Professional Documents
Culture Documents
Doc 45-3
Exhibit B-1
EXHIBIT B-1
14-01915-mg
Doc 45-3
Exhibit B-1
Client Guide
Version 1-06-G01
Effective March 13, 2006
Including Guide Bulletins 1-06-B01, 1-06-B02 & 1-06-B03(effective April 17, 2006)
(03/13/06)
14-01915-mg
Doc 45-3
Exhibit B-1
14-01915-mg
Doc 45-3
Exhibit B-1
Page 1
03/13/06
GMAC-RFC
Client Guide
Table of Contents
Table of Contents
Chapter 1 Introduction
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
GMAC-RFC Objective . . . . . . . . . . . . . . . . . . . . .
Client Contractual Obligations . . . . . . . . . . . . . .
Single Contract . . . . . . . . . . . . . . . . . . . . . . . . .
Relationship of GMAC-RFC and Client . . . . . . . .
Client ID Number . . . . . . . . . . . . . . . . . . . . . . . .
GMAC-RFC Loan Number . . . . . . . . . . . . . . . . . .
Servicer Contractual Obligations . . . . . . . . . . . .
Notice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Hours of Operation and Holidays . . . . . . . . . . . .
Client Guide Organization . . . . . . . . . . . . . . . . .
Headings, Use of Capitalization and Definitions
Form & Exhibit Numbering . . . . . . . . . . . . . . . .
Client Guide Online . . . . . . . . . . . . . . . . . . . . . .
General Rules of Interpretation . . . . . . . . . . . . .
Use of Clients Name . . . . . . . . . . . . . . . . . . . . .
Use of GMAC-RFC Name and Service Marks . . . .
Assetinfo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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. 1.1
. 1.1
. 1.1
. 1.2
. 1.2
. 1.2
. 1.2
. 1.3
. 1.3
. 1.3
. 1.4
. 1.5
. 1.5
. 1.5
. 1.6
. 1.7
. 1.7
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. 2.1
. 2.2
. 2.4
. 2.4
. 2.4
. 2.4
. 2.6
. 2.8
. 2.8
. 2.9
. 2.9
Client Eligibility . . . . . . . . . . . . . . . . . . . . . .
Eligibility Standards . . . . . . . . . . . . . . . . . . .
Client Contract . . . . . . . . . . . . . . . . . . . . . . .
Client Underwriting Responsibilities . . . . . .
Continuing Client Obligations . . . . . . . . . . .
Disqualification, Suspension or Inactivation
Reporting Requirements . . . . . . . . . . . . . . .
Audits and Inspections . . . . . . . . . . . . . . . .
Disclosure of Information . . . . . . . . . . . . . .
Maintenance of Records . . . . . . . . . . . . . . . .
Quality Control . . . . . . . . . . . . . . . . . . . . . . .
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14-01915-mg
Page 2
03/13/06
Client Guide
Table of Contents
Doc 45-3
Exhibit B-1
GMAC-RFC
Occupancy Types . . . . . . . . . . . .
Borrower Types . . . . . . . . . . . . .
Multiple Loans to One Borrower
Ownership Interests . . . . . . . . .
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. 3A.1
. 3A.2
. 3A.4
. 3A.5
14-01915-mg
Doc 45-3
Exhibit B-1
Page 3
03/13/06
Client Guide
Table of Contents
GMAC-RFC
Chapter 3B Transactions
B300 Arms Length and Non-Arms Length Transactions . . . . . . . . . . . . . . . . . . 3B.1
B301 Transaction Types . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3B.1
Chapter 3C Financing
C300
C301
C302
C303
C304
C305
C306
C307
C308
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. . 3C.1
. . 3C.1
. . 3C.4
. . 3C.5
. . 3C.5
. . 3C.7
. . 3C.8
. . 3C.9
. 3C.12
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Property Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Eligible Property Types . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ineligible Property Types . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Project Requirements for Warrantable Condominiums and PUDs
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.3D.1
.3D.1
.3D.5
.3D.6
14-01915-mg
Page 4
03/13/06
Client Guide
Table of Contents
Doc 45-3
Exhibit B-1
GMAC-RFC
Insurance Requirements . . . . . . . . . . . . . . . . . . . . . . . .
Hazard Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mortgage Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . .
Earthquake Insurance . . . . . . . . . . . . . . . . . . . . . . . . . .
Flood Certification . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Flood Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Condominium Insurance . . . . . . . . . . . . . . . . . . . . . . . .
PUD Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Title Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Title Search/Insurance for Second Mortgage Programs
Survey Requirements . . . . . . . . . . . . . . . . . . . . . . . . . .
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. . 3F.1
. . 3F.1
. . 3F.3
. . 3F.7
. . 3F.7
. . 3F.7
. . 3F.8
. 3F.11
. 3F.12
. 3F.16
. 3F.16
Chapter 4 Underwriting
400
401
402
403
404
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. 4.1
. 4.1
. 4.2
. 4.2
. 4.2
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. . 4A.1
. . 4A.1
. . 4A.2
. . 4A.2
. . 4A.3
. . 4A.4
. 4A.11
Chapter 4A Credit
A400
A401
A402
A403
A404
A405
A406
14-01915-mg
Doc 45-3
Exhibit B-1
Page 5
03/13/06
Client Guide
Table of Contents
GMAC-RFC
Qualifying RatiosPayment
Borrowers Liabilities . . . . .
Debt Payoff . . . . . . . . . . . .
Co-Signed Debts . . . . . . . .
Divorce Debts . . . . . . . . . .
Business Debts . . . . . . . . .
Borrower Capacity . . . . . . .
Student Loans . . . . . . . . . .
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. 4B.1
. 4B.3
. 4B.4
. 4B.4
. 4B.4
. 4B.4
. 4B.4
. 4B.4
Borrower Income . . . . . . . . . . . . . .
Employment and Income Analysis .
Income Types . . . . . . . . . . . . . . . .
Wage Earners . . . . . . . . . . . . . . . . .
Self-Employed Income . . . . . . . . . .
Fixed Income . . . . . . . . . . . . . . . . .
Rental Income . . . . . . . . . . . . . . . .
Other Income . . . . . . . . . . . . . . . . .
Trailing or Relocating Co-Borrower
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.4D.1
.4D.1
.4D.2
.4D.2
.4D.3
.4D.5
.4D.6
.4D.7
.4D.8
Income Documentation . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Full Income Documentation Requirements . . . . . . . . . . . . .
Lite Income Documentation Requirements . . . . . . . . . . . . .
One Paystub Income Documentation Requirements . . . . . .
Fast Income Documentation Requirements . . . . . . . . . . . .
Stated Income Documentation Requirements . . . . . . . . . . .
No Ratio Documentation Requirements . . . . . . . . . . . . . . .
Stated Income/Stated Asset Documentation Requirements
No Income/No Asset Documentation Requirements . . . . . .
No Doc Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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. . 4E.1
. . 4E.2
. . 4E.5
. . 4E.5
. . 4E.6
. . 4E.9
. 4E.10
. 4E.11
. 4E.12
. 4E.12
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Table of Contents
Doc 45-3
Exhibit B-1
GMAC-RFC
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. . 4F.1
. . 4F.2
. . 4F.2
. . 4F.6
. 4F.15
Chapter 5 Products
500
501
502
503
504
Product Descriptions . . . . . . . . . .
Fixed-Rate Mortgages (FRM) . . . .
Adjustable Rate Mortgages (ARM)
Balloon Mortgages . . . . . . . . . . . .
1st Lien Line of Credit . . . . . . . . .
...
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...
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. . 5.1
. . 5.3
. . 5.9
. 5.70
. 5.72
Jumbo A Program . . . . . . . . . .
Eligibility Standards . . . . . . . . .
Stated Income Documentation
EasyFi or Streamline Refinance
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. . 6A.1
. . 6A.1
. 6A.11
. 6A.11
14-01915-mg
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Exhibit B-1
Page 7
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Client Guide
Table of Contents
GMAC-RFC
. . . . . . . . . . . 6B.1
. . . . . . . . . . . 6B.1
. . . . . . . . . . 6B.11
Doc Documentation
. . . . . . . . . . 6B.13
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. . 6C.1
. . 6C.1
. 6C.12
. 6C.13
AlterNet Program . . . . . . . . . . . . . . . . . . . .
Eligibility Standards . . . . . . . . . . . . . . . . . .
Interest Only Feature Eligibility Standards
80/20 Eligibility Standards . . . . . . . . . . . .
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. . 6E.1
. . 6E.1
. 6E.12
. 6E.15
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Table of Contents
Doc 45-3
Exhibit B-1
GMAC-RFC
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. .6H.1
. .6H.1
.6H.13
.6H.14
.6H.18
Chapter 7 At-A-Glances
700
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Exhibit B-1
Page 9
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Table of Contents
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Exhibit B-1
GMAC-RFC
Chapter 9A Commitments
A900
A901
A902
A903
A904
A905
Commitment Defined . . . . . . . . . .
Requesting a Commitment . . . . .
Commitment Confirmation . . . . .
Commitment Periods . . . . . . . . . .
Failure to Deliver or Over-Deliver
Extension and Buyout Fees . . . . .
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. 9A.1
. 9A.2
. 9A.3
. 9A.3
. 9A.4
. 9A.5
Chapter 9C Delivery
C900
C901
C902
C903
C904
C905
Delivery Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Submission of Funding Documents . . . . . . . . . . . . . . . . . . . . .
Funding Documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Review and Acceptance of Funding Documents . . . . . . . . . . .
MERS Loan Registration, Transfer and Delivery Requirements
Alternative Delivery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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. . 9C.1
. . 9C.1
. . 9C.2
. . 9C.8
. . 9C.9
. 9C.10
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.9D.1
.9D.1
.9D.4
.9D.5
.9D.5
.9D.6
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Exhibit B-1
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Client Guide
Table of Contents
Chapter 10 Definitions
Chapter 11 Forms & Exhibits
1100 GMAC-RFC Forms & Exhibits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.1
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GMAC-RFC
Exhibit B-1
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Doc 45-3
Exhibit B-1
GMAC-RFC
1-06-B03
Chapter 7, At-A-Glances
Revised Interest Only requirements for Jumbo A program (Jumbo A At-A-Glance)
Revised Secondary Financing Requirements for Payment Option program (Payment
Option At-A-Glance)
Clarified maximum CLTV for all documentation types and updated Maximum CLTV for
Stated Income with expanded Credit Scores for A4 (AlterNet At-A-Glance)
Moved Secondary Financing Guidelines to the AlterNet Underwriting Criteria At-AGlance (AlterNet Underwriting Criteria At-A-Glance)
Combined Interest Only guidelines with standard guidelines (Home Equity Goal Line
and Goal Loan At-A-Glance)
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This page intentionally left blank.
Exhibit B-1
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Exhibit B-1
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Client Guide
Introduction
1
Introduction
100
GMAC-RFC Objective
Welcome to GMAC-RFCs Client Guidethe reference book governing our business
relationship. This Client Guide sets forth the terms and conditions for selling Loans to GMACRFC. It also describes our products and Loan Programs, and contains standard forms that
will be useful in our dealings together.
Please feel free to contact your GMAC-RFC sales director with any questions you may have
about the contents of this Client Guide.
Thank you for your business. We look forward to working with you.
101
Client Contractual Obligations
By signing the Client Contract, the Client is bound by all provisions of this Client Guide,
including but not limited to the Representations and Warranties of Client and Remedies of
GMAC-RFC Sections of this Client Guide. This Client Guide, the Client Contract, and the
applicable Negotiated Commitment Letter govern the purchase of Loans under
Commitments.
102
Single Contract
This Client Guide sets forth the terms and conditions upon which a Client will sell mortgage
Loans and servicing to GMAC-RFC. A similar Servicer Guide covers Servicers who contract
with GMAC-RFC. GMAC-RFC maintains a single contractual relationship with each entity with
which it does business as a Client, a Servicer or both. GMAC-RFC has prepared two Guides
for ease of reference only. Where GMAC-RFC contracts with an entity to be both a Client and
a Servicer, it carefully evaluates all aspects of the proposed relationship before approving an
entity as a Client. Failure of a Client to perform obligations under either this Client Guide or
the Servicer Guide constitutes a default under the Client relationship and permits GMACRFC to disqualify such Client as either a Client or a Servicer and permits GMAC-RFC to
terminate its entire relationship with that entity.
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Exhibit B-1
GMAC-RFC
03/13/06
Client Guide
Introduction
103
Relationship of GMAC-RFC and Client
This Client Guide provides for terms related to the sale of Loans by Client and the purchase
of Loans by GMAC-RFC. The relationship between Client and GMAC-RFC is limited to that of a
seller on the part of Client and that of a buyer on the part of GMAC-RFC. Nothing in this
Client Guide or any related marketing or other materials creates or may be construed as
permitting or obligating GMAC-RFC to act as a financial or business advisor or consultant to
Client, as permitting or obliging GMAC-RFC to control Client or to conduct Clients operations,
as creating any fiduciary obligation on the part of GMAC-RFC to Client, or as creating any
joint venture, agency, partnership or other relationship between GMAC-RFC and Client other
than as explicitly and specifically set out in a formal writing, signed by both parties, intended
to create such a relationship. Client acknowledges that it has had the opportunity to obtain
the advice of experienced counsel of its own choosing in connection with the negotiation and
execution of the Client Contract and this Client Guide. Client further acknowledges that it is
experienced with respect to the transactions contemplated by this Client Guide and has made
its own independent decisions with respect to the Client Contract, the Client Guide and any
related transactions.
104
Client ID Number
Each Client approved to participate in GMAC-RFCs Loan Programs is assigned an individual
ID number. This ID number must be used on all correspondence and on all transmittals sent
to GMAC-RFC pertaining to Loans sold to GMAC-RFC under Commitments issued. This
number is sometimes referred to as the Client/Servicer ID number.
105
GMAC-RFC Loan Number
Each Loan is assigned a GMAC-RFC Loan number. This Loan number must be used for all
correspondence and transmittals sent to GMAC-RFC. The GMAC-RFC Loan number is located
on the Purchase Advice.
106
Servicer Contractual Obligations
All Loans purchased by GMAC-RFC under the terms of the Client Contract and this Client
Guide, as may be amended by a Negotiated Commitment Letter, must be serviced by a
Servicer under the terms of the Loan Documents, the Client Contract and the Servicer
Guide.
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Exhibit B-1
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Client Guide
Introduction
107
Notice
All notices that are to be given under this Client Guide shall be in writing. Anything in the
Client Contract to the contrary notwithstanding, if to the Client, notice must be sent by first
class United States mail with postage prepaid, overnight courier or fax, to the appropriate
address specified in the Client Contract or to any fax machine at that address, or by email. If
to GMAC-RFC, notice must be sent by first class United States mail with postage prepaid,
overnight courier or fax, to the appropriate address or fax number specified in this Client
Guide. Either the Client or GMAC-RFC may change the address or fax number to which
notices must be sent by providing notice of such change to the other.
108
Hours of Operation and Holidays
GMAC-RFC business hours 8:00 a.m. to 5:00 p.m., Central time, 7:00 a.m. to 5:00 p.m.,
Pacific time, and 8:30 a.m. to 5:30 p.m., Eastern time, Monday through Friday. In the year
2006 the offices of GMAC-RFC are closed on the following holidays: Martin Luther King, Jr.
Day, Presidents Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, the
day after Thanksgiving and Christmas Day.
109
Client Guide Organization
The following describes the organization of Chapters in this Client Guide. Chapter 3, Loan
Eligibility, and its sub-chapters and Chapter 4, Underwriting, and its sub-chapters include
general Loan parameters. Program Criteria that is specific to a Loan Program, is found in
the individual Loan Program Chapter and in Chapter 7, At-A-Glance.
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Exhibit B-1
GMAC-RFC
03/13/06
Client Guide
Introduction
Chapter 4, Underwriting
Chapter 4A, Credit
Chapter 7, At-A-Glance
The Chapters are made up of Sections. Each Section in a Chapter is designated by a 3-digit
number or number and letter combination.
110
Headings, Use of Capitalization and Definitions
Each Chapter and Section title in this Client Guide appears with initial capitalization.
References to a GMAC-RFC Loan Programs appears with initial capitalization. All terms
listed in Chapter 10, Definitions, have the special meaning given to them in Chapter 10 and
appear with initial capitalization throughout this Client Guide.
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Client Guide
Introduction
111
Form & Exhibit Numbering
All GMAC-RFC Forms & Exhibits are referenced as (GMAC-RFC Form/Exhibit #) in the text.
The date will be changed with each published revision. Each Client Guide Form & Exhibit
number is four or five digits. The first digit will be the numeral 1. The next digit(s) correlate
to the Chapter. The last two digits indicates the sequence.
112
Client Guide Online
For Clients convenience this Client Guide is available on the Internet at
GMACResidentialFunding.com. Clients can request access online. All amendments or
supplements will also be available online. In the event of any inconsistency the online guide
shall control.
113
General Rules of Interpretation
All words used in this Client Guide shall be construed to be of such gender or number as the
circumstances require. Nothing in this Client Guide shall be deemed to amend, or relieve the
Client of its obligations under, any Program Document. Whenever GMAC-RFC is used in this
Client Guide, it refers to Residential Funding Corporation.
(A) Knowledge Standard
Whenever any representation, warranty, or other statement contained in this Client Guide is
qualified by reference to a Clients knowledge or to the best of a partys knowledge,
such knowledge shall be deemed to include knowledge of facts or conditions of which
Client, including (without limitation) any of its directors, officers, agents, or employees,
either is actually aware or should have been aware under the circumstances with the exercise
of reasonable care, due diligence, and competence in discharging its duties under this Client
Guide and the Program Documents. All matters of public record shall be deemed to be known
by the Client. Any representation or warranty that is inaccurate or incomplete in any material
respect is presumed to be made with the knowledge of Client, unless Client demonstrates
otherwise. Due diligence means that care which Client would exercise in obtaining and
verifying information for a Loan in which Client would be entirely dependent on the
Mortgaged Property or Mortgagors credit as security to protect its investment.
(B) GMAC-RFCs Sole Discretion
Whenever any provision of this Client Guide contract requires GMAC-RFC to make a
determination of fact or a decision to act, or to permit, approve or deny another partys
action such determination or decision shall be made in GMAC-RFCs sole discretion.
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GMAC-RFC
03/13/06
Client Guide
Introduction
114
Use of Clients Name
GMAC-RFC reserves the right, at its option, to make the name of the Client generally
available, to publicly associate the name of the Client with GMAC-RFC Loan Programs and
to refer business prospects to the Client. GMAC-RFC agrees to waive this right upon written
notice from the Client requesting that GMAC-RFC do so.
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GMAC-RFC
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Client Guide
Introduction
115
Use of GMAC-RFC Name and Service Marks
The Client is not authorized to use the corporate name Residential Funding Corporation, the
trade name or initials GMAC-RFC, or any of the service marks of GMAC-RFC in any of the
Clients promotional or other materials without the prior written consent of GMAC-RFC. As
consideration for granting consent, the Client agrees to indemnify GMAC-RFC from and hold
it harmless against any loss, damage or expense, including those incurred in defending any
action or proceeding, which results from its use of the corporate name, trade name or service
marks.
At no time shall the Client advertise or represent in print, in verbal communications or
otherwise, that it is acting on behalf, under the direction, as the agent or as the
representative of, or otherwise through or for, GMAC-RFC.
116
Assetinfo
Assetinfo is a Client reporting application designed to make Loan inquiries easy and fast.
Clients have 24 hour, 7-day-a-week access to the status of their Loans in process,
outstanding Commitments, funded Loan data, and other critical information online at
GMACResidentialFunding.com. Clients can easily access this information by entering their
GMAC-RFC username and password. Please contact your Sales Director for additional
information.
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Introduction
Exhibit B-1
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Exhibit B-1
Page 2.1
03/13/06
Client Guide
Client Eligibility
2
Client Eligibility
200
Client Eligibility
GMAC-RFC will approve Clients of GMAC-RFC as mortgage Loan lenders approved in good
standing. Clients of GMAC-RFC will be eligible to participate in GMAC-RFCs Loan
Programs.
In order to become a Client, a mortgage Loan lender must:
Satisfy the GMAC-RFC Client Eligibility Standards
Have its completed Client Application approved by GMAC-RFC
Enter into the Client Contract
Deliver a certified Resolution of Board of Directors to GMAC-RFC and other documents
as required by GMAC-RFC
Deliver 3 original Limited Power of Attorney documents to GMAC-RFC (GMAC-RFC
Form 1204). The Limited POA grants GMAC-RFC the authority to execute and/or
correct documents for the purpose of assigning and transferring mortgage assets to
GMAC-RFC. The use of the Limited POA is restricted to those assets, which the Client
has committed to GMAC-RFC.
In order to remain eligible to participate in GMAC-RFCs Loan Programs, the Client must
comply with all of the terms of the Client Contract, including this Client Guide.
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201
Eligibility Standards
(A) To Be eligible As a Client, the Client Must Be:
In compliance with all capital requirements and other requirements specified by any
State or federal regulatory agency that are applicable to the Client
A member of MERS, in good standing and current in payment of all fees and
assessments by MERS (if any Loan is registered with MERS)
(B) Net Worth Requirements:
The Client must maintain GAAP tangible net worth requirements (defined as GAAP total net
worth minus any intangible assets). Contact your sales representative for current tangible
net worth requirements.
Example:
Audited Book Net Worth at
Intangible assets (from audited
financial statements)
Tangible Net Worth
$3,000,000
minus
$250,000
$2,750,000
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(E) The Client must maintain adequate fidelity, errors and omissions insurance
coverage for its operations and the carrier of such insurance coverage must be
rated B/III, A/II or better in the current Bests Key Rating Guide.
(F) The Clients Delinquency rates on all Loan production must be acceptable to
GMAC-RFC.
(G) The Client must adhere to prudent standards for written policies and
procedures for mortgage Loan origination, Loan Document delivery
requirements and an internal audit program (including quality control).
(H) The Clients mortgage insurance claim experience must be acceptable to GMACRFC.
(I) The Client must comply with all State and federal laws and regulations
applicable to its business and operations, including, without limitation, all fair
lending laws. If the Client has been cited by any regulatory authority for having
violated any fair lending laws or regulations, it must demonstrate to GMACRFCs satisfaction that it has taken corrective action to remedy such violation.
(J) The Client, upon request, will provide GMAC-RFC with a corporate resolution for
the purpose of assigning and transferring to GMAC-RFC mortgages, deeds of
trust and Security Instruments.
(K) The Client must comply with the rules and procedures of MERS in connection
with all Loans registered with MERS. If the Client has been terminated,
disqualified or suspended or threatened with termination, disqualification or
suspension by MERS, the Client must demonstrate to GMAC-RFCs satisfaction
that it has taken corrective action to remedy such termination, disqualification
or suspension.
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202
Client Contract
As set forth in more detail in the Client Guide, to participate in GMAC-RFCs Loan Programs,
a lender agrees to be bound and abide by the procedures, terms and conditions set forth in
this Client Guide, as it may be amended from time to time. The lender must also enter into a
Commitment Letter that specifies, among other things, the maximum dollar volume of
Mortgage Loans that may be offered for sale within a stated period of time.
203
Client Underwriting Responsibilities
The Client must ensure that Loans sold to GMAC-RFC meet the eligibility and underwriting
guidelines as outlined in this Client Guide. The Client represents and warrants such
compliance.
The Client is responsible for credit and property underwriting performed by it or by entities
other than the Client which have been retained by the Client to perform such underwriting on
Clients behalf. This applies even if the credit information and appraisal were requested by or
if any Loan processing functions were performed by an entity other than the Client or an
entity related to the Client.
204
Continuing Client Obligations
In order to remain eligible, the Client must be active with GMAC-RFC in the preceding
calendar year, maintain the initial eligibility standards or eligibility standards currently in
effect, and comply with the continuing obligations as defined in this Client Guide. In addition,
GMAC-RFC reserves the right to amend any or all continuing eligibility standards for a Client
based upon its current financial strength, volume and performance.
205
Disqualification, Suspension or Inactivation
GMAC-RFC may disqualify, suspend or inactivate the Client from selling Loans to GMAC-RFC,
or may take any other action GMAC-RFC deems appropriate upon notice to Client. The Client
will be ineligible to obtain new Commitments during any period of disqualification,
suspension or inactivation. GMAC-RFC will determine the length of any disqualification,
suspension, or inactivation period, and may prescribe the terms and conditions for
reinstatement.
(A) Termination
Either party may terminate the Program Documents and Clients right to participate in GMACRFCs Loan Programs at any time upon five days prior written notice of termination to the
other party. GMAC-RFC may suspend or terminate the Program Documents and Clients right
to participate in GMAC-RFCs Loan Programs immediately if it has cause to believe an
Event of Default or a breach of a representation and warranty has occurred.
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206
Reporting Requirements
(A) Annual Requirements
Within 90 days after the Clients fiscal year end, it must send the following documents to
GMAC-RFC:
(1) Annual financial statements that include:
An independent auditors opinion on financial statements
An independent auditors report on the Uniform Single Attestation Program (USAP)
for mortgage bankers
A copy of the 10-K if the Client is required to prepare an annual Form 10-K
(2) A completed Freddie Mac Annual Eligibility Certification Report (Freddie Mac Form
16SF). If the Client is not required to submit Freddie Mac Form 16SF, then the
Annual Client Certification (GMAC-RFC Form 1200) may be substituted.
(B) Other Reporting Requirements
(1) Interim Financial Statements; Other Information
The Client shall, upon the reasonable request of GMAC-RFC, provide its quarterly unaudited financial statements, Form 10-Qs, or any other financial information
pertaining to the Client.
(2) Fidelity and Errors and Omissions Insurance
The Client must notify GMAC-RFC if it receives notice from its insurer of intent to
cancel, not renew, or otherwise modify the Clients coverage. This notification must
be sent to GMAC-RFC by registered mail at least 10 days before it becomes
effective.
The Client must report to GMAC-RFC all cases of material theft, embezzlement or
fraud and all claims made against the insurer within 10 days after the occurrence.
If requested by GMAC-RFC, the Client must provide current certificates of
insurance outlining its fidelity and errors and omissions insurance.
(C) Mailing Address
Submit all information required under Annual Requirements and Other Reporting
Requirements Sections above to:
GMAC-RFC
One Meridian Crossings
Suite 100
Minneapolis, MN 55423
Attention: Risk Management
Facsimile: 952-979-2592
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207
Audits and Inspections
The Client agrees to allow GMAC-RFC to conduct, from time to time, audits or inspections at
one or more of the Clients offices during normal business hours. At that time, the Client shall
provide the assistance of a knowledgeable and responsible individual and will grant GMACRFC access to all books, records and files pertaining to:
The Loans
The Clients compliance with the terms and provisions of the Client Contract, including
this Client Guide
The Client also agrees, upon the request of GMAC-RFC, to deliver the material described in
the Maintenance of Records Section of this Client Guide. GMAC-RFC may, from time to
time, conduct audits at GMAC-RFC offices using information and documents provided by the
Client. During these audits the Client should provide a person or persons to contact by
telephone for additional information.
208
Disclosure of Information
The Client shall, upon the request of GMAC-RFC, disclose to GMAC-RFC information relating
to the Clients origination or Servicing experience. This information may include, but is not
limited to, information required under Regulation AB or any successor regulation, information
on losses, mortgage insurance claims, Delinquency, and declination experience on
mortgage Loans originated or serviced by the Client, as well as related information. The
Client also consents to the disclosure by GMAC-RFC, of any such information to investors,
rating agencies, credit enhancement providers, or any other entity that needs the
information in connection with GMAC-RFCs secondary marketing operation. The Client
releases and agrees to hold harmless GMAC-RFC, and any insurer or other entity which
discloses information as provided above, from and against any claims or liabilities connected
with such disclosure.
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209
Maintenance of Records
The Client shall maintain adequate records of all Loans submitted to GMAC-RFC for
underwriting approval for such periods of time as may be necessary to comply with the Equal
Credit Opportunity Act and other applicable laws and regulations. The Client shall maintain a
file for each Loan purchased by GMAC-RFC, clearly marked with the GMAC-RFC Loan number
and, for Loans registered with MERS, the MIN. The Client shall maintain each file throughout
the time GMAC-RFC owns the Loan and thereafter for a period of three years from the date
the Loan is fully paid or, if the Loan is accelerated, for at least six years from the date the
Loan is fully paid. The file must contain:
Copies of all documents delivered in their original form to GMAC-RFC
Originals of all documents, copies of which were delivered to GMAC-RFC
All other Loan and related documents not required to be sent to GMAC-RFC
In lieu of retaining copies and originals as stated above, the Client may retain microfiche,
microfilm or magnetic media copies or acceptable Write Once Read Many (WORM)
technology.
210
Quality Control
(A) Recommended Program
The Client shall maintain an internal quality control program that ensures the accuracy of
legal and origination documents, as well as the soundness of underwriting decisions. The
program should be supported by a written plan outlining the objectives and scope of the
review and applicable policies and procedures and shall include, at a minimum, post- and
pre-closing review procedures.
(1) Pre-closing Review
A pre-closing review should, at a minimum, consist of the following procedures on all
or a representative sample of Loan production:
Review legal documentation for accuracy and completeness
Obtain duplicate credit reports (in-file or residential mortgage credit reports)
Reverify (by telephone) Loan information (e.g., employment, deposits, source
of funds, etc.)
Obtain review appraisals
Reverify other origination documentation as deemed appropriate by the Client
For all B and C grade Loans, as defined in this Client Guide, a documented
telephone verification of employment is required to be obtained within five days prior
to closing.
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The Client must also include in its quality control review all Loans in which a 30 day
Delinquency occurred within the first four months of the Loan. In addition, the
Client should include any Loan in which foreclosure proceedings have been instituted
within the first three years of the Loan if a Delinquency occurred during the first year
with respect to that Loan. In this case, the Client should obtain a new credit report
and new appraisal.
GMAC-RFC recommends that the Client expand the scope of its quality control
review whenever irregularities or discrepancies are discovered. This supplemental
audit should include verifying the occupancy of the Mortgaged Premises,
investigating the presence of undisclosed Secondary Financing and validating or
determining possible self-employment income of the Borrower.
The Client must maintain accurate records (log books, etc.) of all Loans audited, the
work performed, results, and necessary follow-up and should make these records
available to GMAC-RFC upon request. The Client must retain these records as long as
GMAC-RFC owns the Loan. The quality control staff should report general results as
well as variances discovered during any phase of the audit to the Clients senior
management on at least a quarterly basis. These reports should correct and prevent
deficiencies in the Clients ongoing origination, underwriting, appraisal and closing
functions. If a quality control audit discovers that a breach of any representations or
warranty has occurred, the Client must give GMAC-RFC prompt written notification of
such breach, outlining the details of the discovery and any supporting documents.
Send this notice to:
GMAC-RFC
One Meridian Crossings
Suite 100
Minneapolis, MN 55423
Attention: Quality Audit
GMAC-RFC may ask the Client to increase its quality control sampling requirements
or may take any action deemed necessary if the Client experiences a number of
variances which significantly impact the investment quality of the Loans sold to
GMAC-RFC.
(B) Loan Audit
The Client agrees to conduct a Loan audit on any Loan upon the written request of GMACRFC. The Client must determine whether the Loan was prudently originated and if an Event
of Default has occurred.
If an audit discovers an Event of Default, the Client must promptly notify GMAC-RFC in
writing as specified in this Client Guide.
The Client shall complete the audit of any Loan in which foreclosure proceedings have been
instituted in a thorough and timely manner. During this investigation, GMAC-RFC may
manage the foreclosure process, making decisions regarding short payoffs, deed-in-lieu
transactions, and REO sales prices and dispositions. GMAC-RFC will make these decisions
without regard to this investigation and as though it, or its investor, will incur the loss on the
Loan.
However, if the investigation shows that an Event of Default has occurred, GMAC-RFC may
ask the Client to repurchase the Loan or the property, or to reimburse GMAC-RFC for its loss,
if the property has been disposed of, depending on the stage of the foreclosure process at
the time of the determination.
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Representations,
Warranties and
Covenants
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Representations,
Warranties and
Covenants
A201
Specific Representations, Warranties and Covenants Concerning Client
(A) Due Organization; Good Standing; Licensing
Client and, to Clients knowledge, Clients Guarantor, if applicable, is and shall continue to be
duly organized, validly existing, and in good standing under the laws of the United States or
under the laws of the jurisdiction in which it was incorporated or organized, as applicable,
and has and shall continue to maintain all licenses, registrations, and certifications necessary
to carry on its business as now being conducted, and is and will continue to be licensed,
qualified, and in good standing in each State where a Mortgaged Property is located if the
laws of such State require licensing or qualification in order to conduct business of the type
conducted by Client1. Client is and will remain in compliance with the laws of any such State,
and is and will remain in good standing with federal authorities, to the extent necessary to
ensure the enforceability of the related Loan. Client has disclosed the final written reports,
actions and/or sanctions of any and all reviews, investigation, examinations, audits, actions
and/or sanctions that have been undertaken and/or imposed, within two years prior to the
date of the Client Contract, by any federal or State agency or instrumentality with respect to
either the lending or related financial operations of Client, or the ability of Client to perform
in accordance with the Program Documents terms. Each of the representations and
warranties made by Client in its Client Application is true, accurate, and complete, and is
deemed to be remade in its entirety, as of the date of the Client Contract, and as of each
Funding Date.
1 In addition, if any Loan is secured by mortgaged property located in the State of West Virginia, Client and the
originator of the Loan is licensed under the West Virginia Mortgage Loan Act and Client and the originator of the
Loan held such license at the time the Loan was originated, unless otherwise exempt from licensing. Client and
the originator of the Loan must be licensed under the West Virginia Mortgage Loan Act even if Client and the
originator of the Loan makes or offers to make or accepts or offers to accept or purchases or services in a calendar
year fewer than the number of de minimus primary or subordinate mortgage Loans specified in the definition of
lender in W. Va. Code Section 31-17-1.
(B) Authority
Client has and will maintain the full corporate, partnership or limited liability company power
and authority to execute and deliver the Program Documents and to perform the terms of
this Client Guide. The execution, delivery, and performance of the Program Documents and
the performance of the terms of this Client Guide by Client, and the consummation of the
transactions contemplated, have been duly and validly authorized. The Program Documents
and this Client Guide evidence Clients legal valid, binding, and enforceable obligations. All
requisite corporate, partnership or limited liability company action has been taken by Client
to make the Program Documents and the terms of this Client Guide valid and binding upon
Client and enforceable in accordance with their respective terms.
(C) Ordinary Course of Business
The consummation of the transactions contemplated by the Program Documents and the
Client Guide terms are in Clients ordinary course of business, and the transfer, assignment,
and conveyance of the Mortgage Notes and the Mortgages by Client, pursuant to the
Program Documents and the Client Guide terms are not subject to the bulk transfer laws or
any similar statutory provisions in effect in any applicable jurisdiction.
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(D) No Conflicts
Neither the execution and delivery of the Program Documents, the acquisition and/or making
of the Loans by Client, the sale of the Loans to GMAC-RFC or the transactions contemplated
thereby or pursuant to this Client Guide, nor the fulfillment of or compliance with the
Program Documents terms and conditions, will conflict with or result in a breach of any of the
terms, conditions, or provisions of Client's articles of incorporation, charter, by-laws,
partnership agreement, or other organizational document, or of any legal restriction or
regulatory directive or any agreement or instrument to which Client is now a party or by
which it is bound, or constitute a default or result in an acceleration under any of the
foregoing, or result in the violation of any law, rule, regulation, order, judgment, or decree to
which Client, or any of its property is subject, or impair the ability of GMAC-RFC to realize on
any of the Loans, or impair the Value of any of the Loans.
(E) Ability to Perform
Client has the ability to perform each and every obligation of and/or satisfy each and every
requirement imposed on, Client pursuant to the Program Documents and this Client Guide,
and no offset, counterclaim, or defense exists to the full performance by Client of the
requirements of Program Documents and this Client Guide.
(F) No Litigation Pending
There is no action, suit, proceeding, inquiry, review, audit, or investigation pending or
threatened against Client that, either in any one instance or in the aggregate, may result in
any material adverse change in the business, operations, financial condition, properties, or
assets of Client, or in any material liability on the part of Client, or which would draw into
question the validity or enforceability of any of the Program Documents, this Client Guide, or
the Loans or of any action taken or to be taken in connection with Clients obligations
contemplated in any of the Program Documents or this Client Guide, or which would be likely
to impair materially Clients ability to perform under the terms of the Program Documents or
this Client Guide.
(G) No Consent Required
No consent, approval, authority, or order of any court or governmental agency or body is
required for the execution and performance by Client of, or compliance by Client with, any of
the Program Documents or this Client Guide, the sale of any of the Loans, or the
consummation of any of the transactions contemplated by any of the Purchase Documents,
or, if required, such unconditional approval has been obtained prior to the related Funding
Date.
(H) No Untrue Information
Neither the Program Documents, the Client Application, this Client Guide, nor any statement,
report, or other document furnished or to be furnished by Client pursuant to the Program
Documents or this Client Guide, contains any untrue statement of material fact or omits to
state a material fact necessary to make the statements contained therein not misleading.
Client meets GMAC-RFCs Eligibility Standards, and shall take all steps necessary to continue
to meet such Eligibility Standards.
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Covenants
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A202
Specific Representations, Warranties and Covenants Concerning Individual Loans
For all Loans, the Client represents, warrants and covenants to GMAC-RFC as follows:
(A) Loans Are Eligible; Accuracy of Information
Each of the Loans delivered and sold to GMAC-RFC meets the applicable program terms and
criteria set forth in this Client Guide. All information relating to each Loan delivered and sold
to GMAC-RFC is true, complete and accurate and there are no omissions of material facts. All
data provided by the Client to GMAC-RFC relating to any Loan, whether in electronic format,
or otherwise, is true and complete and accurately reflects the information in the related Loan
file.
(B) Compliance With Warranties
The Client is in compliance with, and has taken all necessary action to ensure that each Loan
is in compliance with all representations, warranties and requirements contained in this
Client Guide.
(C) Loan Provisions
The provisions of the Loan have not been impaired, waived, altered or modified in any
respect, unless approved in writing by GMAC-RFC. The issuer of any related PMI Policy and
the title insurer have approved the substance of any such waiver, alteration, or modification
to the extent required by the respective policies. No Mortgagor has been released, in whole
or in part.
(D) Documents
All Loan Documents, Funding Documents and Final Documents are genuine, have been
completed, duly and properly executed, are in recordable form and delivered in the form and
manner specified in this Client Guide, and each Loan is the Mortgagors legal, valid and
binding obligation enforceable in accordance with its terms. All originals and copies of such
documents and all other documents, materials, and other information required to be
submitted to GMAC-RFC have been so submitted, and are complete and accurate. All Loan
Documents, Funding Documents, Final Documents and all other documents describing or
otherwise relating thereto are in compliance with all applicable local and State laws,
regulations and orders.
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(c) Home Equity Lines and 1st Lien Lines of Credit That Exceed the HOEPA
Triggers
An open-end line of credit secured by the consumers principal dwelling that
exceeds the points and fees or APR triggers of the Home Ownership and Equity
Protection Act of 1994 and the related regulations and commentary promulgated
by the Federal Reserve Board, including Section 226.32 of Title 12 of the Code of
Federal Regulations. Points and fees must be calculated in accordance with
Section 226.32 of Title 12 of the Code of Regulations and the related
commentary promulgated by the Federal Reserve Board. The APR is the fully
indexed rate or the initial rate, whichever is greater, at the time of
consummation. The total loan amount is the total credit line available under
the terms of the loan, without subtracting any amounts for closing costs.
(d) State and Local High Cost Loans
A loan considered a high-cost, covered, high-risk, predatory or any other
similar designation under any State or local law in effect at the time of the
closing of the loan if the law imposes greater restrictions or additional legal
liability for residential mortgage loans with high interest rates, points and/or
fees.
(e) Certain Georgia Home Loans
A home loan under the Georgia Fair Lending Act, Ga. Code Ann. Section 7-6A1 et. seq. that became effective on October 1, 2002 (the Act), if the
Commitment was issued on or after February 1, 2003 and the loan was closed
on or before March 7, 2003.
(f) Certain New Jersey Home Loans
A home loan under the New Jersey Home Ownership Security Act of 2002 (the
Act), N.J.S.A. 46:10B-22 et seq. if the loan is:
A home loan if the property is a Manufactured Home;
A home loan with proceeds intended for home improvement purposes;
A home loan that is an open-end line of credit;
A closed-end home loan secured by a first or second lien that is a cashout transaction;
Follow standard guidelines in the GMAC-RFC Client Guide to determine whether
the loan is a cash-out refinance or a rate/term refinance.
(g) Certain New Mexico Home Loans
A home loan under the New Mexico Home loan Protection Act (the Act), that
was closed on or after February 1, 2004, and on or before February 26, 2004, if
the loan is:
A home loan if the property is a Manufactured Home;
A home loan with proceeds intended for home improvement purposes;
A home loan that is an open-end line of credit;
A closed-end home loan secured by a first or second lien that is a cashout transaction;
Follow standard guidelines in the GMAC-RFC Client Guide to determine whether
the loan is a cash-out refinance or a rate/term refinance.
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Representations,
Warranties and
Covenants
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Warranties and
Covenants
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Covenants
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Covenants
(Z) Leaseholds
Where permitted by the applicable Loan Program, each Mortgaged Premises involving a
Leasehold estate complies with the applicable Leasehold warranties set forth in this Client
Guide.
(AA) Condominiums; Planned Unit Developments (PUDs)
Each Mortgaged Premises that is a unit in a condominium or PUD complies with the
applicable condominium or PUD warranties set forth in this Client Guide.
(BB) Compliance By Others
When a person or entity: (i) originates a Loan on behalf of a Client, (ii) originates a Loan on
its own behalf and sells it to a Client, or (iii) performs any act for a Client which the Client is
required to perform under this Client Guide, the Client warrants that such person or entity
has complied with all requirements of this Client Guide with respect to all such Loans and
acts.
(CC) Client Contract Warranties
The representations and warranties made at the time of the Clients execution of the Client
Contract must remain true, correct and complete.
(DD) Client and Originators
Each Jumbo A, Expanded Criteria or Payment Option Loan was originated by (i) a savings and
loan association, savings bank, commercial bank, credit union, insurance company or similar
banking institution which is supervised by a federal or State authority, or (ii) a HUD approved
non-supervised or correspondent mortgagee.
If the Client sells Loans to GMAC-RFC which are registered with MERS or as to which MERS is
the mortgagee on the Security Instrument, the Client is a member of MERS, in good
standing and current in payment of all fees and assessments imposed by MERS.
(EE) No Impairment of Insurance
No action, error, omission, misrepresentation, negligence, fraud or similar occurrence in
respect of a Loan has taken place on the part of any person, including, without limitation, the
Borrower, any appraiser, any builder or developer or any party involved in the origination of
the Loan or in the application of any insurance in relation to such Loan that might result in a
denial, contesting, failure or impairment of full and timely coverage under any insurance
policies required to be obtained or any pool insurance policy covering such Loan.
(FF)Temporary Buydowns
Where permitted by the applicable Loan Program, each Temporary Buydown Loan
delivered to GMAC-RFC was entered into pursuant to a buydown agreement which complies
with the Temporary Buydowns Section in Chapter 3C, Financing, of this Client Guide.
(GG) Primary Mortgage Insurance Cancellation
The Client has disclosed in writing to the Borrower the terms and conditions that must be
met prior to the primary mortgage insurance being eligible for cancellation. A copy of this
disclosure has been retained in the Loan file as a permanent record.
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Doc 45-3
Exhibit B-1
GMAC-RFC
2A
Page 2A.15
11/21/05
Client Guide
Representations,
Warranties and
Covenants
A203
Additional Client Representations, Warranties and Covenants for the Home Equity
Program
The Home Equity Program adheres to the Client representations, warranties and covenants
stated below as well as the representations, warranties and covenants contained in this
Client Guide.
Unless the Home Equity Loan is a valid first lien on the Mortgaged Premises, the following
representation and warranty applies:
Valid Second Lien
Each Security Instrument transferred to GMAC-RFC constitutes a valid lien on the
Mortgaged Premises which is subordinated only to a lien of the holder of a first
mortgage Loan, and is subject only to the minor impediments described in the Title
Insurance Section of this Chapter. No such impediment shall adversely affect the
Value, use, enjoyment or marketability of the Mortgaged Premises.
The following additional representations and warranties are made by the Client to GMAC-RFC
as of the Purchase Date of each Home Equity Loan:
(A) Licensing
The Client and any agents or correspondents originating for the Client have obtained all
licenses and approvals required with respect to the origination of the Home Equity Loans,
including, to the extent applicable, licenses and approvals required for small Loans or small
advances and licenses and approvals required to charge the maximum interest rate allowable
under State law.
(B) No Contractor or Dealer Loans
No home improvement contractor or dealer was involved as a third party originator of a
Home Equity Loan or received compensation in any form from the Client.
(C) No Borrower Defenses or Claims
No unresolved defense or claim has been made or asserted in writing by the Borrower with
respect to the Home Equity Loan, including, without limitation, any defenses or claims based
on unsatisfactory workmanship or materials in connection with any home improvements
financed with the proceeds of the Home Equity Loan.
(D) No Prohibition on the Home Equity Loan
None of the documents evidencing, securing or otherwise relating to the first mortgage Loan
in any way restricts or prohibits the Borrower from obtaining the Home Equity Loan or from
creating any of the liens granted as security for the Home Equity Loan, and the Home Equity
Loan does not violate any term or condition imposed by any such document.
(E) No Defaults
The Borrower is not in default or otherwise in violation of any terms or conditions of the
Home Equity Loan security agreement or Note, and no grounds exist for restricting or limiting
access to, or accelerating the maturity of, the Home Equity Loan.
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Exhibit B-1
2A GMAC-RFC
Page 2A.16
11/21/05
Client Guide
Representations,
Warranties and
Covenants
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GMAC-RFC
Exhibit B-1
2A
Page 2A.17
11/21/05
Client Guide
Representations,
Warranties and
Covenants
A204
Non-Standard Documents
While GMAC-RFC is not obligated to purchase a Loan secured by Non-Standard
Documents, it may choose to do so from time to time. In this event, the Client represents
and warrants that:
(1) The terms of the Non-Standard Documents do not violate and are fully enforceable
under applicable laws and regulations.
(2) The Non-Standard Documents contain covenants of the Borrower similar to those
outlined in the Uniform Instruments of this Client Guide. The Non-Standard
Documents should also grant rights to the Client (including default and foreclosure
rights, rights to inspect and rights upon condemnation) equivalent to the Uniform
Instruments.
(3) The Non-Standard Documents contain a fully enforceable due-on-sale or due-ontransfer clause if allowed by applicable law in accordance with this Client Guide.
(4) The Non-Standard Documents grant no more favorable rights to the Borrower upon
default and foreclosure than are contained in the Uniform Instruments for the
jurisdiction in which the Mortgaged Premises are located.
(5) If it is necessary to protect the interest of the Notes holder, the Non-Standard
Documents should contain a specific waiver by the Borrower and the Borrowers
spouse of:
Any statutory right of redemption after foreclosure
Any right of homestead, dower, curtesy or similar marital right
(6) The Non-Standard Documents expressly permit the Client to advance sums for
unpaid insurance Premiums, property taxes, and/or any other payments necessary
to protect the Value of the Mortgaged Premises or the rights of the Note holder in the
Mortgaged Premises. The Non-Standard Documents permit, but do not require, the
Client to add such amounts to the indebtedness secured by the Security
Instrument. The Client additionally warrants that no capitalization of any such
payments or any delinquent principal and interest obligations will occur in the future.
(7) The Non-Standard Documents contain fully enforceable acceleration clauses for the
Borrowers default in payments and for the Borrowers breach of any covenant.
(8) The Non-Standard Documents provide for monthly principal and interest
payments due on the first day of the month, fully amortized over 30 years or less
from the date of the Note. The interest portion of each payment is determined by
computing 30 days interest on the outstanding principal balance of the Note as of
the scheduled installment date.
(9) The Non-Standard Documents provide that if more than one person executes the
Note, then each signatorys obligation under the Note is joint and several.
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Exhibit B-1
2A GMAC-RFC
Page 2A.18
11/21/05
Client Guide
Representations,
Warranties and
Covenants
A205
Proof of Compliance
The Client will, upon the request of GMAC-RFC, supply proof satisfactory to GMAC-RFC of its:
(1) Compliance with all representations and warranties contained in this Client Guide,
and
(2) Compliance with all local, State and federal laws, rules and regulations.
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GMAC-RFC
Exhibit B-1
2A
Page 2A.19
11/21/05
Client Guide
Representations,
Warranties and
Covenants
A206
Integrity of Information
The Client is responsible for credit and property underwriting regardless of whether the
information was provided by the Client, an entity related to the Client or designated by the
Client to perform the function. This includes credit information, appraisals, or other
documents/information used in the Loan's evaluation.
The Client should take all steps necessary to ensure that each Loan sold to GMAC-RFC has
been prudently originated and underwritten, and that all information supplied by, on behalf
of, or concerning the Borrower is true, accurate and complete. The Client should ensure that
interested parties are sufficiently independent from the Loan transaction and that adequate
organizational controls are in place to ensure the independence, validity and reliability of the
Loan information.
In addition, the Client should implement prudent practices when relying on designated
agents (such as escrow companies, title companies, etc.) in order to ensure that they comply
with its instructions and that the integrity of the Loan transaction has been maintained.
A207
Third-Party Originators
When relying on the actions or services of third-party originators, the Client should establish
qualification and eligibility standards. The Client should consider the functions being
performed by the third-party originator in establishing these standards. These standards
should be reviewed periodically to ensure ongoing eligibility by the third-party originator.
The Client is encouraged to include the following items in formulating its qualification and
eligibility standards and procedures:
(1) Review personnel resumes and references of management and Loan origination staff
(Loan officers, processors, underwriters, closers, etc.)
(2) Establish minimum net worth requirements and evaluate the financial viability of the
firm on an ongoing basis
(3) Establish minimum requirements for errors and omissions insurance and fidelity
bond coverage and monitor ongoing compliance with these standards
(4) Document the relationship with a contractual agreement that contains specific
warranties related to each partys responsibilities, as well as recourse rights in the
event of warranty violations
(5) Review the performance of Loans originated by third parties to evaluate trends or
patterns of Delinquency
The Client should include a representative, random sample of third-party Loans in the quality
control program through both pre- and post-closing quality control audits to ensure the
quality of Loan information.
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Exhibit B-1
2A GMAC-RFC
Page 2A.20
12/01/05
Client Guide
Representations,
Warranties and
Covenants
A208
Events of Default
Any one or more of the following events constitute an Event of Default:
(1) The Client has not complied with one or more of the requirements (including any
requirement outlined in Chapter 2, Client Eligibility) terms or conditions outlined in
this Client Guide or one of the disqualification, suspension or inactivation events set
forth in the Disqualification Suspension or Inactivation Section has occurred or
occurs.
(2) The Client has breached any agreement outlined or incorporated by reference in the
Client Contract or any other agreement between the Client and GMAC-RFC.
(3) The Client breaches any of the representations, warranties or covenants set forth in
this Client Guide, fails to perform its obligations under this Client Guide or the
Program Documents, makes one or more misleading representations, warranties or
covenants to GMAC-RFC, or has failed to provide GMAC-RFC with information in a
timely manner, including information required under Regulation AB or any successor
regulation, that is true, complete and accurate.
(4) The Borrower or any other person or entity involved in the Loan transaction or in its
underwriting or documentation (including any appraiser, broker, third-party
originator, credit reporting agency, or other provider of underwriting information)
has made any false representation and/or has failed to provide information that is
true, complete and accurate in connection with such transaction, whether or not the
Client was a party to or had knowledge of such misrepresentation or incorrect
information.
(5) Occurrence of an Event of Servicer Default with respect to any Loans serviced by
the Client.
(6) Termination of servicing for cause is a basis for the Clients immediate
disqualification or suspension. Action taken by GMAC-RFC to terminate servicing
may be merged with an action to disqualify, suspend or inactivate the Client.
A209
Remedies of GMAC-RFC
(A) Non-Exclusive, Cumulative Remedies
GMAC-RFC may exercise any remedy outlined in this Client Guide or as allowed by law or in
equity. GMAC-RFCs exercise of one or more remedies in connection with a particular Event
of Default will not prevent it from exercising:
One or more other remedies in connection with the same Event of Default
Any other rights which it may have at law or in equity
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GMAC-RFC
Exhibit B-1
2A
Page 2A.21
11/21/05
Client Guide
Representations,
Warranties and
Covenants
A210
Repurchase
(A) Repurchase Obligations
If GMAC-RFC determines that an Event of Default has occurred with respect to a specific
Loan, the Client agrees to repurchase the Loan and its servicing (if the Loan was sold
servicing released) within 30 days of receiving a repurchase letter or other written
notification from GMAC-RFC.
If the Client discovers an Event of Default, it should give GMAC-RFC prompt written notice.
Such notice should include a written description of the Event of Default. Upon receipt of this
notice, GMAC-RFC will review these materials and any additional information or
documentation that the Client believes may influence GMAC-RFCs decision to require
repurchase. If GMAC-RFC decides to require repurchase, the Client shall repurchase the Loan
and the servicing (if the Loan was sold servicing released) within 30 days after GMAC-RFCs
decision is communicated to Client in writing.
To expedite the wiring of funds to GMAC-RFC, the Client should complete the servicing
transfer instruction form provided by GMAC-RFC. GMAC-RFC will send the form to the Client
along with the notification of repurchase.
GMAC-RFC is not required to demand repurchase within any particular period of time, and
may elect not to require immediate repurchase. However, any delay in making this demand
does not constitute a waiver by GMAC-RFC of any of its rights or remedies.
Where GMAC-RFC determines that repurchase of a Loan and/or the servicing is not
appropriate, the Client shall pay GMAC-RFC all losses, costs and expenses incurred by GMACRFC and/or the Loans Servicer as a result of an Event of Default. This includes all
reasonable attorneys fees and other costs and expenses incurred in connection with
enforcement efforts undertaken.
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Exhibit B-1
2A GMAC-RFC
Page 2A.22
11/21/05
Client Guide
Representations,
Warranties and
Covenants
Upon the Clients satisfaction of its repurchase obligation, GMAC-RFC will endorse the Note
evidencing the Loan in blank and will deliver it and other pertinent Loan Documents to the
Client. If GMAC-RFC acquired title to any of the real property securing the Loan pursuant to a
foreclosure sale and has not disposed of such property, it will transfer such property to the
Client on a quit claim basis or, if required by State law, a warranty deed basis. However, if
GMAC-RFC has disposed of the real property securing the Loan, the Loan Documents will not
be returned to the Client unless requested.
If the Client is also the Servicer of a Loan repurchased by reason of the occurrence of an
Event of Default, GMAC-RFC will not reimburse the Client for any principal, interest or other
advances made by the Client with respect to that Loan.
If, for any particular Loan, Client has complied with its property valuation documentation
requirements (as described under Specific Representations, Warranties and Covenants
Concerning Individual Loans in the Underwriting; Appraisal; Appraiser Section) by
providing a GMAC-RFC Qualified AVM in lieu of an appraisal, where the Loan Program terms
permit the use of a Qualified AVM as the sole documentation of property valuation
underlying such Loan, and provided a Qualified AVM was obtained by Client in good faith
directly from Qualified AVM Vendors (See GMAC-RFC Exhibit 16G05, Automated Valuation
Model (AVM) Approved Vendors) and has been submitted to GMAC-RFC in its original,
unaltered form as issued by the Qualified AVM Vendor; then, if an Event of Default related
to such Loan arises solely out of the validity and accuracy of the property valuation amount
stated in the Qualified AVM, but provided that in all other aspects the Loan was eligible for
purchase by GMAC-RFC at the time it was submitted for purchase by Client, GMAC-RFC will
not exercise its right to demand repurchase for such particular Loan by reason of such
particular Event of Default. However, GMAC-RFC may continue to exercise its right to demand
repurchase if GMAC-RFC reasonably believes that Client or any third party originator
obtained a Qualified AVM in bad faith, such as by using a Qualified AVM where Client or the
third party originator had reason to know that the mortgaged property was materially
different than that described in the Qualified AVM or that the description in the Qualified AVM
should not be considered reliable at the time the Loan was sold to GMAC-RFC.
(B) Repurchase Price of First Mortgage Programs
In the event the Client is obligated to repurchase a Loan the Client must pay to GMAC-RFC a
repurchase price equal to the sum of:
The actual principal balance of the Loan at the time of repurchase (if the Client sold the
Loan to GMAC-RFC at a discount or a Premium, the repurchase price above will be
adjusted to reflect the actual principal balance minus the discount percentage
multiplied by the actual principal balance, or plus the Premium percentage multiplied
by the actual principal balance, as appropriate, including that price paid for Servicing
Rights), plus
All accrued and unpaid interest on the Loan through the last day of the month of the
date of repurchase; plus
All interest, principal and other advances made to investors and all out of pocket costs
and expenses of any kind incurred by GMAC-RFC and/or the primary Servicer in
connection with the Loan, including, but not limited to, advances for taxes or
insurance, and repair, foreclosure and insurance costs and reasonable attorneys fees;
plus
The amount of the Buyout Fee as calculated in the Extension and Buyout Fees
Section of Chapter 9A, Commitments; plus
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Exhibit B-1
GMAC-RFC
2A
Page 2A.23
11/21/05
Client Guide
Representations,
Warranties and
Covenants
In the event that GMAC-RFC or any of its Affiliates is required to repurchase the Loan
from any subsequent assignee, then any additional amount as may be required to
make the repurchase price that the Client is obligated to pay hereunder equal to the
repurchase price that GMAC-RFC or its Affiliate is required to pay to such subsequent
assignee; minus
The net amount of any proceeds realized by the owner of the Loan upon the final
liquidation of the Loan or the Mortgaged Premises to an unrelated third party.
The Designated Servicer will return to the Client any escrow funds, unapplied funds and
prepaid principal and interest installments.
GMAC-RFC may demand that a Client repurchase, and Client must repurchase, a Loan after
foreclosure even if the full amount of its outstanding debt was bid on by or on behalf of the
Loans owner to acquire the Mortgaged Premises at the foreclosure sale. In the event the
Client is obligated to repurchase a Loan after foreclosure, the repurchase price shall be
calculated using the formula above, however Scheduled Principal Balance shall be
substituted for the actual principal balance.
(C) Repurchase Price of Home Equity Program
In the event the Client is obligated to repurchase a Home Equity Loan, the Client must, upon
repurchase, service such Home Equity Loan. The repurchase price for such Home Equity Loan
shall be equal to the sum of:
The unpaid principal balance of the Home Equity Loan
All accrued and unpaid interest on the Home Equity Loan
The amount of all fees and/or purchase Premium paid, if any, to the Client by GMACRFC for origination of the Home Equity Loan
All fees paid to any Servicer or sub-servicer of a Home Equity Loan by reason of the
termination of that Servicers or Sub-Servicers right to service that Home Equity Loan
All costs incurred or paid by GMAC-RFC or any Servicer in collecting or enforcing the
Home Equity Loan, including, without limitation, interest or other costs paid to bring or
maintain a prior lien current or up to date, costs to insure or pay delinquent taxes,
attorneys fees, court costs, appraisal and title expenses and other similar costs or
expenses (collectively, Foreclosure Expenses)
Any additional amount GMAC-RFC or any of its Affiliates is required to pay to
repurchase the Home Equity Loan from a subsequent assignee
In lieu of repurchasing a Home Equity Loan that has not yet been foreclosed and accepting
the servicing of such Home Equity Loan, GMAC-RFC may in its sole discretion allow Client to
pay to GMAC-RFC the Estimated Loss (as defined below). Estimated Loss, as it relates to
each Home Equity Loan subject to repurchase, shall equal the product of:
120% multiplied by the result of:
Repurchase price as calculated above, plus
Accrued interest on the Home Equity Loan through the date GMAC-RFC estimates that
the Home Equity Loan will be fully liquidated (which in the case of a foreclosure, shall
mean the date that GMAC-RFC estimates that the Mortgaged Premises will be sold to
a third party and which in any other case means the date that GMAC-RFC estimates
that all collection efforts on the Home Equity Loan will be abandoned) and estimated
foreclosure and other enforcement expenses for the entire collection process, less
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Exhibit B-1
2A GMAC-RFC
Page 2A.24
11/21/05
Client Guide
Representations,
Warranties and
Covenants
Amount by which the current market Value of the Mortgaged Premises as determined
by GMAC-RFC using valuation services provided by an independent third party exceeds
the current outstanding amount of indebtedness secured by the Mortgaged Premises
that is senior to the Home Equity Loan.
(D) Repurchase Price of a Servicing Released Loan
In the event the Client repurchases a Loan for which the servicing has also been sold to
GMAC-RFC, the Client will also be required to repurchase the servicing. If the repurchase of
the servicing of the Loan is for any reason other than a breach of the Delinquency Payoff/
Liquidation warranty contained in the Servicing Released Chapter 8, the Client must pay to
GMAC-RFC a repurchase price equal to the original Servicing Released Premium (SRP)
percentage multiplied by the actual unpaid principal balance at the time of repurchase.
In no event however, will the required repurchase Servicing Released Premium be greater
than the original Servicing Released Premium paid to the Client.
The Designated Servicer will return to the Client any escrow funds, Temporary Buydown
funds, unapplied funds and prepaid principal and interest installments. The Client will be
required to reimburse the Designated Servicer for any delinquent principal and interest
advances, and any escrow advances and foreclosure expenses they have made and not
recovered on a repurchased Loan.
(E) Repurchase As a Result of Conversion
The Client (or, if the Client has transferred servicing of the Loans, the Servicer) shall
repurchase a Loan which has converted from an ARM to a fixed-rate mortgage. The Servicer
must submit the ARM Conversion Notification Report no less than 15 days prior to the
conversion date.
If the Client or Servicer repurchases a converted Loan and subsequently resells that
converted Loan to GMAC-RFC, all the Clients representations and warranties with respect to
that Loan shall survive such repurchase and resale. In addition, the Client shall be subject to
all rights and remedies (including repurchase) available to GMAC-RFC as a result of any
misrepresentation or breach of warranty with respect to that Loan prior to conversion.
The Client shall also submit the modification agreement if requested by GMAC-RFC or its
assigns.
After its receipt of the Loan funds, GMAC-RFC will endorse the Note to the party which
repurchased the Loan. The Loan will then be assigned to such party, and all credit
documentation will be returned. Failure to submit the ARM Conversion Notification Report in
a timely manner may delay the receipt of the endorsed Note and other Legal Documents.
The Servicer shall submit a Payoff/Liquidation Report and wire transfer Loan funds to the
GMAC-RFC Loan Accounting Department no later than the last Business Day prior to the
conversion date. The Servicer must remit interest for the entire month preceding the
conversion date. The Client shall attach a copy of the ARM Conversion Notification Report.
If the appropriate amount is not wired on time, GMAC-RFC will charge a late payment fee.
This fee will equal the amount due multiplied by the Prime Rate plus 3% multiplied by the
number of days overdue divided by 365. The term Prime Rate shall mean the highest
quoted Prime Rate printed in The Wall Street Journal in its regular column Money Rates on
the first Business Day of the month in which the payment was due and not paid. If the
Prime Rate is not available, GMAC-RFC will determine a comparable rate.
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Exhibit B-1
GMAC-RFC
2A
Page 2A.25
11/21/05
Client Guide
Representations,
Warranties and
Covenants
(F) Substitution
Instead of requiring the Client to repurchase a Loan as provided above, GMAC-RFC, at its
sole discretion, may allow the Client to substitute another Loan satisfactory to GMAC-RFC in
place of the original Loan, within 10 days of notification by GMAC-RFC, unless otherwise
notified. If the substituted Loan contains terms different from those of the Loan that it is
replacing, a purchase price adjustment will be calculated by GMAC-RFC based on market
changes and Loan characteristics. Every Loan substituted will be subject to all agreements,
terms, conditions, representations and warranties in this Client Guide as of the Substitution
Date.
In the event a Loan is eligible for purchase by GMAC-RFC but the servicing is ineligible for
purchase by GMAC-RFC, the Loan will be purchased and the sale of servicing denied. GMACRFC will not allow the Client to substitute another servicing released Loan.
(G) Cost of Transfer Fees Due to Repurchase
The Client agrees that, if it is required to repurchase a Loan and the related Servicing, it will
pay all documentary stamp taxes, recording fees, transfer taxes and all other expenses
payable in connection with the repurchase and will indemnify and hold harmless GMAC-RFC
and the Designated Servicer against all losses, costs and expenses, including attorney
fees, resulting from such required repurchases or the breach giving rise hereto.
(H) Notice and Appeal
The Client may appeal GMAC-RFCs decision by providing any additional information or
documentation it believes may affect GMAC-RFCs determination.
Send all notifications and appeals to:
GMAC-RFC
One Meridian Crossings
Suite 100
Minneapolis, MN 55423
Attention: Repurchase Management
Such information and documentation must be received within 30 days after the Clients
receipt of a repurchase letter or similar written notification from GMAC-RFC. GMAC-RFC will
review all appeals and advise the Client in writing of the appeal decision. GMAC-RFC will in its
sole discretion determine the validity of any appeal filed by the Client. If GMAC-RFCs
decision remains firm following an appeal, the Client shall repurchase the Loan and its
servicing (if the Loan was sold servicing released) within 10 days of notification by GMACRFC, in writing, that the appeal has been denied.
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Doc 45-3
Exhibit B-1
2A GMAC-RFC
Page 2A.26
11/21/05
Client Guide
Representations,
Warranties and
Covenants
A211
Disqualification Suspension or Inactivation
In addition to GMAC-RFCs other rights to terminate, disqualify, suspend or inactivate a
Client, GMAC-RFC may disqualify, suspend or inactivate a Client for any of the following
reasons:
(1) Impending or actual insolvency of the Client,
(2) The filing of a voluntary petition by the Client under the federal bankruptcy laws or
under any State bankruptcy or insolvency laws,
(3) The filing of an answer by the Client in an involuntary proceeding admitting
insolvency or inability to pay debts,
(4) The Clients entry of an order for relief under the federal bankruptcy laws,
(5) The appointment of a trustee or receiver for the Client or its property,
(6) The execution by the Client of an assignment for the benefit of creditors,
(7) The failure of the Client to obtain a vacation or stay of involuntary proceedings
brought for its reorganization, dissolution, or liquidation,
(8) Any other change in the financial or organizational status of the Client that, in the
opinion of GMAC-RFC, could adversely affect GMAC-RFC or any Loans sold to GMACRFC,
(9) The placement of the Client on probation or restriction of its activities in any manner
by (a) a federal or State government agency, including Freddie Mac, Fannie Mae
or HUD, or (b) MERS, if the Client is a member of MERS,
(10) The determination by GMAC-RFC that the Clients sales and warranty obligations are
disproportionate to its capital and/or assets,
(11) The Clients failure to deliver any document required by GMAC-RFC,
(12) The Clients misstatement or omission of any material fact on any application,
certification or other document submitted to GMAC-RFC,
(13) The Clients assignment or attempt to assign its interests, rights, or obligations
under the Client Contract without prior written consent by GMAC-RFC,
(14) The occurrence of an Event of Default,
(15) The Clients failure to repurchase any Loan upon the written notification by GMACRFC,
(16) The Clients inability to meet the approval standards of any insurer or other entity
that provides insurance or other credit enhancements in connection with the efforts
of GMAC-RFC to sell the Loans or to borrow based on the collateral Value of the
Loans,
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Exhibit B-1
GMAC-RFC
2A
Page 2A.27
12/01/05
Client Guide
Representations,
Warranties and
Covenants
(17) The Client or Servicers failure to maintain a qualified Loan origination, servicing
and quality control staff, an acceptable ongoing quality control program, adequate
facilities and written policies and procedures to ensure:
The investment quality of Loans sold to GMAC-RFC
The adequacy of the servicing of Loans purchased by GMAC-RFC OR
(18) The failure of the Client or the Servicer to meet any test as may be prescribed for
eligibility,
(19) The determination by GMAC-RFC that a Client has not delivered an adequate volume
of Loans to GMAC-RFC.
A212
Indemnification
The Client shall indemnify GMAC-RFC from all losses, damages, penalties, fines, forfeitures,
court costs and reasonable attorneys fees, judgments, and any other costs, fees and
expenses resulting from any Event of Default. This includes, without limitation, liabilities
arising from (i) any act or failure to act, (ii) any breach of warranty, obligation or
representation contained in the Client Contract, (iii) any claim, demand, defense or assertion
against or involving GMAC-RFC based on or resulting from such breach, (iv) any breach of
any representation, warranty or obligation made by GMAC-RFC in reliance upon any
warranty, obligation or representation made by the Client contained in the Client Contract
and (v) any untrue statement of a material fact, omission to state a material fact, or false or
misleading information provided by the Client in information required under Regulation AB or
any successor regulation.
In addition, Client shall indemnify GMAC-RFC against any and all losses, damages, penalties,
fines, forfeitures, judgments, and any other costs, fees and expenses (including court costs
and reasonable attorneys fees) incurred by GMAC-RFC in connection with any litigation or
governmental proceeding that alleges any violation of local, State or federal law by Client, or
any of its agents, or any originator or broker in connection with the origination or servicing of
a Loan. With regard to legal fees or other expenses incurred by or on behalf of GMAC-RFC in
connection with any such litigation or governmental proceeding, Client shall reimburse
GMAC-RFC for such fees and expenses. Reimbursement shall be made directly to GMAC-RFC
within ten days of receipt of a request for payment, which request shall include copies of the
relevant invoices. Except for notices for reimbursement, GMAC-RFC is not required to give
Client notice of any litigation or governmental proceeding that may trigger indemnification
obligations. Client shall instruct its officers, directors and agents (including legal counsel) to
cooperate with GMAC-RFC in connection with the defense of any litigation or governmental
proceeding involving a Loan. GMAC-RFC has the right to control any litigation or
governmental proceeding related to a Loan, including but not limited to choosing defense
counsel and making settlement decisions.
The Client also shall indemnify GMAC-RFC and hold it harmless against all court costs,
attorneys fees and any other costs, fees and expenses incurred by GMAC-RFC in enforcing
the Client Contract. The obligations of the Client under this Section shall survive the
Delivery Date, the Funding Date (and each Substitution Date, if applicable) and the
termination of the Client Contract and the disqualification, suspension or inactivation of the
Client.
