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New Non Delegated Jumbo Express Product

Effective Friday, March 23, 2018, Flagstar is pleased to announce the launch of our Jumbo Express product which leverages automated underwriting and conventional guidelines to provide a more efficient process for higher balance loans. The Jumbo Express offers borrowers with loan amounts above conforming county limits access to a crafted solution and best-in-class experience by using Desktop Underwriter (DU) with minimal overlays.

The Jumbo Express product is available for delivery via the Loantrac system. If you currently only deliver loans through the LendingSpace system and would like to originate loans using the new Jumbo Express product, contact your sales relationship manager to discuss.

Highlights
  • 30-Year Fixed, 15-Year Fixed, 5/1 LIBOR ARM, 7/1 LIBOR ARM, and 10/1 LIBOR ARM
  • 1-unit primary residences, second homes
  • Purchase, rate/term refinance and cash-out refinance
  • Maximum 85% LTV with no mortgage insurance with credit score of 760
  • Maximum 80% LTV/90% CLTV with credit score of 680
  • Minimum Loan Amount: Conforming loan limit plus $1
  • Maximum Loan Amount: $679,650
  • DU – Approve/Ineligible response required
  • Loans must meet all requirements of Appendix Q
Benefits
  • Automated underwriting via DU allows you to quickly evaluate higher balance loans
  • Follow DU findings with minimal overlays for express processing compared to interpreting multiple pages of manual underwriting guidelines typical of other jumbo products
  • No mortgage insurance up to 85% LTV for qualified borrowers with minimum credit score of 760
  • 80% LTV/90% CLTV feature allows you to increase purchasing power when paired with a Flagstar Home Equity Line of Credit or Second Mortgage
Underwriting
  • Loans must meet all requirements of Appendix Q (ATR/QM)
  • All loans must receive a DU Approve/Ineligible response, with the ineligible message being for loan amount only
  • Qualifying ratios determined by DU not to exceed 43%
  • Reserves determined by DU
  • All loans require a full appraisal and Collateral Desktop Analysis (CDA; property inspection waivers (PIW) issued by DU are not accepted
  • Items not covered below must meet all parameters set out in Flagstar’s Conventional Underwriting Guidelines:
Category Documentation Requirements
Employment
  • Verify all employment for last two years via written or verbal VOE; employment
  • gaps greater than 30 days require written explanation

  • Borrowers returning to the workforce must have been on current job for a minimum
  • of 6 months and two year prior history of employment must be documented

  • Part time or seasonal employment must document current two year history with
  • same employer

    Self-Employment
  • P&L & balance sheet for all business reported on tax returns
  • 2 years of personal tax returns
  • 2 years of business returns for all business including those not required to qualify
  • Reported losses must be considered in DTI calculations
  • Income
  • Commission, bonus and overtime income must be documented with a two year
  • history of earnings

  • Social Security income must be documented with an award letter and must not
  • expire within 3 years

  • Capital gains must be documented with three years of tax returns and include losses
  • Rental income must be documented with a current lease and tax returns; in the
  • event the lease is expired document receipt of timely payments with canceled

    checks since expiration

  • Alimony and child support used to qualify must document 12 months receipt
  • Debts
  • Must include debts with less than 10 payments unless reserves can be documented
  • in order to exclude

    Conversion of Primary Home
  • Minimum one year lease required
  • Evidence of receipt of security deposit
  • 25% equity or evidence of relocation over 100 miles

  • Restrictions
    • Approve/Eligible responses which could qualify for an available agency product are not eligible
    • Delegated underwriting is not eligible
    Pricing

    Pricing is published on page three of the rate sheet and also available in Price Quote.

    If you have any questions, please contact your sales relationship manager.



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