Mini-Correspondent Sellers Guide

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Mini-Correspondent

Sellers Guide

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Mini-C Seller Guide Proprietary and Confidential

1 Introduction

Caliber Home Loans’ Mini-Correspondent Program

Caliber Home Loans’ Mini-Correspondent Program was developed for Mortgage professionals that have the resources to fund their own loans but are looking to avoid the added

operational costs associated with employing an Underwriting and Closing/Funding staff. To become an approved Mini-Correspondent with Caliber, please contact your Account Executive. Inquiries for approval can be sent to [email protected]

Caliber requires the Correspondents to be in compliance with all applicable state and federal laws and

regulations. Correspondents are advised to work directly with their legal and compliance departments to ensure regulatory compliance in performing the functions of a Mortgage Banker. Caliber does not purchase loans (i) that exceed federal, state and/or local high-cost points and fees thresholds; (ii) that meet the definition of state or federal higher priced mortgage loan definitions; (iii) originated by unlicensed companies/originators; (iv) with uncured RESPA tolerance violations.

Products

Caliber’s Mini-Correspondent Program offers the following products: • FHA, Conventional Fixed and ARM products which includes: • Conforming Fixed & ARM Products available

• DU Refi Plus

• HomePath for FNMA owned REO’s

• Relief Refinances and Open Access is available on fixed rates only

• High Balance Fixed & ARM as well as Super Conforming loan amounts are permitted • Jumbo

Note: Caliber does not currently offer VA or USDA through our Mini C channel.

Using This Guide

Caliber Home Loans purchases loans from approved Mini Correspondents (“Correspondents”) subject to the terms of this guide (the “Seller Guide”) and the Mini-Correspondent Loan Purchase Agreement (the “Agreement”).

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This Seller Guide details the responsibilities, processes, terms and conditions a Correspondent must follow in order to participate in Caliber’s Mini Correspondent Program.

2 Program Details

The Program Details Section of this Guide contains specific program information regarding the following topics:

• Roles and Responsibilities • Disclosures

• Appraisal Ordering • Registration • Tax Transcripts • Flood Certification

• Rate Lock and Commitment Term • Change of Circumstance Disclosures • Underwriting Purchase Approval Review • Clear to Close

• Ordering Documents and Closing • Funding to Title

• Post Funding

• Private Mortgage Insurance • Audit and Purchase

• Payment Transfer • 1098’s

• Final Documents • Late Fees

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Roles and

Responsibilities

Correspondent’s Role and Responsibilities

The Correspondent owns the customer relationship which includes all interaction with the Borrower(s), the decision to extend credit to the

Borrower(s), and the funding of the loan. The Correspondent’s responsibilities include, but are not limited to the following:

(i) Originate the loan and submit to Caliber for purchase approval via Caliber’s online LOS (H2Online)

(ii) Prepare and provide all necessary applications, disclosures, and re-disclosures (including, change of circumstance GFEs and all Truth in Lending re-disclosures) and otherwise acting in compliance with all federal and state laws

(iii) Cure any RESPA violations prior to funding (iv) Order the appraisal through an AMC

(v) Order a tri-merged credit report and tax transcripts for all Borrowers (vi) Disclose to borrower if property is in a flood zone, based on the life of

loan flood certification ordered by Caliber

(vii) Lock the loan with Caliber Funding and ensure the loan funds on your warehouse line, prior to lock expiration.

(viii) Max Rebate disclosed on the rate sheet.

(ix) FHA- Principle Agent – Correspondent will provide case number and run CAVIRS

(x) FHA – Sponsored originator – Correspondent will request from Caliber the case number prior to submitting loan to UW.

(xi) Run LDP/GSA

(xii) Run automated underwriting (DU, DO, or LP) and fully process the loan file prior to submitting to Caliber for underwriting purchase review (xiii) Submit a complete credit package with a completed Underwriting

Purchase Review Submission Coversheet that indicates all required documents are included

(xiv) Provide the required ECOA notification to the Borrower(s) within the timeframe required under federal and certain state laws

(xv) Order closing documents once a Clear to Close (“CTC”) has been issued by Caliber. (please refer to the Funding to Title section for further information on delegated and non-delegated)

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(xvi) Delegated closing: Correspondent responsible to re-verify verbal verification of employment if closing will take place more than 10 day from date Caliber completed the VVOE. The expiration date will be shown on conditional approval as a Prior to Funding Condition. (xvii) Delegated Closing - Fund the loan on a warehouse line obtained by the

Correspondent. Non-Delegated- Caliber will fund the loan using Correspondents warehouse line.

(xviii) Register the loan with MERS, prior to generating Caliber loan. At time loan is generated with Caliber, input MERS number into H20nline and transfer the beneficial and servicing rights within five (5) days of purchase.

(xix) Ensure a Shipping Package is delivered to Caliber for purchase review within required timelines and clear any post-closing suspense

conditions.

(xx) Issue a RESPA compliant good-bye letter to the Borrower upon Caliber purchasing the loan and promptly deliver all trailing docs to Caliber as they are received.

Caliber Home Loans’ Role and Responsibilities

Caliber Home Loans will not make the decision to extend credit to the Borrower, but rather will provide the Correspondent with an approval to

purchase the loan, prior to the loan closing, subject to the loan closing correctly. Caliber Home Loans’ responsibilities include, but are not limited to the

following:

(i) Review the credit package submitted by the Correspondent for

underwriting purchase review and issues a Purchase Approval or list of conditions the Correspondent must clear in order to obtain a purchase approval.

(ii) Where there is a fraud alert on the credit report, Caliber calls the borrower. We tell the borrower that we are Caliber and Caliber is contracted on behalf of the Correspondent. Then we go into verifying per the fraud instructions on the credit report. If the borrower has any additional questions we will tell them that we will have the

Correspondent call them directly to cover those questions.

(iii) Upon purchase approval, issue a CTC to the Correspondent once the loan has successfully passed a CTC review.

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no more than 10 days prior to the Note date.