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Exhibit B-1
2A GMAC-RFC
Page 2A.28
11/21/05
Client Guide
Representations,
Warranties and
Covenants
A213
Right of Set-Off
Upon any Event of Default, GMAC-RFC may, at any time, to the fullest extent permitted by
applicable laws and without prior notice to the Client (the Client waives any right to receive
any such notice) set-off and apply all or any portion of the purchase price owed by GMACRFC to the Client with respect to any Loan, any principal, interest or other advances that
were made by the Client with respect to any Loans serviced by the Client on behalf of GMACRFC that are reimbursable under this Client Guide, and any other indebtedness at any time
owing by GMAC-RFC to the Client against any or all outstanding repurchase, indemnification,
or other obligations of any kind owing by the Client to GMAC-RFC, irrespective of whether
GMAC-RFC shall have exercised any other rights that it has or may have with respect to such
outstanding obligations.
GMAC-RFC will notify the Client promptly after any such set-off and application, provided that
the failure by GMAC-RFC to give such notice to the Client shall not affect the validity of such
set-off and application. The rights of GMAC-RFC under this Right of Set-Off Section are in
addition to any other rights and remedies including, without limitation, other rights of set-off
that GMAC-RFC may have.
A214
Merger or Consolidation of Client
Any person or entity into which the Client may be merged or consolidated, or any corporation
resulting from any merger, conversion or consolidation to which the Client shall be a party
shall be the successor of the Client under the Client Contract. This does not require the
execution or filing of any paper or any further act on the part of any of the parties to the
Client Contract.
However, the Clients successor must satisfy the GMAC-RFC Client Eligibility Standards, as
described in this Client Guide.
The Clients successor shall become fully vested with all the rights, powers, duties,
responsibilities, obligations and liabilities of the Client as if it were originally named a party to
the Client Contract.
A215
Notification of Changes in Client Status
The Client must notify GMAC-RFC in writing of any change in the Clients organization which
affects the legal structure, name or continued eligibility of the company. The notification
must include GMAC-RFC Form 1205, together with supporting information and any
additional information requested by GMAC-RFC. Such changes include mergers,
consolidations, and other items as stated under the Disqualification Suspension or
Inactivation Section of this Client Guide.
When GMAC-RFC receives this written notification, it will contact the Client if further
documentation is required. GMAC-RFC reserves the right to suspend further business with
the Client while determining the impact of the change on the Clients qualifications. Failure to
notify GMAC-RFC of any such change may result in termination, disqualification, suspension,
inactivation or other remedies available to GMAC-RFC under the Client Contract.
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Exhibit B-1
GMAC-RFC
2A
Page 2A.29
04/17/06
Client Guide
Representations,
Warranties and
Covenants
A216
Premium Recapture
(A) 12 Month Premium Recapture Period for Certain Bulk Loans
The 12 month Premium recapture requirements in this Section apply to all AlterNet Loans,
including Loans that are subsets of AlterNet (for example, AlterNet NCA), which are sold to
GMAC-RFC in bulk.
For purposes of this Section, a bulk sale means a sale where two or more Loans are
committed under the same Commitment Confirmation or Delivery Commitment Number.
These 12 month Premium recapture requirements supersede and replace any separate 12
month Premium recapture agreements that are in existence at the time of this Client Guide
update, and apply to any above-described Loan committed (if there is a Commitment) and
sold to GMAC-RFC after the date of this Client Guide update.
If any above-described Loan pays off or is liquidated (including write-offs and REO) within 12
months from its Funding Date, the Client must repay the Premium to GMAC-RFC according
to the following schedule:
Payment in full or liquidation within one (1) month of the Funding Date: 12/12ths of
the Premium
Payment in full or liquidation between one (1) and two (2) months of the Funding Date:
11/12ths of the Premium
Payment in full or liquidation between two (2) and three (3) months of the Funding
Date: 10/12ths of the Premium
Payment in full or liquidation between three (3) and four (4) months of the Funding
Date: 9/12ths of the Premium
Payment in full or liquidation between four (4) and five (5) months of the Funding
Date: 8/12ths of the Premium
Payment in full or liquidation between five (5) and six (6) months of the Funding Date:
7/12ths of the Premium
Payment in full or liquidation between six (6) and seven (7) months of the Funding
Date: 6/12ths of the Premium
Payment in full or liquidation between seven (7) and eight (8) months of the Funding
Date: 5/12ths of the Premium
Payment in full or liquidation between eight (8) and nine (9) months of the Funding
Date: 4/12ths of the Premium
Payment in full or liquidation between nine (9) and ten (10) months of the Funding
Date: 3/12ths of the Premium
Payment in full or liquidation between ten (10) and eleven (11) months of the Funding
Date: 2/12ths of the Premium
Payment in full or liquidation between eleven (11) and twelve (12) months of the
Funding Date: 1/12th of the Premium
Payment in full or liquidation later than twelve (12) months from the Funding Date: no
refund
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Exhibit B-1
2A GMAC-RFC
Page 2A.30
11/21/05
Client Guide
Representations,
Warranties and
Covenants
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Exhibit B-1
GMAC-RFC
Page 3.1
03/13/06
Client Guide
Loan Eligibility
3
Loan Eligibility
Loans sold to GMAC-RFC must conform to all requirements of this Client Guide.
Prior to originating Loans for sale to GMAC-RFC under any Loan Program, the Client must
ascertain whether the specific provisions of the Loan Program are permissible under
applicable laws and regulations. The Client must take adequate steps to verify the continued
validity of the Loan Program provisions under applicable laws and regulations. The Client
must also notify GMAC-RFC if it believes that any provision might be restricted or
impermissible under such laws or regulations.
This Loan Eligibility Chapter sets out eligibility standards that apply to all GMAC-RFC Loan
Programs. Generally, eligibility policies that vary from one standard Loan Program to another
are described in the individual Loan Program Chapters. In most cases, differences will not be
referenced in this Chapter. The 1st Lien Line of Credit Program is considered a first mortgage
unless otherwise noted.
300
Descriptions of Underlying Chapters
Chapter 3A, Occupancy, Borrower and Ownership Status
Chapter 3B, Transactions
Chapter 3C, Financing
Chapter 3D, Property Types & Considerations
Chapter 3E, Loan Documents & Notes
Chapter 3F, Insurance and Survey Requirements
Chapter 3G, Prepayment Penalties
301
Loan Seasoning
Loan seasoning varies by product. See individual product rate sheets for Loan seasoning
requirements.
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Exhibit B-1
3 GMAC-RFC
Page 3.2
03/13/06
Client Guide
Loan Eligibility
302
Required Signatures
Any individual(s) whose income or financial strength is needed to meet the GMAC-RFC credit
underwriting guidelines must sign the Note. The Borrowers name and signature must be
consistent on all Loan Documents and must correspond with the name of the Borrower as it
appears on the title insurance policy and/or Warranty Deed. The Borrower must sign all
documents in ink.
The Security Instrument must be signed by each owner of the Mortgaged Premises, as
required under applicable law. At least one individual must sign both the Note and the
Security Instrument.
Documents executed using Powers of Attorney are acceptable when the Power of Attorney
complies with applicable State law and the title insurance policy for the Loan contains an
endorsement or equivalent affirmative coverage that provides coverage for the execution of
documents using the Power of Attorney.
Once executed, delivered and recorded, the Security Instrument must create a valid first lien
on the Mortgaged Premises even if the Borrowers marital status is not indicated on, or if the
Borrowers spouse did not execute, the Security Instrument.
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GMAC-RFC
Exhibit B-1
Page 3A.1
03/13/06
Client Guide
Occupancy, Borrower &
Ownership Status
3A
Occupancy, Borrower & Ownership Status
This Chapter describes occupancy, Borrower and ownership status requirements that apply
to all GMAC-RFC Loan Programs. Generally, eligibility policies that vary from one standard
Loan Program to another are described in the individual Loan Program Chapters. In most
cases, differences will not be referenced in this Chapter.
A300
Occupancy Types
(A) Primary Residence
A primary residence is a one to four family property which is physically occupied by the
Borrower as his or her principal residence. The following criteria define residency:
(1) Borrower occupies the property as his or her principal residence
(2) Property is occupied by the Borrower for the major part of the year
(3) Property location is convenient to the Borrowers principal place of employment
(4) Property address is on record for federal income tax reporting, voter registration,
driver's license, occupational licensing, etc.
(5) Property possesses physical characteristics to accommodate the Borrowers
immediate family (physical characteristics are considered those typical to both the
owner and the neighborhood)
(B) Second/Vacation Home
A second/vacation home is a one unit property owned and occupied by the Borrower for his
or her exclusive use and enjoyment. This property must be located at a sufficient distance or
time of travel from the primary residence.
The following criteria define a second/vacation home:
(1) Property is suitable for year-round occupancy
(2) Property is for the Borrowers exclusive use and enjoyment
(3) Property is not subject to any rental pools, agreements requiring the property to be
rented
(4) Property occupancy is not controlled by a management firm
Two to four unit properties, timeshares or properties with rental agreements are not eligible
as second/vacation homes.
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Exhibit B-1
3A GMAC-RFC
Page 3A.2
03/13/06
Client Guide
Occupancy, Borrower &
Ownership Status
A301
Borrower Types
Any regard to the Borrowers race, color, religion, national origin, age, sex or marital status
must be avoided during the origination and underwriting process. For Borrowers eligibility
guidelines, see the Sections below.
(A) U.S. Citizen
A citizen of the United States or of a U.S. Possession or Territory.
(B) Non-Occupant Co-Borrower
When the Loan Program allows for a non-occupant co-Borrower, the following parameters
must be met:
Loan is for an owner occupied or second/vacation home
Loan is for Full, Lite, One Paystub, Fast or Stated Income Documentation
Non-occupant co-Borrower must provide verification of income
Non-occupant co-Borrower is a parent or legal guardian, grandparent, child, grandchild
or sibling of the occupant co-Borrower
Maximum LTV and CLTV is 90%
Maximum LTV and CLTV is 80% for non-permanent resident alien
Qualifying total debt ratio for the occupant Borrower must not exceed 50%
Occupant Borrower meets minimum credit grades A1 to A3 as defined in this Client
Guide
Down payment
For Full, Lite, One Paystub or Fast Income Documentation a minimum of 5% of the
down payment must come from the occupant Borrowers own cash. Closing costs
and down payment may come from 100% gift funds when the LTV is less than or
equal to 80% and no Secondary Financing exists.
For Stated Income Documentation the down payment amount (as determined by
CLTV requirements) must come from occupant Borrowers own cash. The balance
may be paid with cash, other equity, gift funds or Secondary Financing.
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Exhibit B-1
3A
Page 3A.3
03/13/06
Client Guide
Occupancy, Borrower &
Ownership Status
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Exhibit B-1
3A GMAC-RFC
Page 3A.4
03/13/06
Client Guide
Occupancy, Borrower &
Ownership Status
2 year history of the account in a format indicating the number of times and
duration of times past due (1x30, 0x60, 0x90)
General reference letters without the above information are not considered sufficient
documentation.
All documents must be translated into English and references to currency converted
to U.S. Dollars.
(3) Income Requirements
All income must be converted to U.S. dollars for qualifying purposes.
(4) Income Documentation Requirements
Available for Full, Lite, One Paystub, Fast and Stated Income Documentation.
(5) Assets
The sources of all funds used for down payment and reserves must be verified,
sourced, and seasoned as required for a U.S. citizen.
Assets or funds for down payment and reserves recently deposited into a U.S.
depository institution are an acceptable source of funds if there is evidence that the
funds were transferred from the country from which the Borrower permanently
resides, and the funds belonged to the Borrower before the date of transfer.
A302
Multiple Loans to One Borrower
GMAC-RFC will purchase a maximum of four Loans per Borrower. This number includes any
open Loans GMAC-RFC may have previously purchased for a particular Borrower. Within that
four-Loan limitation, the maximum aggregate dollar amount that GMAC-RFC will allow per
Borrower is as follows:
$2 million if the subject transaction is Jumbo A, Expanded Criteria, Payment Option, or
Second Mortgage Loan
$650,000 if the subject transaction is a Home Solution Loan
$1 million if the subject transaction is an AlterNet Loan
Additional Terms for Payment Option Program:
In general, GMAC-RFC permits up to four Loans per Borrower. However, if any one
Payment Option Loan is in the amount of $1.25 million or more, that Borrower may not
have any other Loans with GMAC-RFC.
Notwithstanding the $2 million maximum aggregate dollar amount limit, one Payment
Option Loan per Borrower may be in an amount up to $6 million, so long as that
Borrower does not have any other Loans with GMAC-RFC.
These dollar amounts include the outstanding principal balance of any open Loans GMAC-RFC
may have previously purchased for a particular Borrower. This policy applies whether the
Loans are sold to GMAC-RFC by the same Client or by different Clients. Joint ownership is
considered the same as total ownership of an individual, regardless of type or amount of
property and will count as one Loan for purposes of this limitation.
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GMAC-RFC
Exhibit B-1
3A
Page 3A.5
03/13/06
Client Guide
Occupancy, Borrower &
Ownership Status
A303
Ownership Interests
(A) Title Vesting
The types of Title Vesting are:
(1) Individual
Individual vesting is an individual Borrower taking sole-ownership (title) to a
property.
(2) Joint Tenants
Joint tenants is a form of co-ownership giving each tenant equal interest and equal
rights in a property, including the right of survivorship.
(3) Tenants in Common
Tenants in common is a form of individual ownership interest by two or more persons
that provides for no right of survivorship. The interest need not be of equal
percentage.
(4) Life Estates
Life estates are not allowed.
A Life Estate is an interest in real estate that is limited to the duration of the life of
the party holding the interest.
(5) Living Trusts
GMAC-RFC will purchase Loans made to individuals that are secured by residential
real estate owned by a revocable inter vivos trust (a living trust).
Living Trust Loans must meet all GMAC-RFC Loan eligibility requirements listed in
this Client Guide, as well as either Fannie Maes standard published requirements
for inter vivos revocable trusts (as in effect on their respective Funding Dates) or
the following specific requirements:
(a) Eligibility Requirements
The Borrowers must be the individuals who established the trust (the
settlors)
The primary beneficiary of the trust must be the settlor. If the trust is
established jointly by more than one individual, there may be more than
one primary beneficiary, as long as the income or assets of at least one of
the individuals establishing the trust will be used to qualify for the
mortgage and that individual will occupy the security property and sign the
mortgage instruments.
The trustee or one of the co-trustees must be either:
The settlor of the trust; or
A financial institution that is authorized to act as a trustee under the
laws of the relevant State and is regulated and supervised by the FDIC,
the Office of the Comptroller of the Currency (OCC), the Office of Thrift
Supervision (OTS), or the Federal Reserve Board (FRB).
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Exhibit B-1
3A GMAC-RFC
Page 3A.6
03/13/06
Client Guide
Occupancy, Borrower &
Ownership Status
Title to the property may be vested solely in the trustees on behalf of the
trust or jointly in the trustee(s) and in the name(s) of an individual
Borrower or in the trustees of more than one revocable living trust.
The title insurance policy may not list any exceptions arising from the trust
ownership of the property.
(b) Trust Agreement Requirements
The Client must retain in the Loan file either:
A complete copy of the trust agreement; or
In States that require a lender to rely on a summary or certification of
the trust agreement, a copy of the summary or certification.
GMAC-RFC does not need a copy of the trust agreement or the summary or
certification of the trust agreement, if applicable.
The Client must review the trust agreement, or the summary or certification
of the trust agreement if applicable, to ensure that the living trust meets
the following requirements:
The trust is established by a written document during the lifetime of the
individual establishing the trust, to be effective during his or her
lifetime.
The settlor has reserved the right to revoke or alter the trust during his
or her lifetime.
The trustees have the power to borrow money and to mortgage the
security property.
The consent of the beneficiaries is not required for the trust to borrow
money. If such consent is required, it must be granted in writing for
purposes of the transaction.
There are no unusual risks or impairments of lenders rights.
The trust is valid under applicable State law.
(c) Loan Documents
The Loan Documents must be executed as follows:
The Note must be executed by the Borrowers in their individual capacity
and by the trustees on behalf of the trust.
The Security Instrument, rider and addenda must be executed by the
trustees on behalf of the trust. If a trustee is also a Borrower, he or she
must execute the Security Instrument as both an individual and as a
trustee.
See the Signature and Acknowledgement Form for Living Trusts (GMACRFC Form 1305) for information regarding signature and acknowledgment
forms for living trusts.
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GMAC-RFC
Exhibit B-1
3A
Page 3A.7
03/13/06
Client Guide
Occupancy, Borrower &
Ownership Status
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Exhibit B-1
3A GMAC-RFC
Page 3A.8
03/13/06
Client Guide
Occupancy, Borrower &
Ownership Status
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Exhibit B-1
GMAC-RFC
Page 3B.1
03/13/06
Client Guide
Transactions
3B
Transactions
This Chapter describes the various transaction requirements that apply to all GMAC-RFC Loan
Programs. Generally, eligibility policies that vary from one standard Loan Program to another
are described in the individual Loan Program Chapters. In most cases, differences will not be
referenced in this Chapter.
B300
Arms Length and Non-Arms Length Transactions
(A) Arms Length Transaction
An arms length transaction occurs when the parties involved are entirely independent of one
another. That is, all parties deal with one another as strangers and have no reason to collude.
(B) Non-Arms Length Transaction
If a direct relationship exists between any of the parties to a transaction, including the
Borrower (buyer), Client (if applicable), employer, lender, broker or appraiser the transaction
will be considered non-arms length. Vertically integrated companies with common ownership
(i.e., broker, appraiser, lender, title company, etc.) are considered non-arms length. In some
cases, non-arms length transactions may be acceptable, such as when a parent sells a house
to a child or when a relative inherits a home. In this case, the Value must be fully and
sufficiently documented. However, in most cases non-arms length transactions are not
allowed.
Additionally, in purchase transactions where the seller is a corporation, partnership or any
other business entity, the Client must ensure that the Borrower is not an owner of the
business entity selling the subject property.
B301
Transaction Types
GMAC-RFC will accept Loans made for the purposes defined in this Section, except as
restricted in Chapter 6, Loan Programs.
Purchase Mortgages
Rate/Term Refinance Mortgages
Cash-Out Refinance Mortgages
Construction/Permanent Mortgages
Contract for Deed/Land Contracts
Lease With Option to Purchase Transactions
Converted/Modified LoansContemplated by Original Note
Converted/Modified LoansNot Contemplated by Original Note
Second Mortgage Transactions
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Exhibit B-1
3B GMAC-RFC
Page 3B.2
03/13/06
Client Guide
Transactions
Calculated from the Note date when the Seller purchased the property, to the date of the signed purchase contract
for the subject transaction.
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Exhibit B-1
GMAC-RFC
3B
Page 3B.3
03/13/06
Client Guide
Transactions
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Exhibit B-1
3B GMAC-RFC
Page 3B.4
03/13/06
Client Guide
Transactions
Junior liens (such as a second trust deed or home equity line of credit) may be paid off
from the proceeds of the rate/term refinance mortgage Loan, provided they were:
Incurred in the purchase of the Mortgaged Premises or for documented home
improvements
Incurred for any other purpose and were incurred at least 12 months prior to the
date of the Loan
Any other junior lien is considered cash equity and must be subordinated to the new
rate/term refinance Loan, paid off from the Borrowers other funds or treated as a
cash-out refinance transaction.
(C) Cash-Out Refinance Mortgages
Funds distributed (resulting) from Cash-Out Refinance Mortgage Loans may be used for
purposes such as:
Reasonable and customary closing cost or fees (including prepaid items) within
limitations imposed by applicable laws
Debt consolidation
Cash back over and above incidental amount allowed greater of $2,000 or 1% of the
Loan amount
Pay off of non-seasoned (less than 12 months) closed-end subordinate mortgages
Pay off of lines of credit with cash advances in excess of 1% of the new Loan amount or
$2,000 whichever is greater within the past 12 months
Pay off of Federal and State tax liens
GMAC-RFC does not allow removal of equity for a Borrowers business.
(D) Construction/Permanent Mortgages
A construction-to-permanent mortgage Loan is a Loan obtained to pay off an interim (shortterm) Loan, used to finance the construction of the subject property. One-time closing
construction-to-permanent mortgages are not permitted.
(1) Arms Length Transaction
When paying off an interim construction Loan represented by an arms length
transaction, Client must treat the Loan using one of the following three methods:
(a) Purchase
When the Borrower wishes to recapture funds paid out of pocket and to pay off
an existing construction Loan, the Loan will be treated as a purchase transaction
and documentation evidencing the acquisition cost of the property will be
required.
(b) Rate/Term Refinance
When the Borrower does not require cash recapture and the proceeds from the
subject Loan are being used to pay off the construction financing and allowable
closing costs, the Loan will be treated as a rate/term refinance.
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Exhibit B-1
3B
GMAC-RFC
Page 3B.5
03/13/06
Client Guide
Transactions
Ownership
Seasoning
LTV
Determination
Recorded
12 months
or more1
Recorded
Unrecorded
Pay History
Documentation
Cash-Out
Allowed
Additional Restrictions
Appraised
Value
Yes
N/A
Less than
12
months2
Lower of
appraised
Value or
purchase price
No
N/A
Regardless
of
seasoning
Lower of
appraised
Value or
purchase price
No
Must be recorded or sent to the county for recording at least 12 months prior to Note date. If not, treat as
unrecorded
2
Must be recorded or sent to the county for recording at the time the contract was signed. If not, treat as unrecorded
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Exhibit B-1
3B GMAC-RFC
Page 3B.6
03/13/06
Client Guide
Transactions
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Exhibit B-1
GMAC-RFC
3B
Page 3B.7
03/13/06
Client Guide
Transactions
Loans for which the original Note and/or Security Instrument provides for a
conversion or modification must be underwritten according to the underwriting
criteria in the Chapter with the following additional requirements:
(a) Generally, the Client is not required to provide updated Credit Documents. The
Client must, however, provide a payment history for the Loan covering a
minimum of 12 months preceding the date the Loan is submitted for purchase or
for underwriting approval. The Borrower may not have had a late payment of 30
days or worse since the inception of the Loan or in the previous 12 months if the
Loan has been seasoned more than 12 months.
(b) In addition to the required payment histories, the Client must provide new credit
documentation if the interest rate of the converted or modified Loan exceeds the
interest rate in effect at any time within the 12 months prior to conversion by
more than 200 basis points.
(c) The Client is not required to provide a new appraisal or a recertification of Value
but the Client represents and warrants to GMAC-RFC that the current market
Value of the Mortgaged Premises is at least equal to the appraised Value on
the original appraisal.
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3B GMAC-RFC
Page 3B.8
03/13/06
Client Guide
Transactions
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3B
Page 3B.9
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Client Guide
Transactions
(a) Generally, the Client is not required to provide updated Credit Documents.
However, the Client must provide a payment history for the Loan covering a
minimum of 12 months preceding the date the Loan is submitted for purchase or
for underwriting approval. The Borrower may not have had a late payment of 30
or worse days since the inception of the Loan or in the previous 12 months if the
Loan has been seasoned more than 12 months.
(b) In addition to the required payment histories, the Client must provide new credit
documentation if the interest rate of the converted or modified Loan exceeds the
interest rate in effect at any time within the 12 months prior to conversion by
more than 200 basis points.
(c) The Client is not required to provide a new appraisal or a recertification of Value
but the Client represents and warrants to GMAC-RFC, and shall be deemed to
have represented and warranted to GMAC-RFC, that the current market Value of
the Mortgaged Premises is at least equal to the appraised Value on the
original appraisal.
(d) As of the time the Loan is to be converted or modified, no funds in addition to
those advanced at the time of the Loan origination shall have been advanced.
If the modification agreement is executed by individual(s) different than those who
executed the original Note, the Client must provide documentation that
substantiates the ability of the individual(s) executing the modification agreement to
repay the Loan.
The LTV ratio will be calculated using the balance at conversion or modification as
the original principal balance.
(2) Legal Documentation
In addition to the Legal Documents required in the Delivery For Funding and the
Required Final Documents Sections of this Client Guide, Clients must submit one of
the following additional Legal Documents as applicable:
Fannie Mae Form 3179 - Loan Modification Agreement (providing for
modification to a Fixed Interest Rate)
GMAC-RFC Form 16A02 - Loan Modification Agreement with Exhibits A and B
attached (providing for modification to a Fixed or an Adjustable Interest Rate).
Exhibit A is a standard Fannie Mae/Freddie Mac Note and Exhibit B is a
standard Fannie Mae/Freddie Mac Security Instrument. Attaching these
Exhibits will enable mortgages originated on Non-Standard Documents to
become standardized for sale into the secondary markets.
An original replacement Note evidencing the terms of the Loan, as modified.
Note: Please contact your Acquisition Team representative in Minneapolis for
instruction on how to complete the GMAC-RFC modification form(s) or to obtain prior
written approval for use of an alternative modification form.
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3B GMAC-RFC
Page 3B.10
03/13/06
Client Guide
Transactions
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Exhibit B-1
Page 3C.1
03/13/06
Client Guide
Financing
3C
Financing
This Chapter describes the financing requirements that apply to all GMAC-RFC Loan
Programs. Generally, eligibility policies that vary from one standard Loan Program to another
are described in the individual Loan Program Chapters. In most cases, differences will not be
referenced in this Chapter.
C300
Determining Amount to Be Financed
For any Loan, the amount which may be financed is determined by factors specific to that
Loan, including the type of financing and the Loan-to-Value ratio, as well as the Loan
amount, property type and income determination.
C301
Calculating Loan-to-Value Ratios
(A) Calculating LTV
To calculate the LTV divide the Loan amount by the Value of the Mortgaged Premises.
(B) Determination of Value
The method to determine Value of the Mortgaged Premises for purposes of LTV calculation
varies depending on the transaction type.
(1) First Mortgage Transaction Value
(a) Purchase Mortgage
The Value is determined by the lesser of the appraised Value or the purchase
price as stated on the executed purchase agreement or HUD-1.
(b) Rate/Term Refinance Mortgage
The Value is determined by the appraised Value.
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Exhibit B-1
3C GMAC-RFC
Page 3C.2
03/13/06
Client Guide
Financing
Determine the Value of the lot for establishing LTV/CLTV by one of the following:
If the lot was purchased within the past 12 months, the lesser of the appraised Value of the lot
or the purchase price of the lot is used
If the lot was purchased more than 12 months ago, the appraised Value of the lot is used
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Exhibit B-1
GMAC-RFC
3C
Page 3C.3
03/13/06
Client Guide
Financing
If both an appraisal and an AVM Value are present in a Loan file, GMAC-RFC will use the appraisal to determine
Value.
2
GMAC-RFC does not accept AVMs when the Client has input Property Data (other than the property address) or
has altered or changed the AVM in any way from the original product supplied from the vendor.
3 If a Qualified AVM, an appraisal and/or AVM are present in the Loan file, GMAC-RFC will use the Qualified AVM
to determine Value.
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Exhibit B-1
3C GMAC-RFC
Page 3C.4
03/13/06
Client Guide
Financing
C302
Secondary or Subordinate Financing
GMAC-RFC will permit subordinate or Secondary Financing, including home equity lines of
credit, under Loan Programs that permit their use, as long as the following minimum
criteria have been met:
(1) The combined LTV (CLTV) may not exceed the program maximum. The CLTV is
calculated by adding the principal balance of the first mortgage with the current
principal balance of subordinated closed-end second liens and the maximum
available credit line of subordinated open-end second liens and then dividing the
sum by the appraised Value of the subject property.
(2) The secondary or subordinate financing must have a minimum remaining term of no
less than five years, unless the financing fully amortizes prior to that time.
(3) The financing must not permit the Note holder to call the financing within the first
five years after the Loan closing.
(4) The secondary or subordinate financing must not have a negative amortization
feature.
(5) The Client must include the monthly payments on the secondary or subordinate
financing when it calculates the Borrowers housing and debt ratios.
(6) Payments may be graduated or variable, as long as:
The total amount of secondary or subordinate financing fully amortizes during its
term
The combined annual payment adjustments of the Loan and the secondary or
subordinate financing does not exceed the lesser of a 2% interest rate increase or
an 8.5% payment increase
When secondary or subordinate financing is a home equity line of credit, the Client must
meet the following additional criteria:
(1) The property being financed must be owner occupied or a second/vacation home.
(2) The calculation of the CLTV must include the total usable home equity line of credit.
(3) For qualification purposes, the monthly housing payment is calculated as follows:
For an existing subordinate lien, if the current balance is zero and no draws will be
used for the new transaction, a minimum payment need not be included in the
qualifying ratio. If a balance appears on the line of credit or an advance will be part
of the new transaction, calculate the housing payment by multiplying the total
usable line of credit by the interest rate in effect at the time the Loan application is
underwritten
For a simultaneous home equity line of credit (originated with a new first
mortgage) calculate the housing payment by multiplying the total usable line of
credit by 1.00%
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Exhibit B-1
GMAC-RFC
3C
Page 3C.5
03/13/06
Client Guide
Financing
C303
Sales Concessions or Home-seller Subsidy
Any costs that are normally the Borrowers responsibility are considered sales concessions if
the home-seller pays them.
Sales concessions may include either:
Payments in any form that are related to the financing (e.g., discount points,
Commitment fees, appraisal fees, origination fees, interest shortfall, etc.)
The portion of the costs of any other items related to the transaction that are
traditionally paid by the Borrower (e.g., transfer taxes, stamps, attorneys' fees,
surveys, title insurance, fees for the use of a real estate tax service, etc.)
For underwriting purposes, the Client must reduce the Mortgaged Premises sales price to
reflect the amount of any concessions or contributions that exceed the maximum allowed.
The Client must then calculate the maximum LTV ratio, using the lesser of the reduced sale
price or appraised Value. The cost of any sales concessions in the form of furniture, decorator
allowances, moving costs or other giveaways must always be deducted from the Mortgaged
Premises sale price. Note that the appraisal must reflect the effect any subsidies,
contributions or sales concessions have on the market Value of the Mortgaged Premises.
C304
Escrow Issues
The Client must conform to the following escrow requirements:
(A) Escrow/Impounds
(1) First Mortgage Programs (excluding the 1st Lien Line of Credit Program)
Interest on Escrow/Impound must be paid to the Borrower if required by
applicable law or regulation.
(a) Waiver
The Client may waive the Escrow/Impounds to conform with its policy and
procedures. Even if the Client waives this requirement, the standard Escrow/
Impound provision must remain in the Loan Documents.
(b) Establishment of Account
When Escrow/Impounds are established, all amounts required by the Client
must be paid from the Borrowers cash or other equity at closing. These
amounts may include prepaid real estate taxes and hazard and mortgage
insurance.
(c) Mortgage Insurance
In all cases, the Client must establish an Escrow/Impound account for the
payment of private mortgage insurance, if applicable, unless a single premium
was paid in full at closing or unless the Client obtained lender-paid mortgage
insurance.
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3C GMAC-RFC
Page 3C.6
03/13/06
Client Guide
Financing
(2) Second Mortgage Programs and the 1st Lien Line of Credit Program
An escrow of funds for the payment of property taxes or hazard insurance premiums
is not required, but for second mortgage programs the Client may require such
escrows on the first mortgage in conformance with its policies and procedures, or
those of an underlying first mortgage investor.
(B) Escrow for Postponed Improvements
The Client may establish an escrow account for a postponed improvement or repair for the
following reasons only:
Current weather conditions prohibit completion of an exterior improvement or repair or
Improvement or repair is minor in nature, and the Clients policy allows escrow in such
circumstances
An improvement or repair is not considered minor if:
It affects the structural integrity or health and safety of the occupants of the dwelling
located on the Mortgaged Premises
The Mortgaged Premises was appraised subject to a repair or
The appraised Value of the Mortgaged Premises was done on an after-improved basis
If the Client doesnt plan to establish an escrow account, the appraiser must delete the Value
of the improvement or repair from the appraised Value. The Client must then use the
adjusted Value to calculate the LTV ratio.
If the Client establishes an escrow account for a Loan for which servicing is sold to GMACRFC, the Client must monitor the account until the repairs or improvements are completed.
For more information see Chapter 8, Servicing Released.
(1) Amount and Time for Completion
The escrow amount must be at least one and a half times the estimated cost of the
improvement or repair as noted on the appraisal. The improvement or repair must
be completed, and funds released, within 90 days if the escrow is for a minor,
interior improvement or repair. If the escrow is for an exterior, weather-related
improvement or repair, the Client must complete and release within six months.
(2) Documentation
The Client must use an escrow agreement when establishing an account for
improvement or repair. The Client must monitor funds in the account.
(3) Clients Agreement
If the Client establishes an escrow for completion of an improvement or repair, it
agrees that the work will be completed within the time periods stated above and in a
workman-like manner, regardless of any actions of the home-seller, the Borrower or
any other party to the transaction.
(4) Release of Escrow Funds
The escrow funds may be released when the work has been inspected and certified
by the original appraiser. The Client may certify the completion if GMAC-RFC required
the work and if it determined that the Clients certification is sufficient. The Client
must ensure that lien waivers for all work have been provided.
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Exhibit B-1
GMAC-RFC
3C
Page 3C.7
03/13/06
Client Guide
Financing
C305
Temporary Buydowns
GMAC-RFC may purchase Loans containing temporary interest rate buydowns when allowed
by the Loan Program and product type.
(A) Buydown Agreement Terms
Each buydown agreement must include terms stating that:
(1) Funds delivered under the agreement and deposited on the Borrowers behalf with a
depository, and any earnings from these funds, must be held in an account in the
Clients name, as an agent on behalf of the Borrower. The account must conform to
the Custodial Accounts for Principal and Interest Payments and Escrow/Impound
Accounts Section of the Servicer Guide.
(2) Funds delivered under the buydown agreement must equal or exceed the total
payments to be made from such funds or these funds, if present Valued, must equal
or exceed the present Value of the total payments discounted at a rate of 4.5% per
annum for the first year, 4% per annum for the second year and 3% per annum for
the third year. In each case, the totals are compounded monthly.
(3) The Borrower must own the buydown funds and all its earnings, subject only to the
buydown agreement and the security interest described below.
(4) The Borrower may not withdraw any of the buydown funds from the account prior to
the buydown period's termination UNLESS the Loan is fully prepaid. In this case, any
remaining funds will be returned to the Borrower unless the funds were deposited by
the Client or its assigns. In that case, any remaining funds will be returned to the
Client or its assigns.
(5) The Borrower is not relieved of liability under the Note if the buydown funds are
delivered to the Client. The buydown agreement does not amend the Note.
(6) The Note holder has an express security interest in the buydown funds and is
authorized to perfect its security interest at any time.
(7) If the Borrower defaults, the Note holder has all the rights of a secured party under
the law of the State, where the Mortgaged Premises are located. Once the Loan is
foreclosed, the Note holder may take possession of and apply the buydown funds to
satisfy all or a portion of the Loans unpaid principal balance and accrued interest.
This may be done without the Borrowers consent.
For each Loan with a Temporary Buydown, the Client must submit a Temporary Buydown
Schedule (recommended Form GMAC-RFC Form 1301). In place of GMAC-RFC Form 1301,
Clients may submit their own Temporary Buydown Schedule. The buydown agreement may
be submitted only if accompanied by the Temporary Buydown Schedule. This submission
does not diminish the Clients responsibility to comply with the terms of this Temporary
Buydowns Section.
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Exhibit B-1
3C GMAC-RFC
Page 3C.8
03/13/06
Client Guide
Financing
C306
West Virginia Loans
The following criteria and/or features are not permitted on Loans secured by property located
in West Virginia:
DTI greater than 50%
Loans where income is not verified (for example Loans with the following
documentation types: Stated Income, Stated Income/Stated Asset, No Ratio, No
Income/No Asset, and No Doc)
Balloon payments
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Exhibit B-1
GMAC-RFC
3C
Page 3C.9
03/13/06
Client Guide
Financing
C307
Texas Equity Loans
Loans secured by a first mortgage on homestead property in Texas that comply with Article
XVI, Section 50(a)(6) and 50 (g) of the Texas Constitution (Texas Equity Loans) are eligible
for purchase by GMAC-RFC. Second mortgage and Payment Option Texas Equity Loans are
not eligible for purchase. The Texas Equity Loan first mortgage may be the only outstanding
Texas Equity Loan that is secured by the homestead property and at least 12 months must
have elapsed since any previous Texas Equity Loan secured by the homestead property was
closed.
The proceeds from a Texas Equity Loan first mortgage must not be used to acquire or
improve the homestead if a mortgage for that purpose could have been made under
authority of Article XVI, Sections 50(a)(1) through (5) of the Texas Constitution.
The following two types of first mortgage Loans secured by the Borrowers homestead are
Texas Equity Loans and must meet the requirements of Article XVI, Section 50 (a)(6) and
50(g) of the Texas Constitution.
A first mortgage rate/term refinance originated to pay-off an existing Texas Equity
Loan regardless of whether the Borrower receives any cash out of the refinance
proceeds. This is the once a Texas Equity Loan always a Texas Equity Loan rule.
Once a Borrower obtains a first or second lien Texas Equity Loan, any subsequent
refinancing of the homestead property is considered a Texas Equity Loan subject to all
the requirements of Section 50(a)(6) of the Texas Constitution if any of the proceeds
are used to pay off the existing Texas Equity Loan even if the Borrower does not
receive any cash from the transaction.
A first mortgage cash-out refinance or rate/term refinance if the Borrower receives any
amount of cash at closing. Reasonable closing costs may be included in the Loan
amount, but any cash back to the Borrower makes the transaction a Texas Equity
Loan.
Article XVI, Section 50(e) of the Texas Constitution provides that if a refinance Loan secured
by homestead property includes the advance of more money than is necessary to pay off the
existing debt, the lien is not valid unless (i) the Loan is treated as a Texas Equity Loan (ii) the
additional funds are for reasonable costs necessary to refinance the debt being paid off, or
(iii) the additional funds are for another purpose authorized by the Constitution.
All other requirements contained in this Client Guide, including the requirements in the Loan
Programs Chapters of the Client Guide apply to Texas Equity Loans unless limited by the
Texas Constitution or the requirements in this Texas Equity Loans Section.
(A) Occupancy
Eligible occupancy types:
Primary residence, owner occupied
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Exhibit B-1
3C GMAC-RFC
Page 3C.10
03/13/06
Client Guide
Financing
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Exhibit B-1
3C
GMAC-RFC
Page 3C.11
03/13/06
Client Guide
Financing
Security Instrument
3044.1
Fixed-Rate Note
3244.1
PUD Rider
3150.44
Condominium Rider
3140.44
See Chapter 5, Loan Products, for required Legal Documents for all ARM products. The
Fannie Mae/Freddie Mac ARM Notes and Riders specified in Chapter 5, Loan Products,
must be modified to include the exact language included on Fannie Mae/Freddie Mac Texas
Home Equity Fixed/Adjustable Rate Note (Form 3522.44) and Texas Home Equity Fixed/
Adjustable Rate Rider (Form 3182.44) that Fannie Mae and Freddie Mac added to address
legal issues related to Texas Home Equity Loans. ARM Notes and Riders may not be
assumable at any time over the full term of the mortgage. ARM Notes and Riders must be
modified to eliminate any assumability clauses on the Fannie Mae/Freddie Mac Multistate
ARM Notes and Riders.
The Fannie Mae/Freddie Mac Multi-state 1-4 Family Rider (Form 3170) is prohibited and must
not be attached to the Security Instrument on two to four unit single-family properties.
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Exhibit B-1
3C GMAC-RFC
Page 3C.12
03/13/06
Client Guide
Financing
C308
Current Payment History
All Loans must be current at the time the Client submits them for purchase. The payment
due the month of Loan purchase must be applied. For newly originated Loans, the first
payment must be applied prior to purchase if it is due during the month of purchase.
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GMAC-RFC
Exhibit B-1
Page 3D.1
03/13/06
Client Guide
Property Types &
Considerations
3D
Property Types & Considerations
This Chapter describes property types and property considerations that apply to all GMACRFC Loan Programs. Generally, eligibility policies that vary from one standard Loan Program
to another are described in the individual Loan Program Chapters. In most cases, differences
will not be referenced in this Chapter.
D300
Property Issues
Loans must conform to the property definitions and requirements contained in this Chapter.
Properties that have been listed for sale within the last 6 months are not eligible for
purchase.
D301
Eligible Property Types
(A) Single-family Residence
An attached or detached single-family dwelling.
All attached units that are not covered by a blanket hazard insurance policy or subject to a
homeowners association (HOA) must have a recorded shared Party Wall agreement that
runs with the property. The agreement must evidence that the respective property owners
have agreed to maintain adequate insurance for the attached units, as well as address any
issues that may arise from maintaining and sharing common areas and elements.
(B) Multi-family
A type of residential structure with more than one dwelling unit. Multi-family dwellings with
more than four units are not eligible.
(C) Townhouse/Row House
An attached, single-family dwelling which is not part of an association.
All attached units that are not covered by a blanket hazard insurance policy or subject to a
homeowners association (HOA) must have a recorded shared Party Wall agreement that
runs with the property. The agreement must evidence that the respective property owners
have agreed to maintain adequate insurance for the attached units, as well as address any
issues that may arise from maintaining and sharing common areas and elements.
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3D GMAC-RFC
Page 3D.2
03/13/06
Client Guide
Property Types &
Considerations
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Exhibit B-1
GMAC-RFC
3D
Page 3D.3
03/13/06
Client Guide
Property Types &
Considerations
Condominium projects that contain less than ten units may be eligible for purchase as long
as they meet the criteria for small condominium projects. See Condominium Warranties
for GMAC-RFC Small Condominium Projects (projects with less than ten units)
Section in this chapter for more information.
GMAC-RFC reserves the right to limit the number and/or aggregate dollar amount of Loans
purchased in any one subdivision, condominium or PUD project or to declare Loans in any
project ineligible for purchase.
At times a condominium development has commercial space (e.g., first floor restaurant, deli,
hair salon, grocery store, etc.). If this is the case, there must be no more than 20%
commercial space in the building.
Condominium projects with pending litigation are typically not eligible, however nonstructural litigation may be considered on a case-by-case basis. Seller must represent and
warrant that litigation has no adverse effect on the marketability or livability of the project or
subject phase and that the homeowners association (HOA) has sufficient reserves or
insurance to cover the minor litigation in question. An acceptable letter from the
homeowners associations legal council is the recommended form of documentation.
(G) Non-Warrantable Condominiums
Non-warrantable condominiums are condominium projects that have not complied with
condominium warranties in this Client Guide for minimum pre-sale requirements or
maximum investor concentrations.
When submitting a Loan secured by a non-warrantable condominium, the Client must
complete the Condominium Warranty Certification (GMAC-RFC Form 1303).
Clients must ensure the project complies with additional requirements of GMAC-RFC,
including the form and amount of insurance required as stated in the Condominium
Requirements Section of this Client Guide.
In addition, the project must not be an ineligible property type as defined in the Loan
Program Chapter and must satisfy the following guidelines:
Minimum pre-sale requirement for each project or subject legal phase is 33%
50% of all units, common areas and facilities within the project or subject legal phase
must be completed
Investors must own no more than 70% of the units sold within the project, with no one
entity owning more than 10% of the project (other than the developer)
LTV exceptions are not allowed
GMAC-RFCs condominium project exposure limit is 20% of the total number of units in
the project
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Exhibit B-1
3D GMAC-RFC
Page 3D.4
03/13/06
Client Guide
Property Types &
Considerations
(H) Condo-Hotels
Condo-Hotel (or condotels) are a project that has rental or registration desks, short-term
occupancy, food and telephone services and daily cleaning services. It is operated as a
commercial hotel even though the units are individually owned.
When submitting a Loan secured by a Condo-Hotel, the Client must complete the
Condominium Warranty Certification (GMAC-RFC Form 1303).
All Condo-Hotels, regardless of intended occupancy status, will be priced and underwritten to
investment property guidelines:
All occupancy types are available
See Program At-A-Glances, Chapter 7 for maximum financing allowed
Secondary Financing is not allowed
Voluntary rentals are acceptable
Mandatory rental pools are NOT acceptable
Income from rental of the property will NOT be used to qualify the Borrower
20% maximum of the total area (square footage) within the project may be devoted to
commercial usage
The Borrower must sign a second home Rider, if applicable
GMAC-RFCs Condo-Hotel project exposure limit is 20% of the total number of units in
the project
The appraiser must specifically comment in his or her report that Condo-Hotels are
common to the area, that resale marketing time is strong (i.e., not over six months),
and that the market supports strong rental activity
The Condo-Hotel must have been operating a minimum of two years
75% of the units must be sold and closed
Units located in a building over eight stories is acceptable but must be supported by
the appraiser as common to the area
Cash out is not available on this property type
Minimum square footage of the unit is 600 square feet
(I) Site Condominiums
A condominium project consisting of one-unit, detached dwellings.
(J) Mixed Use Properties
GMAC-RFC defines mixed use properties as those which are primarily used as a residence but
are also being used for a small commercial purpose. These properties are eligible only in the
AlterNet Program. Certain criteria must be met, see Mixed Use Properties Section in
Chapter 6E, AlterNet Loan Program for more information.
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Exhibit B-1
GMAC-RFC
3D
Page 3D.5
03/13/06
Client Guide
Property Types &
Considerations
D302
Ineligible Property Types
Condominium project with pending structural litigation (See Condominium Unit
Located in a Building in this chapter)
Cooperative
Manufactured Home
Mobile Home
Multi-family dwelling containing more than four units
Planned Unit Development (PUD) project with pending structural litigation (See
Planned Unit Development (PUD) in this chapter)
Property listed for sale in the last six months is not eligible for refinance transactions
Property without full utilities installed to meet all local health and safety standards
including:
Continuing supply of potable water
Public sewer or certified septic system
Public electricity
Natural or LP gas
Property zoned and used for commercial or industrial purposes
Tax-sheltered syndicate
Timeshare units/projects
Unimproved land
Working farm, ranch or orchard
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Exhibit B-1
3D GMAC-RFC
Page 3D.6
03/13/06
Client Guide
Property Types &
Considerations
D303
Project Requirements for Warrantable Condominiums and PUDs
GMAC-RFC will purchase investment quality Loans in condominium and PUD projects, relying
primarily on the Clients warranties. GMAC-RFC may limit the number and/or aggregate
dollar amount of Loans purchased in any one subdivision, condominium or PUD project or
may declare Loans in any project ineligible for purchase.
High rise condominiums (greater than 8 stories) are acceptable in areas with proven
marketability. At least two comparable properties must be from two competing projects.
The Client must ensure that all condominiums and PUD properties comply with the
requirements and warranties set forth in this Section. A condominium unit located within a
PUD must comply with both the condominium and PUD warranties. GMAC-RFC reserves the
right to:
Determine whether a particular Mortgaged Premises is a condominium or PUD
Require the Client to submit, at the Clients expense, an opinion of competent legal
counsel, in form and substance, satisfactory to GMAC-RFC and all supporting data that
supports the Clients condominium and PUD warranties
Fulfillment of these project requirements does not release the Client from the responsibility
of ensuring the project complies with additional requirements of GMAC-RFC.
(A) PUD Warranties
The Client must make the following warranties for each Mortgage secured by a PUD unit:
The property meets the definition of a PUD as described above
All property insurance requirements, as outlined in this Client Guide, have been met
One entity does not own more than 10% of the subject project (applies only to
attached PUDs)
(B) Condominium Classifications
Condominium projects are divided into four categories:
(1) GMAC-RFC Class I (Freddie Mac Class I, Fannie Mae Type C)
(2) GMAC-RFC Class II (Freddie Mac Class II, Fannie Mae Type B), including condo
conversions.
(3) GMAC-RFC Class III (Freddie Mac Class III, Fannie Mae Type A)
(4) Small condominium project (a project less than ten units)
All condominium projects must have been created and exist in full compliance with all State
and local statutes where the project is located and all other applicable laws.
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Exhibit B-1
GMAC-RFC
3D
Page 3D.7
03/13/06
Client Guide
Property Types &
Considerations
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Exhibit B-1
3D GMAC-RFC
Page 3D.8
03/13/06
Client Guide
Property Types &
Considerations
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Exhibit B-1
GMAC-RFC
3D
Page 3D.9
03/13/06
Client Guide
Property Types &
Considerations
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Exhibit B-1
3D GMAC-RFC
Page 3D.10
03/13/06
Client Guide
Property Types &
Considerations
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Exhibit B-1
3D
GMAC-RFC
Page 3D.11
03/13/06
Client Guide
Property Types &
Considerations
No one entity may own more than one unit in a small condominium project.
(b) Presale
Any project with more than four units must have 70% of the units sold or legally
obligated to close.
(c) Insurance
Insurance has been obtained in such forms and amounts as required by the
Condominium Insurance Section in Chapter 3F, Insurance and Survey
Requirements of this Client Guide.
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Exhibit B-1
3D GMAC-RFC
Page 3D.12
03/13/06
Client Guide
Property Types &
Considerations
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GMAC-RFC
Exhibit B-1
3D
Page 3D.13
03/13/06
Client Guide
Property Types &
Considerations
Under the limited project review, condominium mortgages that meet the above
requirements must comply with all of the representations and warranties found in
Chapter 2A and all of the following warranties, regardless of the class of
condominium project to which the provision specifically applies:
The condominium project has been created and exists in full compliance with
all State and local statues where the project is located and all other applicable
laws
Any first mortgagee who obtains title to a condominium unit pursuant to the
remedies in the mortgage or through foreclosure will not be liable for more
than six months of the units unpaid regular budgeted dues or charges accrued
before the acquisition of the title to the unit by the mortgagee. If the
homeowners association (HOA)s lien priority includes costs of collecting unpaid
dues, the Client will be liable for any fees or costs related to this collection
All taxes and assessments and charges that may become liens prior to the first
mortgage under State and local law relate only to the individual unit and not
the project as a whole
If the project is on a Leasehold estate, the condominium unit lease is a lease
or sublease of the fee, and provisions of the lease comply with the
requirements outlined in this Client Guide
All amenities that are part of the condominium project are covered by the
mortgage at least to the same extent as the common elements. All common
elements and amenities are fully installed, completed and in operation for use
by unit owners
Insurance requirements as required under Condominium Insurance Section
in Chapter 3F, Insurance and Survey Requirements of this Client Guide have
been met
(7) Leased Recreation Facilities
Condominium projects that have leased recreation facilities are acceptable when the
following conditions are met:
Class I projects are not eligible
Lease must run for at least 10 years beyond the maturity date of the mortgage
Leasing agreement (rents) must be reasonable, fixed or tied to an acceptable
outside index, and are paid as an obligation of the homeowners association (HOA)
Lease terms and assessments must be subordinate to any mortgage(s). Unpaid
assessments due prior to foreclosure or deed-in-lieu are extinguishable
Rental lease payments must be current
An option granted to the lessee homeowners association (HOA) which allows for
total project buy-out of the lease is preferable. The terms of this purchase should
call for a predetermined date to exercise the option and a reasonable and present
asking price. Individual unit buy-outs are not acceptable.
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Page 3D.14
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Client Guide
Property Types &
Considerations
Exhibit B-1
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3E
Loan Documents & Notes
This Chapter describes Loan Document requirements and Note requirements that apply to all
GMAC-RFC Loan Programs. Generally, eligibility policies that vary from one standard Loan
Program to another are described in the individual Loan Program Chapters. In most cases,
differences will not be referenced in this Chapter.
E300
Note Requirements
(A) Late Fees
Unless applicable law requires otherwise, all Notes must reflect a late charge of no less than
4% and no more than 6%, and late charges must be assessed in accordance with the Loan
Program under which the Loan is submitted.
Jumbo A, Expanded Criteria, and Payment Option:
Late charges must be assessed no earlier than the 16th day of the month in which the
payment is overdue. If the Note provides for payment of a late fee that is more than 6% or
that may be assessed for payments received earlier than the 16th day of the month, the
Client warrants that the Borrower has been notified in writing that during the time that
GMAC-RFC owns the Loan, the Borrower will be charged a late fee of 6% and that the late
fees will not be assessed for payments received earlier than the 16th day of the month.
Home Solution and AlterNet:
Late charges must be assessed no later than the 10th day of the month in which the
payment is overdue. If a Note provides for payment of a late fee that is more than 6% or
that may be assessed for payments received earlier than the 10th day of the month, the
Client warrants that the Borrower has been notified in writing that during the time that
GMAC-RFC owns the Loan, the Borrower will be charged a late fee of 6% and that the late fee
will not be assessed for payments received earlier than the 10th day of the month.
(B) Note Rates
Exclusive of any permanent buydown, the Note rate is as follows:
For Jumbo A, Expanded Criteria, and Payment Option, the authorized net rate, the
minimum Servicing Fee applicable to the Loan product, plus any excess servicing
For Home Solution, the gross coupon rate identified with the price quote
For AlterNet, the gross coupon rate identified with the price quote. All excess will be
retained by the Client
GMAC-RFC will purchase Loans with Note rates in any increment unless otherwise stated in
Chapter 6, Loan Programs.
(C) First Payment; Monthly Payments (First Mortgages)
(1) First Mortgages
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For first mortgages, the Note must provide for full amortization by maturity through
monthly payments. The first payment is due no later than 62 days after final
disbursement of the Loan proceeds to the Borrower. All payments for first mortgages
are due on the first of the month.
Interest Only payments are permitted under specific Loan Programs. See Chapter
6, Loan Programs, and Chapter 5, Product Descriptions, of this Client Guide for
details.
(2) 1st Lien Lines of Credit
For 1st Lien Lines of Credit, the payment date will be disclosed in the monthly
statement mailed to the Borrower by the Designated Servicer. The Borrower will
receive the monthly statement at least 15 days prior to their first payment due date.
(D) First Payment; Monthly Payments (Second Mortgages)
(1) Home Equity Goal Loans and 125 CLTV Loans
For Home Equity Goal Loans and 125 CLTV Loans, the Borrower will receive a
statement from the Designated Servicer indicating the monthly amount of the
payment and the monthly due date. The date of the first payment must be more
than 30 days, but cannot be more than 60 days from the date of the Note.
(2) Home Equity Goal Lines of Credit
For Home Equity Goal Lines of Credit, the payment date will be disclosed in the
monthly statement mailed to the Borrower by the Designated Servicer. The
Borrower will receive the monthly statement at least 15 days prior to their first
payment due date.
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E301
Loan Documents
The Client must conform to the following Loan Documents requirements:
(A) First Mortgage Documents (excluding the 1st Lien Line of Credit Program)
(1) Uniform Instruments (Single Family)
The Client is required to use the most recent version Single-Family Fannie Mae/
Freddie Mac Uniform Instruments see GMACResidentialFunding.com. The
Client must attach the proper addenda and Rider to the Note or Security
Instrument as outlined in the Product Descriptions Chapter.
(2) Required Riders
Please see GMACResidentialFunding.com for any additional Riders and Addenda
required. This may include, but is not limited to, Condominium Rider, PUD Rider,
Second Home Rider, Adjustable Rate Rider, 1-4 Family Rider and Texas Home Equity
Riders.
(3) Changes to Uniform Instruments and Required Riders
The Client may not change or alter the required documents except when authorized
in writing by GMAC-RFC, Fannie Mae and/or Freddie Mac. Fannie Mae and
Freddie Mac changes must be consistent with the Product Description in this Client
Guide.
Except as outlined in this Section, the Client agrees to make no changes or additions
to Fannie Mae/Freddie Mac Uniform Instruments that will affect GMAC-RFC's
purchase of the Loan(s), other than those that are in accordance with the Loan
Product Description in this Client Guide. Other changes or additions may be made
with a separate instrument (Rider) to the Note or Security Instrument, as
appropriate, as long as it includes the following:
If GMAC-RFC buys the Clients rights under the Security Instrument and Note, the
promises and agreements in this Rider will no longer have any force or effect.
The Client agrees that no allowable changes or additions to the Note or Security
Instrument will adversely affect the negotiability of the Note or impair any rights of
GMAC-RFC.
(4) Corrections to Uniform Instruments and Required Riders
The Client must review the Note, Security Instrument and Riders for accuracy
prior to closing. These documents must be free of errors, with no erasures, whiteout or other changes. If a correction must be made and a new instrument cannot be
drafted, the Client must draw a single line through the incorrect portion and must
type in the correction. All Borrowers must initial the change.
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Insurance & Survey
Requirements
3F
Insurance & Survey Requirements
This Chapter describes the insurance and survey requirements that apply to all GMAC-RFC
Loan Programs. Generally, eligibility policies that vary from one standard Loan Program to
another are described in the individual Loan Program Chapters. In most cases, differences
will not be referenced in this Chapter.
F300
Insurance Requirements
The following Sections define the insurance requirements that must be satisfied for Loans
offered for sale to GMAC-RFC.
F301
Hazard Insurance
At a minimum, the Mortgaged Premises must be protected against loss or damage from
fire and other perils covered within the scope of the standard extended coverage
endorsement. GMAC-RFC will not accept hazard insurance policies that limit or exclude from
coverage (in whole or in part) windstorm, hurricane, hail damage, or any other peril that is
normally included under an extended coverage endorsement. The hazard insurance coverage
must equal the lesser of:
100% of the insurable Value of the improvements as established by the property
insurer OR
The unpaid principal balance of the first mortgage and the second mortgage Loan
amount, as long as it equals the minimum amount80% of the insurable Value of the
improvementsrequired to compensate for damage or loss on a replacement cost
basis
For negatively amortizing Loans, the hazard insurance coverage must be either 100% of the
insurable Value of the improvements as established by the property insurer or the highest
outstanding balance permitted under the Loan Program. The Client must ensure that the
Mortgaged Premises will be adequately covered even when vacant, and where necessary,
must obtain a vacancy permit endorsement.
(1) Deductible
Unless State law requires a higher deductible, the deductible may not exceed the
higher of:
$2,000 or 2% of the policys insurance limits for windstorm or hail losses
$1,000 or 1% of the policys insurance limits for all other covered losses
(2) Carrier
The policy must be underwritten by an insurer currently rated B/III, A/II or better in
Bests Insurance Reports or rated A or better by DEMOTECH, Inc. Lloyds of London
policies are also acceptable. The insurer must also be licensed or authorized by law
to conduct business in the jurisdiction where the Mortgaged Premises is located.
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F302
Mortgage Insurance
If primary mortgage insurance is required by the Loan Program, as stated in Chapter 6,
Loan Programs, the Client must obtain a mortgage insurance Commitment certificate from a
Mortgage Insurer that is acceptable to GMAC-RFC. The primary mortgage insurance
coverage must run to the Client and its successors and assigns and must protect the interest
of GMAC-RFC. Mortgage insurance coverage must not be subject to any exclusions beyond
those stated in the Mortgage Insurers master policy.
An acceptable primary Mortgage Insurer must have, at a minimum, a claims paying ability
acceptable to Standard and Poors Corporation for AA-Rated mortgage pass-through
certificates and to Moodys Investors Service for an A-Rated mortgage pass-through
certificate. The primary Mortgage Insurers currently meeting these requirements are listed
on the Acceptable Primary Mortgage Insurers Exhibit (GMAC-RFC Exhibit 1304).
It is the Clients responsibility to monitor the ratings of these Mortgage Insurers. In the event
the ratings are downgraded prior to the Funding Date or Substitution Date, the Client
must obtain mortgage insurance from another Mortgage Insurer listed on the Acceptable
Primary Mortgage Insurers (GMAC-RFC Exhibit 1304) who meets the claims paying ability
requirement of GMAC-RFC.
An Escrow/Impound account must be established at closing for monthly payment of future
premiums, unless a single premium was paid in full at closing.
(1) Monthly Mortgage Insurance Premiums
GMAC-RFC accepts mortgage insurance premiums scheduled to be paid on a
monthly basis.
(2) Single Premium Mortgage Insurance
GMAC-RFC accepts mortgage insurance premiums paid as a single premium.
When financing the cost of the premium in the Loan amount, the entire Loan amount
(inclusive of premium) is used to calculate the LTV ratio. The LTV cannot exceed the
maximum LTV allowed for the Program.
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F303
Earthquake Insurance
GMAC-RFC does not require earthquake insurance as a condition for purchase; however, if
coverage is in place, the following applies:
Mortgage Clause; Endorsement
The Client must ensure that the earthquake insurance policy contains a standard mortgagee
clause identifying the first or second mortgage interest, and for second mortgage Loans, it
does not replace the mortgagee clause pertaining to the first mortgage Loan.
F304
Flood Certification
Each Loan delivered for purchase must include the Federal Emergency Management Agency
(FEMA) Standard Flood Hazard Determination Form for use in determining whether a building
is located within an identified Special Flood Hazard Area (SFHA). The Client must use third
party firms or appraisers to make the flood hazard determination, and the Client is ultimately
responsible for the accuracy of the flood zone determination. The Client must ensure that the
third party guarantees the accuracy of its determination. The certification must indicate
whether the dwelling on the subject property lies within an SFHA as identified by the FEMA
through the National Flood Insurance Program (NFIP). The flood zone, flood map number and
map date must also be stated. The Client must select a flood zone determination company
from the list of flood zone determination vendors provided by Fannie Mae or Freddie Mac.
F305
Flood Insurance
If the area where the Mortgaged Premises are located has been identified by the Secretary
of HUD or the Director of the Federal Emergency Management Agency (FEMA) as a Special
Flood Hazard Area (SFHA), the Client must ensure that flood insurance is maintained and
that it provides coverage at least equivalent to the National Flood Insurance Program (NFIP)
in the amount specified in this Section.
Flood insurance is required if any part of the principal structure is located within an SFHA.
Flood insurance on detached buildings located within an SFHA is required if they serve as
part of the security for the mortgage. GMAC-RFC will not purchase mortgages secured by
property located in non-participating communities if the property is located in an SFHA.
The Client may waive the flood insurance requirement if the land or a portion of it is in a
Special Flood Hazard Area but the improvements are not, or if the Borrower has provided the
Client with a Letter of Map Amendment from FEMA excluding its improvements or the entire
property from the Special Flood Hazard Area.
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If the property is already covered by a flood insurance policy because the holder of the first
mortgage required the coverage, the Client must review the coverage to ensure that it
provides the minimum coverage required under the National Flood Insurance Program (NFIP)
in the amount specified in this Section. Because the maximum level of coverage available
under the NFIP has been increased to $250,000 and the statutory cap has been eliminated,
some mortgages may be underinsured. The Client must review the coverage on the first
mortgage to determine whether additional coverage is required. The Client must require the
Borrower to obtain appropriate endorsements. The Client must provide a copy of the
endorsements to the Servicers of both the first mortgage and the second mortgage Loan. If
the property is not covered by a flood insurance policy and it is an SFHA, the Client must
require the Borrower to obtain the minimum coverage required in this Section.
Building coverage for single-family properties must be maintained in an amount at least
equal to the least of the following:
The maximum available under NFIPs regular program
The maximum available under NFIPs emergency program if the regular program is not
yet in effect in the area where the Mortgaged Premises is located or
The minimum amount required under the terms of coverage to compensate for any
damage or loss on a replacement cost basis, or the unpaid balance of the Security
Instrument if replacement cost compensation is not available for the type of building
insured
Deductibles may not exceed the lower of $1,000 or 1% of the amount of coverage. Any flood
insurance policy shall contain the standard mortgagee clause as described in the Section of
this Client Guide.
Flood insurance requirements for single-family properties apply to similar residential
properties within a PUD.
F306
Condominium Insurance
Prior to the sale of a Loan to GMAC-RFC secured by a unit in a condominium, written
evidence must be obtained to ensure that the scope and amount of insurance coverage
meets or exceeds all local laws, ordinances and regulations covering condominiums, and
that, in addition, the following minimum requirements for insurance coverage are satisfied:
(1) Scope of Coverage
A multi-peril type of policy covering the entire condominium project is required. This
policy must provide, at a minimum, fire and extended coverage and all other
coverage in the kinds and amounts commonly required by private institutional
mortgage investors for projects similar in construction, location and use. Coverage
must be on a replacement cost basis for at least 100% of the insurable Value based
on replacement cost.
(2) Boiler Explosion Insurance
If a steam boiler is operating in the Mortgaged Premises, boiler explosion
insurance must be in force. This insurance must be evidenced by the standard form
of boiler and machinery insurance policy, and must provide, at a minimum,
$100,000 per accident per location.
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F307
PUD Insurance
Except as provided in the following Sections, all coverage in the kinds and amounts required
for Loans under this Client Guide is also required for Loans secured by PUD units.
(1) Blanket Insurance Coverage
In lieu of maintaining an individual hazard insurance policy on each PUD unit, the
PUD corporation, homeowners association (HOA), or trust may maintain blanket
hazard insurance, providing, at a minimum, fire and extended coverage and all other
coverage in the kinds and amounts commonly required by private institutional
mortgage investors for developments similar in construction, location and use.
The coverage must be in an amount equal to the full replacement Value of all of the
PUD units without deductions for depreciation or coinsurance, including the
structural portions and fixtures owned by the PUD unit owners. Insurance premiums
from any blanket insurance coverage must be a common expense of the PUD
corporation, homeowners association (HOA) or trust and must be included in the
regular common assessments of the PUD unit owners. The coverage must name the
PUD corporation, homeowners association (HOA) or trust as the insured for the
benefit of the PUD unit owners.
(2) Common Property Coverage
The PUD corporation, homeowners association (HOA) or trust must have fire and
extended coverage for at least 100% of the replacement cost of the insurable PUD
common property. The insurance must name the PUD corporation, homeowners
association (HOA) or trust as the insured for the benefit of the PUD unit owners. No
mortgagee clause in favor of the PUD unit mortgagees is required by GMAC-RFC on
insurance covering common property.
(3) Public Liability Insurance
The PUD corporation, homeowners association (HOA) or trust must have a
comprehensive policy of public liability insurance, covering all of the PUDs common
property. The insurance policy must contain a severability of interest clause or
endorsement precluding the insurer from denying the claim of a PUD unit owner
because of negligent acts of the PUD corporation, homeowners association (HOA),
trust or other unit owners. Coverage must also include all other coverages in the
kinds and amounts commonly required by private institutional mortgage investors
for projects similar in construction, location and use. Liability coverage must be for
at least $1 million per occurrence for personal injury and/or property damage.
(4) Mortgagee Clause
Each policy must contain the standard mortgagee clause endorsed to provide that
any proceeds will be paid to the [name of PUD corporation, homeowners association
(HOA) or trust] for the use and benefit of mortgagees as their interest may appear
or otherwise endorsed to fully protect the interest of GMAC-RFC.
When a mortgagee clause is not applicable, a certificate of insurance must be
obtained by the Client. This certificate must contain the information required for
certificates that is set forth in the Evidence of Insurance Section of the Servicer
Guide. The certificate must name the Client as the certificate holder instead of its
mortgagee.
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F308
Title Insurance
Loans purchased by GMAC-RFC must be covered by a mortgagee title insurance policy or
other approved form of title evidence which has been paid in full, is valid and binding and
remains in full force and effect and complies with the following requirements:
The amount of coverage must be equal to the face Value of the mortgage. Loans with either
scheduled negative amortization, or the potential for it, require coverage that equals the
original mortgage amount of the Loan plus the maximum amount of potential negative
amortization (as stated in the Note and /or Rider). If an equivalent endorsement is obtained,
it must provide protection in an amount sufficient to cover the mortgage amount, plus the
maximum amount of negative amortization that is permitted in the Note and/or Rider.
All title Commitments and/or policies must be issued by an approved ALTA insurance
company. Prior to any Loan disbursement, a marked-up title binder for an ALTA title
policy, indicating GMAC-RFCs proposed lien position is required. If proof of
satisfaction/release is a condition for eliminating any liens on the title, copies of these
documents must be retained with the title work
All judgments and liens must be paid off, subordinated or insured over
Real estate taxes must reflect, not yet due and payable. On condominiums and
Planned Unit Development (PUD), taxes can only be assessable against the subject
unit and its undivided interest in the common areas and not the project as a whole
In purchase transactions, the home-seller must be the owner of record.
(A) Title Insurer
The title insurance policy must be issued by a title insurer acceptable to Fannie Mae or
Freddie Mac, and who is qualified to do business in the State where the Mortgaged
Premises is located.
(B) Form
The title insurance policy must be written on the current standard form the American Land
Title Association (ALTA) or other form currently acceptable to Fannie Mae or Freddie Mac.
A master title insurance policy, evidenced by a certificate issued under a master policy in lieu
of a separate policy for the Loan, is also acceptable provided the Client represents and
warrants the following:
(1) Client has examined the title insurers master policy documents and, based on this
review and certifications from the title insurer, the Client has confirmed that the
master policy provides at least the amount and scope of coverage given by the ALTA
standard policy and that the master policy otherwise meets the requirements of this
Title Insurance Section
(2) Client has obtained from the title insurer a fully executed master title insurance
policy issued in the Clients name
(3) Master policy and certificates of title have been approved by the applicable State or
(comparable) regulatory authorities and that the use of the master policy and
certificates of title insurance will be valid in each jurisdiction concerned
(4) Client will cause the title insurer to replace the title insurance certificate with a full
individual ALTA policy within ten days notice from GMAC-RFC
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GMAC-RFC may refuse to accept the master title insurance policy of any title insurer.
For a Loan secured by Mortgaged Premises located in the State of Iowa, GMAC-RFC will
accept an attorney's certificate of title in lieu of a title insurance policy, provided all the
following conditions are met:
(1) The certificate must be addressed to the Client and all of its successors in interest as
evidenced by the Note and Security Instrument
(2) The certificate must be given by an attorney licensed to practice law in the State of
Iowa, who is insured against malpractice for rendering certificates of title in an
amount not less than the amount commonly written in the State of Iowa, taking into
account the number of these certificates rendered by the attorney
(3) The certificate must state:
(4) We (I) agree to indemnify you and your successors in interest in the Security
Instrument opined hereto, to the full extent of any loss attributable to a breach of
our (my) duty to exercise reasonable care and skill in the examination of the title
and the giving of this opinion.
(5) The certificate must not be subject to any exceptions, other than those permitted
under the following Title Exceptions and Title Exception Warranties Sections
(C) Beneficiary
The protection and benefits from the title insurance policy must insure the lender and the
mortgagee of the Loan, including all successors and assigns. Where MERS is the original
mortgagee, the title insurance policy must insure the lender, including all successors and
assigns, and additionally name MERS as an insured.
(D) Effective Date
The effective date of the title insurance policy must be no earlier than the date on which the
Security Instrument was recorded.
(E) Lien Requirements
The title insurance policy must insure that the Security Instrument creates a valid first or
second lien on the Mortgaged Premises.
The policy must list any lien for subordinate financing and state that the lien is subordinate to
the lien of the Security Instrument.
(F) Acceptable Minimum Coverage
The acceptable minimum title insurance coverage must at least equal the current principal
balance of the Loan. Loans with negative amortization must have title insurance coverage
equal to the highest obtainable balance of the Loan.
(G) Exceptions
The title insurance policy must not be subject to any exceptions, other than those permitted
under the following Title Exceptions and Title Exception Warranties Sections.
