SUCCESS STORIES

Doc Type: Full Doc
Occupancy: Primary
Product: 7/6 S ARM
LTV: 85%
FICO: 726

Scenario: Borrower had two 60 day mortgage lates as a result of an auto payment issue with their bank that was resolved and back payments made immediately following.

Resolution: Considered, borrower to provide LOE explaining situation.

Comp Factors: Credit profile free from derogatory remarks except for mortgage lates, strong assets, low DTI, and long term property ownership.

Doc Type: Bank Statement
Occupancy: Primary
Product: 30 FRM
LTV: 85%
FICO: 780

Scenario: Borrower had >3 but under 10 NSFs in 12 months due to their customers checks being returned/bouncing.

Resolution: Considered, LOE provided by borrower aligned with bank statements and NSFs were not fault of borrower.

Comp Factors: Upward income trajectory, good asset position both business and personal, and long term employment.

Doc Type: Asset Qualifier
Occupancy: Primary
Product: 7/6 S IO ARM
LTV: 63%
FICO: 632

Scenario: Borrower had previous credit issues since resolved, including 120 day mortgage lates. All tradelines were current and paid on time for most recent 14 month period and borrower was looking to use CO proceeds to pay down margin loan used to acquire subject property for cash <6 months prior.

Resolution: Considered, allowed CO proceeds to be used to pay down margin loan and use account value post-pay down toward asset count. Documented funds used to acquire subject property and LOE on credit history.

Comp Factors: Exceptionally strong asset position, bolstered in a few months by sale of REO, low LTV, and credit score not necessarily indicative of current profile.

Doc Type: Bank Statement
Occupancy: Primary
Product: 30 FRM
LTV: 55%
FICO: 762

Scenario: Borrower was in a seasonable business where summer is busiest. Borrower provided LOE addressing nature of business and was able to effectively pivot business operations to a remote work environment and still have a strong summer despite pandemic. 12 months bank statements provided, utilizing CPA letter for expense ratio.

Resolution: Considered, CPA confirmed reasoning for decline based on seasonality of business.

Comp Factors: Strong reserves, low LTV, good credit profile showing timely payments.

Doc Type: Asset Qualifier
Occupancy: Primary
Product: 30 FRM
LTV: 75%
FICO: 762

Scenario: Borrower seeking to use joint funds from spouse not on loan, but on title, toward allowable asset count.

Resolution: Considered, validated spouse had minimal debt.

Comp Factors: Strong asset position, borrower had clean credit profile.

Doc Type: Asset Qualifier
Occupancy: Primary
Product: 30 FRM
LTV: 54%
FICO: 742

Scenario: Borrower looking to purchase a primary and was short < 5% assets on a qualification method.

Resolution: Considered with no adjustment, borrower had supplemental assets but as an ineligible asset type.

Comp Factors: Low LTV, strong forward looking asset position.

Doc Type: Bank Statement
Occupancy: Primary
Product: 30 FRM
LTV: 53%
FICO: 745

Scenario: Borrower has a 1x30x12 on a departing residence that occurred shortly after property was sold.

Resolution: Considered, borrower provided LOE and late was an aberration.

Comp Factors: Otherwise strong credit profile, low LTV, strong upward income trajectory.

Doc Type: Bank Statement
Occupancy: Primary
Product: 7/6 S ARM
LTV: 70%
FICO: 683

Scenario: Between 1-2 years ago, borrower switched to being a self-employed a financial advisor with at least 10 years experience in the industry on W2. While income was declining, an updated statement cured the deposit trend. DTI was also near 55, but borrower had a 680+ FICO, 70 LTV, purchase transaction, met the residual income requirements and had 6 months additional reserves on top of what would be needed to waive.

Resolution: Considered, borrower provided updated statement and verified 2+ years of previous employment in same line of work

Comp Factors: Long term previous employment, previous mortgage tradeline history paid timely over lifetime, good reserves.

Doc Type: Investor Cash Flow
Occupancy: NOO
Product: 30 FRM IO
LTV: 38%
FICO: 704

Scenario: Borrower had 2x30x12 due to switching servicers and inadvertently not settling up a new ACH.

Resolution: Considered, lates were aberrations and not indicative of overall credit profile.

Comp Factors: Otherwise clean credit, low LTV, good reserves.

Doc Type: Bank Statement
Occupancy: Primary
Product: 30 FRM
LTV: 39%
FICO: 801

Scenario: Borrower had two business accounts, request was to combine the two business accounts into one income stream for calculation purposes. One account showed a decline in income, while the other showed an offsetting increase in deposits.

Resolution: Considered, when combined, the overall deposits were increasing.