(v) Delegated closing: Perform a Verbal VOE prior to CTC. (Correspondent responsible to re-verify if closing will take place more than 10 days from date shown on conditional approval)

(vi) Non-Delegated Closings: Caliber will approve the HUD-1 and post the closing documents, Caliber to coordinate closing with the Settlement Agent, Correspondent, and the Correspondent’s warehouse line. (vii) Non-Delegated Closings: Caliber will follow the funding and

disbursement procedures outlined by the Correspondent’s warehouse line.

(viii) Delegate Closings: Correspondent will coordinate funding of the loan from Correspondent’s warehouse line prior to lock expiration.

(ix) Review the Shipping Package delivered by the Correspondent and issues a Clear to Purchase or Purchase Suspense Notification that outlines the conditions that must be cleared prior to purchase.

(x) Purchase the closed loan from the Correspondent once all purchase conditions have been satisfied.

(xi) FHA – Sponsored correspondents, Caliber will provide case number and run CAVIRS

(xii) Caliber will be responsible for insuring the loan with FHA.

(xiii) Caliber will withhold the upfront MIP from the purchase price and will remit this amount to FHA.

Disclosures

The Correspondent is responsible for issuing initial disclosures including, but not limited to, the GFE and TIL to the Borrower(s) within the required timeframes and must maintain proof of delivery.

• Each change of circumstance GFE must include a completed Change of Circumstance Detail Form and a TIL.

• Caliber will require proof of compliance prior to issuing the Clear to Close.

• Critical GFE/TIL violations that cannot be cured may result in Caliber’s inability to issue a Clear to Close or Approval to Purchase. It is important that the Correspondent understand their responsibility for properly issuing disclosures to the Borrower.

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client locked the rate with their customer.

• This does not need to be the same date they lock the loan with Caliber. • Caliber will require a lock confirmation or a lock in agreement to

validate the date of the lock.

The Correspondent will be required to comply with all Federal advance disclosures requirements, as well as any state or municipal specific and loan program specific disclosures, including but not limited to:

• Equal Credit Opportunity Act (ECOA),Regulation B, • Consumer Credit Protection Act,

• Fair Credit Reporting Act (FCRA),

• Fair and Accurate Credit Transactions Act of 2003 (FACTA), • Patriot Act,

• TILA, Regulation Z, • RESPA, Regulation X, • HOEPA, etc.

Caliber will not purchase any mortgage loan that is defined as “high cost”, “HPML” or “predatory” under any federal, state, local and secondary market law, statute, ordinance or policy, including but not limited to Section 32.

Electronic

Signatures on

Initial

Disclosures

The following list of documents is used in the initial loan origination process and may be signed electronically in compliance with applicable law:

• Initial loan application

• Real Estate Purchase and Sale Agreement

o Electronic signatures are acceptable for both the borrower and seller

• Initial Truth-in-Lending Disclosures

o MDIA still requires the borrower to receive the creditors TIL in order to charge any fee other than a reasonable credit report fee.

• Initial Federal & State Specific Mortgage Disclosures • IRS Forms

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witnesses.

Important Note: This policy applies only to the borrower’s signature on initial disclosures as outlined in the Electronic Delivery & Signatures Policy. The Broker may not sign the initial application electronically.

Location

The E-Sign laws require the entity seeking to utilize electronic delivery and signatures to develop processes to obtain consent to the electronic delivery of documents and to ensure that signatures are executed by the person against whom enforcement is sought.

Qualifying Loans

This policy applies to Conventional, VA, and USDA loans. FHA does not allow electronic signatures on initial disclosures.

The following loan types do NOT qualify for E-Sign: • FHA loans

• FHA loans are not allowed to have electronic signatures on initial disclosures. However, the borrower/seller may sign the sales contract electronically.

• Jumbo loans

• Loans with Property Inspection Waivers (PIW)

• Homepath

• DU Refi Plus (DURP) • Conv >95%

• Second home >80%

• Investment property >75%.

• Waive the 1007/216 on investment property • Any loans containing a guideline exception

Appraisal

Ordering

The Correspondent must order the appraisal from an Appraisal Management Company (“AMC”).

• The Correspondent will establish a direct relationship with the AMC and the appraisal must be ordered in the Correspondents name.

• It is the Correspondent’s responsibility to ensure the appraisal order is compliant with MDIA, RESPA, AIR, and all other applicable laws and

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regulations.

• Caliber will not accept an appraisal that has been transferred to the Correspondent. Exceptions will be reviewed on a case by case basis. The Correspondent is required to provide a copy of the appraisal to the Borrower at least three (3) days prior to closing.

See additional information in the Appraisal Chapter.

Registration

The Correspondent can register a mini-correspondent loan with Caliber online at H2O.Caliberdirect.com.

• After signing into H2Online and clicking the “Register Loan” link, the Correspondent will have the option to specify whether the loan will be wholesale or mini-correspondent.

• Once a loan has been registered as a mini-correspondent or wholesale loan, the channel cannot be changed.

• If the Correspondent would like to switch a loan from

mini-correspondent to wholesale, they must cancel the mini-mini-correspondent loan and register a new loan under the wholesale channel.

Tax

Transcripts

The Correspondent is responsible for obtaining a properly executed 4506T from the Borrower(s) and ordering tax transcripts.

• Tax transcripts must be ordered through a third party vendor.

• Caliber will require tax transcripts to be included in the file at the time of underwriting purchase review based on what was called for in the AUS findings.

• If the required tax transcripts are not included in the file submitted for underwriting purchase review, Caliber will condition for the transcripts on the conditional approval.

Flood

Certification

Caliber will order the flood certification. The applicable flood certification fee will be recovered by Caliber by netting the amount out of the purchase wire.

• The Correspondent may not charge a flood certification fee to the Borrower at closing with a different amount from the actual cost of the flood certification.

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closing for any property located in a flood zone. • Caliber will send the flood disclosure.

• Caliber will also accept the Correspondent’s proof of disclosure signed by the Borrower that is dated at least 10 days prior to closing.

Rate Lock

and

Commitment

Term

When locking, the Correspondent will see their mini-correspondent or wholesale rate sheet based on how the loan was registered.

• Rate Lock Commitments will be issued as “best efforts”. Caliber will issue a rate lock date and lock expiration rate in H2Online.

• The rate lock date will be used by the originator to guarantee a rate to the Borrower. A Caliber lock confirmation is not a commitment to purchase a loan.