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F309
Title Search/Insurance for Second Mortgage Programs
(A) Lien Requirements
A title policy, binder or title search must be obtained to determine that the Second
Mortgage Program Loan Security Instrument creates a valid second lien subordinate only
to the lien of the holder of the first mortgage Loan on the Mortgaged Premises. See
documentation requirements in, Title Binder/Search, and Title Insurance Policy sections
in Chapter 9C, Delivery.
F310
Survey Requirements
(A) Plat of Survey or Improvement Survey
(1) The Client must submit a plat of survey or improvement survey with the final Loan
Documents it sends to GMAC-RFC. In areas where surveys are not customary, the
title insurance policy must ensure against loss or damage by any violation, variation,
encroachment or adverse circumstance that an accurate survey would have
disclosed. Note that a survey is not required for condominium units.
(2) The survey must be based on the results of an instrument survey performed, dated
and certified by a licensed civil engineer or registered surveyor. The survey must
have been performed, dated and certified within one year from the date of issuance
of the title insurance policy insuring a particular Mortgaged Premises. A survey
more than one year old will be accepted, provided the survey has been recertified by
a licensed civil engineer or a registered surveyor within the past year. The survey
must be certified to the Client and the company furnishing the title insurance policy.
(3) The survey must present the following information:
The location by courses and distances of the plot covered by the Security
Instrument; the relation of the point of beginning of the plot to the monument
from which it is fixed; all easements adjacent to the plot; any established building
line; the street or streets abutting the plot and their width
Any encroachments and the extent of any encroachments in terms of feet and
inches upon the plot or any easement appurtenant to the plot
All structures and improvements on the plot with horizontal lengths on all sides;
and the relation of the structure and improvements by distances to all boundary
lines of the plot, easements, established building lines and street lines
(4) If the plot is described as being on a filed map, the survey must contain a legend
relating the plot to the map on which it is shown. The survey must disclose and
provide assurance that the improvements erected lie wholly within the boundaries of
the plot and that no part of the improvements encroach upon or overhang an
easement or right of way or upon the land of other sections, unless an affirmative
title policy endorsement is obtained.
The survey must also provide proof that the improvements are wholly within the
established building restriction lines and that no adjoining structure encroaches upon
the plot or upon any dominant easement appurtenant to the plot.
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Prepayment
Penalties
3G
Prepayment Penalties
This Chapter describes Prepayment requirements that apply to all GMAC-RFC Loan Programs.
Generally, eligibility policies that vary from one standard Loan Program to another are
described in the individual Loan Program Chapters. In most cases, differences will not be
referenced in this Chapter.
G300
Prepayment Definition
A Prepayment is considered to have occurred when an amount greater than the regularly
scheduled principal payment is made thereby reducing the principal balance of a Loan before
the final due date.
(1) Full prepayment
When the entire amount of the Loan is paid prior to the due date, it is considered to
be a full prepayment. This can occur as a result of the sale of the property, a
refinance of the existing mortgage Loan, or a full payoff.
(2) Partial prepayment
A partial prepayment can occur when a principal curtailment is made along with a
regular monthly payment or as a lump sum payment, but does not fully payoff the
Loan.
(A) Prepayment Penalty Provisions
When the Loan has a prepayment penalty provision, and a full or partial prepayment is made
(over the prescribed allowable amount) during the penalty phase, a penalty will be due. The
amount of the penalty is dependent upon the amount of the principal reduction and terms of
the penalty provision. Prepayment penalty provisions typically describe:
(1) Prepayment Term
A qualifying prepayment penalty is expected to be in effect for at least 12 months
and up to 36 months from the date of the Note. Individual Loan Program Price
Sheets specify the prepayment terms which are eligible for the posted pricing.
(2) Penalty Calculation, Partial Prepayment Determination with Time frames
A qualifying prepayment penalty must provide for either:
(a) Six months advance interest on the amount by which the total of all
prepayments within any 12 month period exceeds 20% of the original principal
amount during the term of the prepayment penalty, OR
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3G GMAC-RFC
Page 3G.2
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Client Guide
Prepayment
Penalties
(b) A percentage amount of either the prepaid amount or the original principal
balance. The percentage may be a straight percentage over the term of the
penalty period or may be graduated and dependent upon the length of time
between the date of the Note and when the prepayment is made. The
percentage amount is determined as either:
5% if prepayment occurs in the first 12 months after the Note date; 4% if
prepayment occurs in the 13th through 24th month; and 3% if the
prepayment occurs in the 25th through 36th month from the date of the
Note, OR
3% over the entire prepayment penalty term
(B) Hard vs. Soft Prepayment
Enforceability based on whether or not the Loan is prepaid due to the sale of the home or due
to a refinance is sometimes to referred to as the difference between a hard or a soft
prepayment.
(1) Hard Prepayment
The prepayment penalty is enforceable and a penalty is charged regardless of the
reason for prepayment. The Note or other attachments/addenda do not provide for
waiving the prepayment penalty.
(2) Soft Prepayment
The prepayment penalty includes provisions for waiving the penalty if the home is
sold to a related or unrelated party. Acceptable documentation of the sale
transaction must be provided. Only a refinance of the existing Loan or full or partial
curtailment will result in a penalty assessment.
G301
Program Prepayment Pricing Requirements
To be eligible for the applicable posted pricing, Loans with prepayment penalty provisions
must meet the specific standards of the program under which the Loan is submitted as well
as the federal and State laws and regulations under which the Loan was originated. These
program standards include:
(A) Payment Option Program
A hard prepayment is required for Loans under the Payment Option Program as indicated on
the Price Sheet. One and three year prepayment terms are offered.
Payment Option ARM Loans originated in California with a provision that allows the Borrower
to prepay within 90 days of rate change notification are not eligible for the posted
prepayment penalty pricing adjustment.
(B) Jumbo A and Expanded Criteria Fixed Rate and ARM
Pricing is posted for a hard prepayment with a three year term.
One Month, Six Month, One Year, and Two Year ARM Loans originated in California with a
provision that allows the Borrower to prepay within 90 days of a rate change notification are
not be eligible for the posted prepayment penalty pricing adjustment.
(C) Home Equity Goal Loan and 125 CLTV
Pricing is posted for a hard prepayment with a three year term.
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Page 3G.3
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Prepayment
Penalties
(D) Line Of Credit Product (Home Equity Goal Line and First Lien Line of Credit)
These products do not allow prepayment penalties or termination fees.
(E) Home Solution Program
A hard prepayment is required for Loans submitted under the Home Solution Program. Terms
of one to three years are accepted for Fixed Rate and 30/15 Balloon Loans. A maximum two
year prepayment is allowed on Two-One LIBOR ARMs and a maximum three year
prepayment on Three-One LIBOR ARMs.
Qualifying prepayment penalty language may be one of the following:
Six months advance interest on the amount by which the total of all prepayments
within any 12 month period exceeds 20% of the original principal amount or the Loan,
OR
A percentage based on the amount prepaid or the original principal balance where the
percentage is 5% if the prepayment occurs in the first 12 months after the Note date;
4% if the prepayment occurs in the 13th through 24th month after the Note date; and
3% if the prepayment occurs in the 25th through 36th month after the Note date.
(F) AlterNet
A hard prepayment is required for Loans submitted under the AlterNet Program. Terms of
one to three years are offered for Fixed Rate Loans. A maximum two year prepayment is
allowed on Two Year-Six Month (2/28) LIBOR ARMs, and a maximum three year prepayment
is allowed on Three Year-Six Month (3/27) LIBOR ARMs.
Qualifying prepayment penalty language may be one of the following:
Six months advance interest on the amount by which the total of all prepayments
within any 12 month period exceeds 20% of the original principal amount or the Loan,
OR,
A percentage based on the amount prepaid or the original principal balance where the
percentage is 5% if the prepayment occurs in the first 12 months after the Note date;
4% if the prepayment occurs in the 13th through 24th month after the Note date; and
3% if the prepayment occurs in the 25th through 36th month after the Note date.
G302
Compliance with Applicable Laws
The Client must determine individual State requirements regarding prepayment penalties.
See the Prepayment Penalty Pricing Matrix published on the Portal for information regarding
GMAC Residential Fundings policies regarding the availability of prepayment penalty pricing
in each State. The Client must also comply with the prepayment penalty caps in the
Responsible Lending Representations, Warranties and Covenants Section of Chapter
2A, Representations, Warranties and Covenants.
Where federal or State laws preclude the program requirements, Clients are encouraged to
discuss alternative pricing for prepayment penalties.
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Prepayment
Penalties
Exhibit B-1
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Exhibit B-1
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Client Guide
Underwriting
4
Underwriting
The purpose of credit and property underwriting is to ensure that each Loan meets GMACRFCs quality standards. A Loan meets GMAC-RFCs underwriting quality standards if the
credit, character, capacity and collateral are consistent with the Loan Program and credit
grade under which the Loan is sold to GMAC-RFC. The likelihood of timely repayment is
expected to be commensurate with the credit quality of the program and the represented
Value of the Mortgaged Premises is expected to accurately reflect its market Value.
This Underwriting Chapter sets out underwriting standards that apply to all GMAC-RFC Loan
Programs. Generally, underwriting standards that vary from one standard Loan Program to
another are described in the individual Loan Program Chapters. In most cases, differences
will not be referenced in this Chapter. Loans that do not comply with the criteria for standard
Loan Programs may be eligible for purchase under a non-standard Loan Program.
400
Description of Underlying Chapters
Chapter 4A, Credit
Chapter 4B, Liabilities & Debt Ratios
Chapter 4C, Cash To Close
Chapter 4D, Income Types
Chapter 4E, Income Documentation
Chapter 4F, Appraisal Requirements & Property Underwriting
Chapter 4G, Electronic Services
401
Client Underwriting Responsibility
The Client represents and warrants that all Loans sold to GMAC-RFC meet the eligibility and
underwriting guidelines as set forth in this Client Guide.
The Client is responsible for the credit and property underwriting regardless of whether the
credit information and appraisal were required or any Loan processing functions were
performed by an entity other than the Client or any entity related to the Client.
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4 GMAC-RFC
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Client Guide
Underwriting
402
GMAC-RFC Underwriting Review
GMAC-RFC may perform, at its sole discretion, a quality control or underwriting review of any
Loan prior to or after GMAC-RFC has funded the Loan. The potential for review and the depth
of the review increases for Loans with high risk characteristics, for new Clients and for Clients
with performance or other risk issues. High risk Loan characteristics may include:
Loans that fail the credit guidelines for the product and grade being delivered
Low score/high LTV Loans
High balance/high cash-out Loans or
High balance/ARM Loans
Upon completion of its review, GMAC-RFC will notify the Client of any material Loan
deficiencies. At its sole discretion GMAC-RFC may deny funding, allow re-pricing or require
repurchase of any Loan that is ineligible for the program under which the Loan is submitted
to GMAC-RFC. GMAC-RFC is committed to standards of reasonableness in underwriting
judgment and will exercise its sole discretion only when the Loan deficiency is a material
breach of the standards disclosed in this Client Guide.
403
Loan Application Analysis
The Loan application assists in determining the Borrowers eligibility for the Loan. During the
completion and review of the application, the Client agrees to analyze this eligibility in the
following manner:
Verify and substantiate the quantity, quality and durability of the Borrowers primary
income and other income (does not apply to Loans with the following documentation
types: Stated Income, No Ratio, Stated Income/Stated Asset, No Income/No Asset,
and No Doc)
Verify and analyze the Borrowers assets to determine if adequate funds are available
to meet the equity requirements of the Loan transaction and liquid reserve
requirements
Verify and substantiate the Borrowers liabilities and credit history and relate those
liabilities to the Borrowers assets and income
Evaluate the Borrowers net worth in relation to his or her ability to manage financial
affairs
Verify that the declarations are consistent with program eligibility
404
Electronic Documentation Standards
GMAC-RFC will accept Electronic Verification for employment, income, assets or
appraisals. GMAC-RFC, at its sole discretion, may require additional or original
documentation.
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GMAC-RFC
Page 4A.1
03/13/06
Client Guide
Credit
4A
Credit
This Credit Chapter sets out standards that apply to all GMAC-RFC Loan Programs. Generally,
requirements that vary from one standard Loan Program to another are described in the
individual Loan Program Chapters. In most cases, differences will not be referenced in this
Chapter.
A400
Credit Report Requirements
The Loan file must contain, for each Borrower whose income or assets are required to qualify
for the Loan, one of the following types of credit reports:
Full Residential Mortgage Credit Report (RMCR), which must conform in all respects to
all applicable Fannie Mae and Freddie Mac requirements
In-File credit report that accesses at least two or three credit repositories (three
sources are preferred)
The credit report must contain complete information provided by all repositories used and
must be issued by an independent credit reporting agency from acceptable repositories. If
the Borrower has lived in his or her current residence for less than 12 months, credit must be
searched using the current and the former address.
GMAC-RFC requires that the credit report(s) used to evaluate a Loan for purchase may not
have Frozen Credit. This applies to all Borrowers on all Loans submitted to Assetwise or on
a manual basis. If a Borrower unfreezes their credit after the original credit report was
ordered, a new three-file merged credit report must be obtained to reflect current updated
information from all repositories. As addressed in this Client Guide, GMAC-RFC accepts nontraditional credit in certain limited cases. However, non-traditional credit will not be accepted
as a replacement for Frozen Credit.
A401
Credit Score Requirements
Each credit report must contain a Fair Isaac Credit Score (Empirica on TransUnion;
Beacon on Equifax; and FICO on Experian, f.k.a. TRW) for all Borrowers whose income
and/or assets are required to qualify for the Loan. The Credit Score will be used as a
component in evaluating the credit grade of the Loan.
Credit Score models are periodically updated by credit vendors. To ensure the most
predictive score is used, the Client must instruct each credit report vendor to use the most
current version of their Credit Score model in their report.
Client must provide at least two qualifying Credit Scores for grading purposes. See
Minimum Credit History & Trade Line Requirements Section in this Chapter.
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Page 4A.2
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Client Guide
Credit
A402
Selecting Credit Score
Selecting the Credit Score for Loan qualification is a two-step process. First, the score must
be selected for each individual Borrower and then the score used for Loan qualification will be
selected.
(A) Selection
The Client must select the Credit Score for each Borrower by using one of the following
methods:
The lower score of two repositories or
The middle score of three repositories
If more than one Credit Score is supplied from the same repository, GMAC-RFC will use the
lowest score in all cases.
(B) Loan Qualification Score
Primary Borrower is defined as the Borrower with the highest verified income. A nonoccupant Co-Borrower, when assisting an occupant Borrower to qualify, cannot be
considered the Primary Borrower.
For the following documentation types the Primary Borrowers Credit Score is used: Full,
Lite, One Paystub, and Fast Income Documentation Loans. These income documentation
types allow a non-primary Borrower not meeting the minimum Credit Score requirements
to be eligible. All other credit evaluation components must be met.
For the following documentation types the Primary Borrower is undetermined so the lowest
selected Credit Score among all Borrowers is used: Stated Income, No Ratio, Stated
Income/Stated Asset, No Income/No Asset, and No Doc. All Borrowers must meet minimum
Credit Score and all other credit evaluation components.
A403
Minimum Credit History & Trade Line Requirements
(A) Credit History
All credit grades require a Credit Score based on:
A minimum two year credit history
At least one trade (derogatory or non-derogatory) reported in the past six months
A minimum number of non-derogatory tradelines based on credit grade and income
documentation type
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GMAC-RFC
Page 4A.3
03/13/06
Client Guide
Credit
>80% LTV/CLTV
A1, A2
A3
Home Solution A4
AlterNet A4-C
51
A404
Credit Evaluation Overview
The manner in which the Borrower has managed his/her previous credit is a strong indicator
of future performance. In a subjective evaluation of credit, many factors are considered
when evaluating a Borrowers credit history. These include:
Credit repayment history
Line utilization
Proportion of balances to limits on revolving accounts
Proportion of current balances to original balances on installment accounts
Patterns of debt pyramiding
Recent inquiries and newly opened accounts
Number of open accounts and length of credit history
Public record information
GMAC-RFC has compelling evidence that the Credit Score of the Borrower, based on
empirically-derived statistical models, provides an accurate objective evaluation of these
same factors. GMAC-RFC will use the Credit Score, along with other credit information such
as previous mortgage/rental payment, bankruptcy, foreclosure and Major Adverse Account
history to properly classify the credit quality of the Loan. For credit grades A1 to A3 and
Home Solution A4, credit quality together with the Borrowers capacity to handle the subject
Loan, as measured by the total debt ratio, will drive the Loans credit grade.
For the AlterNet Program, credit grade will be determined by mortgage or rental payment
history. While bankruptcy, foreclosure and major adverse account history have rules that
must be applied, only mortgage and rental history will determine credit grade.
Separate rules for grading apply based on credit grade. See Credit Evaluation
Components Section.
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Client Guide
Credit
A405
Credit Evaluation Components
(A) Housing Payment History
Mortgage history (or prior rental history) must be verified for the most recent 12 months if it
does not appear on the credit report. Acceptable sources include VOM, VOR, cancelled checks
or payoff statement. The Client must obtain the current balance, current status and monthly
payment amount. Rental history may need to be established with canceled checks.
For those credit grades that evaluate a 24-month housing payment history, the following
documentation is required:
If the credit report provides 12 or more months of housing payment history, this is
sufficient to meet payment history requirements. The most recent 24 months of
housing payment history will be used for grading purposes
If less than 12 months is provided on the credit report, the most recent 12 months
housing payment history must be documented
Housing payment history on any property (regardless of occupancy) is considered mortgage
credit for grading purposes.
Payments on a Manufactured Home, timeshare or second mortgage are considered to be
mortgage debt, even if reported as an installment Loan. Additionally, any repossession or
payment >=120 days late on a Manufactured Home, even if shown as an installment Loan,
will be considered a foreclosure.
First-time Homebuyers may not be acceptable under all Loan Programs. Check individual
Loan Program information for restrictions.
For credit grades A1 to A5, housing history may not be 30 days or more past due at time of
application. Any Loan submitted that is currently 30 days delinquent will receive at most an
Ax credit grade.
For credit grades A4 to C, verification of housing payment history must include the payment
due the month prior to Note date. To meet this requirement, the Client may provide updates
to the acceptable sources of notification listed above or a processors certification that
includes:
Date of verification
Mortgage history meets grading requirements
Name, phone number and title of verifier
Name and title of person making the call
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4A
GMAC-RFC
Page 4A.5
03/13/06
Client Guide
Credit
30-day Delinquency
Current
30-day Delinquency
(B) Bankruptcy
Bankruptcy dismissal dates are treated the same as discharge dates.
For all credit grades, Chapter 7 bankruptcy is measured from discharge date
For credit grades A1 to A3, Chapter 13 bankruptcy is measured from discharge date
For credit grades A4 to C, Chapter 13 bankruptcy is measured from filing date
(C) Foreclosure
The length of time since the occurrence or completion of the foreclosure are considered in
the credit evaluation. Foreclosure is evidenced by 120 or more days Delinquent status or the
existence of the following:
Notice of default
Notice of sale
Notice of pendency
Notice of hearing
Notice of election and demand
Deed of substitution to trustee
Deed-in-lieu
Petition
Notice
Breach
Order to serve
Line to docket
Lis Pendens
Short Payoff
Forebearance
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Client Guide
Credit
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GMAC-RFC
4A
Page 4A.7
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Client Guide
Credit
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Client Guide
Credit
A2
680-719
A3
620-679
Bankruptcy1
Foreclosure
Major
Adverse
Credit
None
reported in
past 24
months.2
Simultaneous first and second mortgage transactions must follow the most restrictive grading policy of the two
Loan Programs.
1
2
Chapter 7 measured by discharge or dismissal date. Chapter 13 measured by discharge date for credit grades
A1 to A3. Chapter 13 must be paid off prior to or at closing.
Adverse accounts over 24 months old that do not affect title will not be considered in grade determination and
are not required to be paid.
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4A
GMAC-RFC
Page 4A.9
03/13/06
Client Guide
Credit
A4
600-619
(Home
Solution)
A4
(AlterNet)
A5
Ax
Am
60-day mortgage/rental
history allowed without
restriction. 1x90 non-rolling
mortgage/rental history
allowed. No more than 90 days
down at closing.
Bankruptcy2
Foreclosure
Major
Adverse
Credit
Owner Occupied:
None in past 1 year
<= 95% LTV
None in past 2 years
> 95% LTV
Non-owner
Occupied:
None in past 1 year
<= 80% LTV
None in past 2 years
> 80% LTV
Owner Occupied:
None in past 1 year
<= 70% LTV
None in past 2 years
<= 85% LTV
None in past 3 years
> 85% LTV
Non-owner
Occupied:
None in past 2 years
<= 75% LTV
None in past 3 years
> 75% LTV
See Major
Adverse
Credit
section
Chapter 6E,
AlterNet Loan
Program
Simultaneous first and second mortgage transactions must follow the most restrictive grading policy of the two
Loan Programs.
1
For the AlterNet Program, credit grade is determined by mortgage or rental payment history. While Credit
Score, bankruptcy, foreclosure and Major Adverse Credit account history have rules that must be applied,
only mortgage and rental history will determine credit grade.
2
Chapter 7 measured by discharge or dismissal date. Chapter 13 measured by filing date for credit grades A4 to
B. Chapter 13 must be paid off prior to or at closing. Credit grades A4 to C must be paid as agreed for past 12
months.
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4A GMAC-RFC
Page 4A.10
03/13/06
Client Guide
Credit
Credit
Score
A1
720+
A2
680-719
A3
620-679
Bankruptcy,
Foreclosure
1 Adverse accounts over 24 months old that do not affect title will not be considered in grade determination and
are not required to be paid.
Credit
Grade
Credit
Score
700+
680-699
660-679
640-659
Bankruptcy
Foreclosure
0x30 mortgage/rental
Delinquency in past 12
months; 0x60 mortgage/
rental Delinquency in past 24
months.
7 years
7 years1
Major Adverse
Credit
None reported in
discharged1
past 24 months2
None
None
If a bankruptcy or foreclosure has ever occurred, the maximum Loan amount is $50,000 and the maximum DTI
is 45%.
See current rate sheet for applicable adjustments.
Adverse accounts over 24 months old that do not affect title will not be considered in grade determination and
are not required to be paid.
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4A
GMAC-RFC
Page 4A.11
03/13/06
Client Guide
Credit
A406
Upgrading the Credit Grade
A credit grade upgrade may be warranted for Loans that have sufficient compensating
factors. A Loan may be upgraded if it fails to qualify for a higher grade based solely on the
failure to meet a single credit characteristic of that higher grade. Only one upgrade may be
used on a Loan. All other requirements for a higher credit grade must be met except for the
single requirement being overridden.
For credit grades A1 to A3, two upgrade options are available. Minimum Credit Scores are
required.
Credit Score or Major Adverse Credit (minimum Credit Score 620)
Bankruptcy or foreclosure (minimum Credit Score 660)
Credit upgrades are not permitted for the following:
Home Solution Program
AlterNet Program
Second Mortgages
(A) Upgrade Option I: Credit Score or Major Adverse Credit Upgrade for Credit
Grades A1 to A3 (First Mortgage Programs Only)
Allows upgrade into credit grades A1 to A3 only. Loan may only be upgraded one credit
grade. All other credit characteristics (Credit Score, mortgage payment history, bankruptcy,
foreclosure, Major Adverse Credit, standard DTI ratios) must meet the requirements for
the credit grade.
The Client may upgrade a Loan by reducing the Loan-to-Value (LTV)/Combined Loan-toValue (CLTV) if the Loan fails to qualify for the next higher grade only because of its failure to
meet a single credit characteristic of that next higher grade. The LTV/CLTV cannot exceed
80% and must be either 10% or 20% below the program maximum the Borrower ultimately
qualifies for as a result of the upgrade, as shown in the matrix below.
LTV/CLTV Reduction
Note: A 10% LTV/CLTV reduction is sufficient to upgrade Credit Score for every upgrade except A3 to A2 (when
the Credit Score is 620-659) and A2 to A1 (when the Credit Score is 680-699); in those two cases a 20% reduction
in LTV/CLTV is required for the upgrade.
1 These amounts include the $500 allowed under the Major Adverse Credit definition. These amounts may be
left open provided they do not affect title.
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Page 4A.12
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Client Guide
Credit
(B) Upgrade Option II: Bankruptcy or Foreclosure Upgrade Option for Credit Grades
A1 to A3 (First Mortgage Programs Only)
Allows upgrade into credit grades A1 to A3 only. The Client may upgrade a Loan if it fails to
qualify for a credit grade based on bankruptcy or foreclosure history only if the occurrence
can be attributed to extenuating circumstances as outlined in this Section.
All other credit characteristics (Credit Score, housing payment history, Major
Adverse Credit, standard DTI ratios) must meet the requirements for the credit
grade.
Either bankruptcy or foreclosure may be overridden, but not both.
Additional layering of risk such as instability of income, ratios outside of standard
program guidelines, equity withdrawals (cash-out transactions) or significant payment
shock must not be present.
Borrower must have Re-established Credit by demonstrating both of the following:
Minimum of 12 months verified housing payments with no delinquencies
Minimum of four trade lines open for 24 months with no delinquencies. At least
one trade line must have a credit line of at least $1,000
Provide copies of all bankruptcy papers and Notice of Discharge or appropriate
documents to establish the date of bankruptcy, foreclosure or deed-related action
Provide evidence that all debts not satisfied by the bankruptcy have been paid or have
been current since date of discharge of bankruptcy
Required documentation of extenuating circumstances:
Borrowers written statement, which must attribute the cause of the financial
difficulties to factors beyond his or her control that are not ongoing and are
unlikely to recur
Supporting documentation to verify the extenuating circumstances. The
supporting documentation must correlate to the Borrowers explanation and
confirm the events were an isolated occurrence which resulted in a sudden,
significant and prolonged reduction in income or a catastrophic increase in
financial obligation
Documentation of extenuating circumstances is not required when the Borrower
has a discharged Chapter 13 Bankruptcy
Borrowers with a bankruptcy/foreclosure caused by extenuating circumstances represent
less risk than Borrowers with a bankruptcy/foreclosure caused by financial mismanagement
and receive more favorable underwriting guidelines as outlined below:
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GMAC-RFC
4A
Page 4A.13
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Client Guide
Credit
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Page 4A.14
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Client Guide
Credit
Exhibit B-1
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Page 4B.1
03/13/06
Client Guide
Liabilities & Debt Ratios
4B
Liabilities & Debt Ratios
This Liabilities & Debt Ratios Chapter sets out standards that apply to all GMAC-RFC Loan
Programs. Generally, requirements that vary from one standard Loan Program to another are
described in the individual Loan Program Chapters. In most cases, differences will not be
referenced in this Chapter.
B400
Qualifying RatiosPayment
(A) Housing to Income Ratios
The Client must ensure that the Borrowers income will support the total housing expense on
an ongoing basis. GMAC-RFC will give consideration to Borrowers who have demonstrated an
ability to carry a similar or greater housing expense for an extended period.
Monthly housing expenses include:
Principal and interest payments on the first mortgage Loan
Interest payments for Loans with Interest Only feature
Hazard insurance premiums
Real estate taxes
Additional housing expenses include:
Principal and interest on subordinate financing
Mortgage insurance premiums
Flood insurance premiums
Leasehold payments
Homeowners association (HOA) dues or condominium maintenance
Fees (excluding unit utility charges)
(B) Qualifying Housing Payment
Loans without an eligible Interest Only feature are qualified with the full payment of
principal, interest, taxes and insurance.
Loans with an eligible Interest Only feature are qualified with payment of the interest, taxes
and insurance.
FRM Loans will be qualified using the (initial) Note rate.
ARM Loans will be qualified at the maximum interest rate that could be in effect at the
beginning of the second year.
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Client Guide
Liabilities & Debt Ratios
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4B
GMAC-RFC
Page 4B.3
03/13/06
Client Guide
Liabilities and Debt Ratios
B401
Borrowers Liabilities
The Client must verify all outstanding liabilities of the Borrower as part of their submission of
the Loan to GMAC-RFC. There may be restrictions in Debt-to-Income Ratios. See the
West Virginia Loans Section in Chapter 3C, Financing, for details.
The following debts must be included in the Borrowers Debt-to-Income Ratio:
Monthly housing expenses
Revolving charges (If no payment is showing, use 5% of the outstanding balance.)
Installment debt and leases (Paying down to fewer than 11 payments is not allowed for
qualification purposes.)
Real estate Loans
Automobile Loans
Automobile leases (Must be included in the DTI even if fewer than 11 payments are
remaining.)
Net rental losses from real estate owned
Alimony, child support or maintenance payments with 11 or more remaining payments
Divorced and separated Borrowers joint obligations will be considered in accordance
with the Co-Signed Debts and Divorce Debts Sections of this Client Guide
Student Loans (unless deferred for more than 12 months)
Payment for Loans secured by 401(k), life insurance or other liquid asset accounts may be
excluded from DTI calculations unless the account is used to meet program reserves and/or
liquid asset requirements or is used as a compensating factor. The Borrower, however, may
liquidate the non-secured portion of the account for use as down payment.
While GMAC-RFC does not require a written explanation of inquiries showing on the
Borrowers credit report, it is recommended that the Client check on recent inquires to
determine whether there are undisclosed debts for the Borrower.
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Exhibit B-1
4B GMAC-RFC
Page 4B.4
03/13/06
Client Guide
Liabilities & Debt Ratios
B402
Debt Payoff
Pay off of Debt
When the Borrower indicates debt will be paid at the closing of the new mortgage Loan,
GMAC-RFC will not include the payment in the Debt-to-Income Ratio. The paid bill(s),
canceled check(s) or a settlement statement (HUD-1) evidencing payment must be
submitted.
B403
Co-Signed Debts
If the Borrower is a co-signer or guarantor on any Loans, those liabilities must be indicated
on the Loan application. The payments for these Loans will be included in the Borrowers
total monthly debt unless satisfactory documentation is provided to prove that the primary
debtor has been making the payments on a regular basis. For credit grades A1 to A3, at least
three months canceled checks are required from the primary debtor. For credit grades A4 to
C, at least six months canceled checks are required from the primary debtor.
B404
Divorce Debts
Debts opened jointly with a former spouse will be considered as an obligation of the Borrower
unless a legal separation agreement or divorce decree is provided to prove the former
spouse is responsible for the debt.
B405
Business Debts
Debts paid by the Borrowers business will not be considered in the Borrower ratios if the
Client provides canceled checks drawn on the business account indicating they have been
paid on a regular basis for a minimum of six months.
B406
Borrower Capacity
The Borrowers ability to repay mortgage debt is critical in evaluating the asset quality.
GMAC-RFC will assess the Borrowers liabilities for the number of active accounts, usage and
repayment history. Evaluation of the Borrowers capacity includes an assessment of the
Borrowers financial obligations in relation to income. The credit quality, coupled with the
Borrowers financial obligations, determines the acceptable grade of the Loan.
B407
Student Loans
If the Borrower has a student Loan that is currently deferred, the payment can be excluded
from the debt ratio if the Client provides verification from the creditor that payment will not
be required from the Borrower for the next 12 months.
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Exhibit B-1
GMAC-RFC
Page 4C.1
03/13/06
Client Guide
Cash To Close
4C
Cash to Close
This Cash to Close Chapter sets out standards that apply to all GMAC-RFC Loan Programs.
Generally, requirements that vary from one standard Loan Program to another are described
in the individual Loan Program Chapters. In most cases, differences will not be referenced in
this Chapter.
C400
Cash to Close
The Client must determine and provide evidence that the Borrower has sufficient cash to pay
the down payment, prepaid items and closing costs and adequate additional cash reserves as
the Program requires. Reserves, when required, must come from Borrowers own cash.
Except for Stated Income/Stated Asset, No Income/No Asset, and No Doc, GMAC-RFC
requires cash to close to be sourced and verified. Electronic Verifications are acceptable.
Borrower must satisfactorily explain any recent large deposits if used to qualify for the Loan.
(A) Deposit Verification/Seasoning
Requirements for verification and seasoning of cash to close vary by Loan Program.
For all Loan Programs, if the verification of cash to close reveals a significant recent
increase in the average balance of an existing account, recent large deposits or a newlyopened account with a significant balance, the Borrower must explain the increase and the
Client must document this explanation.
GMAC-RFC encourages the Client to verify all sources of liquid assets beyond the amount
needed to meet the requirement of the transaction so that, if necessary, these assets may be
considered as a compensating factor in underwriting the Loan.
(B) Minimum Down Payment
For most Loan Programs, GMAC-RFC requires the Borrower to make a minimum down
payment from his or her own cash or other equity. Specific requirements are detailed in
Chapter 6, Loan Programs.
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Exhibit B-1
4C GMAC-RFC
Page 4C.2
03/13/06
Client Guide
Cash To Close
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Exhibit B-1
GMAC-RFC
4C
Page 4C.3
03/13/06
Client Guide
Cash To Close
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Exhibit B-1
4C GMAC-RFC
Page 4C.4
03/13/06
Client Guide
Cash To Close
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GMAC-RFC
Exhibit B-1
Page 4D.1
03/13/06
Client Guide
Income Types
4D
Income Types
This Income Types Chapter sets out standards that apply to all GMAC-RFC Loan Programs.
Generally, requirements that vary from one standard Loan Program to another are described
in the individual Loan Program Chapters. In most cases, differences will not be referenced in
this Chapter.
D400
Borrower Income
The Client must determine if the Borrowers income from either primary or secondary
sources is adequately verified, is sufficient to repay the debt in a timely manner, is likely to
continue and is stable. All income necessary to qualify for the Loan must be derived from
within the United States or a U.S. Possession or Territory.
If the Loan has been assumed prior to submission to GMAC-RFC, the credit underwriting
determination must be made with respect to the assuming Borrower.
D401
Employment and Income Analysis
Stable income may come from many sources. Part-time, second-job or multiple-job income
may be considered as stable income if it can be verified as having been uninterrupted for the
previous two years and has a strong likelihood of continuation.
Other income, such as bonus, commission, overtime or unemployment compensation will be
considered if the Borrower has received income for the most recent two years. Borrowers
who have made job changes for advancement and maintained a stable earning capacity and
good credit history, as well as Borrowers with demonstrated job stability, will be eligible.
Education or training to enhance job opportunities and income will receive favorable
consideration. The Borrower must explain employment gaps more than two months in
writing.
GMAC-RFC requires a minimum of two years employment history and continuance of income
for three years.
The employment status of the Primary Borrower (as defined in the Selecting Credit
Score Section of Chapter 4A, Credit) is used to determine income documentation type. The
non-primary Borrower is subject to the limitations of the documentation type.
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Exhibit B-1
4D GMAC-RFC
Page 4D.2
03/13/06
Client Guide
Income Types
D402
Income Types
GMAC-RFC defines income types as follows:
Wage Earners
Self Employed Income
Fixed Income
Rental Income
Other Income
D403
Wage Earners
Wage earners must have a 2 year history of employment in same business or line of work.
GMAC-RFC categorizes wage earners as follows:
(A) Wage Earner
Wage earners receive a wage or salary from an employer in return for a service rendered and
has less than 25% ownership interest in the business. Compensation may be based on an
hourly, weekly, monthly or semi-monthly basis. For employees paid on an hourly basis, the
verification must state the hourly wages, including the number of hours worked each week.
(B) Wage EarnerBonus or Overtime
Bonus or overtime income is compensation in addition to an employees straight salary or
hourly wage. GMAC-RFC will accept stable bonus or overtime income with a two year history.
(C) Wage EarnerTips or Gratuity
Tips or Gratuity income is compensation in addition to an employees straight salary or
hourly wage. GMAC-RFC will accept stable tips or gratuity income with a two year history.
(D) Wage EarnerCommission
Commission income is defined as a fee or percentage paid to an employee for performing a
service. GMAC-RFC will accept stable commission income with a two year history.
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Exhibit B-1
GMAC-RFC
4D
Page 4D.3
03/13/06
Client Guide
Income Types
D404
Self-Employed Income
GMAC-RFC defines self-employed Borrowers as those who are principals of a corporation,
controlling partners or sole proprietors. Evidence that the Borrower has at least two
consecutive years of self-employment in the same business entity and ongoing, stable
income are required.
Self-Employed income is received directly from a business entity in which the Borrower
holds a majority interest (25%+ stock ownership). Business income must be reported
as a sole proprietorship, partnership or corporation.
Borrowers operating a business on a draw against commission basis but do not have
actual ownership in the parent company, such as insurance or real estate agents, are
considered to be self-employed for qualification purposes.
Borrowers who rely on investments for income (e.g., interest, dividends, capital gains or real
estate) will be treated as self-employed.
To determine a self-employed Borrowers income, the Client must complete the Income
Analysis Worksheets (GMAC-RFC Form 16A01 and Form 1403). The individual tax return
worksheet uses a cash flow analysis of the Borrowers wages and other income. GMAC-RFC
will also allow self-employed income to be calculated using Fannie Maes Self-Employed
Income Analysis Form 1084A or 1084B, and requires compliance with IRS regulations.
GMAC-RFC will consider other income if tax returns indicate it has been received for at least
two years at a consistent level. Interest and dividend income is eligible after deducting that
portion listed on Schedule B which is derived from a partnership or S corporation.
(A) Sole Proprietorship
GMAC-RFC evaluates Schedule C sole proprietorship income using total profit or loss plus any
depreciation or depletion reported, minus the IRS exclusion for entertainment expenses.
Net farm income reported on Schedule F is eligible with the addition of any depreciation,
pension, amortization, depletion or casualty loss expenses.
Capital gain income/losses are considered after subtracting losses incurred on assets
acquired in one of the tax years being analyzed.
Rental income reported on schedule E is used after deducting total expenses to arrive at net
income.
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Exhibit B-1
4D GMAC-RFC
Page 4D.4
03/13/06
Client Guide
Income Types
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Exhibit B-1
GMAC-RFC
4D
Page 4D.5
03/13/06
Client Guide
Income Types
D405
Fixed Income
GMAC-RFC defines fixed income as income derived from sources such as alimony and child
support, social security, pension or disability. If a type of fixed income is used to qualify the
Borrower, the Client must document a history of regular receipt and the probability of
continuance for at least three years.
(A) Non-Taxable Income
Verified non-taxable income will be given special consideration if it is determined that such
income will continue for three years and that it will remain untaxed. Examples of non-taxable
income may include:
Certain military allowances
Disability retirement payments
Workers compensation benefits
Child support payments
Social security distributions
Public assistance payments
Non-taxable trust and inheritance income will be considered provided supporting
documentation is verified.
In order to evaluate a Borrower with non-taxable income in the same manner as a Borrower
who has a higher-taxable income, the underwriter will adjust, or gross-up, the non-taxable
income by 125%.
(B) Fixed Income Types
(1) Alimony, Child Support and Separate Maintenance Income
Alimony, child support and separate maintenance income will be considered, but
must be based on a court order, and verification must include:
A copy of the divorce decree or the court order showing that payments are
obligated for a minimum of three years beyond the date of the Note and
satisfactory proof of regular receipt of monthly payments.
Documentation for alimony, child support and household maintenance income
need not be included in the file if the Borrower chooses not to have these
sources of income considered.
(2) Disability or Workers Compensation Income
Disability or workers compensation income requires verification that the income will
continue for a minimum of three years.
(3) Permanent Disability
Income verification must include a copy of the insurance award letter showing the
percent or dollar amount for the permanent disability.
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Exhibit B-1
4D GMAC-RFC
Page 4D.6
03/13/06
Client Guide
Income Types
D406
Rental Income
(A) Subject PropertyPurchase
(1) Cash flow for the subject property must be calculated by the net cash flow amount
established by the appraiser in the Operating Income Statement (Form 216) or
(2) 75% of actual rents from current lease agreement signed by the current owner and
lessee of the property
(B) Subject PropertyRefinance
Cash flow for the subject property must be calculated by one of the following two methods:
(1) For properties owned for one or more complete tax years, cash flow can be
calculated in one of the following manners:
75% of actual rents, established by copies of signed leases or
1040 tax returns Schedule E
(2) For property owned less than one complete tax year, net cash flow can be based on:
75% of actual rents, established by copies of signed leases or
Net cash flow amount established by the appraiser in the Operating Income
Statement (Form 216)
A positive cash flow is added to gross income; negative net cash flow is added to total
liabilities and used to qualify the Borrower.
A Loan for investment property generating a negative cash flow will be closely scrutinized
and must make sense for the Borrowers circumstances.
If total debt (PITI) for the subject property is being used in the Borrowers Debt-to-Income
Ratio, the above documentation is not required for purchase or refinance transactions.
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Exhibit B-1
GMAC-RFC
4D
Page 4D.7
03/13/06
Client Guide
Income Types
D407
Other Income
When the Borrower discloses income from an alternate source and chooses to use the income
to qualify for the Loan, the Client must document that the income will continue for a
minimum of three years.
GMAC-RFC considers the following types of other income:
Interest and dividend income
Income for Military Reserves not called to active duty
Income used for Military Reserves or National Guard called to active duty
Trust income
Note income
Inheritance and guaranteed income, such as lottery or prize earnings
Temporary disability income
Seasonal unemployment compensation
(A) Interest and Dividend Income
GMAC-RFC recognizes interest and dividend income when the income source is documented
on the application. However, the asset providing the interest and dividend income may not
be liquidated for cash to close unless that portion used is deducted and the interest and/or
dividend amount is recalculated based on the unused portion of the asset.
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Exhibit B-1
4D GMAC-RFC
Page 4D.8
03/13/06
Client Guide
Income Types
D408
Trailing or Relocating Co-Borrower
A maximum of 50% of the trailing or relocating co-Borrowers income may be considered
where:
Co-Borrower has a verified two year employment history
Co-Borrowers occupation is readily marketable in the new location
Co-Borrower is not self-employed
Co-Borrower provides a letter stating his or her intent to seek employment and
A six month PITI cash reserve is verified
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Exhibit B-1
GMAC-RFC
Page 4E.1
03/13/06
Client Guide
Income
Documentation
4E
Income Documentation
This Income Documentation Chapter sets out standards that apply to all GMAC-RFC Loan
Programs. Generally, requirements that vary from one standard Loan Program to another are
described in the individual Loan Program Chapters. In most cases, differences will not be
referenced in this Chapter.
E400
Income Documentation
(A) Income Documentation Standards
While GMAC-RFC requires a minimum of two years employment history, several levels of
income documentation are allowed. Electronic Verifications are acceptable.
Some programs require either a written or verbal verification of employment. Requirements
for employment verification are as follows:
Written verification of employment must contain the following information:
Dates of employment
Position
Prospect of continued employment
Base pay amount and frequency
Additional salary information, itemizing bonus, overtime, tip, gratuity or
commission income, if applicable. If the commission income represents 25% or
more of the Borrowers income, personal tax returns are required. This amount
must be averaged as determined by income documentation type
Verbal verification of employment must contain the following information:
Date of verification
Borrowers date of employment
Borrowers employment status and job title
Name, phone number and title of verifier
Name and title of person making the call
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Exhibit B-1
4E GMAC-RFC
Page 4E.2
03/13/06
Client Guide
Income Documentation
E401
Full Income Documentation Requirements
Full Income Documentation is the most comprehensive form of documentation. Full Income
Documentation requires income verification for most recent two years.
(1) Wage Earner Income
The following documentation is required:
Most recent Paystub(s) showing 30-days YTD income and W-2 Forms for most
recent two years or
Written verification of employment covering most recent two years. The
employer must list the base or hourly income earned for the most recent two
years and year-to-date income. If the number of hours are omitted from the
employment verification, GMAC-RFC will use income figures for the most recent
two years to arrive at an average.
A Borrower employed by a family member or employed by a family held business
may not use verification of employment (either written or verbal) as the sole source
of income. Paystubs and W-2 Forms are required.
If used to qualify, additional salary information itemizing bonus, overtime, tips or
commission income is required. If the commission income represents 25% or more
of the Borrowers income, two years of personal tax returns deducting nonreimbursed business expenses as reported on IRS Form 2106 are required. This
amount must be averaged over the most recent two years unless declining, then the
most recent 12 months will be averaged.
Additional requirement for credit grades B to C:
Verbal verification of employment five days prior to closing to ensure that no
change in employment status has occurred (Verbal Reverification of
Employment, GMAC-RFC Form 1402)
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Exhibit B-1
GMAC-RFC
4E
Page 4E.3
03/13/06
Client Guide
Income
Documentation
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Exhibit B-1
4E GMAC-RFC
Page 4E.4
03/13/06
Client Guide
Income Documentation
Non-Subject Property
Current signed lease agreement or
Most recent two years Schedule E from 1040 (if owned greater than one year
but less than two years, most recent year schedule E from 1040 is
acceptable)
(5) Interest and Dividend Income
Funds used for down payment or closing costs must be subtracted before income is
calculated. The following documentation is required:
Two years IRS Forms 1040 with Schedule B and
Proof of assets to support the interest or dividend income
(6) Trust Income
The following documentation is required:
Trust agreement or Trustees statement outlining:
Total income paid to Borrower as beneficiary
Method of payment
Duration of trust
What portion, if any, of income to Borrower is not taxable and
Two years personal tax returns with all schedules or
K-1 schedule (2 years) or
Two years 1041 fiduciary tax returns
(7) Note Income
The following documentation is required:
Copy of Note and evidence of receipt by either of the following:
Two years tax returns with all schedules
Bank statements showing Note income deposited for most recent two years
(8) Inherited and Guaranteed Income
The following documentation is required:
Award Letter and proof of receipt outlining:
Total income paid to Borrower as beneficiary
Method of payment
Duration of income (must continue at least three years beyond Note date)
What portion, if any, of income to Borrower is not taxable
Two years personal tax returns with all schedules
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Exhibit B-1
GMAC-RFC
4E
Page 4E.5
03/13/06
Client Guide
Income
Documentation
E402
Lite Income Documentation Requirements
Lite Income Documentation is for wage earners using base income only for qualifying
purposes. Borrowers using bonus, overtime, tips or commission income to qualify are not
permitted.
Wage Earner Income
The following documentation is required:
Written verification of employment covering the most recent 12 months or
Paystub(s) for the most recent 30-day period showing YTD income and W-2 Form for
the most recent year.
A Borrower employed by a family member or employed by a family held business may not
use the above verification of employment (either written or verbal) as the sole source of
income documentation. Paystubs and W-2 Forms are required.
E403
One Paystub Income Documentation Requirements
One Paystub Documentation is for wage earners who have two years employment with the
same employer and are using base income only for qualifying purposes. Borrowers using
bonus, overtime, tips or commission income to qualify are not permitted. Borrowers
employed by a family member or employed by a family held business are not permitted for
this Documentation type.
Wage Earner Income
The following documentation is required:
Verification of two years continuous employment with the same employer
Verbal verification of employment
Paystub(s) for the most recent 30-day period showing YTD income.
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Exhibit B-1
4E GMAC-RFC
Page 4E.6
03/13/06
Client Guide
Income Documentation
E404
Fast Income Documentation Requirements
Fast Income Documentation requires income verification for the most recent 12 months.
(1) Wage Earner Income
The following documentation is required:
Most recent Paystub(s) showing 30-days YTD income and W-2 Forms for most
recent 12 months or
Written verification of employment covering most recent 12 months. The employer
must list the base or hourly income earned for the most recent 12 months. If the
number of hours are omitted from the employment verification, GMAC-RFC will use
income figures for the most recent 12 months to arrive at an average.
A Borrower employed by a family member or employed by a family held business
may not use verification of employment (either written or verbal) as the sole source
of income. Paystubs and W-2 Forms are required.
If used to qualify, additional salary information itemizing bonus, overtime, tips or
commission income is required. If the commission income represents 25% or more
of the Borrowers income, the most recent years personal tax return deducting nonreimbursed business expenses as reported on IRS Form 2106 is required. This
amount must be averaged over the most recent 12 months.
Additional requirement for credit grades B to C:
Verbal verification of employment within five days of closing to ensure that no
change in employment status has occurred (Verbal Reverification of
Employment, GMAC-RFC Form 1402)
(2) Self-employed Income
The following documentation is required:
Proof of the existence of the business for two years (business license, business
credit report, etc.)
Most recent year personal tax returns with all schedules
Most recent year business tax returns with all schedules
If more than 120 days has elapsed since filing tax return, a signed and dated
YTD profit and loss statement is required
For the AlterNet Loan Program, 12 months bank statements may be used with the
following conditions:
12 months personal bank statements
The average of the deposits will be used to determine income stream
Atypical deposits may not be included to calculate average balances
The following are not acceptable
Business bank statements
Co-mingled funds
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Exhibit B-1
GMAC-RFC
4E
Page 4E.7
03/13/06
Client Guide
Income
Documentation
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Exhibit B-1
4E GMAC-RFC
Page 4E.8
03/13/06
Client Guide
Income Documentation
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Exhibit B-1
GMAC-RFC
4E
Page 4E.9
03/13/06
Client Guide
Income
Documentation
E405
Stated Income Documentation Requirements
Stated Income Documentation is for Borrowers with established income source(s) and
employment history. Employment stability is a critical component in evaluating the
Borrower's continuing ability to meet obligations. Other factors in the file must demonstrate
the reasonableness of the income stated.
Wage earners must have a two year history of employment in the same business or
line of work and any change must be deemed advancement.
Self-employed Borrowers must have at least two consecutive years of self-employment
in the same business entity.
Income from non-employment sources must have a two year history of receipt.
The Borrowers income be stated on the application. Although no documentation of income is
required, verbal verification of employment is required (e.g., employer name, social security;
ABC Motors pension, etc.). There may be restrictions for Stated Income Documentation. See
the West Virginia Loans Section in Chapter 3C, Finance, Section for details.
(1) Wage Earner Income
Borrowers income must be stated on the application. Although no verification of
income is required, verbal verification of employment is required.
(2) Self-employed Income
The following documentation is required:
Income must be stated on the application
Verification of the existence of the Borrowers business through evidence of a
business license and confirmation of a phone directory listing. If a license is not
required for the business, a signed confirmation of business is required by
Borrowers accountant or CPA
(1) For Fixed, Rental and Other Income Types:
All Other Income and sources must be stated on the application.
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Exhibit B-1
4E GMAC-RFC
Page 4E.10
03/13/06
Client Guide
Income Documentation
E406
No Ratio Documentation Requirements
No Ratio Documentation is for Borrowers with established income source(s) and/or
employment history. Employment stability is a critical component in evaluation the
Borrowers continuing ability to meet obligations.
Wage earners must have a two year history of employment in the same business or
line of work and any change must be deemed advancement.
Self-employed Borrowers must have at least two consecutive years of self-employment
in the same business entity.
Income from non-employment sources must have a two year history of receipt.
The Borrower is not required to disclose his/her income; therefore, the Program has no
qualifying ratio standards. Although no documentation of income is required, the source of
income must be stated on the application (e.g., employer name, social security; ABC Motors
pension, etc.). If income is stated, there must be a reasonable expectation of the Borrowers
ability to repay the debt. There may be restrictions for No Ratio Documentation. See the
West Virginia Loans Section in Chapter 3C, Finance, for details.
(1) Wage Earner Income
Although no verification of income is required, verbal verification of employment is
required.
Salaried Borrowers must have a minimum of two years of continuous employment
with the same employer or in the same line of work. Any employment change must
be deemed a career advancement.
(2) Self-employed Income
Although no verification of income is required, verification of the existence of the
Borrowers business is required through evidence of a business license and
confirmation of a phone directory listing. If a license is not required for the business,
a signed confirmation of business is required by Borrowers accountant or CPA.
(3) For Fixed, Rental and Other Income Types:
Although no verification of income is required, source of income must be stated on
the application.
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Exhibit B-1
GMAC-RFC
4E
Page 4E.11
03/13/06
Client Guide
Income
Documentation
E407
Stated Income/Stated Asset Documentation Requirements
Stated Income/Stated Asset Documentation is for Borrowers with established income
source(s) and/or employment history. Employment stability is a critical component in
evaluating the Borrower's continuing ability to meet obligations. Other factors in the file must
demonstrate the reasonableness of the income stated.
Wage earners must have a two year history of employment in same business or line of
work and any change must be deemed advancement
Self-employed Borrowers must have at least two consecutive years of self-employment
in the same business entity.
Income from non-employment sources must have a two year history of receipt.
The Borrowers income must be stated on the application. Although no documentation of
income is required, verification of income source(s) or employment is required. (e.g.,
employer name, social security; ABC Motors pension, etc.).
The Borrowers assets must be stated on the application. Although no documentation of
assets is required, the financial institution and specific account in which the assets are held in
must be stated on the application (e.g., ABC National Bank checking/savings account,
401(k), Union Pension Fund, XYZ stock portfolio, etc.). There may be restrictions for Stated
Income/Stated Asset Documentation. See the West Virginia Loans Section in Chapter 3C,
Finance, for details.
(1) Wage Earner Income
Borrowers income and assets must be stated on the application. Although no
verification of income is required, verbal verification of employment is required.
(2) Self-employed Income
The following documentation is required:
Income and assets must be stated on the application
Verification of the existence of the Borrowers business through evidence of a
business license and confirmation of a phone directory listing. If a license is not
required for the business, a signed confirmation of business is required by
Borrowers accountant or CPA
(3) For Fixed, Rental and Other Income Types:
All income and income sources must be stated on the application.
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Exhibit B-1
4E GMAC-RFC
Page 4E.12
03/13/06
Client Guide
Income Documentation
E408
No Income/No Asset Documentation Requirements
No Income/No Asset Documentation is for Borrowers with established income source(s) and /
or employment history. Employment stability is a critical component in evaluation the
Borrowers continuing ability to meet obligations.
Wage earners must have a two year history of employment in the same business or
line of work and any change must be deemed advancement.
Self-employed Borrowers must have at least two consecutive years of self-employment
in the same business entity.
Income from non-employment sources must have a two year history of receipt
The Borrower is not required to disclose his/her income; therefore, the program has no
qualifying ratio standards. Although no documentation of income is required, the source of
income must be stated on the application (e.g., employer name, social security; ABC Motors
pension, etc.). If income is stated, there must be a reasonable expectation of the Borrowers
ability to repay the debt.
The Borrower is not required to disclose his/her assets. If assets are stated, they must be
sufficient to cover down payment. There may be restrictions for No Income/No Asset
Documentation. See the West Virginia Loans Section in Chapter 3C, Finance, for details.
(1) Wage Earner Income
Although no verification of income is required, verbal verification of employment is
required.
(2) Self-employed Income
Although no verification of income is required, verification of the existence of the
Borrowers business is required through evidence of a business license and
confirmation of a phone directory listing. If a license is not required for the business,
a signed confirmation of business is required by Borrowers accountant or CPA.
(3) For Fixed, Rental and Other Income Types:
Although no verification of income is required, source of income must be stated on
the application.
E409
No Doc Income
The Borrower is not required to disclose or verify income, income source or assets. If assets
are stated, they must be sufficient to cover down payment. There may be restrictions for No
Doc Income Documentation. See the West Virginia Loans Section in Chapter 3C, Finance,
for details.
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Exhibit B-1
Page 4F.1
03/13/06
Client Guide
Appraisal Requirements &
Property Underwriting
4F
Appraisal Requirements & Property Underwriting
This Appraisals and Property Underwriting Chapter sets out standards that apply to all GMACRFC Loan Programs. Generally, requirements that vary from one standard Loan Program to
another are described in the individual Loan Program Chapters. In most cases, differences
will not be referenced in this Chapter.
F400
Collateral Property Underwriting
The purpose of property underwriting is to determine if a Loan is secured by property that
provides sufficient Value to recover the investment if Loan default occurs. Establishing the
adequacy of the collateral for an investment quality Loan requires an accurate assessment of
the current fair market Value of the property and the factors which are likely to affect the
propertys future Value. The Client must perform this function or must ensure that it is
adequately performed.
(A) The Client must review each appraisal in detail to evaluate the following:
Adequate support for the Value of the property by the appraiser
Present and future marketability of the property
Completeness and correctness of the appraisal forms and exhibits
Applicability and timeliness of data used to determine marketability
Consistency, logic and accuracy of the appraisal
(B) Natural Disasters
In the event the subject property is located in an area that is declared a federal disaster area
after the appraisal has been issued, the Client is responsible to ensure that the property
meets the collateral requirements set forth above and in the No Adverse Circumstances
Section in Chapter 2A of this Client Guide.
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4F GMAC-RFC
Page 4F.2
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Client Guide
Appraisal Requirements &
Property Underwriting
F401
Appraiser Requirements
The appraiser must:
(1) Be a State licensed or certified appraiser.
(2) Meet the independent appraiser requirements for staff appraisers or, as appropriate,
fee appraisers specified by the Office of the Comptroller of the Currency, the Board
of Governors of the Federal Reserve System, the FDIC and the Office of Thrift
Supervision with their respective real estate appraisal regulations adopted in
accordance with Title XI of the Financial Institutions Reform, Recovery and
Enforcement Act of 1989 (regardless of whether the Client is subject to those
regulations).
(3) Be experienced in the appraisal of properties similar to the type being appraised.
(4) Be actively engaged in appraisal work.
(5) Subscribe to a code of ethics that is at least as strict as the code of the American
Institute of Real Estate Appraisers or the Society of Real Estate Appraisers.
Discontinuance of Appraiser Services
(1) The Client agrees to inform GMAC-RFC immediately if, for any cause, it discontinues
using the services of any appraiser who has made appraisals for Loans offered for
sale to GMAC-RFC.
(2) GMAC-RFC may at any time notify the Client that it will no longer purchase Loans
secured by Mortgaged Premises that were appraised by a particular appraiser.
F402
Appraisal Requirements
All appraisals must be in writing. Electronic Verifications are acceptable, but must be in a
standard format as outlined in Required Appraisal Forms. The Client must ensure that all
appraisals are performed in strict accordance with all applicable local, State and federal laws,
regulations and orders. In addition, all appraisals shall conform to the current Uniform
Standards of Professional Appraisal Practice adopted by the Appraisal Standards Board of the
Appraisal Foundation.
The Client must review each appraisal in detail for completeness, accuracy and appraising
logic. Also, the Client assumes sole responsibility for the quality of the appraisal report as
well as its execution in strict accordance with all applicable local, State and federal laws,
regulations and orders.
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Exhibit B-1
4F
Page 4F.3
03/13/06
Client Guide
Appraisal Requirements &
Property Underwriting
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Exhibit B-1
4F GMAC-RFC
Page 4F.4
03/13/06
Client Guide
Appraisal Requirements &
Property Underwriting
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Exhibit B-1
4F
Page 4F.5
03/13/06
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Appraisal Requirements &
Property Underwriting
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4F GMAC-RFC
Page 4F.6
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Appraisal Requirements &
Property Underwriting
F403
Appraisal Evaluation
The appraisal information must provide a logical basis for evaluation. The appraiser must
present a concise picture of the neighborhood, site and improvements to support an
indicated Value by the cost approach and market data approach that adequately support the
estimate of market Value. The Client must determine that the appraiser has adequately
supported his or her opinion of the propertys Value.
When working with varying levels of credit quality, property valuation takes on increased
importance. While the adequacy of the appraisal is always a critical component in assessing
the Loans overall risk, the property becomes more important when working with the nonconforming credit Borrower or with a property that deviates from typical market standards.
Therefore, the appraisal report must strongly demonstrate the acceptability of the collateral.
Differences in acceptable property types and characteristics are determined by the Loan
Program under which the Loan is submitted. Higher credit grade Borrowers compensate for
expansion into higher risk property types. For instance, within GMAC-RFCs Expanded
Criteria Program, property types that traditionally present greater risk (such as CondoHotel) are acceptable as long as the Borrowers credit grade meets the standards of the
program (A quality as defined by grades A1 to A3, as defined in the Credit Evaluation
Components Section of Chapter 4A, Credit).
GMAC-RFC uses the components discussed below to assess the adequacy of appraisal
reports:
(A) Neighborhood Analysis
The neighborhood in which a property is located is a critical determinant of its marketability
and Value. The Client must analyze all factors presented in the appraisals Neighborhood
section. Favorable or unfavorable factors and any changes that have occurred in the prior
year that affect marketability of the properties within the neighborhood, must be addressed
by both the appraiser and Client.
In a neighborhood analysis, GMAC-RFC considers all elements of the propertys location
including:
Neighborhood property Values
Composition of the neighborhood
Marketing time
Present land use of the neighborhood
Price range and predominant Value
(1) Neighborhood Property Values
Property Values must be stable or increasing. The appraiser must substantiate this
by showing comparable sales within six months of the appraisal date.
Declining Values are a concern due to the potential for equity erosion. When a
property is located in an area described as declining in Value, GMAC-RFC may
consider the transaction when there is a substantial reduction in the Loan-to-Value
ratio.
Second Mortgage Programs restrict the CLTV limits available in areas of property
decline.
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Exhibit B-1
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Page 4F.7
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Appraisal Requirements &
Property Underwriting
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4F GMAC-RFC
Page 4F.8
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Client Guide
Appraisal Requirements &
Property Underwriting
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Exhibit B-1
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Page 4F.9
03/13/06
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Appraisal Requirements &
Property Underwriting
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4F GMAC-RFC
Page 4F.10
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Appraisal Requirements &
Property Underwriting
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GMAC-RFC
4F
Page 4F.11
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Appraisal Requirements &
Property Underwriting
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4F GMAC-RFC
Page 4F.12
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Appraisal Requirements &
Property Underwriting
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Exhibit B-1
4F
Page 4F.13
03/13/06
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Appraisal Requirements &
Property Underwriting
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Exhibit B-1
4F GMAC-RFC
Page 4F.14
03/13/06
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Appraisal Requirements &
Property Underwriting
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Exhibit B-1
4F
Page 4F.15
03/13/06
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Appraisal Requirements &
Property Underwriting
F404
Additional Review Considerations
Attached housing and multiple units add another level of complexity when analyzing the
collateral securing the Loan. In addition to the neighborhood, site, improvement and market
analysis already discussed above, the Client must note these additional components when
appraising two to four unit properties, condominiums and PUDs.
(A) Two to Four Unit Properties
Two to four unit properties present another level of property risk. Their marketability is tied
to their level of rent commanded by the property and its compatibility with the
neighborhood.
(1) Neighborhood
The extent to which other small residential income properties are located in the area
will influence the marketability of the subject. Market rents must be stable or
increasing. The appraisers statement of market rents will be assessed by the
comparable rental properties used for comparison.
The appraiser must also consider rent controls and the amount of vacancies when
assessing the propertys appeal. Excessive vacancies may reflect a lack of
marketability and must be considered when making a decision to lend on the
property.
(2) Comparable Rental Data
Market rent is an estimate of the propertys potential to generate income from its
units. Rental data must be supplied from other small income producing properties
that are similar in number of units, room count and living area. Rental comparables
must be readily available and in close proximity to the subject. Going out of the
immediate neighborhood to obtain rental comparables might suggest a lack of rental
activity and therefore, lack of marketability.
(3) Comparable Market Data
GMAC-RFC will analyze the adequacy of the comparable sales by the date of sale,
proximity to the subject and number and amount of adjustments. As in the rental
comps, the appraiser must assess the similarity of the sales comps to the subject in
terms of gross building area, unit count and room count.
(B) Condominiums
(1) Neighborhood
The presence of other condominium projects in the subjects market area indicates
the appeal and marketability of the condominium under review. Marketability of a
single condominium project will be difficult to demonstrate if the neighborhood lacks
competing projects.
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Appraisal Requirements &
Property Underwriting
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Exhibit B-1
4F
Page 4F.17
03/13/06
Client Guide
Appraisal Requirements &
Property Underwriting
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4F GMAC-RFC
Page 4F.18
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Client Guide
Appraisal Requirements &
Property Underwriting
Exhibit B-1
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Exhibit B-1
Page 4G.1
03/13/06
Client Guide
Underwriting
Electronic Services
4G
Electronic Services
This Electronic Services Chapter sets out standards that apply to all GMAC-RFC Loan
Programs. Generally requirements that vary from one standard Loan Program to another are
described in the individual Loan Program Chapters. In most cases, differences will not be
referenced in this Chapter.
G400
Overview and Incorporation of Terms of Use
Clients may be eligible to use various Web-based electronic services offered by GMAC-RFC for
its sellers, including such electronic services as Assetwise, the Assetwise Compliance Engine,
and Assetlock.
Clients who wish to use any of the electronic services must first obtain a User ID and
password for each of the Clients individual users from the Clients GMAC-RFC Business
Analyst or other electronic commerce support team members. GMAC-RFC may make one or
more of the electronic services available through those User IDs, depending on the requests
and needs of the Client.
By requesting or using any User IDs for the GMAC-RFC electronic services, Client agrees to
the current Terms of Use for each particular electronic service posted on or linked through
the GMAC-RFC Lender Portal at www.gmacresidentialfunding or the individual Web pages
dedicated to the particular electronic service. GMAC-RFC may amend any such Terms of Use
by posting the amended Terms of Use on those same Web pages. Clients use of the
electronic service after such posting shall constitute Clients agreement to the amended
Terms of Use. The Terms of Use are intended to supplement the terms of this Client Guide. In
the event of an irreconcilable conflict between any Terms of Use and this Client Guide, the
Terms of Use shall prevail.
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Page 4G.2
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Client Guide
Underwriting
Electronic Services
G401
Assetwise
(A) Overview
In addition to any applicable Terms of Use for the Assetwise electronic service, Clients use of
Assetwise is subject to the following provisions.
Assetwise is GMAC-RFCs automated Loan evaluation tool. By utilizing Assetwise, the Client
can submit Loans electronically and receive a GMAC-RFC credit grade and program
determination (slot) within a matter of minutes. Loans evaluated by Assetwise and approved
by the Client may receive a streamlined review process when submitted to GMAC-RFC for
purchase.
Assetwise will help Clients diversify products while using existing origination platforms and
resources. Additionally, Assetwise automates the submission and evaluation process by
integrating with Assetlock, GMAC-RFCs Internet based Loan registration tool.
(B) Client Responsibilities and Exclusions
Clients who use the Assetwise electronic services are still bound by the representations and
warranties as set forth in this Client Guide. By submitting Loans to GMAC-RFC, Clients
represent that all data provided on the approved Assetwise Findings Report accurately
reflects the information contained in the Loan file.
Additionally, use of Assetwise does not relieve Clients of Loan eligibility and underwriting
requirements set forth in this Client Guide.
Assetwise cannot fully analyze Loans with certain characteristics. Clients are responsible for
adhering to specific product requirements such as reduced LTV for Loans with characteristics
such as, but not limited to the following:
Non-arms length transactions
Non-warrantable condominiums
Properties with acreage in excess of 10 acres
Loans with Borrowers who are non-US residents or who are not employed in the United
States
Contracts for deed
Lease with option to purchase transactions
Rural Properties
Foreign nationals
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4G
Page 4G.3
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Underwriting
Electronic Services
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4G GMAC-RFC
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Underwriting
Electronic Services
(2) An Assetwise approval will be considered if it is dated after the Note date, under the
following conditions:
(a) An Assetwise approval is valid for 120 days after the Note date; however, the
credit report used for the evaluation must be dated prior to the Note date.
(b) Regardless of when the Assetwise approval was issued, the credit
documentation must meet the requirements set forth in this Client Guide.
For first mortgage Loan Programs, the message on the Assetwise Findings
Report is as follows: The credit report used for this evaluation is dated
mm/dd/yy. All Credit Documents must be dated no more than 120 days
prior to the Note date for existing construction and 180 days for new
construction, according to program guidelines.
For the 125 CLTV Program, the message on the Assetwise Findings Report
is as follows: The credit report used for this evaluation is dated mm/dd/yy.
All Credit Documents must be dated no more than 120 days prior to the
Note date with the exception to the credit report, which must be dated no
more than 45 days prior to the Note date, according to program
guidelines.
For the Goal Loan and Goal Line Programs, the message on the Assetwise
Findings Report is as follows: The credit report used for this evaluation is
dated mm/dd/yy. All Credit Documents must be dated no more than 180
days prior to the Note date with the exception to the credit report, which
must be dated no more than 120 days prior to the Note date, according to
program guidelines.
(D) Delivery Process
For immediate identification of an Assetwise approved Loan, the Assetwise Findings Report
should be placed on top of the Legal Documents on the left side of the file.
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Page 4G.5
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Client Guide
Underwriting
Electronic Services
G402
Assetwise Compliance Engine
(A) Overview
In addition to any applicable Terms of Use for the Assetwise Compliance Engine electronic
service, Clients use of the Assetwise Compliance Engine electronic service is subject to the
following provisions.
The Assetwise Compliance Engine is GMAC-RFCs automated evaluation tool for determining
whether a Loan may be ineligible for purchase because the Loan may be:
A loan considered a mortgage under Section 152 of the Home Ownership and Equity
Protection Act of 1994, 15 U.S.C. Section 1602 (aa) and the related regulations and
commentary promulgated by the Federal Reserve Board, including Section 226.32 of
Title 12 of the Code of Federal Regulations, and the official staff commentary to those
regulations.
A loan considered a high-cost, covered, high-risk, predatory or any other similar
designation under certain State or local laws in effect at the time of the closing of the
loan if the law imposes greater restrictions or additional legal liability for residential
mortgage loans with high interest rates, points and/or fees. The Assetwise Compliance
Engine tests some, but not all, of these laws.
A pass does not guarantee that the Loan complies with the law tested or with any other
laws. It is an indication of whether the Loan may be eligible for purchase by GMAC-RFC. By
utilizing the Assetwise Compliance Engine, the Client can input the fees that will be charged
to the Borrower at the time of closing of the Loan and receive a GMAC-RFC determination
within a matter of minutes. Client's use of the Assetwise Compliance Engine can assist the
Client in avoiding rejections.
(B) Client Responsibilities and Exclusions
Clients that use the Assetwise Compliance Engine are still bound by the representations and
warranties as set forth in this Client Guide. By submitting Loans to GMAC-RFC, Clients
represent that all data provided in an Assetwise Compliance Engine approval accurately
reflects the information contained in the Loan file.
Additionally, use of the Assetwise Compliance Engine does not relieve Clients of Loan
eligibility and underwriting requirements set forth in this Client Guide. Use of the Assetwise
Compliance Engine is voluntary on Clients part, and is not a requirement for sale of Loans to
GMAC-RFC.
Certain types of Loans may be ineligible for evaluation through the Assetwise Compliance
Engine. Those types will be indicated as ineligible at the time the Loan is submitted to the
Assetwise Compliance Engine for evaluation.
