Section 1: Jumbo Products

1.1. Loan Programs  (3/15/2011 10:25:45 AM)
  • Not assumable.

  • Temporary buydowns are not permitted.

  • No prepayment penalty.

    • 1.1.1. Fixed Rate  (3/16/2011 1:08:31 PM)
    Fixed Rate Jumbo Programs
    Program
    Code    		Loan
    Program    		AU
    Eligibility
    J203030 Year FixedDU
    J201515 Year FixedDU

    1.1.2. Adjustable Rate  (5/12/2011 9:12:14 AM)
    Adjustable Rate Jumbo Programs
    Program
    Code    		Loan
    Program    		First/Periodic/Life
    Adjustment Caps    		AU
    Eligibility
    J20313/1 LIBOR ARM2/2/6DU
    J20515/1 LIBOR ARM5/2/5DU
    J20717/1 LIBOR ARM5/2/5DU
    • The index is the 1-year London Interbank Offered Rate ("LIBOR") which is the average of interbank offered rates for 1-year U.S. dollar-denominated deposits in the London market, as published in The Wall Street Journal. The index figure used is the most recent index figure available as of the date 45 days before each Interest Change Date.
    • The margin will remain the same throughout the life of the loan. Refer to the rate sheet for the current margin.
    • On the first Interest Change Date, the interest rate adjusts to a rate equal to the 1-Year LIBOR Index value plus the Gross Mortgage Margin, subject to a First Change Date Cap.
    • Annually, after the first Interest Change Date, the Gross Coupon Rate adjusts to a rate equal to the 1-Year LIBOR Index value plus the Gross Mortgage Margin, subject to a Periodic Cap.
    • Over the life of the loan, the maximum decrease (floor) is the margin and the maximum increase is the Start Rate plus the Life-of-Loan Cap.
    • No conversion option is available.
    • Generally, the borrower is qualified with the principal and interest payment at the higher of the Start Rate or the Fully Indexed Rate. However, an ARM with an initial fixed-rate period of 5 years or less is qualified with the principal and interest payment at the higher of the Start Rate plus 2% or the Fully Indexed Rate.

    1.2. Loan Limits  (3/25/2011 9:56:08 AM)
    Maximum Loan Amount
    $3,000,000

    Minimum Loan Amount
    $50 above the maximum allowed under the Super Conforming loan program based on the county in which the subject property is located.


    1.3. Maximum LTV / CLTV  (3/25/2011 11:25:07 AM)
    Transaction TypeLoan AmountMax LTV / CLTV
    Primary ResidenceSecond Home
    Purchase
    Rate & Term Refinance    		Minimum to $1,500,00075%65%
    $1,500,001 to $2,000,00070%60%
    $2,000,001 to $3,000,00060%50%
    Cash Out RefinanceMinimum to $2,000,00060%-
    General Notes:
    Eligible Property Types:
  • 1 Unit Single Family Residence (detached and attached)
  • 1 Unit PUD (detached only)
    • Minimum FICO: 720
    Maximum qualifying ratios:
  • LTV/CLTV > 65%: 38% Housing / 40% Total Debt-to-Income
  • LTV/CLTV < 65%: 38% Housing / 45% Total Debt-to-Income
    • Secondary financing is not permitted.
    Non-permanent resident aliens are ineligible.
    Non-occupant co-borrowers are ineligible.
    Minimimum Post Close Liquidity (PCL) of 10% or more is required. See section 2.6.4. Reserves.
    A full appraisal is required regardless of any MAF reflected on AU Feedback Certificate allowing a less comprehensive appraisal report:
  • 1 Unit Single Family Residence and PUD-Detached: Form 70
    • Appraisal desk review is required.
    A Field Review is required for loan amounts > $1,500,000.
    Conversion of a Primary Residence: If the borrower's current residence will not be sold prior to funding, even when buying-up, a lease agreement and security deposit cancelled check are required to demonstrate the borrower's intent to occupy the subject property. Conversion to a second home is not allowed.
    Seasoning requirements:
  • All refinance transactions require a minimum of 6 months seasoning.
  • Cash-out refinance transactions require a minimum of 12 months ownership history.
    • Maximum Cash Out: $150,000 including the payoff of any non-rate/term items (see Section 3.6.2).