CMG Machine - Dave Herbst

On this page you'll find:

Purpose of Refi Plus
Market Niches
Refi Plus Training
Refi Plus Eligibility
Refi Plus Pricing
CMG Loan Library
Refi Plus Guidelines
Mortgage Insurance
Appraisals Requirements

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#1 Purpose

Refi Plus™ On February 18th 2009, the Home Owner Affordable and Stability Plan was enacted by President Obama. As part of this plan the administration subsequently announced a Home Affordable Refinance Initiative to provide refinance opportunities for borrower whose mortgages are either held or guaranteed by Fannie Mae.

Refi Plus allows responsible borrowers who are current on their mortgages but have been unable to refinance because of a decline in home prices or limited availability of Mortgage Insurance Coverage to take advantage of historically low interest rates. This product is meant to improve the home owner's financial position by reducing the payment or / and improving the terms of the payment.

Through CMG Mortgage, this product is available to Mortgage Brokers beginning April 13th, 2009.

#2 Market Niches & Tips

QUICK START TIP

Check Refi Plus property eligibility first through the link below in section #4
Then if the property is eligible CMG recommends you run DU / DO
DU / DO must issue the "Refi Plus" eligibility

VALUE CHALLENGED

Values are back to 2003 levels (Case-Shiller March 2009)
Values have fallen over 19% since January 2008, & over 2% since December 2008
Whether your client purchased in 2004 or 2008, financing has been limited
Refi Plus allows up to 105% LTV, and might be elevated to 125% in the future

YOUR SCENARIO REQUIRES MI ON CONVENTIONAL LOANS BUT YOU DON'T QUALIFY

Refi Plus does not require MI if your property does not currently have it

NON-OWNER OCCUPIED PROPERTY FINANCING HAS BEEN LIMITED

Refi Plus allows up to 105% LTV for second homes and investment properties too
Refi Plus doesn't require MI if current loan doesn't have it, regardless of LTV
Refi Plus has no limit on the number of properties financed regardless of occupancy

#3 Product Training

15 MINUTE FNMA TRAINING VIDEO Click Here

CMG Guideline Overlay outlined below
Please call me if you have a question not covered on this web-page

#4 Refi Plus Eligibility

FIRST - LOOK UP PROPERTY ELIGIBILITY

Current property must be owned or guaranteed by FNMA
Existing loan was delivered to FNMA prior to March 1st, 2009
Check FNMA's website Click Here

SECOND - RUN DU PRIOR TO SUBMISSION

Refi Plus Eligibility
CMG encourages you to run DU prior to submission
DU must issues "Refi Plus Eligibility"
DU will issue eligibility if no other FNMA based program is available

Appraisal Waiver
CMG encourages you to run DU prior to submission to preview appraisal requirements
See "Appraisal Requirements" section of this page

#5 Refi Plus Pricing

CMG PRICING Click Here

Product Code #101RP
Page 4 on bottom

#6 CMG Loan Library

VIEW SUBMISSION REQUIREMENTS Click Here

PRODUCT GUIDELINES Click Here

Click on Button to enter into Main Menu
Scroll with Mouse over "Products" on the top
Click on "My Products" with Mouse
Look for Product # 101RP

#7 Underwriting Guidelines

TERMS AVAILABLE

30 Year Fixed

TRANSACTION PURPOSE

Rate and Term only

LOAN LIMITS

Conforming $417,000 (One Unit)
Agency High Cost balances are not eligible

LTV / CLTV

105% LTV - Max
No Minimum on LTV
No limit on CLTV
Existing 2nd lien mortgage cannot be paid off through Refi Plus product
Existing 2nd lien mortgage must be re-subordinated
Use current payment on 2nd from credit report to qualify

Rate and Term Refinance Owner Occupied

Units Max Loan Amount Max LTV Min FICO

( * Min Loan 0)

1 417,000 105 % 620

2 533,850 105 % 620

Rate and Term Refinance Second Home

Units
Max Loan Amount Max LTV Min FICO

( * Min Loan 0)

1 417,000 105 % 620

Rate and Term Refinance Investment Property

Units Max Loan Amount Max LTV Min FICO

( * Min Loan 0)

1 417,000 105 % 620

2 533,850 105 % 620

3 645,300 105 % 620

4 801,950 105 % 620

FEES

NRCCs can be rolled into new loan amount
Not to exceed 105% LTV

CREDIT

620 middle Fico
Borrowers must be current on their mortgage
No more than 2x60 day lates in last 2 years

Bankruptcy - 4 years since date of discharge
Foreclosure / Deed in Lieu - 7 years

BORROWER / CO-BORROWER

All borrowers on current loan must be on new Refi Plus loan
No exceptions to this rule
Without all original borrowers, Refi Plus is not available

Co-Borrowers can be added with no restriction
Non-Occupied Co-Borrowers are not allowed

PROPERTY ELIGIBILTY

No maximum financed property restriction regardless of occupancy
1 - 2 Unit SFR, PUD and Condo
Condotels & Manufactured Homes are not eligible
Modular Homes are allowed

Condos

No warranty required
No owner occupancy ratio requirement
No HOA cert
No verification of pending litigation required

Insurance Policy Coverage

HOA must maintain "Blanket" Policy
Must cover equipment and fixtures inside individual units
If no "Blanket" Policy, borrower must obtain "Walls-In" or HO-6 Policy
Coverage amount must be for 20% of the value
Must cover 100% of replacement costs of project improvements

Fidelity Bond Insurance
- Required on all projects with > 20 units
- Current HOA reserve balance is required to determine coverage adequacy

OCCUPANCY

Owner Occupied
Nonowner Occupied
2nd Homes

QUALIFYING

DU Only - No Manual Underwrites

Wage, Salary, Bonus and Overtime
1 recent pay stub and verbal verification

Self Employed and Commissioned
Most recent 1 year tax return & audited 4506t

Reserves
2 months PITI Typically
Completely driven by DU

Qualifying with Subordinated 2nd Lien
Qualify with current payment from credit report

#8 Mortgage Insurance

CURRENT LOAN DOES NOT HAVE MI

CMG can offer financing
New Refi Plus loan will not require MI regardless of LTV

CURRENT LOAN DOES HAVE MI

CMG will not offer financing through Refi Plus
The lender must be the current service provider in order to offer financing

MAY 2ND, 2009

DU will be updated to identify if property has MI

#9 Appraisals

DU APPRAISAL WAIVER ELIGIBILITY

CMG recommends you run DU prior to submitting in order to preview requirements
Enter the original value from current loan on property into DU
DU identifies the need for a Full Appraisal or Appraisal Waiver
An AVM will be run internally to cross check estimated value and validate findings
Appraisal Waiver (if issued) will cost $75 - CMG to Pay