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4G GMAC-RFC
Page 4G.6
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Client Guide
Underwriting
Electronic Services
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Exhibit B-1
Page 5.1
03/13/06
Client Guide
Products
5
Products
500
Product Descriptions
The following Sections outline GMAC-RFCs Loan products, as well as how they apply to
GMAC-RFCs available programs. The information appears in chart form for easy comparison
(A) Available First Mortgage Loan products
Fixed Rate:
FRM-30
FRM-15
LIBOR ARMs:
One Month LIBOR ARM
Six Month LIBOR ARM
One Year-Six Month LIBOR ARM
Two Year-Six Month LIBOR ARM
Three Year-Six Month LIBOR ARM
Five Year-Six Month LIBOR ARM
Seven Year-Six Month LIBOR ARM
Ten Year-Six Month LIBOR ARM
One Year LIBOR ARM
Two-One LIBOR ARM
Three-One LIBOR ARM
Five-One LIBOR ARM
Seven-One LIBOR ARM
Ten-One LIBOR ARM
COFI ARM:
One Month COFI ARM
MTA ARM:
One Month MTA ARM
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Products
Treasury ARMs:
One Year Treasury ARM
Three-One Treasury ARM
Five-One Treasury ARM
Seven-One Treasury ARM
Ten-One Treasury ARM
Balloon:
30/15 Balloon
1st Lien Line of Credit:
25 year term Prime Rate ARM; 10 year Draw Period with Interest Only payments,
followed by a 15 year amortized repayment period
(B) Available Home Equity Loan products:
Line of Credit
Closed-End Second (which is fully amortized)
Closed-End Second (which has a balloon feature)
(C) Secondary Financing
If the Borrower includes Secondary Financing, the Client must calculate the mortgage
insurance on the LTV ratio using only the primary Loan and not on the Secondary Financing.
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Exhibit B-1
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Client Guide
Products
501
Fixed-Rate Mortgages (FRM)
(A) Fixed-Rate Mortgage 30 (FRM-30)
See the table immediately following for descriptions of this product and its application to the
Jumbo A, Expanded Criteria, Home Solution and AlterNet Programs.
(1) Jumbo A/Expanded Criteria Servicing Fee
The minimum Servicing Fee is 0.25%. This fee may be negotiated by contacting
your marketing personnel.
(B) Fixed-Rate Mortgage 15 (FRM-15)
See the table immediately following for descriptions of this product and its application to the
Jumbo A, Expanded Criteria, Home Solution and AlterNet Programs.
(1) Jumbo A/Expanded Criteria Servicing Fee
The minimum Servicing Fee is 0.25%. This fee may be negotiated by contacting
your marketing personnel.
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Products
40/30 Balloon
Original term of 30 years with payments
based on 40 year amortization.
Term
Amortization
Fully amortized over the term of the Loan. The amortized period is 40 years. A
balloon payment is due of the remaining
principal balance and any interest or fees
at the end of 30 years.
Conversion Option
Temporary Buydown
Temporary Buydowns are permitted under these programs when designed within the
parameters published in the Loan Programs Chapter of this Client Guide.
Servicing Released
The Client may sell FRM-30 Loans servicing released to GMAC-RFC either at the time
the delivery Commitment is obtained, or at any time after it is purchased by GMACRFC.
If partial prepayment/principal curtailment is made during the Interest Only period, the
amount of the monthly payment must be recalculated to reflect the payment change
for the remainder of the term when payments consist only of interest.
Interest Only
Servicing
Interest Only payments are not permitted with 40 year balloon feature.
Assumability
Not Assumable
Loan Documents
Disclosure
For Loans with a 40/30 Balloon feature, use of the GMAC Loan Disclosure is
recommended. See GMACResidentialFunding.com for Legal Documents.
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Products
FRM-30
The FRM-30 is a Mortgage which has an interest rate that is fixed over the term of the Loan.
Home Solution
Original term of 15 years one month to 30 years.
Term
Amortization
Conversion Option
Servicing Released
The Client is required to sell FRM-30 Loans to GMAC-RFC servicing released at the time
the delivery Commitment is obtained.
Interest Only
Servicing
N/A
Assumability
Not Assumable
Loan Documents
Disclosure
The Client must ensure that any description of the lenders program furnished to
Borrowers complies with applicable State and federal laws and regulations.
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Client Guide
Products
FRM-30
(including 40/30 Balloon and 40 Year Recast)
The FRM-30 is a Mortgage which has an interest rate that is fixed over the term of the Loan. The AlterNet Program
includes Interest Only, 40/30 Balloon and 40 Year Recast features.
Loans with a 40/30 Balloon feature have fixed-rate payments based on 40 year amortization with a balloon payment
due at the end of the 30 years.
Loans with a 40 Year Recast feature have fixed-rate payments that are amortized over 40 years for the first ten
years. After the first ten years the Loan is fully amortized for the remainder of the 30 year term.
AlterNet
Standard Product
Original term of 15 years
one month to 30 years.
40/30 Balloon
Original term of 30 years
with payments based on 40
year amortization.
40 Year Recast
Original term of 30 years.
Term
Fully amortized over the
term of the Loan.
Amortization
Conversion Option
Temporary Buydown
Servicing Released
The Client is required to sell FRM-30 Loans to GMAC-RFC servicing released at the time
the delivery Commitment is obtained.
Interest Only
Servicing
If partial prepayment/principal curtailment is made during the Interest Only period, the
amount of the monthly payment must be recalculated to reflect the payment change
for the remainder of the term when payments consist only of interest.
Interest Only payments are not permitted with 40/30 Balloon or 40 Year Recast
features.
Assumability
Not Assumable
Loan Documents
Disclosure
For Loans with a 40/30 Balloon or 40 Year Recast feature, use of the GMAC Loan
Disclosure is recommended. See GMACResidentialFunding.com for Loan Disclosure.
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Products
FRM-15
The FRM-15 is a Mortgage which has an interest rate that is fixed over the term of the Loan. The AlterNet Loan
Program includes an Interest Only feature.
Jumbo A and
Expanded Criteria
Home Solution
Term
Amortization
Fully amortized over the term of the Loan. Fully amortized over the term of the Loan.
Conversion Option
Temporary Buydown
Temporary Buydowns are permitted under Temporary Buydowns are not permitted.
these programs when designed within the
parameters published in the Loan
Programs Chapter of this Client Guide.
Servicing Released
Assumability
Not Assumable.
Not Assumable.
Loan Documents
Disclosure
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Products
FRM-15
The FRM-15 is a Mortgage which has an interest rate that is fixed over the term of the Loan. The AlterNet Loan
Program includes an Interest Only feature.
AlterNet
Original term of one year to 15 years.
Term
Amortization
Conversion Option
Interest Only Feature of principal and interest for the remaining term of the Loan.
Temporary Buydown
Servicing Released
The Client is required to sell FRM-15 Loans to GMAC-RFC servicing released at the time
the delivery Commitment is obtained.
Interest Only
Servicing
If partial prepayment/principal curtailment is made during the Interest Only period, the
amount of the monthly payment must be recalculated to reflect the payment change
for the remainder of the term when payments consist only of interest.
Assumability
Not Assumable.
Loan Documents
Disclosure
For Loans with an Interest Only feature, GMAC-RFC requires that an Interest Only
Disclosure be provided to the Borrower at the time of application. See
GMACResidentialFunding.com for sample disclosure.
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Products
502
Adjustable Rate Mortgages (ARM)
(A) One Month LIBOR ARM
See the table immediately following for descriptions of this product and its application to the
Jumbo A, Expanded Criteria, and Payment Option Programs.
(B) One Month COFI ARM
See the table immediately following for descriptions of this product and its application to the
Payment Option Program.
(C) One Month MTA ARM
See the table immediately following for descriptions of this product and its application to the
Payment Option Program.
(D) Six Month LIBOR ARM
See the table immediately following for descriptions of this product and its application to the
AlterNet, Jumbo A and Expanded Criteria Programs.
(E) One Year-Six Month LIBOR ARM
See the table immediately following for descriptions of this product and its application to the
Jumbo A Program.
(1) Jumbo A Conversion Option
The conversion option allows for convertibility of the One Year-Six Month LIBOR ARM
to a fixed-rate mortgage Loan. Conversion is allowed beginning on the first change
date and ending on the tenth change date provided all the conditions set forth are
met in the Note and Adjustable Rate Rider, Section 5 (a) Option to Convert to Fixed
Rate, including the condition that no payments in the past 12 months have been 30
days or more past due.
The Client must repurchase the Loan upon conversion, unless it is sold on a servicing
released basis.
GMAC-RFC must receive notice of conversion, either in writing or by telephone, no
less than 15 days prior to the date the Loan converts from a One Year-Six Month
LIBOR ARM to a fixed-rate mortgage. The Client must notify GMAC-RFCs Loan
Accounting Department. For the address, see Loan Accounting Department in
Chapter 10, Definitions.
(2) Jumbo A Calculation of Fixed Rate
The Note and Rider must provide for the calculation of the fixed rate using one of the
following formulas:
GMAC-RFCs FRM-30, 60 day mandatory net rate plus a minimum of 0.50%,
rounded to the nearest 0.125 of 1.00%
The Fannie Mae or Freddie Mac 30 year, 60 day mandatory net rate plus a
minimum of 1.125, rounded to the nearest 0.125 of 1.00%
Unless otherwise restricted under State law, the Note and applicable Rider must
provide for a minimum conversion fee of $250 to cover the Clients cost of
processing the conversion.
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Exhibit B-1
5 GMAC-RFC
Page 5.10
03/13/06
Client Guide
Products
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GMAC-RFC
Exhibit B-1
Page 5.11
03/13/06
Client Guide
Products
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Doc 45-3
Exhibit B-1
5 GMAC-RFC
Page 5.12
03/13/06
Client Guide
Products
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Doc 45-3
GMAC-RFC
Exhibit B-1
Page 5.13
03/13/06
Client Guide
Products
14-01915-mg
Doc 45-3
Exhibit B-1
5 GMAC-RFC
Page 5.14
03/13/06
Client Guide
Products
14-01915-mg
Doc 45-3
GMAC-RFC
Exhibit B-1
Page 5.15
03/13/06
Client Guide
Products
14-01915-mg
Doc 45-3
Exhibit B-1
5 GMAC-RFC
Page 5.16
03/13/06
Client Guide
Products
14-01915-mg
Doc 45-3
GMAC-RFC
Exhibit B-1
Page 5.17
03/13/06
Client Guide
Products
14-01915-mg
Doc 45-3
Exhibit B-1
5 GMAC-RFC
Page 5.18
03/13/06
Client Guide
Products
14-01915-mg
Doc 45-3
GMAC-RFC
Exhibit B-1
Page 5.19
03/13/06
Client Guide
Products
14-01915-mg
Doc 45-3
Exhibit B-1
5 GMAC-RFC
Page 5.20
03/13/06
Client Guide
Products
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GMAC-RFC
Exhibit B-1
Page 5.21
03/13/06
Client Guide
Products
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Doc 45-3
Exhibit B-1
5 GMAC-RFC
Page 5.22
03/13/06
Client Guide
Products
Original term of 30 or 40 years. Loans with a balloon feature have an original term of 30
years with payments based on 40 year amortization.
Commitments for seasoned Loans must be negotiated on an individual basis.
Amortization
Amortized over the term of the Loan. If an interest rate change occurs, the outstanding
principal balance will be re-amortized over the remaining term of the Loan.
Loans with a balloon feature are amortized over 40 years; a balloon payment of the
remaining principal balance and any interest and applicable fees is due at the end of 30
years.
Deferred
Interest
Loans under this program have the potential for negative amortization or deferred
interest.
The maximum deferred interest (negative amortization) allowed for this program is
115%. State of New York is limited to a maximum of 110%.
Conversion
Option
Payment Options
Payment options are available when the payment amounts of the options are greater than
the required Minimum Payment.
Initial Payment
Minimum
Payment
The lowest monthly payment available (smallest amount of interest and, if applicable,
principal). The initial Minimum Payment is the principal and interest that would fully
amortize the Loan in 30 years at the start rate. Thereafter the Minimum Payment is recalculated annually and is subject to a payment cap of 7.5% increase (from the previous
minimum payment), life interest rate cap, and maximum negative amortization allowed.
The actual Loan interest rate may change monthly.
A Minimum Payment may not pay all the interest accrued on the Loan for the previous
month. The interest not paid is called deferred interest or negative amortization and is
added to the total principal the Borrower owes monthly.
Payment
Adjustment
Dates and Caps
The first Minimum Payment adjustment date occurs when the 13th monthly payment is
due and every 12 months thereafter. The new Minimum Payment is a fully amortizing
amount based on the current interest rate, outstanding principal balance, and remaining
term; subject to the payment cap.
The Minimum Monthly Payment is recalculated every 12 months and is subject to a
payment amount cap the 7.5%. The mortgage is recast every five years without
consideration of the payment cap.
Recast
The Loan is re-amortized every fifth year based on the remaining term at the current
interest rate and the unpaid balance. This amount becomes the new Minimum Payment
until the next scheduled Payment Change Date. At time of Recast the payment cap of
7.5% does not apply.
The Loan may also be recast immediately if the unpaid principal balance reaches or
exceeds 115% (110% in New York State) of the original Loan amount.
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Exhibit B-1
GMAC-RFC
Page 5.23
03/13/06
Client Guide
Products
The qualifying rate is the fully amortizing payment at the greater of 4.25% or the fully
indexed rate.
Temporary
Buydown
Servicing
Released
The Client is required to sell Payment Option Loans servicing released to GMAC-RFC at
the time the delivery Commitment is obtained. The servicing release premium is included
in the posted price.
Assumability
Assumptions are permitted in accordance with the due-on-sale clause provided in the
Security Instrument and/or Note and if the new Borrower meets all credit underwriting
criteria in accordance with the policy stated in the Servicer Guide.
The index rate is not used to determine the initial rate, however, it is used to determine
a new interest rate at the time of each adjustment.
If the index ceases to be available, GMAC-RFC will choose a new index based upon
comparable information.
LIBOR
The index is the average of the London Interbank Offered Rates (LIBOR) for one month
U.S. dollar-denominated deposits, as published in The Wall Street Journal. The most
recent index figure available as of the first date 15 days before each Interest Rate Change
Date is called the Current Index.
MTA
The Index is the Twelve-Month Average of the annual yields on actively traded United
States Treasury Securities adjusted to a constant maturity of one year as published by
the Federal Reserve Board in the Federal Reserve Statistical Release entitled Selected
Interest Rates (h.15) (the Monthly Yields). The Twelve Month Average is determined
by adding together the Monthly Yields for the most recently available 12 months and
dividing by 12. The most recent Index figure available as of the date 15 days before each
Change Date is called the Current Index.
COFI
Index Options
The Index is the monthly weighted average cost of savings, borrowings and advances
of members of the Federal Home Loan Bank of San Francisco (the Bank), as made
available by the Bank. The most recent Index figure available as of the date 15 days
before each Change Date is called the Current Index.
Margin
ARM Interest
Rate
The ARM interest rate (Note rate) is the interest rate the Borrower must pay under the
Note. Initially, this will be the posted gross rate quoted by GMAC-RFC.
After the initial Adjustment Period the ARM interest rate may change every month. At the
time of each interest rate change, the ARM interest rate will be the sum of the Note
Margin and the index, rounded to the nearest 0.125 of 1%, subject to the interest rate
caps.
Interest Rate
Payment Caps
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5 GMAC-RFC
Page 5.24
03/13/06
Client Guide
Products
Interest Rate,
Change Date &
Adjustment
Period
One-Month Option
The first interest rate change date may occur when the first payment is due. Subsequent
interest rate changes may occur every month, based on the movement of the Index. The
interest rate may change every month, however, the Minimum Payment may change
annually.
Three-Month Option
The first interest rate change date may occur when the third payment is due. Subsequent
interest rate changes may occur every month, based on the movement of the Index. The
interest rate may change month, however, the Minimum Payment may change annually.
Loan Documents
Disclosure
The Client must ensure that any description of the lenders program furnished to
Borrowers complies with applicable State and federal laws and regulations.
See GMACResidentialFunding.com for Payment Option Legal Documents.
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Exhibit B-1
GMAC-RFC
Page 5.25
03/13/06
Client Guide
Products
Original term of not more than 30 years. Commitments for seasoned Loans must be
negotiated on an individual basis.
Amortization
Fully amortized over the term of the Loan. If an interest rate change occurs, the
outstanding principal balance will be re-amortized over the remaining term of the Loan.
Conversion
Option
Interest Only
Feature
Interest Only payments are due for the first ten years, followed by monthly payments of
principal and interest for the remaining years of the Loan.
ARM
Qualification
Temporary
Buydown
Servicing
Released
The Client is required to sell One Month LIBOR ARMs servicing released to GMAC-RFC at
the time the delivery Commitment is obtained. The servicing release premium is included
in the posted price.
Interest Only
Servicing
If partial prepayment/principal curtailment is made during the Interest Only period, the
amount of the monthly payment must be recalculated to reflect the payment change for
the remainder of the term when payments consist of only interest.
Assumability
Assumptions are permitted in accordance with the due-on-sale clause provided in the
Security Instrument and/or Note and if the new Borrower meets all credit underwriting
criteria in accordance with the policy stated in the Servicer Guide.
Index
The Index is the average of the London Interbank Offered Rates (LIBOR) for one month
U.S. dollar-denominated deposits, as published in The Wall Street Journal. The Client
must use the most recent index figure available as of the date 15 days before each
Interest Rate Change Date is called the Current Index.
Margin
ARM Interest
Rate
The ARM interest rate (Note rate) is the interest rate the Borrower must pay under the
Note. Initially, this will be the sum of the authorized net rate quoted by GMAC-RFC, and
the Servicing Fee. After the initial Adjustment Period the ARM interest rate may change
once every month. At the time of each interest rate change, the ARM interest rate will be
the sum of the Note Margin and the index, rounded to the nearest 0.125 of 1%, subject
to the interest rate caps.
Interest Rate
Payment Caps
Interest Rate,
Change Date &
Adjustment
Period
The interest rate change date may occur when the first payment is due. Subsequent
interest rate changes may occur every month after the first interest rate change date
based on the movement of the index.
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Doc 45-3
Exhibit B-1
5 GMAC-RFC
Page 5.26
03/13/06
Client Guide
Products
Disclosure
Language stating that monthly payments will be higher after the Interest Only period
unless the Borrower has made additional payments to reduce the principal balance
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Doc 45-3
Exhibit B-1
GMAC-RFC
Page 5.27
03/13/06
Client Guide
Products
Jumbo A and
Expanded Criteria
AlterNet
Term
Commitments for seasoned Loans must be Commitments for seasoned Loans must be
negotiated on an individual basis.
negotiated on an individual basis.
Amortization
Conversion Option
Temporary Buydown
Servicing Released
Interest Only
Servicing
If partial prepayment/principal
curtailment is made during the Interest
Only period, the amount of the monthly
payment must be recalculated to reflect
the payment change for the remainder of
the term when payments consist only of
interest.
If partial prepayment/principal
curtailment is made during the Interest
Only period, the amount of the monthly
payment must be recalculated to reflect
the payment change for the remainder of
the term when payments consist only of
interest.
Assumability
ARM Qualification
Index
If the index ceases to be available, GMAC- If the index ceases to be available, GMACRFC will choose a new index based upon
RFC will choose a new index based upon
comparable information.
comparable information.
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Exhibit B-1
5 GMAC-RFC
Page 5.28
03/13/06
Client Guide
Products
Jumbo A and
Expanded Criteria
AlterNet
Margin
Periodic Cap 6%
Periodic Cap 1%
Lifetime Cap 6%
Loan Documents
Disclosure
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Doc 45-3
Exhibit B-1
GMAC-RFC
Page 5.29
03/13/06
Client Guide
Products
Jumbo A
Original term of not more than 30 years.
Term
Amortization
Fully amortized over the term of the Loan. If an interest rate change occurs, the
outstanding principal balance will be re-amortized over the remaining term of the
Loan.
May be originated with or without a conversion option. The conversion option may be
exercised beginning on the first change date and ending on the tenth change date.
Conversion Option
Borrowers must meet the Note and Rider requirements as well as the criteria outlined
under the Jumbo A Conversion Option in this Section.
Two options exist:
Interest Only payments are due for the first year, followed by monthly payments of
principal and interest for the remaining term of the Loan.
Interest Only payments are due for the first ten years, followed by monthly payments
of principal and interest for the remaining term of the Loan.
ARM Qualification
The qualifying rate is the maximum interest rate that could be in effect at the beginning
of the second year.
Temporary Buydown
Servicing Released
The Client may sell One Year-Six Month LIBOR ARM Loans servicing released to GMACRFC either at the time the delivery Commitment is obtained, or at any time after it is
purchased by GMAC-RFC.
Interest Only
Servicing
Assumability
If the Loan converts to a fixed-rate mortgage, the due-on-sale clause will be effective
and assumptions are not permitted.
The index is the average of the London Interbank Offered Rates (LIBOR) for six month
U.S. dollar-denominated deposits, as published in The Wall Street Journal. The Client
must use the most recent index figure available as of the first Business Day of the
month immediately preceding the month in which the interest rate change date occurs.
The index rate is not used to determine the initial rate, however, it is used to determine
a new interest rate at the time of each adjustment.
Index
If the index ceases to be available, GMAC-RFC will choose a new index based upon
comparable information.
Margin
After the initial Adjustment Period the ARM interest rate may change once every six
months. At the time of each interest rate change, the ARM interest rate will be the sum
of the Note Margin and the index, rounded to the nearest 0.125 of 1%, subject to the
interest rate caps.
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Exhibit B-1
5 GMAC-RFC
Page 5.30
03/13/06
Client Guide
Products
Jumbo A
First Interest Rate Cap 2%
Periodic Cap 1%
Lifetime Cap 6%
Lifetime Floor = Margin
The stated interest rate caps are the minimum required. For additional options contact
your GMAC-RFC Sales Director.
Caps are subject to change without notice. See GMAC-RFCs Internet Portal at
GMACResidentialFunding.com for current caps.
The interest rate change date may occur when the 12th payment is due. Subsequent
interest rate changes may occur every six months after the first interest rate change
date based on the movement of the index.
Loan Documents
Disclosure
Language stating that monthly payments will be higher after the Interest Only period
unless the Borrower has made additional payments to reduce the principal balance
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GMAC-RFC
Page 5.31
03/13/06
Client Guide
Products
Expanded Criteria
Standard Product
Original term of 30 years.
Term
Amortization
40/30 Balloon
If an interest rate change occurs, the outstanding principal balance will be reamortized over the remaining term of the Loan.
May be originated with or without a
conversion option. The conversion option
may be exercised beginning on the first
change date and ending on the fifth change
date.
Conversion Options
ARM Qualification
The qualifying rate is the maximum interest rate that could be in effect at the beginning
of the second year.
Temporary Buydown
Servicing Released
The Client may sell Two Year-Six Month LIBOR ARM Loans servicing released to GMACRFC either at the time the delivery Commitment is obtained, or at any time after it is
purchased by GMAC-RFC.
Interest Only
Servicing
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Doc 45-3
Exhibit B-1
5 GMAC-RFC
Page 5.32
03/13/06
Client Guide
Products
Expanded Criteria
Standard Product
40/30 Balloon
Assumptions are permitted in accordance with the due-on-sale clause provided in the
Security Instrument and/or Note and if the new Borrower meets all credit
underwriting criteria in accordance with the policy stated in the Servicer Guide.
Assumability
If the Loan converts to a fixed-rate mortgage, the due-on-sale clause will be effective
and assumptions are not permitted.
The index is the average of the London Interbank Offered Rates (LIBOR) for six month
U.S. dollar-denominated deposits, as published in The Wall Street Journal. The Client
must use the most recent index figure available as of the first Business Day of the
month immediately preceding the month in which the interest rate change date occurs.
The index rate is not used to determine the initial rate, however, it is used to determine
a new interest rate at the time of each adjustment.
Index
If the index ceases to be available, GMAC-RFC will choose a new index based upon
comparable information.
Margin
After the initial Adjustment Period the ARM interest rate may change once every six
months. At the time of each interest rate change the ARM interest rate will be the sum
of the Note Margin and the index, rounded to the nearest 0.125 of 1%, subject to the
interest rate caps.
First Interest Rate Cap 2%
Periodic Cap 1%
Lifetime Cap 6%
Lifetime Floor = Margin
The stated interest rate caps are the minimum required. For additional options contact
your GMAC-RFC Sales Director.
Caps are subject to change without notice. See GMAC-RFCs Internet Portal at
GMACResidentialFunding.com for current caps.
The interest rate change date may occur when the 24th payment is due. Subsequent
interest rate changes may occur every six months after the first interest rate change
date based on the movement of the index.
Loan Documents
Disclosure
Language stating that monthly payments will be higher after the Interest Only period
unless the Borrower has made additional payments to reduce the principal balance
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Doc 45-3
Exhibit B-1
GMAC-RFC
Page 5.33
03/13/06
Client Guide
Products
AlterNet
Standard product
Original term of 30 years.
40/30 Balloon
Original term of 30 years
with payments based on 40
year amortization.
40 Year Recast
Original term of 30 years.
Term
Amortization
Conversion Options
ARM Qualification
The qualifying rate is the maximum interest rate that could be in effect at the beginning
of the second year.
Temporary Buydown
Servicing Released
The Client is required to sell Two Year-Six Month LIBOR ARM Loans to GMAC-RFC
servicing released at the time the delivery Commitment is obtained.
Interest Only
Servicing
Assumability
Assumptions are permitted in accordance with the due-on-sale clause provided in the
Security Instrument and/or Note and if the new Borrower meets all credit
underwriting criteria in accordance with the policy stated in the Servicer Guide.
14-01915-mg
Doc 45-3
Exhibit B-1
5 GMAC-RFC
Page 5.34
03/13/06
Client Guide
Products
AlterNet
Standard product
40/30 Balloon
40 Year Recast
The index is the average of the London Interbank Offered Rates (LIBOR) for six month
U.S. dollar-denominated deposits, as published in The Wall Street Journal. The Client
must use the most recent index figure available as of the first Business Day of the
month immediately preceding the month in which the interest rate change date occurs.
The index rate is not used to determine the initial rate, however, it is used to determine
a new interest rate at the time of each adjustment.
Index
If the index ceases to be available, GMAC-RFC will choose a new index based upon
comparable information.
Margin
After the initial Adjustment Period the ARM interest rate may change once every six
months. At the time of each interest rate change the ARM interest rate will be the sum
of the Note Margin and the index, rounded to the nearest 0.125 of 1%, subject to the
interest rate caps.
First Interest Rate Cap 3%
Periodic Cap 1%
Lifetime Cap 6%
Lifetime Floor = Margin
Caps are subject to change without notice. See GMAC-RFCs Internet Portal at
GMACResidentialFunding.com for current caps.
Interest Rate Change The interest rate change date may occur when the 24th payment is due. Subsequent
interest rate changes may occur every six months after the first interest rate change
Date & Adjustment
date based on the movement of the index.
Period
Loan Documents
For Loans with a 40/30 Balloon feature, a Conditional Right to Refinance (Rider) is not
eligible. See GMACResidentialFunding.com for Loan Documents.
The Client must ensure that any description of the lenders program furnished to
Borrowers complies with applicable State and federal laws and regulations.
For Loans with an Interest Only feature, the ARM Disclosure must contain the following
information:
Language stating the period during which the Loan payments will represent only
interest
Language stating that during the Interest Only period, the regular monthly payments
will not reduce the principal balance
Language stating that monthly payments will be higher after the Interest Only period
unless the Borrower has made additional payments to reduce the principal balance
Disclosure
For Loans with a 40/30 Balloon or 40 Year Recast feature, use of the GMAC Loan
Disclosure is recommended. See GMACResidentialFunding.com for Legal Documents.
14-01915-mg
Doc 45-3
Exhibit B-1
GMAC-RFC
Page 5.35
03/13/06
Client Guide
Products
40/30 Balloon
Original term of 30 years with payment
based on 40 year amortization.
Term
Fully amortized over the term of the Loan.
Amortization
If an interest rate change occurs, the outstanding principal balance will be reamortized over the remaining term of the Loan.
May be originated with or without a
conversion option. The conversion option
may be exercised beginning on the first
change date and ending on the fifth
change date.
Conversion Option
ARM Qualification
Temporary Buydown
Servicing Released
The Client may sell Three Year-Six Month LIBOR ARM Loans servicing released to
GMAC-RFC either at the time the delivery Commitment is obtained, or at any time
after it is purchased by GMAC-RFC.
Interest Only
Servicing
If partial prepayment/principal
curtailment is made during the Interest
Only period, the amount of the monthly
payment must be recalculated to reflect
the payment change for the remainder of
the term when payments consist only of
interest.
14-01915-mg
Doc 45-3
Exhibit B-1
5 GMAC-RFC
Page 5.36
03/13/06
Client Guide
Products
40/30 Balloon
Assumptions are permitted in accordance with the due-on-sale clause provided in the
Security Instrument and/or Note and if the new Borrower meets all credit
underwriting criteria in accordance with the policy stated in the Servicer Guide.
Assumability
If the Loan converts to a fixed-rate mortgage, the due-on-sale clause will be effective
and assumptions are not permitted.
The index is the average of the London Interbank Offered Rates (LIBOR) for six month
U.S. dollar-denominated deposits, as published in The Wall Street Journal. The Client
must use the most recent index figure available as of the first Business Day of the
month immediately preceding the month in which the interest rate change date occurs.
The index rate is not used to determine the initial rate, however, it is used to determine
a new interest rate at the time of each adjustment.
Index
If the index ceases to be available, GMAC-RFC will choose a new index based upon
comparable information.
Margin
After the initial Adjustment Period the ARM interest rate may change once every six
months. At the time of each interest rate change, the ARM interest rate will be the sum
of the Note Margin and the index, rounded to the nearest 0.125 of 1%, subject to the
interest rate caps.
First Interest Rate Cap 2%
Periodic Cap 1%
Lifetime Cap 6%
Lifetime Floor = Margin
The stated interest rate caps are the minimum required. For additional options contact
your GMAC-RFC Sales Director.
Caps are subject to change without notice. See GMAC-RFCs Internet Portal at
GMACResidentialFunding.com for current caps.
The interest rate change date may occur when the 36th payment is due. Subsequent
interest rate changes may occur every six months after the first interest rate change
date based on the movement of the index.
Loan Documents
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Doc 45-3
Exhibit B-1
GMAC-RFC
Page 5.37
03/13/06
Client Guide
Products
40/30 Balloon
The Client must ensure that any description of the lenders program furnished to
Borrowers complies with applicable State and federal laws and regulations.
For Loans with an Interest Only feature, the ARM Disclosure must contain the following
information:
Language stating the period during which the Loan payments will represent only
interest
Language stating that during the Interest Only period, the regular monthly payments
will not reduce the principal balance
Language stating that monthly payments will be higher after the Interest Only period
unless the Borrower has made additional payments to reduce the principal balance
Disclosure
For Loans with a 40/30 Balloon, use of the GMAC Loan Disclosure is recommended. See
GMACResidentialFunding.com for Legal Documents.
14-01915-mg
Doc 45-3
Exhibit B-1
5 GMAC-RFC
Page 5.38
03/13/06
Client Guide
Products
AlterNet
Standard Product
Original term of 30 years.
40/30 Balloon
Original term of 30 years
with payments based on 40
year amortization.
40 Year Recast
Original term of 40 years.
Term
Amortization
Conversion Option
ARM Qualification
Temporary Buydown
Servicing Released
The Client is required to sell Three Year-Six Month LIBOR ARM Loans to GMAC-RFC
servicing released at the time the delivery Commitment is obtained.
Interest Only
Servicing
Assumability
Assumptions are permitted in accordance with the due-on-sale clause provided in the
Security Instrument and/or Note and if the new Borrower meets all credit
underwriting criteria in accordance with the policy stated in the Servicer Guide.
14-01915-mg
Doc 45-3
Exhibit B-1
GMAC-RFC
Page 5.39
03/13/06
Client Guide
Products
AlterNet
Standard Product
40/30 Balloon
40 Year Recast
The index is the average of the London Interbank Offered Rates (LIBOR) for six month
U.S. dollar-denominated deposits, as published in The Wall Street Journal. The Client
must use the most recent index figure available as of the first Business Day of the
month immediately preceding the month in which the interest rate change date occurs.
The index rate is not used to determine the initial rate, however, it is used to determine
a new interest rate at the time of each adjustment.
Index
If the index ceases to be available, GMAC-RFC will choose a new index based upon
comparable information.
Margin
After the initial Adjustment Period the ARM interest rate may change once every six
months. At the time of each interest rate change the ARM interest rate will be the sum
of the Note Margin and the index, rounded to the nearest 0.125 of 1%, subject to the
interest rate caps.
First Interest Rate Cap3%
Periodic Cap 1%
Lifetime Cap 6%
Lifetime Floor = Margin
Caps are subject to change without notice. See GMAC-RFCs Internet Portal at
GMACResidentialFunding.com for current caps.
Interest Rate Change The interest rate change date may occur when the 36th payment is due. Subsequent
interest rate changes may occur every six months after the first interest rate change
Date & Adjustment
date based on the movement of the index.
Period
Loan Documents
For Loans with a 40/30 Balloon feature, a Conditional Right to Refinance (Rider) is not
eligible. See GMACResidentialFunding.com for Loan Documents.
The Client must ensure that any description of the lenders program furnished to
Borrowers complies with applicable State and federal laws and regulations.
For Loans with an Interest Only feature, the ARM Disclosure must contain the following
information:
Language stating the period during which the Loan payments will represent only
interest
Language stating that during the Interest Only period, the regular monthly payments
will not reduce the principal balance
Language stating that monthly payments will be higher after the Interest Only period
unless the Borrower has made additional payments to reduce the principal balance
Disclosure
For Loans with a 40/30 Balloon or 40 Year Recast feature, use of the GMAC Loan
Disclosure is recommended. See GMACResidentialFunding.com for Legal Documents.
14-01915-mg
Doc 45-3
Exhibit B-1
5 GMAC-RFC
Page 5.40
03/13/06
Client Guide
Products
40/30 Balloon
Original term of 30 years with payment
based on 40 year amortization.
Term
Amortization
Conversion Option
ARM Qualification
Temporary Buydown
Servicing Released
The Client may sell the Five Year-Six Month LIBOR ARM Loans servicing released to
GMAC-RFC either at the time the delivery Commitment is obtained, or at any time
after it is purchased by GMAC-RFC.
Interest Only
Servicing
Assumability
Assumptions are permitted in accordance with the due-on-sale clause provided in the
Security Instrument and /or Note and if the new Borrower meets all credit
underwriting criteria in accordance with the policy stated in the Servicer Guide.
The index is the average of the London Interbank Offered Rates (LIBOR) for six month
U.S. dollar-denominated deposits, as published in The Wall Street Journal. The Client
must use the most recent index figure available as of the first Business Day of the
month immediately preceding the month in which the interest rate change date occurs.
The index rate is not used to determine the initial rate, however, it is used to determine
a new interest rate at the time of each adjustment.
Index
If the index ceases to be available, GMAC-RFC will choose a new index based upon
comparable information.
Margin
14-01915-mg
Doc 45-3
Exhibit B-1
GMAC-RFC
Page 5.41
03/13/06
Client Guide
Products
After the initial Adjustment Period the ARM interest rate may change once every six
months. At the time of each interest rate change, the ARM interest rate will be the sum
of the Note Margin and the index, rounded to the nearest 0.125 of 1%, subject to the
interest rate caps.
First Interest Rate Cap 5%
Periodic Cap 1%
Lifetime Cap 5%
Lifetime Floor = Margin
The stated interest rate caps are the minimum required. For additional options contact
your GMAC-RFC Sales Director.
Caps are subject to change without notice. See GMAC-RFCs Internet Portal at
GMACResidentialFunding.com for current caps.
Interest Rate Change The interest rate change date may occur no later than 61 months after the date of
purchase by GMAC-RFC. Subsequent interest rate changes may occur every six months
Date & Adjustment
after the first interest rate change date based on the movement of the index.
Period
Loan Documents
Disclosure
For Loans with a 40/30 Balloon, use of the GMAC Loan Disclosure is recommended. See
GMACResidentialFunding.com for Legal Documents.
14-01915-mg
Doc 45-3
Exhibit B-1
5 GMAC-RFC
Page 5.42
03/13/06
Client Guide
Products
Term
40/30 Balloon
Original term of 30 years with payment
based on 40 year amortization.
If an interest rate change occurs, the outstanding principal balance will be re-amortized
over the remaining term of the Loan.
Amortization
Conversion Option
ARM Qualification
Temporary Buydown
Servicing Released
The Client may sell the Seven Year-Six Month LIBOR ARM Loans servicing released to
GMAC-RFC either at the time the delivery Commitment is obtained, or at any time
after it is purchased by GMAC-RFC.
Interest Only
Servicing
Assumability
Assumptions are permitted in accordance with the due-on-sale clause provided in the
Security Instrument and /or Note and if the new Borrower meets all credit
underwriting criteria in accordance with the policy stated in the Servicer Guide.
14-01915-mg
Doc 45-3
Exhibit B-1
GMAC-RFC
Page 5.43
03/13/06
Client Guide
Products
40/30 Balloon
The index is the average of the London Interbank Offered Rates (LIBOR) for six month
U.S. dollar-denominated deposits, as published in The Wall Street Journal. The Client
must use the most recent index figure available as of the first Business Day of the
month immediately preceding the month in which the interest rate change date occurs.
The index rate is not used to determine the initial rate, however, it is used to determine
a new interest rate at the time of each adjustment.
Index
If the index ceases to be available, GMAC-RFC will choose a new index based upon
comparable information.
Margin
After the initial Adjustment Period the ARM interest rate may change once every six
months. At the time of each interest rate change, the ARM interest rate will be the sum
of the Note Margin and the index, rounded to the nearest 0.125 of 1%, subject to the
interest rate caps.
First Interest Rate Cap 5%
Periodic Cap 1%
Lifetime Cap 5%
Lifetime Floor = Margin
The stated interest rate caps are the minimum required. For additional options, contact
your GMAC-RFC Sales Director.
Caps are subject to change without notice. See GMAC-RFCs Internet Portal at
GMACResidentialFunding.com for current caps.
Interest Rate Change The interest rate change date may occur no later than 85 months after the date of
purchase by GMAC-RFC. Subsequent interest rate changes may occur every six months
Date & Adjustment
after the first interest rate change date based on the movement of the index.
Period
Loan Documents
Disclosure
For Loans with a 40/30 Balloon, use of the GMAC Loan Disclosure is recommended. See
GMACResidentailFunding.com for Legal Documents.
14-01915-mg
Doc 45-3
Exhibit B-1
5 GMAC-RFC
Page 5.44
03/13/06
Client Guide
Products
Term
40/30 Balloon
Original term of 30 years with payment
based on 40 year amortization.
If an interest rate change occurs, the outstanding principal balance will be re-amortized
over the remaining term of the Loan.
Amortization
Conversion Option
ARM Qualification
Temporary Buydown
Temporary Buydowns are permitted when designed within the parameters published in
the Jumbo A Loan Program Chapter of this Client Guide.
Servicing Released
The Client may sell the Ten Year-Six Month LIBOR ARM Loans servicing released to
GMAC-RFC either at the time the delivery Commitment is obtained, or at any time
after it is purchased by GMAC-RFC.
Interest Only
Servicing
Assumability
Assumptions are permitted in accordance with the due-on-sale clause provided in the
Security Instrument and /or Note and if the new Borrower meets all credit
underwriting criteria in accordance with the policy stated in the Servicer Guide.
The index is the average of the London Interbank Offered Rates (LIBOR) for six month
U.S. dollar-denominated deposits, as published in The Wall Street Journal. The Client
must use the most recent index figure available as of the first Business Day of the
month immediately preceding the month in which the interest rate change date occurs.
The index rate is not used to determine the initial rate, however, it is used to determine
a new interest rate at the time of each adjustment.
Index
If the index ceases to be available, GMAC-RFC will choose a new index based upon
comparable information.
Margin
14-01915-mg
Doc 45-3
Exhibit B-1
GMAC-RFC
Page 5.45
03/13/06
Client Guide
Products
40/30 Balloon
The ARM interest rate (Note rate) is the interest rate the Borrower must pay under the
Note. Initially, this will be the sum of the authorized net rate quoted by GMAC-RFC, and
the Servicing Fee.
After the initial Adjustment Period the ARM interest rate may change once every six
months. At the time of each interest rate change, the ARM interest rate will be the sum
of the Note Margin and the index, rounded to the nearest 0.125 of 1%, subject to the
interest rate caps.
First Interest Rate Cap 5%
Periodic Cap 1%
Lifetime Cap 5%
Lifetime Floor = Margin
The stated interest rate caps are the minimum required. For additional options, contact
your GMAC-RFC Sales Director.
Caps are subject to change without notice. See GMAC-RFCs Internet Portal at
GMACResidentialFunding.com for current caps.
Interest Rate Change The interest rate change date may occur no later than 121 months after the date of
purchase by GMAC-RFC. Subsequent interest rate changes may occur every six months
Date & Adjustment
after the first interest rate change date based on the movement of the index.
Period
Loan Documents
Disclosure
For Loans with a 40/30 Balloon, use of the GMAC Loan Disclosure is recommended. See
GMACResidentailFunding.com for Legal Documents.
14-01915-mg
Doc 45-3
Exhibit B-1
5 GMAC-RFC
Page 5.46
03/13/06
Client Guide
Products
Jumbo A
Original term of not more than 30 years.
Term
Amortization
Fully amortized over the term of the Loan. If an interest rate change occurs, the
outstanding principal balance will be re-amortized over the remaining term of the Loan.
May be originated with or without a conversion option. The conversion option may be
exercised any month beginning on the first change date and ending on the fifth change
date.
Conversion Option
Borrowers must meet the Note and Rider requirements as well as the criteria outlined
under the Jumbo A One Year LIBOR ARM Conversion Option in this Section.
Two options exist:
Interest Only payments are due for the first year, followed by monthly payments of
principal and interest for the remaining term of the Loan.
Interest Only payments are due for the first ten years, followed by monthly payments
of principal and interest for the remaining term of the Loan.
ARM Qualification
The qualifying rate is the maximum interest rate that could be in effect at the beginning
of the second year.
Temporary Buydown
Servicing Released
The Client may sell One Year LIBOR ARM Loans servicing released to GMAC-RFC either
at the time the delivery Commitment is obtained, or at any time after it is purchased
by GMAC-RFC.
Interest Only
Servicing
If partial prepayment/principal curtailment is made during the Interest Only period, the
amount of the monthly payment must be recalculated to reflect the payment change
for the remainder of the term when payments consist only of interest.
Assumptions are permitted in accordance with the due-on-sale clause provided in the
Security Instrument and/or Note and if the new Borrower meets all credit
underwriting criteria in accordance with the policy stated in the Servicer Guide.
Assumability
If the Loan converts to a fixed-rate mortgage, the due-on-sale clause will be effective
and assumptions are not permitted.
The index is the average of the London Interbank Offered Rates (LIBOR) for one year
U.S. dollar-denominated deposits, as published in The Wall Street Journal. The Client
must use the most recent index figure available on the day that is 45 days before the
interest rate change date.
The index rate is not used to determine the initial rate, however, it is used to determine
a new interest rate at the time of each adjustment.
Index
If the index ceases to be available, GMAC-RFC will choose a new index based upon
comparable information.
Margin
After the initial Adjustment Period the ARM interest rate may change once every 12
months. At the time of each interest rate change, the ARM interest rate will be the sum
of the Note Margin and the index, rounded to the nearest 0.125 of 1%, subject to the
interest rate caps.
14-01915-mg
Doc 45-3
Exhibit B-1
GMAC-RFC
Page 5.47
03/13/06
Client Guide
Products
Jumbo A
First Interest Rate Cap 2%
Periodic Cap 2%
Lifetime Cap 6%
Lifetime Floor = Margin
The stated interest rate caps are the minimum required. For additional options contact
your GMAC-RFC Sales Director.
Caps are subject to change without notice. See GMAC-RFCs Internet Portal at
GMACResidentialFunding.com for current caps.
The interest rate change date may occur when the 12th payment is due. Subsequent
interest rate changes may occur 12 months after the first interest rate change date
based on the movement of the index.
Loan Documents
Disclosure
Language stating that monthly payments will be higher after the Interest Only period
unless the Borrower has made additional payments to reduce the principal balance
14-01915-mg
Doc 45-3
Exhibit B-1
5 GMAC-RFC
Page 5.48
03/13/06
Client Guide
Products
Expanded Criteria
Original term of not more than 30 years.
Term
Amortization
If an interest rate change occurs, the outstanding principal balance will be reamortized over the remaining term of the Loan.
May be originated with or without a conversion option. The conversion option may be
exercised on the first, second or third change date.
Conversion Option
Borrowers must meet the Note and Rider requirements as well as the criteria outlined
under the Expanded Criteria Conversion Option in this Section.
Two options exist:
Interest Only payments are due for the first two years, followed by monthly
payments of principal and interest for the remaining term of the Loan.
Interest Only payments are due for the first ten years, followed by monthly payments
of principal and interest for the remaining term of the Loan.
ARM Qualification
Temporary Buydown
Servicing Released
The Client may sell Two-One LIBOR ARM Loans servicing released to GMAC-RFC either
at the time the delivery Commitment is obtained, or at any time after it is purchased
by GMAC-RFC.
Interest Only
Servicing
If partial prepayment/principal curtailment is made during the Interest Only period, the
amount of the monthly payment must be recalculated to reflect the payment change
for the remainder of the term when payments consist only of interest.
Assumptions are permitted in accordance with the due-on-sale clause provided in the
Security Instrument and/or Note and if the new Borrower meets all credit
underwriting criteria in accordance with the policy stated in the Servicer Guide.
Assumability
If the Loan converts to a fixed-rate mortgage, the due-on-sale clause will be effective
and assumptions are not permitted.
The index is the average of the London Interbank Offered Rates (LIBOR) for one year
U.S. dollar-denominated deposits, as published in The Wall Street Journal. The Client
must use the most recent index figure available on the day that is 45 days before the
interest rate change date.
The index rate is not used to determine the initial rate, however, it is used to determine
a new interest rate at the time of each adjustment.
Index
If the index ceases to be available, GMAC-RFC will choose a new index based upon
comparable information.
Margin
14-01915-mg
Doc 45-3
Exhibit B-1
GMAC-RFC
Page 5.49
03/13/06
Client Guide
Products
Expanded Criteria
The ARM interest rate (Note rate) is the interest rate the Borrower must pay under the
Note. Initially, this will be the sum of the authorized net rate quoted by GMAC-RFC,
and the Servicing Fee.
After the initial Adjustment Period the ARM interest rate may change once every 12
months. At the time of each interest rate change, the ARM interest rate will be the sum
of the Note Margin and the index, rounded to the nearest 0.125 of 1%, subject to the
interest rate caps.
First Interest Rate Cap 2%
Periodic Cap 2%
Lifetime Cap 6%
Lifetime Floor = Margin
The stated interest rate caps are the minimum required. For additional options contact
your GMAC-RFC Sales Director.
Caps are subject to change without notice. See GMAC-RFCs Internet Portal at
GMACResidentialFunding.com for current caps.
The interest rate change date may occur no later than 25 months after the date of
purchase by GMAC-RFC. Subsequent interest rate changes may occur each
anniversary of the first interest rate change date based on the movement of the index.
Loan Documents
Disclosure
Language stating that monthly payments will be higher after the Interest Only period
unless the Borrower has made additional payments to reduce the principal balance
14-01915-mg
Doc 45-3
Exhibit B-1
5 GMAC-RFC
Page 5.50
03/13/06
Client Guide
Products
Term
40/30 Balloon
Original term of 30 years with payment
based on 40 year amortization.
Amortization
If an interest rate change occurs, the outstanding principal balance will be re-amortized
over the remaining term of the Loan.
Conversion Option
ARM Qualification
Temporary Buydown
Servicing Released
The Client may sell Five-One LIBOR ARM Loans servicing released to GMAC-RFC either
at the time the delivery Commitment is obtained, or at any time after it is purchased
by GMAC-RFC.
Interest Only
Servicing
Assumability
Assumptions are permitted in accordance with the due-on-sale clause provided in the
Security Instrument and/or Note and if the new Borrower meets all credit
underwriting criteria in accordance with the policy stated in the Servicer Guide.
The index is the average of the London Interbank Offered Rates (LIBOR) for one year
U.S. dollar-denominated deposits, as published in The Wall Street Journal. The Client
must use the most recent index figure available on the day that is 45 days before the
interest rate change date.
The index rate is not used to determine the initial rate, however, it is used to determine
a new interest rate at the time of each adjustment.
Index
If the index ceases to be available, GMAC-RFC will choose a new index based upon
comparable information.
14-01915-mg
Doc 45-3
Exhibit B-1
GMAC-RFC
Page 5.51
03/13/06
Client Guide
Products
Margin
40/30 Balloon
After the initial Adjustment Period the ARM interest rate may change once every 12
months. At the time of each interest rate change, the ARM interest rate will be the sum
of the Note Margin and the index, rounded to the nearest 0.125 of 1%, subject to the
interest rate caps.
First Interest Rate Cap 2%
Periodic Cap 2%
Lifetime Cap 6%
Lifetime Floor = Margin
The stated interest rate caps are the minimum required. For additional options contact
your GMAC-RFC Sales Director.
Caps are subject to change without notice. See GMAC-RFCs Internet Portal at
GMACResidentialFunding.com for current caps.
Interest Rate Change The interest rate change date may occur no later than 37 months after the date of
purchase by GMAC-RFC. Subsequent interest rate changes may occur each anniversary
Date & Adjustment
of the first interest rate change date based on the movement of the index.
Period
Loan Documents
Disclosure
For Loans with a 40/30 Balloon, use of the GMAC Loan Disclosure is recommended. See
GMACResidentailFunding.com for Legal Documents
14-01915-mg
Doc 45-3
Exhibit B-1
5 GMAC-RFC
Page 5.52
03/13/06
Client Guide
Products
Home Solution
Original term of not more than 30 years.
Term
Amortization
Fully amortized over the term of the Loan. If an interest rate change occurs, the
outstanding principal balance will be re-amortized over the remaining term of the Loan.
Conversion Option
Temporary Buydown
Servicing Released
The Client is required to sell Three-One LIBOR ARM Loans to GMAC-RFC servicing
released at the time the delivery Commitment is obtained.
Assumability
Assumptions are permitted in accordance with the due-on-sale clause provided in the
Security Instrument and/or Note and if the new Borrower meets all credit
underwriting criteria in accordance with the policy stated in the Servicer Guide.
The index is the average of the London Interbank Offered Rates (LIBOR) for one year
U.S. dollar-denominated deposits, as published in The Wall Street Journal. The Client
must use the most recent index figure available on the day that is 45 days before the
interest rate change date.
The index rate is not used to determine the initial rate, however, it is used to determine
a new interest rate at the time of each adjustment.
Index
If the index ceases to be available, GMAC-RFC will choose a new index based upon
comparable information.
Margin
After the initial Adjustment Period the ARM interest rate may change once every 12
months. At the time of each interest rate change, the ARM interest rate will be the sum
of the Note Margin and the index, rounded to the nearest 0.125 of 1%, subject to the
interest rate caps.
First Interest Rate Cap 2%
Periodic Cap 2%
Lifetime Cap 6%
Lifetime Floor = Margin
Caps are subject to change without notice. See GMAC-RFCs Internet Portal at
GMACResidentialFunding.com for current caps.
The interest rate change date may occur no later than 37 months after the date of
purchase by GMAC-RFC. Subsequent interest rate changes may occur each
anniversary of the first interest rate change date based on the movement of the index.
Loan Documents
Disclosure
The Client must ensure that any description of the lenders program furnished to
Borrowers complies with applicable State and federal laws and regulations.
14-01915-mg
Doc 45-3
Exhibit B-1
GMAC-RFC
Page 5.53
03/13/06
Client Guide
Products
Term
40/30 Balloon
Original term of 30 years with payment
based on 40 year amortization.
Amortization
If an interest rate change occurs, the outstanding principal balance will be re-amortized
over the remaining term of the Loan.
Conversion Option
ARM Qualification
Temporary Buydown
Servicing Released
The Client may sell Five-One LIBOR ARM Loans servicing released to GMAC-RFC either
at the time the delivery Commitment is obtained, or at any time after it is purchased
by GMAC-RFC.
Interest Only
Servicing
Assumability
Assumptions are permitted in accordance with the due-on-sale clause provided in the
Security Instrument and/or Note and if the new Borrower meets all credit
underwriting criteria in accordance with the policy stated in the Servicer Guide.
The index is the average of the London Interbank Offered Rates (LIBOR) for one year
U.S. dollar-denominated deposits, as published in The Wall Street Journal. The Client
must use the most recent index figure available on the day that is 45 days before the
interest rate change date.
The index rate is not used to determine the initial rate, however, it is used to determine
a new interest rate at the time of each adjustment.
Index
If the index ceases to be available, GMAC-RFC will choose a new index based upon
comparable information.
Margin
14-01915-mg
Doc 45-3
Exhibit B-1
5 GMAC-RFC
Page 5.54
03/13/06
Client Guide
Products
40/30 Balloon
The ARM interest rate (Note rate) is the interest rate the Borrower must pay under the
Note. Initially, this will be the sum of the authorized net rate quoted by GMAC-RFC, and
the Servicing Fee.
After the initial Adjustment Period the ARM interest rate may change once every 12
months. At the time of each interest rate change, the ARM interest rate will be the sum
of the Note Margin and the index, rounded to the nearest 0.125 of 1%, subject to the
interest rate caps.
First Interest Rate Cap 5%
Periodic Cap 2%
Lifetime Cap 5%
Lifetime Floor = Margin
The stated interest rate caps are the minimum required. For additional options contact
your GMAC-RFC Sales Director.
Caps are subject to change without notice. See GMAC-RFCs Internet Portal at
GMACResidentialFunding.com for current caps.
Interest Rate Change The interest rate change date may occur no later than 61 months after the date of
purchase by GMAC-RFC. Subsequent interest rate changes may occur each anniversary
Date & Adjustment
of the first interest rate change date based on the movement of the index.
Period
Loan Documents
Disclosure
For Loans with a 40/30 Balloon, use of the GMAC Loan Disclosure is recommended. See
GMACResidentailFunding.com for Legal Documents
14-01915-mg
Doc 45-3
Exhibit B-1
GMAC-RFC
Page 5.55
03/13/06
Client Guide
Products
Term
40/30 Balloon
Original term of 30 years with payment
based on 40 year amortization.
Amortization
If an interest rate change occurs, the outstanding principal balance will be re-amortized
over the remaining term of the Loan.
Conversion Option
ARM Qualification
Temporary Buydown
Temporary Buydowns are permitted when designed within the parameters published in
the Jumbo A/Expanded Criteria Loan Program Chapters of this Client Guide.
Servicing Released
The Client may sell Seven-One LIBOR ARM Loans servicing released to GMAC-RFC
either at the time the delivery Commitment is obtained, or at any time after it is
purchased by GMAC-RFC.
Interest Only
Servicing
Assumability
Assumptions are permitted in accordance with the due-on-sale clause provided in the
Security Instrument and/or Note and if the new Borrower meets all credit
underwriting criteria in accordance with the policy stated in the Servicer Guide.
The index is the average of the London Interbank Offered Rates (LIBOR) for one year
U.S. dollar-denominated deposits, as published in The Wall Street Journal. The Client
must use the most recent index figure available on the day that is 45 days before the
interest rate change date.
The index rate is not used to determine the initial rate, however, it is used to determine
a new interest rate at the time of each adjustment.
Index
If the index ceases to be available, GMAC-RFC will choose a new index based upon
comparable information.
14-01915-mg
Doc 45-3
Exhibit B-1
5 GMAC-RFC
Page 5.56
03/13/06
Client Guide
Products
Margin
40/30 Balloon
After the initial Adjustment Period the ARM interest rate may change once every 12
months. At the time of each interest rate change, the ARM interest rate will be the sum
of the Note Margin and the index, rounded to the nearest 0.125 of 1%, subject to the
interest rate caps.
First Interest Rate Cap 5%
Periodic Cap 2%
Lifetime Cap 5%
Lifetime Floor = Margin
The stated interest rate caps are the minimum required. For additional options, contact
your GMAC-RFC Sales Director.
Caps are subject to change without notice. See GMAC-RFCs Internet Portal at
GMACResidentialFunding.com for current caps.
Interest Rate Change The interest rate change date may occur no later than 85 months after the date of
purchase by GMAC-RFC. Subsequent interest rate changes may occur each anniversary
Date & Adjustment
of the first interest rate change date based on the movement of the index.
Period
Loan Documents
Disclosure
For Loans with a 40/30 Balloon, use of the GMAC Loan Disclosure is recommended. See
GMACResidentailFunding.com for Legal Documents.
14-01915-mg
Doc 45-3
Exhibit B-1
GMAC-RFC
Page 5.57
03/13/06
Client Guide
Products
Term
40/30 Balloon
Original term of 30 years with payment
based on 40 year amortization.
Amortization
If an interest rate change occurs, the outstanding principal balance will be re-amortized
over the remaining term of the Loan.
Conversion Option
ARM Qualification
Temporary Buydown
Temporary Buydowns are permitted when designed within the parameters published in
the Jumbo A Loan Program Chapter of this Client Guide.
Servicing Released
The Client may sell Ten-One LIBOR ARM Loans servicing released to GMAC-RFC either
at the time the delivery Commitment is obtained, or at any time after it is purchased
by GMAC-RFC.
Interest Only
Servicing
Assumability
Assumptions are permitted in accordance with the due-on-sale clause provided in the
Security Instrument and/or Note and if the new Borrower meets all credit
underwriting criteria in accordance with the policy stated in the Servicer Guide.
The index is the average of the London Interbank Offered Rates (LIBOR) for one year
U.S. dollar-denominated deposits, as published in The Wall Street Journal. The Client
must use the most recent index figure available on the day that is 45 days before the
interest rate change date.
The index rate is not used to determine the initial rate, however, it is used to determine
a new interest rate at the time of each adjustment.
Index
If the index ceases to be available, GMAC-RFC will choose a new index based upon
comparable information.
Margin
14-01915-mg
Doc 45-3
Exhibit B-1
5 GMAC-RFC
Page 5.58
03/13/06
Client Guide
Products
40/30 Balloon
The ARM interest rate (Note rate) is the interest rate the Borrower must pay under the
Note. Initially, this will be the sum of the authorized net rate quoted by GMAC-RFC, and
the Servicing Fee.
After the initial Adjustment Period the ARM interest rate may change once every 12
months. At the time of each interest rate change, the ARM interest rate will be the sum
of the Note Margin and the index, rounded to the nearest 0.125 of 1%, subject to the
interest rate caps.
First Interest Rate Cap 5%
Periodic Cap 2%
Lifetime Cap 5%
Lifetime Floor = Margin
The stated interest rate caps are the minimum required. For additional options, contact
your GMAC-RFC Sales Director.
Caps are subject to change without notice. See GMAC-RFCs Internet Portal at
GMACResidentialFunding.com for current caps.
Interest Rate Change The interest rate change date may occur no later than 121 months after the date of
purchase by GMAC-RFC. Subsequent interest rate changes may occur each anniversary
Date & Adjustment
of the first interest rate change date based on the movement of the index.
Period
Loan Documents
Disclosure
For Loans with a 40/30 Balloon, use of the GMAC Loan Disclosure is recommended. See
GMACResidentailFunding.com for Legal Documents.
14-01915-mg
Doc 45-3
Exhibit B-1
GMAC-RFC
Page 5.59
03/13/06
Client Guide
Products
Jumbo A
AlterNet
Term
Amortization
Conversion Option
ARM Qualification
Temporary Buydown
Servicing Released
Interest Only
Servicing
If partial prepayment/principal
curtailment is made during the Interest
Only period, the amount of the monthly
payment must be recalculated to reflect
the payment change for the remainder of
the term when payments consist only of
interest.
14-01915-mg
Doc 45-3
Exhibit B-1
5 GMAC-RFC
Page 5.60
03/13/06
Client Guide
Products
Assumability
Jumbo A
AlterNet
Not convertible
Index
If the index ceases to be available, GMAC- If the index ceases to be available, GMACRFC will choose a new index based upon
RFC will choose a new index based upon
comparable information.
comparable information.
Margin
Periodic Cap 2%
Periodic Cap 2%
Lifetime Cap 6%
Lifetime Cap 6%
14-01915-mg
Doc 45-3
Exhibit B-1
GMAC-RFC
Page 5.61
03/13/06
Client Guide
Products
Jumbo A
Loan Documents
Disclosure
AlterNet
14-01915-mg
Doc 45-3
Exhibit B-1
5 GMAC-RFC
Page 5.62
03/13/06
Client Guide
Products
Jumbo A
Original term of not more than 30 years.
Term
Amortization
Fully amortized over the term of the Loan. If an interest rate change occurs, the
outstanding principal balance will be re-amortized over the remaining term of the
Loan.
May be originated with or without a conversion option. The conversion option may be
exercised on the first, second or third change date.
Conversion Option
Borrowers must meet the Note and Rider requirements as well as the criteria outlined
under the Jumbo A Conversion Option in this Section. The criteria for conversion for a
Three-One Treasury ARM is the same as the criteria for a One Year Treasury ARM.
Two options exist:
Interest Only payments are due for the first three years, followed by monthly
payments of principal and interest for the remaining term of the Loan.
Interest Only payments are due for the first ten years, followed by monthly payments
of principal and interest for the remaining term of the Loan.
ARM Qualification
Temporary Buydown
Servicing Released
The Client may sell Three-One Treasury ARM Loans servicing released to GMAC-RFC
either at the time the delivery Commitment is obtained, or at any time after it is
purchased by GMAC-RFC.
Interest Only
Servicing
Assumability
If the Loan converts to a fixed-rate mortgage, the due-on-sale clause will be effective
and assumptions are not permitted.
The weekly average yield of U.S. Treasury securities adjusted to a constant maturity
of one year. The index is published in the Federal Reserve Board Statistical Release H.
15 (519). The Client must use the index in effect 45 days prior to a scheduled interest
rate change date.
The index rate is not used to determine the initial rate, however, it is used to determine
a new interest rate at the time of each adjustment.
Index
If the index ceases to be available, GMAC-RFC will choose a new index based upon
comparable information.
Margin
After the initial Adjustment Period the ARM interest rate may change once every 12
months. At the time of each interest rate change, the ARM interest rate will be the sum
of the Note Margin and the index, rounded to the nearest 0.125 of 1%, subject to the
interest rate caps.
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Doc 45-3
Exhibit B-1
GMAC-RFC
Page 5.63
03/13/06
Client Guide
Products
Jumbo A
First Interest Rate Cap 2%
Periodic Cap 2%
Lifetime Cap 6%
Lifetime Floor = Margin
The stated interest rate caps are the minimum required. For additional options contact
your GMAC-RFC Sales Director.
Caps are subject to change without notice. See GMAC-RFCs Internet Portal at
GMACResidentialFunding.com for current caps.
The interest rate change date may occur no later than 37 months after the date of
purchase by GMAC-RFC. Subsequent interest rate changes may occur each
anniversary of the first interest rate change date based on the movement of the index.
Loan Documents
Disclosure
Language stating that monthly payments will be higher after the Interest Only period
unless the Borrower has made additional payments to reduce the principal balance
14-01915-mg
Doc 45-3
Exhibit B-1
5 GMAC-RFC
Page 5.64
03/13/06
Client Guide
Products
Jumbo A
Original term of not more than 30 years.
Term
Amortization
Fully amortized over the term of the Loan. If an interest rate change occurs, the
outstanding principal balance will be re-amortized over the remaining term of the
Loan.
Conversion Option
(1) Interest Only payments are due for the first ten years, followed by monthly
payments of principal and interest for the remaining term of the Loan.
ARM Qualification
Temporary Buydown
Servicing Released
The Client may sell Five-One Treasury ARM Loans servicing released to GMAC-RFC
either at the time the delivery Commitment is obtained, or at any time after it is
purchased by GMAC-RFC.
Interest Only
Servicing
Assumability
Assumptions are permitted in accordance with the due-on-sale clause provided in the
Security Instrument and/or Note and if the new Borrower meets all credit
underwriting criteria in accordance with the policy stated in the Servicer Guide.
The weekly average yield of U.S. Treasury securities adjusted to a constant maturity
of one year. The index is published in the Federal Reserve Board Statistical Release H.
15 (519). The Client must use the index in effect 45 days prior to a scheduled interest
rate change date.
The index rate is not used to determine the initial rate, however, it is used to determine
a new interest rate at the time of each adjustment.
Index
If the index ceases to be available, GMAC-RFC will choose a new index based upon
comparable information.
Margin
After the initial Adjustment Period the ARM interest rate may change once every 12
months. At the time of each interest rate change, the ARM interest rate will be the sum
of the Note Margin and the index, rounded to the nearest 0.125 of 1%, subject to the
interest rate caps.
14-01915-mg
Doc 45-3
Exhibit B-1
GMAC-RFC
Page 5.65
03/13/06
Client Guide
Products
Jumbo A
First Interest Rate Cap 5%
Periodic Cap 2%
Lifetime Cap 5%
Lifetime Floor = Margin
The stated interest rate caps are the minimum required. For additional options contact
your GMAC-RFC Sales Director.
Caps are subject to change without notice. See GMAC-RFCs Internet Portal at
GMACResidentialFunding.com for current caps.
The interest rate change date may occur no later than 61 months after the date of
purchase by GMAC-RFC. Subsequent interest rate changes may occur each
anniversary of the first interest rate change date based on the movement of the index.
Loan Documents
Disclosure
Language stating that monthly payments will be higher after the Interest Only period
unless the Borrower has made additional payments to reduce the principal balance
14-01915-mg
Doc 45-3
Exhibit B-1
5 GMAC-RFC
Page 5.66
03/13/06
Client Guide
Products
Jumbo A
Original term of not more than 30 years; no restrictions on the remaining term.
Term
Amortization
Fully amortized over the term of the Loan. If an interest rate change occurs, the
outstanding principal balance will be re-amortized over the remaining term of the
Loan.
Conversion Option
Interest Only payments are due for the first ten years, followed by monthly payments
of principal and interest for the remaining term of the Loan.
ARM Qualification
Temporary Buydown
Temporary Buydowns are permitted when designed within the parameters published
in the Jumbo A Loan Program Chapter of this Client Guide.
Servicing Released
The Client may sell Seven-One Treasury ARM Loans servicing released to GMAC-RFC
either at the time the delivery Commitment is obtained, or at any time after it is
purchased by GMAC-RFC.
Interest Only
Servicing
Assumability
Assumptions are permitted in accordance with the due-on-sale clause provided in the
Security Instrument and/or Note and if the new Borrower meets all credit
underwriting criteria in accordance with the policy stated in the Servicer Guide.
The weekly average yield of U.S. Treasury securities adjusted to a constant maturity
of one year. The index is published in the Federal Reserve Board Statistical Release H.
15 (519). The Client must use the index in effect 45 days prior to a scheduled interest
rate change date.
The index rate is not used to determine the initial rate, however, it is used to determine
a new interest rate at the time of each adjustment.
Index
If the index ceases to be available, GMAC-RFC will choose a new index based upon
comparable information.
Margin
After the initial Adjustment Period the ARM interest rate may change once every 12
months. At the time of each interest rate change, the ARM interest rate will be the sum
of the Note Margin and the index, rounded to the nearest 0.125 of 1%, subject to the
interest rate caps.
14-01915-mg
Doc 45-3
Exhibit B-1
GMAC-RFC
Page 5.67
03/13/06
Client Guide
Products
Jumbo A
First Interest Rate Cap 5%
Periodic Cap 2%
Lifetime Cap 5%
Lifetime Floor = Margin
The stated interest rate caps are the minimum required. For additional options, contact
your GMAC-RFC Sales Director.
Caps are subject to change without notice. See GMAC-RFCs Internet Portal at
GMACResidentialFunding.com for current caps.
The interest rate change date may occur no later than 85 months after the date of
purchase by GMAC-RFC. Subsequent interest rate changes may occur each
anniversary of the first interest rate change date based on the movement of the index.
Loan Documents
Disclosure
Language stating that monthly payments will be higher after the Interest Only period
unless the Borrower has made additional payments to reduce the principal balance
14-01915-mg
Doc 45-3
Exhibit B-1
5 GMAC-RFC
Page 5.68
03/13/06
Client Guide
Products
Jumbo A
Term
Amortization
Fully amortized over the term of the Loan. If an interest rate change occurs, the
outstanding principal balance will be re-amortized over the remaining term of the
Loan.
Conversion Option
Interest Only Feature of principal and interest for the remaining term of the Loan.
ARM Qualification
Temporary Buydown
Temporary Buydowns are permitted when designed within the parameters published
in the Jumbo A Loan Program Chapter of this Client Guide.
Servicing Released
The Client may sell Ten-One Treasury ARM Loans servicing released to GMAC-RFC
either at the time the delivery Commitment is obtained, or at any time after it is
purchased by GMAC-RFC.
Interest Only
Servicing
Assumability
Assumptions are permitted in accordance with the due-on-sale clause provided in the
Security Instrument and/or Note and if the new Borrower meets all credit
underwriting criteria in accordance with the policy stated in the Servicer Guide.
The weekly average yield of U.S. Treasury securities adjusted to a constant maturity
of one year. The index is published in the Federal Reserve Board Statistical Release H.
15 (519). The Client must use the index in effect 45 days prior to a scheduled interest
rate change date.
The index rate is not used to determine the initial rate, however, it is used to determine
a new interest rate at the time of each adjustment.
Index
If the index ceases to be available, GMAC-RFC will choose a new index based upon
comparable information.
Margin
After the initial Adjustment Period the ARM interest rate may change once every 12
months. At the time of each interest rate change, the ARM interest rate will be the sum
of the Note Margin and the index, rounded to the nearest 0.125 of 1%, subject to the
interest rate caps.
First Interest Rate Cap 5%
Periodic Cap 2%
Lifetime Cap 5%
Lifetime Floor = Margin
The stated interest rate caps are the minimum required. For additional options, contact
your GMAC-RFC Sales Director.
Caps are subject to change without notice. See GMAC-RFCs Internet Portal at
GMACResidentialFunding.com for current caps.
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Doc 45-3
Exhibit B-1
GMAC-RFC
Page 5.69
03/13/06
Client Guide
Products
Jumbo A
Interest Rate Change
Date & Adjustment
Period
The interest rate change date may occur no later than 121 months after the date of
purchase by GMAC-RFC. Subsequent interest rate changes may occur each
anniversary of the first interest rate change date based on the movement of the index.
Loan Documents
Disclosure
Language stating that monthly payments will be higher after the Interest Only period
unless the Borrower has made additional payments to reduce the principal balance
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Doc 45-3
Exhibit B-1
5 GMAC-RFC
Page 5.70
03/13/06
Client Guide
Products
503
Balloon Mortgages
30/15 Balloon Mortgage
See the table immediately following for descriptions of this product and its application to the
Home Solution and AlterNet Programs.
