FNMA – DU Refi Plus 9/28/2012 1

PROGRAM

Fannie Mae – D.U. REFI PLUS (Must have been purchased by FannieMae prior to June 1, 2009 and be an existing

Fannie Mae eligible loan.)

REVISION DATE 9/28/2012

PRODUCT CODES

10 Yr DU Refi Plus, 10 Yr DU Refi Plus PIW, 15 Yr DU Refi Plus, 15 Yr DU Refi

Plus PIW, 20 Yr DU Refi Plus, 20 Yr DU Refi Plus PIW, 30 Yr DU Refi Plus, 30 Yr

DU Refi Plus PIW

PURPOSE

A program designed for the borrowers who have demonstrated an acceptable pay

history, but due to a decline in home prices or where mortgage insurance is not

available have been unable to refinance to obtain a lower payment or take advantage of

a better product. May be used to:

- Pay off unpaid principal balance on existing first (cannot use to pay off existing

subordinate financing).

- Pay off closing cost, prepaid items and points.

- Cash back to borrower - $250.00 maximum (Texas “$0” cash back).

- If cash to borrower exceeds $250.00, loan may have principal curtailment at closing

not to exceed the lesser of 2% or $2000.

TERM

10, 15, 20 or 30-Year Term D.U. – “Approve/Eligible” or “EA-1/Eligible”

BORROWER BENEFIT

A borrower is required to benefit when requesting a DU Refi Plus Loan.

The borrower benefit requirement can be met in four different ways based on changes

in the terms between the existing mortgage and the new mortgage loan. If any of the

following are met, the borrower benefit provision has been satisfied:

- Reduction in the borrower’s monthly principal and interest payment;

- Reduction in the interest rate;

- Reduction in the amortization term; or

- Movement to a more stable product.

If the borrower’s payment, interest rate or amortization period is staying the same or

increasing, the borrower must be moving to a more stable product. The borrower may

not extend their amortization period (although a shorter amortization period is

considered to comply with the standard), or move from a fixed-rate mortgage to an

adjustable-rate mortgage.

ELIGIBILITY - When a borrower is being removed with the transaction, lenders may now disregard

the message requiring a 12 month payment history or evidence of the previous

borrower’s death.

- A borrower may be removed from the new loan without having to also be

removed from title.

- A borrower can be added to the new loan, provided the existing borrower(s) is

retained. Borrower added must not be a non-occupying borrower.

- DU Feedback Offering – DU Refi Plus – (Refi Plus-manual underwrite not

available).

TRANSACTION TYPE Rate / Term (cash-out not allowed)

FNMA – DU Refi Plus 9/28/2012 2

NOT ELIGIBLE

- No Community Seconds.

- Loans with new subordinate financing.

- Loans with interest only feature.

- Loans with adjustable rate mortgages with fixed rate periods less than 5 years.

- Loans with balloon feature.

- Loans through My Community

- Loans with a credit enhancement.

- LTV/CLTV > 80% (Texas Loans Only) that fall under 50(a)(6) Article XVI.

- Refi Plus – manual underwrite.

- LPMI that is paid monthly or annually by the lender.

OCCUPANCY Owner-Occupied, Investor and Second Homes.

Texas – Principal residence only.

PROPERTY TYPE

Principal Residence:

Single Family

Attached and Detached PUDs

Condos (underwriter must verify property is not a Condotel)

Multi-family (2-4 units)

Second Homes and Investment Properties:

Single Family

Attached and Detached PUDs

Condos (Underwriter must verify property is not a Condotel)

MORTGAGE

INSURANCE

Original LTV < 80% mortgage insurance will be waived by D.U.

Crescent will now allow a DU Refi Plus where the original loan had a LTV > 80% as

long as the mortgage insurance was issued by one of the following companies:

- Radian - RMIC

- MGIC - PMI

- Genworth - CMG

- UG – NOTE: any file requiring the transfer of a UG certificate will be

charged 50 basis points and lock must be adjusted with marketing reflecting

this cost.