Comp Factors: Low LTV, robust credit profile, low DTI, monthly payment going.

Doc Type: Bank Statement
Occupancy: Primary
Product: 30 FRM
LTV: 75%
FICO: 770

Scenario: Borrower was self-employed and owned < 50% of a business with business partner owning the remaining share. Borrower runs the business while business partner administered services.

Resolution: Considered, documented and tracked ownership interest and allowed use based on proportionate ownership percentage.

Comp Factors: Strong FICO, robust credit profile, low DTI, great reserves.

Doc Type: Asset Qualifier
Occupancy: Primary
Product: 10/6 S ARM
LTV: 56%
FICO: 747

Scenario: Borrower was short assets up to 15% utilizing method 3.

Resolution: Considered, shortage not to exceed 15%.

Comp Factors: Low LTV, good credit profile with high FICO and borrower owns various properties all paid timely.

Doc Type: Bank Statement
Occupancy: Primary
Product: 30 FRM
LTV: 75%
FICO: 727

Scenario: Borrower accidentally deposited business income into personal account and was looking to use deposits toward qualifying income.

Resolution: Considered, verified deposits were part of income stream and sourced/documented funds being received.

Comp Factors: Good credit profile, low DTI, long term employment.

Doc Type: Full Doc
Occupancy: Primary
Product: 30 FRM
LTV: 80%
FICO: 720

Scenario: Borrower had just under 7 years distribution continuance and assets in account were borrower’s own but seasoned for less than 12 months in an institution.

Resolution: Considered, documented source of funds for distributions as borrower’s own. Borrower had additional assets beyond distribution account to provide future income and sufficient assets to repay loan in full.

Comp Factors: Strong asset position, DTI more than 10% below max.

Doc Type: Investor Cash Flow
Occupancy: NOO
Product: 30 FRM
LTV: 70%
FICO: 701

Scenario: Borrower was purchasing an investment property and looking to use business funds transferred post-application without CPA letter verifying impact on business operations.

Resolution: Considered, evaluated business and agreed waive the CPA letter. Borrower was 100% owner of the business and while transfers were post-application, borrower had at least 5% of own funds into transaction.

Comp Factors: Low LTV, FICO at least 20 points above requirement, strong DSCR.

Doc Type: Bank Statement
Occupancy: Primary
Product: 30 FRM
LTV: 61%
FICO: 773

Scenario: Borrowers collectively owned 23.5% of a business, with one being the CEO, and looking to use income to qualify.

Resolution: Considered, used proportionate share of business ownership toward qualification.

Comp Factors: Strong reserves, low LTV, great credit profile, 24 months bank statements provided.

Doc Type: Investor Cash Flow
Occupancy: NOO
Product: 30 FRM IO
LTV: 25%
FICO: 722

Scenario: Borrowers didn’t have any rental management experience and recently inherited a property they planned to convert into an investment property. Subject property was located on the opposite coast compared to where the borrowers live and they were going to use a rental management company to handle the operations.

Resolution: Considered, required proof that property was going to be under management.

Comp Factors: Good credit profile, low LTV, strong proposed DSCR.

Doc Type: Bank Statement
Occupancy: Primary
Product: 30 FRM
LTV: 60%
FICO: 765

Scenario: Borrower had two tradelines in forbearance, one property to be sold prior to closing and the other to be retained. Borrower was selling his current residence and leveraging assets toward the new purchase.

Resolution: Considered, required proof that the retained property was reinstated and brought current.

Comp Factors: Low LTV, strong reserves, and low DTI.

Doc Type: Bank Statement
Occupancy: Primary
Product: 10/6 S IO ARM
LTV: 65%
FICO: 674

Scenario: Borrower was looking to purchase an agriculturally zoned property with a small animal pen.

Resolution: Considered, appraiser had to confirm no adverse impact on marketability due to zoning and verify no agricultural use of the property.

Comp Factors: Low DTI, long term employment, and good liquidity.

Doc Type: Full Doc
Occupancy: Primary
Product: 30 FRM
LTV: 80%
FICO: 778

Scenario: Borrowers both previously worked in W2 jobs and transitioned to consulting agreements. Borrowers lived and filed taxes separately and were purchasing subject in new city closer to B1. While B2’s tax transcripts were verified, B1’s weren’t going to come in until after the closing date. Request was to acquire transcripts post-closing.

Resolution: Considered, allowed purchase loan to close without transcripts for B1. Required proof of filing and payment made for B1’s tax returns and to provide transcripts when they are received.

