Gateway Mortgage Group Correspondent Overlay Matrix

Program guidelines for FNMA, FHA, VA, USDA, and HUD 184 are determined by the individual Agencies and are available on their respective websites; Agency guideline overlays are as follows:

Guideline Product Comment

Appraisal Texas Equity URAR 1004 or 1073 (for condo) required, regardless of AUS ndings. See also Natural Disasters below.

All Products Appraisal Condition Ratings of C5 and C6 are ineligible.

Borrower Type Restrictions All Borrowers and households with more than 4 nanced properties serviced by Gateway, regardless of occupancy or purpose of subject loan

Non-U.S. citizens who do not have permanent or non-permanent resident alien status or full/partial diplomatic immunity

Borrowers with no social security number (ITIN only)

Life Estates

CAIVRS FHA, VA, USDA, HUD 184 CAIVRS must be clear (not applicable on FHA streamline).

Construction/Perm All Construction/Perm single or one-time close loans which utilize a modication agreement or a construction loan rider are ineligible.

Credit Reject FHA Loans with a Credit Reject on FHA Connection not allowed.

Credit Report All All borrowers must have a valid Social Security number. No Exceptions.

FHA, VA, USDA, HUD 184 Non-borrowing spouses in community property states must be residing legally in the United States.

Credit Score Requirement Conventional ≥620 with AUS Approval required. Each borrower must have a minimum of one credit score.

FHA ≥600 with AUS Approval required. Each borrower must have a minimum of one credit score.

≥620 for Manual Underwrite with one credit score for each borrower required. Manual Underwrite not allowed for High Balance loans.

VA ≥600 with AUS Approval required. Each borrower must have a minimum of one credit score.

≥620 for Manual Underwrite with one credit score for each borrower required. Manual Underwrite not allowed for High Balance loans.

USDA ≥640 regardless of GUS ndings. Each borrower must have a minimum of one credit score.

HUD 184 ≥620 Each borrower must have a minimum of one credit score.

Down Payment / Mortgage

Payment Assistance

FHA, VA, HUD 184 All assistance programs must be prior approved by Gateway and meet specic agency guidelines.

Only Government entity (Federal, State, County, Tribal, etc.) approved programs will be considered.

The originating Correspondent Lender is responsible for compliance with all assistance program guidelines, including any current or future reporting to the

borrower, government or assistance agency.

Seller funded, Bond, and Section 8 programs are not allowed.

Conventional/USDA Down Payment and Mortgage Payment Assistance Programs not allowed.

DTI Conventional Max of 50% for LP Accept/Accept or Per DU Approve/Eligible

FHA Per DU Approve/Eligible, or LP Accept/Accept max 55% DTI allowed.

Max 50% for Manual Underwrite.

VA Per DU Approve/Eligible, or LP Accept/Accept max 55% DTI allowed.

Max 43% for Manual Underwrite.

HUD 184 Max 43% DTI allowed. (applications taken on or after 1/1/2014)

USDA Per GUS Accept, max 45% DTI allowed. (applications taken on or after 1/1/2014)

41% maximum DTI allowable for Manual Underwrite, however, up to 44% maximum DTI allowed with compensating factors

Gateway Mortgage Group Correspondent Overlay Matrix

Guideline Product Comment

DU Re Plus Conventional DU may oer a property Fieldwork Waiver. If oered, DU must be rerun with the estimated value provided by DU.

All Texas Equity properties require full Fannie Form 1004 regardless of DU nding.

Eligible States All Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Idaho, llinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Michigan, Minnesota,

Mississippi, Missouri, Nebraska, Nevada, New Jersey, New Mexico, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas,

Utah, Virginia, Washington, West Virginia, Wisconsin, Wyoming.

Escrow Waiver Conventional All states allowed on LTV 80% or less if all items listed are met:

» Flood Insurance is not required

» Loan is not HPML

California allowed on LTV >80% to <90% LTV if all items listed are met:

» Flood Insurance is not required

» Mortgage Insurance must be single premium (Lender or Borrower paid)

» Loan is not HPML

All states, except California, allowed on LTV >80% to <90% LTV if all items listed are met:

» Maximum DTI 40% » Mortgage Insurance must be single premium (Lender or Borrower paid)

» Minimum Credit Score 700 » Flood Insurance is not required

» Minimum veried liquid assets after closing of $100,000 » No bankruptcy, foreclosure, short sale or short payo dismissed, discharged or completed in last 3 years

» Loan is not HPML

Ineligible Loan Types

and Features

All Temporary Interest Rate Buydowns

Section 32, “high cost” loans (as dened by the Agencies or applicable federal or state regulation)

Conventional, USDA Down Payment and Mortgage Payment Assistance Programs not allowed.

