Section 2.06 Key Loan Program - SunTrust

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**Note: See Bulletin COR21-045 and Key Loan Program Temporary COVID-19 Related Guidance for additionaltemporary COVID-19 restrictions and flexibilities.Section 2.06 – Key Loan ProgramIn this ProductDescriptionThis product description contains the following topics.Overview . 6Program Summary . 6Required Checklist for the Key Loan Program Delegated Transactions . 6Features and Benefits . 7Related Bulletins . 7Loan Terms . 8Assumptions . 8Loan Terms . 8Maximum Loan Amount . 8Minimum Loan Amount . 8Maximum Loan-to-Value (LTV) . 9Maximum Number of Financed Properties & Borrower Exposure . 10Prepayment Penalty . 10Eligible Transactions . 11General Information . 11Single-Closings . 11Two- Closings . 12Eligible Permanent Mortgage Products . 13Installment Land Contracts. 13Non-Arm’s Length/Conflict-of-Interest . 14Property Assessed Clean Energy (PACE) Loans . 14Purchase Transactions . 14Refinance Transactions . 14Validation of Parties to the Mortgage Transaction . 15Fraud Prevention . 16Higher Priced Mortgage Loans (HPML) and Higher Priced Covered Transactions(HPCT) . 16Refinances . 17Continuity of Obligation . 17Cash-Out Refinance . 18Delayed Financing Cash-Out Refinance . 20Home Improvements . 20Limited Cash-Out (Rate/Term) Refinance . 21Tangible Benefit Form or Appropriate Documentation Required . 23Secondary Financing . 24General . 24New Secondary Financing . 25Existing Secondary Financing . 26Home Equity Line of Credit (HELOC) . 26Documenting a Modified HELOC . 27Geographic Restrictions . 28Information. 28Occupancy/Property Types . 29Primary Residences . 29Second Homes . 30Investment Property . 30Section 2.06Key Loan ProgramCorrespondent Seller GuideAugust 23, 2021Page 1 of 133Broker SellerGuide

**Note: See Bulletin COR21-045 and Key Loan Program Temporary COVID-19 Related Guidance for additionaltemporary COVID-19 restrictions and flexibilities.Occupancy Verification . 31Short Sale Property . 32Warrantable Condominiums . 32PUDs . 32Leasehold Properties . 33Resale/Deed Restrictions . 38Maximum Acreage . 38Properties with Two or More Parcels . 39Modular Housing . 40Properties Listed for Sale . 40Properties Purchased at Auction . 40Rural Properties . 41Ineligible Properties . 42Eligible Borrowers . 43Non-Occupant Co-Borrowers . 43Inter Vivos Trusts . 43Permanent Resident Aliens . 43Number of Borrowers on Loan Application . 44Social Security Number Verification . 45Ineligible Borrowers . 45Income . 46General . 46Unacceptable Sources of Income . 551099 Income . 56Age of Documentation . 56Allowable Age of Federal Income Tax Return. 56Alimony and/or Child Support. 58Automotive Allowances and Expense Account Payments . 58Bonus and Overtime . 59Borrowers Employed by a Family Member or Interested Party to the Transaction . 59Borrowers Re-Entering the Workforce . 60Commission . 60Employment Related Assets as Qualifying Income . 61Foster Care. 62Gaps in Employment . 62Gross Disposable Income . 62Housing/ Parsonage Income . 62Income Validation . 63Interest and Dividend Income. 67Long Term Disability. 67Military Income . 67Mortgage Differential Payments . 68Notes Receivable . 68Part-Time or Second Job Income . 69Public Assistance Income . 69Rental Income . 70Retirement Income . 71Royalty Payment Income . 71Salaried or Hourly Wage Earner . 72Seasonal Income / Seasonal Unemployment Income . 73Section 8 Homeownership Assistance Payments . 73Self-Employed Borrower . 74Section 2.06Key Loan ProgramCorrespondent Seller GuideAugust 23, 2021Page 2 of 133Broker SellerGuide