• All loans are to be delivered by the lock expiration date. This is effective on all loans locked on or after May 1.

• The file is considered “Delivered” when the complete signed closing package is uploaded to Caliber.

o Correspondent must deliver the Shipping Package (Collateral package and hard signed closing package) to Caliber for purchase within two (2) days from time of funding or review of the uploaded closing package; whichever happens later. o For loans that fail to comply with these time frames a daily late

fee will be applied until the loan is purchased (see the Late Fees section).

Premier Pricing Eligibility

Clients will be eligible to receive Premier pricing if they average a minimum of $1.5 million funded volume or 10 funded units per month.

• Averages will be based on a 3 month average and adjusted quarterly. • The first evaluation period will be April, May and June 2013 with

Premier Pricing being applied for qualifying customers during the first week of July. The next evaluation period will be the third quarter (July, August and September)

Clients who average less than $1.5 million or 10 units funded per month will receive Basic Mini Correspondent pricing. For basic Mini Correspondent pricing rate sheet A will be set equal to the Wholesale Borrower Paid rate sheet.

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Margin Selection

There will be two sets of Mini C rate sheets: Mini C & Mini C Premier. Regardless of which rate sheet version a client is assigned to, rate sheets can still be custom built with a selected level of margin included in the pricing that loan officers will see on the rate sheets and in H2O.

Margin can get set at the following levels. Rate Sheet A = 0% Margin

Rate Sheet B = .125% Margin Rate Sheet C = .25% Margin Rate Sheet D = .50% Margin Rate Sheet E = .75% Margin Rate Sheet F = 1.00% Margin Rate Sheet G = 1.25% Margin Comparison to Wholesale Pricing Mini C Rate Sheets

• Rate Sheet A (0% Margin) = Wholesale Borrower Paid Rates Mini C Premier Rate Sheets

• Rate Sheet A (0% Margin) = 25 bps better than Wholesale Borrower Paid Rates

Change of

Circumstance

Disclosures

The Correspondent is responsible for ensuring that all required federal and state disclosures are prepared and provided to the Borrower within the time frames required by law.

This includes ensuring that any Change of Circumstance GFE and all Truth in Lending re-disclosures are correctly completed and delivered to the Borrower within three (3) days of the Correspondent becoming aware of the change of circumstance.

• The TIL must be re-disclosed if any change of circumstance results in increasing the APR by more than 0.125 and closing may not occur until three business days after the Borrower receives the re-disclosed TIL. • Each change of circumstance GFE must include a completed Change of

Circumstance Detail Form and a copy of the TIL for review of the new APR, to determine if the TIL is required to be re disclosed to the

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borrower.

Underwriting

Purchase

Approval

Review

For each loan submitted to Caliber for review, a Caliber Underwriter will complete an analysis of the loan prior to issuing a purchase approval. The Underwriter will provide the Correspondent with a purchase approval decision and any conditions that must be cleared prior to the loan proceeding to Clear to Close review.

The loan review will include but is not limited to the following: • Verification of all data that was submitted for each loan

• Loan’s compliance with the applicable underwriting guidelines and product categories

• Confirmation of the value of the property

• Correspondent’s compliance with federal and state laws

• Risk Review -The file must receive acceptable and passing results in adherence with all Caliber fraud screening, regulatory compliance and valuation requirements

• Executed 4506-T for all Borrowers on the loan will be verified as part of the purchase review with tax transcripts returned by the IRS. Income must match documents and application submitted in the loan file • At closing (delegated or non-delegated) Caliber will also require

Borrowers to execute another 4506-T with closing documents. • Verbal verification of employment including third party sources to

confirm employment

• Review and confirmation of Closing Protection Letter, settlement agent and HUD-1 statement

All Underwriting and Risk Review decisions are subject to change without notice if Caliber deems an unsatisfactory risk will result. As the creditor, the

Correspondent must notify an applicant within 30 days of an approval, counteroffer or adverse action decision.

Caliber’s process is to provide the decision to the Correspondent, who in turn is responsible for informing the applicant of the decision. Whether the loan is floating or locked has no impact on the 30 days within which an underwriting decision must be rendered.

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Clear to Close

Prior to a Clear to Close being issued to the Correspondent, Caliber will audit every file for compliance with RESPA, MDIA/TILA and AIR.

• Files delivered without evidence of RESPA, AIR and/or MDIA/TILA compliance will be suspended as an incomplete application without further review until full compliance is documented.

• Caliber will not issue a purchase approval if the Correspondent cannot demonstrate proper compliance.

The Correspondent will be required to upload the initial disclosures and re-disclosures (including all Change of Circumstance (COC) GFEs and all Truth in Lending re-disclosures) prior to Caliber issuing a Clear to Close.

• To avoid service delays at CTC, please upload any COC at the time of the change. Each COC GFE must include a completed Change of

Circumstance Detail Form to outline the reasons for the COC. • If a COC occurs after CTC, Caliber will require the Correspondent to

upload the COC GFE and Change of Circumstance Detail Form prior to releasing funds. The Correspondent can upload these items into the e-file via H2O or they can be e-mailed directly to

[email protected]

Once final purchase approval has been given by Caliber’s underwriter, Caliber will perform an internal CTC review to ensure the file is ready to proceed to closing.

The Correspondent is strongly encouraged to review the checklist provided in the attachments and implement a similar review within their own processes to be able to better anticipate potential issues and avoid delay at CTC. Upon successful completion of the CTC, the Correspondent will be notified via email that the loan is now clear to close.

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Ordering

Documents

and Closing

A Corporate Power of Attorney must be on file with Caliber for each of the principals of the Correspondent company.

• Caliber will not purchase any loans closed by an affiliate, officer, employee, or agent of the Correspondent.

• The Correspondent must obtain an insured closing protection letter issued in the name of the Correspondent.

• The closing package will include a first payment letter that directs the Borrower to send the initial payment to the Correspondent.

Non-Delegated Closings:

Utilizes Caliber for the Closing; the Correspondent will schedule the closing and order closing documents through H2Online.

Caliber will prepare the closing package in the Correspondent’s name and coordinate the closing with Title and the Correspondent.

• Caliber’s loan number is required to be used.