30/15 Balloon
The 30/15 Balloon is a Mortgage which has fixed-rate payments that are amortized over 30 years. A balloon
payment is due at the end of the 15 year term. The AlterNet Loan Program includes an Interest Only feature.
Home Solution
Original term is 15 years with payment based on a 30 year amortization.
Term
Amortization
The amortization period is 30 years. After 15 years a balloon payment is due of the
remaining principal balance and any interest or fees.
Conversion Option
Servicing Released
The Client is required to sell 30/15 Balloon Loans to GMAC-RFC servicing released at
the time the delivery Commitment is obtained.
Assumability
Not Assumable
Loan Documents
Interest Only
Servicing
Disclosure
The Client must ensure that any description of the lenders program furnished to
Borrowers complies with applicable State and federal laws and regulations.
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Doc 45-3
Exhibit B-1
GMAC-RFC
Page 5.71
Client Guide
Products
30/15 Balloon
The 30/15 Balloon is a Mortgage which has fixed-rate payments that are amortized over 30 years. A balloon
payment is due at the end of the 15 year term. The AlterNet Loan Program includes an Interest Only feature.
AlterNet
Original term is 15 years with payment based on a 30 year amortization.
Term
Amortization
The amortization period is 30 years. After 15 years a balloon payment is due of the
remaining principal balance and any interest or fees.
Conversion Option
Interest Only Feature of principal and interest for the remaining term of the Loan.
Temporary Buydown
Servicing Released
The Client is required to sell 30/15 Balloon Loans to GMAC-RFC servicing released at
the time the delivery Commitment is obtained.
Interest Only
Servicing
Assumability
Not Assumable
Loan Documents
Loans with a Conditional Right to Refinance (Rider) are not eligible. See
GMACResidentialFunding.com for Loan Documents.
The Client must ensure that any description of the lenders program furnished to
Borrowers complies with applicable State and federal laws and regulations.
Disclosure
40/30 ARM balloon Loans may not contain a conditional right to refinance (Rider or
other). Do not attach this Rider/Addendum to the Note or Security Instrument.
For Loans with an Interest Only feature, GMAC-RFC requires that an Interest Only
Disclosure be provided to the Borrower at the time of application. See
GMACResidentialFunding.com for sample disclosure.
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Doc 45-3
Exhibit B-1
5 GMAC-RFC
Page 5.72
Client Guide
Products
504
1st Lien Line of Credit
See the table immediately following for descriptions of this product.
1st Lien Line of Credit
Term
25 year term Prime Rate ARM; ten year Draw Period with Interest Only payments,
followed by a 15 year amortized repayment period.
Amortization
The amortization period is 15 years. After ten years, the principal balance if any, plus
interest and fees, will amortize over the remaining 15 years.
Conversion Option
Temporary Buydown
Servicing Released
The Client is required to sell 1st Lien Line of Credit to GMAC-RFC servicing released.
Assumability
Not Assumable
Index
The index is the Prime Rate as published in The Wall Street Journal as of the first
Business Day of the month.
Loan Documents
GMAC-RFC will accept State specific 1st Lien Line of Credit Notes from Middleberg,
Riddle and Gianna (MRG) and Compliance Source, Inc. (CS).
For Legal, Credit and Revising Document requirements, see Chapter 9C, Delivery.
Disclosure
The Client must ensure that any description of the lenders program furnished to
Borrowers complies with applicable State and federal laws and regulations.
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GMAC-RFC
6
Loan Programs
600
Loan Programs
This Chapter outlines GMAC-RFCs Loan Programs.
(A) Standard Loan Programs
Jumbo A Program
Expanded Criteria Program
Payment Option Program
Home Solution Program
AlterNet Program
Performance Program
1st Lien Line of Credit Program
Home Equity Program
125 CLTV Program
(B) Non-Standard Loan Program
Non-Standard Program
Exhibit B-1
Page 6.1
03/13/06
Client Guide
Loan Programs
14-01915-mg
Doc 45-3
Exhibit B-1
6 GMAC-RFC
Page 6.2
03/13/06
Client Guide
Loan Programs
14-01915-mg
Doc 45-3
Exhibit B-1
GMAC-RFC
Page 6A.1
03/13/06
Client Guide
Jumbo A
Program
6A
Jumbo A Loan Program
A600
Jumbo A Program
GMAC-RFCs Jumbo A Program is a first mortgage program designed for the A quality
Borrower who meets standard secondary market guidelines.
A601
Eligibility Standards
The eligibility standards for the Jumbo A Program are outlined below and in the Jumbo A AtA-Glance in Chapter 7, Program At-A-Glances. Please see individual options for restrictions.
Interest Only and 40/30 Balloon features are eligible unless otherwise noted. The 40/30
Balloon feature has an original term of 30 years with payments based on 40 year
amortization. The Interest Only feature may not be combined with 40/30 Balloon feature.
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Exhibit B-1
6A GMAC-RFC
Page 6A.2
04/17/06
Client Guide
Jumbo A
Program
Products
Available Features
Interest Only
40/30 Balloon
Fixed Rate
FRM-30
FRM-15
LIBOR ARMs
One Month
Six Month
One Year
Three-One
Five-One
Seven-One
Ten-One
Treasury ARMs
One Year
Three-One
Five-One
Seven-One
Ten-One
The 40/30 Balloon feature has an original term of 30 years with payments based on 40 years.
Interest Only may not be combined with 40/30 Balloon feature.
Interest Only feature for FRM-30 is allowed only for Loan amounts over $417,000
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Doc 45-3
Exhibit B-1
GMAC-RFC
(B) Borrower Eligibility
Eligible Borrower types:
U.S. citizen
Permanent resident alien
Non-occupant co-Borrower
First-time homebuyer
Non-permanent resident alien
Ineligible Borrower type:
Foreign national
(C) Transaction Types
Eligible Transaction Types:
Purchase mortgage
Rate/term refinance mortgage
Cash-Out refinance mortgage
Construction/Permanent mortgage
Contract for deed/land contract
Lease with option to purchase transaction
Converted/modified Loan-contemplated by original Note1
Converted/modified Loan-not contemplated by original Note1
Ineligible transaction types:
Non-arms length transaction (may be considered on a case-by-case basis)
1
(D) Occupancy
Eligible occupancy types:
Primary residence, owner occupied
Second/vacation home, owner occupied
Ineligible occupancy types:
Non-owner occupied
6A
Page 6A.3
03/13/06
Client Guide
Jumbo A
Program
14-01915-mg
Doc 45-3
Exhibit B-1
6A GMAC-RFC
Page 6A.4
03/13/06
Client Guide
Jumbo A
Program
14-01915-mg
Doc 45-3
Exhibit B-1
6A
GMAC-RFC
Page 6A.5
03/13/06
Client Guide
Jumbo A
Program
Credit
Grade1
Credit
Score
A1
720+
A2
680-719
A3
620-679
Housing Payment
History
0x30 mortgage/rental
Delinquency in past 12
months; and no 60+
mortgage/rental
Delinquency in past 24
months.
Bankruptcy2
Foreclosure
Major Adverse
Credit
None reported
in past 24
months.3
Simultaneous first and second mortgage transactions must follow the most restrictive grading policy of the two
Loan Programs.
1 Credit upgrades allowed.
2 Chapter 7 measured by discharge or dismissal date. Chapter 13 measured by discharge date.
3 Adverse accounts > 24 months old that do not affect title will not be considered in grade determination and are
not required to be paid.
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Doc 45-3
Exhibit B-1
6A GMAC-RFC
Page 6A.6
03/13/06
Client Guide
Jumbo A
Program
Product
Category
FRM
Product
Credit
Grades
A1, A2
Credit
Grade
A3
Qualification
Fully
Amortizing
or 40/30
Balloon
Feature
Interest
Only
Feature
Qualified at
Note rate
Qualified with
Interest Only
payment,
taxes and
insurance
FRM-30
50%
45%
FRM-152,3
One Month ARM
50%
45%
Qualified at
the
maximum
interest rate
that could be
in effect the
second year
Qualified at
the maximum
interest rate
that could be
in effect the
second year
with Interest
Only
payment,
taxes and
insurance
Qualified at
start rate
Qualified at
start rate
with Interest
Only
payment,
taxes and
insurance
Three, Five,
Seven and Ten
Year ARM
Qualified at
2% over
start rate
Qualified at
2% over start
rate with
Interest Only
payment,
taxes and
insurance
50%
45%
45%
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Doc 45-3
Exhibit B-1
GMAC-RFC
6A
Page 6A.7
03/13/06
Client Guide
Jumbo A
Program
14-01915-mg
Doc 45-3
Exhibit B-1
6A GMAC-RFC
Page 6A.8
03/13/06
Client Guide
Jumbo A
Program
14-01915-mg
Doc 45-3
Exhibit B-1
6A
GMAC-RFC
Page 6A.9
03/13/06
Client Guide
Jumbo A
Program
LTV Range
MI Coverage
Primary Residence
FRM-30, ARM
FRM-15
90.01% - 95%
30%
85.01% - 90%
25%
80.01% - 85%
12%
90.01% - 95%
25%
85.01% - 90%
12%
80.01% - 85%
6%
Second/Vacation Home
FRM-30, ARM
FRM-15
90.01% - 95%
30%
85.01% - 90%
25%
80.01% - 85%
20%
90.01% - 95%
30%
85.01% - 90%
20%
80.01% - 85%
12%
Determining Mortgage Insurance availability is the responsibility of the Client. In some instances, it may not be
available or allowable under some State laws.
For Loans secured by property in New York, see Chapter 3F, Insurance and Survey Requirements, the Mortgage
Insurance Requirements for Loans Originated in New York Section.
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Exhibit B-1
6A GMAC-RFC
Page 6A.10
03/13/06
Client Guide
Jumbo A
Program
A602
Stated Income Documentation
(A) Maximum Loan Amounts, LTVs and CLTVs
See the Jumbo A At-A-Glance in Chapter 7, Program At-A-Glances.
A603
EasyFi or Streamline Refinance
EasyFiSM is for Clients who seek simplified processing of rate/term refinance transactions
during periods of declining interest rates. These Loans must comply with additional
requirements as outlined in Chapter 4, Underwriting, and Chapter 3, Loan Eligibility, and
with all other representations and warranties. Interest Only and 40/30 Balloon features are
not allowed under EasyFi or Streamline Refinance.
(A) EasyFi Product Types
Fixed Rate:
FRM-30
FRM-15
LIBOR ARMs:
One Month LIBOR ARM
Six Month LIBOR ARM
One Year-Six Month LIBOR ARM
Three Year-Six Month LIBOR ARM
Five Year-Six Month LIBOR ARM
Seven Year-Six Month LIBOR ARM
Ten Year-Six Month LIBOR ARM
One Year LIBOR ARM
Three-One LIBOR ARM
Five-One LIBOR ARM
Seven-One LIBOR ARM
Ten-One LIBOR ARM
Treasury ARMs:
One Year Treasury ARM
Three-One Treasury ARM
Five-One Treasury ARM
Seven-One Treasury ARM
Ten-One Treasury ARM
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Doc 45-3
Exhibit B-1
GMAC-RFC
6A
Page 6A.11
03/13/06
Client Guide
Jumbo A
Program
14-01915-mg
Doc 45-3
Exhibit B-1
6A GMAC-RFC
Page 6A.12
03/13/06
Client Guide
Jumbo A
Program
No Ratio Documentation
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Exhibit B-1
6A
GMAC-RFC
Page 6A.13
03/13/06
Client Guide
Jumbo A
Program
Credit Score
Documentation Type
680+
680+
Stated Income
720+
No Ratio
Mortgage
Payment History
Bankruptcy/
Foreclosure
Major Adverse
Credit
0x30 in past 12
months.
None
None
14-01915-mg
Doc 45-3
Exhibit B-1
6A GMAC-RFC
Page 6A.14
03/13/06
Client Guide
Jumbo A
Program
14-01915-mg
Doc 45-3
GMAC-RFC
Exhibit B-1
6A
Page 6A.15
03/13/06
Client Guide
Jumbo A
Program
14-01915-mg
Doc 45-3
6A GMAC-RFC
Page 6A.16
03/13/06
Client Guide
Jumbo A
Program
Exhibit B-1
14-01915-mg
Doc 45-3
GMAC-RFC
Exhibit B-1
Page 6B.1
03/13/06
Client Guide
Loan Programs
Expanded Criteria
Program
6B
Expanded Criteria Loan Program
B600
Expanded Criteria Program
Expanded Criteria is a first mortgage program designed for A quality Borrowers who have
had difficulty finding financing due to Loan characteristics such as higher LTV, occupancy
and/or property type.
B601
Eligibility Standards
The eligibility standards for the Expanded Criteria Program are outlined below. Please see
individual options for restrictions. Interest Only and 40/30 Balloon features are eligible
unless otherwise noted. The Interest Only feature may not be combined with 40/30 Balloon
feature.
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Doc 45-3
Exhibit B-1
6B GMAC-RFC
Page 6B.2
03/13/06
Client Guide
Loan Programs
Expanded Criteria
Program
Available Features
Interest Only
40/30 Balloon
Fixed Rate
FRM-30
FRM-15
LIBOR ARMs
One Month
Six Month
One Year
Two-One
Three-One
Five-One
Seven-One
Ten-One
The 40/30 Balloon feature has an original term of 30 years with payments based on 40 years.
Interest Only may not be combined with 40/30 Balloon feature.
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Doc 45-3
Exhibit B-1
GMAC-RFC
6B
Page 6B.3
03/13/06
Client Guide
Loan Programs
Expanded Criteria
Program
U.S. citizen
Permanent resident alien
Non-occupant Co-Borrower
When used to assist a Borrower to qualify for an owner occupied primary
residence or second/vacation home
Not allowed for Stated Income/Stated Asset, No Income/No Asset, or No Doc
First-time homebuyer (see the Expanded Criteria At-A-Glance in Chapter 7, Program
At-A-Glances, for restrictions)
Non-permanent resident alien
Foreign national (eligible for second/vacation homes and non-owner occupied
occupancy types. See Foreign Nationals in Chapter 3A, Occupancy, Borrower and
Ownership Status for requirements and the Expanded Criteria At-A-Glance in Chapter
7, Program At-A-Glances, for restrictions)
(C) Transaction Types
Eligible transaction types:
Purchase mortgage
Rate/term refinance mortgage
Cash-Out Refinance Mortgage
Construction/Permanent mortgage
Contract for Deed/Land Contract
Lease with option to purchase transaction
Ineligible transaction types:
Non-arms length transaction (may be considered on a case-by-case basis)
Converted/modified Loan-contemplated by original Note
Converted/modified Loan-not contemplated by original Note
(D) Occupancy
Eligible occupancy types:
Primary residence, owner occupied
Second/vacation home, owner occupied
Non-owner occupied
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Exhibit B-1
6B GMAC-RFC
Page 6B.4
03/13/06
Client Guide
Loan Programs
Expanded Criteria
Program
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Exhibit B-1
6B
GMAC-RFC
Page 6B.5
03/13/06
Client Guide
Loan Programs
Expanded Criteria
Program
Residential properties with excess acreage are allowed under the Expanded Criteria
Program. Under the Expanded Criteria Program, more than ten acres is considered
excess acreage. The property must be an owner occupied primary residence.
Working farms, ranches, orchards and/or commercial operations of any type are not
permitted. The appraisal must show that such acreage is typical and readily
marketable for the area. The following conditions apply:
The site improvements must represent at least 70% of the market Value after
the deduction of the Value of the outbuildings (outbuildings include barns,
stables, machinery storage facilities and other agricultural related structures)
from the appraiser's final estimate of market Value OR
Where the site improvements represent less than 70% of the market Value
after the deduction of the Value of outbuildings, the LTV must be reduced as
follows:
% of Total Value Represented by
Dwelling
70% or greater
0%
60-69%
5%
50-59%
10%
40-49%
15%
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Exhibit B-1
6B GMAC-RFC
Page 6B.6
03/13/06
Client Guide
Loan Programs
Expanded Criteria
Program
(H) Underwriting
(1) Credit Grade Summary
Credit
Grade1
Credit
Score
A1
720+
A2
680-719
A3
620-679
Housing Payment
History
0x30 mortgage/rental
Delinquency in past 12
months; and no 60+
mortgage/rental
Delinquency in past 24
months.
Bankruptcy2
Foreclosure
Major Adverse
Credit
None reported
in past 24
months.3
Simultaneous first and second mortgage transactions must follow the most restrictive grading policy of the two
Loan Programs.
1
Adverse accounts > 24 months old that do not affect title will not be considered in grade determination and are
not required to be paid.
Product
Category
FRM
Product
Credit
Grades
A1, A2
Qualification
Fully
Amortizing
or 40/30
Balloon
Feature
With Interest
Only Feature
50%
Qualified at
Note rate
Qualified with
Interest Only
payment, taxes
and insurance
50%
Qualified at
2% over
start rate
Qualified at 2%
over start rate
with Interest
Only payment,
taxes and
insurance
50%
Qualified at
start rate
Qualified at start
rate with
Interest Only
payment, taxes
and insurance
Credit
Grade
A3
FRM-30
55%
FRM-152,3
One Month
ARM
Two, Three,
Five and
Seven Year
ARM
55%
55%
1
2
3
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Exhibit B-1
GMAC-RFC
6B
Page 6B.7
03/13/06
Client Guide
Loan Programs
Expanded Criteria
Program
The following income documentation types are available unless otherwise noted.
Full Income
Lite Income
One Paystub Income
Fast Income
Stated Income
No Ratio
Stated Income/Stated Asset
No Income/No Asset
No Doc
(4) Trailing or Relocating Co-Borrower Income
Allowed.
(5) Down Payment
Minimum down payment must be paid from Borrowers own cash, other equity, gift
funds, or Secondary Financing.
(6) Cash to Close
Deposit verification and seasoning by one of the following sources is required:
Two months bank statements
Fannie Mae Verification of Deposit (VOD) (Fannie Mae Form 1006)
If the verification of cash to close reveals a significant recent increase in the average
balance of an existing account, recent large deposits or a newly-opened account with
a significant balance, the Borrower must explain the increase and the Client must
document this explanation.
(7) Reserve Requirements
Reserves, when required, must come from Borrowers own cash. See the Expanded
Criteria At-A-Glance in Chapter 7, Program At-A-Glances.
(8) Secondary Financing
When Secondary Financing exists the maximum LTV is 80%. See the Expanded
Criteria At-A-Glance in Chapter 7, Program At-A-Glances.
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Exhibit B-1
6B GMAC-RFC
Page 6B.8
03/13/06
Client Guide
Loan Programs
Expanded Criteria
Program
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Exhibit B-1
GMAC-RFC
6B
Page 6B.9
03/13/06
Client Guide
Loan Programs
Expanded Criteria
Program
The appraisal report must be dated within 120 days of the date of the Note. If the
appraisal report is dated more than 120 days but less than 180 days from the date of
the Note, the original appraiser must certify that the Value of the Mortgaged
Premises has not declined since the date of the original appraisal. The certification
must be dated within 60 days of the date of the Note.
If the appraisal is dated more than 180 days from the date of the Note, a new
appraisal is required.
For new construction, if appraisal is dated more than 180 days from the date of the
Note, a Recertification of Value is required. If the appraisal is dated more than 12
months from the date of the Note, a new appraisal is required.
(L) Appraisal Requirements
(1) Loans to $1 million require one full URAR appraisal as outlined in the Appraisal
Requirements Section in Chapter 4F, Appraisal Requirements and Property
Underwriting.
(2) Loans over $1 million require two full URAR appraisals as outlined in the Appraisal
Requirements Section in Chapter 4F, Appraisal Requirements and Property
Underwriting.
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Exhibit B-1
6B GMAC-RFC
Page 6B.10
03/13/06
Client Guide
Loan Programs
Expanded Criteria
Program
(M)Insurance Requirements
(1) Mortgage Insurance
Mortgage Insurance Coverage
by Income Documentation Type
Product Type
LTV Range
Stated Income
and No Ratio
Stated Income/
Stated Asset, No
Income/No Asset,
and No Doc
Primary Residence
FRM-30, ARM
FRM-15
95.01 - 100%
35%
90.01% - 95%
30%
30%
35%
85.01% - 90%
25%
25%
30%
80.01% - 85%
12%
12%
25%
95.01 - 100%
30%
90.01% - 95%
25%
25%
30%
85.01% - 90%
12%
12%
25%
80.01% - 85%
6%
6%
20%
Second/Vacation Home
FRM-30, ARM
FRM-15
90.01% - 95%
30%
85.01% - 90%
25%
25%
80.01% - 85%
20%
20%
90.01% - 95%
25%
85.01% - 90%
20%
20%
12%
12%
80.01% - 85%
Non-Owner Occupied
FRM-30, ARM
FRM-15
85.01% - 90%
25%
25%
80.01% - 85%
20%
20%
85.01% - 90%
20%
20%
80.01% - 85%
12%
12%
Determining Mortgage Insurance availability is the Clients responsibility. Mortgage Insurance may not be available
or allowable under some State laws.
For Loans secured by property in New York, see Chapter 3F, Insurance and Survey Requirements, the Mortgage
Insurance Requirements for Loans Originated in New York Section.
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Exhibit B-1
GMAC-RFC
6B
Page 6B.11
03/13/06
Client Guide
Loan Programs
Expanded Criteria
Program
(O) Servicing
Commitments are available on a servicing released or servicing retained basis. For servicing
released guidelines, see Chapter 8, Servicing Released.
(P) Maximum Loan Amounts, LTVs and CLTVs
See the Expanded Criteria At-A-Glance in Chapter 7, Program At-A-Glances.
B602
Stated and No Ratio Income Documentation
(A) Maximum Loan Amounts, LTVs and CLTVs
See the Expanded Criteria At-A-Glance in Chapter 7, Program At-A-Glances.
B603
Stated Income/Stated Asset, No Income/No Asset, and No Doc Documentation
In addition to the underwriting criteria outlined in Expanded Criteria Eligibility Standards, the
following features are specific to Stated Income/Stated Asset, No Income/No Asset and No
Doc.
(A) Borrower Eligibility
Eligible Borrower types:
U.S. citizen
Permanent resident alien
Non-permanent resident alien
First-time Homebuyer
Ineligible Borrower types:
Foreign national
Non-occupant Co-Borrower
(B) Property Types
Eligible property types:
Single family, one to four unit (attached or detached)
Unit in a Planned Unit Development (PUD)
Modular Home, Panelized Home, Pre-cut Home
Condominium unlimited stories (must meet GMAC-RFC Class I, II or III warranties)
Non-warrantable condominium
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Exhibit B-1
6B GMAC-RFC
Page 6B.12
03/13/06
Client Guide
Loan Programs
Expanded Criteria
Program
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GMAC-RFC
Exhibit B-1
6B
Page 6B.13
03/13/06
Client Guide
Loan Programs
Expanded Criteria
Program
B604
Uninsured LTV
Uninsured LTV provides Borrowers (excluding First-time Homebuyers), who demonstrate a
high regard for financial obligations, with an alternative to obtaining mortgage insurance
(MI) coverage.
In addition to the underwriting criteria outlined in Expanded Criteria Eligibility Standards, the
following criteria are specific to Uninsured LTV. Interest Only and 40/30 Balloon features not
allowed with Uninsured LTV.
(A) Product Types
FRM-30
FRM-15
(B) Occupancy
Eligible occupancy types:
Primary residence, owner occupied
Second/vacation, owner occupied
Ineligible occupancy types:
Non-owner occupied property types
(C) Property Types
Eligible property types:
Single family, one to four units (attached or detached)
Unit in a Planned Unit Development (PUD)
Modular Home, Panelized Home, Pre-cut Home
Condominium unlimited stories (must meet GMAC-RFC Class, I, II, or III warranties)
Ineligible property types:
Non-warrantable condominium
Condo-Hotel
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Exhibit B-1
6B GMAC-RFC
Page 6B.14
03/13/06
Client Guide
Loan Programs
Expanded Criteria
Program
(D) Underwriting
(1) Credit Grade
Loans must meet credit grade A1 as defined in Chapter 4, Underwriting.
(2) Income Documentation Types
Full Income Documentation required.
(3) Employment History
The Borrower must have at least two years of continuous employment in the same
line of work.
(4) Down Payment
Minimum down payment must be paid from Borrowers own funds, other equity, gift
funds, or Secondary Financing.
(5) Reserve Requirements
A minimum of two months verified PITI liquid reserves is required after closing,
exclusive of closing costs.
(E) Maximum Loan Amounts, LTVs and CLTVs
See the Expanded Criteria At-A-Glance in Chapter 7, Program At-A-Glances.
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Exhibit B-1
GMAC-RFC
Page 6C.1
03/13/06
Client Guide
Loan Programs
Payment Option
Program
6C
Payment Option Loan Program
C600
Payment Option Program
GMAC-RFCs Payment Option Program is a first mortgage program that offers A quality
Borrowers the flexibility of an adjustable rate mortgage, a balloon feature, a low introductory
rate, and a choice of monthly payment options.
This program offers a choice of three One-Month ARM indices at origination: LIBOR, MTA and
COFI. After the initial payment the Borrower may select a Minimum Payment or one of three
additional payment options.
C601
Eligibility Standards
The eligibility standards for the Payment Option Program are outlined below. Please see
individual options for restrictions.
(A) Product Types
Eligible Product type:
One-Month ARM with the following index options (see Chapter 5, Products for details):
LIBOR
MTA
COFI
(B) Term
The following terms are available (see Chapter 5, Products for details)
30 Years
40 Years
40/30 ARM Balloon1
1
For Loans with a balloon feature, payments are amortized over 40 years with a 30 year maturity date.
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Exhibit B-1
6C GMAC-RFC
Page 6C.2
03/13/06
Client Guide
Loan Programs
Payment Option
Program
Second/Vacation Home
Maximum LTV/
CLTV For Cash
Out
Purchase, Rate/
Term Refinance
Maximum LTV/
CLTV
Maximum LTV/
CLTV For Cash
Out
90%/90%
70%/70%
90%/90%
70%/70%
Stated Income1
90%/90%
70%/70%
75%/75%
65%/65%
90%/90%
Income Documentation
75%/75%
Maximum Loan amount $1,500,000 or maximum Loan amount using program guidelines, whichever is less.
1
A Non-traditional credit report may be used for non-permanent resident aliens with no usable Credit Score for
Full, Lite, One Paystub, Fast and Stated Income Documentation only with maximum LTV/CLTV 75%.
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Exhibit B-1
6C
GMAC-RFC
Page 6C.3
03/13/06
Client Guide
Loan Programs
Foreign nationals are eligible following the most restrictive of either the program
guidelines (maximum LTV/CLTV and Loan amounts) or the following guidelines:
Payment Option
Program
Non-owner Occupied
Income Documentation
Purchase, Rate/
Term Refinance
Maximum LTV
Cash Out
Maximum LTV
Purchase, Rate/
Term Refinance
Maximum LTV
75%
75%
75%
Stated Income
75%
Cash Out
Maximum LTV
70%
Maximum Loan amount $1,000,000 or maximum Loan amount using program guidelines, whichever is less.
Secondary Financing not allowed.
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Exhibit B-1
6C GMAC-RFC
Page 6C.4
03/13/06
Client Guide
Loan Programs
Payment Option
Program
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Exhibit B-1
6C
GMAC-RFC
Page 6C.5
03/13/06
Client Guide
Loan Programs
Payment Option
Program
70% or greater
0%
60-69%
5%
50-59%
10%
40-49%
15%
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Exhibit B-1
6C GMAC-RFC
Page 6C.6
03/13/06
Client Guide
Loan Programs
Payment Option
Program
Credit
Score
A1
720+
A2
680-719
A3
620-679
Bankruptcy2/Foreclosure
Major Adverse
Credit
Adverse accounts > 24 months old that do not affect title will not be considered in grade determination and are
not required to be paid.
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Exhibit B-1
GMAC-RFC
6C
Page 6C.7
03/13/06
Client Guide
Loan Programs
Payment Option
Program
Borrowers are qualified at the fully amortizing payment at the greater of 4.25% or
the fully indexed rate (current index plus Margin).
Full, Lite, One Paystub and Fast Income Documentation types:
LTV > 80% = 33/38%
LTV <= 80% = 33/40%
Stated Income and Stated Income/Stated Asset Documentation types:
LTV > 80% = 33/38%
LTV <= 80% = 33/38%
(4) Income Documentation Types
The following income documentation types are available unless otherwise noted.
Full Income
Lite Income
One Paystub Income
Fast Income
Stated Income
Stated Income/Stated Asset
(5) Trailing or Relocating Co-Borrower Income
Not allowed.
(6) Down Payment
(a) Full, Lite, One Paystub and Fast Income Documentation
A minimum down payment of 5% of Value must be paid from the Borrowers
own cash for owner occupied primary residences and second/vacation homes.
The balance must be paid from cash, other equity, gift funds or Secondary
Financing.
For non-owner occupied properties, a minimum down payment of the lesser of
10% of Value or the amount required to meet the CLTV must be from the
Borrowers own cash. The balance must be paid from cash, other equity, gift
funds or Secondary Financing.
A down payment of 100% gift funds is allowed at LTVs less than or equal to 80%
when no Secondary Financing exists. In this instance, closing costs may also
be in the form of a gift.
For foreign nationals, down payment must be from Borrowers own cash and
sufficient to meet the LTV requirements. The balance must be paid from cash,
other equity or gift funds.
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Exhibit B-1
6C GMAC-RFC
Page 6C.8
04/17/06
Client Guide
Loan Programs
Payment Option
Program
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Exhibit B-1
6C
GMAC-RFC
Page 6C.9
03/13/06
Client Guide
Loan Programs
Payment Option
Program
For credit grades A1 to A3, all Credit Documents must be dated no more than 120
days prior to the Note date for existing construction and 180 days for new
construction.
(2) Appraisal Documentation
The appraisal report must be dated within 120 days of the date of the Note. If the
appraisal report is dated more than 120 days but less than 180 days from the date of
the Note, the original appraiser must certify that the Value of the Mortgaged
Premises has not declined since the date of the original appraisal. The certification
must be dated within 60 days of the date of the Note.
If the appraisal is dated more than 180 days from the date of the Note, a new
appraisal is required.
For new construction, if appraisal is dated more than 180 days from the date of the
Note, a Recertification of Value is required. If the appraisal is dated more than 12
months from the date of the Note, a new appraisal is required.
(P) Appraisal Requirements
(1) Loans to $1 million require one full URAR appraisal as outlined in the Appraisal
Requirements Section in Chapter 4F, Appraisal Requirements and Property
Underwriting.
(2) Loans over $1 million to $2 million require one full URAR appraisal and one field
review as outlined in the Appraisal Requirements Section in Chapter 4F,
Appraisal Requirements and Property Underwriting.
(3) Loans over $2 million require two full URAR appraisals.
(Q) Prior ApprovalLoans over $2 Million
GMAC-RFC requires Loans over $2 million be submitted for prior underwriting approval.
(R) Insurance Requirements
(1) Mortgage Insurance
One Month ARM Products
LTV Range
MI Coverage
(all income documentation
types)
90.01% - 95%
30%
85.01% - 90%
25%
80.01% - 85%
12%
Determining mortgage insurance availability is the Clients responsibility. Lender paid mortgage insurance is not
allowed. Mortgage insurance may not be available or allowable under some State laws.
For Loans secured by property in New York, see Chapter 3F, Insurance and Survey Requirements, the
Mortgage Insurance Requirements for Loans Originated in New York Section.
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Exhibit B-1
6C GMAC-RFC
Page 6C.10
03/13/06
Client Guide
Loan Programs
Payment Option
Program
See the Hazard Insurance, Flood Insurance, Title Insurance, PUD Insurance,
or Condominium Insurance Sections in Chapter 3F, Insurance and Survey
Requirements, for requirements.
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Exhibit B-1
GMAC-RFC
6C
Page 6C.11
03/13/06
Client Guide
Loan Programs
Payment Option
Program
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Exhibit B-1
6C GMAC-RFC
Page 6C.12
03/13/06
Client Guide
Loan Programs
Payment Option
Program
C602
Stated Income Documentation
In addition to the underwriting criteria outlined in Payment Option Eligibility Standards, the
following features are specific to Stated Income Documentation.
(A) Underwriting
(1) Down Payment
For all occupancy types (primary, second/vacation and non-owner occupied), the
Borrowers own cash must be used to meet the down payment required to meet the
CLTV requirements of the Stated Income Documentation criteria. The balance may
be paid from cash, other equity, gift funds or paid from cash, other equity, gift funds
or Secondary Financing.
(B) Property Types
Eligible property types:
Single family, one to four unit (attached or detached)
Unit in a Planned Unit Development (PUD)
Modular Homes, Panelized Home, Pre-cut Home
Condominium unlimited stories must meet GMAC-RFC Class I, II or III
Non-warrantable condominium
Property with excess acreage (see Properties with Excess Acreage under the
Additional Property Considerations Section in this Chapter)
Rural Property
Ineligible property types:
Condo-Hotel
(C) Maximum Loan Amounts, LTVs and CLTVs
See the Payment Option At-A-Glance in Chapter 7, Program At-A-Glances.
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Exhibit B-1
GMAC-RFC
6C
Page 6C.13
Client Guide
Loan Programs
Payment Option
Program
C603
Stated Income/Stated Asset Documentation
In addition to the underwriting criteria outlined in Payment Option Eligibility Standards, the
following features are specific to Stated Income/Stated Asset Documentation.
(A) Occupancy
Eligible occupancy types:
Primary residence, owner occupied
Second/vacation home, owner occupied
Ineligible occupancy types:
Non-owner occupied
(B) Property Types
Eligible property types:
Single family, one to four unit (attached or detached)
Unit in a Planned Unit Development (PUD)
Modular Homes, Panelized Home, Pre-cut Home
Condominium unlimited stories must meet GMAC-RFC Class I, II or III
Property with excess acreage (see Properties with Excess Acreage under the
Additional Property Considerations Section in this Chapter)
Rural Property
Ineligible property types:
Non-warrantable condominium
Condo-Hotel
(C) Underwriting
(1) Credit Grades A1, A2, or A3 with minimum 620+ Credit Score
Stated Income/Stated Asset Documentation Loans must meet credit grades A1, A2,
or A3. See Chapter 4, Underwriting for details.
(2) Down Payment
For all eligible occupancy types (primary and second/vacation home), the Borrowers
own cash must be used to meet the down payment required to meet the CLTV
requirements of the Stated Income/Stated Asset Documentation criteria.
(3) Reserve Requirements
See the Payment Option At-A-Glance in Chapter 7, Program At-A-Glances.
(D) Maximum Loan Amounts, LTVs and CLTVs
See the Payment Option At-A-Glance in Chapter 7, Program At-A-Glances.
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6C GMAC-RFC
Page 6C.14
Client Guide
Loan Programs
Payment Option
Program
Exhibit B-1
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GMAC-RFC
Exhibit B-1
Page 6D.1
03/13/06
Client Guide
Loan Programs
Home Solution
Program
6D
Home Solution Loan Program
D600
Home Solution Program
GMAC-RFCs Home Solution Program is a first lien product designed for Borrowers who desire
no or minimal down payment requirements. In addition, this Program allows up to 107%
financing on both purchase and refinance transactions. The Loan proceeds in excess of 100%
may be used for the following:
Traditional closing costs, including discount points, origination fees, brokers fee and
fees paid for services rendered
Prepaid items such as escrows for hazard, flood or mortgage insurance
Pay off of consumer credit such as revolving or installment debt
This is a matrix driven Program; all Loans submitted must strictly conform to the credit and
Loan parameters.
Assetwise or Assetwise Direct usage is required.
D601
Eligibility Standards
The eligibility standards for the Home Solution Program are outlined below. See individual
program options for restrictions.
(A) Product Types
Eligible product types:
FRM-30
FRM-15 (A1, A2 credit grades only)
30/15 Balloon
Two-One LIBOR ARM
Three-One LIBOR ARM
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Exhibit B-1
6D GMAC-RFC
Page 6D.2
03/13/06
Client Guide
Loan Programs
Home Solution
Program
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GMAC-RFC
Exhibit B-1
6D
Page 6D.3
03/13/06
Client Guide
Loan Programs
Home Solution
Program
(D) Occupancy
Eligible occupancy types:
Primary residence, owner occupied
Second/vacation home, owner occupied
Non-owner occupied
(E) Property Types
Eligible property types:
Single family, one or two unit (attached or detached)
Unit in a Planned Unit Development (PUD)
Modular Home, Panelized Home, Pre-cut Home
Condominium unit located in a building one to four stories
For credit grades A1, A2 and A3 condominiums must meet GMAC-RFC Class I, II
or III warranties
For credit grade A4, condominiums must meet GMAC-RFC Class III warranties
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Exhibit B-1
6D GMAC-RFC
Page 6D.4
03/13/06
Client Guide
Loan Programs
Home Solution
Program
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Exhibit B-1
6D
GMAC-RFC
Page 6D.5
03/13/06
Client Guide
Loan Programs
Home Solution
Program
Credit
Score
A1
720+
A2
680-719
A3
A4
Housing Payment
History
Bankruptcy2
Foreclosure
620-679
0x30 mortgage/rental
Delinquency in past 12
months; and no 60+
mortgage/rental
Delinquency in past 24
months.
600-619
0x30 mortgage/rental
Delinquency in past 12
months.
Major Adverse
Credit
None reported
in past 24
months.
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Exhibit B-1
6D GMAC-RFC
Page 6D.6
03/13/06
Client Guide
Loan Programs
Home Solution
Program
Credit Grade
FRM Products
ARM Products
A1
45%
40%
A2
45%
40%
A3
45%
40%
A4
50%
45%
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Exhibit B-1
GMAC-RFC
6D
Page 6D.7
03/13/06
Client Guide
Loan Programs
Home Solution
Program
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Exhibit B-1
6D GMAC-RFC
Page 6D.8
03/13/06
Client Guide
Loan Programs
Home Solution
Program
LTV Range
MI Coverage
FRM-30
30/15 Balloon
ARM
95.01% - 103%
35%
90.01% - 95%
30%
95.01% - 103%
35%
90.01% - 95%
25%
FRM-15
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Exhibit B-1
GMAC-RFC
6D
Page 6D.9
03/13/06
Client Guide
Loan Programs
Home Solution
Program
Determining Mortgage Insurance availability is the responsibility of the Client. In some instances, it may not be
available or allowable under some State laws.
For Loans secured by properties in New York, see Chapter 3F, Insurance and Survey Requirements, the
Mortgage Insurance Requirements for Loans Originated in New York Section.
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6D GMAC-RFC
Page 6D.10
03/13/06
Client Guide
Loan Programs
Home Solution
Program
Exhibit B-1
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Exhibit B-1
Page 6E.1
03/13/06
Client Guide
Loan Programs
GMAC-RFC
AlterNet Program
6E
AlterNet Loan Program
E600
AlterNet Program
AlterNet (credit grades A4 to C) is designed to purchase a wide variety of Loans with
characteristics or features that do not fit traditional A requirements, generally due to the
underlying credit quality. This consumer finance-oriented program was developed to give
Clients the chance to make both jumbo and conforming Loans outside of standard conduit
and agency guidelines.
E601
Eligibility Standards
The eligibility standards for the AlterNet Program are outlined below. Interest Only feature,
40/30 Balloon and 40 Year Recast features are eligible unless otherwise noted.
The 40/30 Balloon feature has an original term of 30 years with payments based on 40 year
amortization. The 40 Year Recast feature has an original term of 30 years with payments
based on 40 year amortization for the first ten years of the Loan. After the first ten years the
Loan is recast and payments are fully amortized over the remaining term of the Loan. The
40/30 Balloon and 40 Year Recast are eligible for primary residence and second/vacation
homes only.
(A) Product Types and Features
Products
Available Features
Interest Only
40 Year Recast
40/30 Balloon
FRM-30
FRM-15
Fixed Rate
LIBOR ARMs
Six Month
Balloon
30/15 Balloon
The 40/30 Balloon feature has an original term of 30 years with payments based on 40 years.
Interest Only feature may not be combined with 40 Year Recast or 40/30 Balloon features.
Interest Only is eligible for all products and requires the Interest Only period to be a fixed 5 year term.
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6E GMAC-RFC
Page 6E.2
03/13/06
Client Guide
Loan Programs
AlterNet Program
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Exhibit B-1
GMAC-RFC
6E
Page 6E.3
03/13/06
Client Guide
Loan Programs
AlterNet Program
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Exhibit B-1
6E GMAC-RFC
Page 6E.4
03/13/06
Client Guide
Loan Programs
AlterNet Program
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Exhibit B-1
6E
Page 6E.5
03/13/06
Client Guide
Loan Programs
AlterNet Program
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6E GMAC-RFC
Page 6E.6
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Client Guide
Loan Programs
AlterNet Program
(H) Underwriting
(1) Credit Guidelines and Debt-to-Income Ratios
Credit
Grade1
DTI2,3
Housing Payment
History
A4
A5
Ax
1x30 mortgage/rental
history in past 12 months.
Rolling Lates allowed. No
more than 30 days down
at closing.
Am
Unlimited 30 day
mortgage/rental history in
past 12 months. No more
than 30 days down at
closing.
50%4
0x30 mortgage/rental
history in past 12 months.
1x60 non-rolling
mortgage/rental history
allowed. No more than 60
days down at closing.
60-day mortgage/rental
history allowed without
restriction. 1x90 nonrolling mortgage/rental
history allowed. No more
than 90 days down at
closing.
Bankruptcy
Foreclosure
Owner Occupied:
None in past 1
year <= 95%
LTV
None in past 2
years > 95%
LTV
Non-owner
Occupied:
None in past 1
year <= 80%
LTV
None in past 2
years > 80%
LTV
Owner Occupied:
None in past 1
year <= 70%
LTV
None in past 2
years <=85%
LTV
None in past 3
years > 85%
LTV
Non-owner
Occupied:
None in past 2
years <= 75%
LTV
None in past 3
years > 75%
LTV
Major Adverse
Credit
See Major
Adverse Credit
Section in this
Chapter.
For the AlterNet Program, credit grade is determined by mortgage or rental payment history. While Credit Score,
bankruptcy, foreclosure and Major Adverse Credit account history have rules that must be applied, only
mortgage and rental history will determine credit grade.
ARM Loans will be qualified at the maximum interest rate, which could be in effect at the beginning of the second
year.
50.01% to 55% DTI allowed for credit grades A4 to C with $1,500 Residual Income or 2 months PITI reserves.
For the 40 Year Recast and 40/30 Balloon Features, DTI cannot exceed 50%
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Exhibit B-1
6E
Page 6E.7
03/13/06
Client Guide
Loan Programs
GMAC-RFC
AlterNet Program
Stated Income
Owner
Occupied
Non-owner
Occupied
Owner
Occupied
Non-owner
Occupied
A4
500
520
500
520
A5
500
540
500
540
Ax
500
520
500
520
Am
500
520
500
520
500
540
520
540
520
540
520
N/A
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Exhibit B-1
6E GMAC-RFC
Page 6E.8
03/13/06
Client Guide
Loan Programs
AlterNet Program
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Exhibit B-1
GMAC-RFC
6E
Page 6E.9
03/13/06
Client Guide
Loan Programs
AlterNet Program
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Exhibit B-1
6E GMAC-RFC
Page 6E.10
03/13/06
Client Guide
Loan Programs
AlterNet Program
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Exhibit B-1
GMAC-RFC
6E
Page 6E.11
03/13/06
Client Guide
Loan Programs
AlterNet Program
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Exhibit B-1
6E GMAC-RFC
Page 6E.12
03/13/06
Client Guide
Loan Programs
AlterNet Program
E602
Interest Only Feature Eligibility Standards
In addition to the underwriting criteria outlined in the AlterNet Eligibility Standards, the
eligibility standards specific to the Interest Only feature are outlined below. Loans with an
Interest Only feature are not eligible for 40/30 Balloon and 40 Year Recast features.
(A) Product Types
Both fixed and adjustable-rate products require the Interest Only period to be a fixed 5 year
term.
Eligible product types:
FRM-30
FRM-15
Six Month LIBOR ARM
Two Year-Six Month LIBOR ARM
Three Year-Six Month LIBOR ARM
30/15 Balloon
(B) Transaction Types
Eligible transaction types:
Purchase mortgage
Rate/term refinance mortgage
Cash-out refinance mortgage
Ineligible transaction types:
Construction/permanent mortgage
Contract for Deed/Land Contract
Lease with option to purchase transaction
Non-arms length transaction
Converted/modified Loancontemplated by original Note
Converted/modified Loannot contemplated by original Note
(C) Occupancy
Eligible occupancy types:
Primary residence, owner occupied
Ineligible occupancy types:
Second/vacation home, owner occupied
Non-owner occupied
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Exhibit B-1
GMAC-RFC
6E
Page 6E.13
03/13/06
Client Guide
Loan Programs
AlterNet Program
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Exhibit B-1
6E GMAC-RFC
Page 6E.14
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Client Guide
Loan Programs
AlterNet Program
Credit
Score
DTI
0x30 reported
mortgage history
in past 12
months.
A4
A5
Full, Lite
and Fast
Income:
580+
Stated
Income:
640+
Ax
Housing
Payment
History
45%2
0x30 rental
history in past 12
months and/or
<12 months
mortgage history
reported through
a credit
repository.
1x30 mortgage/
rental history in
past 12 months.
Rolling Lates
allowed. No more
than 30 days
down at closing.
Bankruptcy
Owner
Occupied:
None in past 1
year to 95%
LTV
None in past 2
years over
95% LTV
Non-owner
Occupied:
None in past 1
year to 80%
LTV
None in past 2
years over
80% LTV
Foreclosure
Owner
Occupied:
None in past 1
year to 70%
LTV
None in past 2
years to 85%
LTV
None in past 3
years over
85% LTV
Non-owner
Occupied:
None in past 2
years to 75%
LTV
Major Adverse
Owner
Occupied Full,
Lite, Fast: Up to
$5000 left open
to 90% LTV/
CLTV. Up to
$1500 left open
>90% LTV/CLTV
Owner
Occupied
Stated Income:
Up to $5000 left
open to 85%
LTV/CLTV. Up to
$1500 left open
>85% LTV/CLTV
Non-owner
Occupied: Up to
$1500 left open.
Must be paid if
less than 24
months unless it
is medical.
For the AlterNet Program, credit grade is determined by mortgage or rental payment history. While Credit Score,
bankruptcy, foreclosure and Major Adverse Credit account history have rules that must be applied, only
mortgage and rental history will determine credit grade.
2
45.01% to 50% DTI allowed with $1,500 Residual Income or 2 months ITI reserves.
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Exhibit B-1
6E
Page 6E.15
03/13/06
Client Guide
Loan Programs
AlterNet Program
E603
80/20 Eligibility Standards
GMAC-RFC may purchase the first mortgage only or the first and second mortgage
simultaneously. The second mortgage is not eligible for purchase without the first mortgage.
In addition to the underwriting criteria outlined in AlterNet Eligibility Standards, eligibility
standards specific to the 80/20 feature where GMAC-RFC purchases both the first and second
mortgages are outlined below.
Interest Only feature is available on the first mortgage only. Interest Only feature may not
be combined with the 40/30 Balloon or 40 Year Recast features in any one Loan.
(A) Product Types
First Mortgages
Eligible product types:
FRM-30
FRM-15
Two Year-Six Month LIBOR ARM
Three Year-Six Month LIBOR ARM
30/15 Balloon
Ineligible product types:
Six Month LIBOR ARM
Second Mortgages
Closed end second mortgages only.
Eligible product types:
FRM-30
FRM-15
30/15 Balloon
Ineligible product types
Six Month LIBOR ARM
One Year Treasury ARM
Two Year-Six Month LIBOR ARM
Three Year-Six Month LIBOR ARM
Interest only second mortgage
Line of credit
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6E GMAC-RFC
Page 6E.16
03/13/06
Client Guide
Loan Programs
AlterNet Program
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Exhibit B-1
GMAC-RFC
6E
Page 6E.17
03/13/06
Client Guide
Loan Programs
AlterNet Program
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6E GMAC-RFC
Page 6E.18
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Client Guide
Loan Programs
AlterNet Program
Credit
Score
DTI
Housing
Payment History
A4
0x30 reported
mortgage history
in past 12 months.
A5
0x30 rental
history in past 12
months and/or
<12 months
mortgage history
reported through
a credit
repository.
Full, Lite
and Fast
Income:
580+
Stated
Income:
640+
Ax
Standard:
50%2
Interest
Only:
45%3
Bankruptcy
Foreclosure
Owner
Occupied:
None in past 2
years.
Owner
Occupied:
None in past 3
years.
Major
Adverse
Credit
Up to $1500 left
open.
1x30 mortgage/
rental history in
past 12 months.
Rolling Lates
allowed. No more
than 30 days
down at closing.
Minimum Second Mortgage Loan amount is $20,000 or minimum specified by State law whichever is greater.
Maximum 6% seller concessions (non-recurring).
Standalone seconds not eligible.
Interest Only Qualification
Based on the ITI payment (interest, taxes and insurance)
Standard IO term is 5 years
IO term not allowed on second lien
1
For the AlterNet Program, credit grade is determined by mortgage or rental payment history. While Credit Score,
bankruptcy, foreclosure and Major Adverse Credit account history have rules that must be applied, only
mortgage and rental history will determine credit grade.
50.01% to 55% DTI allowed on standard Loans with $1,500 Residual Income or 2 months PITI reserves.
45.01% to 50% DTI allowed on Interest Only Loans with $1,500 Residual Income or 2 months ITI reserves.
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Exhibit B-1
6E
Page 6E.19
03/13/06
Client Guide
Loan Programs
AlterNet Program
(I) Reserve
Full, Lite, and Fast Income Documentation: None required
Stated Income Documentation:
2 months PITI for standard products
2 months ITI for Interest Only
(J) Maximum Loan Amounts LTVs, CLTVs
See the AlterNet At-A-Glance in Chapter 7, Program At-A-Glances.
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Loan Programs
AlterNet Program
Exhibit B-1
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Exhibit B-1
GMAC-RFC
Page 6F.1
03/13/06
Client Guide
Loan Programs
Performance Loan
Program
6F
Performance Loan Program
F600
Performance Program
The Performance Program is an adjustable rate mortgage program designed for the nonconforming credit Borrower who, after a demonstrated payment history meeting the
requirements of the program, will qualify for a one time opportunity to improve the interest
rate over the term of the Loan without the requirement of refinancing.
The eligible ARM Loan will specifically provide for a prescheduled qualifying period and an
adjustment date (Change Date) for the Borrower to be considered for eligibility for a
permanent gross Margin reduction. Qualification for a permanent decrease in Margin would
require all payments within 12 months prior to the Change Date be received within 30 days
of the due date and within 60 days of the due date for the 13 to 24 month prior to the
Change Date.
If the Borrower fails to meet the timely payment criteria for this program at the first Change
Date, the Borrower will not be eligible for the permanent Margin adjustment. The Margin
stated on the Note would then prevail for the term of the Loan.
In addition to the underwriting criteria outlined in the AlterNet Program (Ax through C)
Eligibility Standards Section of this Client Guide, the following features are specific to this
Performance Loan Program.
F601
Eligibility Standards
(A) Product Types
Eligible product types are:
Two Year-Six Month LIBOR ARM
Three Year-Six Month LIBOR ARM
See Chapter 5, Loan Products, for criteria specific to the above referenced GMAC-RFC
eligible ARM Loans.
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6F GMAC-RFC
Page 6F.2
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Client Guide
Loan Programs
Performance Loan
Program
(B) Underwriting
(1) Credit Grades
All Performance Loans must meet credit grades Ax, Am, B, or C.
(2) Payment History
The Loan must not have been 30 days or more past due at any time in the 12
months prior to the first Change Date specified on the Note
The Loan must not have been 60 days or more past due at any time during the 13
to 24 months prior to the change Date specified on the Note
(C) Margin Adjustments
If the Borrower meets the criteria outlined under Payment History, there will be one
permanent Margin adjustment at either 24 months or 36 months based on the parameters
of the Product Type under which the Loan was originated. The Margin reduction amount will
differ based on the Borrowers credit grade at the time of the original Loan. Maximum Margin
reductions are based on credit grades as follows:
Ax.5%
Am1.0%
B1.5%
C2.0%
An example of the Margin adjustment for the Ax grade, assuming the Borrowers payment
history has been 0x30 for 12 months and 0x60 for the 24 months prior to the first
adjustment date, is as follows:
Gross Margin as indicated on Note4.0%
Margin adjustment.501
New gross Margin to Borrower3.5%
The minimum Margin may never be decreased to less than 2.5%.
1
(D) Registration
The Client must indicate that they are registering a Performance Loan when calling the
Commitment Registration Desk. For further information, see Chapter 9, Commitment, Prior
Approval, Delivery and Funding.
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Exhibit B-1
6F
Page 6F.3
03/13/06
Client Guide
Loan Programs
Performance Loan
Program
(E) Servicing
Clients must sell Performance Loans to GMAC-RFC on a servicing released basis. The price
paid by GMAC-RFC for the servicing is included in the Loan price. Servicing will be purchased
on an Early Scheduled Transfer basis. RFC will review and purchase the Servicing Rights
simultaneously with the Loan. The Sale Date for the Servicing Rights, therefore, will be
the Funding Date of the Loan.
All payments due from the Borrower beginning the first of the month following the Sale Date
(the Effective Date of Transfer) are to be paid to the Designated Servicer. Servicing
sold to RFC will be conducted by such Servicer as GMAC-RFC may designate from time to
time. Designated Servicer information including address, telephone and endorsement
information is contained in the Designated Servicer Directory (GMAC-RFC Exhibit 1800).
For servicing released guidelines, see Chapter 8, Servicing Released.
(F) Required Additional Legal Documentation
In addition to the documents required in Chapter 9, Commitment, Prior Approval, Delivery
and Funding, a specific Performance Loan Rider is required. By executing two original riders,
the original Note and the Security Instrument will be amended. One original rider must be
attached to the Note when forwarded to GMAC-RFC. The other original rider must be
attached to the Security Instrument prior to recording at the appropriate county recording
office. (GMAC-RFC Form 16F00 with instructions for completion of the Rider on the reverse
side.)
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Page 6F.4
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Loan Programs
Performance Loan
Program
Exhibit B-1
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Exhibit B-1
GMAC-RFC
Page 6G.1
03/13/06
Client Guide
Loan Programs
1st Lien Line of
Credit
6G
1st Lien Line of Credit Loan Program
G600
1st Lien Line of Credit Program
The 1st Lien Line of Credit Program is a revolving, open-end line of credit offered to
Borrowers with A quality credit.
A 1st Lien Line of Credit that exceeds HOEPA triggers are not eligible for purchase by GMACRFC. For more information, see Home Equity Lines and 1st Lien Lines of Credit That
Exceed the HOEPA Triggers Section in Chapter 2A, Representations Warranties and
Covenants.
G601
Eligibility Standards
(A) Product Types
25 year term Prime Rate ARM; 10 year Draw Period with interest only payments, followed
by a 15 year amortized repayment period.
(B) Borrower Types
Eligible Borrower types:
U.S. Citizen
Permanent Resident Alien
Non-Permanent Resident Alien
First-Time Homebuyer
Ineligible Borrower types:
Non-occupant co-Borrower
Foreign national
(C) Transaction Types
Eligible transaction types:
Purchase Mortgages
Rate/Term Refinance Mortgages
Cash-Out Refinance Mortgages
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Exhibit B-1
6G GMAC-RFC
Page 6G.2
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Client Guide
Loan Programs
1st Lien Line of
Credit
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Exhibit B-1
GMAC-RFC
6G
Page 6G.3
03/13/06
Client Guide
Loan Programs
1st Lien Line of
Credit
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Exhibit B-1
6G GMAC-RFC
Page 6G.4
03/13/06
Client Guide
Loan Programs
1st Lien Line of
Credit
Credit Score
A1
720+
A2
680-719
A3
660+
Bankruptcy/
Foreclosure1
Housing Payment
History
0x30 mortgage/rental
Delinquency in past 12
months; and no 60+
mortgage/rental
Delinquency in past 24
months
Adverse accounts over 24 months old that do not affect title will not be considered in grade determination and are
not required to be paid.
DTI Ratio
33/38%
Qualify the Borrower on the full line amount based on
the interest only payment at the fully indexed rate
plus 2% plus taxes and insurance.
DTI with
Compensating
Factors
33%/42%
To be eligible for DTI flexibility, a minimum 660 Credit Score is required and two of the following compensating
factors:
Borrowers own equity reduces LTV by 10% below program maximum
Mortgage payment and total debt are less than or equal to the Borrowers current payment levels
Six months reserves where two or fewer are required by the program
LTV is 65% or less
Residual Income of $2,000 (Full, Lite, One Paystub and Fast Income Documentation only)
Credit upgrade was not applied to the Loan
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GMAC-RFC
6G
Page 6G.5
03/13/06
Client Guide
Loan Programs
1st Lien Line of
Credit
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Exhibit B-1
6G GMAC-RFC
Page 6G.6
03/13/06
Client Guide
Loan Programs
1st Lien Line of
Credit
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Exhibit B-1
GMAC-RFC
6G
Page 6G.7
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Client Guide
Loan Programs
1st Lien Line of
Credit
(O) Servicing
All 1st Lien Line of Credits are purchased servicing released.
Designated ServicerDesignated Servicer information including address,
telephone and endorsement information is contained in the Designated Servicer
Directories included in Chapter 11, Forms & Exhibits (GMAC-RFC Exhibit 1805).
GMAC-RFC retains the right to designate such Servicers and may change the
Designated Servicer at any time. GMAC-RFC will, prior to the effective date of any
change, provide notice as soon as possible to the Client.
Borrower Notification by ClientThe Client must notify the Borrower that the
Servicing is being transferred on the 1st Lien Line by providing the Borrower with a
goodbye letter.
Borrower StatementsThe monthly billing statement is mailed to the Borrower 19
days before the payment due date. The statement will reflect the previous months
activity. The minimum payment for the draw and repayment period will be calculated
as specified in the Line of Credit Agreement.
Monthly Payment DatesThe payment date will be disclosed in the monthly
statement mailed to the Borrower by the Designated Servicer. The Borrower will
receive the monthly statement at least 15 days prior to their first payment due date.
Payment Change DateThe first Business Day of the calendar month, effective the
first day of the billing cycle.
Borrower Minimum Monthly Payment RequirementThe Borrower may be
required to pay a minimum monthly payment amount as provided for in the Line of
Credit Agreement.
Insurance Carrier NotificationThe Client must include a specific notation to the
insurance carrier that the Servicing being transferred pertains to the 1st Lien Line of
Credit.
(P) Qualifying Prepayment Penalties
Not allowed.
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Client Guide
Loan Programs
1st Lien Line of
Credit
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Exhibit B-1
GMAC-RFC
6G
Page 6G.9
03/13/06
Client Guide
Loan Programs
1st Lien Line of
Credit
G602
Supplemental 1st Lien Line of Credit Information
(A) Annual Charge
In certain States, if provided in the Loan Documents, an annual charge will apply after the
first year. This fee is shown on the Line of Credit Agreement.
(B) Assumability
Not allowed.
(C) Borrowers Access to 1st Lien Line of Credit
Borrowers may access their 1st Lien Line of Credit upon receipt of their checks or they may
call to request to have funds wired into their account.
(1) Checks
GMAC-RFC will send a book of checks to the Borrower 7-10 days after the Loan is
purchased. These checks will allow the Borrower to access their available credit. The
minimum amount per check is specified in the Line of Credit Agreement.
(2) Credit Cards
In some states, Borrowers may request credit cards to access 1st Lien Lines of
Credit.
The credit card may not be eligible in all States, see GMAC-RFC Exhibit 1302 for
details.
(D) Changes to Daily Periodic RateAPR
The annual percentage rate (APR) and daily periodic rate may increase or decrease according
to the following procedure:
The APR is the index plus Margin. The APR is a simple interest rate and includes only
interest and no other costs
The daily periodic rate at any time equals the APR divided by 365
Any new index rate is effective the first day of the billing cycle in which the new index
rate is established
Each billing cycle will end on the last day of the calendar month
(E) Conversion Option
None.
(F) Escrow/Impound
Not available.
(G) Index
Prime Rate: The highest Prime Rate as published in the Money Rates table in The Wall
Street Journal as of the first Business Day of the calendar month.
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Loan Programs
1st Lien Line of
Credit
Exhibit B-1
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Exhibit B-1
Page 6H.1
03/13/06
Client Guide
Loan Programs
Home Equity
Program
6H
Home Equity Loan Program
H600
Home Equity Program
The Home Equity Program is for Home Equity Loans secured by a second lien on owner occupied
and non-owner occupied residences to Borrowers with A1 to A3 credit grades. The general
parameters for the Home Equity Program are defined below, followed by descriptions that
include specific requirements for each product.
Simultaneous first and second mortgage transactions must follow the most restrictive guidelines
of the two programs.
H601
Eligibility Standards
The eligibility standards for the Home Equity Program are outlined below. See the individual
program Sections for restrictions.
(A) Product Types
Goal Line Equity Line of Credit
Goal Loan Closed-end Second Mortgage
(B) Borrower Eligibility
Eligible Borrower types:
U.S. citizen
Permanent resident alien
First-time Homebuyer
Non-occupant co-Borrower
Non-Permanent Resident Alien (See Non-Permanent Resident Alien in Chapter 3A,
Occupancy, Borrower and Ownership Status.)
Ineligible Borrower types:
Foreign national
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6H GMAC-RFC
Page 6H.2
03/13/06
Client Guide
Loan Programs
Home Equity
Program
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Exhibit B-1
GMAC-RFC
6H
Page 6H.3
03/13/06
Client Guide
Loan Programs
Home Equity
Program
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Exhibit B-1
6H GMAC-RFC
Page 6H.4
03/13/06
Client Guide
Loan Programs
Home Equity
Program
Credit
Score
A1
720+
A2
680-719
A3
620-679
Bankruptcy,
Foreclosure
Adverse accounts > 24 months old that do not affect title will not be considered in credit grade determination and
are not required to be paid.
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Exhibit B-1
GMAC-RFC
6H
Page 6H.5
03/13/06
Client Guide
Loan Programs
Home Equity
Program
14-01915-mg
Doc 45-3
Exhibit B-1
6H GMAC-RFC
Page 6H.6
03/13/06
Client Guide
Loan Programs
Home Equity
Program
Yield and Margin information as stated on current rate sheet. Not available in the following States: Kansas, New York,
Texas, Virginia, and West Virginia
14-01915-mg
Doc 45-3
Exhibit B-1
GMAC-RFC
6H
Page 6H.7
03/13/06
Client Guide
Loan Programs
Home Equity
Program
14-01915-mg
Doc 45-3
Exhibit B-1
6H GMAC-RFC
Page 6H.8
03/13/06
Client Guide
Loan Programs
Home Equity
Program
14-01915-mg
Doc 45-3
Exhibit B-1
6H
GMAC-RFC
Page 6H.9
03/13/06
Client Guide
Loan Programs
Home Equity
Program
Line/Loan
Amount
Additional Requirements
3-4 units
Not Permitted
Not permitted
Automated Valuation Model (AVM)1 (This method may not be available in all geographic
locations)
<=$200,000
Single family 1-2 units
PUD 1 unit
Condominium 1-8 stories (GMACRFC Class I, II, and III)
3-4 units
Not Permitted
Not permitted
HUD-1 Method1
<=$200,000
Single family 1-4 units
PUD 1 unit
Condominium 1-8 stories (GMACRFC Class I, II, and III)
14-01915-mg
Doc 45-3
Exhibit B-1
6H GMAC-RFC
Page 6H.10
03/13/06
Client Guide
Loan Programs
Home Equity
Program
Line/Loan
Amount
Not permitted
Additional Requirements
Not Permitted
Restriction: Stated Value, AVM & HUD-I methods are not available in the States of New York and Kansas.
14-01915-mg
Doc 45-3
Exhibit B-1
6H
GMAC-RFC
Page 6H.11
03/13/06
Client Guide
Loan Programs
Home Equity
Program
Appraisals Older Than One Year From the Note Date But Less than 24 Months
Property Type
CLTV
Requirements
Additional Requirements
CLTV <=80%
14-01915-mg
Doc 45-3
Exhibit B-1
6H GMAC-RFC
Page 6H.12
03/13/06
Client Guide
Loan Programs
Home Equity
Program
14-01915-mg
Doc 45-3
GMAC-RFC
Exhibit B-1
6H
Page 6H.13
03/13/06
Client Guide
Loan Programs
Home Equity
Program
H602
Supplemental Home Equity Information
(A) Borrower Disclosure
The Client is required to comply with all federal and State disclosure requirements, including, but
not limited to, those outlined in the individual Home Equity Product Descriptions.
(B) Rescission Period
The Client must grant to Borrower the right to rescind the Home Equity Loan and notify Borrower
of that right in each case to the full extent required under any applicable laws. Prior to the
expiration of the rescission period, the Client may advance funds to the Borrower if the Home
Equity Loan is used to fund the purchase of the Mortgaged Premises.
(C) Fees Paid to Client
(1) Payment of Fees
The amount of fees to be paid to the Client will be specified on the current pricing sheet
or in the Clients Forward Commitment. GMAC-RFC, in the exercise of its sole discretion,
may reduce or refuse to pay fees for Home Equity Loans delivered with Program
Criteria violations.
Fees paid to the Client to originate under the Home Equity Program will be paid by
GMAC-RFC, by Automated Clearing House (ACH) or wire transfer upon purchase,
simultaneous with any reimbursements made to the Client if the Client advances funds
to the Borrower.
GMAC-RFC will provide the Client with the Home Equity ProductPurchase Advice
(GMAC-RFC Exhibit 16G03), which is a Loan-by-Loan summary of daily Home Equity
Loan purchases. This report will be sent by FAX to the Client upon purchase of a Home
Equity Loan.
(2) Forfeiture of Fees
GMAC-RFC may refuse to pay fees to the Client for any Home Equity Loan that
represents the refinance of a Home Equity Loan previously sold to GMAC-RFC by the
Client and is in violation of the representation regarding Non-Solicitation set forth in this
Chapter of this Client Guide.
If any payoff or liquidation occurs on the Loan within 90 days from the Purchase Date,
the Client will be required to repay to GMAC-RFC any fees and/or purchase premiums
paid for the Loan regardless of whether a new Loan is being originated by the existing
Client or a different lender.
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Exhibit B-1
6H GMAC-RFC
Page 6H.14
03/13/06
Client Guide
Loan Programs
Home Equity
Program
H603
Home Equity Program Goal Line Product Description
The GMAC-RFC Goal Line product is a program for revolving, open-end lines of credit, secured by
a lien on the Mortgaged Premises that is subordinate only to a lien securing a first mortgage
Loan.
Home Equity Goal Lines that exceed HOEPA triggers are not eligible for purchase by GMAC-RFC.
For more information, see Home Equity Lines and 1st Lien Lines of Credit That Exceed the
HOEPA Triggers Section in Chapter 2A, Representations Warranties and Covenants.
In addition to the general parameters outlined in this Home Equity Program Chapter, the
following information is specific to the Goal Line product.
(A) Goal Line Term Options
(1) Balloon15 year Draw Period with interest only payments followed by a balloon
payment
(2) 15 year5 year Draw Period followed by a 10 year repayment period
(3) 20 year10 year Draw Period with interest only payments followed by a 10 year
repayment period
(4) 25 year10 year Draw Period with interest only payments followed by a 15 year
repayment period
(5) 25 year15 year Draw Period followed by a 10 year repayment period
(6) 30 year10 year Draw Period with interest only payments followed by a 20 year
repayment period
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Doc 45-3
Exhibit B-1
GMAC-RFC
6H
Page 6H.15
03/13/06
Client Guide
Loan Programs
Home Equity
Program
14-01915-mg
Doc 45-3
Exhibit B-1
6H GMAC-RFC
Page 6H.16
03/13/06
Client Guide
Loan Programs
Home Equity
Program
14-01915-mg
Doc 45-3
GMAC-RFC
Exhibit B-1
6H
Page 6H.17
03/13/06
Client Guide
Loan Programs
Home Equity
Program
14-01915-mg
Doc 45-3
Exhibit B-1
6H GMAC-RFC
Page 6H.18
03/13/06
Client Guide
Loan Programs
Home Equity
Program
H604
Home Equity Program Goal Loan Description
The Goal Loan is a program for closed-end, fixed-rate Loans secured by a lien on the
Mortgaged Premises that is subordinate only to a lien securing a first mortgage Loan.
Closed-end is defined as a Home Equity Loan for which the proceeds are distributed to the
Borrower as a single disbursement.
(A) Goal Loan Term
5 year fixed
10 year fixed
15 year fixed
30/15 year balloonballoon Loans have a term of 15 years with an amortized payment of
30 years
25 year term5 year interest only payments followed by a 20 year repayment period
(B) Goal Loan Interest Only
See Goal Loan Interest Only Criteria in the Home Equity Goal Line and Goal Loan At-A-Glance in
Chapter 7, Program At-A-Glances.
(C) Goal Loan Calculation of Payment
In addition to the required underwriting information as detailed in the general Home Equity
Program Description, for a Goal Loan Closed-End Home Equity Loan the following additional
underwriting requirements must be met:
For fixed-rate closed-end Loans, the Loan is a fully amortized fixed payment that is added
to the housing expenses and other monthly debt to calculate the Debt-to-Income Ratio
For balloon Loans, the Loan payment will be based on a 30 year, fully-amortized, fixed
payment that is added to the housing expenses and other monthly debt to calculate the
Debt-to-Income Ratio
For Interest Only Loans, the Loan payment will be based on the Interest Only payment
that is added to the housing expense and other monthly debt to calculate the Debt-toIncome Ratio.
14-01915-mg
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GMAC-RFC
Exhibit B-1
6H
Page 6H.19
03/13/06
Client Guide
Loan Programs
Home Equity
Program
14-01915-mg
Doc 45-3
6H GMAC-RFC
Page 6H.20
03/13/06
Client Guide
Loan Programs
Home Equity
Program
Exhibit B-1
14-01915-mg
Doc 45-3
Exhibit B-1
GMAC-RFC
Page 6I.1
03/13/06
Client Guide
Loan Programs
125 CLTV Program
6I
125 CLTV Loan Program
I600
125 CLTV Program
The 125 CLTV Program is a closed-end Loan Program for Home Improvement/Debt
Consolidation/Asset Acquisition or limited cash out, based on Credit Grade. The 125 CLTV Loan
must meet the criteria for purchase set forth in this 125 CLTV Program Chapter and other
Chapters of this Client Guide.
I601
Eligibility Standards
The eligibility standards for the 125 CLTV Program are outlined below.
(A) Product Type
125 CLTV closed-end Loan secured by a first or second lien on owner occupied residences.
A closed-end Loan is defined as a Loan where the proceeds are distributed in a single
disbursement, and the repayment of the Loan is amortized over the term.