FHA, VA, HUD 184 Government loans originated under Bond Programs or with non-Gateway approved governmental or tribal DPA programs.

Ineligible Products Conventional Freddie Mac Relief Renance Mortgage, Freddie Mac Home Possible Program, Fannie Mae Home Ready Program.

Ineligible Properties All

Condos in litigation, Earth, Leasehold, Tribal Land, Cooperatives, Mobile Homes, Metal Buildings, Geodesic Domes, Manufactured Homes, Properties with less than 600 square feet, Condotel,

Timeshares, Group Homes, Unimproved Land, Working Farms and Ranches, Property currently in litigation, Properties with encroachments, Properties located in a Lava Zone, Properties held

in a business name, Properties with resale deed restrictions, Zoning violations (including residential properties zoned commercial), Commercial Enterprises (i.e. Bed and Breakfast, Boarding

House, Hotel), Illinois Land Trusts. Log Cabins considered on Purchase and Rate/Term transactions only and maximum 85% LTV/CLTV, supported by satisfactory like comps.

USDA 2-4 Units not allowed

Investment Property /

Second Home

All TRID rules apply requiring Loan Estimate and Closing Disclosure for all Second Homes and cash-out renance investment properties.

When the borrower does not own a primary residence, any investment property loan must qualify with full PITI payment.

No Rental Income considered for any lease executed with a family member or interested party to the transaction. See also Non-Arm’s Length and Primary Residence Conversion

Limit on Number of

Loans Serviced by

Gateway

All Maximum of 4 loans serviced by Gateway per Borrower / Household.

Borrower/household may have a maximum of 10 nanced properties with Gateway Mortgage Group subject to:

» All nanced properties held individually or jointly, or in an LLC or partnership must be counted in the borrower(s) total number of properties, regardless of the borrower’s

ownership percentage in the LLC or partnership, and regardless who is obligated on the nancing.

» Aggregate $2,000,000 in total Gateway Mortgage Group loan amounts.

» Minimum of 2 years’ landlord experience documented on validated United States Federal tax return(s).

» For Fannie Mae Product – Refer to Fannie Mae Selling Guide B2-2-03.

» For Freddie Mac Product – Refer to Freddie Mac Selling Guide, Chapter 22.22.1.

Program guidelines for FNMA, FHA, VA, USDA, and HUD 184 are determined by the individual Agencies and are available on their respective websites; Agency guideline overlays are as follows:

Gateway Mortgage Group Correspondent Overlay Matrix

Program guidelines for FNMA, FHA, VA, USDA, and HUD 184 are determined by the individual Agencies and are available on their respective websites; Agency guideline overlays are as follows:

Guideline Product Comment

LTV / CLTV Overlay Conventional – DU

Re Plus

Original LTV > 80% and MI still in force – Current MI certicate must be transferred from one of the Gateway-approved MI companies. Copy of transferred MI certicate

required prior to loan purchase. MI coverage from any other provider unacceptable.

DU may oer a property Fieldwork Waiver. If oered, DU must be rerun with the estimated value provided by DU.

All Texas Equity properties require full Fannie Form 1004 regardless of AUS nding.

Occupancy Units LTV/CLTV

Primary 1-4 150%

Home 1 150%

Investment 1-4 150%

Mortgage Insurance Conventional Approved MI companies: Arch/United Guaranty, Essent Guaranty, Genworth, MGIC, National MI, and Radian.

Unacceptable MI types:

o Lender Paid Monthly, Split or Annual Premium MI

o Minimum or Reduced MI requiring a loan level price adjustment regardless of AUS ndings.

See Product Descriptions for those products eligible for LPMI.

Natural Disasters All Client must represent and warrant the existence and condition of the subject property at time of purchase.

Clients may call FEMA, (202) 646-4600, to obtain a current list of disaster areas or visit the FEMA website at http://www.fema.gov/news/disasters.fema.

Depending on the nature and timing of the disaster, a Property Condition Certication may be required.

Appraisers must comment on the natural disasters’ impact on marketability and value for appraisals completed within 90 days of the disaster declaration.

Non-Arm’s Length and

Conict of Interest

All Non-arms-length and Conict of Interest transactions are transactions in which there is a relationship or business aliation between the borrower, seller, and/or lender.

Non-arms-length transactions require full documentation including 2 years federal tax returns and Fannie 1004.

Not allowed if new construction and the borrower is the builder or aliated with or related to the builder/developer.

Satisfactory VOM’s required on all liens on subject property conrming the transaction is not a bailout.

Conversion of Primary

Residence

All No Rental Income considered for any lease executed with a family member or interested party to the purchase or loan transaction.

