2016-15

Effective July 18^th, 2016

REMN Wholesale is pleased to announce we will be offering the Expanded Plus program.  Self-employed borrowers and borrowers using alternative documentation will benefit from the flexibility offered by the Expanded Plus Program.

Highlights of Expanded Plus are provided below.

• Expanded Plus documentation options:
  • Full Doc and Alt-Doc Limited are available for wage earner/salaried and self-employed borrowers.
  • Alt-Doc 24 and Alt-doc 12 are available for self-employed borrowers with > 25% or more ownership interest in a business. Borrower is qualified using the applicable number of month’s personal bank statements.
  • Asset Depletion is eligible as a stand-alone options or to supplement other income to lower DTI.
• Minimum credit score 660
• 1-4 owner-occupied, 1-unit second home, and 1-4 unit investment properties eligible
• SFD, PUD, condo (FNMA warrantable), site/detached condos, and modular properties eligible
• Purchase, rate/term and cash-out allowed
• Permanent resident aliens, first-time homebuyers, and non-occupant co-borrowers eligible (blended ratios allowed for non-occupant c-borrowers)
• Maximum loan amount $2,500,000
• Maximum LTV 75% (determined by documentation option, credit score, and property type; refer to the Expanded Plus program guidelines for details)

• Maximum DTI is determined by LTV:
  • > 65% LTV: 50%
  • ≤ 65% LTV: 55%
• Maximum DTI for First Time Homebuyer is determined by LTV and Documentation option:
  • Full doc
    • > 65% LTV: 50%
    • ≤ 65% LTV: 55%
  • All other documentation options (Alt-doc 24, 12, Alt-Doc Limited)
    • Maximum 43% DTI

• Residual Income is required as follows:
  • DTI ≤ 43% not required
  • DTI > 43% requires residual income:
    • Residual income is defined as qualifying income minus total monthly obligations
    • The Required amount of residual income is determined by: Subject loan amount multiplied by .45% equals amount of required residual income.  (i.e. loan amount x .45% = amount of required residual income)

• Down payment requirement determined by documentation option:
  • Full Doc, owner occupied: Minimum 10% borrower own funds
  • All others (occupancy and documentation options): minimum 30% borrower own funds
• Gift funds, from an immediate family member, eligible after borrower own funds requirement met
• Mortgage/rental history: 0x30 in previous 12 months (no exceptions)
• Two year employment history in same job or same line of work. Sel-employed borrowers require business to be in existence for a minimum of 2 years
• Borrowers with derogatory credit eligible with 12 months seasoning from event end date to application date
• Borrower may have up to four (4) financed properties, including subject
• No seasoning requirement for refinance transaction
• Reserve requirements determined by loan amount
• An “Approve/Ineligible” or “Refer” AUS finding is required. After AUS submission, REMN WS will manually underwrite the loan
• 5/1 LIBOR ARM only
• Available in all states with the exception of: IL, NE and NY
• The following are ineligible on the Expanded Plus program:
  • Inter-vivos trust
  • Appraisal Transfers
  • Power of Attorney
  • Non-permanent resident aliens
  • Limited and general partnerships, corporations and LLC entities as the borrower type.
• The Expanded Plus program is not available for Emerging Bankers
• The commitment fee buyout option is not eligible on the Expanded Plus program.

The following have been posted on REMN Wholesale website:

• Expanded Plus Guidelines
• Expanded Plus Documentation Option Comparison
• Updated Loan Submission Form

Expanded Plus loans will require a manual lock.  Brokers should complete the REMN Manual Lock Request form, located on the broker portal, under the “current pricing” page.

Email the completed form to remnlock@remn.com .

The REMN rate sheet will reflect Expanded Plus pricing effective July 18, 2016.

If you have any questions, please contact your Account Executive.