• Caliber will fund the loan from the correspondents’ warehouse line. • Caliber will collect at time of purchase a closing Coordination Fee of

$195. Delegated Closings:

The Correspondent elects to coordinate the closing with Title and the borrower; the Correspondent’s responsibilities include, but are not limited to, approving the HUD-1, delivering the closing package to the closing agent and requesting the wire trough the correspondent’s warehouse line.

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Funding to

Title

Non-Delegated Closings

Caliber must be an approved investor with the Correspondent’s warehouse line. Unless otherwise directed by the Correspondents warehouse bank, Caliber will request disbursement of funds, to title, through the Correspondent’s

warehouse bank once (i) all prior to funding conditions have been met; (ii) the final HUD-1 has been approved; (iii) all signatures show exactly as drawn. No fees will be paid to or collected by Caliber at Closing.

Delegated Closings

• Loans funding prior to receiving Caliber’s Clear to Close are not eligible for purchase.

• The Note must provide for full amortization by maturity through regular monthly payments. Amortization must begin no later than 62 days after the Note Date of the Mortgage.

• Caliber will be purchasing loans based on the calculations shown below: o Conventional Products – 360 days

o Government Products – 365 days

Caliber will allow a grace period until May 31, 2013 during which we will match the interest on your documents regardless of which calculation was used. Effective June 1, 2013 Caliber will purchase the loan based on the terms above.

Mortgage Electronic Registration System (MERS) & MOM Documents Caliber requires its Correspondents to become MERS Lite Members, effective 10/01/2012.

It is the Correspondent’s responsibility to:

• Register the loan with MERS, prior to generating Caliber loan. • At time loan is generated with Caliber, input MIN number into

H20nline.

• Caliber will not purchase the loan without the confirming that the registration has been completed.

• Initiate a transfer of beneficial rights (TOB) and transfer of servicing rights (TOS) to Caliber Funding (Org ID 1008557) within five (5) business days of Caliber purchasing the loan.

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Post Funding

Delegated Closings

The Settlement Agent is required to send the signed closing package to the Correspondent unless otherwise directed by the Correspondent.

• The Correspondents Warehouse Lender may have specific instructions for the collateral; closing agent must follow these instructions

accordingly.

• If no separate instructions are delivered to the closing agent, collateral should be delivered to the correspondent with the original signed documents.

• The Correspondent will thoroughly review all documents for accuracy and compliance prior to shipping the package to Caliber.

o Caliber requires the original closing package as well as the bailee, allonge and the Note.

o Allonge must be endorsed to Caliber Home Loans by an authorized signer for the Correspondent.

o Caliber Home Loans must be in receipt closing file prior to lock expiration. A delay from the warehouse lender, will delay the purchase from the Correspondents warehouse line and could result in late fees (see the Late Fees section).

The packages for the closing and collateral must be sent under separate cover. The Closing Package and all documents must be shipped to the address below and can also be uploaded through H2Online for a pre-review. If uploaded, an email must be sent to [email protected] to complete delivery.

Non – Delegated Closings

The Settlement Agent is required to send 2 packages. One to Caliber and one to the warehouse lender, as instructed by Caliber. Caliber will thoroughly review all documents for accuracy and compliance prior to purchasing the loan from the Correspondents warehouse lender.

The Warehouse Lender is responsible for endorsement of Allonge and delivery of Original Allonge, Note, bailee and additional documents listed in Caliber’s closing instructions. Caliber Home Loans must be in receipt closing file prior to lock expiration. Any delay from the warehouse lender, will delay the purchase from the Correspondents warehouse line and could result in late fees (see the Late Fees section).

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The interim endorsement on the Note must read as follows: ALLONGE TO THE NOTE

Borrower: Address: Loan # Note Date: LOAN AMOUNT: Without Recourse, PAY TO THE ORDER OF:

THIS _______ DAY OF ____________________, _______ (Correspondent’s Name Here)

Lender Name

______________________________________________ Name/Title

Attn: Correspondent Post Closing Department Caliber Home Loans

6031 Connection Drive, Suite 200 Irving TX 75039

Private

Mortgage

Insurance

If a loan is required to have private mortgage insurance, the Correspondent will ensure that all premiums due have been paid through the date the loan is purchased by Caliber.

The Correspondent will compensate Caliber for any under-disclosed or unpaid mortgage insurance coverage. Caliber does not require monthly impounds on PMI until the first payment.

Audit and

Purchase

For Delegated and Non-Delegated Closings

• Caliber will review a signed uploaded closed package into H2Online to expedite the purchase.

• Once the shipping package (collateral and hard file) has been received, Caliber will issue either a Clear to Purchase or a Purchase Suspense notification detailing suspense conditions that must be cleared in order for Caliber to purchase the loan and Caliber will order the funds to purchase the loan from the Correspondents warehouse line.

• The Correspondent will be given a two (2) business day grace to cure any purchase deficiencies. For loans that do not comply with these time frames, Caliber will assess a daily late fee until the deficiency has

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been cleared. (see 1.21 – Late Fees)

• Once all conditions have been satisfied, Caliber must purchase the loan from the Correspondent at the established purchase price.

Caliber will net the following fees out of the purchase wire in addition to any lock related costs or accrued late fees:

• Standard Admin/Underwriting Fee - $595 (all states) • Life of Loan Flood Certification - $8 -Flood Cert fee • Tax Service - $85

• Closing Coordination Fee - $195 when the Correspondent is utilizing Caliber for doc prep and closing coordination.

Payment

Transfer

Upon the loan being purchased by Caliber, the Correspondent is responsible for preparing and delivering a notification of loan sale and change of servicer (“Goodbye-Letter”) to the Borrower(s).

• The notification must be sent at least (15) days prior to the first payment due to Caliber.

• Notification must be fully compliant with RESPA guidelines and must be prepared on the Correspondent’s letterhead.

• The Borrower must be instructed to make all payments directly to Caliber Home Loans. Caliber’s servicing transfer address information is as follows:

Caliber Home Loans P.O. Box 986

Newark, NJ 07184-0986

1098’s

The Correspondent is responsible for preparing and submitting 1098’s to the Borrower(s) reflecting the appropriate fees and payments collected by the Correspondent.

Caliber will prepare and deliver 1098’s to the Borrower(s) for any payments collected after Caliber purchases the loan.