Comp Factors: Strong reserves, low DTI still if not considering B1’s income, great reserves $1MM+

Doc Type: 1099
Occupancy: Primary
Product: 30 FRM IO
LTV: 80%
FICO: 798

Scenario: Borrower switched from W-2 to 1099 towards the end of 2020, now on four contracts on 1099 basis for go forwards. Looking to use as current income. Borrower also had a short closing timeline and requested a second appraisal given market conditions.

Resolution: Considered, allowed borrower to close with a field review in lieu of a second appraisal. Documented the file with previous history with current and future contracts supporting income. Base expense factor on 2020 returns on Schedule C and apply to the contracts.

Comp Factors: Significant post-closing assets, 10+ years in line of work, minimal consumer debt.

Doc Type: Bank Statement
Occupancy: Primary
Product: 30 FRM
LTV: 73%
FICO: 713

Scenario: Borrower was 100% owner of business and looking to use transfers into business account from another business they owned just under 25% of. Borrower was President of the latter company and the two companies which were in the same industry.

Resolution: Considered, required CPA letter confirming transfers into the business account were considered revenue and 3 months business bank statements from transferring business account.

Comp Factors: LTV below max, low DTI, monthly payment going down

Doc Type: Investor Cash-Flow
Occupancy: NOO
Product: 30 FRM IO
LTV: 56%
FICO: 796

Scenario: Borrower had various mortgage trade lines listed on credit and was looking to refinance. Borrower previously had the mortgage trade lines in forbearance and reinstated all prior to application but not within three scheduled monthly payments.

Resolution: Considered, documented all mortgages were taken out of forbearance and all payments due post-forbearance were made timely.

Comp Factors: Low LTV, high FICO, long term homeownership

Doc Type: Investor Cash-Flow
Occupancy: NOO
Product: 30 FRM
LTV: 60%
FICO: 774

Scenario: Borrower exceeded the financed property limit and was looking to refinance a loan pack of four. Borrower owned various rental properties and had overall good equity position in REO.

Resolution: Considered, required 3 year PPPs on all.

Comp Factors: LTVs below max, strong rental management experience with long term property ownership, mortgage tradelines all paid timely, strong DSCRs, and no other exceptions on file.

Doc Type: Bank Statement
Occupancy: Primary
Product: 30 FRM
LTV: 75%
FICO: 697

Scenario: Borrower recently took over the family business in 2021 and had less than two years S/E. Borrower previously worked for/managed the business prior to becoming 100% owner early last year. FTHB looking to purchase a primary using mostly their own funds with good post-closing reserves.

Resolution: Considered, ownership arc made sense and borrower had to document at least 2 years of previous experience in the same line of work.

Comp Factors: Low DTI, LTV below max, long term in line of work.

Doc Type: Investor Cash-Flow
Occupancy: NOO
Product: 30 FRM IO
LTV: 80%
FICO: 747

Scenario: Borrower was looking to purchase an investment property. Property was fully occupied but tenants didn’t have executed leases and request was to allow DSCR to be calculated using current rent amount. Additionally, borrower was renting from a private landlord and provided cancelled checks to support the VOR.

Resolution: Considered, required a 3 year PPP and cancelled checks supported timely pay history.

Comp Factors: High FICO, long term homeownership, strong DSCR, experienced investor.

Doc Type: Investor Cash-Flow
Occupancy: NOO
Product: 30 FRM IO
LTV: 72%
FICO: 819

Scenario: Borrower purchase property >5 years ago but re-organized ownership structure in the last 6 months for estate planning purposes. Borrower initially planned to split ownership 50/50 but title was erroneously transferred out of their name within family. When borrower found out, they immediately took steps to address but it was post-application.

Resolution: Considered, clean mortgage history for subject listed on credit and verified borrower was making payments

Comp Factors: Good credit profile, long term homeownership.

Doc Type: Investor Cash-Flow
Occupancy: NOO
Product: 30 FRM IO
LTV: 52%
FICO: 716

Scenario: Borrower had a second lien on subject that matured with a balloon payment due. Within the timeframe, the lien was between 30-60 days past due and the prior servicer would not accept payments. We were able to get sufficiently comfortable with the details and recommend an exception decision allowing the loan to be brought in, underwritten, and a payoff able to be requested prior to the filing of a NOD.

Resolution: Considered, required copy of the balloon note.

Comp Factors: Low LTV, various other mortgage trade lines paid timely, long term homeownership.

Doc Type: Asset Qualifier
Occupancy: Primary
Product: 30 FRM IO
LTV: 50%
FICO: 772

Scenario: Borrower had a pre-foreclosure that showed up in review and explained as a precautionary measure taken by borrower’s current lender. Borrower’s current lender is a short term lender and typically works with the borrower to extend the loan on a yearly basis. This occurred consistently since inception, with borrower providing a pay history and even pre-paying some months as an incentive for the lender to extend. Rate/term refinance, monthly mortgage payment going down.