DU findings must include the following information:

- Mortgage Insurance Provider

- Mortgage Insurance Certificate Number

- Coverage Amount

Crescent will facilitate the transfer of the mortgage insurance, please allow for

additional processing time. Loan cannot close until we have confirmation of the

transfer from the mortgage insurance company.

Crescent will only allow the transfer of Lender Paid Mortgage Insurance when

the premium was paid as an up-front single premium. LPMI that is paid monthly

or annually by the lender is not available for transfer.

LTV / CLTV

PRIMARY RESIDENCE -SINGLE FAMILY: Max 105% LTV/125% CLTV/HCLTV (only re-subordinating existing Secondary

Financing allowed)

Debt to income ratios: LTV > 80% - max 45% (credit score 620 to 659)

- max 50% (credit score 660 to 719)

- max 55% (credit score at 720 or above)

LTV ≤ 80% - max 55% (all credit scores)

LTV above 105% allowed up to 125% (LTV/CLTV/HCLTV)Minimum 720 credit score

LTV above 125% allowed up to 150% (LTV/CLTV/HCLTV) with the following additional

requirements:

- Satisfactory 24 month mortgage history

- Minimum credit score 720

- 50% max DTI

- MUST obtain a PIW from DU and MUST utilize PIW (Property Inspection Waiver)

For all LTVs over 105% 15, 20 or 30 year product codes only (25 year terms must be

locked under the 30 year product code).

FNMA – DU Refi Plus 9/28/2012 3

LTV/CLTV (Continued)

PRIMARY RESIDENCE –MULTI-FAMILY: Max LTV/CLTV/HCLTV 90% (only re-subordinating existing Secondary

Financing Allowed).

ALL LTV’s max 50% DTI with a Minimum Credit Score 700.

SECOND HOMES: Max 105% LTV/125% CLTV/HCLTV (only re-subordinating existing Secondary

Financing allowed)

Debt to income ratios: LTV > 80% - max 45% (credit score 620 to 659)

- max 50% (credit score 660 to 719)

- max 55% (credit score at 720 or above)

LTV ≤ 80% - max 55% (all credit scores)

LTV above 105% allowed up to 125% (LTV/CLTV/HCLTV) for 15, 20 or 30 year

product codes (25 year terms must be locked under the 30 year product code),

AND borrower must have a minimum 720 FICO score.

INVESTMENT PROPERTIES: Max LTV/CLTV/HCLTV 90% (only re-subordinating existing Secondary

Financing allowed).

ALL LTV’s max 50% DTI with a Minimum Credit Score 700.

MAXIMUM LOAN

$417,000 – (Super Jumbo – Not Available).

APPRAISAL

- D.U. to determine appraisal requirement. Property Inspection Waiver and 2075

- accepted. (Texas loans require full appraisals). If DU findings reflect PIW or 2075

provide a signed PIW Disclosure (click for PIW guidelines & disclosure).

- Must comply with Appraisal Independence.

- If property is located in a natural disaster area, Crescent will require a full

appraisal.

ESTIMATED VALUE MESSAGE

The following message will be issued on DU Refi Plus loan casefiles where the subject

property address can be standardized, and Fannie Mae’s databases have sufficient

information about the property to estimate a value:

Based on the standardized address, Desktop Underwriter estimates the value

of the property at $<estimated value>. This estimated value was developed by

internal proprietary models to help determine eligibility for a DU Refi Plus

property fieldwork waiver. It is not the result of an appraisal, nor was it

developed by a state licensed or certified appraiser. This estimate is intended

to be used solely by the lender to underwrite the refinance of the borrower’s

mortgage loan.

If the DU Refi Plus property fieldwork waiver is offered (meaning the lender’s

estimate was within tolerance of the Fannie Mae estimate), the lender has the option to:

- Resubmit the loan casefile using the estimated value provided by DU: or

- Exercise the waiver using the value entered by the lender (whether based on the

lender’s estimate, the borrower’s estimate, or another value obtained for the

property).

