BNDC-002 Changes to Blue Jumbo Product

Topic

Old Policy
Blue Jumbo Option 1

New
Revised Policy Blue Jumbo Option 1

ARM Rate

No prior information referencing the ARM floor

Added verbiage that the floor is equal to the margin

DU Validation Services

Allowed DU Validation services for income, employment, and assets

DU Validation services for income, employment and assets are no longer permitted

Derogatory Credit related to Loan Modification

Policy did not address waiting period for eligibility after a loan modification

At least seven (7) years must have elapsed since bankruptcy discharge or dismissal,
foreclosure, notice of default (NOD), short sale, deed-in-lieu or modification measured from the date of completion to the date of application.

Assets

·    Gifts of Equity are acceptable subject to borrower contribution requirements.

·     Crypto/Virtual Currency are acceptable assets subject to additional requirements.

Gifts of Equity and Crypto/Virtual Currency are not allowed.

Title Vesting

Borrower(s) may hold title as follows:

·        Individual

·        Joint Tenants

·        Tenants in Common

Only acceptable title vesting are as follows:

·        Individual

·        Joint Tenants

Appraisal Guidelines Additional Valuation Product

A Desk Review Collateral Desktop Analysis (CDA) from Clear Capital is required when the CU risk score is > 2.5.

If there is more than 1 appraisal due to the total combined loan amount, only 1 CDA is required on the appraisal being relied upon to underwrite the property.

A Desk Review Collateral Desktop Analysis (CDA) from Clear Capital is required when the CU risk score is > 2.5.

A Desk Review Collateral Desktop Analysis (CDA) is not required for loans with two
appraisals, regardless of the collateral underwriter score.