Final

Documents

The Correspondent will deliver all trailing documents to Caliber as they are received within sixty (60) days after the Purchase Date.

If all trailing docs have not been received by Caliber within this timeframe, the Correspondent will be liable to Caliber for any administration fees or costs

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incurred by Caliber while collecting the remaining document (in addition to any remedies Caliber may have under the Agreement).

Late Fees

All loans are to be delivered by the lock expiration date. • This is effective on all loans locked on or after May 1. • Delivered is inclusive of the imaged closing package.

• Loan cannot be purchased until Hard closing file and full collateral file have been delivered as originals to Caliber and will be considered suspense items.

All purchase suspense conditions must be satisfied within (2) business days of the suspense condition being communicated to the Correspondent or the funding date of the loan; whichever is later.

For loans that do not comply with these time frames a late fee will be accrued on a daily basis until the loan is purchased and/or the suspense conditions satisfied.

The accrued cure fee is calculated as follows: Loan amount x .02% x # of days = Late Fee

Note: Late fees will be net funded from the purchase wire.

3 Appraisal

The Appraisal section of this Guide describes the Appraisal requirements. The Correspondent will utilize an Appraisal Management Company (“AMC”); no prior approval of the

Correspondent’s elected AMC is required.

Appraisal

Review

Process

Caliber Home Loans reserves the right to refuse the completed subject property appraisal utilized for Correspondent Lending. Refusal rights include, but are not limited to, risk, salability, or lack of supporting data.

Appraisal

Compliance

•

All appraisals must be ordered in the Correspondent’s name and in compliance with AIR, RESPA, and MDIA.

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Requirements

certifying the appraisal was ordered and completed in accordance

with Appraiser Independence Requirements (AIR).

• For Conventional files only: The Correspondent will also be responsible for ensuring the appraisal SSR’s (Submission Summary Reports) are obtained and provided to Caliber at time of appraisal review.

• Once the appraisal is complete, the Correspondent must promptly review and audit for the SSR’s. If they have not been initially provided by the AMC, the Correspondent should obtain directly from the AMC or utilize their UCDP SSR log-in via Fannie Mae and Freddie Mac to pull the SSR reports.

• It is the Correspondents responsibility to ensure proper registration of the final appraisal utilized in a loan transaction through the Uniform Collateral Data Portal “UCDP”.

• Caliber Home Loans will require the Document File Identifier and Submission Summary Reports “SSR’s” (one from Fannie Mae and one from Freddie Mac) from the Correspondent prior to approving a loan for purchase.

o Some AMC’s will order the SSR’s for the correspondent without requiring a Seller Servicer ID’s; other AMC’s will not order the SSR until the correspondent has Seller Servicer ID’s from Fannie and Freddie. This is an approval process from Fannie and Freddie, and it takes about 7 days. The correspondent needs to know before they order an

appraisal through a new AMC what their requirements are. o An alternative solution to obtaining a seller servicer ID is to

use the UCDP portal as TPO – Caliber Home Loans. Instructions for obtaining lender approved access to submit appraisals to the UCDP portal for loans being processed with Caliber Home Loans. This process eliminates the need for Mini-Correspondents to obtain seller servicer numbers. This allows the MC to obtain TPO # and linking Fannie and Freddie together in the UCDP portal. Perform the following steps:

1) Administrator Account Request

• Use the following link to register as the Primary Lender Administrator and submit a request for a TPO number.

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• Enter the company and administrator information

• Select “I do not have a Freddie Mac Seller/ Servicer or TPO Number” • Select the checkbox for all 3 legal acknowledgements

2) Add or Remove Lender Administrator Account • Use the following link to add or remove users.

Add or Remove Lender Account

Typical turn time for processing this request is 24-48 hours. An email will be sent once registered including the organizations TPO number assigned. Upon receipt of this email please follow the additional steps to register with the UCDP portal using your assigned TPO number.

Support questions related to registration and submitting appraisals to UCDP, contact the joint GSE UCDP Support Center at 1-800-917-9291.

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3 FHA Requirements

The FHA Requirements section of this Guide describes the FHA Approval, Submission, Appraisal and Closing requirements.

Approval

Requirements

• A Mini-C client can request FHA approval during the approval process or any time after they are approved.

• Broker approvals will verify in FHA Connection how the Correspondent is approved within FHA.

• Clients FHA Approval Status must be Active, and their Lender Unconditional DE Status must be Eligible for Preclosing or Unconditional.

o If only “Eligible for Preclosing” it is necessary to order their case numbers, but they can still deliver closed loans to us.

Submission

Requirements

• If approved as Principle Agent (Unconditional):

o Copy of Case Number Assignment; if Correspondent is approved as Principle Agent

o Perform CAVIRS check and provide print out or CAVIRS Number o FHA connection showing with Caliber as the Sponsor

o Once file is in UW Submitted in H20, Caliber will make any and all changes in FHA Connection.

• All FHA transactions:

o Perform LDP/GSA and provide print out

o Refinanced loans are required to be linked to the old case number within FHA Connection and shown on the Case Number Assignment print out.

Appraisal

Requirements

• FHA appraisals must be ordered in compliance with HUD guidelines in order to satisfy HUD’s requirements for portability.

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Closing

_{• Caliber Home Loans will draw documents and coordinate closings for all}

FHA loans.

• A $195 closing coordination fee will apply.

• Exceptions will only be made for clients who use a warehouse provider that also provides document preparation and closing coordination services (i.e. FirstFunding or Warehouse Lending Group). Caliber will require verification from their warehouse line as to the ability to fund FHA loans.

• Clients with allocated lines through Goldome will not be eligible to participate.

Purchase

_• Purchase will be completed prior to us insuring the loan. • If post-closing items needed to insure, correspondent will be

responsible to obtain.

• If loan is declined or not purchased by Caliber

i. If submitted by a principle agent correspondent: (Unconditional) o And declined by Underwriting, Caliber will be removed as

the Sponsor within FHA Connection.

o And not approved for purchase, Caliber will be removed as the Sponsor within FHA Connection.

ii. If submitted with Caliber as the Sponsor: (Eligible for Preclosing) o And declined by Underwriting, Caliber will transfer that loan

as requested by the correspondent.

o And not approved for purchase, the loan will be uninsurable and will impact the standing of the correspondent with Caliber

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4 Jumbo Advantage Products

The Jumbo Advantage Products section of this Guide describes the Jumbo Advantage Products and the processes used to implement them.