If a waiver is not offered, but DU provides an estimate of value for the property, the

lender has the option to:

- Resubmit the loan casefile using the estimated value provided by DU at which

time you should get the DU property fieldwork waiver; or

- Obtain an appraisal (as indicated in the DU findings report.

FNMA – DU Refi Plus 9/28/2012 4

APPRAISAL-continued INSUFFICIENT INFORMATION MESSAGE

The following message will be issued on DU Refi Plus loan casefiles where the subject

property address cannot be standardized, or Fannie Mae’s databases do not have

sufficient information about the property to estimate a value:

Based on the address and other information available to Desktop Underwriter,

this property is not eligible for a DU Refi Plus property fieldwork waiver.

UNDERWRITING

MUST HAVE PAYOFF STATEMENT FROM CURRENT SERVICER ,

MUST BE DATED FOR DATE OF CLOSING (WITH A PER DAY DIEM)

AND MUST HAVE WHEN LOAN IS SUBMITTED OR THE FILE WILL

NOT BE SENT FOR UNDERWRITING. - Income – As determined from DU findings documentation requirements

- 4506-T – completed and signed – (must be checked with IRS).

- Must have DU – Refi Plus eligibility in feedback message.

- If current loan has subordinate lien, you cannot use funds from new loan to pay off,

but can re-subordinate existing second. Must provide Subordination Agreement for

underwriting.

- An accurate address is critical to make sure it is matched in the FNMA system.

Incomplete or inaccurate addresses can prevent loan from receiving DU Refi Plus

eligibility.

- No limit on number of loans financed through agency (Crescent will limit 2 loans

per borrower to be financed with Crescent).

- 1003 application must be complete (i.e. income, assets, employment, etc.).

- No late mortgage payments in the last 12 months.

- Previous bankruptcy/foreclosures must have occurred over 4 years ago.

- Underwriter must condition for a maximum of $250.00 cash to borrower at closing.

- No restriction on property being listed.

SCC Codes Texas – 147-304

DU Refi Plus – 147

95 – If LTV is greater than 80% & no MI obtained, may have an additional fee.

IMPORTANT – Loan must be Registered/ Locked under DU Refi Plus Product Codes!!!

PROGRAMS SUBJECT TO CHANGE WITHOUT NOTICE

LP Open Access 10/15/2012

1

PROGRAM

LP – OPEN ACCESS Must have been purchased by Freddie Mac prior to June 1, 2009 and be an

existing Freddie Mac Loan.

REVISION DATE 10/15/2012

PRODUCT CODES

15 Yr LP Open Access, 20 Yr LP Open Access, 30 Yr LP Open Access

PURPOSE/ LOAN

AMOUNT

A program designed for the borrowers who have demonstrated an acceptable pay

history, but due to a decline in home prices or where mortgage insurance is not

available have been unable to refinance to obtain a lower payment or take advantage

of a better product.

May be used to pay off the first mortgage (amount includes ONLY the principal

balance and interest accrued through the date the mortgage being refinanced is

paid off). Maximum of 30 days of interest can be included.

Added to the above is the LOWER of the 3 calculations below

1. Actual Closing Costs and Prepaids (not discount points) that are being

rolled into the loan, MINUS a $500 Crescent Adjustment (Note any of

these costs that are being paid by a lender credit should not be included).

2. 4% of the unpaid principal balance MINUS a $500 Crescent Adjustment

(Note ONLY use the principal balance and not the actual payoff

amount).

3. $5000 MINUS a $500 Crescent Adjustment

- - The proceeds of the loan may NEVER be used to pay off or pay down any

junior lien.

- - The loan MUST close using the payoff approved by the underwriter. If, by

closing, the borrower has made an additional payment on the existing

mortgage, the closing agent MUST provide the updated payoff to Crescent

Underwriting to confirm the approved loan amount is still acceptable.

LP-Open Access worksheet <click here for loan amount calculation worksheet.