(B) Term
The term of the 125 CLTV Loan can be a maximum of 25 years. Rates and prices are posted for
fixed terms of 5, 10, 15, 20 and 25 years.
(C) Borrower Eligibility
Eligible Borrower types:
U.S. citizen
Permanent resident alien
First-time Homebuyer (see First-time Homebuyer Section for requirements)
Ineligible Borrower types:
Non-occupant co-Borrower
Non-permanent resident alien
Foreign national
14-01915-mg
Doc 45-3
Exhibit B-1
6I GMAC-RFC
Page 6I.2
03/13/06
Client Guide
Loan Programs
125 CLTV Program
14-01915-mg
Doc 45-3
Exhibit B-1
GMAC-RFC
6I
Page 6I.3
03/13/06
Client Guide
Loan Programs
125 CLTV Program
14-01915-mg
Doc 45-3
Exhibit B-1
6I GMAC-RFC
Page 6I.4
03/13/06
Client Guide
Loan Programs
125 CLTV Program
14-01915-mg
Doc 45-3
Exhibit B-1
6I
GMAC-RFC
Page 6I.5
03/13/06
Client Guide
Loan Programs
125 CLTV Program
1
2
Credit
Grade
Credit Score
Grade 1
700+
Grade 2
680-699
Grade 3
660-679
Grade 4
640-659
Housing Payment
History
Bankruptcy
0x30 mortgage/rental
7 years
Delinquency in past 12 discharged1
months; no 60+
mortgage/rental
Delinquency in the past
24 months
None
Foreclosure
7 years1
None
If a bankruptcy or foreclosure has ever occurred, the maximum Loan is $50,000 and the maximum DTI is 45%. See
current rate sheet for applicable adjustments.
Adverse accounts over 24 months old that do not affect title will not be considered in grade determination and are not
required to be paid.
Residual Income
DTI
1 (700+)
$1,500
45%
$2,000
45.01-50%
$1,500
45%
2 (680-699)
$2,000
45.01-50%
3 (660-679)
$2,500
50%
4 (640-659)
$3,000
45%
14-01915-mg
Doc 45-3
Exhibit B-1
6I GMAC-RFC
Page 6I.6
03/13/06
Client Guide
Loan Programs
125 CLTV Program
14-01915-mg
Doc 45-3
Exhibit B-1
GMAC-RFC
6I
Page 6I.7
03/13/06
Client Guide
Loan Programs
125 CLTV Program
14-01915-mg
Doc 45-3
Exhibit B-1
6I GMAC-RFC
Page 6I.8
03/13/06
Client Guide
Loan Programs
125 CLTV Program
14-01915-mg
Doc 45-3
Exhibit B-1
6I
GMAC-RFC
Page 6I.9
03/13/06
Client Guide
Loan Programs
125 CLTV Program
Loan Amount
Documentation
$10,000 - $75,000
Additional Info
14-01915-mg
Doc 45-3
Exhibit B-1
6I GMAC-RFC
Page 6I.10
03/13/06
Client Guide
Loan Programs
125 CLTV Program
Loan Amount
Documentation
Additional Info
1 unit
$10,000 - $75,000
HUD-1
Fannie Mae 1004/Freddie Mac 70
Fannie Mae Freddie Mac 2055
2 units
$10,000 - $75,000
HUD-1
Fannie Mae 1025
Freddie Mac 72
Fannie Mae/Freddie
Mac 2055. Exterior only
inspection is acceptable.
HUD-1
Fannie Mae 1073, 2055
/Freddie Mac 465, 2055
3 or 4 units
HUD-1
Fannie Mae 1025
Freddie Mac 72
$10,000 - $35,000
(3) Property Value Documentation Older Than 12 Months but Less Than 24 Months
From Note Date
Property Type
Documentation
Additional Info
HUD-1
Recertification
Field Review
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Doc 45-3
Exhibit B-1
GMAC-RFC
6I
Page 6I.11
03/13/06
Client Guide
Loan Programs
125 CLTV Program
(T) Servicing
125 CLTV Loans must be sold on a servicing released basis. The Loans are serviced by the
Servicer indicated on the Designated Servicer Directory (GMAC-RFC Exhibit 1801).
The Borrower will receive a statement from the Designated Servicer indicating the monthly
amount of the payment and the payment due date. The date of the first payment must be more
than 30 days, but cannot be more than 60 days from the date of the Note. Timely receipt of the
Loan package along with the funding of the Loan will ensure that the Borrowers account is set
up prior to the first payment due date.
Transfer of Servicing of the Borrowers account occurs immediately after the rescission period
expires. The Client must not accept payments on the account. If the Borrower wants to make a
payment before receipt of the first statement they must send the payment to the Designated
Servicer and reference their name, address and social security number. If the Client does receive
a payment from the Borrower, the payment must be forwarded immediately to the Designated
Servicer. GMAC-RFC does not purchase 125 CLTV Loans on an amortized balance, but on the
original Loan amount. Failure to remit payments received by the Borrower to the Designated
Servicer may result in unnecessary remittance and reconciling issues to the Borrower.
GMAC-RFC prefers payment on the 1st and the 15th of the month. As an exception, GMAC-RFC
will accept a modification of the first payment date in cases where disbursement is delayed and
as a result, the first payment date indicated on the Note is less than 30 days from the actual
date of disbursement.
To increase the Borrowers understanding and assure that servicing information is complete and
accurate, GMAC-RFC will review all Loans with a payment modification to determine:
The Borrower is made aware of a potential change in first payment date at closing
The actual disbursement date
The Borrower received specific information indicating the reason for a change in their first
payment date (delayed disbursement) and referencing the new payment date and
maturity date. See GMAC-RFC Form 16H02
Note: Final Truth In Lending must reflect changes in disbursement date (if applicable)
(U) Post-Purchase Servicing Issues
The Borrower may contact the Designated Servicer (GMAC-RFC Exhibit 1801) directly for
any of the following:
Subordination requests (see required Document Checklist GMAC-RFC Form 16G06)
Payment information
Request checks and/or credit cards
Payoff figures or Loan satisfaction
14-01915-mg
Doc 45-3
Exhibit B-1
6I GMAC-RFC
Page 6I.12
03/13/06
Client Guide
Loan Programs
125 CLTV Program
14-01915-mg
Doc 45-3
GMAC-RFC
Exhibit B-1
6I
Page 6I.13
03/13/06
Client Guide
Loan Programs
125 CLTV Program
I602
Supplemental 125 CLTV Program Information
(A) Borrower Disclosure
The Client is required to comply with all federal and State disclosure requirements, including, but
not limited to, those outlined in the individual 125 CLTV Product Descriptions.
(B) Rescission Period
The Client must grant to Borrower the right to rescind the 125 CLTV Loan and notify Borrower of
that right in each case to the full extent required under any applicable laws.
(C) Fees Paid to Client
(1) Payment of Fees
The amount of fees to be paid to the Client will be specified on the current pricing sheet
or in the Clients Forward Commitment. GMAC-RFC, in the exercise of its sole discretion,
may reduce or refuse to pay fees for 125 CLTV Loans delivered with Program Criteria
violations.
Fees paid to the Client to originate under the 125 CLTV Program will be paid by GMACRFC, by Automated Clearing House (ACH) or wire transfer upon purchase, simultaneous
with any reimbursements made to the Client if the Client advances funds to the
Borrower.
GMAC-RFC will provide the Client with the 125 CLTV ProductPurchase Advice (GMACRFC Exhibit 16G03), which is a Loan-by-Loan summary of daily 125 CLTV Loan
purchases. This report will be sent by FAX to the Client upon purchase of a 125 CLTV
Loan.
(2) Forfeiture of Fees
GMAC-RFC may refuse to pay fees to the Client for any 125 CLTV Loan that represents
the refinance of a 125 CLTV Loan previously sold to GMAC-RFC by the Client and is in
violation of the representation regarding Non-Solicitation set forth in this Chapter of this
Client Guide.
If any payoff or liquidation occurs on the Loan within 90 days from the Purchase Date,
the Client will be required to repay to GMAC-RFC any fees and/or purchase premiums
paid for the Loan regardless of whether a new Loan is being originated by the existing
Client or a different lender.
14-01915-mg
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Exhibit B-1
6I GMAC-RFC
Page 6I.14
03/13/06
Client Guide
Loan Programs
125 CLTV Program
14-01915-mg
Doc 45-3
Exhibit B-1
GMAC-RFC
Page 6J.1
03/13/06
Client Guide
Loan Programs
Non-Standard
Loan Program
6J
Non-Standard Loan Program
J600
Non-Standard Program
GMAC-RFCs Negotiated Conduit Asset (NCA) Program is a non-standard mortgage program
designed to purchase Loans that do not comply with one or more of the criteria stated in the
standard Loan Program Chapters of this Client Guide. Loans purchased under an NCA
Commitment must meet the standards as published in Chapter 3, Loan Eligibility, and Chapter
4, Underwriting, and other Chapters of this Client Guide.
GMAC-RFC purchases Loans at its sole discretion under the NCA Program. NCA Commitments
are negotiated on an individual or bulk basis.
Except for the criteria that caused the Loan to fall out of the standard Loan Program, the Loan
must comply with the credit standards and all other guidelines of that Loan Program. For
example, a Loan underwritten to Jumbo A guidelines that does not comply with the Debt-toIncome Ratio may be purchased under an NCA Jumbo A Commitment. All other Jumbo A
Program underwriting standards and criteria must be met.
J601
Ineligible Loans
Although GMAC-RFC will consider Loans that do not comply with one of the standard Loan
Programs, the following is a list of criteria that GMAC-RFC will not consider as eligible for
purchase:
Stated income, Stated Income/Stated Asset, No Ratio, and No Income/No Asset Loans for
wage earners if the Credit Score is below 600
Section 32 Loans
Evidence of Fraud
Manufactured Homes
Working Farms and Ranches
Loans made to corporate Borrowers, churches, partnerships, and estates
Loans where the Borrower was delinquent on their first payment
Balloons with less than a 5 year term
Prepayment penalties more than 5 years
Single premium insurance, or any life insurance policy attached to the Loan
Commercial properties, multifamily (more than 4 units)
Previous mortgage history more than or equal to 1 x 120 (last 12 months)
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6J GMAC-RFC
Page 6J.2
03/13/06
Client Guide
Loan Programs
Non-Standard
Loan Program
Exhibit B-1
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GMAC-RFC
Exhibit B-1
Page 7.1
04/17/06
Client Guide
At-A-Glances
7
At-A-Glances
700
Program At-A-Glances
The following At-A-Glances are provided for your convenience:
At-A-Glance
Updated
03/13/06
03/13/06
11/21/05
Jumbo A At-A-Glance
04/17/06
03/13/06
04/17/06
07/22/05
AlterNet At-A-Glance
04/17/06
03/13/06
04/17/06
07/22/05
04/17/06
11/21/05
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7 GMAC-RFC
Page 7.2
04/17/06
Client Guide
At-A-Glances
Exhibit B-1
14-01915-mg
Doc 45-3
Exhibit B-1
Jumbo A
Payment Option
Home Solution
AlterNet
Home Equity
125 CLTV
Products
FRMs
FRMs
FRM-30
FRM-30
FRM-15
FRM-15
LIBOR ARMs
One Month
LIBOR ARMs
One Month
Six Month
One Year
Three-One
Five-One
Seven-One
Ten-One
One Year-Six Month
Three Year-Six Month
Five Year-Six Month
Seven Year-Six Month
Ten Year-Six Month
One-Month ARM
with the following
index options:
LIBOR
MTA
COFI
Six Month
Three Year-Six Month
Payment options
available:
Minimum Payment
Interest Only
FRMs
FRMs
FRM-30
FRM-30
FRM-15
FRM-15
LIBOR ARMs
LIBOR ARMs
Two-One
Three-One
Balloon
30/15 Balloon
Six Month
Two Year-Six
Month
Equity line of
credit
Equity Line of
Credit
Closed End
Second Mortgage
(fully amortized
and balloon
options)
Closed End
Second
Mortgage (fully
amortized and
balloon options)
Three Year-Six
Month
Treasury ARMs
One Year
payment
Fully-amortized
Balloon
payment
30/15 Balloon
15-year payment
Seven-One
Ten-one
Treasury ARMs
One Year
Three-One
Five-One
Seven-One
Ten-One
03/13/06
Page 1 of 4
14-01915-mg
Doc 45-3
Exhibit B-1
Jumbo A
Expanded Criteria
Payment Option
Home Solution
AlterNet
Home Equity
125 CLTV
Borrower
US Citizen
Permanent Resident
US Citizen
Permanent Resident
US Citizen
Permanent
Non-occupant
Non-Permanent
Non-occupant
Non-Permanent
Non-occupant
Non-Permanent
Foreign National
Foreign National
Alien
co-Borrower
Resident Alien
Alien
Resident Alien
co-Borrower
Resident Alien
US Citizen
Permanent
Resident Alien
co-Borrower
US Citizen
Permanent
US Citizen
Permanent
US Citizen
Permanent
Non-Permanent
Non-Permanent
Non-Permanent
Resident Alien
Resident Alien
Resident Alien
Resident Alien
Resident Alien
US Citizen
Permanent
Resident Alien
Resident Alien
Non-occupant
Resident Alien
co-Borrower
Occupancy
Primary residence,
Primary residence,
Primary residence,
Second/vacation home,
Second/vacation home,
Second/vacation
owner occupied
owner occupied
owner occupied
owner occupied
Non-owner occupied
owner occupied
home, owner
occupied
Non-owner
occupied
Primary
Primary
Primary
Primary
Second/vacation
Second/vacation
Second/vacation
Second/vacation
Non-owner
Non-owner
residence, owner
occupied
home, owner
occupied
occupied
residence, owner
occupied
home, owner
occupied
occupied
residence, owner
occupied
home, owner
occupied
residence, owner
occupied
Primary
residence,
owner occupied
home, owner
occupied
Non-owner
occupied
03/13/06
Page 2 of 4
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Doc 45-3
Exhibit B-1
Expanded Criteria
Jumbo A
Payment Option
Home Solution
AlterNet
Home Equity
125 CLTV
Property
Single family
PUD
Condominium
2-4 units
Modular Home, Pre-cut
Home, Panelized Home
Rural Property
Single family
PUD
Condominium
2-4 units
Modular, Pre-cut,
Panelized Home
Non-Warrantable
Condominiums
Condo-Hotels
Rural Property
Single family
PUD
Modular Home,
PUD
Modular Home,
Pre-cut Home,
Panelized Home
Condominium
2-4 units
Non-Warrantable
Pre-cut Home,
Panelized Home
Condominium
(low-rise only)
Condominiums
Single family
PUD
Condominium
2-4 units
Modular Home,
Pre-cut Home,
Panelized Home
Single family
PUD
Condominium
Modular Home,
Pre-cut Home,
Panelized Home
Rural Property
Rural Property
Single family
PUD
Condominium
2 units
3-4 units
Modular Home,
Pre-cut Home,
Panelized Home
Non-Warrantable
Condo-Hotel
Rural Property
Condominiums
Single family
PUD
Condominium
2 units
3-4 units
Modular Home,
Pre-cut Home,
Panelized Home
Rural Property
Rural Property
Stated Income, No
Paystub, Fast
Stated Income,
and Stated
Income/Stated
Asset Income
Documentation
Loans require a
credit grade of A1,
A2, or A3
Stated Income
Loans require
credit grades of
A1 or A2
Credit quality as
described by
credit grades A4,
A5, Ax, Am, B, or
C
Paystub, and
Fast Income
Documentation
require a credit
grade of A1, A2,
or A3
Stated Income
Documentation
requires credit
grades of A1, A2,
or A3
Paystub, Fast,
Stated Income,
No Ratio, Stated
Income/Stated
Asset, No Income
No Asset and No
Doc Loans require
a credit grade of
A1, A2, or A3
Credit quality as
described by 125
Loan Program
credit grades 1,
2, 3 and 4
03/13/06
Page 3 of 4
14-01915-mg
Doc 45-3
Exhibit B-1
Expanded Criteria
Jumbo A
Payment Option
Home Solution
AlterNet
Home Equity
125 CLTV
Full
Lite
One Paystub
Fast
Stated Income
Full
Lite
One Paystub
Fast
Stated Income
No Ratio
Stated Income/Stated
Asset
Full
Lite
One Paystub
Full
Lite
Stated Income
Fast
Stated Income
Stated
Income/Stated
Asset
No Income/No Asset
No Doc
Full
Lite
Fast
Stated Income
Full
Lite
One Paystub
Fast
Stated Income
Full
Full
Lite
One Paystub
Fast
Stated Income
No Ratio
Stated
Income/Stated
Asset
No Income/No
Asset
No Doc
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Exhibit B-1
Credit Grade
A1
720+
A2
680-719
A3
620-679
Ax
Am
B
Foreclosure
A4
(Home Solution) 0x30 mortgage/rental Delinquency in past 12 months
600-619
0x30 reported mortgage history in past 12 months
A4
(AlterNet)
A5
Bankruptcy
Owner Occupied:
None in past 1 year <= 95% LTV
0x30 rental history in past 12 months or < 12 months mortgage None is past 2 years > 95% LTV
history reported through a credit repository
Non-owner Occupied:
1x30 mortgage/rental history in past 12 months Rolling lates
None in past 1 year <= 80% LTV
allowed. No more than 30 days down at closing
None in past 2 years > 80% LTV
Unlimited 30-day mortgage/rental history in past 12 months.
No more than 30 days down at closing.
0x30 mortgage/rental history in past 12 months. 1x60
non-rolling mortgage/rental history allowed. No more than 60
days down at closing.
Major Adverse
Credit
None reported in
3
past 24 months.
For the AlterNet Program, credit grade is determined by mortgage or rental payment history. While Credit Score, bankruptcy, foreclosure and major adverse account history
have rules that must be applied, only mortgage and rental history will determine credit grade.
Chapter 7 and 13 measured by discharge or dismissal date, except for AlterNet, Chapter 13 measured by filing date. Chapter 13 must be paid off prior to or at closing. Credit
grades A4 to C must be paid as agreed for past 12 months.
Adverse accounts over 24 months old that do not affect title will not be considered in grade determination and are not required to be paid.
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Exhibit B-1
Jumbo A
Expanded
Criteria
A1-A2
50%
55%
A3
45%
50%
A4
Home Solution
45% FRM
50% FRM
40% ARM
45% ARM
Ax-C
Jumbo A
Expanded
Criteria
50%
55%
45%
50%
AlterNet
50%
45%
50%
45%
Maximum allowable DTIs vary by individual Loan Programs. Loans that exceed the individual Loan Program standards may be eligible for purchase as an exception under
a non-standard Loan Program or will be slotted to a Loan Program that accepts higher DTIs regardless of credit grade.
DTI Flexibility not allowed for Jumbo A, Expanded Criteria, and Home Solution Programs.
1
50.01-55% DTI allowed for credit grades A4 to C with $1,500 residual income or 2 months PITI reserves. For the 40 Year Recast and 40/30 Balloon Features, DTI cannot
exceed 50%
45.01% to 50% DTI allowed with Residual income of $1,500 or 2 months reserves.
A1, A2, A3
33/38%
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Exhibit B-1
DTI Ratio
33/38%
Qualify the Borrower on the full line amount based on the interest only payment
at the fully indexed rate plus 2% plus taxes and insurance.
33%/42%
To be eligible for DTI flexibility, a minimum 660 Credit Score is required and two of the following compensating factors:
Borrowers own equity reduces LTV by 10% below program maximum
Mortgage payment and total debt are less than or equal to the Borrowers current payment levels
Six months reserves where two or fewer are required by the program
LTV is 65% or less
Residual Income of $2,000 (only applies for Full, Lite, One Paystub and Fast Income Documentation)
Credit upgrade was not applied to the Loan
Home Equity Goal Loan and Goal Line Programs Credit Guidelines
Credit Grade
Credit Score
Bankruptcy, Foreclosure
A1
720+
A2
680-719
A3
620-679
Adverse accounts over 24 months old that do not affect title will not be considered in grade determination and are not required to be paid.
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Exhibit B-1
DTI
55%
50%
45%
Credit Grades
A1 (720+)
A1, A2, A3
A1, A2, A3
This is summary information only. Refer to the Client Guide for complete and definitive underwriting guidelines.
1 Restricted
Credit Score
700+
680-699
660-679
640-659
Bankruptcy
7 years discharged
None
Foreclosure
1
7 Years
If a bankruptcy or foreclosure has ever occurred, the maximum Loan amount is $50,000 and the maximum DTI is 45%. See current rate sheet for applicable adjustments.
Adverse accounts over 24 months old that do not affect title will not be considered in grade determination and are not required to be paid.
Residual Income
DTI
$1,500
$2,000
$1,500
$2,000
$2,500
$3,000
45%
45.01-50%
45%
45.01-50%
50%
45%
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Exhibit B-1
Documentation Requirements
Full
Lite
One Paystub
Fast
Stated
No Ratio
SI/SA
NI/NA
No Doc
Wage Earner
Most recent pay stub(s)
showing 30-days YTD
income
Written VOE
Written VOE
2 years of
continuous
employment with
same employer
required
stub(s) showing
30-days YTD income
Income must be
stated on
application
Verbal VOE
Written VOE
Verbal VOE
Bonus or overtime:
Averaged over most
recent 2 years unless
declining, then past 12
months will be averaged.
Bonus or overtime
not used for
qualifying.
Bonus or overtime
not used for
qualifying.
Bonus or overtime:
Averaged over most
recent year.
Commission: Averaged
over most recent 2 years
using personal tax returns
& deducting
non-reimbursed business
expenses as reported on
IRS form 2106. If
declining in most recent
tax year, lower income is
used.
Commission not
used for qualifying.
Commission not
used for
qualifying.
Commission:
Averaged over most
recent year using
personal tax returns &
deducting
non-reimbursed
business expenses as
reported on IRS form
2106.
GMAC-RFC At-A-Glance
Income Documentation
Verbal VOE
Salaried
Borrowers must
have a minimum
of 2 years of
continuous
employment with
the same
employer or in
the same line of
work.
Income must
be stated on
application
Verbal VOE
Verbal VOE
The Borrower
is not required
to disclose
income,
income source
or assets.
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Exhibit B-1
Lite
One Paystub
Fast
Stated
No Ratio
SI/SA
NI/NA
No Doc
Self-Employed
Personal tax returns with
Not available
Not available
Proof of existence of
Proof of existence of
Confirmation through
Confirmation through
business (business
license
or
business (business
license
or
phone directory
listing) for most recent
2 years
Additional
requirement: If >120
days since filing tax
return, a signed & dated
P&L.
Proof of existence
of business
(business license
or
Confirmation
through phone
directory listing)
for most recent 2
years
Income must be
Proof of
existence of
business
(business license
or
Confirmation
through phone
directory listing)
for most recent 2
years
stated on
application
Proof of
Proof of
Confirmation
Confirmation
existence of
business
(business
license
or
through phone
directory
listing) for
most recent 2
years
The Borrower
is not required
to disclose
income,
income source
or assets.
existence of
business
(business
license
or
through phone
directory
listing) for
most recent 2
years
Income must
be stated on
application
Additional
requirement: If >120
days since filing tax
return, a signed &
dated P&L.
Fixed Income
One of the following:
W-2P Form for most
recent 2 years
Not available
Not available
Copy of divorce
Copy of divorce
Specific source of
income must be
stated on
application
2 years history of
receipt with
expected
continuity of
income
Income stated
on application.
Specific
source of
income must
be stated on
application
2 years history
The Borrower
is not required
to disclose
income,
income source
or assets.
of receipt with
expected
continuity of
income
GMAC-RFC At-A-Glance
Income Documentation
11/21/05
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Exhibit B-1
Lite
One Paystub
Fast
Stated
No Ratio
SI/SA
Specific source of
Income stated
on application.
NI/NA
No Doc
Rental Income
One of the following
documents is required:
Not available
Not available
Subject
Property-Purchase
Subject
Property-Purchase
Operating Income
Operating Income
Statement (Form216) or
Operating Income
Statement (Form216)
or
Current lease
agreement signed by
the owner and lessee of
the property
2 years history of
receipt with
expected
continuity of
income
Specific
source of
income must
be stated on
application
2 years history
of receipt with
expected
continuity of
income
The Borrower
is not required
to disclose
income,
income source
or assets.
Operating Income
income must be
stated on
application
Subject
Property-Refinance
Non-Subject Property
agreement or
agreement or
GMAC-RFC At-A-Glance
Income Documentation
11/21/05
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Exhibit B-1
Lite
One Paystub
Fast
Stated
No Ratio
SI/SA
Specific source of
Income stated
on application.
NI/NA
No Doc
Not available
Proof of assets to
2 years history of
Proof of assets to
income must be
stated on
application
Specific
source of
income must
be stated on
application
2 years history
receipt with
expected
continuity of
income
The Borrower
is not required
to disclose
income,
income source
or assets.
of receipt with
expected
continuity of
income
Trust Income
Trust Agreement or
Trustee's Statement and
one of the following:
Personal tax returns with
all schedules for most
recent 2 years
Not available
Not available
Trust Agreement or
Trustee's Statement
and one of the
following:
Personal tax return
with all schedules for
most recent year
Specific source of
income must be
stated on
application
2 years history of
receipt with
expected
continuity of
income
Income stated
on application.
Specific
source of
income must
be stated on
application
2 years history
The Borrower
is not required
to disclose
income,
income source
or assets.
of receipt with
expected
continuity of
income
GMAC-RFC At-A-Glance
Income Documentation
11/21/05
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Exhibit B-1
Lite
One Paystub
Fast
Stated
No Ratio
SI/SA
Specific source of
Income stated
on application.
NI/NA
No Doc
Note Income
Copy of Note and one of
the following:
2 years tax returns with
all schedules
Not available
Not available
Bank statements
2 years history of
Bank statements
income must be
stated on
application
source of
income must
be stated on
application
2 years history
receipt with
expected
continuity of
income
Specific
The Borrower
is not required
to disclose
income,
income source
or assets.
of receipt with
expected
continuity of
income
Not available
Award Letter
Personal tax return
Award Letter
Specific source of
income must be
stated on
application
Income stated
on application.
2 years history of
source of
income must
be stated on
application
2 years history
receipt with
expected
continuity of
income
Specific
The Borrower
is not required
to disclose
income,
income source
or assets.
of receipt with
expected
continuity of
income
Not available
Insurance Award
Letter
Letter from
Borrower's employer
Specific source of
income must be
stated on
application
2 years history of
receipt with
expected
continuity of
income
employer
GMAC-RFC At-A-Glance
Income Documentation
Income stated
on application.
Specific
source of
income must
be stated on
application
2 years history
The Borrower
is not required
to disclose
income,
income source
or assets.
of receipt with
expected
continuity of
income
11/21/05
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Exhibit B-1
Lite
One Paystub
Fast
Stated
No Ratio
SI/SA
NI/NA
No Doc
Not available
Borrower's employer
GMAC-RFC At-A-Glance
Income Documentation
Specific source of
income must be
stated on
application
2 years history of
receipt with
expected
continuity of
income
Income stated
on application.
Specific
source of
income must
be stated on
application
2 years history
The Borrower
is not required
to disclose
income,
income source
or assets.
of receipt with
expected
continuity of
income
11/21/05
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Exhibit B-1
Jumbo A At-A-Glance
This is summary information only. Refer to the Client Guide for complete and definitive underwriting guidelines.
Full, Lite, One Paystub and Fast Income Documentation
Occupancy
Maximum Loan
2,3
Amount
Property Type
LTV/CLTV
A1, A2
Primary Residence
Owner Occupied
$500,000
95%/100%
Cash-Out Refinance
A3
A1, A2
A3
90%/95%
90%/95%
90%/95%
90%/95%
90%/95%
90%/95%
$650,000
95%/100%
$1,000,000
80%/95%
75%/95%
75%/80%
70%/80%
$1,500,000
75%/80%
65%/75%
70%/75%
65%/70%
$2,000,000
70%/75%
60%/70%
65%/70%
55%/60%
60%/75%
Second/Vacation
Owner Occupied
Purchase, Rate/Term
$500,000
90%/90%
75%/90%
70%/85%
$650,000
90%/90%
75%/90%
65%/75%
55%/70%
$1,000,000
65%/75%
60%/65%
55%/65%
50%/65%
$1,500,000
60%/75%
55%/65%
55%/60%
50%/60%
$2,000,000
60%/70%
50%/60%
50%/60%
50%/50%
$500,000
95%/95%
90%/95%
75%/90%
70%/90%
$650,000
90%/90%
85%/95%
75%/90%
70%/90%
$1,000,000
75%/90%
60%/85%
70%/80%
60%/80%
$1,500,000
70%/80%
60%/70%
65%/75%
55%/70%
$2,000,000
65%/75%
50%/65%
60%/70%
50%/65%
Reserve requirement: Must be verified PITI (ITI for Interest Only Loans) liquid reserves remaining after closing, exclusive of closing costs and cash out received:
None required for credit grade A1
2 months required for credit grades A2 and A3
12 months required for Loan amounts > $1 million
Secondary Financing: When exists the maximum LTV is 80%
1
2
3
4
Condominium units located within a building > 8 stories must meet Class III Warranties and be located in areas with proven marketability.
Minimum Loan amount $75,000
Interest Only feature for FRM-30 is allowed only for Loan amounts >$417,000
Cash out limits:
GMAC-RFC At-A-Glance
Jumbo A Loan Program
04/17/06
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Exhibit B-1
Jumbo A At-A-Glance
Stated Income Documentation
Maximum Loan
2,3
Amount
Property Type
Occupancy
Primary Residence
Owner Occupied
Second/Vacation
Owner Occupied
LTV/CLTV
4
Purchase, Rate/Term
Cash-Out Refinance
A1
A2
$500,000
95%/95%
90%/95%
70%/80%
65%/75%
$650,000
80%/90%
75%/90%
70%/75%
60%/70%
$1,000,000
75%/90%
70%/90%
60%/70%
55%/65%
$1,500,000
60%/70%
60%/60%
50%/60%
50%/50%
$2,000,000
55%/70%
55%/60%
50%/55%
50%/50%
$500,000
70%/80%
65%/75%
$650,000
65%/75%
60%/70%
$1,000,000
55%/65%
50%/60%
$500,000
90%/90%
75%/90%
70%/70%
$650,000
80%/90%
70%/90%
70%/70%
$1,000,000
65%/80%
60%/80%
60%/60%
$1,500,000
55%/70%
50%/65%
50%/50%
$2,000,000
50%/65%
50%/60%
50%/50%
A2
A1
Reserve requirement: Must be verified PITI (ITI for Interest Only Loans) liquid reserves remaining after closing, exclusive of closing costs and cash out received:
2 months required for credit grade A1
3 months required for credit grade A2
12 months required for Loan amounts > $1 million
Secondary Financing: When exists the maximum LTV is 80%
1
Condominium units located within a building > 8 stories must meet Class III Warranties and be located in areas with proven marketability.
2
3
4
Primary Residence
Owner Occupied
Maximum Loan
Amount
Stated Income
LTV/CLTV
No Ratio
A1, A2
A1, A2
A1
$300,000
95%/95%
80%/80%
80%/80%
$400,000
90%/95%
80%/80%
80%/80%
$650,000
$1,000,000
80%/95%
70%/95%
75%/80%
65%/80%
75%/80%
65%/80%
GMAC-RFC At-A-Glance
Jumbo A Loan Program
04/17/06
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Exhibit B-1
Maximum
1
Loan Amount
Purchase Rate/Term
A1 & A2
Cash-out Refinance
A3
A1 & A2
A3
$500,000
100%100%
95%/100%
95%/100%
95%/100%
$650,000
95%/100%
95%/100%
90%/100%
90%/100%
$1,000,000
80%/100%
80%/100%
80%/100%
80%/100%
$1,500,000
75%/100%
75%/100%
75%/100%
75%/100%
$2,000,000
70%/100%
70%/100%
70%/100%
70%/100%
$500,000
100%/100%
95%/100%
95%/95%
95%/95%
$650,000
95%/100%
95%/100%
90%/90%
90%/90%
$1,000,000
80%/100%
80%/100%
75%/75%
65%/70%
$1,500,000
75%/100%
75%/100%
60%/65%
60%/65%
$2,000,000
70%/100%
70%/100%
55%/60%
55%/60%
Reserve requirement: Reserves must be verified PITI (ITI for Interest Only Loans) liquid reserves remaining after closing, exclusive of closing costs and cash out received:
None required for credit grade A1
Two months required for credit grades A2 and A3
12 months required for Loan amounts > $1 million
Secondary Financing: When exists the maximum LTV is 80%.
Foreign nationals: Not allowed for primary residence, owner occupied property.
1
Maximum 75% LTV/CLTV on Loan amounts <= $75,000
2
GMAC-RFC At-A-Glance
Expanded Criteria Loan Program
03/13/06
Page 1 of 8
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Exhibit B-1
Maximum
1
Loan Amount
LTV/ CLTV
2
Purchase Rate/Term
Cash-out Refinance
A1, A2 & A3
A1, A2 & A3
$500,000
95%/100%
95%/100%
$650,000
90%/100%
90%/100%
$1,000,000
80%/100%
80%/100%
$1,500,000
75%/100%
75%/100%
$2,000,000
70%/100%
70%/100%
Reserve requirement: Reserves must be verified PITI (ITI for Interest Only Loans) liquid reserves remaining after closing, exclusive of closing costs and cash out received:
None required for credit grade A1
Two months required for credit grades A2 and A3
12 months required for Loan amounts > $1 million
Secondary Financing: When exists the maximum LTV is 80%.
Foreign nationals: Allowed with maximum 75% LTV up to $1 million Loan amount. Secondary financing not allowed. Additional restrictions may apply. See Foreign Nationals section
for additional requirements.
1
Maximum 75% LTV/CLTV on Loan amounts <= $75,000.
2
GMAC-RFC At-A-Glance
Expanded Criteria Loan Program
03/13/06
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Exhibit B-1
LTV/ CLTV
Maximum
1
Loan Amount
Purchase Rate/Term
Cash-out Refinance
A1, A2 & A3
A1, A2 & A3
$500,000
90%/100%
90%/90%
$650,000
90%/100%
90%/90%
$1,000,000
80%/100%
80%/90%
$1,500,000
75%/100%
75%/90%
$2,000,000
70%/100%
70%/90%
$500,000
90%/100%
75%/90%
$650,000
90%/100%
70%/90%
$1,000,000
80%/100%
55%/65%
$1,500,000
75%/100%
55%/60%
$2,000,000
70%/100%
50%/60%
Reserve requirement: Reserves must be verified PITI (ITI for Interest Only Loans) liquid reserves remaining after closing, exclusive of closing costs and cash out received:
Six months required for all credit grades
12 months required for Loan amounts > $1 million
Secondary Financing: when exists the maximum LTV is 80%.
Foreign nationals: Allowed with maximum 75% LTV up to $1 million Loan amount. Secondary Financing not allowed. Additional restrictions may apply. See Foreign Nationals
section for additional requirements.
1
Maximum 75% LTV/CLTV on Loan amounts <= $75,000
2
GMAC-RFC At-A-Glance
Expanded Criteria Loan Program
03/13/06
Page 3 of 8
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Exhibit B-1
Maximum Loan
1
Amount
LTV/ CLTV
2
Purchase Rate/Term
Cash-out Refinance
A1 & A2
A3
A1 & A2
A3
$500,000
95%/100%
90%/100%
90%/90%
85%/85%
$650,000
90%/100%
85%/100%
80%/80%
80%/80%
$1,000,000
80%/90%
65%/80%
75%/80%
50%/65%
$1,500,000
70%/80%
$2,000,000
65%/80%
$500,000
80%/90%
80%/80%
80%/80%
$650,000
80%/90%
80%/80%
70%/70%
$1,000,000
75%/80%
$1,500,000
70%/80%
$2,000,000
65%/80%
70%/80%
65%/80%
60%/65%
Reserve requirement: Reserves must be verified PITI (ITI for Interest Only Loans) liquid reserves remaining after closing, exclusive of closing costs and cash out received:
Six months required for all credit grades
12 months required for Loan amounts > $1 million
Secondary Financing: When exists the maximum LTV is 80%.
Foreign nationals: Not allowed for primary residence, owner occupied property.
1
Maximum 75% LTV/CLTV on Loan amounts <= $75,000
2
GMAC-RFC At-A-Glance
Expanded Criteria Loan Program
03/13/06
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Exhibit B-1
Second/Vacation
Owner Occupied
Property Type
Maximum
1
Loan Amount
LTV/ CLTV
2
Purchase Rate/Term
Cash-out Refinance
A1 & A2
A3
A1 & A2
$500,000
90%/90%
80%/80%
90%/90%
$650,000
80%/90%
80%/80%
75%/80%
$1,000,000
75%/80%
75%/80%
$1,500,000
70%/80%
70%/80%
$2,000,000
65%/80%
65%/80%
Reserve requirement: Reserves must be verified PITI (ITI for Interest Only Loans) liquid reserves remaining after closing, exclusive of closing costs and cash out received:
Six months required for all credit grades
12 months required for Loan amounts > $1 million
Secondary Financing: When exists the maximum LTV is 80%.
Foreign nationals: Allowed for Stated Income only with maximum 70% LTV up to $1 million Loan amount. Secondary financing not allowed. Additional restrictions may apply. See
Foreign Nationals section for additional requirements.
1
Maximum 75% LTV/CLTV on Loan amounts <= $75,000
2
GMAC-RFC At-A-Glance
Expanded Criteria Loan Program
03/13/06
Page 5 of 8
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Exhibit B-1
Purchase Rate/Term
Cash-out Refinance
A1 & A2
A3
A1 & A2
$500,000
90%/90%
75%/75%
75%/80%
75%/75%
75%/80%
$650,000
80%/80%
$1,000,000
75%/80%
75%/80%
$1,500,000
70%/80%
70%/80%
$2,000,000
65%/80%
65%/80%
$500,000
80%/80%
65%/65%
75%/75%
65%/65%
70%/70%
$650,000
75%/80%
$1,000,000
75%/80%
$1,500,000
70%/80%
$2,000,000
65%/80%
50%/65%
Reserve requirement: Reserves must be verified PITI (ITI for Interest Only Loans) liquid reserves remaining after closing, exclusive of closing costs and cash out received:
Six months required for all credit grades
12 months required for Loan amounts > $1 million
Secondary Financing: When exists the maximum LTV is 80%.
Foreign nationals: Allowed for Stated Income only with maximum 70% LTV up to $1 million Loan amount. Secondary financing not allowed. Additional restrictions may apply. See
Foreign Nationals section for additional requirements.
1
2
GMAC-RFC At-A-Glance
Expanded Criteria Loan Program
03/13/06
Page 6 of 8
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Exhibit B-1
Property Type
Purchase Rate/Term
A1 & A2
Second/Vacation
Owner Occupied
Cash-out Refinance
A3
A1, A2
90%/90%
$500,000
95%/95%
80%80%
$650,000
80%80%
70%/70%
$1,000,000
65%/80%
60%/80%
$1,500,000
60%/80%
60%/80%
$2,000,000
50%/70%
$500,000
75%/80%
65%/65%
65%/80%
$650,000
75%/80%
65%/65%
65%/80%
$1,000,000
65%/80%
60%/80%
$1,500,000
60%/80%
60%/80%
$2,000,000
50%/60%
50%/60%
$500,000
70%/80%
70%/70%
60%/80%
$650,000
70%/80%
70%/70%
55%/80%
$1,000,000
55%/70%
50%/70%
$1,500,000
50%/60%
50%/60%
$2,000,000
50%/60%
50%/60%
$500,000
65%/80%
65%/70%
$650,000
60%/80%
65%/70%
$1,000,000
55%/70%
$1,500,000
50%/60%
$2,000,000
50%/60%
70%80%
50%/60%
GMAC-RFC At-A-Glance
Expanded Criteria Loan Program
03/13/06
Page 7 of 8
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Exhibit B-1
Property Type
LTV/CLTV
Maximum Loan
Amount
Purchase Rate/Term
$400,000
90%/90%
A1
Cash-out Refinance
Reserve Requirement: Two months verified PITI liquid reserves remaining after closing, exclusive of closing costs.
Interest Only: This feature not allowed.
Foreign nationals: Not allowed.
1
Second/vacation homes restricted to one unit.
Condominium-Hotel
Full, Lite, One Paystub, Fast, Stated Income and No Ratio Documentation
LTV
Occupancy
Purchase Rate/Term
Full, Lite, One Paystub, Fast
A1, A2, A3
A1 & A2
$500,000
75%
70%
$650,000
70%
65%
$1,000,000
60%
55%
Second/Vacation
$500,000
75%
70%
Second/Vacation
$650,000
65%
60%
Second/Vacation
$1,000,000
55%
Non-owner Occupied
$500,000
70%
65%
Non-owner Occupied
$650,000
60%
55%
Reserve requirement: Reserves must be verified PITI (ITI for Interest Only Loans) liquid reserves remaining after closing, exclusive of closing costs and cash out received:
Full, Lite One Paystub and Fast documentation:
None required for credit grade A1
Two months required for credit grades A2 and A3
Six months required for non-owner occupied property.
Stated Income and No Ratio Documentation:
Six months required for all credit grades
Secondary Financing: Not allowed.
Foreign nationals: Allowed for second/vacation and non-owner occupied. Not allowed for No Ratio Income Documentation. Additional restrictions may apply. See Foreign Nationals
section for additional requirements.
GMAC-RFC At-A-Glance
Expanded Criteria Loan Program
03/13/06
Page 8 of 8
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Exhibit B-1
Primary
Residence,
Owner
Occupied
Property Type
Loan
1,2,3
Amount
Purchase, Rate/Term
A1-720
A2-680
A3-620
LTV
CLTV
LTV
CLTV
LTV
CLTV
$500,000
95%
$500,000
90%
$650,000
95%
$650,000
90%
90%
$1,000,000
80%
90%
80%
90%
80%
90%
$1,500,000
75%
80%
75%
80%
75%
80%
$3,000,000
70%
95%
90%
90%
Cash-Out Refinance
A1-720
A2-680
LTV
CLTV
LTV
CLTV
A3-620
LTV
CLTV
95%
90%
90%
90%
90%
90%
90%
90%
90%
90%
90%
90%
90%
90%
90%
90%
90%
90%
90%
80%
80%
80%
80%
80%
80%
75%
75%
75%
75%
75%
75%
80%
80%
80%
80%
70%
80%
70%
95%
90%
70%
$6,000,000
60%
70%
$650,000
$1,000,000
$1,500,000
90%
80%
75%
90%
90%
80%
70%
90%
80%
75%
90%
90%
80%
90%
80%
75%
90%
90%
80%
70%
55%
70%
80%
80%
75%
80%
80%
75%
80%
Reserve Requirements: Reserves must be verified PITI liquid reserves remaining after closing, exclusive of closing costs and cash out received:
2 months for Loans <= $3 million
9 months for Loans > $3 million
Non-permanent resident aliens: Allowed for primary residence purchase, rate/term transactions with maximum 90% LTV/CLTV, maximum 70% LTV/CLTV for cash-out, up to
$1.5 million Loan amount. See Borrower Eligibility section for details.
Foreign nationals: Not allowed for primary residence property
Secondary Financing: When exists the maximum LTV is 80%
1
2
3
LTV/CLTV allowed at minimum credit grade A2 and 700 Credit Score for Loan amounts to $3 million.
LTV/CLTV allowed at minimum credit grade A3 and 660 Credit Score.
6
Maximum Cash Out:
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Exhibit B-1
Second/
Vacation
Property Type
Loan
1,2
Amount
$500,000
$500,000
$650,000
$1,000,000
$1,500,000
$3,000,000
Purchase, Rate/Term
A1-720
A2 & A3-660
A3-620
LTV
CLTV
LTV
CLTV
LTV
CLTV
95%
95%
90%
90%
90%
90%
90%
90%
90%
90%
90%
90%
80%
90%
80%
80%
80%
80%
80%
80%
75%
75%
75%
75%
75%
75%
3
70%
60%
90%
90%
80%
70%
90%
70%
70%
90%
90%
80%
80%
90%
$650,000 90%4
90%
$6,000,000
$500,000
$650,000
$1,000,000
$1,500,000
$500,000
$650,000
$1,000,000
$1,500,000
Cash-Out Refinance
A1-720
A2 & A3-660
A3-620
LTV
CLTV
LTV
CLTV
LTV
CLTV
90%
90%
80%
75%
3
90%
90%
80%
70%
90%
90%
90%
80%
70%
90%
90%
80%
80%
65%
90%
90%
90%
80%
70%
90%
65%
55%
90%
90%
80%
70%
75%
80%
90%
80%
90%
70%
4
80%
70%
80%
80%
80%
70%
80%
70%
80%
65%
80%
70%
75%
55%
55%
90%
90%
80%
75%
90%
90%
80%
75%
90%
90%
80%
75%
90%
80%
80%
75%
90%
80%
80%
75%
70%
70%
90%
90%
80%
70%
90%
90%
90%
80%
70%
75%
90%
90%
80%
70%
90%
75%
70%
65%
60%
75%
90%
90%
80%
60%
90%
90%
70%
90%
70%
90%
55%
55%
60%
60%
55%
55%
60%
60%
75%
60%
60%
Reserve Requirements: Reserves must be verified PITI liquid reserves remaining after closing, exclusive of closing costs and cash out received:
6 months for Loans <= $3 million
9 months for Loans > $3 million
Non-permanent resident aliens: Not allowed for non-owner occupied property. Allowed for second/vacation homes on purchase, rate/term transactions with maximum 90%
LTV/CLTV; and maximum 70% LTV/CLTV for cash-out, up to $1.5 million Loan amount. See Borrower Eligibility section for details.
Foreign nationals: Allowed with maximum 75% LTV up to $1 million Loan amount. Secondary Financing not allowed. See the Borrower Eligibility guidelines and foreign nationals
section in Chapter 3, Loan Eligibility for details.
Secondary Financing: When exists the maximum LTV is 80%
1
2
Rural Property maximum Loan amount $650,000 (excess acreage not allowed for second/vacation and non-owner occupied homes).
Loans > $2 million require prior approval.
LTV/CLTV allowed at minimum credit grade A2 and 700 Credit Score for Loan amounts to $3 million.
LTV/CLTV allowed at minimum credit grade A2 and 680 Credit Score for Loan amounts to $650,000.
Maximum Cash Out:
Second Vacation:
o LTV >80%, $325,000
o LTV 55.01-80%, $500,000
o LTV <=55%, no maximum
Non-owner occupied:
o LTV > 55%, $325,000
o LTV <=55%, no maximum
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Exhibit B-1
Purchase, Rate/Term
A1-720
A2-680
A3-620
LTV
CLTV
LTV
CLTV
LTV
CLTV
Primary
$500,000
95%
95%
95%
Residence,
$500,000
90%
90%
90%
90%
80%
80%
Owner
Occupied
$650,000
80%
80%
80%
80%
80%
80%
Second/
$500,000
90%
90%
90%
90%
80%
80%
Vacation
$650,000
75%
75%
75%
75%
75%
75%
$500,000
75%
75%
75%
75%
75%
75%
Non-Owner
Occupied
$650,000
65%
65%
65%
65%
65%
65%
Reserve Requirements: Reserves must be verified PITI liquid reserves remaining
after closing, exclusive of closing costs:
2 months for primary residence
6 months for second/vacation homes and non-owner occupied property
Non-permanent resident aliens: Allowed for primary residence second/vacation
homes only. See Borrower Eligibility guidelines for details. Not allowed for non-owner
occupied property.
Foreign nationals: Not allowed for non-warrantable condominiums.
Secondary Financing: When exists the maximum LTV is 80%
Non-Warrantable Condominiums: See Chapter 6C for details.
Occupancy
Loan
Amount
Occupancy
Primary Residence,
Owner Occupied
Second/
Vacation
Non-Owner
Occupied
Loan
Amount
$500,000
$650,000
$500,000
$650,000
$500,000
$650,000
Purchase, Rate/Term
A1-720
A2-680
A3-620
LTV CLTV LTV CLTV
LTV
CLTV
80%
80%
80%
80%
80%
80%
75%
75%
75%
75%
75%
75%
80%
80%
80%
80%
80%
80%
75%
75%
75%
75%
75%
75%
80%
80%
80%
80%
80%
80%
75%
75%
75%
75%
75%
75%
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Exhibit B-1
Property Type
Single-family 1-2 unit (attached/detached)
PUD (attached/detached)
Condominium unlimited stories (Class
I,II,III)
Primary
Residence,
Owner
Occupied
Single-family 3-4 unit (attached/detached)
Maximum
Loan
2,3,6
Amount
$500,000
$500,000
$650,000
$1,000,000
$1,500,000
$3,000,000
$6,000,000
$500,000
$650,000
$1,000,000
$1,500,000
Purchase, Rate/Term
A1-720
A2 & A3-660
A3-620
LTV
CLTV
LTV
CLTV LTV CLTV
1
95%
90%
90%
75%
4,5
75%
70%
60%
90%
90%
75%
70%
Cash-Out Refinance
A1-720
A2 & A3-660
A3-620
LTV
CLTV
LTV
CLTV
LTV CLTV
90%
90%
90%
4,5
75%
95%
90%
90%
75%
70%
90%
90%
90%
70%
90%
75%
90%
75%
70%
70%
90%
90%
90%
70%
90%
80%
75%
70%
4
90%
90%
75%
70%
90%
90%
90%
70%
90%
75%
90%
75%
60%
55%
75%
75%
75%
70%
90%
90%
75%
70%
90%
80%
75%
70%
90%
90%
75%
70%
75%
75%
75%
70%
75%
75%
75%
70%
75%
70%
75%
70%
70%
70%
75%
75%
75%
70%
Reserve Requirements: Reserves must be verified PITI liquid reserves remaining after closing, exclusive of closing costs and cash out received:
For Loans <=$3 million 3 months
For Loans >$3 million, 12 months
Non-permanent resident aliens: Allowed with maximum Loan amount of $1.5 million:
Maximum 90% LTV/CLTV for purchase, rate/term transactions
Maximum 70% LTV/CLTV for cash out transactions
Foreign nationals: Not allowed for primary residence property. See Borrower Eligibility Guidelines for details.
Secondary Financing: When exists the maximum LTV is 80%
1
2
3
4
5
6
7
Out:
LTV >80%, $325,000
LTV 55.01-80%, $500,000
LTV <=55%, no maximum
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Exhibit B-1
Second/
Vacation
NonOwner
Occupied
Property Type
Single-family 1 unit (attached/detached)
PUD (attached/detached)
Condominium unlimited stories (Class I,II,III)
Maximum
Loan
1,2
Amount
$500,000
$650,000
$1,000,000
$1,500,000
$3,000,000
$6,000,000
$500,000
$650,000
$1,000,000
$1,500,000
$500,000
$650,000
$1,000,000
$1,500,000
Purchase, Rate/Term
A1-720
A2 & A3-660
A3-620
LTV
CLTV
LTV
CLTV
LTV
CLTV
Cash-Out Refinance
A1-720
A2 & A3-660
A3-620
LTV CLTV
LTV
CLTV LTV CLTV
90%
80%
75%
70%
90%
75%
75%
70%
90%
80%
75%
70%
90%
80%
75%
70%
90%
80%
75%
70%
65%
60%
70%
70%
80%
80%
75%
70%
75%
75%
75%
70%
80%
80%
75%
70%
75%
75%
75%
70%
75%
65%
80%
80%
80%
80%
75%
70%
75%
75%
75%
70%
80%
80%
75%
70%
75%
75%
75%
70%
90%
75%
75%
70%
90%
75%
75%
70%
90%
75%
75%
70%
75%
75%
75%
70%
75%
70%
45%
75%
75%
75%
70%
75%
70%
65%
75%
75%
60%
55%
70%
70%
75%
75%
75%
70%
75%
70%
45%
75%
75%
75%
70%
75%
70%
65%
Reserve Requirements: Reserves must be verified PITI liquid reserves remaining after closing, exclusive of closing costs and cash out received:
For Loans <=$3 million, 6 months
For Loans >$3 million, 12 months
Non-permanent resident aliens: Allowed with maximum Loan amount of $1.5 million:
Second/Vacation Homes
- Maximum 75% LTV/CLTV for purchase, rate/term transactions
- Maximum 65% LTV/CLTV for cash out transactions
Non-owner occupied property not allowed. See Borrower Eligibility Guidelines for details.
Foreign nationals: Allowed for second/vacation home and non-owner occupied property with maximum 70% LTV on Loan amounts to $1 million. Cash out not allowed for Stated
Income. Secondary Financing not allowed. See Borrower Eligibility Guidelines in Chapter 6C, Payment Option and Foreign Nationals Section in Chapter 3, Loan Eligibility for details.
Secondary Financing: When exists the maximum LTV is 80%
1
2
3
4
Rural Property and excess acreage maximum Loan amount $650,000 (excess acreage not allowed for second/vacation home and non-owner occupied property).
Loans > $2 million require prior approval.
LTV/CLTV allowed at minimum credit grade A2 and 700 Credit Score for Loan amounts to $3 million.
Maximum Cash Out:
Second/vacation:
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Exhibit B-1
Occupancy
Primary Residence, Owner Occupied
Second/ Vacation
Non-Owner Occupied
$500,000
$650,000
$500,000
$650,000
$500,000
$650,000
A1-720
LTV
CLTV
80%
80%
75%
75%
70%
70%
65%
65%
70%
70%
65%
65%
Purchase, Rate/Term
A2-680
LTV
CLTV
80%
80%
75%
75%
70%
70%
65%
65%
70%
70%
65%
65%
Cash-out Refinance
A3-660
LTV
CLTV
80%
80%
75%
75%
70%
70%
65%
65%
Reserve Requirements: Reserves must be verified PITI liquid reserves remaining after closing, exclusive of closing costs and cash out received:
3 months for primary residence
6 months for second/vacation homes and non-owner occupied property
Non-permanent resident aliens: Additional restrictions apply. See Borrower Eligibility Guidelines for details. Not allowed for non-owner occupied property.
Foreign nationals: Not allowed for non-warrantable condominiums.
Stated Income/Stated Asset Income Documentation
Occupancy
Property Type
Second/
Vacation
Loan
2
Amount
$500,000
$500,000
$650,000
$1,000,000
$1,500,000
$500,000
$650,000
$1,000,000
$1,500,000
$500,000
$650,000
Purchase, Rate/Term
A1-720
LTV
A2 & A3-660
Cash-out Refinance
A3-620
A1-720
A2 & A3-660
A3-620
CLTV
LTV
CLTV
LTV
CLTV
LTV
CLTV
LTV
CLTV
LTV
CLTV
95%
90%
80%
75%
65%
80%
80%
75%
65%
90%
90%
80%
75%
70%
80%
80%
75%
70%
90%
90%
80%
75%
70%
80%
80%
75%
70%
90%
90%
75%
90%
75%
90%
70%
70%
90%
70%
70%
90%
70%
70%
90%
70%
70%
75%
75%
80%
75%
80%
75%
75%
70%
70%
75%
70%
70%
75%
70%
70%
75%
70%
70%
70%
80%
75%
80%
90%
80%
75%
65%
80%
80%
75%
65%
90%
75%
1,3
80%
Reserve Requirement: PITI liquid reserves remaining after closing, exclusive of closing costs and cash out received:
3 months for primary residence
6 months for second/vacation homes
Non-permanent resident aliens: Additional restrictions apply. See Borrower Eligibility Guidelines for details.
Foreign nationals: Not allowed with Stated Income/Stated Asset documentation
Secondary Financing: When exists the maximum LTV is 80%
1
Maximum 90% LTV/CLTV for primary residence 2-unit property
2
Rural Property and excess acreage maximum Loan amount $650,000 (excess acreage
not allowed for second/vacation homes).
3
LTV/CLTV allowed at minimum credit grade A2 and 700 Credit Score.
GMAC-RFC At-A-Glance Payment Option Program
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Exhibit B-1
Occupancy
Primary
Residence
Owner Occupied
Property Type
LTV
LTV
Maximum
Cash-in-hand
A1
A2
A3
A4
A1
A2
A3
A4
$250,000
107%
107%
103%
103%
107%
107%
103%
103%
$50,000
$5,000
$300,000
107%
107%
103%
103%
107%
107%
103%
103%
$100,000
$5,000
$400,000
107%
107%
103%
107%
107%
103%
$150,000
$5,000
$500,000
107%
107%
$650,000
107%
$250,000
107%
107%
103%
$300,000
107%
107%
103%
$400,000
107%
107%
$300,000
107%
107%
$400,000
107%
107%
$300,000
107%
107%
$400,000
107%
107%
$300,000
95%
95%
107%
107%
103%
$50,000
$5,000
107%
107%
103%
$100,000
$5,000
107%
107%
$150,000
$5,000
III)
Townhouse/Rowhouse
Non-Owner
Occupied
Rate/Term Refinance
3
Cash-Out Refinance
Purchase
Maximum
Loan
Amount
Reserve requirement: Credit grades A1, A2 and A3 two months PITI liquid reserves remaining after closing, exclusive of closing costs and cash out received. For non-owner occupied property
six months PITI liquid reserves remaining after closing, exclusive of closing costs. Credit grade A4 no reserve requirement.
Residual Income requirement for all credit grades is $1,500.
1
2
3
Rate/term transactions are limited to incidental cash back not to exceed $500. For cash-out transactions, maximum cash out includes total debt payoff and maximum cash out includes total
debt payoff and maximum cash-in-hand to Borrower not to exceed $5,000
GMAC-RFC At-A-Glance
Home Solution Loan Program
10/18/04
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Exhibit B-1
Occupancy
Primary
Residence
Owner Occupied
Property Type
$300,000
Rate/Term Refinance
Cash-Out Refinance
Purchase
Maximum
Loan
Amount
LTV
A1
A2
100%
95%
LTV
A3
A4
A1
A2
A3
A4
III)
Reserve requirement: Two months PITI liquid reserves remaining after closing, exclusive of closing costs.
1
GMAC-RFC At-A-Glance
Home Solution Loan Program
10/18/04
Page 2 of 2
14-01915-mg
Doc 45-3
Exhibit B-1
AlterNet At-A-Glance
This is summary information only. Refer to the Client Guide for complete and definitive underwriting guidelines.
Maximum LTVs for Full, Fast and Lite Income Documentation (Owner Occupied)
Credit Grade
(12 month Housing
History)
A4
0x30 reported
mortgage history
A5
<12 months
reported mortgage
history
0x30 housing
Ax
1x30 (includes
rolling)
Am
Unlimited 30's,
0x60
B
1x60, 0x90 (nonrolling)
C
Unlimited 60's,
1x90 (non-rolling)
Bankruptcy
Foreclosure
Major Adverse Credit
Credit
Score
<=65%
65.01 to
70%
70.01 to
75%
75.01 to
80%
80.01 to
85%
85.01 to
90%
90.01 to
95%
95.01 to
100%
640-700+
620-639
600-619
580-599
540-579
520-539
500-519
620-700+
600-619
580-599
540-579
520-539
500-519
680+
620-679
600-619
580-599
540-579
520-539
500-519
620+
600-619
580-599
560-579
540-559
520-539
500-519
620+
560-619
520-559
500-519
1,000,000
1,000,000
750,000
650,000
500,000
400,000
350,000
1,000,000
750,000
650,000
500,000
400,000
350,000
850,000
750,000
750,000
650,000
500,000
400,000
300,000
650,000
650,000
500,000
500,000
400,000
400,000
300,000
500,000
500,000
400,000
300,000
1,000,000
1,000,000
750,000
650,000
500,000
400,000
350,000
1,000,000
750,000
650,000
500,000
400,000
350,000
850,000
750,000
750,000
650,000
500,000
400,000
300,000
650,000
650,000
500,000
500,000
400,000
400,000
300,000
500,000
500,000
400,000
300,000
1,000,000
1,000,000
750,000
650,000
500,000
400,000
350,000
1,000,000
750,000
650,000
500,000
400,000
350,000
850,000
750,000
750,000
650,000
500,000
400,000
300,000
650,000
650,000
500,000
500,000
400,000
400,000
300,000
500,000
500,000
400,000
300,000
750,000
750,000
750,000
650,000
500,000
400,000
350,000
750,000
750,000
650,000
500,000
400,000
350,000
650,000
650,000
650,000
500,000
500,000
400,000
650,000
650,000
650,000
500,000
500,000
400,000
650,000
650,000
650,000
500,000
400,000
600,000
500,000
500,000
500,000
500,000
500,000
500,000
500,000
400
400
400
400
650,000
650,000
500,000
500,000
400,000
650,000
650,000
500,000
400,000
500,000
500,000
500,000
500,000
500,000
500,000
650,000
650,000
650,000
500,000
500,000
600,000
600,000
500,000
500,000
400,000
500,000
500,000
500,000
500,000
500,000
500,000
500,000
500,000
400
400
400
400
650,000
650,000
500,000
500,000
400,000
600,000
500,000
500,000
500,000
500,000
500,000
500,000
400,000
500,000
500,000
400,000
300,000
520-560+
350,000
300,000
>1 year
>1 year
>2 years
$5,000 may be left open
GMAC-RFC At-A-Glance
AlterNet Loan Program
80/20 Combo
1st/100
1st/100
1st/100
1st/100
1st/100
1st/100
1st/100
1st/100
2nd
2nd
2nd
2nd
2nd
2nd
2nd
2nd
>2 years
>3 years
$1,500 may be left open
04/17/06
Page 1 of 6
14-01915-mg
Doc 45-3
Exhibit B-1
AlterNet At-A-Glance
Housing Payment History for Full, Fast and Lite Income Documentation (Owner Occupied)
<=65%
65.01 to
70.01 to
75.01 to
80.01 to
85.01 to
90.01 to
LTV
70% LTV
75% LTV
80% LTV
85% LTV
90% LTV
95% LTV
Requires Institutional Verification of Rent, Private Verification of Rent, or 12 months canceled
checks
If documentation of housing indicates late or missing payments, the credit grade is downgraded
according to the number and severity of the late/missing payments
95.01 to
80/20 Combo
100% LTV
Credit scores >=600, require
Institutional Verification of
Housing, Private Verification
of Housing, or 12 months
canceled checks
Credit scores <600, require
Institutional Verification of
Housing or 12 months
canceled checks
If documentation of housing
indicates late or missing
payments, the credit grade is
downgraded according to the
number and severity of the
late/missing payments
Not eligible
Maximum CLTV by Credit Score for Full, Lite and Fast Income Documentation (Owner Occupied)
Credit Grade
A4, A5, Ax, Am
B, C
Credit Score
Max CLTV
100%
580+
95%
All Grades
560-579
95%
All Grades
500-559
90%
GMAC-RFC At-A-Glance
AlterNet Loan Program
04/17/06
Page 2 of 6
14-01915-mg
Doc 45-3
Exhibit B-1
AlterNet At-A-Glance
Maximum LTVs for Stated Income Documentation (Owner Occupied)
Credit Grade
(12 month
Housing
History)
A4
0x30 reported
mortgage
history
A5
<12 months
reported
mortgage
history
0x30 housing
Ax
1x30
(includes
rolling)
Am
Unlimited
30's, 0x60
Credit
Score
<=55%
55.01 to
60%
60.01 to
65%
65.01 to
70%
70.01 to
75%
75.01 to
80%
80.01 to
85%
85.01 to
90%
90.01
to 95%
95.01 to
100%
80/20
Combo
640-700+
620-639
600-619
580-599
560-579
540-559
520-539
500-519
640-700+
620-639
600-619
560-599
540-559
520-539
500-519
640-660+
620-639
560-619
540-559
520-539
500-519
620-660+
580-619
560-579
540-559
500-539
560-660+
650,000
650,000
500,000
500,000
500,000
350,000
300,000
250,000
650,000
650,000
500,000
500,000
350,000
300,000
250,000
500,000
500,000
400,000
350,000
300,000
250,000
500,000
400,000
350,000
300,000
250,000
350,000
650,000
650,000
500,000
500,000
500,000
350,000
300,000
250,000
650,000
650,000
500,000
500,000
350,000
300,000
250,000
500,000
500,000
400,000
350,000
300,000
250,000
500,000
400,000
350,000
300,000
250,000
350,000
650,000
650,000
500,000
500,000
500,000
350,000
300,000
250,000
650,000
650,000
500,000
500,000
350,000
300,000
250,000
500,000
500,000
400,000
350,000
300,000
250,000
500,000
400,000
350,000
300,000
250,000
350,000
650,000
650,000
500,000
500,000
500,000
350,000
650,000
650,000
500,000
500,000
500,000
350,000
650,000
650,000
500,000
500,000
500,000
300,000
500,000
500,000
500,000
400,000
400,000
400,000
400,000
400,000
400,000
400,000
400,000
400,000
400,000
400,000
650,000
650,000
500,000
500,000
350,000
650,000
650,000
500,000
500,000
350,000
650,000
650,000
500,000
500,000
300,000
500,000
500,000
500,000
400,000
400,000
400,000
400,000
400,000
400,000
400,000
500,000
500,000
400,000
350,000
500,000
500,000
400,000
350,000
500,000
500,000
400,000
300,000
400,000
400,000
400,000
400,000
400,000
400,000
400,000
500,000
400,000
350,000
500,000
400,000
350,000
500,000
400,000
300,000
400,000
400,000
350,000
300,000
300,000
300,000
300,000
250,000
250,000
250,000
B
1x60, 0x90
(non-rolling)
520-559
C
Unlimited
60's, 1x90
(non-rolling)
520-560+
Bankruptcy
Foreclosure
Major Adverse Credit
>1 year
>1 year
>2 years
$5,000 may be left open
GMAC-RFC At-A-Glance
AlterNet Loan Program
>2 years
>3 years
$1,500 may be left open
04/17/06
Page 3 of 6
14-01915-mg
Doc 45-3
Exhibit B-1
AlterNet At-A-Glance
Maximum LTVs for Stated Income Documentation (Owner Occupied)
55.01 to
60.01 to
65.01 to
70.01 to
75.01 to
80.01 to
85.01 to
90.01 to
60%
65%
70%
75%
80%
85%
90%
95%
Requires Institutional Verification of Rent, Private Verification of Rent, or 12 months canceled checks
If documentation of housing indicates late or missing payments, the credit grade is downgraded
according to the number and severity of the late/missing payments
<=55%
Borrowers without 12
month reported mortgage
history
95.01 to
80/20 Combo
100%
Requires Institutional
Verification of Housing,
Private Verification of
Housing, or 12 months
canceled checks
If documentation of
housing indicates late or
missing payments, the
credit grade is downgraded
according to the number
and severity of the
late/missing payments
Not eligible
Maximum CLTV by Credit Score for Stated Income Documentation (Owner Occupied)
Credit Grade
Credit Score
Maximum CLTV
A4, A5, Ax
600+
100%
Am, B, C
600+
95%
A4
580-599
95%
580-599
90%
All Grades
560-579
85%
All Grades
500-559
80%
GMAC-RFC At-A-Glance
AlterNet Loan Program
04/17/06
Page 4 of 6
14-01915-mg
Doc 45-3
Exhibit B-1
AlterNet At-A-Glance
Maximum LTVs for Full, Fast and Lite Income Documentation (Non-owner Occupied)
Credit Grade (12 month
Housing History)
A4
0x30 reported mortgage
history
A5
<12 months reported
mortgage history
0x30 housing
Ax
1x30 (includes rolling)
Am
Unlimited 30's
0x60
Credit
Score
600-700+
580-599
560-579
540-559
520-539
600-640+
580-599
560-579
540-559
580-660+
560-579
540-559
520-539
620-640+
580-619
560-579
540-559
520-539
560-640+
540-559
560-640+
B
1x60, 0x90 (non-rolling)
C
Unlimited 60's,
1x90 (non-rolling)
540-559
Bankruptcy
Foreclosure
Major Adverse Credit
Minimum Loan Amount
Housing Payment History
Borrower without 12 months mortgage
history
CLTVs
40/30 Balloon, 40 Year Recast
500,000
400,000
350,000
300,000
300,000
500,000
400,000
350,000
300,000
400,000
350,000
300,000
300,000
400,000
350,000
300,000
300,000
300,000
300,000
300,000
300,000
50.01 to
55%
500,000
400,000
350,000
300,000
300,000
500,000
400,000
350,000
300,000
400,000
350,000
300,000
300,000
400,000
350,000
300,000
300,000
300,000
300,000
300,000
300,000
55.01 to
60%
500,000
400,000
350,000
300,000
300,000
500,000
400,000
350,000
300,000
400,000
350,000
300,000
300,000
400,000
350,000
300,000
300,000
300,000
300,000
300,000
300,000
300,000
300,000
300,000
<=50%
60.01 to
65%
500,000
400,000
350,000
300,000
65.01 to
70%
500,000
400,000
350,000
300,000
70.01 to
75%
500,000
400,000
350,000
300,000
75.01 to
80%
500,000
400,000
350,000
300,000
80.01 to
85%
400,000
400,000
350,000
500,000
400,000
350,000
300,000
400,000
350,000
300,000
500,000
400,000
350,000
300,000
400,000
350,000
300,000
500,000
400,000
350,000
300,000
400,000
350,000
300,000
500,000
400,000
350,000
300,000
400,000
350,000
300,000
400,000
400,000
350,000
400,000
350,000
300,000
300,000
400,000
350,000
300,000
400,000
350,000
300,000
400,000
350,000
300,000
400,000
300,000
300,000
300,000
300,000
300,000
400,000
>1 year
>2 years
>2 years
>3 years
$1,500 may be left open
$50,000
Requires Institutional Verification of Rent or 12 months canceled checks
If documentation of housing indicates late or missing payments, the credit grade is downgraded according to the number
and severity of the late/missing payments
Secondary Financing Not eligible
Not eligible
GMAC-RFC At-A-Glance
AlterNet Loan Program
04/17/06
Page 5 of 6
14-01915-mg
Doc 45-3
Exhibit B-1
AlterNet At-A-Glance
Maximum LTVs for Stated Income Documentation (Non-owner Occupied)
Credit Grade (12 month
Housing History)
A4
0x30 reported mortgage
history
A5
<12 months reported
mortgage history
0x30 housing
Ax 1x30 (includes
rolling)
Am Unlimited 30's,
0x60
B 1x60, 0x90
Credit Score
<=50%
50.01-55%
55.01-60%
60.01-65%
65.01-70%
70.01-75%
75.01-80%
580-700+
560-579
520-559
580-640+
560-579
350,000
250,000
250,000
350,000
250,000
350,000
250,000
250,000
350,000
250,000
350,000
250,000
250,000
350,000
250,000
350,000
250,000
350,000
250,000
350,000
250,000
350,000
350,000
250,000
350,000
250,000
350,000
250,000
350,000
540-559
250,000
250,000
250,000
250,000
560-640+
520-559
580-640+
560-579
520-559
560-640+
540-559
250,000
250,000
250,000
250,000
200,000
250,000
200,000
250,000
250,000
250,000
250,000
200,000
250,000
200,000
250,000
250,000
250,000
250,000
200,000
250,000
200,000
250,000
250,000
250,000
250,000
200,000
250,000
200,000
>1 year
250,000
250,000
250,000
250,000
250,000
Bankruptcy
Foreclosure
Major Adverse Credit
Minimum Loan Amount
Housing Payment History
Borrower without 12 months mortgage
history
Rent free/lives with relatives
CLTVs
40/30 Balloon, 40 Year Recast
>2 years
>3 years
$1,500 may be left open
$50,000
Requires Institutional Verification of Rent or 12 months canceled checks
If documentation of housing indicates late or missing payments, the credit grade is downgraded according to the number
and severity of the late/missing payments
Not eligible
Secondary Financing not eligible
Not eligible
GMAC-RFC At-A-Glance
AlterNet Loan Program
04/17/06
Page 6 of 6
14-01915-mg
Doc 45-3
Exhibit B-1
Wage Earner
Full
Lite
Fast
GMAC-RFC At-A-Glance
AlterNet/Credit Gap Income Documentation
Stated
Income must be stated on the
application
Credit grades A4, A5 and Ax only
Minimum 580 Credit Score
Verbal VOE required
Owner occupied, primary residence
or second/vacation home
Signed and dated IRS Forms 4506 or
4506-T authorizing the Client or its
assigns to obtain income information
03/13/06
Page 1 of 4
14-01915-mg
Doc 45-3
Exhibit B-1
Self-Employed
Full
Lite
Fast
Not available
Stated
Income must be stated on the
application
Verification of the existence of the
Borrowers business through
evidence of a business license and
confirmation of a phone directory
listing. If a license is not required for
the business, a signed confirmation
of business is required by Borrowers
accountant or other CPA
Signed and dated IRS Forms 4506 or
4506-T authorizing the Client and/or
its assigns to obtain income
information
Fixed Income
Not available
Rental Income
Not available
Interest and
Dividend
Income
Not available
GMAC-RFC At-A-Glance
AlterNet/Credit Gap Income Documentation
Not available
03/13/06
Page 2 of 4
14-01915-mg
Doc 45-3
Exhibit B-1
Full
Trust Income
Note Income
Inherited and
Guaranteed
Income
Temporary
Disability
Income
Seasonal
Unemployment
Compensation
Award Letter
Personal tax returns with all schedules
for most recent 2 years
Lite
Fast
Stated
Not available
Not available
Not available
Not available
Not available
Award Letter
Personal tax returns with all
Not available
Not available
GMAC-RFC At-A-Glance
AlterNet/Credit Gap Income Documentation
Not available
Not available
03/13/06
Page 3 of 4
14-01915-mg
Doc 45-3
Exhibit B-1
GMAC-RFC At-A-Glance
AlterNet/Credit Gap Income Documentation
03/13/06
Page 4 of 4
14-01915-mg
Doc 45-3
Exhibit B-1
Borrower Eligibility
US Citizen
Borrower without 12 months reported
Permanent resident alien
Non-permanent resident alien
Non-occupant co-borrower
Foreign National
Transaction Types
Purchase Mortgage
Rate/Term Refinance Mortgage
Cash Out Refinance Mortgage
Construction/Permanent Mortgage
Contract for Deed/Land Contract
Lease with option to Purchase
Property Types
Single Family 1 -2 units
(attached or detached)
PUD
GMAC-RFC At-A-Glance
AlterNet Underwriting Criteria
<=65 65.01-70
70.01-75
75.01-80
80.01-85
Owner Occupied
Full, Lite, Fast and Stated
85.01-90
90.01-95
95.01-100
Maximum DTI 50%; DTI up to 55% allowed with 2 months reserves or $1,500 residual income
For the 40 Year Recast and 40/30 Balloon Features, DTI cannot exceed 50%
No Minimum
$1,500
No Minimum
None Required
None required for Full, Lite or Fast
Stated requires 2 months
Full, Lite & Fast - 3 non-derogatory trades with 1 having 24 month history and 1 active within last 6 months
Stated - 5 non-derogatory trades with 1 having 24 month history and 1 active within last 6 months
Maximum of 6% non recurring
Not eligible
Collection accounts, charge-off accounts, judgments, liens, delinquent property taxes, repossessions, garnishments and accounts
currently 90 days or more delinquent are considered Adverse Credit.
