Closed End 2nds

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Section 1.0 Introduction

1.1 Overview and Underwriting Philosophy

The Amres Corporation Eligibility Guideline (hereafter referred to as “Guidelines”) outline the requirements for residential mortgage loans to be closed with Amres Corporation (hereafter referred to as “Amres”). This document serves to provide guidance and consistency in the underwriting and review of the loan and its characteristics related to the borrower and property. Amres offers programs to lenders for borrowers who may have limited access to credit. As such, Amres evaluates many elements of the loan but primarily relies on the evaluation of the borrower’s ability to repay the loan. In addition to ability-to-repay (ATR), Amres’s programs take into consideration—with the expectation of full verification and examination—the borrower’s income stability and employment history, credit history, asset position, and the property being used for collateral. Each loan is assessed on the basis of its individual merits with a common sense and holistic approach to the borrower’s ability and willingness to repay. To this end, Amres’s programs consider the benefit to the borrower on each loan.

1.2 Underwriting Criteria

The Guidelines are intended to reference and supplement the Fannie Mae Seller Guide. For specific information concerning qualification requirements that are not referenced in this document, Originators should refer to the Fannie Mae Seller Guide. For specific loan characteristic and eligibility requirements related to LTV, FICO, DTI, etc., refer to the Amres Corporation Matrix (hereafter referred to as “Matrix”). Loans closed with Amres must meet the criteria of the current published Guidelines and Matrix as of the file submission date.

1.2.1 Ability‐To‐Repay (ATR)

Amres Corporation recommends an Ability-To-Repay Borrower Attestation or similar document be included with all loan files closing packages.

1.2.2 Alternative Loan Review / AUS

All loans must be manually underwritten. The Underwriting Approval, Income Calculation Worksheet, and the Underwriter’s determination of ATR is required as part of the credit package. All loans considered suitable for delivery to Amres must have evidence of agency ineligibility. In the loan file, this is documented via either (1) a completed Alternative Loan Review Form, or similar form, (2) a DU or LP underwriting findings report verifying the loan does not qualify for agency delivery (AUS Findings with a “Refer” or “Approve/Ineligible” response).
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