- Discount points cannot be financed

- Cash back to borrower - $250.00 maximum (Texas “$0” cash back).

- If cash to borrower exceeds $250.00, loan may have principal curtailment at closing

not to exceed the lesser of 2% or $2000.

TERM

15, 20 or 30-Year Term LP “Accept” Only – No Levels

ELIGIBILITY

- A borrower may be removed from the new loan without having to also be

removed from title. - A borrower can be added to the new loan, provided the existing borrower(s) is

retained. Any borrower added must be an owner occupant of the subject property.

- LP Feedback Offering – LP Open Access – (LP-manual underwrite not

available).

LP Open Access 10/15/2012

2

BORROWER BENEFIT A borrower is required to benefit when requesting a LP Open Access Loan.

The borrower benefit requirement can be met in four different ways based on changes

in the terms between the existing mortgage and the new mortgage loan. If any of the

following are met, the borrower benefit provision has been satisfied:

- Reduction in the borrower’s monthly principal and interest payment;

- Reduction in the interest rate;

- Reduction in the amortization term; or

- Movement to a more stable product.

If the borrower’s payment, interest rate or amortization period is staying the same or

increasing, the borrower must be moving to a more stable product. The borrower may

not extend their amortization period (although a shorter amortization period is

considered to comply with the standard), or move from a fixed-rate mortgage to an

adjustable-rate mortgage.

TRANSACTION TYPE

Rate / Term (cash-out not allowed).

NOT ELIGIBLE

- Loans with new subordinate financing.

- Loans with interest only feature.

- Loans with adjustable rate mortgages with fixed rate periods less than 5 years.

- Loans with balloon feature.

- Loans through Home Possible.

- Loans with a credit enhancement.

- LTV/CLTV > 80% (Texas Loans Only) that fall under 50(a)(6) Article XVI.

- Open Access – manual underwrite.

- LPMI that is paid monthly or annually by the lender

- Any mortgage that has been modified

OCCUPANCY

Owner-Occupied, Investor and Second Homes.

Texas – Principal residence only

PROPERTY TYPE

Principal Residence:

Single Family

Attached and Detached PUDs

Condominiums

Multi-family (2-4 units)

Second Homes and Investment Properties:

Single Family

Condominiums

Attached and Detached PUDs

MORTGAGE

INSURANCE

Original LTV < 80% mortgage insurance will be waived by LP.

Crescent will now allow a LP Open Access where the original loan had a LTV > 80%

as long as the mortgage insurance was issued by one of the following companies:

- Radian

- MGIC

- Genworth

- RMIC

- PMI

- CMG

- UG – NOTE: Any file requiring the transfer of a UG certificate will be charged

50 basis points and lock must be adjusted with marketing reflecting this cost.

LP findings must include the following information:

- Mortgage Insurance Provider

- Mortgage Insurance Certificate Number

- Coverage Amount

LP Open Access 10/15/2012

3

Crescent will facilitate the transfer of the mortgage insurance, please allow for

additional processing time. Loan cannot close until we have confirmation of the

transfer from the mortgage insurance company.

Crescent will only allow the transfer of Lender Paid Mortgage Insurance when

the premium was paid as an up-front single premium. LPMI that is paid

monthly or annually by the lender is not available for transfer.

LTV / CLTV

LTV/CLTV (Continued)

PRIMARY RESIDENCE -SINGLE FAMILY:

Max 105% LTV/125% CLTV/HCLTV (only re-subordinating existing Secondary

Financing allowed)

Debt to income ratios: LTV > 80% - max 45% (credit score 620 to 659)

- max 50% (credit score 660 to 719)

- max 55% (credit score at 720 or above)

LTV ≤ 80% - max 55% (all credit scores)

LTV above 105% allowed up to 125% (LTV/CLTV/HCLTV) for 15, 20 and 30 year

product code (25 year terms must be locked under the 30 year product code) AND

borrower must have a minimum 720 FICO score.

PRIMARY RESIDENCE –MULTI-FAMILY:

Max LTV/CLTV/HCLTV 90% (only re-subordinating existing Secondary

Financing Allowed).