Resolution: Considered, worked with the borrower to demonstrate timely payments and felt comfortable reducing the recent credit event LLPA in half based on documentation.

Comp Factors: Strong reserves, long term homeownership, low LTV, good credit profile, explanation made sense and was consistent with documentation.

Doc Type: Bank Statement
Occupancy: Primary
Product: 30 FRM
LTV: 89%
FICO: 715

Scenario: Exception was initially approved for a moderate decline in deposits up to over 12 months, with two invoices dated in February held out as evidence business was back on track. When neither invoice was evident on the February bank statement, the borrower advised it was due to the invoices still being outstanding. As a result, the income trend was poised to decline further all while the loan was set to close and lock expire.

Resolution: Considered the updated exception, required that a copy of the additional payments received to clearly indicate the deposit of funds tied together with the invoices. Without the evidence of additional payments received, the LTV would have been lowered.

Comp Factors: High FICO with clean credit, strong residual income.

Doc Type: Bank Statement
Occupancy: Primary
Product: 30 FRM
LTV: 80%
FICO: 656

Scenario: Borrower was looking for 10% LTV to 85 and had declining deposits up to 20%. Borrower was a FTHB but had a rental housing history and most funds to close were coming from borrower’s own funds.

Resolution: Countered to max 80 LTV, housing pay history had to be verified timely.

Comp Factors: Low DTI, long term employment, deposits while declining were consistent/stable.

Doc Type: Bank Statement
Occupancy: Second Home
Product: 30 FRM
LTV: 75%
FICO: 745

Scenario: Borrower had declining deposits over 12 months and provided a letter advising due to nature of work. The most recent bank statement available was provided and showed strong deposits while lending consistency to the explanation provided. Borrower was also looking to use business funds to close with 50% ownership and vest title in an LLC with 50% ownership. Borrower’s spouse was the other LLC owner, who was not a borrower on the loan application. Borrower owned their primary residence and an investment property with clean mortgage pay histories. Good post closing liquidity.

Resolution: Considered, exceptions made sense with profile and utilized 50% of business assets.

Comp Factors: Strong FICO and credit with no derogatory information, long term employment, low DTI, great reserves.

Doc Type: Bank Statement
Occupancy: Primary
Product: 30 FRM
LTV: 53%
FICO: 673

Scenario: Borrower owned 100% of business and had two separate business accounts for ease of accepting different payment methods. Both accounts showed a declining income trend over 12 months. If combined, the decline was slightly less and painted a more favorable and accurate picture of income.

Resolution: Considered, both accounts had a 12 month history and the explanation made sense based on loan details.

Comp Factors: Low LTV, low DTI, long term employment, long term homeownership.

Doc Type: Bank Statement
Occupancy: Primary
Product: 30 FRM
LTV: 79%
FICO: 716

Scenario: Borrower owned their business 50%/50% with a non-borrowing title spouse and set up a second business account for accounting purposes at the direction of their CPA. Borrower’s business would have realized the income into one account if the second was not set up. They were looking to utilize both accounts toward qualifying income.

Resolution: Considered, documentation provided aligned with the explanation from CPA. Following the initial exception, an additional consideration was requested and we were able to get comfortable with the profile and still move forward.

Comp Factors: Strong FICO, long term employment, additional income not utilized to qualify.

Doc Type: Asset Qualifier
Occupancy: Primary
Product: 30 FRM
LTV: 80%
FICO: 721

Scenario: Borrower was looking to utilize inherited funds to qualify without the traditional 6 months seasoning on an asset qualifier. Award letter and other documentation was provided to validate details of the transaction.

Resolution: Considered, documentation made sense and we were able to find a path forward.

Comp Factors: Good residual income, strong FICO and profile, minimal consumer debt.

Doc Type: Bank Statement
Occupancy: Primary
Product: 30 FRM
LTV: 73%
FICO: 747

Scenario: Borrower was looking to close with nested LLC vesting, where LLC was owned 100% by a non-natural person (Family Trust) that our borrower was grantor and trustee of.

Resolution: Considered, all members had to sign closing documents in their respective capacity.

Comp Factors: Long term employment, low DTI, strong credit profile, long term property ownership.

Doc Type: Bank Statement
Occupancy: Primary
Product: 30 FRM
LTV: 65%
FICO: 690

Scenario: Exception was requested for borrower not being able to provide traditional satisfactory evidence they were a beneficiary of the trust generating income. Borrower was entitled to his share of the trust income and in lieu of showing ownership of the trust, we requested additional information were able to document borrower’s entitlement to assets generating income, continuance, and accounts utilized through a government entity.