Jumbo Product

Overview

Jumbo Advantage Product Highlights • Loan limit to $2M

• Purchase, Rate/Term and Cash Out • Fixed and ARM options

• Max cash out $250,000 • Max 80% LTV to $1M • Max DTI – 45% • Minimum FICO 720

• Second homes allowed. No investment properties.

• Required reserves are based on loan amount. If only “Eligible for Preclosing” it is necessary to order their case numbers, but they can still deliver closed loans to us.

Jumbo Advantaged Product Codes

• JAF30 – Jumbo Advantage 30 Year Fixed • JAF15 – Jumbo Advantage 15 Year Fixed • JAL5 – Jumbo Advantage 5/1 LIBOR ARM • JAL7 – Jumbo Advantage 7/1 LIBOR ARM • JAL10 – Jumbo Advantage 10/1 LIBOR ARM

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Jumbo

Appraisal

Review

Process

• Although Mini-Correspondent clients are generally permitted to utilize their own Appraisal Management Company (AMC), appraisal reports for the Jumbo Advantage product must be ordered through one of Caliber’s approved AMC’s.

o A list of approved AMC’s can be located on www.CaliberWholesale.com > Forms > Appraisal > Approved AMCs.

• Despite Caliber’s delegated underwriting authority, the final appraisal review will be conducted by a 3rd party due diligence vendor.

o The CRM will be responsible for submitting the appraisal report to the Caliber Underwriter for review as soon as the report is available.

o It is imperative that the appraisal report is submitted by the assigned Jumbo Underwriter to the vendor as soon as their individual review is complete.

o Investor review turn time is approximately 4-5 business days. This timeframe should be considered and factored into the estimated closing date and lock expiration date. o If the vendor’s review deems the value of the original

appraisal as unsupportive, a field review must then be ordered by Caliber.

o Once this order has been placed, the vendor must be notified and they will order as well.

o Both field reviews, will be reviewed by the 3rd party vendor to make a final determination.

o Caliber’s estimated turn time for a field review is

approximately 7-10 business days. This timeline correlates with the vendor’s turn time for a field review.

Important Note: Ensure that closing dates and lock expiration dates are taken into consideration, as a field review may be required and may extend the loan process time.

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Jumbo

Advantage

Lock Options

45 and 60-day lock options will be available

• Up to 2 extensions may be purchased, not to exceed a total of 30 days from original lock expiration

See the table below for Jumbo Advantage Extension Costs: Jumbo Advantage Extension Costs 1st and 2nd Request Jumbo Advantage

Extension Period Extension Period

0-5 days 0-5 days 6-10 days 6-10 days 11-15 days 11-15 days 16-20 days 16-20 days 21-30 days 21-30 days

Requesting

Approval

• Clients will be required to submit a request to

[email protected] in order to be eligible for the Jumbo Advantage Product.

• Separate Jumbo approval is required, regardless of the client’s current approval status.

• Caliber will require verification from their warehouse line as to the ability to fund Jumbo loans.

• Clients with allocated lines through Goldome will not be eligible to participate.

Document

Preparation

and Closing

• Caliber Home Loans will draw documents and coordinate closings for all Jumbo loans.

• A $195 closing coordination fee will apply.

• Exceptions will only be made for clients who use a warehouse provider that also provides document preparation and closing coordination services (i.e. FirstFunding or Warehouse Lending Group).

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Attachments

The following attachments are forms that are used to process Min- C Loans: A Mini C FHA Case Number Request Form for Sponsored Correspondents B Submission Review Checklist – Conventional

C Mini Correspondent LOAN SUBMISSION CHECKLIST – JUMBO LOANS D Mini Correspondent LOAN SUBMISSION CHECKLIST – FHA PURCHASE/REFI E Mini Correspondent LOAN SUBMISSION CHECKLIST – FHA STREAMLINES F RESPA Changed Circumstance Detail Form

H Notice to Borrower in Special Flood Hazard Area NFIP Participating Community I Notice of Assignment, Sale, or Transfer of Servicing Rights

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A Mini C FHA Case Number Request Form for Sponsored Correspondents

Email to

Once a loan is registered with Caliber Funding in H2o, but before the file is submitted for underwriting, complete the following fields and email the electronic copy of this form to [email protected]. Requests received by 3:00 PM CST will be processed same day. The Case Number Desk will validate the necessary information and order the Case number via FHA Connection. Once a case number is obtained, you can view the Case Number Assignment form by accessing the Electronic File, selecting Submission package and then Conditions/Training Docs for the loan. Once you have received this information, you may submit the file to caliber home loans for underwriting.

IMPORTANT: You MUST register the loan in H2o before a case number will be requested. The Case Number MUST be obtained before the loan is submitted.

Caliber Home Loans H2o Loan Number (required): Caliber Account Manager:

Broker Information:

Broker Company Name: Tax Identification Number (required):

Broker Contact Name: NMLS ID Number:

Broker Contact Phone Number: NMLS LO ID Number:

Broker Contact Email: LO Name:

Property Information: (Must include complete address with prefix / post directions, if applicable)

House Number: Unit: Month/Year Property Built / (required)

Complete Street Name:

City: State: Zip:

County: Lot Number (If New Construction):

Block/Plat (If New Construction): Borrower Information:

Borrower 1:

First Name: Middle Initial: Last Name:

Social Security Number: Date of Birth: Borrower 2:

First Name: Middle Initial: Last Name:

Social Security Number: Date of Birth: Type of Case:

Transaction type: Purchase R/T Refinance C/O Refinance

Construction Code: Proposed Substantial Rehab Under Construction Existing New-Less

Than One Year

If Refinance, Specify Type of Refinance: Not a Refinance Prior FHA Conventional

Streamline Refinance? Yes No With Appraisal? Yes No

If Purchase, was this case previously sold as a Real Estate Owned (HUD Previously Sold)? Yes No

Prior FHA or Prior REO Case Number (I.E. 123-1234567): -

Is the Property a Condo? Yes No If Yes, Condo Project Approved: Yes No

Condo Project Name:

Project FHA ID: Project Close Date:

Miscellaneous Information:

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Loan Term: 180 Months 240 Months 360 Months

B Submission Review Checklist – Conventional

Mini Correspondent

LOAN SUBMISSION CHECKLIST – CONVENTIONAL LOANS DOCUMENTS NEEDED TO UW YOUR LOAN

At a minimum provide the items shown in red the section below. If possible, provide all applicable information listed in both sections below.