Medical accounts will not be required to be paid.
Aggregate totals exceeding the CLTV limits for the loan transaction will be reviewed on a case-by-case basis.
All property, State, and IRS tax liens, regardless of seasoning, are required to be paid whether or not it currently affects title.
No payment plans or subordination allowed.
Federal tax liens older than ten years are not required to be paid unless the title company requires payoff.
All non-medical adverse credit must be paid if it is <24 months seasoned and exceeds cumulative amounts listed below:
o For LTV <=90%, $5,000 may be left open provided it does not affect title
o For LTV >90%, $1,500 may be left open provided it does not affect title
Any current 90-day or more delinquent account must be brought current before or at closing.
Adverse accounts over 24 months old that do not affect title will not be considered in grade determination and are not required to be
paid.
mortgage history
Maximum LTV/CLTV 90%. No cash-out permitted.
Not eligible
Not eligible
Not eligible
Maximum Cash out of $150,000 (cash-in-hand may be the greater of $50,000 or 30% of Loan Amount)
For credit grade C, no cash-in-hand allowed unless derogatory and revolving debt is paid off.
No cash-out permitted for non-permanent resident aliens.
Not eligible
Not eligible
Not eligible
Second/vacation limited to 1 unit only
04/17/06
Page 1 of 4
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Exhibit B-1
<=65 65.01-70
70.01-75
75.01-80
80.01-85
Owner Occupied
Full, Lite, Fast and Stated
85.01-90
90.01-95
95.01-100
Not eligible
Not eligible
Not eligible
Secondary Financing
10%-20% LTV allowed on
simultaneous 2nd Lien
Stated Income Requirements
Wage Earners
Self-Employed
Rental Income
Interest Only
Transaction Types
Credit Grades
Term
DTI
Minimum of 580 Credit Score; Grades A4, A5, Ax only (1x30 housing history or better)
GMAC-RFC At-A-Glance
AlterNet Underwriting Criteria
04/17/06
Page 2 of 4
14-01915-mg
Doc 45-3
Exhibit B-1
Borrower Eligibility
US Citizen
Borrower without 12 months reported
Permanent resident alien
Non-permanent resident alien
Non-occupant co-borrower
Foreign National
Transaction Types
Purchase Mortgage
Rate/Term Refinance Mortgage
Cash Out Refinance Mortgage
Construction/Permanent Mortgage
Contract for Deed/Land Contract
Lease with option to Purchase
Property Types
Single Family 1 -2 units
(attached or detached)
PUD
Modularized, Panelized, Pre-cut Home
Single Family 3-4 units
Condominium unlimited stories
Rural property
Mixed Use properties
GMAC-RFC At-A-Glance
AlterNet Underwriting Criteria
<=50
50.01-60
60.01-65
65.01-70
70.01-75
75.01-80
80.01-85
Maximum of 50%; up to 55% allowed with 2 months reserves or $1,500 residual income
Minimum $1,500
None required for Full, Lite or Fast
Stated requires 2 months
Full, Lite & Fast - 3 non-derogatory trades with 1 having 24 month history and 1 active within last 6 months
Stated - 5 non-derogatory trades with 1 having 24 month history and 1 active within last 6 months
Maximum of 3% non-recurring
Not eligible
Collection accounts, charge-off accounts, judgments, liens, delinquent property taxes, repossessions, garnishments and accounts
currently 90 days or more delinquent are considered Adverse Credit.
Medical accounts will not be required to be paid.
Aggregate totals exceeding the CLTV limits for the loan transaction will be reviewed on a case-by-case basis.
All property, State, and IRS tax liens, regardless of seasoning, are required to be paid whether or not it currently affects title.
No payment plans or subordination allowed.
Federal tax liens older than ten years are not required to be paid unless the title company requires payoff.
All non-medical adverse credit must be paid if it is <24 months seasoned and exceeds $1,500(provided it does not affect title).
Any current 90-day or more delinquent account must be brought current before or at closing.
Adverse accounts over 24 months old that do not affect title will not be considered in grade determination and are not required to be
paid
mortgage history
Not eligible
Not eligible
Not eligible
Maximum Cash out of $150,000 (cash-in-hand may be greater of $50,000 or 30% of loan amount)
For credit grade C, no cash-in-hand allowed unless derogatory and revolving debt is paid off
Not eligible
Not eligible
Not eligible
Second/vacation limited to 1 unit only.
Not eligible
04/17/06
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Exhibit B-1
<=50
50.01-60
60.01-65
65.01-70
70.01-75
75.01-80
80.01-85
Not eligible
Not eligible
40/30 Balloon, 40 Year Recast
Not eligible
GMAC-RFC At-A-Glance
AlterNet Underwriting Criteria
04/17/06
Page 4 of 4
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Exhibit B-1
Occupancy
Primary Residence
Owner Occupied
Second/Vacation
Owner Occupied
Maximum Loan
Amount
Property Type
1,2
1,2
Purchase, Rate/Term
Cash-Out Refinance
LTV
LTV
A1 (720)
A2 (680)
A3 (660)
A1 (720)
$400,000
95%
95%
90%
85%
85%
$500,000
90%
90%
80%
85%
80%
$650,000
80%
80%
80%
80%
80%
70%
75%
70%
75%
70%
$750,000
75%
75%
A2 (700)
$1,000,000
75%
75%
$300,000
90%
90%
85%
70%
70%
$400,000
90%
90%
70%
70%
70%
$650,000
80%
80%
70%
70%
70%
$1,000,000
65%
65%
55%
55%
55%
Reserve requirement: Two months ITI liquid reserves remaining after closing, exclusive of closing costs and cash out received.
1
Condominium units located within a building > 8 stories must meet Class III Warranties and be located in areas with proven marketability.
Credit Grade
Credit Score
A1
720+
A2
680-719
A3
660+
Bankruptcy/Foreclosure
0x30 mortgage/rental Delinquency in Full, Lite, One Paystub and Fast: None in past
4 years
past 12 months; and no 60 plus
None reported in past 24 months
Stated Income: None in past 7 years
mortgage/rental Delinquency in past 24
months
None in past 7 years
GMAC-RFC At-A-Glance
1st Lien LOC Program
07/22/05
Page 1 of 2
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Exhibit B-1
Property Type
Primary Residence
Owner Occupied
Second/Vacation
Owner Occupied
Purchase, Rate/Term
Cash-Out Refinance
LTV
LTV
Maximum Loan
Amount
A1 (720)
A2 (680)
A3 (660)
A1 (720)
A2 (700)
$400,000
80%
80%
75%
75%
75%
$500,000
80%
75%
70%
75%
70%
$650,000
80%
75%
70%
75%
65%
$750,000
70%
70%
70%
60%
$1,000,000
70%
65%
70%
60%
$300,000
75%
70%
70%
70%
$400,000
75%
65%
70%
70%
$500,000
70%
65%
65%
65%
$650,000
65%
65%
65%
65%
$1,000,000
60%
60%
1,2
1,2
Reserve requirement: Six months ITI liquid reserves remaining after closing, exclusive of closing costs and cash out received unless the Borrower has at least $50,000
equity investment in the subject property.
1
Condominium units located within a building > eight stories must meet Class III Warranties and be located in areas with proven marketability.
Term
25 year term:
Borrowers qualify by using the interest
33/38% no compensating factors
10 year interest only draw followed by a only payment. Fully indexed + 200 bps + 33/42% with compensating factors
GMAC-RFC At-A-Glance
1st Lien LOC Program
Qualifying Payment
Qualifying Ratio
taxes + insurance.
07/22/05
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Exhibit B-1
A1 720+
A2 680-719
Full, Lite, One
Paystub and Fast
A3 660-679
Primary Residence
1-4 unit (attached
or detached)
PUD
Condominium
unlimited stories
A3 640-659
A3 620-6394
Stated
Income
& No Ratio1
SISA, NINA & No
Doc4
A1, A2 680+
A3 660-679
$300,000
555/45
80
80
555/45
552/50
70
100
70
100
$1,000,000
555/50
100
100
$300,000
555/45
506
45
45
506
45
45
506
45
80
100
90
80
100
90
80
100
80
80
100
90
80
100
90
80
100
80
$500,000
55 /45
100
100
$150,000
555/45
45
45
90
100
80
90
90
70
$200,000
$500,000
$100,000
$200,000
$250,000
$300,000 AVM, Drive By, HUD-1 or Full
$100,000
$200,000
$300,000
$100,000
$150,000
80
$150,000
Full Appraisal
N/A
N/A
$100,000
Full Appraisal
$100,000
Full Appraisal
555/45
555/45
555/45
45
45
45
45
100
90
80
100
80
95
80
100
90
80
100
80
95
80
$150,000
$200,000
$250,000
$100,000
$150,000
AVM, Drive By, HUD-1 or Full
$100,000
$150,000
A3 660-679
A3 620-659
555/45
555/45
45
45
95
90
95
80
95
90
N/A
N/A
$100,000
$150,000
$100,000
$100,000
Full Appraisal
A1-A3 660+
A3 620-659
555/45
45
80
80
N/A
N/A
$100,000
$100,000
Full Appraisal
Full Appraisal
555/45
100
100
$125,000
555/45
90
90
$150,000
555/45
80
80
$200,000
555/45
45
45
45
70
95
80
90
70
80
80
80
$100,000
$150,000
$100,000
555/45
45
95
75
80
70
N/A
N/A
N/A
N/A
A3 660-679
A1, A2 680+
A3 620-659
A1-A3 660+
A3 620-659
A1-A3 660+
A3 620-659
555/45
45
Page 1 of 2
$100,000
$100,000
$100,000
$100,000
Full
Full
Full
Full
$150,000
$200,000
90
A3 620-659
Footnotes
95
80
A3 660-679
$100,000
100
45
Stated Income
& No Ratio1
100
100
555/45
45
A1, A2 680+
Non-Owner
Occupied4
1-4 unit (attached
or detached)
PUD
Condominium
unlimited stories
100
555/50
A1-A3 660+
A3 620-659
Stated
Income &
No Ratio1
55 /50
Appraisal Requirement
A3 620-6594
A1, A2 680+
Second/Vacation
Home4
1 unit (attached or
detached)
PUD
Condominium
unlimited stories
Max Loan
Amount
Appraisal
Appraisal
Appraisal
Appraisal
04/17/06
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Doc 45-3
Exhibit B-1
A1
A2
A3
720+
680-719
620-679
All Loan documents (Notes, Security Instruments, Truth-in-lending disclosures, and HUD-1A
settlement statements, Home Equity Line of Credit Notes) must comply with federal, State, and local
laws and must be otherwise acceptable to GMAC-RFC.
GMAC-RFC will accept State specific Home Equity Notes and Home Equity Line of Credit Notes from:
Middleberg, Riddle and Gianna (MRG), www.mrgdocs.com
The Compliance Source, Inc. (CS) www.compliancesource.com
Bankers Systems, Inc. (BSI), www.bankerssystems.com
For more information on legal document options, refer to Home Equity Legal Doc Options (GMAC-RFC
Exhibit 1915).
Occupancy
Primary residence,
Owner Occupied
Doc Type
Credit
Grade
Maximum
Loan/Line
Amount
CLTV
DTI
A1, A2
(680+)
$30,000
100%
45%
Conventional Loan
Program maximums
VA or FHA Loan
Program maximums
Program maximums
Interest Only
Program maximums
Yield and margin information as stated on current rate sheet. Not available in following states: KS,
NY, TX, VA, WV
2
GMAC-RFC must purchase both the first and second mortgage.
Term Options
Goal Loan
5 year
10 year
15 year
30/15 balloon
25 year term, 5 year Interest Only/20
year repay
15
25
15
20
25
30
year
year
year
year
year
year
(5 draw/10 repay)
(15 draw/10 repay)
I/O balloon
(10 I/O draw/10 repay)
(10 I/O draw/15 repay)
(10 I/O draw/20 repay)
Qualifying Goal Line Payment: Interest Only (prime plus margin) based on full line amount.
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Exhibit B-1
Credit Score
700+
680-699
660-679
640-659
$75,000
$60,000
$50,000
$35,000
$20,000
Maximum Loan amount $50,000, maximum cash out $10,000, maximum DTI 45%,
minimum Residual Income $2,000 for grades 1 and 2, $2,500 for grade 3.
Foreclosure History3
(Deed in Lieu)
7 years discharged
<$50,000 45%DTI
Property / Occupancy
None
None
Waged 2 years
3 years self-employed
CLTV Ratio
Property Valuation4
None
7 years
<$50,000 45%DTI
Employment
Debt Ratios3
NA
$10,000
3 Year
No adverse credit reported within the last 24 months
GMAC-RFC At-A-Glance
125 Loan Program
11/21/05
Page 1 of 2
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Exhibit B-1
Rates
See Current Rate Sheet. Rates subject to change
without notice
Terms
5, 10, 15, 20 and 25 year available
Equity
None required
Lien Position
First or second lien
Legal/Compliance
Standard second lien documents
All applicable Federal and State disclosures
Prepayment penalties allowed
Funds Disbursement
Checks for debt consolidation or asset purchase must
be made payable directly to the creditor/vendor or
jointly to both the Borrower and the creditor/vendor
Home Improvement (Refer to Guide)
Income Ratio
Rental Income
Signed Rental/Lease Agreement based on 75% of
actual rents, or
Two years of form 1040 Schedule E required, with IRS
4506 or 4506-T signed by all taxpayers
Minimum three months PITI cash reserves required for
each property up to five properties
GMAC-RFC At-A-Glance
125 Loan Program
11/21/05
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GMAC-RFC
Exhibit B-1
Page 8.1
03/13/06
Client Guide
Servicing Released
8
Servicing Released
800
Servicing Released
GMAC-RFCs Servicing Released program provides an outlet for the purchase of servicing
investment-quality Loans that meet GMAC-RFCs program requirements. Servicing Rights
can be sold to GMAC-RFC on a Loan-by-Loan basis either when the Loan is purchased
(Simultaneous Sale of Servicing) or any time after purchase (Post Purchase Sale of
Servicing).
In addition, Servicing Rights can be sold to GMAC-RFC on a negotiated bulk basis as outlined
in the Bulk Servicing Acquisitions Section of this Client Guide.
For information on Home Equity Servicing Transfers, see Chapter 6G, 1st Lien Line of Credit
and Chapter 6H, Home Equity Programs.
801
Program Overview
For all Simultaneous Sales of Servicing, GMAC-RFC will review and purchase the Servicing
Package simultaneously with the Loan package. The Sale Date, therefore, will be the
Loans Funding Date.
Under the Simultaneous Sale of Servicing option, GMAC-RFC will purchase servicing released
Loans on a projected Schedule of Principal Balance. The Effective Date of Transfer will be
the first day of the second month following the Sale Date. The Client will collect any
payment(s) due from the Borrower the first month following the Sale Date. Beginning with
the second month, the Designated Servicer will collect all payments due from the
Borrower. It is the Clients responsibility to continue servicing a Loan and collecting any
payment(s) due up to the Effective Date of Transfer.
In addition, GMAC-RFC offers an Early Scheduled Transfer option. Under this option,
GMAC-RFC will purchase servicing released Loans on a Scheduled Principal Balance. The
Effective Date of Transfer will be the first of the month following the Sale Date. The individual
Product Descriptions requirements will determine the availability of the Early Purchase of
Servicing option. Please see Chapter 6, Loan Programs, for specific requirements.
For all Post Purchase Sales of Servicing, GMAC-RFC will transfer servicing on a Scheduled
Principal Balance. All payments due from the Borrower beginning with the first day of the
month following the Sale Date are to be paid to the Designated Servicer.
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Exhibit B-1
8 GMAC-RFC
Page 8.2
03/13/06
Client Guide
Servicing Released
802
Designated Servicer
GMAC-RFC will designate a Servicer to conduct its servicing released program. The
Designated Servicer is determined by the Loan Program under which the Loan is
submitted. The Designated Servicer Directory (GMAC-RFC Exhibit 1800, Exhibit 1801 or
Exhibit 1805) lists the Designated Servicer information, including address, telephone and
endorsement information.
GMAC-RFC retains the right to designate such Servicer and may change any Servicer at any
time. GMAC-RFC will, however, provide notice of the change to the Client.
803
Contractual Obligations
This Servicing Released Chapter outlines the terms by which the Client may sell Servicing
Rights to GMAC-RFC. When participating in this program, a Client is required to comply with
all provisions of this Client Guide, including, but not limited to, Chapter 2A,
Representations, Warranties and Covenants, and the Remedies Sections of this Client Guide.
The Client enters into a Client contract and is required to have the ability to service Loans in
accordance with this Client Guide.
804
Program Eligibility
In addition to meeting all of the eligibility requirements of a GMAC-RFC Approved Client, this
programs participants must comply with additional representations, warranties,
requirements and procedures as specified in this Servicing Released Chapter.
805
Disqualification Suspension or Inactivation
(A) General
In addition to the grounds for disqualification, suspension or inactivation as described in this
Client Guide, a Client will be disqualified, suspended or inactivated for any additional reason
listed below. GMAC-RFC will determine the length of any disqualification, suspension or
inactivation, which will be indefinite, and will prescribe the terms and conditions for
reinstatement.
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Exhibit B-1
GMAC-RFC
Page 8.3
03/13/06
Client Guide
Servicing Released
806
Restrictions on Loan Eligibility
GMAC-RFC may purchase Servicing Packages for Loans not conforming to these guidelines
on a negotiated basis. Contact a GMAC-RFC regional marketing office for further information.
Effective with Sale Date, GMAC-RFC will not purchase servicing if the servicing does not
conform to Program guidelines or if any of the following conditions exist:
The Loan is in the process of a payoff (i.e., the Servicer has not issued a payoff
statement to the Borrower)
The Loan is in the process of an assumption
The Loan is subject to any lien, security interest or other encumbrance
The Loan is in bankruptcy (i.e., the Borrower is not the debtor in a pending
bankruptcy)
30 or more days delinquent
Servicing for ARM Loans if payment change occurs within 90 days of the Sale Date
807
Record Maintenance
The Client must maintain complete records of all Loans that GMAC-RFC has purchased for
servicing. These records must be kept in compliance with applicable laws and regulations.
These records must include all documentation relating to the origination, sale and servicing
of the Loan, which occurred up to the Effective Date of Transfer.
808
Final Documents
The Client must forward all Final Documents to GMAC-RFC on Loans sold servicing
released. Those documents pertaining to an individual Loan must comply with the
Submission of Final Documents Section of Chapter 9E.
809
Disclosure of Information; Cooperation
The Client agrees to provide any information to GMAC-RFC or the Designated Servicer, as
requested, which may be deemed necessary to service the Loan properly. The Client also
agrees to cooperate to accomplish the sale and transfer of servicing outlined by this Servicing
Released Chapter.
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Exhibit B-1
8 GMAC-RFC
Page 8.4
03/13/06
Client Guide
Servicing Released
810
Client Representations and Warranties; Events of Servicer Default Prior to Transfer
GMAC-RFC relies upon the accuracy and truth of the Clients warranties and representations
and upon its compliance with the agreements, requirements, terms and conditions set forth
in this Client Guide.
The Client remains responsible to GMAC-RFC, with respect to any Loan, for any and all
events of Servicer default that occurred up to and including the Effective Date of
Transfer.
The Client cannot pledge any of its rights to service Loans sold to GMAC-RFC, pursuant to the
Sale or Transfer of Servicing Section, and GMAC-RFC may require a search of the appropriate
Uniform Commercial Code records. This search will be at the Clients expense in connection
with sale of servicing transactions. If liens on such Servicing Rights are on record, they
must be released.
811
Specific Warranties and Covenants
In addition to the covenants, representations and warranties specified in the Client contract
and this Client Guide, the Client ensures the following:
The covenants, representations and warranties listed below are made as of each Sale Date
and Effective Date of Transfer, unless the specific representation or warranty states
differently. Making them does not release the Client from its obligations with respect to the
representations, warranties and covenants listed in other Sections of this Client Guide.
(A) Eligible Servicing Packages
The Client ensures that each of the Servicing Packages delivered and sold to GMAC-RFC
meets the terms and criteria set forth in this Servicing Released Chapter.
(B) Non-Solicitation
With respect to any Loan, the Servicing Rights of which are sold to GMAC-RFC, Client
ensures the Client has not solicited, sold the customer list, or provided information to
another party for the purpose of solicitation. The Client also agrees not to solicit, sell the
customer list or provide information to another party for the purpose of soliciting any
financial services or products including the refinance of any servicing released Loan or
modification of Loans, second mortgages, equity Loans or insurance products. Solicit is
defined as a direct offer or request for refinance or financial service products on such
servicing released Loan. This definition does not include general solicitations, advertisements
or promotions directed to the general public at large.
(C) Documents
The Client ensures that all documents required under this Servicing Released Chapter have
been completed, executed and delivered in the form and manner specified. In addition, the
Client must submit all required documents, materials and other information to GMAC-RFC in
a complete, accurate and timely fashion.
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Exhibit B-1
GMAC-RFC
Page 8.5
03/13/06
Client Guide
Servicing Released
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Exhibit B-1
8 GMAC-RFC
Page 8.6
03/13/06
Client Guide
Servicing Released
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GMAC-RFC
Exhibit B-1
Page 8.7
03/13/06
Client Guide
Servicing Released
(O) Compliance with Local, State and Federal Statutes and Regulations
With respect to any Servicing Rights submitted for purchase under this program, the Client
must comply with all local, State and federal statutes and regulations governing the transfer
of servicing. This includes, but is not limited to, compliance with such statutes and
regulations governing the notification to the Borrower of the change in Servicer.
(P) Compliance with Servicing Warranties
The Client agrees that each Loan sold to GMAC-RFC on a servicing released basis has been
serviced in accordance with the GMAC-RFC Client contract and the Servicer Guide.
(Q) Scheduled Remittances and Reporting
The Client agrees that all remittances and reporting to GMAC-RFC have been completed as
scheduled. For Post Purchase Sales of Servicing, this includes remittances and reports that
the Client is responsible for in conjunction with the accounting cutoff as of the last day of the
month prior to the Sale Date. The Designated Servicer will perform any and all
remittances and reporting for the accounting cutoff as of the last day of the month in which
the Sale Date occurred.
(R) IRS Reporting
The Client agrees to comply with IRS reporting requirements for points and interest paid by
the Borrower, interest on escrow(s) paid by Client, tax disbursements and special
assessments as of the Effective Date of the Servicing Transfer.
(S) Other Actions
The Client agrees that all other actions required by this Servicing Released Chapter have
been taken.
(T) Compliance with MERS Rules and Regulations
With respect to any Servicing Rights submitted for purchase under this Client Guide in
which the Loan has been registered with MERS or the Security Instrument has been
recorded or assigned to MERS, the Client must comply with all rules and regulations of MERS
governing the transfer of servicing including among other things, confirming to GMAC-RFC
the registration with or assignment to MERS.
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Exhibit B-1
8 GMAC-RFC
Page 8.8
03/13/06
Client Guide
Servicing Released
812
Notification of Change in Servicer
When servicing is purchased by GMAC-RFC, it is the Clients responsibility to prepare and
deliver notification of the change of Servicer to the parties outlined below or to MERS if
Client is a member of MERS. The Client must also notify any third-party sub-servicers of the
change of Servicer. The timely and prompt release of servicing is the responsibility of the
Client.
All notifications must be in compliance with all local, State and federal statutes and
regulations governing the transfer of servicing.
The Client must use the information in the Designated Servicer Directory (GMAC-RFC
Exhibit 1800, Exhibit 1801 or Exhibit 1805) when preparing the notifications.
Notifications must be prepared on the Clients letterhead and mailed by the Client within the
timeframes required by laws governing the transfer of servicing.
(A) Borrower Notification by Client
The Client must prepare and deliver a good-bye letter to the Borrower. The Client must
ensure that the letter complies with all applicable local, State and federal statutes and
regulations governing the transfer of servicing.
(B) Borrower Notification by Designated Servicer and Coupon Books
The Designated Servicer will forward a welcome letter and a monthly account statement or
coupon book to the Borrower.
(C) Insurance Carrier Notification
The Client must prepare and deliver notifications to any insurance carriers, including but not
limited to hazard, mortgage, flood, earthquake, condominium and PUD. The notification must
also request endorsements, if applicable, in accordance with the Designated Servicer
Directory (GMAC-RFC Exhibit 1800, Exhibit 1801 or Exhibit 1805).
(D) Credit Life/Disability Insurance
Monthly escrow for the credit life and/or disability insurance coverage must be canceled as of
the Effective Transfer Date. The Client must notify the Borrower that the premiums with
respect to any such policies will no longer be collected with the monthly payment and that
the Borrower will be required to pay the premiums directly.
(E) Tax Service Notification
For Post Purchase Sales of Servicing, if the Client has a transferable tax contract in place with
an acceptable company, the Client must prepare and deliver a transfer notification to this
company.
(F) Flood Zone Determination Notification
For Post Purchase Sales of Servicing, if the Client has a life-of-loan transferable flood zone
determination contract in place with an acceptable company, as described in the Servicing
Released Approved Flood Zone Determination Company (GMAC-RFC Form 1802), the Client
must prepare and deliver to the company a transfer notification.
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Exhibit B-1
GMAC-RFC
Page 8.9
03/13/06
Client Guide
Servicing Released
813
Escrow Account for Postponed Improvements/Repairs
If an escrow account for postponed improvements/repairs has been established at Loan
closing, the Client must monitor the account until the repairs or improvements are done. For
GMAC-RFCs policy on this matter, see the Escrow for Postponed Improvements Section
in Chapter 3C, Financing, of this Client Guide.
The Client must send a final certification to GMAC-RFC, verifying that the repairs or
improvements have been completed. In addition, the Client must advise the Borrower to
contact the Client, not the Designated Servicer, on any matter related to escrows for
postponed improvements/repairs.
814
Interest on Escrows
For Loans with an escrow account where the Client must pay interest to the Borrower, the
Client must calculate the interest in compliance with State requirements through the
Effective Date of Transfer.
815
Termination of Automatic Payment
As of the Effective Date of Servicing Transfer, the Client must terminate any automatic
payment arrangements established to make the Borrowers payment(s).
816
Purchase of Servicing
The following Sections describe the procedure for delivery of the Servicing Package and
required Servicing Documents, purchase of the servicing and the reconciliation of monies
between the Client and GMAC-RFC.
817
Servicing Released Submission of Purchase
Prior to submitting a Servicing Package to GMAC-RFC for purchase, the Client must
complete all documents accurately and send them to:
GMAC-RFC
One Meridian Crossings
Suite 100
Minneapolis, MN 55423
Attention: Loan Processing & Delivery
MC-03-SDG-MR
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Doc 45-3
Exhibit B-1
8 GMAC-RFC
Page 8.10
03/13/06
Client Guide
Servicing Released
818
Required Servicing Documents
(A) Servicing Package
For funding, Servicing Packages must include the following documents:
Current hazard insurance policy or binder
Flood certification
Flood insurance policy or binder, if applicable
Life-of-Loan flood zone determination contract (unless GMAC-RFC sets up the
contract).
HUD-1
Initial Escrow Account Disclosure Statement, if applicable
Tax information sheet, if applicable
Mortgage insurance certificate, if applicable
Temporary Buydown agreement, if applicable
Notice of ARM adjustments, if applicable
(B) Credit Documents
The Client must forward the original Credit Documents to GMAC-RFC as part of the Loan
Delivery package. The Client must maintain a copy of its Credit Documents.
See Chapter 9, Commitment, Prior Approval, Delivery and Funding, for specific required
documents.
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GMAC-RFC
Exhibit B-1
Page 8.11
03/13/06
Client Guide
Servicing Released
819
Sale Date and Effective Date of Transfer
(A) Sale of ServicingScheduled Transfer
GMAC-RFC will purchase servicing on a projected Scheduled Principal Balance. Any
payment(s) due from the Borrower the first month following the Sale Date are due to the
Client. All payments due from the Borrower beginning with the second month following the
Sale Date (Effective Date of Transfer) are due to the Designated Servicer within five
Business Days of servicing transfer.
(B) Sale of ServicingEarly Scheduled Transfer
GMAC-RFC will purchase servicing on a Scheduled Principal Balance. All payments due from
the Borrower beginning with the first day of the month following the Sale Date (Effective
Date of Transfer) are due to the Designated Servicer within five Business Days of servicing
transfer.
(C) Sale of ServicingActual Balance Transfer
GMAC-RFC will purchase servicing on an actual principal balance. The Effective Date of
Transfer will be 15 days after the Sale Date or such longer time as GMAC-RFC Determines in
its sole discretion. All payments due from the Borrower as of the Sale Date are due to the
Designated Servicer. Any payment(s) received from the Borrower between the Sale Date and
the Effective Date of Transfer are due to the Designated Servicer within five Business
Days of servicing transfer.
(D) Other Servicing Transfers
Timing of transfer and other terms are at GMAC-RFCs sole discretion.
(E) Remove Loan from GMAC-RFC Portfolio
The Client must remove the Loan from the portfolio it services for GMAC-RFC prior to the
Effective Date of Transfer, to ensure that the Client does not report any future payments to
GMAC-RFC.
(F) Transfer of Servicing ResponsibilityScheduled and Early Scheduled
The Client must continue servicing the Loan and must collect any scheduled payment(s) due
from the Borrower up to the Effective Date of Transfer. If the Client does not receive any such
scheduled payment(s) when due, the Client must immediately notify the Designated
Servicer. See the Designated Servicer Directory (GMAC-RFC Exhibit 1800, Exhibit 1801
or Exhibit 1805).
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Exhibit B-1
8 GMAC-RFC
Page 8.12
03/13/06
Client Guide
Servicing Released
820
Reconciliation by GMAC-RFC
Upon approval of a servicing purchase, GMAC-RFC will reconcile the financial information on
the Loan (including the interest paid-to-date, principal balance, escrow balance and
Temporary Buydown balance) to ensure it is current and correct as of the Sale Date.
(A) Sale of ServicingScheduled Transfer
The servicing will be transferred to the Designated Servicer at the projected scheduled
interest paid-to-date and the Scheduled Principal Balance as of the second month
following the Sale Date.
GMAC-RFC will subtract from the Funding Amount:
(1) Escrow balance as stated on HUD-1/Settlement Statement or Loan history PLUS any
scheduled escrow payments due the Client from the Borrower prior to the Effective
Date of Transfer MINUS any funds withheld for the Client to pay taxes or insurance
(2) Temporary Buydown balance as stated on HUD-1/Settlement Statement or Loan
history minus any scheduled payments to draw from the Temporary Buydown
account prior to the Effective Date of Transfer
(3) Tax service contract fee
(4) Flood zone determination contract fee (if life-of-loan flood zone determination
contract not provided)
(B) Sale of ServicingEarly Scheduled Transfer
The servicing will be transferred to the Designated Servicer at the scheduled interest paidto-date and the Scheduled Principal Balance as of the first month following the Sale
Date.
GMAC-RFC will subtract from the Funding Amount:
(1) Escrow balance as stated on HUD-1/Settlement Statement or Loan history PLUS any
scheduled escrow payments due the Client from the Borrower prior to the Effective
Date of Transfer MINUS any funds withheld for the Client to pay taxes or insurance
(2) Temporary Buydown balance as stated on HUD-1/Settlement Statement or Loan
history minus any scheduled payments to draw from the Temporary Buydown
account prior to the Effective Date of Transfer
(3) Tax service contract fee
(4) Flood zone determination contract fee (if life-of-loan flood zone determination
contract is not provided)
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Exhibit B-1
GMAC-RFC
Page 8.13
03/13/06
Client Guide
Servicing Released
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Doc 45-3
Exhibit B-1
8 GMAC-RFC
Page 8.14
03/13/06
Client Guide
Servicing Released
821
Notification of Purchase
(A) Simultaneous Sale of Servicing
If the purchase of servicing is approved, GMAC-RFC will send the Client a Purchase Advice
Exhibit (GMAC-RFC Exhibit 1803). This exhibit will outline the cash transactions relating to
the purchase of the Loan and servicing.
(B) Post Purchase Sale of Servicing
If the purchase of the servicing is approved, GMAC-RFC will send the Client a Statement of
Servicing Sold First Mortgage (GMAC-RFC Exhibit 1804) on the first Business Day of the
month after the Sale Date.
822
Monies Paid for Servicing Released
(A) Simultaneous Sale of Servicing
On the Sale Date, GMAC-RFC will wire transfer all funds due the Client to its designated
depository institution. These funds will be plus or minus Loan feature adjustments as well as
adjustments resulting from the reconciliation process described above.
(B) Post Purchase Sale of Servicing
All funds due the Client (plus or minus adjustments) will be sent via Automated Clearing
House (ACH) on the first Business Day of the month following the Sale Date. These funds
will be sent to the Clients designated depository institution. If the designated institution
cannot accept ACH transactions, GMAC-RFC will send a check.
The one time Servicing Released Premium (SRP) paid for Post Purchase Sales of
Servicing is based on the Scheduled Principal Balance as of the month preceding the
Effective Date of Transfer multiplied by the applicable Servicing Released Premium
percentage.
If the Client owes GMAC-RFC any amount for reconciliation adjustments, the Client must
remit that amount within five Business Days. If the remittance is not received, GMAC-RFC
will subtract the funds against future Servicing Released Premiums paid to the Client.
(C) Lender Paid Mortgage Insurance
GMAC-RFC will purchase servicing with lender paid mortgage insurance. If the annual
renewal plan is selected, the Client must increase the amount of Servicing Fee over the
minimum servicing required by GMAC-RFC. GMAC-RFC will not pay the portion of the
Servicing Fee associated with this renewal premium. For more information, consult the
Lender Paid Mortgage Insurance Section in Chapter 3F, Insurance and Survey
Requirements.
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Doc 45-3
GMAC-RFC
Exhibit B-1
Page 8.15
03/13/06
Client Guide
Servicing Released
823
Monies Due Client
(A) Principal and Interest
The Client may receive any scheduled principal and/or interest due from the Borrower prior
to the Effective Date of Transfer. The Client must attempt to collect all such payment(s)
from the Borrower up to the Effective Date of Servicing Transfer.
If the Client did not receive the scheduled principal and interest due from the Borrower, the
Client must first attempt to collect the funds from the Borrower. If the Borrower sent
payment to the Designated Servicer, the Client must send a request for reimbursement to
the Designated Servicer. Include supporting documentation such as Loan history, collection
history or cancelled checks.
The Designated Servicers and/or GMAC-RFC may deny the Clients request for
reimbursement if it is received six months after the Effective Date of Servicing Transfer. The
Client waives any right to payment for any demand made after that date.
(B) Principal Curtailment
If the Client receives a principal curtailment from the Borrower prior to the Effective Date of
Servicing Transfer, and the principal curtailment is not reflected in the Funding Amount,
the Client must forward all such payment(s) to the Designated Servicer as stated in this
Servicing Released Chapter.
(C) Escrow
If the Client is entitled to receive reimbursement for an escrowed item disbursed after the
Sale Date, the Client must send a request for reimbursement letter to the Designated
Servicer. Include supporting documentation, such as a Loan history and canceled check(s).
The Designated Servicer and/or GMAC-RFC may deny the Clients requests for
reimbursement if it is received three months after the Sale Date. The Client waives any right
to payment for any demand made after that date.
(D) Uncollected Funds
If a Borrowers check for a scheduled payment is not honored due to non-sufficient funds, the
Client must attempt to collect the amount due. If the Client determines the amount is
uncollectible, the Client must notify the Designated Servicer immediately.
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Doc 45-3
Exhibit B-1
8 GMAC-RFC
Page 8.16
03/13/06
Client Guide
Servicing Released
824
Monies Due Designated Servicer
(A) Principal and Interest
If the Client receives any payment(s) from the Borrower prior to or after the Effective Date of
Servicing Transfer that are due to the Designated Servicer, such payment(s) must be sent
by overnight mail service to the applicable Designated Servicer address within five Business
Days of receipt. See the Designated Servicer Directory (GMAC-RFC Exhibit 1800, Exhibit
1801 or Exhibit 1805). This includes, without limitation, scheduled principal and interest
payments, prepayments of principal and interest and escrow payments.
The Client must prepare a transmittal letter with any such payment(s) and must properly
endorse checks to the Designated Servicer. This letter must include:
Borrowers name
Assigned Designated Servicer Loan number (from Purchase Advice)
The date payment was received by the Client
(B) Principal Curtailment
If the Client receives a principal curtailment(s) from the Borrower prior to or after the
Effective Date of Servicing Transfer that are due to the Designated Servicer, the Client
must forward all such payment(s) to the Designated Servicer following procedures as stated
above under Principal and Interest.
(C) Escrow Funds
If the Client has escrow funds remaining after the Effective Date of Transfer that are due
to the Designated Servicer, the Client must forward all remaining funds to the Designated
Servicer within 30 days of the Effective Date of Transfer following procedures as stated above
under Principal and Interest.
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Doc 45-3
Exhibit B-1
GMAC-RFC
Page 8.17
03/13/06
Client Guide
Servicing Released
825
Loans Paid in Full
(A) Notification
The Client must notify GMAC-RFC of any Loans that have been paid in full prior to the
Effective Date of Transfer by submitting a Payoff/Liquidation Report (GMAC-RFC Form
2304) by fax within one Business Day of payoff to GMAC-RFCs Loan Accounting
Department at 818.260.1800. In addition, the Client must wire transfer Loan funds to
GMAC-RFC within five Business Days after the event that caused the payoff. See the Loans
Paid in Full Section in Chapter 9, Commitment and Delivery, or see the Servicer Guide for
further information regarding remittance of funds.
The Client must respond to any requests for payoff figures prior to the Effective Date of
Transfer. If the Effective Date of Transfer precedes the anticipated payoff date, the Client
must refer the requester to the Designated Servicer to obtain the quoted payoff figures.
Payoff funds received by the Client after the Effective Date of Transfer must be wire
transferred to the Designated Servicer within one Business Day of receipt of such funds. If
these funds are not wired to the Designated Servicer within one Business Day of their
receipt, the Client will be assessed daily interest.
Failure to provide timely reports and remittance will result in actions and/or penalties as
defined in Failure to Comply with GMAC-RFC Remittance Requirements Section of
Chapter 9D.
(B) Payoff/Liquidation within 90 Days
See the Premium Recapture Section in Chapter 2A for the Premium repayment terms.
See the Loans Paid in Full Section of Chapter 9D, Funding Requirements and Wire
Instructions for instructions of where to wire purchase Price Premium and servicing
premium repayments.
The Client must wire funds within five Business Days to GMAC-RFCs Client Correspondence
Segment, Collection Unit. See Loans Paid in Full Section of Chapter 9D, Funding
Requirements and Wire Instructions or see Servicer Guide for further information regarding
remittance of funds.
826
Servicing Document Corrections
If post-funding corrections are required to the Servicing Documents after Loan purchase,
the Client must submit outstanding items within 15 Business Days of written notification.
If corrections are not made to the satisfaction of GMAC-RFC within 15 Business Days, the
Client may be assessed penalties as determined by GMAC-RFC.
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Doc 45-3
Exhibit B-1
8 GMAC-RFC
Page 8.18
03/13/06
Client Guide
Servicing Released
827
Bulk Servicing Acquisitions
GMAC-RFC purchases Loans Servicing Rights in bulk packages as well as on a Loan-byLoan basis. In Bulk Servicing Acquisitions, the price, payment, volume, delivery and other
terms are negotiated in order to accommodate the needs and desires of both the Client and
GMAC-RFC. Typically, the sale terms are outlined in a purchase and sale agreement between
the Client and GMAC-RFC. Between the Sale Date and the Effective Date of Servicing
Transfer, as established under that agreement, all Loans will continue to be serviced by the
Client under the terms of an interim servicing agreement between the Client and GMAC-RFC.
Direct all inquiries regarding bulk sales of servicing to the GMAC-RFC Service Delivery Group.
828
Subservicing Election
GMAC-RFC may request that the Client subservice a Loan purchased servicing released for up
to 90 days after its Sale Date. If the Client agrees to honor that request, the Client will
subservice the Loan for the period designated by GMAC-RFC. GMAC-RFC and the Client will
agree upon the fee. Each Loan shall be subserviced under the terms and conditions of this
Client Guide, except as otherwise agreed upon by the Client and GMAC-RFC in writing.
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Exhibit B-1
GMAC-RFC
Page 9.1
11/21/05
Client Guide
Commitment, Prior
Approval, Delivery &
Funding
9
Commitment, Prior Approval, Delivery & Funding
Chapter 9A through Chapter 9E describe the processes for Commitments, prior underwriting
approval, delivery or funding of Loans. Chapters 9A through 9E focus primarily on process,
and do not define or alter the actual Loan Program purchase criteria and eligibility
standards which are contained in other Chapters of this Client Guide.
900
Descriptions of Underlying Chapters
Chapter 9A, Commitments: Process for Client to enter into a Commitment to deliver a Loan.
Chapter 9B, Prior Underwriting Approval: Process for obtaining prior underwriting approval
for certain Loan Programs.
Chapter 9C, Delivery: Process for Client to deliver, and for GMAC-RFC to review, accept or
reject, Funding Documents for a Loan prior to funding.
Chapter 9D, Funding Requirements and Wire Instructions: Process to wire transfer
payments to Client for funded Loans purchased by GMAC-RFC, and the processes for
complying with Clients remittance obligations.
Chapter 9E, Final Documents: Process for Client to submit Final Documents for a Loan.
901
Written Communication
In Chapter 9A through Chapter 9E, wherever this Client Guide states that GMAC-RFC will
provide written communication to Client concerning a decision, notification or other
communication from GMAC-RFC to Client regarding Commitments, prior underwriting
approval, delivery or funding, GMAC-RFC may provide its written communication in any
reasonable method determined by GMAC-RFC to reach the intended recipient. If Client has
provided its postal mail address, email address, fax number or other contact information to
GMAC-RFC for purposes of communicating written communication regarding Commitments,
prior underwriting approval, delivery or funding, GMAC-RFC may rely upon such contact
information and may presume that such written communications have been delivered to the
intended recipient.
902
Assetinfo
Assetinfo is a Client reporting application, available via the Lender Portal, designed to make
Loan pipeline inquiries easy and fast. Using Assetinfo, Clients may obtain 24 hour, 7-day-aweek access to the status of their Loans in process, outstanding Commitments, funded
Loan data, as well as other important information. The current capacities and offerings
through Assetinfo are subject to change at GMAC-RFCs sole discretion, and may be reviewed
by accessing the Assetinfo system. Client should contact its GMAC-RFC Sales Director for
additional information about the Assetinfo system.
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9 GMAC-RFC
Page 9.2
11/21/05
Client Guide
Commitment, Prior
Approval, Delivery
& Funding
Exhibit B-1
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Doc 45-3
Exhibit B-1
GMAC-RFC
Page 9A.1
11/21/05
Client Guide
Commitments
9A
Commitments
This Chapter describes the process to enter into a Commitment to deliver a Loan.
Questions regarding the terms of this Chapter may be addressed by calling 800.328.2800.
A900
Commitment Defined
A Commitment is an agreement whereby Client commits to deliver to GMAC-RFC a Loan as
described in the Commitment that is in any event eligible for purchase under the terms of
this Client Guide. Clients may enter into Commitments in one of two different typeseither a
Mandatory Delivery Commitment or a Best Efforts Delivery Commitment.
Under a Mandatory Delivery Commitment, Client commits to deliver one or more Loans
eligible for purchase which conform to those described in the Commitment to GMACRFC prior to the end of the Commitment Period.
Under a Best Efforts Delivery Commitment, Client commits that: (i) it will make best
efforts to close the Loan as described in the Commitment; and (ii) if closed then Client
shall deliver the Loan, otherwise eligible for purchase to GMAC-RFC.
Client must enter into a Commitment for each Loan prior to delivering to GMAC-RFC. Client
may choose, at Clients option, to enter into the Commitment prior to or after closing or
disbursing on the Loan.
A Commitment Confirmation is GMAC-RFCs written communication to the Client
confirming that GMAC-RFC has accepted Clients Commitment and additional terms and
conditions applicable to GMAC-RFCs potential purchase of the Loan under such Commitment,
as described in the Commitment Confirmation Section of this Chapter. If Client
subsequently delivers an otherwise eligible Loan within the Commitment Period which fully
and strictly conforms to the Loan described in the Commitment, GMAC-RFC shall receive and
review the Loan for potential purchase under the pricing and terms described in the
Commitment Confirmation.
Additional terms applicable to all Commitments:
Each lien position of a property may have no more than one Commitment outstanding
at any one time with GMAC-RFC.
Client may not assign or transfer a Commitment, in whole or in part, without the prior
express written consent of GMAC-RFC.
Note that the term Commitment is not to be confused with other agreements or terminology
which may be used between Client and GMAC-RFC, such as a master Commitment or a
forward Commitment.
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Exhibit B-1
9A GMAC-RFC
Page 9A.2
11/21/05
Client Guide
Commitments
A901
Requesting a Commitment
GMAC-RFC will respond to Client requests to enter into Commitments only during
Registration Hours. Unless GMAC-RFC has altered the Registration Hours, they are the
times between 8:00 a.m. and 4:00 p.m. (Central Time) on Business Days. Registration
Hours may be changed or suspended by GMAC-RFC at its sole discretion.
Clients may request to make Commitments by either:
Calling the GMAC-RFC Trading Desk at 800.328.2800;
Using the Assetlock Electronic Tool as described in Chapter 4G, Electronic Services; or
Sending a fax to 952.832.9856 using one of the following forms as appropriate to the
circumstances:
Loan Registration Form (GMAC-RFC Form 1905)
Loan Registration Multiple Form (GMAC-RFC Form 1906)
Goal Loan Registration Form (GMAC-RFC Form 1910)
125 CLTV Loan Registration Form (GMAC-RFC Form 16H03)
All Commitment requests must include the following:
Client seller number and identification
Clients own-assigned Loan number (if available)
Contact information (name, telephone and fax number) of person making request
Commitment type (Mandatory or Best Efforts)
Servicing released or servicing retained (if Loan Program is eligible for servicing
retained)
Borrower last name, first name and middle initial
Primary Borrowers Social Security number
Loan application date
Subject property description including street address, unit number, city, State and zip
code
Commitment Period requested
Loan Program, Product and credit grade
Loan principal amount (dollars)
Gross Note rate or net rate
Gross Margin
Loan transaction type (purchase, refinance, cash-out)
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Doc 45-3
Exhibit B-1
GMAC-RFC
9A
Page 9A.3
11/21/05
Client Guide
Commitments
A902
Commitment Confirmation
After Client has communicated its request to enter into a Commitment, the request is nonrevocable by Client until GMAC-RFC either accepts or rejects the request. Upon receipt of a
request, GMAC-RFC will thereafter determine at its sole discretion if it will accept or reject
the request, the means it will use to communicate its response, and if applicable the terms of
the Commitment including the price and the Commitment Period. GMAC-RFC is not
deemed to have accepted a request to enter into a Commitment until GMAC-RFC has sent its
written communication of a Commitment Confirmation to Client.
Although GMAC-RFC will use commercially reasonable means to receive requests and send
its responses for Commitments, GMAC-RFC is not responsible for any failures of Client to
deliver or receive any such communications, and Client acknowledges that GMAC-RFC will act
in reliance of a Commitment that it has accepted even if Client does not receive the
Commitment Confirmation.
Further, Client acknowledges that prices in a Commitment Confirmation will be those
applicable at the time GMAC-RFC responds to the request for Commitment, and that GMACRFC is not responsible for market changes or other repricing events that may have occurred
between the time of Clients request and GMAC-RFCs response. Clients that wish to mitigate
the risk of market-shifting should use time-sensitive means of communication (such as voice
or the Assetlock Electronic Tool) rather than means without immediate feedback (such as
fax).
Further, Client acknowledges that if GMAC-RFC accepts a Commitment by voice (such as by
telephone), the Commitment will remain subject to all terms and conditions shown in a
subsequently delivered Commitment Confirmation.
Each Commitment Confirmation will provide GMAC-RFCs applicable Commitment number,
which Client must include in all future communications regarding such Commitment.
A903
Commitment Periods
The Commitment Period for any Commitment is the earlier of:
The expiration date set forth in the Commitment Confirmation; or
For Best Efforts Delivery Commitments, 10 calendar days after the projected
closing date stated in the Commitment (inclusive of the closing date); or
For a 1st Lien Line of Credit or a Goal Line of Credit, 30 calendar days from the closing
date of the Home Equity Line Security Agreement or Note.
Commitment Periods end at the end of Registration Hours on the last date calculated
above. If the expiration date falls on a Saturday, Sunday or holiday, the Commitment Period
will expire at the end of Registration Hours on the next Business Day.
Extensions of a Commitment Period may be granted at GMAC-RFCs sole discretion, and shall
be subject to Loan repricing at GMAC-RFCs sole discretion.
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Exhibit B-1
9A GMAC-RFC
Page 9A.4
11/21/05
Client Guide
Commitments
A904
Failure to Deliver or Over-Deliver
(A) Mandatory Delivery Commitments
Unless otherwise stated by the GMAC-RFC Trading Desk, Client must deliver eligible Loans
under a Mandatory Delivery Commitment, conforming with the applicable Loan Program
described therein, with an aggregate outstanding principal balance that is within the
following allowances:
5% (plus or minus) of the Commitment amount for a flow Commitment of less than
$2 million, or
$100,000 (plus or minus) of the Commitment amount for a flow Commitment of $2
million or more, or
as may be negotiated by the GMAC-RFC Trading Desk
To the extent Clients delivery of eligible Loans under a Mandatory Delivery Commitment has
an aggregate outstanding principal balance (subject to the allowances stated above) less
than the Commitment amount, GMAC-RFC may, at its sole discretion, charge Client a
Buyout Fee as described in the Extension and Buyout Fees Section of this Chapter.
To the extent Clients delivery of eligible Loans under a Mandatory Delivery Commitment has
an aggregate outstanding principal balance (subject to the allowances stated above) greater
than the Commitment amount, GMAC-RFC may, at its sole discretion, either: reject any
submitted Loans (as chosen by GMAC-RFC) until the delivery is within the Commitment
amount, reject the entire delivery, or accept and purchase the additional Loans subject to
repricing.
(B) Best Efforts Delivery Commitments
GMAC-RFC permits participation in a Best Efforts Delivery Commitment solely at GMACRFCs discretion, and GMAC-RFC may restrict or halt Clients future participation in a Best
Efforts Delivery Commitment at any time.
Once Client closes a Loan subject to a Best Efforts Delivery Commitment, the Commitment
shall automatically be deemed a Mandatory Delivery Commitment and subject to the above
terms for Failure to Deliver or Over-Deliver: Mandatory Delivery Commitments
Section of this Chapter.
GMAC-RFC may presume that a Loan subject to a Best Efforts Delivery Commitment has
been closed by Client by the end of the Commitment Period unless and until Client
specifically informs GMAC-RFC that the Loan will not close. GMAC-RFC may charge the
appropriate Buyout Fee effective anytime after the 10th calendar day after the anticipated
closing date unless Client has informed GMAC-RFC of the non-closing.
If a Loan fails to close that was under a Best Efforts Delivery Commitment, and Client
informs GMAC-RFC that the Loan has not closed, Client will not be subject to a Buyout Fee for
the particular Commitment. However, if Client fails to deliver eligible Loans equal to at least
75% of the Loan amounts under its Best Efforts Delivery Commitments in any two
consecutive calendar quarters, GMAC-RFC reserves the right to assess Client an additional
fee equal to an amount up to the difference between the aggregate Best Efforts Delivery
Commitment dollar amount and Clients aggregate outstanding principal balance for
delivered and otherwise eligible Loans in those prior quarters.
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Exhibit B-1
GMAC-RFC
9A
Page 9A.5
11/21/05
Client Guide
Commitments
A905
Extension and Buyout Fees
If GMAC-RFC is willing to grant an extension to an existing Commitment Period, GMAC-RFC
may, at its sole discretion, require a repricing of the Commitment. GMAC-RFC may
communicate the repricing in the form of points to be netted against the original pricing,
which will be accounted for at the time of funding for the Loan once purchased.
Client will be required to buyout a Commitment by payment of a Buyout Fee under the
following circumstances:
As described in the Failure to Deliver or Over-Deliver Section of this Chapter; or
Where GMAC-RFC rejects a delivery of a Loan subject to a Commitment and Client is
unable or unwilling to correct the delivery in a timely manner.
Further, if a delivery remains in a pended or declined status for more than 75 days, GMACRFC may at its sole discretion demand that Client buyout the Commitment.
The Buyout Fee at any particular time is based on the then-current Rate Sheet and GMACRFCs formula for buyout rates (available upon request from the GMAC-RFC Trading Desk).
Failure to deliver a Loan that is subject to a Mandatory Delivery Commitment (including a
Best Efforts Delivery Commitment that has subsequently been deemed a Mandatory
Delivery Commitment once the described Loan has been closed by Client) is a material
breach of Clients obligations under this Client Guide, and Clients payment of a Buyout Fee is
not GMAC-RFCs sole remedy for such breach. Without limitation, in addition to the payment
of the Buyout Fee, Client shall remain fully liable to GMAC-RFC for all consequential damages
suffered by GMAC-RFC as a result of Clients failure to fulfill its obligations under a Mandatory
Delivery Commitment.
Once a buyout of a Commitment has been completed and Clients Buyout Fee obligations
have been fully satisfied, GMAC-RFC will make commercially reasonable efforts to return any
submitted Funding Documents and Final Documents for such Loan back to Client.
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9A GMAC-RFC
Page 9A.6
11/21/05
Client Guide
Commitments
Exhibit B-1
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Doc 45-3
Exhibit B-1
GMAC-RFC
Page 9B.1
11/21/05
Client Guide
Prior Underwriting
Approval
9B
Prior Underwriting Approval
This Chapter describes the process for obtaining prior underwriting approval for certain Loan
Programs.
Prior underwriting review and approval is required for Loans over $2 million to ensure
adherence to program and underwriting standards.
Prior underwriting means that GMAC-RFC will perform a complete underwriting analysis of
the Loan, including credit, income, assets, liabilities and appraisal prior to the Borrower
closing the Loan. A prior underwriting approval may, at GMAC-RFC's sole discretion, include
an exception to Program Criteria and underwriting standards. If GMAC-RFC has granted an
exception to Program Criteria or underwriting standards, then GMAC-RFC ensures the Loan
will not be denied for purchase or returned for repurchase due to non-compliance with the
Program Criteria or underwriting standards for which the exception was granted.
Except where GMAC-RFC has granted a specific exception, Loans must comply with all of
Client's Representations, Warranties and Covenants (including, without limitation, Client's
Representations and Warranties with respect to fraud and misrepresentation) and Client's
other obligations under this Client Guide.
Prior underwriting review is not offered for Loans less than or equal to $2 million.
Questions regarding the terms of this Chapter may be addressed by calling 800.814.8842.
B900
Prior Underwriting SubmissionDelivery Requirements
The Client must submit one legible copy of the complete credit package. Original documents
are not required. Loans must be clearly identified as prior underwriting request on the Loan
Submission Form (GMAC-RFC Form 16A00) and must be sent to:
GMAC-RFC
One Meridian Crossings
Suite 100
MC 03-SDG-MR
Minneapolis, MN 55423
Attention: Prior Underwriting Request
B901
Required Documents for Prior Underwriting
The credit package must contain the following documents attached with a two prong fastener
on the right side of the Loan file.
(1) Loan Submission (GMAC-RFC Form 16A00).
(2) Assetwise Findings, if applicable.
(3) Uniform Underwriting and Transmittal Summary (Fannie Mae Form 1008).
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9B GMAC-RFC
Page 9B.2
11/21/05
Client Guide
Prior Underwriting
Approval
(4) If secondary or subordinate financing exists, a copy of the Note or approval for
Secondary Financing to verify terms.
(5) The purchase agreement and any modifications, if applicable.
(6) Construction/permanent Loan, documentation of construction costs, if applicable.
(7) Residential Loan Application (Fannie Mae Form 1003 or Freddie Mac Form 65).
(8) Statement of Assets and Liability (Fannie Mae Form 1003A or Freddie Mac Form
65A), if applicable.
(9) All necessary credit reports with Credit Scores for all Borrowers.
(10) Verification of deposit and verification of the source of down payment (if applicable).
(11) Verification of real estate Loans, if applicable.
(12) Verification of employment/income as required by the income documentation type.
(13) Signed personal federal income tax returns for the previous two years, including all
supporting schedules, if the Borrower is self employed or non-salaried, as required
by the income documentation type.
(14) Self-employment income analysis (GMAC-RFC Form 16A01) if the Borrower is selfemployed. GMAC-RFC will also allow self-employed income to be calculated using
Fannie Maes Self-Employed Income Analysis From 1084A or 1084B and requires
compliance with IRS regulations.
(15) Ground Lease Analysis (Freddie Mac Form 461), if applicable.
(16) Condominium Warranty Certification (GMAC-RFC Form 1303) if applicable.
(17) Residential Appraisal Report (applicable Fannie Mae or Freddie Mac Forms).
(18) Three clearly legible photograph prints of the propertyfront, rear and street scene
with the subject-matter filling the full frame.
(19) Clearly legible photograph prints of each comparable used on the Residential
Appraisal Reportfront scene with the subject-matter filling the full frame.
(20) Clearly legible interior and exterior photos of unique property features or
improvements identified on the appraisal.
(21) Location map showing the property and the comparables.
(22) The assumption agreement(s), if any.
(23) For refinances, one of the following, as applicable:
Documentation of the original purchase price of the property plus improvements (if
any)
For cash out refinances, evidence that the Borrower has owned the property for at
least 12 months
(24) Any other documents or materials required by the applicable Loan Program or
other requirements specific in this Client Guide or as reasonably requested to
support the credit worthiness of the transaction.
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Exhibit B-1
GMAC-RFC
9B
Page 9B.3
11/21/05
Client Guide
Prior Underwriting
Approval
B902
Notification of Prior Underwriting Loan File Status
A GMAC-RFC underwriter will fax a notification to the Client advising them of the Loan
disposition. The notification of Loan disposition will be sent to the contact person identified by
the Client on the Loan Transmittal (GMAC-RFC Form 16A00).
B903
Returning Loan Files
Loan files submitted for prior underwriting review will not be returned to the Client.
Therefore, GMAC-RFC recommends that Clients do not submit original Credit Documents.
B904
Equal Credit Opportunity Act (ECOA) and Home Mortgage Disclosure Act (HMDA)
Compliance
To comply with ECOA requirements on denied Loans submitted for prior underwriting review,
GMAC-RFC will provide Client with specific denial reasons. If the applicant does not receive a
Loan, Client must provide a Notice of Adverse Action to the applicant. If one notification is
provided on behalf of multiple creditors, the notification must contain GMAC-RFCs name and
address in addition to the names and addresses of any other creditors. The notification must
clearly indicate the denial reasons that relate to each creditor.
On a Loan submitted for prior approval, GMAC-RFC will make the credit decision and will
report the decision made on the application as required under the Home Mortgage Disclosure
Act (HMDA). If GMAC-RFC approves and subsequently purchases the Loan, it will report the
Loan as an origination. To avoid duplicate reporting, Client should not report the Loan as an
origination.
B905
Additional Delivery Documentation
When a prior approval Loan is submitted to GMAC-RFC for purchase, a copy of the Borrowers
rate lock agreement form must be in the file.
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9B GMAC-RFC
Page 9B.4
11/21/05
Client Guide
Prior Underwriting
Approval
Exhibit B-1
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Exhibit B-1
GMAC-RFC
Page 9C.1
11/21/05
Client Guide
Delivery
9C
Delivery
This Chapter describes the process for Client to deliver, and for GMAC-RFC to review, accept
or reject, Funding Documents for a Loan prior to funding.
Questions regarding the terms of this Chapter may be addressed by calling 800.814.8842.
C900
Delivery Process
For each Loan that Client wishes to sell to GMAC-RFC, Client must first deliver the Loan to
GMAC-RFC per the terms of this Chapter.
After Client has entered into a Commitment, the normal stages of the delivery and
subsequent funding process for a Loan are:
(1) Client closes the Loan and submits the Funding Documents for the Loan to GMACRFC, refer to the Submission of Funding Documents and Funding Documents
Sections of this Chapter;
(2) GMAC-RFC reviews and determines if it will approve the Funding Documents, and if
necessary, Client submits corrected or additional Funding Documents, refer to the
Review and Acceptance of Funding Documents Section of this Chapter;
(3) If the Funding Documents have been accepted and approved by GMAC-RFC, GMACRFC funds the Loan purchase, refer to Chapter 9D, Funding Requirements and Wire
Instructions; and
(4) The Final Documents and further assurances document (if applicable) processes
are completed for the Loan, refer to Chapter 9E.
C901
Submission of Funding Documents
Clients submission of Funding Documents for a Loan subject to a Commitment to GMACRFC is deemed to be Clients irrevocable offer to sell the Loan to GMAC-RFC under the terms
of the then-current Commitment.
For submitting Funding Documents, GMAC-RFC recommends the use of an express delivery
service, specifying priority delivery. Any submissions or transmittals of Funding Documents
package must include the applicable Commitment number. Submissions received by GMACRFC outside of business hours may, at GMAC-RFCs sole discretion, be treated as having
arrived on the following Business Day. Client must submit all Funding Documents to:
GMAC-RFC
One Meridian Crossings
Suite 100
Minneapolis, MN 55423
MC 03-SDG-MR
Attention: Loan Processing & Delivery
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Exhibit B-1
9C GMAC-RFC
Page 9C.2
11/21/05
Client Guide
Delivery
C902
Funding Documents
Funding Documents are comprised of Legal Documents, Credit Documents and, in
some instances, Servicing Documents. The requirements for each set of documents are
described below. Each delivery must comply and provide the required Funding Documents,
and any deficiency or failure to comply with these requirements may be cause for rejection of
the delivery by GMAC-RFC.
This Client Guide also provides delivery checklists. The delivery checklists are merely for
convenience, and this Section will prevail if there is any conflict between the Section and a
checklist. The appropriate delivery checklists are indicated at the top of the Legal Document
chart below.
For paper-based Deliveries, Client must submit Funding Documents using industry-standard
two-sided Loan folders, with two-prong fasteners. Legal Documents must be on the left side,
Credit Documents must be on the right side, and Servicing Documents (if required) must be
on the left side under the Legal Documents.
(A) Legal Documents
The Legal Documents are as follows. An X in the chart below indicates that the particular
form or document is required for the particular Loan Program indicated above. Each of the
documents in the following table are explained in the key below the table.
Type of Loan
All First Mortgage
1st Lien
Line of Credit
Goal Line
Loan Submission
Form, GMAC-RFC
Form 16A00, page 2,
Checklist
Security Instrument
Assignment in Blank
(if applicable)
Intervening Assignment(s)
(if applicable)
Document
(see key below)
Title Binder/Search
Temporary Buydown
Schedule (if applicable)
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Exhibit B-1
9C
GMAC-RFC
Page 9C.3
11/21/05
Client Guide
Delivery
Type of Loan
Document
(see key below)
1st Lien
Line of Credit
Goal Line
Loan Submission
Form, GMAC-RFC
Form 16A00, page 2,
Checklist
Truth-in-Lending Statement
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Exhibit B-1
9C GMAC-RFC
Page 9C.4
03/13/06
Client Guide
Delivery
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Exhibit B-1
9C
GMAC-RFC
Page 9C.5
10/21/05
Client Guide
Delivery
(10) Right of Rescission Notice: Where required by applicable law for the origination of
the Loan, a fully executed and dated Notice of Right to Rescission
(11) Other required documents or materials: Any other documents or materials
required by the applicable Loan Program or other requirements as specified in this
Client Guide.
If a Loan was acquired by Client in a merger, any endorsement or assignment specified above
must be by _______________, successor by merger to the [name of predecessor]. If the
Loan was acquired or originated by Client while doing business under another name, any
endorsement or assignment specified above must be by ______________ formerly known
as [previous name].
For more information on acceptable Legal Document options, see the exhibit Legal Doc
Options (GMAC-RFC Exhibit 1915 for home equity Loans). Regardless of the form of
documents Client chooses to use, all Legal Documents must be compliant with the terms of
the particular Loan Program as well as any particular documentation requirements set forth
in Chapter 3, Loan Eligibility or Chapter 5, Loan Products.
(B) Servicing Documents
If a Loan being delivered is servicing released, Client must submit the following Servicing
Documents with each delivery. An X in the chart below indicates that the particular form or
document is required for the particular Loan Program indicated above. Each of the
documents in the following table are explain in the key below the table.
Type of Loan
Document
(see key on the next page)
Hazard Insurance
Flood Insurance1
Payment History1
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9C GMAC-RFC
Page 9C.6
11/21/05
Client Guide
Delivery
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GMAC-RFC
9C
Page 9C.7
12/15/05
Client Guide
Delivery
(7) Refinance transactions require evidence that liens or debt payoffs have occurred as
well as identifying if the Borrower is receiving cash back in the transaction.
Acceptable documentation includes:
Final HUD-1;
Certified copy of the escrow instructions;
Disbursement schedule; or
Attorneys closing statement.
(8) The Purchase Agreement or escrow instructions and any modifications.
(9) Construction/permanent Loan, documentation of construction costs (if applicable).
(10) Residential Loan Application (Fannie Mae Form 1003/Freddie Mac Form 65).
(11) Statement of Assets and Liabilities (Fannie Mae Form 1003A/Freddie Mac Form 65A),
if applicable.
(12) All necessary credit reports with Credit Scores for all Borrowers.
(13) Verification(s) of deposit and verification(s) of the source of down payment, if
applicable.
(14) Verification(s) of real estate Loan(s), if applicable.
(15) Verification of employment/income as required by the income documentation type.
(16) Signed personal federal income tax returns for the previous two years, including all
supporting schedules, if the Borrower is self-employed or non-salaried, if applicable.
(17) Self-Employment Income Analysis (GMAC-RFC Form 16A01), if the Borrower is selfemployed or GMAC-RFC will also allow self-employed income to be calculated using
Fannie Maes Self-Employed Income Analysis Form 1084A or 1084B and requires
compliance with IRS regulations.
(18) Ground Lease Analysis (Freddie Mac Form 461), if applicable.
(19) Condominium Warranty Certification (GMAC-RFC Form 1303), if applicable.
(20) Residential Appraisal Report (applicable Fannie Mae/Freddie Mac Form), or, for Loan
Programs where applicable and permitted, an AVM or Qualified AVM that complies
with the terms of the Loan Program.