**Note: See Bulletin COR21-045 and Key Loan Program Temporary COVID-19 Related Guidance for additionaltemporary COVID-19 restrictions and flexibilities.Self-Employed Borrower(s) Income Not Used to Qualify . 75Social Security Income . 76Tax-Exempt Income . 77Temporary Leave and Short Term Disability. 77Tip Income . 79Trust Income. 79VA Benefits Income . 79Liabilities and Qualifying Ratios . 80Qualifying Rate . 80Qualifying Ratios . 80Alimony, Child Support, and/or Separate Maintenance Payments . 81Balloon Loans . 81Bridge Loans . 81Business Debt in Borrower’s Name . 81Co-Signed Debt . 81Court-Assigned Debt . 82Home Equity Lines of Credit (HELOCs) . 82Installment Debt . 82Job Related Expenses (Unreimbursed Employee Business Expense) . 83Lease Payments . 84Mortgage Assumptions . 84Mortgage Payments on Previous Home . 84Property Taxes, Insurance, and HOA Assessments . 8730-Day Accounts . 88Revolving Debt . 89Privately Held Mortgages . 89Student Loans . 90Undisclosed Debts . 90Documentation . 90Credit Requirements . 91Authorized User Accounts . 91Credit Score Requirements . 91Credit History Analysis . 92Bankruptcy/. 94Foreclosure and/or Deeds in Lieu . 94Short Sales . 95Collections, Judgments, Garnishments, Liens, and Charge-Offs . 95Consumer Credit Counseling . 95Duplicate Public Records . 95Inquiries . 95Past Due Accounts . 96Unverified Liabilities . 96Documentation . 96Cash Requirements . 97Assets . 97Bridge Loans in Second Lien Position . 97Business Assets as Source of Closing Funds. 98Down Payment Requirements. 98Cash Reserves . 99Checking, Savings, and Certificate of Deposit (CD) . 100Credit Cards . 101Earnest Money Deposit . 102Section 2.06Key Loan ProgramCorrespondent Seller GuideAugust 23, 2021Page 3 of 133Broker SellerGuide

**Note: See Bulletin COR21-045 and Key Loan Program Temporary COVID-19 Related Guidance for additionaltemporary COVID-19 restrictions and flexibilities.Donations from Entities . 102Employer Assisted Housing Programs . 103Gifts . 104Gifts of Equity . 105Government Bonds . 106Closing Disclosure Credits . 106Individual Development Accounts (IDAs) . 107Funds Disbursed from a Trust . 108Secured Loans . 109Unacceptable Sources of Down Payment . 110Large Deposits . 111Life Insurance Cash Value . 112Mutual Funds . 112Repair Credit . 112Retirement Funds . 113Sale of Personal Assets . 113Sales Proceeds . 114Stocks and Bonds . 114Verification of Deposit . 114Documentation . 115Contributions by Interested Parties . 116Seller Contributions . 116Temporary Interest Rate Buydowns . 116ARM Alternative . 116Mortgage Insurance . 116Appraisal Requirements . 117General . 117Declining Markets . 118Electronic Signatures . 124Properties Affected by a Disaster . 125Property Flipping . 127Automated Underwriting System (AUS) Issues . 128AUS Eligibility . 128Rates, Points and Lock-Ins . 128Interest Rate and Price . 128Registration and Lock-In . 128Program Code . 128Application and Consumer Compliance . 129Loan Application Requirements . 129Loan Submission and Underwriting . 130Underwriting/ Loan Submission . 130MI Contract Underwriting . 130Reviewing Sales Contracts . 130Closing and Loan Settlement Documentation . 131General . 131Escrow Waivers . 131Document Warranties . 131Document Review Fee . 131Life Estate Tenancy. 132Power of Attorney . 132Principal Curtailments . 132Property Insurance . 132Section 2.06Key Loan ProgramCorrespondent Seller GuideAugust 23, 2021Page 4 of 133Broker SellerGuide

**Note: See Bulletin COR21-045 and Key Loan Program Temporary COVID-19 Related Guidance for additionaltemporary COVID-19 restrictions and flexibilities.Right of Rescission . 132Title Insurance . 133Work Completion Escrow Holdback . 133Closing Legal Documents . 133Section 2.06Key Loan ProgramCorrespondent Seller GuideAugust 23, 2021Page 5 of 133Broker SellerGuide

**Note: See Bulletin COR21-045 and Key Loan Program Temporary COVID-19 Related Guidance for additionaltemporary COVID-19 restrictions and flexibilities.OverviewProgramSummaryThe overall objective of our residential lending function is to participate in the growthof our communities, and in the process, enhance the company’s long-run profitability,return on assets, and return on equity. It is the intent of our company’s seniormanagement to operate a conservative banking institution with a sound residentialloan portfolio wherein our charge-offs and classified loans will be among the lowestin the industry. Senior management also believes that the residential lendingfunction must reach every level of the community and fulfill its legitimate consumerneeds. Therefore it is our policy to encourage residential loans while ensuring thatour company’s standards for safety and soundness are properly supported.This product description describes product guidelines and requirements for FullyAmortizing Fixed Rate Key Loan programs.RequiredChecklist forthe Key LoanProgramDelegatedTransactionsTo ensure that the loan is being originated within the guidelines of the Key LoanProgram, the Key Loan Program Eligibility Checklist (COR 0650) is REQUIRED tobe completed and placed in the loan file on ALL delegated Key Loan Programtransactions.Continued on next pageSection 2.06Key Loan ProgramCorrespondent Seller GuideAugust 23, 2021Page 6 of 133Broker SellerGuide