Minimum Documents Required to Submit to UW

1008 Transmittal Summary

1003 – must be signed and dated by the interviewer

1003 – must be signed and dated by the borrower(s) if taken face to face

DU submitted through H2O with an Approved/Eligible decision - OR – LP run with Caliber's Seller Number or assigned to Caliber

Tri-Merge Credit Report

Current Income and Asset information according to AUS

Purchase Agreement (when applicable)

All Good Faith Estimates delivered to the borrower

Change of Circumstance Form (for each disclosed GFE)

Truth In Lending (for each disclosed GFE)

Additional Documents Recommended to Submit to UW

Itemization of Fees

Written Intent to Proceed - Executed by all Borrowers Tax Transcripts

Borrowers Authorization

Appraisal (if required by AUS & the loan is a refinance) Prelim Title with 24 month chain of title

Estimated HUD-1 showing all lender, broker and escrow/title fees CPL and wire instructions (non-delegated closings)

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Tax Information Sheet

Condo Questionnaire (if applicable)

Proof of Hazard and Flood Insurance (if applicable) Current Payoff Demand (refinance)

Patriot Act Disclosure (form must include borrower ID info and be signed by the person who reviewed ID’s) Notice to Home Loan Applicant

Privacy Policy Disclosure Fact Act Disclosure

Documentation for any omitted liabilities

VOM for any mortgage(s) not listed on Credit Report. If private mortgage, 12 months cancelled checks. Credit related conditions required per AUS (BK, Divorce, Disputed Accounts, Authorized User, etc.) LOE regarding inquiries in past 90 days - specifically addressing both the purpose and outcome of each inquiry

Explanation and source documentation for all large non-payroll deposits Copy of Second/HELOC Note for all subject properties with subordinate liens

HomePath Products: Printout from HomePath website, www.HomePath.com confirming property eligibility Note: Other conditions may apply depending on loan circumstances. Please refer to Product Guide for specifics.

All of the above information must be received at initial submission to be considered a complete package. Incomplete packages will not be considered a complete loan submission and will be placed back into the created stage. Caliber reserves the right to cancel any submission that does not meet RESPA requirements for any reason. These errors cannot be corrected under the 2010 RESPA Guidelines.

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C Mini Correspondent LOAN SUBMISSION CHECKLIST – JUMBO

LOANS

DOCUMENTS NEEDED TO UW YOUR LOAN

At a minimum provide the items shown in red in the section below. If possible, provide all applicable information listed in both sections below.

Minimum Documents Required to Submit to UW

1008 Transmittal Summary reflecting DTI no higher than 45% 1003 – must be signed and dated by the interviewer

1003 – must be signed and dated by the borrower(s) if taken face to face All Good Faith Estimates delivered to the borrower

Changed Circumstance Form (Provide all COC form that accompany all re-disclosed Good Faith Estimates)

Truth in Lending (for each disclosed GFE)

Credit Report with minimum 720 credit score. Must meet minimum trade-line requirements outlined in program guidelines.

2 Year’s Tax Returns (including business returns if self-employed)

Current Asset Documentation for funds to close and reserves as required by program guidelines (general requirement is for 2 months of statements or most recent quarterly statement) Purchase Agreement (when applicable)

Itemization of Fees

Written Intent to Proceed – executed by all borrowers

Tax Transcripts and executed 4506T (Caliber will not order transcripts) Borrower Authorization

Appraisal (2 appraisals required for loan amounts >$1 million) Prelim Title with 24 months chain of title

Documentation must be supplied for any omitted liabilities Estimated HUD-1 showing all lender and escrow/title fees CPL and wire instructions (non-delegated closings)

Written list of Settlement Service Providers (include provider name, address and phone number) Tax Information Sheet

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Condo Questionnaire (if applicable)

VOM must be provided for any mortgage(s) not listed on Credit Report. If private mortgage provide 12 months cancelled checks.

Credit related conditions required per AUS (BK, Divorce, Disputed Accounts, Authorized User, etc.) LOE regarding inquiries in past 90 days - explanation should specifically addresses both the purpose and outcome of each inquiry

Explain and source all large non-payroll deposits

Copy of Second/HELOC Note required for all subject properties with subordinate liens per Credit Report or Prelim Title

Note: Other conditions may apply depending on loan circumstances. Please refer to the Product Guide for specifics.

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D Mini Correspondent LOAN SUBMISSION CHECKLIST – FHA

PURCHASE/REFI

Minimum Documents Required for GFE Review

92900-LT Loan Transmittal Summary

92900-A completed and signed by loan officer and borrower(s)

1003 – Signed and dated by the interviewer and the borrower(s).

AUS must be pulled through H2O

Tri-Merge Credit Report

Non-borrowing spouse credit or signed borrower’s authorization: AZ, CA, ID, LA, NM, NV, TX, WA, WI

FHA Case Number Assignment

Current Income and Asset information per AUS findings

Purchase Agreement, FHA Amendatory Clause & Real Estate Certification (if applicable)

Itemization of Fees

Written Intent to Proceed - Executed by all Borrowers Tax Transcripts

Appraisal (if required by AUS and loan is a refinance) Prelim Title with 24 month chain of title

Written List of Settlement Service Providers (include provider name, address and phone number) Tax Information Sheet

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LDP/GSA for all parties Appraised Value Disclosure

Important Notice to Homebuyer (purchase only) HUD Form 92900B Notice to Homeowner (Assumptions)

For Your Protection Get a Home Inspection (purchase only) HUD Form 92564CN Informed Consumer Choice Disclosure

FHA Identity of Interest

HUD’s Appraised Value Disclosure

Earnest Money/Gift Fund documentation (when applicable)

VOM for any mortgage(s) not listed on Credit Report. If private mortgage, 12 months cancelled checks. Credit related conditions required per AUS (BK, Divorce, Disputed Accounts, Authorized User, etc.) LOE regarding inquiries in past 90 days - specifically addressing both the purpose and outcome of each inquiry

Explanation and source documentation for all large non-payroll deposits

Copy of Second/HELOC Note required for all subject properties with subordinate liens per Credit Report or Prelim Title

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E Mini Correspondent LOAN SUBMISSION CHECKLIST – FHA

STREAMLINES

Minimum Documents Required for UW Review

92900-LT Loan Transmittal Summary

92900-A completed and signed by loan officer and borrower(s)

1003 – Signed and dated by the interviewer and the borrower(s). Should include no income figures.