ALL LTV’s max 50% DTI with a Minimum Credit Score 700.

SECOND HOMES:

Max 105% LTV/125% CLTV/HCLTV (only re-subordinating existing Secondary

Financing allowed)

Debt to income ratios: LTV > 80% - max 45% (credit score 620 to 659)

- max 50% (credit score 660 to 719)

- max 55% (credit score at 720 or above)

LTV ≤ 80% - max 55% (all credit scores)

LTV above 105% allowed up to 125% (LTV/CLTV/HCLTV) for 15, 20 and 30 year

product code (25 year terms must be locked under the 30 year product code) AND

borrower must have a minimum 720 FICO score.

INVESTMENT PROPERTIES:

Max LTV/CLTV/HCLTV 90% (only re-subordinating existing Secondary Financing

allowed).

ALL LTV’s max 50% DTI with a Minimum Credit Score 700.

MAXIMUM LOAN

$417,000 – (Super Jumbo – Not Available).

APPRAISAL

- A full interior/exterior appraisal is required unless you receive an acceptable

appraisal waiver.

- If an appraisal is required it must comply with Appraisal Independence.

- Updates have been made in LP that will offer use of Freddie Mac HVE Estimate

instead of appraisal on certain transactions. The LP Message Code is Y7. This

message is returned when the Home Value Explorer (HVE) results for the Relief

Refinance Mortgage-Open Access are in high or medium confidence range.

The message states “To use HVE results in lieu of an appraisal for Relief

Refinance-Open Access, the property must be 1 or 2 units, attached or detached

dwelling or a unit in a condominium project or PUD, and may not be a

manufactured home, dwelling in a leasehold estate, or a cooperative unit, if the

LP Open Access 10/15/2012

4

seller is permitted to deliver Cooperative Share Mortgages under its Purchase

documents. HVE point value estimate Forecast Standard Deviation must be

between 0.000 and 0.200.”

Once you have run the LP for an Open Access loan and received the Y7 finding

that allows you to use the HVE value instead of an appraisal, YOU MUST

RERUN THE LP AT EXACTLY WHAT THE HVE VALUE STATES IN

ORDER TO MOVE FORWARD. ALSO NOTE THAT ANY TIME YOU

RERUN LP, THE VALUE COULD CHANGE AS WELL AS THE

AVAILABILITY OF THE Y7 FINDING.

- HVE cannot be utilized if the loan is a Texas 50(a)(6)

UNDERWRITING

Underwriting (continued)

- MUST HAVE PAYOFF STATEMENT FROM CURRENT SERVICER ,

MUST BE DATED FOR DATE OF CLOSING (WITH A PER DAY DIEM)

AND MUST BE IN PACKAGE WHEN UNDERWRITING FILE OR FILE

WILL NOT BE SENT TO THE UNDERWRITING DEPARTMENT. - Income – Follow LP findings

- 4506-T – completed and signed – (must be checked with IRS).

- Must have LP Open Access eligibility in feedback message. To find out if

borrower is eligible for Open Access go to www.freddiemac.com. Then go to the

site: “Does Freddie Mac own your mortgage?” and input required fields. Freddie

Mac will respond if they have the mortgage. The loan can then be input into LP

with a 310 offering identifier. If the LP responds with a code of Elv63 this means

the LP system can’t find a match. Double check all information when running LP –

names, addresses, SS#, etc. or Freddie Mac is showing a settlement date on or after

June 1, 2009 or if the response of Elv64 – this means loan could have been sold

under a Credit Enhancement or existing mortgage being refinanced is ineligible for

Open Access. If the LP feedback reflects loan not eligible for Open Access, the 310

offering code can be taken out and the loan can be resubmitted using the same AUS

key number as a regular LP loan

- If current loan has subordinate lien, you can not use funds from new loan to pay off,

but can re-subordinate existing second. Must provide Subordination Agreement for

underwriting and terms of 2nd

must comply with Freddie Mac guidelines.