Resolution: Considered, we were able to verify his continued entitlement to income from the trust.

Comp Factors: Low LTV, FICO at least 20 points above requirements, 24 months bank statements provided.

Doc Type: Investor Cash Flow
Occupancy: NOO
Product: 30 FRM IO
LTV: 75%
FICO: 735

Scenario: Exception was requested for <1.000 DSCR on a cash-out transaction. Borrower owned property free and clear and file was initially set up with a >=1.000 DSCR until the market rents came in a touch low ($100) on the appraisal, sending the DSCR just below 1.000.

Resolution: Rather than checkbox and administer as an exception, we used common sense and provided a solution that removed an operational step and increased efficiency while at the same time avoiding having to re-price the loan to include the <1.000 DSCR LLPA listed on the rate sheet.

Comp Factors: Long term homeownership, experienced investor with good credit history.

Doc Type: Investor Cash Flow
Occupancy: Primary
Product: 30 FRM
LTV: 75%
FICO: 774

Scenario: Borrower was looking to utilize lease amounts that slightly exceed market rents. Long term leases were in place with lease extensions set to expire shortly after closing. Loan qualified based on using the interim lease extension figures. Following the expiration of the lease extensions, fully executed new 12 month term rental agreements above current rental amounts were provided and security deposits received.

Resolution: Considered, documented all interim lease extensions and verified rent received as agreed for two months prior to the application date.

Comp Factors: Long term homeownership on various properties, clean credit profile, high FICO.

Doc Type: Investor Cash Flow
Occupancy: NOO
Product: 30 FRM
LTV: 70%
FICO: 680

Scenario: Borrower was set to close and on the last lock extension available. While finalizing the asset figures, updated statements were received and proved to be just short of meeting the reserve requirements needed. Borrower had access to unsecured funds that represented less than 2 months of the funds needed for reserves, with the rest of verified assets blended between personal, business, and gift funds.

Resolution: Considered, borrower had access to additional assets but due to the time sensitive nature of the request we made the accommodation and were able to close the transaction.

Comp Factors: Long term homeownership, experienced investor.

Scenario: Borrower was looking to purchase a unique log cabin property as an investment. Borrower had a strong credit profile and provided a compelling motivation letter that aligned with consumer sentiment. Analytics were provided for scope on the property’s cash-flow.

Resolution: Considered, appraisal showed like-kind comps and borrower was an experienced investor.

Comp Factors: Strong FICO, long term homeownership.

Doc Type: Asset Qualifier
Occupancy: Second Home
Product: 30 FRM IO
LTV: 70%
FICO: 643

Scenario: Borrower was looking to purchase a second home at 70 LTV. Absent a 30 day auto late from last year driving the credit score, borrower had a generally clean credit profile with various trade lines paid timely including a mortgage attached to their primary residence. Borrower was also flush with liquidity and had nearly $1MM in reserves above what’s required.

Resolution: Considered, strong collateral and credit score wasn’t reflective of overall profile.

Comp Factors: Good reserves, long term employment.

Scenario: Exception came in for a SFR utilized as an elderly care facility. A care agreement was provided there were questions on services involving medical care. We reviewed to agreement in detail and were able to get comfortable with the transaction type through research and found a path forward. Borrower also had a history of managing this type of property/business.

Resolution: Considered, reviewed care agreement and determined medical care was not being provided.

Comp Factors: Good FICO, strong reserves, long term employment and long term homeownership.

Doc Type: Bank Statement
Occupancy: Primary
Product: 10/6 IO ARM
LTV: 75%
FICO: 630

Scenario: Borrower was a FTHB and rented their current residence for 5 years. There was a lease in place but borrower paid their rent in cash and was unable to provide cancelled checks. Borrower was 100% owner of a construction company and would withdraw cash then pay multiple months of rent early at one time. We received a private VOR confirming the rent was paid timely.

Resolution: Considered, situation made sense and was supported by documentation.

Comp Factors: Low DTI, strong reserves, long term employment.

Scenario: Borrower recently finalized their divorce and was looking to use alimony/child support income to qualify with less than 6 months receipt. The subject former marital property was assigned to our borrower via fully executed divorce decree and the refinance transaction was aimed at actualizing. Borrower’s employment was current/active and they were looking to use the alimony/child support income toward qualifying income. Borrower received the first payment as outlined in the decree finalized a month prior.

Resolution: Considered, documented at least one alimony/child support payment as received and any additional through closing.

Comp Factors: Low LTV, strong FICO, long term employment.