Credit Report reflecting at least 6 payments made on existing mortgage

Non-borrowing spouse credit or signed borrower’s authorization: AZ, CA, ID, LA, NM, NV, TX, WA, WI

FHA Case Number including Refinance Authorization

Itemization of Fees

Written Intent to Proceed - Executed by all Borrowers Copy of Note for Existing Mortgage

Copy of existing mortgage statement (to determine monthly MIP for net tangible benefit) Prelim Title with 24 month chain of title

Written List of Settlement Service Providers (include provider name, address and phone number) Tax Information Sheet

Proof of Hazard and Flood Insurance (if applicable) Current Payoff Demand

LDP/GSA for all parties

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Informed Consumer Choice Disclosure

Privacy Policy Disclosure Fact Act Disclosure Appraisal (if required)

Current Asset verification required if funds needed to close

Borrower LOE stating subject property was not listed at the time of application and is not currently listed Evidence of HOA dues (if applicable)

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F RESPA Changed Circumstance Detail Form

Contact Us: 888-426-7026

Borrower Name Property Address

RESPA Changed Circumstance Detail Form

Complete this form for each changed circumstance that results in re-disclosure of the GFE and upload to the Changed Circumstance folder for this loan.

Type of Change

(see list of common changed circumstances for standard verbiage)

Date Broker/Lender Notified of Change

Date Re-Disclosed GFE Delivered

Additional Details about Change

Resulting Fee Changes

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G

Allonge to the Note

BORROWER ADDRESS CORRESPONDENT LOAN # CALIBER LOAN # NOTE DATE LOAN AMOUNT Without Recourse, PAY TO THE ORDER OF

(Company Name)

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H Notice to Borrower in Special Flood Hazard Area NFIP

Participating Community

Borrower: Loan #: Property Location: This Notice Date is as of: National Flood Insurance Program Community:

The Mandatory Purchase of Flood Insurance Requirement

The building or mobile home securing the loan for which you have applied is or will be located in an area prone to high flood risks, also known as a Special Flood Hazard Area (SFHA). The area has been identified by the Federal Emergency Management Agency (FEMA) as an SFHA according to the Flood Insurance Rate Map (FIRM) or the Flood Hazard Boundary Map (FHBM) for the community cited above. FIRMs and FHBMs are prepared by FEMA in cooperation with the applicable community to identify high flood risk and low-to-moderate flood risk areas. The SFHA in which the building or mobile home securing this loan is or will be located has at least a one percent chance of a flood equal to or exceeding the base flood elevation (a 100-year flood) in any given year. During the life of a 30-year mortgage loan, the risk of flooding in an SFHA is 26 percent.

Federal law allows a lender and borrower jointly to request the Administrator of FEMA to review the determination of whether the property securing the loan is located in a SFHA. If you would like to make such a request, please contact us for further information. Borrowers may also call a FEMA mapping specialist at (877) 336-2627 to discuss their concerns.

Federal financial assistance, including FEMA disaster assistance, flood mitigation grants and federally backed mortgage lending, is available in NFIP participating communities such as the one in which this property is located. Mandatory flood insurance requirements are applicable to all Federal financial assistance. The mandatory flood insurance purchase requirements under section 102(b) of the Flood Disaster Protection Act of 1973 are applicable to Federally regulated lenders making loans in SFHAs. We will not make you the loan that you have applied for if you do not purchase flood insurance. If you fail to renew or maintain flood insurance on the property during the term of your loan, federal law authorizes and requires us to purchase the flood insurance for you at your expense. We must enforce the flood insurance requirement for the life of the loan or until the FIRM or FHBM is amended or revised to remove the building or mobile home securing this loan from the SFHA.

Flood insurance coverage under the NFIP may be purchased through an insurance agent who will obtain the policy either directly through the NFIP or through a Write Your Own (WYO) company that has agreed to write and service NFIP policies on behalf of FEMA. While flood insurance under the NFIP has been made available in your community, which participates in the NFIP, this specific property may not be eligible for federal flood insurance coverage due to restrictions under certain federal laws, such as the designation of the improved property as either Section 1316 under the NFIP or subject to Coastal Barrier Resource Area or Otherwise Protected Area restrictions. Flood insurance also may be available from private insurers that are not Federally backed.

Minimum Coverage Requirements

At minimum, flood insurance purchased must cover the lowest of: (1) the outstanding principal balance of the loan in addition to the aggregate unpaid balance of any superior liens; or (2) the maximum amount of coverage allowed for the type of building under the NFIP; or (3) the full replacement cost value (RCV) of the building and/or contents securing the loan. The market value or land value on which the building is located has no bearing on the RCV of the building. In the event RCV is greater than option (1) above and less than option (2), some lenders may require flood insurance coverage in an amount at least equal to 80% of the RCV so as to ensure that payment of a claim is based on RCV per NFIP rules. You as the borrower/applicant are encouraged to explore additional flood insurance beyond your lender’s minimum requirements including coverage for personal property not securing the loan.

Disaster Assistance Availability

Federal disaster relief assistance, the majority of which is in the form of a low-interest disaster assistance loan from the Small Business Administration (SBA), may be available for losses not covered by your flood insurance policy. Flood insurance requirements apply to recipients of Federal disaster assistance grants and SBA disaster assistance loans. If you are planning to

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build a structure or make repairs, contact the local community’s chief executive official to determine building standards for structures within an SFHA.

Borrower/Applicant Date Borrower/Applicant Date

Mini-Correspondent Sellers Guide