- An accurate address is critical to make sure it is matched in the LP system.

Incomplete or inaccurate addresses can prevent loan from receiving LP Open

Access eligibility.

- Seasoning requirement: Texas loans require 12 months seasoning.

- No limit on number of loans financed through agency (Crescent will limit 2 loans

per borrower to be financed with Crescent).

- 1003 application must be complete (i.e. income, assets, employment, etc.).-

- No late mortgage payments in the last 12 months. A separate VOM will be

required if not on credit report.

- Previous bankruptcy/foreclosures must have occurred over 4 years ago.

- Underwriter must condition for a maximum of $250.00 cash to borrower at closing.

- When subject property is second home or investment property, borrower can own

no more than 4 financed properties including the subject loan.

SCC Codes

007-No cash-out.

95 – If LTV is greater than 80% & no MI obtained, may have an additional fee.

H08 – Open Access.

IMPORTANT – Loan must be registered as a LP Open Access!!!

PROGRAMS SUBJECT TO CHANGE WITHOUT NOTICE

Information | Access | Training | Support | Crescent

HARP – DU Refi Plus and LP Open Access Hyperlinks

Agency Resources

Click HERE for Fannie Mae loan lookup

Click HERE for Fannie Mae Loan Lookup FAQ

Click HERE for Fannie Mae HARP FAQ

Click HERE for Freddie Mac loan lookup

Click HERE for Freddie Mac HARP/ FAQ

Click HERE for “Making Home Affordable” website

Click HERE for USPS address confirmation Zip+4

Initial Eligibility

Q. How can I tell if a prospective borrower’s current loan is owned or guaranteed by Freddie Mac or Fannie

Mae?

A. You do not have to run a borrower’s application through LP or DU to see if the loan is currently owned or

guaranteed by Fannie Mae or Freddie Mac. You or a prospective borrower can access this information prior

to loan application by visiting:

Fannie Mae:

http://www.FannieMae.com/loanlookup or calling 800-7FANNIE (8 am to 8 pm ET)

Fannie Loan Lookup FAQ

http://www.fanniemae.com/loanlookup/loanlookupfaq.pdf

Freddie Mac:

https://ww3.FreddieMac.com/corporate/ or 800-FREDDIE (8 am to 8 pm ET)

Crescent Mortgage Company Resources

Crescent Parameters Fannie Mae DU Refi Plus Freddie Mac LP Open Access

Crescent HARP Pricing Caps Click HERE

Become a Partner of Crescent Mortgage Click HERE

Crescent Website www.crescentexpress.net

Quality Processing and Loan Submission Click HERE

CMC Appraisal Waiver Disclosure Click HERE

Mortgage Insurance Resources: Radian Mortgage Insurance

MGIC Mortgage Insurance

Genworth Mortgage Insurance

RMIC Mortgage Insurance

PMI Mortgage Insurance CMG Mortgage Insurance

4/9/2012

4/17/2012 Page 1 of 5

Information | Access | Training | Support | Crescent

I. Mortgage Insurance

II. Appraisal III. Borrower Eligibility IV. Loan Amounts and LTV/ CLTV V. Pricing

I. Questions related to Mortgage Insurance (MI)

1. Who will obtain the Mortgage Insurance transfer on loans submitted to Crescent? Crescent requires that we always obtain the transfer of MI Policy and will not accept a policy transfer obtained by any other party.

2. Which MI Companies will Crescent accept transferred MI from? Radian, MGIC, GE, RMIC, PMI, CMG

3. Why will Crescent not accept transfer of MI from United Guaranty?

The current policy from United Guaranty (UG) is that they will often require the current servicer to submit the original loan package to them in order to transfer the MI Policy to a new servicer (Crescent). This policy is prohibitive to CMC since we would have no control over the original loan file. If UG changes their policy, we would consider at that time.

4. How do we know who is the current MI company? If the current loan has MI, the current MI Company and coverage information will be listed within the DU/ LP findings themselves.