**Note: See Bulletin COR21-045 and Key Loan Program Temporary COVID-19 Related Guidance for additionaltemporary COVID-19 restrictions and flexibilities.Overview, ContinuedFeatures andBenefitsFeatures and Benefits of the Key Loan Program are as follows:FeaturesLoan amounts up to 2,000,000.BenefitsMore borrowing power.Related BulletinsGeneralRelated bulletins are provided below in PDF format. To view the list of publishedbulletins, select the applicable year below. 20212020201920182017Section 2.06Key Loan ProgramCorrespondent Seller GuideAugust 23, 2021Page 7 of 133Broker SellerGuide

**Note: See Bulletin COR21-045 and Key Loan Program Temporary COVID-19 Related Guidance for additionaltemporary COVID-19 restrictions and flexibilities.Loan TermsAssumptions Loan TermsFixed rate products are not assumable, except as permitted by state and federallaw.Borrower(s) must contact their current mortgage servicer for additionalinformation.The table below shows eligible loan terms.ProductFully Amortizing Fixed RateMaximum LoanAmountThe maximum loan amount is 2,000,000.Minimum LoanAmount Eligible Loan Term15 or 30 YearsThe minimum loan amount is always one ( 1) dollar above the conforming loanlimit.Continued on next pageSection 2.06Key Loan ProgramCorrespondent Seller GuideAugust 23, 2021Page 8 of 133Broker SellerGuide

**Note: See Bulletin COR21-045 and Key Loan Program Temporary COVID-19 Related Guidance for additionaltemporary COVID-19 restrictions and flexibilities.Loan Terms, ContinuedMaximumLoan-toValue(LTV)Maximum Loan-To-Value (LTV)Owner Occupied – Purchase/Rate-Term (1-Unit SFR/1-Unit PUD)Property Type1-Unit SFR /PUDFICO 680-699FICO 700-719FICO 720-739FICO 740 LTV/TLTVLTV/TLTVLTV/TLTVLTV/TLTV 1,000,00070%80%80%85% 1,500,00070%80%80%85% 2,000,00065%75%75%80%Loan AmountOwner Occupied – Purchase/Rate-Term (Condo)Property TypeCondoFICO 680-699FICO 700-719FICO 720-739FICO 740 LTV/TLTVLTV/TLTVLTV/TLTVLTV/TLTV 1,000,00070%75%75%80% 1,500,00070%75%75%80% 2,000,00060%70%70%80%Loan AmountOwner Occupied – Cash-OutProperty Type1 Unit/PUDFICO 680-699FICO 700-719FICO 720-739FICO 740 LTV/TLTVLTV/TLTVLTV/TLTVLTV/TLTV 1,000,00070%70%70%75% 1,500,00070%70%70%75% 2,000,000N/AN/AN/A55%Loan AmountOwner Occupied – Cash-Out (Condo)Property TypeCondoFICO 680-699FICO 700-719FICO 720-739FICO 740 LTV/TLTVLTV/TLTVLTV/TLTVLTV/TLTV 1,000,00070%70%70%70% 1,500,00070%70%70%70%Loan AmountContinued on next pageSection 2.06Key Loan ProgramCorrespondent Seller GuideAugust 23, 2021Page 9 of 133Broker SellerGuide

**Note: See Bulletin COR21-045 and Key Loan Program Temporary COVID-19 Related Guidance for additionaltemporary COVID-19 restrictions and flexibilities.Loan Terms, um Loan-To-Value (LTV)2nd Home – Purchase/Rate-TermProperty Type1Unit/PUDFICO 680-699FICO 700-719FICO 720-739FICO 740 LTV/TLTVLTV/TLTVLTV/TLTVLTV/TLTV 1,000,00070%75%75%80% 1,500,00070%70%70%75% 2,000,000N/AN/A60%65%Loan Amount2nd Home – Purchase/Rate-Term (Condo)Property TypeCondoFICO 680-699FICO 700-719FICO 720-739FICO 740 LTV/TLTVLTV/TLTVLTV/TLTVLTV/TLTV 1,000,00070%70%70%75% 1,500,00070%70%70%70%Loan AmountStandardMaximumLoan-to-Value:Second Home –Cash-OutRefi

Property Type Loan Amount FICO 680-699 FICO 700-719 FICO 720-739 FICO 740 LTV/TLTV LTV/TLTV LTV/TLTV LTV/TLTV 1 Unit/PUD 70% 1,000,000 70% 75% 1,500,000 75% 2,000,000 N/A 55% Owner Occupied – Cash-Out (Condo) Property Type Loan Amount FICO 680-699 FICO 700-719 FICO 72

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