Non-Traditional Lending

This is a policy guide to comply with originating Non-Traditional Mortgage Loans for mortgage lenders. This a separate policy guide. Once purchased this guide will be customized to your specifications. You will receive an immediate invoice receipt with a download link to a questionnaire with some simple questions to answer and receive your customized guide within 24-48 hours. This is written for independent mortgage bankers but can be customized for depository financial institutions and credit unions. 

Table of Contents

NON-TRADITIONAL LENDING POLICY

• STATE VARIANCES AND REPORTING
• NON-TRADITIONAL MORTGAGE LOAN STANDARDS
• QUALIFYING BORROWERS
• COLLATERAL-DEPENDENT LOANS
• RISK LAYERING
• REDUCED DOCUMENTATION
• SIMULTANEOUS SECOND-LIEN LOANS
• INTRODUCTORY INTEREST RATES
• LENDING TO SUBPRIME BORROWERS
• NON-OWNER-OCCUPIED/INVESTOR LOANS
• MITIGATION PRACTICES
• MONITORING
• QUALITY CONTROL
• CONSUMER PROTECTION - ADVERTISING
• MINIMUM REQUIREMENTS FOR ADVERTISING NON-TRADITIONAL LOAN PRODUCTS OR NON-QM PRODUCTS
• REGULATORY COMPLIANCE
• TRAINING
• NET TANGIBLE BENEFIT

NON-QUALIFIED MORTGAGE (NON-QM) LOANS

• QM RULE REQUIREMENTS
• TRADITIONAL VERSUS NON-TRADITIONAL MORTGAGE LOANS
• QM APPLICABILITY
• VERIFICATION OF INCOME
• PAYMENT CALCULATIONS
• RESIDUAL INCOME
• NON-STANDARD MORTGAGE TO STANDARD MORTGAGE
  • Applicability
• QUALIFIED MORTGAGE (QM)
• PROGRAM EXAMPLES
• BANK STATEMENT LOANS
• NON-APPLICABLE LOAN PRODUCTS
• MINIMUM CREDIT SCORES
• PAYMENT SHOCK
• MINIMUM ASSET RESERVES
• LOAN AMOUNT LIMITATIONS
• AMORTIZATION
• LOAN TERM
• MANUAL UNDERWRITING
• SECONDARY FINANCING
• LOAN SEASONING
• PREPAYMENT PENALTIES
• SECOND APPRAISALS
• PROPERTY TYPES
• PROPERTY FLIPPING
• PROPERTIES OWNED
• PREVIOUS PROPERTY OWNED DISPOSITIONS
• RESIDUAL INCOME
• NET TANGIBLE BENEFIT

SUBPRIME LOANS

APPENDIX A (DEFINITIONS)

• INTEREST-ONLY MORTGAGE LOAN
• NON-TRADITIONAL MORTGAGE LOAN (INTERAGENCY GUIDANCE)
• NON-QUALIFIED MORTGAGE LOAN (NON-QM)
• PAYMENT OPTION ARM
• REDUCED DOCUMENTATION
• SIMULTANEOUS SECOND-LIEN LOAN