5. If we have a borrower that has single premium MI (LPMI or BPMI) how do we get a pricing

quote for the new loan? No additional fees or premiums will need to be paid to transfer a single premium MI policy. You would not lock the loan with CMC as an LPMI loan.

Crescent Mortgage Company DU Refi Plus & LP Open Access Question and Answer Updated 4-16-2012 Fowler Williams, President

4/17/2012 Page 2 of 5

6. If the borrower is paying monthly MI, will the MI payment remain the same?

The MI payment on monthly MI may increase if the borrowers elect to roll closing costs into the new loan.

7. Does a borrower have to get MI if the original loan was a 70% but is now 110%? No, MI is only needed when there is an existing policy in place.

8. What happens if a borrower had MI, but due to LTV it has been dropped by the original servicer? No new MI would need to be obtained or transferred if there is currently no MI certificate in force for the current servicer based on it being dropped for an acceptable reason. (Not dropped for non-payment, fraud, etc…)

9. What types of Mortgage Insurance policies will Crescent accept for transfer? Crescent will try to obtain transfer on any type of policy (BPMI, LPMI, Financed MI, etc..) so long as it is insured by a Crescent approved MI company. LPMI must have been purchased as a single premium policy.

10. What happens when a borrower had monthly MI to be transferred but the term of the new loan has changed? Example, original loan was a 30 year; new loan is 15 or, vice-a-versa? The policy transfers as the original loan closed. Example, if original loan closed as 30 year and new loan is 15 year, the existing 30 year MI policy would transfer.

II. Questions related to Appraisal and Valuation

11. Does Crescent allow for Appraisal Waiver or PIW? Yes, Crescent will accept a PIW from DU or the Y7 Appraisal Waiver in LP. REMEMBER, if property is located in a FEMA Disaster Area, a full appraisal will be required regardless of AUS findings.

12. How do I know I received a PIW in DU? The Property Inspection Waiver (PIW) is listed in the DU findings.

13. Does Crescent charge the PIW delivery fee charged by Fannie Mae of $75 No, Crescent does not charge or collect the PIW delivery fee. We absorb this cost for our customers.

14. How do I use the Y7 Appraisal Waiver in LP?

4/17/2012 Page 3 of 5

IMPORTANT: When you estimate the value for your initial LP submission, you may receive the Y7 message allowing for Appraisal Waiver. HOWEVER, if the HVE Value returned by LP is different than the value of your submission, YOU MUST re-run LP using the HVE Value as the estimated value and still obtain the Y7 Feedback.

15. Should we disclose the cost of an appraisal in case one is required? It may be best to disclose the cost of an appraisal on your Good Faith Estimate. If a loan needs to be resubmitted due to changes in the loan, you may actually lose the PIW or Y7 finding and be required to obtain an appraisal. This may not be considered a valid CMC if no appraisal fee was disclosed to the borrower.

III. Borrower Eligibility

16. We submitted a loan that we believe should have been approved for LP Open Access or DU Refi Plus. Why did we not get approval? There are many reasons the loan may not receive approval for LP Open Access or DU Refi Plus. Here are a few:

LP: a. Loan was not DELIVERED to Freddie Mac on or before June 1, 2009. b. Loan may not be owned by Freddie Mac. See Freddie Mac Loan Lookup c. Ensure exact match of Address, SS Numbers and Borrower Names d. We are seeing that a revolving debt where the balance is over 50% of available credit

balance is often not being approved. e. We are seeing that DTI over 45% on LTV over 105% is often not receiving an approval. f. LP Open Access Error Message #63 – Relief Refi-Open Access Mortgage must match

active FM Loan. 1. This indicates that the liability that is shown as being paid off does NOT match the

loan information on file with Freddie Mac 2. Check the spelling and account number in the liability to make sure it is correct and

re-run the findings 3. Make sure that the mortgage indicated as being paid off goes with the subject

property-correct and re-run the findings 4. Call Freddie Mac at 1-800-Freddie, choose Technical Support and give them the LP

Key number and the error code – they will advise why the feedback shows this error

g. LP Open Access Error Message #64 – Existing FM loan ineligible for Relief Refinance-Open Access 1. Call Freddie Mac at 1-800-Freddie, choose Technical Support and give them the LP

Key number and the error code – they will advise why the feedback shows this error

4/17/2012 Page 4 of 5

(original loan may have had credit enhancements such as premium pricing, pool insurance, or been a special negotiated product, etc.) 2. Current loan is a repurchase request from agency to current servicer.

