing).c. If applicable, the Veteran’s statement may be combined with the lender’s

certification that the Veteran qualifies for the new monthly payment whichexceeds the previous payment by 20% or more.

7. VA Form 26-8923, Interest Rate Reduction Refinancing Loan Worksheet8. VA Form 26-8937, Verification of VA Benefits, (if applicable).9. Lender’s certification that the prior loan was current (not 30 days or more past due) at

the time of loan closing.10. Credit Alert Verification Report System (CAIVRS): borrower/coborrower11. VA Form 26-0503, Federal Collection Policy Notice12. VA Form 26-0286, VA Loan Summary Sheet13. If a loan is submitted more than 60 days after loan closing, a statement signed by a

corporate officer of the lender which identifies the loan, provides the specific reasons forlate reporting and certifies that the loan is current. This statement must be submittedwith any late request for issuance of a Loan Guaranty Certificate (LGC).

14. VA Form 26-0592, Counseling Checklist for Military Homebuyers, if the applicant is onactive duty.

15. TIL – Truth in Lending16. GFE – Good Faith Estimate

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17. Closing Cost Estimate (future Doc)18. Documentation of the cost of energy efficiency improvements included in the loan. For

cash reimbursement of the Veteran, the improvements must have been completed withinthe 90 days immediately preceding the date of the loan.

a. Reference: VA Pamphlet 26-7, section 3 of chapter 7.19. Other necessary documents (for example – but not limited to, Power of Attorney if used,

Lenders Loan Quality Certification).

Documents

VA Correspondent Manual - LenderLive VA Guidelines v4.0.pdfVA Correspondent Manual. 2 LenderLive Network, Inc. Proprietary and Confidential Doc. 1001 CORRESPONDENT LENDING Click here