Principal Curtailments at

Closing

All For all loans other than “No Cash-out” or “Limited Cash-out” renances (excluding Texas Home Equity Renances), a curtailment to refund the overpayment of fees or

charges paid by the borrower may not exceed lesser of 2% of the loan amount or $500 ($250 max on DU Re Plus), in accordance with applicable regulatory guidelines,

and must be clearly reected as a Principal Curtailment on the HUD-1or Closing Disclosure.

Streamline Renance FHA, VA, USDA, HUD

184

FHA/VA/184: Streamline renances (qualifying and non-qualifying) must meet 620 minimum credit score.

USDA: Streamline renances (qualifying and non-qualifying) must meet 640 minimum credit score.

0x30 late mortgage payments in the last 12 months or life of loan if less than 12 months.

Minimum documentation required:

» single line tri-merge credit report

» verication of sucient assets to close if necessary

Second homes and investment properties are not eligible for streamline renance.

USDA streamline only considered if current loan being renanced is USDA.

RD Streamline ‘Pilot’ Program not allowed.

Gateway Mortgage Group Correspondent Overlay Matrix

Program guidelines for FNMA, FHA, VA, USDA, and HUD 184 are determined by the individual Agencies and are available on their respective websites; Agency guideline overlays are as follows:

Guideline Product Comment

Reserves VA Manual Underwrite: 2 months PITI

Third Party Originations

(TPO)

All TPO Client approval is granted on a case-by-case basis. This overlay matrix does not contain all of the overlays for TPO products. Approved TPO clients must also refer to their

Third Party Origination Addendum Correspondent Loan Purchase and Sale Agreement for applicable product overlays.

Underwriting Conventional Fannie Mae DU with Approve/Eligible or Freddie Mac LP with Accept/Accept

Manual Underwrite not allowed

USDA Must be underwritten by an Underwriter employed by Correspondent with delegated USDA approval from Gateway, plus:

GUS Accept required

Freddie Mac LP or Fannie Mae DU/DO not allowed.

Gateway may purchase, at Gateway’s sole discretion and subject to the terms set forth below USDA loans that have been manually underwritten by a Client. To be eligible

for purchase, each such loan must meet all manual underwriting guidelines as prescribed by USDA and are subject to further restrictions as described in Gateway’s

Overlay Matrix. All other terms and conditions applicable to the sale or repurchase of the loan remain in full force and eect. Gateway reserves the right to pass on the

purchase of any such loan at Gateway’s sole and complete discretion.

Note: Once underwritten, the le must be submitted to the RD oce in the state in which the property is located to obtain a Conditional Commitment prior to closing.

Manual Underwrite overlays: ≥640 credit score, 41% maximum DTI allowable, however, up to 44% maximum DTI allowed with compensating factors. Completion of

USDA approved Homebuyer Education required. Allowed on one-unit properties only. Must include DU/LP/GUS Finding that shows Caution/Refer/Ineligible.

HUD 184 Manual Underwrite if Direct Guarantee correspondent or ONAP prior approval required.

FHA Gateway may purchase, at Gateway’s sole discretion and subject to the terms set forth below, FHA loans that have been manually underwritten by a Client. To be eligible

for purchase, each such loan must meet all manual underwriting guidelines as prescribed by FHA and are subject to further restrictions as described in Gateway’s Overlay

Matrix. All other terms and conditions applicable to the sale or repurchase of the loan remain in full force and eect. Gateway reserves the right to pass on the purchase

of any such loan at Gateway’s sole and complete discretion.

Manual Underwrite overlays: ≥ 620 for Manual Underwrite with one credit score required. Maximum DTI 50%. Manual Underwrite not allowed for High Balance loans.

Must include DU/LP/GUS Finding that shows Caution/Refer/Ineligible.

VA VA prior approval for Joint loans involving (i) a veteran and non-veterans who is not the veteran’s spouse or (ii) involving two or more veterans who intend to use their

entitlement and take title jointly.

Gateway may purchase, at Gateway’s sole discretion and subject to the terms set forth below, VA loans that have been manually underwritten by a Client. To be eligible

for purchase, each such loan must meet all manual underwriting guidelines as prescribed by VA and are subject to further restrictions as described in Gateway’s Overlay

Matrix. All other terms and conditions applicable to the sale or repurchase of the loan remain in full force and eect. Gateway reserves the right to pass on the purchase

of any such loan at Gateway’s sole and complete discretion.

Manual Underwrite overlays: ≥ 620 for Manual Underwrite with one credit score required. Maximum DTI 43% and 2 months PITI in reserves.

Manual Underwrite not allowed for High Balance loans. Must include DU/LP/GUS Finding that shows Caution/Refer/Ineligible.

The information provided herein is for business and professional use only and should not be considered an advertisement to extend credit or a

commitment to purchase loans. All loans are subject to program guidelines and nal underwriting approval. This information is subject to change at