DU:

a. You DO NOT have to enter any special identifier in DU (like you do in LP) to obtain the Refi Plus finding.

b. Loan was not delivered to Fannie Mae on or before June 1, 2009. c. Loan may not be owned by Fannie Mae. See Fannie Mae Loan Lookup. d. Ensure exact match of Address, SS Numbers and Borrower Names e. Loan closes with a variance or credit enhancement. f. Current loan is a repurchase request from agency to current servicer.

3. We have a DU Approval but borrower has been late on his mortgage. Is this acceptable? Crescent will not approve a loan that the borrower has been 1X 30 days late on the mortgage in the past 12 months.

IV. Loan Amounts and LTV/ CLTV

4. What are the allowable LTV/ CLTV for Crescent on LP Open Access and DU Refi Plus? LTV – 125, CLTV 125. See parameters for FICO and DTI Requirements associated with certain LTV/ CLTV.

5. Why does Crescent not offer unlimited LTV/ CLTV on the LP Open Access and DU Refi Plus? FHFA along with Fannie Mae and Freddie Mac have made the lender (Crescent) assume a higher level of representations and warranties on the DU Refi Plus and LP Open Access than a same servicer transaction. Therefore, Crescent has to carefully consider and mitigate the risks associated with a loan to value over 100%.

6. What is different in how you calculate LP Open Access and DU Refi Plus maximum loan amount?

4/17/2012 Page 5 of 5

Fannie Mae – DU Refi Plus allows you to roll in all closing costs associated with the loan. Freddie Mac – LP Open Access has a calculation you must use. You take the unpaid principal balance (NOT THE PAYOFF, as this may include ancillary fees) plus the number of days interest collected at closing(up to 30 day max) (remember the settlement agent may add a day or two for delivery of funds) To this amount you can add the LESSOR of:

a. Total closing costs on details of transaction (minus any lender or YSP credits)

b. Unpaid Principal Balance x 4% c. $5,000

Crescent provides an interactive worksheet to assist you in calculating the Open Access loan amount – You can access by clicking HERE

7. Can a borrower receive cash from the refinance on an LP Open Access or DU Refi Plus?

Borrower cannot receive more than $250 cash back on the transaction.

V. Pricing

8. Can you explain the “Price Caps” on DU Refi Plus and LP Open Access? The agencies place a cap on the loan level pricing adjustments (LLPA’s) for DU Refi Plus and LP Open Access. These caps are for agency LLPA’s and do not apply to Crescent specific LLPA’s for items like state, loan amount, etc…

9. Fannie Mae DU Refi Plus LLPA caps:

Primary Residence LTV > 80% and Term > 240: .50% Price Cap Primary Residence LTV >80% and Term <= 240: 0.00% Price Cap 1.75% Price Cap for all other loans.

10. Freddie Mac LP Open Access Price Caps: Freddie Mac LP Open Access Price Caps: Primary Residence LTV > 80% <= 105% and Term > 240: .50% Price Cap Primary Residence LTV > 105% and Term > 240: 1.00% Price Cap Primary Residence LTV > 80% <= 105% and Term<= 240: 0.00% Price Cap Primary Residence LTV > 105% and Term <= 240: .50% Price Cap 1.75% Price Cap for all other loans.

Fowler Williams, CMB President – Crescent Mortgage Company 5901 Peachtree Dunwoody Rd NE | Building C, Suite 250 | Atlanta, GA 30328 800-851-0263 | www.crescentexpress.net