(21) Three clearly legible photograph prints of the propertyfront, rear and street scene
with the subject-matter filling the full frame.
(22) Clearly legible photograph prints of each comparable used on the Residential
Appraisal Reportfront scene with the subject-matter filling the full frame.
(23) Clearly legible interior and exterior photos of unique property features or
improvements identified on the appraisal.
(24) Location map showing the property and the comparables.
(25) The assumption agreement(s), if any.
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Exhibit B-1
9C GMAC-RFC
Page 9C.8
03/13/06
Client Guide
Delivery
C903
Review and Acceptance of Funding Documents
GMAC-RFC may, at its sole discretion, inspect or review any or all of a Loan submitted for
delivery. If any of the Funding Documents do not fully comply with this Client Guide or the
applicable Commitment, GMAC-RFC may, at its sole discretion, demand by written
communication that Client submit fully compliant Funding Documents from the later of:
Five Business Days from the date of the GMAC-RFC request for correction or
substitution; or
The expiration date of the Commitment.
GMAC-RFC may, at its sole discretion, negotiate Alternative Delivery date requirements for
bulk Commitments.
If Client does not provide fully compliant Funding Documents within the time frames set forth
above, GMAC-RFC may, at its sole discretion allow or require any of the following (singly or in
any combination):
allow Client additional time;
allow Client additional time subject to payment of an extension fee;
allow Client additional time subject to GMAC-RFCs repricing the Loan;
reject the delivery; or
reject the delivery and require payment by Client of a Buyout Fee.
A Delivery is not deemed accepted by GMAC-RFC unless and until GMAC-RFC has delivered
its purchase advice, substantially in the form of (GMAC-RFC Exhibit 1803) to Client.
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Exhibit B-1
GMAC-RFC
9C
Page 9C.9
11/21/05
Client Guide
Delivery
C904
MERS Loan Registration, Transfer and Delivery Requirements
GMAC-RFC requires Clients to register each delivered Loan with MERS using one of the
following options:
Become a MERS member and name MERS as original mortgagee on the Security
Instrument (MOM Document) or for a Non-MOM Document, create and record an
assignment into MERS and register with MERS; or
Use MERS 1-2-3 to create MOM documents without a MERS membership; or
Client provides an assignment in blank as part of the Funding Documents. GMAC-RFC
will charge Client an additional assignment fee if Client chooses this option.
Client may join MERS by calling 800.646.6377 or complete the online application at:
www.mersinc.org.
Direct registration or transfer of beneficial and Servicing Rights must be done within five
Business Days of purchase by GMAC-RFC.
The following entities must be named in the appropriate fields on the MERS system:
Servicer: 1000440 GMAC Residential Funding Corporation (Conduit); Sub-Servicer:
1000474 Homecomings Financial Network (if servicing released); Investor: 1000440
GMAC Residential Funding Corporation (Conduit)
Note: Servicer is defined as Master Servicer, not the owner of the primary servicing. This
field must reflect GMAC Residential Funding for all Loans sold servicing released and
servicing retained. Sub-Servicer is required for only those Loans sold servicing released.
Example of servicing released MERS direct registration and/or transfers:
Servicer: 1000440 - GMAC Residential Funding Corporation (Conduit)
Sub-Servicer: 1000474 - Homecomings Financial Network
Investor: 1000440 - GMAC Residential Funding Corporation (Conduit)
Example of servicing retained MERS direct registration and/or transfers:
Servicer: 1000440 - GMAC Residential Funding Corporation (Conduit)
Investor: 1000440 - GMAC Residential Funding Corporation (Conduit)
Sub-Servicer: Client must enter appropriate sub-servicer based on the primary
servicing relationship.
1
MERS 1-2-3 is a browser-based application within the MERS System Authorized users can generate, validate,
and reserve a MIN, and link to a MERS-certified document preparation provider for document preparation (full or
partial document packages with MOM Security Instruments) and preliminary registration.
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Exhibit B-1
9C GMAC-RFC
Page 9C.10
11/21/05
Client Guide
Delivery
C905
Alternative Delivery
GMAC-RFC in its sole discretion may approve Client for participation in an Alternative
Delivery process. Alternative Delivery means a process that provides Client with
nonstandard procedures and delivery requirements. GMAC-RFCs approval may be based,
among other things, on Clients ability to meet GMAC-RFCs eligibility requirements for the
process. If GMAC-RFC accepts Client to participate in an Alternative Delivery process, GMACRFC will provide Client with one or more unilateral notices setting out the non-standard
procedures, delivery requirements, as well as the product and the time period for which the
Alternative delivery applies. By participating in the Alternative Delivery process, Client
agrees to abide by the terms and conditions set out in the notices sent by GMAC-RFC to
Client. Except for the variances set out in the Alternative Delivery notices, all other terms and
conditions of this Chapter 9C continue to apply.
If Clients Alternative Delivery terms allow Client to retain any documents after funding,
Client will hold such retained documents in trust for GMAC-RFC. In addition, Client agrees to
deliver all documents in its possession within the time set out in the Alternative Delivery
notice or at such other time as GMAC-RFC requests the documents.
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Exhibit B-1
GMAC-RFC
Page 9D.1
11/21/05
Client Guide
Funding Requirements
and Wire Instructions
9D
Funding Requirements and Wire Instructions
This Chapter describes the process to wire transfer payments to Client for funded Loans
purchased by GMAC-RFC, and the processes for complying with Clients remittance
obligations
Questions regarding the terms of this Chapter may be addressed by calling 800.814.8842.
D900
Wire Transfer Process
After reviewing the Commitment delivery summary and Funding Documents and
determining their completeness and accuracy, GMAC-RFC will provide a Purchase Advice on
the day prior to funding, accompanied by a cover letter (GMAC-RFC Form 1913) providing
detailed instructions. The Client must sign and return the form before the deadline noted on
the cover letter. Upon receipt of the completed form, GMAC-RFC will be authorized to transfer
funds to the depository institution designated by the Client.
GMAC-RFC will provide the Purchase Advice Form to the Client by email or fax, based on
information provided by the Client. For flow delivery of Loans, the Client must complete the
information on the Loan Submission Form (GMAC-RFC Form 16A00). For bulk delivery of
Loans, the Client must complete a Bulk Client Contact Information Sheet (GMAC-RFC Form
1914).
A copy of the purchase advice is available via the Lender Portal, but only after the Loan has
been funded by GMAC-RFC.
D901
Funding Amount
(A) Servicing Retained Loan Fundings
The wire transfer amount for a servicing retained Loan purchase will include:
The outstanding principal balance of the Loans, as indicated on the Loan Submission
Form (GMAC-RFC Form 16A00) or the Uniform Underwriting and Transmittal
Summary (Fannie Mae Fannie Mae Form 1008), adjusted to the Scheduled Principal
Balance as of the last day of the funding month plus
Interest at the accrual yield minus
Any fees and discounts or plus premiums
The following examples illustrate time adjustments of principal balances.
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Exhibit B-1
9D GMAC-RFC
Page 9D.2
11/21/05
Client Guide
Funding Requirements
and Wire Instructions
Example 1
The unpaid principal balance is $200,000, with a paid-to-date of October 1
The scheduled Funding Date is November 15
GMAC-RFC will adjust the Scheduled Principal Balance to the last day of the month
in which the Funding Date occurs (November 30), remitting $199,950, which
assumes that the Client will have applied a $50 principal portion of the P&I payment on
November 1
The first monthly remittance for this Loan will need to be a wire transfer in immediately
available federal funds by the Servicer on December 18
Example 2
The unpaid principal balance is $199,950, with a paid to date of November 1
The Scheduled Funding Date is October 18
GMAC-RFC will adjust the Scheduled Principal Balance to the first day of the month in
which the Funding Date occurs (October 31), remitting $200,000, which assumes that
the November 1 principal portion of the P&I payment of $50 has not yet been applied
The first monthly remittance for this Loan will need to be a wire transfer in immediately
available Fed Funds by the Servicer on November 18
(B) Servicing Released Loan FundingsScheduled Transfer
The Effective Date of Transfer will be on the first day of the second month following the
Funding Date.
The wire transfer amount for a servicing released Loan purchase will include:
The outstanding principal balance of the Loan, as indicated on the Loan Submission
Form (GMAC-RFC Form 16A00) or a Loan payment history, adjusted to the
Scheduled Principal Balance as of the day prior to the Effective Date of Transfer
minus
Interest at the accrual yield minus
Escrow balance transferred, tax service fee, Temporary Buydown, prepaid or
delinquent payment(s) minus
Fees, discounts or plus premiums
The following example illustrates time adjustments of principal balances.
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Exhibit B-1
GMAC-RFC
9D
Page 9D.3
03/13/06
Client Guide
Funding Requirements
and Wire Instructions
Example
The unpaid balance is $200,000, with a paid to date of October 1
The scheduled Funding Date is November 15. The Effective Date of Transfer is
January 1
GMAC-RFC will adjust the Scheduled Principal Balance to the day prior to the Effective
Date of Transfer (December 31) remitting $199,900, which assumes the Client will
apply the $100 principal portion of the P&I payment for November 1 and December 1
The Client is responsible to continue servicing the Loan and to collect any payments
due up to the Effective Date of Transfer
The Client is not responsible to make any remittance for this Loan unless they receive
payments from the Borrower, which are due on or after the Effective Date of Transfer
(C) Servicing Released Loan FundingEarly Scheduled Transfer
The Effective Date of Transfer will be on the first day of the month following the Funding
Date. The wire transfer amount for a servicing released Loan purchase will include:
The outstanding principal balance of the Loan, as indicated on the Loan Submission
Form (GMAC-RFC Form 16A00) or the Uniform Underwriting and Transmittal
Summary (Fannie Mae 1008), adjusted to the Scheduled Principal Balance as of the
day prior to the Effective Date of Transfer minus
Interest at the accrual yield minus
Escrow balance transferred, tax service fee, Temporary Buydown minus
Fees, discounts or plus premiums
The following example illustrates time adjustments of principal balances:
The unpaid principal balance is $200,000, with a paid-to-date of October 1
The scheduled Funding Date is November 15. The Effective Date of Transfer is
December 1
GMAC-RFC will adjust the Scheduled Principal Balance to the day prior to the Effective
Date of Transfer (November 30), remitting $199,950, which assumes that the Client
will apply the $50 principal portion of the P&I payment for November 1
The Client is responsible to continue servicing the Loan and to collect any payments
due up to the Effective Date of Transfer
The Client is not responsible to make any remittance for this Loan unless they receive
payments from the Borrower, which are due on or after the Effective Date of Transfer
(D) Servicing Released Loan Funding Actual Balance Transfer
The Effective Date of Transfer will be 15 days after the Sale Date. The wire transfer
amount for a servicing released Loan purchase will include:
The outstanding principal balance of the Loan, as indicated on the Loan
The outstanding principal balance of the Loan, as indicated on the Loan Submission
Form (GMAC-RFC Form 16A00) or the Uniform Underwriting and Transmittal
Summary (Fannie Mae 1008), minus
Interest at the accrual yield minus
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Exhibit B-1
9D GMAC-RFC
Page 9D.4
03/13/06
Client Guide
Funding Requirements
and Wire Instructions
D902
Notification of Wire Transfer
GMAC-RFC will notify the Client of each scheduled Funding Date by sending a GMAC-RFC
Purchase Advice (GMAC-RFC Exhibit 1803), via fax to the person and fax number indicated
on the Wire Transfer Authorization (GMAC-RFC Form 1900). GMAC-RFC will initiate each
wire transfer in sufficient time to be credited to the Clients account on the scheduled Funding
Date.
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Exhibit B-1
GMAC-RFC
9D
Page 9D.5
11/21/05
Client Guide
Funding Requirements
and Wire Instructions
D903
Payoff Prior to Funding Date
If a Loan pays off prior to or on the Funding Date, the Client is required to remit to GMACRFC the full Funding Amount within five Business Days of the Client receiving the payoff.
The Funding Amount includes par times price plus or minus adjustments, plus or minus the
interest paid by or to GMAC-RFC and the Servicing Released Premium, if applicable.
The Client is also required to pay GMAC-RFC a Buyout Fee for failure to deliver an
investment quality Loan, refer to the Extension and Buyout Fees Section of Chapter 9A,
Commitments and for the use of funds from the date of funding through the date the Client
remits the payoff proceeds. This amount is calculated as par plus or minus discount plus
Servicing Released Premium (if applicable) times federal funds plus 75 basis points.
(Total Funding Amount) x (federal funds +.75) x (the number of days/365).
For payoffs occurring prior to the Funding Date, the funds are to be wire transferred to
GMAC-RFCs RCG Finance unit:
Residential Funding
DDA #53-15476
Bank One, National Association; Chicago, IL
ABA # 071000013
Client ID number and name
GMAC-RFC Loan number
Reason: Payoff before Funding
D904
Loans Paid in Full
(A) Notification
The Client must notify GMAC-RFC of any Loans that have been paid in full prior to the
Effective Date of Transfer by submitting the electronic spreadsheet (GMAC-RFC Servicer
Guide Form 2308) via email to the BUR-Seller Payoffs@gmacrfc.com mailbox. In addition,
the Client must wire transfer Loan funds to GMAC-RFC within five Business Days after the
event that caused the payoff.
For payoffs occurring on or after the Funding Date but before the Effective Date of Transfer,
funds are to be wire transferred to GMAC-RFC Loan Accounting:
Residential Funding Corp.
c/o US Bank
Account #104774437644
ABA #091 000 022
Client ID number and name
GMAC-RFC Loan number
Reason: Payoff
Failure to provide timely reports and remittance will result in actions and/or penalties as
defined in Failure to Comply with GMAC-RFC Remittance Requirements Section of this
Chapter.
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Exhibit B-1
9D GMAC-RFC
Page 9D.6
11/21/05
Client Guide
Funding Requirements
and Wire Instructions
The Client must respond to any requests for payoff figures prior to the Effective Date of
Transfer. If the Effective Date of Transfer precedes the anticipated payoff date, refer the
requestor to the Designated Servicer to obtain the quoted payoff figures. Payoff funds
received by the Client after the Effective Date of Transfer must be wire transferred to the
Designated Servicer within one Business Day of receipt of such funds. If these funds are not
wired to the Designated Servicer within one Business Day of their receipt, the Client will be
assessed accrued daily interest for each day thereafter.
(B) Payoff/Liquidation
In addition to the wire transfer to GMAC-RFC Loan Accounting as stated above, if Client is
required to repay the Premium pursuant to the Premium Recapture Section of Chapter 2A
then Client must wire funds within five days of demand to GMAC-RFCs Client
Correspondence Segment, Collection Unit:
Residential Funding Corp.
DDA #5573416 (GMAC-RFC Premium Account)
Bank One, National Association;
Chicago, IL
ABA # 071000013
Client ID number and name
GMAC-RFC Loan number
Reason: Payoff
D905
Failure to Comply with GMAC-RFC Remittance Requirements
Should the Client fail to comply with the remittance procedures, the Client will be assessed a
cash adjustment for late remittance based on the amount of the late remittance. The Client
acknowledges that the damage GMAC-RFC suffers as a result of a late remittance cannot be
quantified in advance and that the cash adjustment for late remittance constitutes liquidated
damages for the Clients breach of its obligation to make timely remittances. The cash
adjustment for late remittance is in addition to other remedies available to GMAC-RFC.
The cash adjustment for late remittance of all amounts due GMAC-RFC will be calculated
using the highest quoted Prime Rate printed on the first Business Day of each month in
The Wall Street Journal in its regular column entitled Money Rates plus 3%. This adjustment
changes automatically on publication of a different Prime Rate on the first Business Day of a
subsequent month. If the Prime Rate is not published, the adjustment will be determined by
GMAC-RFC.
The amount of the cash adjustment is determined by the amount of the overdue remittance
and the number of days the remittance is late, based on a 365-day year. The amount of the
cash adjustment for late remittance shall be equal to the greater of: (i) $100; or (ii) the
amount of interest that would accrue on such overdue remittance at the rate provided in the
immediately preceding paragraph from and including the date it became overdue until it is
paid in full.
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Exhibit B-1
GMAC-RFC
Page 9E.1
11/21/05
Client Guide
Final Documents
9E
Final Documents
This Chapter describes the process for Client to submit Final Documents for a Loan.
Questions regarding the terms of this Chapter may be addressed by calling 800.814.8842.
E900
Submission of Final Documents
All Final Documents, as well as any transmittals or other communications from Client to
GMAC-RFC regarding a Loan that has been funded, must clearly show the GMAC-RFC Loan
number. The GMAC-RFC Loan number can be found on the purchase advice and/or via the
GMAC-RFC Lender Portal.
Final Documents include:
Original recorded Security Instrument and any required addenda or riders
Original recorded intervening assignments, including any intervening assignments to
MERS (if applicable)
Title Insurance Policy: For all Loans that must be delivered with a Title Insurance
Policy, Client must submit (except as set forth below) the original title insurance policy
or a duplicate original signed (or counter signed) by the issuing title insurance
company, which original must include Schedules A and B, and all applicable conditions
and stipulations or comparable information. Electronic Verification is acceptable. In
the case of Loans secured by Mortgaged Premises in the State of Iowa, Client must
submit an attorneys certificate of title in lieu of a title insurance policy.
Original Recorded Consolidation, Extension, and Modification Agreement (if applicable)
Original Recorded Modification Agreement (if applicable)
Original Recorded UCC1/UCC3 (if applicable)
Any other original recorded documents specific to the property type (e.g., condos, coops) and/or applicable to lien perfection
If the jurisdiction retains the original recorded Security Instrument or assignment,
GMAC-RFC will accept a county certified copy, provided it contains an original
certification by the judicial or other governmental authority of the jurisdiction where
the Security Instrument was recorded.
All Final Documents pertaining to an individual Loan must be submitted in one submission
to GMAC-RFC within 120 days from the Funding Date.
In the event a Final Document is returned to Client for correction, the Final Document must
be corrected and returned to GMAC-RFC within ten Business Days.
GMAC-RFC may, at its sole discretion, require repurchase and/or charge penalty fees for late
submission of acceptable Final Documents.
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Client Guide
Final Documents
Extensions of the 120-day Final Document submission period generally are not granted.
GMAC-RFC recognizes, however, that exceptional circumstances may warrant an extension.
In these cases, Client must submit, within the 120-day period, a letter listing the documents
that cannot be delivered, the reason for delay and the estimated date on which the Final
Documents will be submitted. All available Final Documents must accompany the letter.
GMAC-RFC will decide, in its sole discretion, whether the circumstances warrant an extension
and the length of any extensions granted.
Client must NOT submit Abstracts and Certificates of Title to GMAC-RFC. Final Documents
must be submitted to:
GMAC-RFC
One Meridian Crossings
Suite 100
MC 03-03-40
Minneapolis, MN 55423
Attention: Final Document Intake Department
If a Loan pays in full prior to 120 days from the Funding Date, Client must also provide
GMAC-RFC with sufficient information/documentation to meet State guidelines for filing of
the satisfaction.
E901
Review and Acceptance of Final Documents
If any of Clients tendered Final Documents do not comply with this Client Guide, GMACRFC may demand by written communication that corrections or substitutions be made within
ten Business Days from the date of the GMAC-RFC demand for correction or substitution.
If any of Clients tendered Final Documents do not comply with this Client Guide or fail to
meet the terms of the Commitment, GMAC-RFC may require, by making demand via
written communication, that Client provide corrections or additional Final Documents. Client
shall respond with the corrected or additional Final Documents within ten Business Days of
GMAC-RFCs demand, or under exceptional circumstances may request a further extension
by written request, detailing the reason for delay and the estimated date on which the
corrected or additional Final Documents will be submitted. GMAC-RFC will decide, in its sole
discretion, whether the circumstances warrant an extension and the length of any extensions
granted. If additional time is given, Client may be assessed an additional fee.
Clients failure to comply with GMAC-RFCs demand for corrected or addition Final Documents
may give GMAC-RFC the right to demand Client to repurchase the Loan per the terms of this
Client Guide.
E902
Further Assurance Documents
GMAC-RFC reserves the right to require delivery of further Final Documents over and
above the standard Final Document set as set forth in Chapter 2A, Representations,
Warranties and Covenants of this Client Guide (the Further Assurance Documents). Demands
for Further Assurance Documents may, to the extent described and/or allowed under
Chapter 2A, be made after GMAC-RFC has accepted the Final Documents. Client must
provide the requested Further Assurance Documents within 15 days of GMAC-RFCs sending
of written communication. Clients failure to comply with GMAC-RFCs demand for Further
Assurance Documents may give GMAC-RFC the right to demand Client to repurchase the
Loan per the terms of this Client Guide.
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Definitions
10
Definitions
The terms defined below shall have the same meaning throughout this Client Guide, unless the
context clearly requires otherwise.
Accrued and Unpaid GMAC-RFC Scheduled Interest
At any time and with respect to any Loan, all interest that has accrued on the Scheduled
Principal Balance of such Loan at the rate provided for in the Note evidencing such Loan net of
the primary Servicing Fee and that has not been paid to GMAC-RFC by the primary Servicer
for such Loan.
Acquisition Team
GMAC-RFC
One Meridian Crossings
Suite 100
Minneapolis, MN 55423
Attention: [Assigned] Acquisition Team
Adjustment Period
The time during which an ARM interest rate remains effective. After the initial Adjustment Period,
the interest rate may not change more than once in a set period of time (i.e., 6 months, 12
months) based on the movement of the index.
Affiliate
Any person or entity controlling, controlled by or under common control with GMAC-RFC.
Control means the power to direct the management and policies of a person or entity, directly
or indirectly, whether through ownership of voting securities, by contract or otherwise; and
controlling and controlled shall have meanings correlative to the foregoing.
ALTA
American Land Title Association
1828 L Street NW, Suite 705
Washington, DC 20036
800.787.ALTA
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Definitions
Alternative Delivery
A process that provides Client with non-standard procedures and delivery requirements, as
described in the Alternative Delivery Section of Chapter 9C.
Ancillary Income
Servicing income derived from any Loan other than Servicing Fees, including, without
limitation, late charges and other incidental fees and fees or expense reimbursements relating to
insurance.
Automated Valuation Model (AVM)
A model using at least one of the two following methodologies to arrive at a determination of
Value for real property without the use of, or with limited intervention by a human appraiser.
Index or repeat sales model: A mathematical model that derives an estimate of current market
Value by taking an old Value from a previous sale or refinance and applying a market rate of
change to reflect a present day Value. The market rate of change percentage is derived from
looking at repeat sales within a limited geographic area (i.e., 5-digit zip); by property type (e.g.,
condominium, single family detached, 2-4 unit); and often within price bands (e.g., <50% of
median price, 50-100% of median, 100 - 150% of median, and >150% of median), for the same
period as the subject property.
Hedonic or regression models: Also referred to as comparable sales models, these models derive
an estimate of current market Value by analyzing the various characteristics of like properties
(e.g., square footage, lot size, number of bedrooms). The model then determines the impact
that each characteristic has on Value by looking at the characteristics of recent sales within a
limited geographic area (i.e., 5-digit zip) and determining an appropriate formula. By applying
the characteristics of the subject property to this formula, a current Value can be derived.
Best Efforts Delivery Commitment
A Commitment under which Client has committed that it shall make best efforts to close on an
eligible-for-purchase Loan, which conforms to the Loan described in the Commitment, and that if
Client does so then Client shall deliver the Loan to GMAC-RFC.
Borrower
The one or more individuals obligated to repay the Loan. (Also see Primary Borrower.)
Business Day
Any day other than a Saturday, Sunday or any of the holidays upon which GMAC-RFC is officially
closed for business, as set forth in the Hours of Operation and Holidays Section of Chapter 1.
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Definitions
Buyups
An increase of the posted Margin/yield by the Client that may result in an increase in the
origination fee.
Buyout Fee
A fee that Client owes GMAC-RFC as a result of Clients failure to meet Clients delivery
obligations in a timely manner under a Commitment.
Cash-Out Refinance Mortgage
A Loan whose proceeds are distributed for debt consolidation, cash-in-hand, payoff of
non-seasoned closed-end subordinate mortgages and payoff of Lines of Credit with cash
advances in the past 12 months.
Client
A person or entity that has entered into a Client Contract with GMAC-RFC.
Client Eligibility
In order to become a Client, a mortgage Loan originator must:
Satisfy the GMAC-RFC Client Eligibility Standards
Have its completed Client Application approved by GMAC-RFC
Enter into the Client Contract
Deliver a certified Resolution of Boards of Directors to GMAC-RFC
Client Risk Management
GMAC-RFC
8400 Normandale Lake Blvd.
Suite 600
Minneapolis, MN 55437
Attention: Client Risk Management
CLTA
California Land Title Association
1110 K Street, Suite 100
Sacramento, CA 95814
916.444.2647
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Definitions
Commitment
A Best Efforts or Mandatory Delivery Commitment obtained by the Client from GMAC-RFC for
delivery of Loans as described in Chapter 9A, Commitments.
Commitment Confirmation
GMAC-RFCs written communication to the Client confirming that GMAC-RFC has accepted
Clients Commitment and additional terms and conditions applicable to GMAC-RFCs potential
purchase of the Loan under such Commitment as described in the Commitment Confirmation
Section of Chapter 9A.
Commitment Period
The period of time for any particular Commitment during which Client has committed to deliver
an eligible-for-purchase Loan which conforms to the Loan described in the Commitment.
Condo-Hotel
(Condotel)
A project that has a rental or registration desk, short-term occupancy, food and telephone
services and daily cleaning services. It is operated as a commercial hotel even though the units
are individually owned. See Condo-Hotels Section in Chapter 3D, Property Types and
Considerations.
Credit Documents
A subset of the Loan Documents, as described in the Funding Documents Section of Chapter
9C.
Credit Limit
The maximum aggregate principal amount of advances allowed to be outstanding under the
terms of the Agreement (as defined below).
Credit Score
Also known as the FICO Score, Beacon or Empirica an index assessing the Borrowers
credit history. The Credit Score evaluates and considers only the information in a Borrower's file
at a credit reporting agency. As an index, the score reflects the relative risk of serious
Delinquency, default, foreclosure or bankruptcy associated with a Borrower. A Credit Score is
available (as an enhancement to the credit report) through the following repositories:
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Definitions
GMAC-RFC
Beacon
Empirica
FICO
Debt-to-Income Ratio
(DTI)
All of the Borrowers applicable monthly debt divided by the Borrower's monthly income, as
detailed in the Total Debt-to-Income Ratios Section of Chapter 4B, Liabilities & Debt Ratios.
Delinquency
Delinquency occurs when all or part of the Borrowers monthly installment of principal, interest
and, where applicable, Escrow/Impound is unpaid after the due date. A Delinquency that
remains uncured as of the close of business of the last Business Day before the next due date
is considered a one-payment or 30-day Delinquency.
Delivery Commitment Number
The number that is assigned to each Delivery Commitment at the time an individual Delivery
Commitment is ordered.
Delivery Date
The date on which GMAC-RFC actually receives the Clients Funding Documents. The posting of
the Funding Documents with the U.S. Postal Service or any other delivery service does not
constitute delivery to GMAC-RFC.
Demand Deposit Account
A deposit account from which funds may be withdrawn by the Servicer/depositor immediately
and without advance notice of intended withdrawal.
Designated Servicer
A person or entity that has been designated by GMAC-RFC to service any Loan with respect to
which GMAC-RFC purchases the Servicing Rights.
Discontinued Loan
A Discontinued Loan is a Loan that meets any of the criteria set out in the Responsible
Lending Representations, Warranties and Covenants Section of Chapter 2A.
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Definitions
Draw Period
The time during the Loan term that the Borrower may request advances and will be required to
make minimum monthly payments on the outstanding principal balance of the Home Equity
Loan. The minimum monthly payment may not fully repay the principal at the end of the Draw
Period. At the end of the Draw Period the Borrower will be required to repay the outstanding
principal balance plus any accrued interest in monthly installments over the repayment period.
Early Scheduled Transfer
The Simultaneous Sale of Servicing with the Sale Date being the date on which the purchase
price of the Loan is funded, and the Effective Date of Transfer being the first day of the month
following the Sale Date.
Effective Date of Transfer
The date on which the responsibility for the servicing of a mortgage Loan is assumed by the
Designated Servicer and responsibility for the servicing representations, warranties and duties
are transferred to the Designated Servicer. In the case of negotiated Bulk Servicing Acquisition
of Servicing Rights, the Effective Date of Transfer shall be the date agreed upon by the Client
and GMAC-RFC. In the case of any sale of Servicing Rights to GMAC-RFC on a Loan-by-Loan
basis, the Effective Date of Transfer:
For a Simultaneous Sale of Servicing is the first day of the second month following the
Sale Date
For an Early Scheduled Transfer, in which case the Effective Date of transfer is the first
day of the month following the Sale Date
For a Post Purchase Sale of Servicing and an Early Purchase of Servicing, is the first
day of the month following the Sale Date
Electronic Verification
A computer-generated document downloaded and printed from the Internet, intranet or included
in an email message that provides all the information contained in the original hard-copy form.
The Electronic Verification must be readable by an image scanner and must be printed and
included in the Loan file. The Borrower may provide the Electronic Verification to Client or Client
may obtain it directly from the employer, depository, appraiser or other institution.
Escrow/Impound
All funds collected by the Client and/or Servicer to cover expenses of the Borrower required to
be paid under the Security Instrument, including, but not limited to, taxes, special
assessments, ground rents, water, sewer and other governmental impositions or charges that
are or may become liens on the Mortgaged Premises prior to that of the Loan, as well as
hazard, flood and mortgage insurance premiums.
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Definitions
Event of Default
The events specified in the Events of Default Section of Chapter 2A.
Exclusionary List
The list by this name, published by GMAC-RFC at GMACResidentialFunding.com, and updated
from time to time.
FDIC
The Federal Deposit Insurance Corporation.
Factory-built Homes
Many types of housing structures are constructed right in the factory and are designed for longterm residential use. There are five categories of Factory-built Homes which include:
Manufactured Home, Modular Home, Mobile Home, Panelized Home and Pre-cut Home
and each are defined individually in this Chapter.
Fannie Mae
The Federal National Mortgage Association.
Fee Simple
The greatest possible interest a person can have in real estate including the right to dispose of
the property or pass it on to ones heirs.
Final Documents
The documents required by the Submission of Final Documents Section of Chapter 9E.
First Interest Rate Cap
A predetermined upper limit (or cap) established for the Borrowers first interest rate change
date.
Freddie Mac
The Federal Home Loan Mortgage Corporation.
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Frozen Credit
In certain circumstances, a Borrower has the right to freeze their credit information at one or
more of the three national repositories, prohibiting a third party gaining access to their credit
information.
Funding Amount
The funds wire transferred to the Client on the Funding Date in payment for any Loan and
Servicing (if applicable) sold by the Client to GMAC-RFC.
Funding Date
The date the Funding Amount is wire transferred to the Client in payment for any Loan and
Servicing (if applicable) sold by the Client to GMAC-RFC.
Funding Documents
The documents required by the Funding Documents Section of Chapter 9C.
Ginnie Mae
The Government National Mortgage Association.
GMAC-RFC
A Delaware corporation, its successors and assigns or such other name in which Residential
Funding Corporation (GMAC-RFC) may do business in any State. References to GMAC-RFC in this
Client Guide shall also be deemed to include, as appropriate in connection with the issuance of
one or more securities relating to Loans or as otherwise appropriate, an Affiliate of GMAC-RFC,
a master Servicer, custodian or trustee and/or any other person or entity that:
Is put in place by GMAC-RFC in connection with the issuance of securities relating to Loans
or other disposition of all or part of the rights and duties of GMAC-RFC under the Client/
Servicer Contract, this Client Guide and/or the Servicer Guide
May become obligated to render performance to, or entitled to receive performance from,
a Client or a Servicer OR
Is an assignee or pledgee of all or part of the interest by GMAC-RFC in one or more Loans
resulting from issuing securities
GMAC-RFC may designate others, including but not limited to its attorneys, auditors and
consultants, to perform any of its duties or exercise any of its rights under this Client Guide or
the Servicer Guide. GMAC-RFC reserves the right to require the Client to deliver Loans, and the
Servicer to deliver remittances and reports directly to its designee.
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Definitions
Minimum Advance - the smallest amount of money to be advanced to the Borrower at the time
of any draw on a Home Equity Line.
Insured Depository
A depository institution whose deposits are insured either by the FDIC or the NCUSIF.
Institutional VOR
Direct written verification of 12 month rental history from a property management company may
be provided if management company is listed in the local telephone directory. Verification that
property management company exists can be obtained through a reverse telephone directory
look up or can be verified with a business entity verification. File must contain a copy of the
listing, reverse look up, or business entity verification. If the listing, reverse look up, or business
entity verification is not available, 12 month cancelled checks must be provided.
Interest Rate/Payment Adjustment
Adjustments that occur when the interest rate changes, the outstanding principal balance must
be re-amortized over the remaining term of the Loan at the new interest rate. The new principal
and interest payment will be calculated to repay the Loan over its remaining term.
Intermittent Lates
A pattern of late payments that is not consecutive, but is broken into intervals. For example, a
mortgage rating with a three-month history reflecting the following is considered 2x30 for
grading purposes:
First Month:
Second Month:
Third Month:
30-day Delinquency
Current
30-day Delinquency
Land-to-Value
The ratio that results when the lot Value indicated on the appraisal report is divided by the Value
of the Mortgaged Premises.
Leasehold
An estate or interest in real property held by virtue of a lease.
Legal Documents
A subset of the Loan Documents, as described in the Funding Documents Section of Chapter
9C.
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Definitions
Lifetime Cap
The maximum interest rate increase or decrease over the term of the Loan.
Lifetime Floor
The lowest interest rate that could be in effect over the term of the Loan.
Lis Pendens
A notice of public record indicating that the property is in litigation and in danger of an adverse
judgment.
Loan
A Loan sold or intended to be sold by the Client to GMAC-RFC and that meets or is intended to
meet all the requirements of this Client Guide. The term Loan includes all of the Clients rights,
title and interest in and to the Loan, including but not limited to the Loan Documents, the Loan
file and all other material and information collected by the Client in connection with the Loan.
Loan Accounting Department
GMAC-RFC
2255 North Ontario Street, Suite 400
Burbank, CA 91504-3120
Attention: Loan Accounting Department
Loan Documents
Includes originals and copies of the appraisal, the Security Instrument, the Note and all other
documents described in the Client Guide.
Loan Program
Any one or more of the Loan Programs pursuant to which a Client may sell Loans in accordance
with this Client Guide. The Loan Programs are described in Chapter 6, Loan Programs, and
includes both standard and non-standard Loan Programs.
Loan-to-Value
The ratio that results when the Loan amount is divided by the Value of the Mortgaged
Premises. The Combined Loan-to-Value (CLTV) is the ratio of the Loan plus any Secondary
Financing divided by the Value of the Mortgaged Premises.
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Definitions
Mortgage Insurer
A provider of mortgage insurance that has been approved by GMAC-RFC as listed on GMAC-RFC
Exhibit 1304.
Mortgaged Premises
The land and improvements thereon subject to the lien of the Security Instrument.
Non-Standard Documents
Any documents evidencing or securing a Loan that are not Uniform Instruments.
Note
The applicable form of instrument evidencing the Loan as required under this Client Guide,
including any addenda thereto.
Panelized Home
Panelized Homes are defined as homes where panels (flat units that represent a whole wall with
windows, doors, wiring and outside siding) are constructed in the factory and then transported
to the site and assembled. Panelized Homes are constructed to the State, local or regional
building codes of where the home will be located.
Party Wall
A wall built along the boundary line of adjoining properties and shared by the respective
property owners or tenants.
Payment Change Date
The first day of the month following an interest rate change date. It is the date on which a
payment change, due to an interest rate change, becomes effective.
Periodic Cap
The maximum interest rate increase or decrease at each interest rate Adjustment Period.
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Primary Borrower
If more than one person is obligated to repay the Loan, the Primary Borrower is considered to be
the individual with the highest income. Except for Stated Income, No Ratio, or No Income No
Asset Loans, the Credit Score of the Primary Borrower is used for grading purposes.
Prime Rate
The highest base commercial rate on corporate Loans at large U.S. money center commercial
banks that The Wall Street Journal publishes as the Prime Rate.
Program Criteria
Also known as Home Equity Program Criteria shall mean GMAC-RFCs Home Equity Loan
requirements as described in the Underwriting, Loan Eligibility and Loan Program Chapters of
this Client Guide.
Progressive Cumulative Lates
Delinquencies that increase in severity. The most severe Delinquency reached is considered
one event. For example, a mortgage rating with a three-month history with a 30, 60, 90 day
Delinquency is considered 1x90 for grading purposes.
Property Data
Includes but is not limited to prior sale price, prior Sale Date, prior appraised Value, prior
appraised date, lot size, year built, property type or any other Property Data and/or
characteristics.
Purchase Date
The date GMAC-RFC approves the Home Equity Loan for purchase and funds the purchase price
for such Home Equity Loan to the Client. The Purchase Date for each Home Equity Loan shall
also be deemed to be the Funding Date for that Home Equity Loan, as that term is used in
other Sections of this Client Guide.
Qualified AVM
A report of property valuation issued under an Automated Valuation Model (AVM), where
such valuation report has been ordered from a Qualified AVM Vendor (as specified in GMAC-RFC
Exhibit 16G05, Automated Value Model (AVM) Approved Vendors, using the vendors GMACRFC Qualified AVM system, and the report of valuation has been given the GMAC-RFC Qualified
AVM seal as may be determined through methods and systems issued at GMAC-RFCs sole
discretion.
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Definitions
Rural Property
If any one of the following criteria exists, the property will be classified as rural:
Appraiser classifies the property as rural
Less than 25% of the surrounding market area is developed
If at least 50% of the acceptable comparable properties are not within five miles of the
subject property, unless the appraiser provides sufficient justification for the distance of
the comparables and clarifies that the property is not rural in nature
See specific Loan Programs for acreage limitations.
Sale Date
In the case of any Bulk Servicing Acquisition of Servicing Rights, the Sale Date shall be the
date agreed upon by the Client and GMAC-RFC as the date that title to the Servicing Rights is
transferred to GMAC-RFC. In the case of Simultaneous Sales of Servicing and an Early
Scheduled Transfer and actual balance sale of servicing to GMAC-RFC on a Loan-by-Loan
basis, the Sale Date shall be the date on which the purchase price of the Loan is funded. In the
case of any Post Purchase Sales of Servicing, on a Loan-by-Loan basis, the Sale Date shall be the
date stated in the Statement of Servicing Sold as being the Sale Date for such Servicing Rights.
Scheduled Principal Balance
At any time and with respect to any Loan, the original principal amount of such Loan at the time
it was purchased by GMAC-RFC less that portion of any cash payments received by GMAC-RFC
from the primary Servicer for such Loan that is to be applied toward the reduction of the
outstanding principal balance of the Loan.
Second Mortgage Program
When seen with initial capitalization, refers to all GMAC-RFC Second Mortgage Loan Programs,
i.e., Home Equity Goal Loan, Home Equity Goal Line and 125 CLTV Programs.
Secondary Financing
Any type of indebtedness (including, but not limited to, any indebtedness arising from a Loan,
judgment or unpaid taxes) secured in whole or in part by a lien upon the Mortgaged Premises
regardless of whether the mortgage, deed of trust or other Security Instrument creating or
evidencing that lien was of record in the appropriate real property records on the Funding Date
or Delivery Date.
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Servicing Fee
For fixed-rate Loans, that percentage is the difference between the Note rate and the yield to
GMAC-RFC. For ARM Loans that percentage is the least of the following:
The difference between the interest rate at the time of purchase of the Loan and the initial
net rate to GMAC-RFC
The difference between the gross Margin and the net Margin to GMAC-RFC
The difference between the maximum allowable interest rate (life cap) on the Note and the
maximum net rate (life cap) due GMAC-RFC
Servicing Package
A funding Servicing Package must include the following documents:
Current hazard insurance policy or binder
Flood certification
Flood insurance policy or binder, if applicable
Life-of-Loan flood zone determination contract (unless GMAC-RFC sets up the contract).
HUD-1
Initial Escrow Account Disclosure Statement, if applicable
Tax information sheet, if applicable
Mortgage insurance certificate, if applicable
Temporary Buydown agreement, if applicable
Notice of ARM adjustments, if applicable
Servicing Released Premium (SRP)
A one-time premium paid to the Client for the Servicing Rights on a mortgage Loan.
Servicing Rights
With respect to each sale and transfer of Servicing Rights, the right, title and interest in and to
the non-recourse servicing of any Loan and the maintenance and Servicing Fee income and any
and all Ancillary Income arising from or in connection with any Loan.
Simultaneous Transactions
The Home Equity Loan is closed at the same time as a first mortgage Loan transaction.
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Client Guide
Definitions
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Exhibit B-1
10 GMAC-RFC
Page 10.22
3/13/06
Client Guide
Definitions
Title Vesting
The manner in which the Borrower takes title to the subject property. Types of Title Vesting are:
individual, joint tenants, tenants in common and living trusts.
Individual: an individual Borrower taking sole ownership (title) to a property
Joint Tenants: a form of co-ownership giving each tenant equal interest and equal rights in
a property, including the right of survivorship
Tenants in Common: a form of individual ownership interest by two or more persons that
provides for no right of survivorship. The interest need not be of equal percentage
Living Trust: See definition in Chapter 3, Loan Eligibility
U.S. Possession or Territory
American Samoa, Guam, Marshall Islands, Federated States of Micronesia, Northern Marianas,
Palau, Puerto Rico, U.S. Virgin Islands.
Uniform Instruments
The standard forms of Loan Documents most recently prepared and released by GMAC-RFC,
Fannie Mae or Freddie Mac for use in evidencing or securing residential mortgage Loans.
Value
The Value of the Mortgaged Premises may be defined differently depending upon the type of
financing, the length of time the property has been owned by the Borrower and the location of
the Mortgaged Premises as established in the Calculating Loan-to-Value Ratios Section of
Chapter 3C, Financing.
Yield/Price Variance
Yield/Price Variances may apply for special features, Loan characteristics or other options as
offered under this Client Guide.
Yield/Price Variances are posted on GMAC-RFCs Internet Portal at GMACResidentialFunding.com
and are subject to change.
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GMAC-RFC
Exhibit B-1
Page 11.1
03/13/06
Client Guide
Forms
11
Forms & Exhibits
The Client must use the current version of GMAC-RFC forms prescribed by this Client Guide.
When GMAC-RFC changes any forms or exhibits, the Client must use the new version. Below
is a list of required GMAC-RFC forms and exhibits. To print GMAC-RFC forms and exhibits in
your office, logon to our web site at GMACResidentialFunding.com. Enter the Client Guide
and open Chapter 11, Forms & Exhibits. Additionally, the Client is required to use the current
version of Fannie Mae/Freddie Mac forms where applicable.
1100
GMAC-RFC Forms & Exhibits
Form
Title
Updated
01/01/01
01/01/01
04/01/03
01/01/04
01/01/01
11/21/05
01/01/05
04/01/05
04/01/04
01/01/01
01/01/01
01/01/01
01/01/01
11/21/05
03/13/06
03/13/06
04/01/03
01/01/01
01/01/03
01/01/04
01/01/01
07/22/05
03/13/06
01/01/05
07/22/05
01/01/01
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11
Page 11.2
Exhibit B-1
GMAC-RFC
03/13/06
Client Guide
Forms
Form
Title
Updated
01/01/01
01/01/01
07/01/04
03/13/06
Designated Servicer Directory, Home Equity Goal Loan & 125 CLTV
03/13/06
01/01/01
01/01/01
07/01/04
01/01/05
03/13/06
07/22/05
03/13/06
01/01/01
Loan Registration
03/13/06
03/13/06
04/01/03
04/01/05
04/01/05
01/01/01
01/01/01
04/01/04
01/01/03
01/01/03
07/22/05
Payoff/Liquidation Report
07/22/05
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Exhibit B-1
1200
Client Number
Dates covered by this report (if different from fiscal year end)
Corporation
Partnership
Proprietorship
Limited Partnership
Freddie Mac
$ ________________________________
$ ________________________________
Has there been a change in ownership in the past 12 months?
No
Section B: Total Home Mortgage Originations for the fiscal year being reported
Indicate not applicable where appropriate.
1
Home Mortgages
Origination
Home Mortgages
Originations
FHA/VA
ARM 5 YR
CONV FR
GPM/ARM
ARM 1 YR
Other
ARM 3 YR
2nd Mortgages
Subtotal Column 2
Subtotal Column 4
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Filed 02/04/15
Exhibit B-1
Pg 535 of
649 Insurance
Section C. Fidelity and Mortgagees Errors and Omissions
(E&O)
Fidelity
Was insurance policy in effect as of fiscal year end?
Mortgagees E&O
Yes
No, explanation attached
Yes
No, explanation attached
Name of insurer . . . . . . . . . . . . . . . . .
Policy number . . . . . . . . . . . . . . . . . .
Amount of coverage..............$
Amount of deductible . . . . . . . . . . . . .$
The information contained in this Annual Client Certification report (including the compliance statement, the auditors
statement, and all attachments) is true to the best of my knowledge and belief. I understand that any misrepresentation
constitutes cause for suspension or disqualification to sell to and/or service mortgages for GMAC-RFC and may be cause
for GMAC-RFC to exercise any other remedies available.
Signature of Clients Chief Executive Officer or Chief Financial Officer
Date
Telephone Number
The Annual Client Certification report must be completed as of the fiscal year end for each institution to maintain approval as a
GMAC-RFC Client. The complete report must be submitted within 90 days after the institutions fiscal year end to the GMAC-RFC
Corporate Quality and Planning Department in Minneapolis.
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Exhibit B-1
1201
Servicer ID#
Client Name
Servicer Name
Repurchase Date
Borrower Name
Loan Status
5. Sold - Pool # ______________
7. REO
Yes
For questions regarding the repurchase price, contact Portfolio Risk at 952.806.0536
A. Last period ending unpaid principal balance
$________________________________
$________________________________
Note: If Loan was reported current at last accounting cut-off, use following calculation:
__________________
Last period end. UPB
_____________
GMAC-RFC Yield rate/365
X _____________days
# days from 1st of activity month
up to activity date
Note: If Loan was reported delinquent at last accounting cut-off, use following calculation:
__________________
Last period end. UPB
__________________
Last period end. UPB
______________
GMAC-RFC Yield rate/12
Plus
______________
GMAC-RFC Yield rate/12
X _____________days
Activity Mo. minus last LPI date
reported
X _____________days
from 1st of activity month up to
date
C. Miscellaneous Fees
a. Funding (Discount)/Premiums (unsold Loans only) ________%
$_______________
b. Buyout Fees
$_______________
$_______________
d. Other: ________________________________
$_______________
Total Fees
$________________________________
$________________________________
$________________________________
Fax:
GMAC-RFC
Payoff Department
2255 North Ontario Street, Suite 400
Burbank, CA 91504-3120
818.260.1800
Note: Loan Documents will be retrieved from the custodian and the servicer (if applicable) and prepared for release upon
receipt of the wire and this form.
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Return Loan Documents To:
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Exhibit B-1
___________________________________________________________________________________________________________________
Contact
___________________________________________________________________________________________________________________
Address
___________________________________________________________________________________________________________________
City
State
ZIP Code
___________________________________________________________________________________________________________________
Telephone Number
Prepared by: ________________________________________________Telephone Number: ________________________________________
Authorized Signature: _________________________________________Title: __________________________________________________
Mainframe Input___________________________________
Pool #__________________________________________
Amount Received___________________________________
Status:
Servicing Acquisition_______________________________
REO____________________________________________
Sold
Unsold
$____________________
$____________________
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Exhibit B-1
1204
[Full legal name of the SELLER] (the Seller), a [State of Incorp.], corporation through the duly authorized
representative whose signature appears below makes and appoints and by this Limited Power of Attorney does make,
constitute and appoint Residential Funding Corporation (hereinafter referred to as GMAC-RFC), a Delaware
corporation, whose address is 8400 Normandale Lake Blvd., Suite 250, Bloomington, MN 55437, the true and lawful
attorney-in-fact for the SELLER; and in the SELLERs name and stead to execute, by the signature of any authorized
GMAC-RFC employee or agent, any and all documents for the purpose of assigning and transferring to GMAC-RFC any
and all mortgages, deeds of trust, Security Instruments, and the related notes, including, but not limited to the assignments
of mortgages, deeds of trust, and Security Instruments; the Note endorsements, affidavit and agreements, for any mortgage
Loan transaction closed and funded in the SELLER's name or transferred and assigned to Seller and committed to GMACRFC by SELLER under the Client Contract(s) between the SELLER and GMAC-RFC [dated
________________________, 20______ and ____________, 20___](the Client Contract(s)); giving and granting unto
the said attorney-in-fact full power and authority to do and perform all and every act and thing whatsoever requisite and
necessary to be done, and to make, correct, amend, endorse, accept, or deliver all agreements and instruments; as fully, to
all intents and purposes, as the SELLER might or could do if present at the doing thereof through one of its authorized
representatives, with full power of substitution and revocation. The Seller hereby ratifies and confirms all that the said
attorney-in-fact shall lawfully do or cause to be done by virtue of this Limited Power of Attorney.
The SELLER may only revoke this Limited Power of Attorney in writing and only upon the expiration of one hundred
eighty (180) days from the effective date of the Client Contract's termination in accordance with the Client Contract's
terms, and this Limited Power of Attorney shall be deemed to be a power coupled with an interest for such purpose.
IN TESTIMONY WHEREOF, I have hereto set my hand and seal this _______ day of _________________, 20___.
SELLER: __________________________________________________________
(Full legal name of SELLER entity and, if applicable, full name of any and all d/b/a entities)
BY:
__________________________________________________________
(Signature of authorized officer of SELLER)
__________________________________________________________
(Printed name of authorized officer)
__________________________________________________________
(Title of authorized officer)
ACKNOWLEDGMENT/CORPORATE
STATE OF ____________________)
)ss
COUNTY OF__________________)
On this ________ day of ______________________, 20____, before me appeared _______________________, to me
personally known, who, being by me duly sworn, did say that (s)he resides at __________________________________,
that (s)he is the ____________________________ of ______________________________________________________,
a _________________________________________ corporation, the corporation described in and which executed the
foregoing instrument, and that (s)he signed his/her name thereto by order of the Board of Directors of such corporation.
[Stamp]
_____________________________________________________
Notary Public
My Commission Expires:_________________________________
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________________________
GMAC-RFC
________________________
________________________
Exhibit B-1
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Exhibit B-1
1205
The form to be completed for name changes, mergers, acquisitions, stock sale, creation of new entity or asset sale as applicable to
either the GMAC-RFC Client and/or Clients parent company.
If you have undergone or are in the process of any of the changes listed above, please complete this form and submit along with the
supporting documentation to GMAC-RFC, One Meridian Crossings, Suite 100, Minneapolis, MN 55423, Attention: Seller Risk
Management, FAX: 952.979.2592.
3. Has your institution type changed? If yes, what is your new institution type?
________ FSA/FSB or State bank________ Corporation
________ Subsidiary of FSA/FSB or State bank
________ National bank________ LLC
________ Subsidiary of national bank
________ State commercial bank
________ Other________ LP
Complete the following information for the resultant entity if different from information stated above.
Clients Structure information (type of entity):
Clients Legal Name:
Date Fiscal Year Ends:
Federal Tax ID Number:
Clients Address:
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Exhibit B-1
4. Changes and/or additions to major stockholders. Provide the names of all individuals and institutions.
Name:
Percentage of ownership:
Name:
Percentage of ownership:
Name:
Percentage of ownership:
7. Provide supporting documentation of changes that took place: Supporting documentation includes evidence of the
change (e.g., amendment to articles of incorporation, filed amended name change statement, certificate of merger)
GMAC-RFC may require additional documentation, depending on the nature of the Client change.
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Exhibit B-1
1301
Client ID Number
Client Name
Borrower Name
Client Address
Borrower Address
Mortgage Type
Note Rate
Loan Amount
Term
Bought Down
Amount
Monthly
Annual
Buydown
Interest
P&I Payment
Paid by
Assistance
Assistance
Period
Rate*
At Note Rate
Borrower
Payments
Payment
1-12
13-24
25-36
Year
(1)
(2)
(3)
Total ___________
Total amount of
Buydown Funds
*Payment increases may not exceed 7-1/2% annually or 1% interest rate equivalent.
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Exhibit B-1
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Exhibit B-1
1302
The following matrix applies to open-end lines of credit secured by both first and second liens; and closed end second
mortgage Loans.
An X indicates that the Loan Program is available in the referenced State, subject to any limitations specified in the
footnotes and in the rest of this Client Guide.
1st
Lien
LOC
X
Goal
Line
X
Goal
Loan
X
30/15
Balloon
X
125
CLTV
X
Alaska
Montana
Nebraska1
Nevada
Arizona2
Arkansas
California
New Hampshire
State
Alabama
State
Missouri
1st
Lien
LOC
X
Goal
Line
X
Goal
Loan
X
30/15
Balloon
X
125
CLTV
X
Colorado
New Jersey
Connecticut1
Delaware
New Mexico
New York6,8
Dist. of Col.
Florida1
North Carolina
North Dakota
X
X
Georgia
Ohio
Hawaii
Oklahoma
Idaho
Oregon
Illinois
Pennsylvania
Indiana
Rhode Island
South Carolina7
South Dakota
Tennessee4
X
X
Iowa
Kansas8
Kentucky1
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Texas1,5,8
Utah
Washington
West Virginia1,3,8
Wisconsin
Wyoming
X
X
X
X
X
X
X
X
X
X
Vermont
Virginia8
For all States: Discontinued Loans are not eligible under any GMAC-RFC mortgage Loan Program. Refer to
Discontinued Loan Section in Chapter 2A, Representations Warranties and Covenants (note the Statespecific and product-specific information.)
1 Use of credit cards is subject to restriction.
2 Arizona has a minimum balloon amount of $10,100.
3 West Virginia Loans are not eligible for some products, features, or criteria. See the West Virginia Loans
section and/or Loan Program Chapters.
4 Tennessee maximum Goal Loan/Goal Line term is 15 years.
8 Second Mortgages behind Payment Option and negatively amortizing first lien loans not allowed in the following
states: KS, NY, TX, VA, WV
The Client is responsible for assuring compliance with all restrictions and should not rely on this
Form. The restrictions in this Form are some, but not necessarily all, of the restrictions of this
type.
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Exhibit B-1
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Exhibit B-1
1303
1-4
5-8
>8
Warrantable Condominiums
This is to certify that we have reviewed the Condominium documents and other pertinent information
specified in Sections _________________ of the GMAC-RFC Client guide for the _____________________
(condominium name) project. We hereby warrant that the requirements for a Class __________________
Condominium as outlined in Sections _________________________ of the Client Guide are in compliance
without exception as to mortgages we offer to GMAC-RFC within said project.
This certification is in confirmation of, and not in lieu of, the GMAC-RFC Client Guide, Section
_____________________________ warranties and representations.
Date:
Name of Client:
By:
Name:
Title:
Name of Client:
By:
Name:
Title:
Non-Warrantable Condominiums
Condominium projects that are not Warrantable due to non-compliance with the classification criteria stated
in Section _______________ of the GMAC-RFC Client Guide. Clients are responsible for ensuring the
project is in compliance with additional requirements of GMAC-RFC including the form and amount of
insurance required as stated in Section _______________ of the Client Guide.
The following criteria are identified as non-warrantable as set forth in the GMAC-RFC Client Guide Section
_______________. All other criteria as set forth in Section _______________ of the Expanded Criteria
non-warrantable condominiums has been met.
Non-warrantable reason
Date:
Name of Client:
By:
Name:
Title:
Condo-Hotel
Is the subject a Condo-Hotel?
Yes
No
Condo Warranty Certification
GMAC-RFC Form 1303 (01/01/05)
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Exhibit B-1
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Exhibit B-1
1304
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Exhibit B-1
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Exhibit B-1
1305
Note and Security Instrument Form for Trustee Who is Not a Borrower
Signature: _____________________________________________
_________________________________ as Trustee of the _________________________________
Trust,
under Trust Agreement dated________________________________________, ________________
Note and Security Instrument Form for Individual Who is Both a Borrower and a Trustee
Signature: _____________________________________________
_________________________________ individually and as Trustee of the
___________________________
_________________________________ Trust, under Trust Agreement
dated________________________________________, ________________
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Exhibit B-1
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Exhibit B-1
1400
Identification
Loan #
Borrower
Lender
Lender Loan #
Lender Phone #
Spoke To
Title/Department
Principal Balance
Verified By
Title
Date Verified
Signature
Phone Number
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Exhibit B-1
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Exhibit B-1
1401
Adverse Action Reason Codes as they relate to the descriptive statement on the left.
TRW
Reason Statement
Amount owed on accounts is too high
Delinquency on accounts
Too few bank revolving accounts
Too many bank or national revolving accounts
Too many accounts with balances
Consumer finance accounts
Account payment history too new to rate
Too many inquiries last 12 months
Too many accounts opened las 12 months
Proportion of balances to Credit Limits is too high
on bank revolving or other revolving accounts
Amount owed on revolving accounts is too high
Length of revolving credit history is too short
Time since Delinquency too recent or unknown
Length of credit history too short
Lack of recent bank revolving information
Lack of recent revolving account information
No recent non-mortgage balance information
Number of accounts currently paid as agreed
Too few accounts currently paid as agreed
Time since derogatory public record or collection
Amount past due on accounts
Serious Delinquency, derogatory public record, or
collection filed
Too many bank or national revolving accounts with
balances
No recent revolving balances
Proportion of Loan balances to Loan amounts is too
high
Lack of recent installment Loan information
Date of last inquiry too recent
Time since most recent account opening is too short
Number of revolving accounts
Number of bank revolving or other revolving
accounts
Number of retail accounts
Number of established accounts
No recent bankcard balances2
Too few accounts with recent payment information
Payments due on accounts (for BEACON-BK only)
1 Minor rewording for clarity
New
01
02
03
04
05
06
07
08
09
10
Equifax
Canada
01
02
03
04
05
06
07
08
09
10
Tans
Union
Canada
01
02
N/A
N/A
N/A
N/A
07
N/A
09
10
L
M
N
O
P
Q
R
S
T
V
W
X
11
12
13
14
15
16
17
18
19
20
21
22
11
12
13
14
15
16
17
18
19
20
21
22
N/A
12
13
14
15
16
17
18
27
20
21
22
N/A
N/A
N/A
23
N/A
24
33
24
03
U
1
24
33
24
N/A
24
N/A
32
N/A
30
26*1
N/A
04
19
30
N/A
26*
Y
N/A
Z
N/A
N/A
32
N/A
30
26*1
N/A
N/A
29
30
261
N/A
N/A
N/A
30
N/A
N/A
N/A
28
N/A
31
N/A
N/A
282
292
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
28*
N/A
31*
N/A
27
28
N/A
31
36
N/A
N/A
N/A
N/A
N/A
Equifax
01
02
03
04
05
06
07
08
09
10
Tran
Union
01
02
N/A
N/A
05
06
07
08
09
10
Orig
A
B
C
D
E
F
G
H
J
K
11
12
13
14
15
16
17
18
19
20
21
22
11
12
13
14
15
16
17
18
19
20
21
22
23
2 Reason now appears in general score, was previously used only in an Industry Option
* Industry Option only
Reprinted with permission from Fair Isaac Company
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Exhibit B-1
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Exhibit B-1
1402
Identification
Loan #
Borrower Name
Employment History
Employer
Employer Phone #
Spoke To
Title
Date of Employment
Current Status
Salary
Overtime
Bonus
Verification
Verified By
Title
Date Verified
Signature
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Exhibit B-1
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Exhibit B-1
1403
19
19
(minus)
(minus)
(minus)
(minus)
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Exhibit B-1
19
19
(minus)
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Exhibit B-1
1503
Required changes to legal documents for One Month LIBOR ARMs under the Jumbo A and Expanded
Criteria Programs.
Lenders may make the changes authorized by Fannie Mae and must create state-specific notes in
accordance with Fannie Mae guidelines in the following states: Alaska, Florida, New Hampshire,
Vermont, Virginia, West Virginia, and Wisconsin.
Page 1
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Filed 02/04/15
Exhibit B-1
Page 2
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Filed 02/04/15
Exhibit B-1
Page 3
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Page 4
Exhibit B-1
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Loan Exception
Exhibit B-1
1600
Please fax this form with the GMAC-RFC Form 16A00 or Fannie Mae 1008 Transmittal Summary, 1003 Loan Application
and Credit Report including a Credit Score or submit Exception Form with delivery of Loan package for purchase by
GMAC-RFC.
Client Information
Client /Servicer Name: ____________________________________GMAC-RFC S/S#____________________
Contact_____________________________________Phone_____________________FAX___________________
Second Mortgage
Prior Approval Faxed (refer to documentation requirements)
Prior Approval File Delivered
Jumbo A
Home Solution
Home Equity
Expanded Criteria
AlterNet (Grade:_____
125 Loans
Product:
30 Year
Payment Option
1st Lien Line of Credit
15 Year)
Treasury
LIBOR
COFI
MTA
Closed Loan
LOAN AMOUNT
$___________________________
Uninsured
LOAN PURPOSE
Purchase (1)
Construction-Perm (4)
Rate/Term Refinance (2)
(Cash Back: $______________)
LTV_______________%
Line Increase
PROPERTY TYPE
Single family (Select # of units)
1 Unit
2 Unit
3 Unit
4 Unit
Condominium
Condo-Hotel
(Select # of stories)
1-4
5-8
Co-op
9+
(Acquisition Date____/____/____)
CLTV_______________%
Townhouse/Row House
DOCUMENTATION TYPE
ASSET VERIFICATION
PUD
Full Income
Modular
Yes
Fast
Non-warrantable Condominium
Stated Income
Rural Property
OCCUPANCY TYPE
No Ratio
Excess Acreage
Leasehold
Owner Occupied
No Income/No Asset
No Doc
Stated Value
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Exhibit B-1
Borrower Information
BORROWER NAME____________________________________SOCIAL SECURITY#_________-______-________
CO-BORROWER______________________________________(must be entered in Single Loan Exception Screen)
ADDRESS_________________________________CITY______________________STATE________ZIP____________
INTERNATIONAL BORROWER
QUALIFYING RATIOS
______________
______________
Housing
Debt
CREDIT SCORE_________________
PAYMENT CHANGE
CO-BORROWER SCORE_____________
First-time Homebuyer
Yes
No
______________
Current
______________
Proposed
Decisions
TRADING
Yes
Adjustments To:
Rate
No
Yes
Margin/
Yield
Approved By
Date
Price
1st _______________
No
2nd _______________
(as necessary)
APO
Yes
No
CONDITIONS OF APPROVAL
PRICE IS:
ACCEPTED
If Exception Request is approved, this form must be signed by the Client and submitted with Loan file. Failure to
submit form will result in Loan ineligibility for purchase. If exception is granted, approval applies specifically to
exception stated above. ANY PRICE and or RATE ADJUSTMENT STATED ABOVE are in addition to applicable
feature adjustments. Final Approval is subject to complete Loan review.
(03/13/06)
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Exhibit B-1
16A00
Phone:
Ext.:
Fax:
Phone:
Ext.:
Fax:
Purchase Advice
Contact:
Phone:
Ext.:
Fax:
Lock-in Commitment Number Information - REQUIRED for all closed Loans submitted for purchase.
Client inquires on pricing, Commitments, rate sheets, or registration call GMAC-RFC Trading Sales at 1.800.328.2800
GMAC-RFC LOCK-IN Delivery Commitment Number (needed to process)
Borrower Name
Assetwise Loan?
2nd: $
Assetdelivery Loan#
Yes
No
LTV:
CLTV:
A1
A2
A3
A1
A2
A3
A1
A2
A3
Prior approval
Submitted for funding
Single Loan Program exception submitted for prior approval
Home Solution - Circle one file credit grade
A1
A2
A3
A4
Ax
Am
A4
A5
A1
A2
A3
125 CLTV
Third-party contact:
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Required Documents
Exhibit B-1
Credit Documents
Legal Documents
Servicing Documents
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Exhibit B-1
16A01
This form is intended to be used as a guide in underwriting the self-employed Borrower. Analyzing cash flow from tax
returns requires knowledge of changes in legislation affecting tax codes. Underwriters should keep abreast of such
changes to properly analyze self-employed Borrowers applications. Underwriters must have an understanding of
general business trends and techniques for analyzing financial statements and have a general knowledge of business
practices in order to analyze the businesses owned by Borrowers.
A.
Wages
Alimony Received (need divorce decree for continuity)
IRA distributions
Pension/annuity
Social Security (Form 1099s; need awards letter for continuity)
Schedule A
a. moving expenses (subtract total from Form 4782 if included in W-2 wages)
b. unreimbursed employee expenses (from Form 2106)
7. Schedule B (interest/dividends)
a. total interest
b. subtract partnership/S corporation interest
c. total dividends
d. subtract partnership/S corporation dividends
e. non-taxable distributions
8. Schedule C
a. profit or loss
b. depletion
c. depreciation
d. pension/profit sharing
e. subtract 20% meals/entertainment
f. subtract jobs credit
g. amortization
h. casualty loss
i. business use of home
j. miscellaneous add-backs
9. Schedule D (capital gains/losses)
a. short term gains
b. subtract short term losses
c. long term gains
*d. subtract long term losses
*Subtract losses only if the assets sold were purchased in one of tax years you
are analyzing
10. Installment sale income (Form 6252)
a. payments received during year (1 year payment history plus verification this
cash flow will
continue for a minimum of three years is required.)
11. Schedule E (rental income and loss)
a. total rents received
b. subtract total expenses
c. royalty income
12. Section F
a. profit/loss
b. depreciation
c. subtract jobs credit
d. pensions
e. amortization
f. depletion
g. casualty loss
20
20
1.
2.
3.
4.
5.
6.
(minus)
(minus)
(minus)
(minus)
(minus)
(minus)
(minus)
(minus
(minus)
(minus)
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A.
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Exhibit B-1
20
20
(minus)
(minus)
(minus)
(minus)
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Exhibit B-1
16A02
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Exhibit B-1
IN WITNESS WHEREOF, this Agreement has been duly executed by the parties hereto the day and year first
above written.
BORROWER
__________________________________
__________________________________
LENDER
By________________________________
By________________________________
STATE OF _________________________________
COUNTY OF _______________________________
I hereby certify that on this day, before me, an officer duly authorized in the State aforesaid and in the
county aforesaid to take acknowledgments, personally appeared _______________________________
(Borrowers) and _____________________________________ President and ______________________,
as _______________________________ of ________________________________________________
(Lender) on behalf of said corporation, to me known to be the person(s) described in and who executed the
foregoing instrument and acknowledged before me that _________________________ executed the same
for the purpose therein expressed.
WITNESS my hand and official seal in the county and State aforesaid this ________________ day of
__________________, (year) ________.
My Commission expires _______________________.
(seal)
________________________________
Notary Public
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Exhibit B-1
16F00
This Addendum/Rider is made as of ____(A)____, and is incorporated into and amends (i) the Note dated on the same date as this
Addendum/Rider from the undersigned Borrower(s) to Lender together with its successors and assigns to evidence Borrower(s)
obligation to repay a Loan in the amount of ____(B)_____ from Lender to Borrower(s), and (ii) a Security Instrument and Adjustable
Rate Rider dated on the same date as this Rider from Borrower(s) to Lender securing said Note and constituting a first mortgage on
property located at:
_______________________________________________(C)__________________________________________________________
________________________________________________________________________
1. The numeric Value provided in paragraph 4(C) of the Note and Adjustable Rate Rider, will be permanently
decreased by __(D)__ percentage points (__(E)__%) if the following conditions are met by the Borrower(s),
however, in no event will the numeric Value in paragraph 4(C) be less than ___(F)___ percentage points
(___(G)___%):
a. At the first Change Date, Lender has received Borrowers monthly payment in full within 30
days of the due date during the 12 month period prior to the Change Date and within
60 days of the due date for the 13 to 24 months prior to the Change Date.
b. The reduction set forth above will result in a reduction in the monthly payment.
c. Payments are considered received by Lender when actually in possession of Lender. Depositing a
payment in the mail or otherwise does not constitute a payment received by Lender. A payment
made by check that is not honored when cashed by Lender will not be considered a payment
received by Lender.
2. Lenders obligation to permit assumption of the Loan if the conditions stated in the section, Transfer of the
Property or a Beneficial Interest in Borrower, of the Note and Adjustable Rate Rider are met, does not arise
until after the date of the first Change Date as stated in Section 4(A) of the Note and Adjustable Rate Rider.*
Date
Date
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Exhibit B-1
A. The date the rider is drawn up. This should be the same date as the Note and Security Instrument.
D. The amount by which the Margin is going to be decreased. Expressed using alpha.
E. The amount by which the Margin is going to be decreased. Expressed using numeric.
F. The Margin floor. Expressed using alpha. (For this program, it is two and one-half.)
G. The Margin floor. Expressed using numeric. (For this program, it is two and one-half.)
H. Borrowers signature.
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Exhibit B-1
16G00
Date ______________________________
First
Middle
Co-Borrower Name________________________________________________________________________
Last
First
Middle
Purpose _______________________________
Debt-to-Income Ratio_______________________________
Yes
or
No
Stated Value
Yes
or
No
3-4 Units
Yes
or
No
Stated Income
Yes
or
No
Exception Request
_____________________________________________________________________________
_____________________________________________________________________________
Compensating Factors
_____________________________________________________________________________
_____________________________________________________________________________
Please fax this form with the Residential Loan Application (Fannie Mae 1003), and the credit report
including a Credit Score to your underwriting contact at GMAC-RFC.
GMAC-RFC Internal Use Only _______________________________________________________________
Approved/Declined By: (Underwriter)___________________________________________________________
Conditions:_______________________________________________________________________________
Margin/Yield (Trading)
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Exhibit B-1
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Exhibit B-1
16G03
ACQFT001--01
3/27/97 3:51:42 PM
3377--1
Client Loan #
Line Amount
25,000.00
Draw Amount
25,000.00
Borrower Name
Origination Fee
Fund Date
03/27/97
Penalty Fee
Draw Date
03/20/97
Interest
12.5000
Interest Penalty
750.00
0.00
59.93
0.00
Initial Rate
Interest Paid to Date
Servicer Name
Servicer Account #
106990000545395
03/27/97
25,809.93
Transaction Summary
Total Asset Funding 03/27/97
Funding Type
Asset Funding
ABA #
Account
Date
010909232
3/27/97
25,809.93
0.00
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Exhibit B-1
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Exhibit B-1
16G04
Client: ______________________________________
Client Loan Number: ___________________________ Disbursement Date: ______________________
Borrower Name:
____________________________________________________________________
Last
Co-Borrower:
First
Middle
____________________________________________________________________
Last
First
Middle
City
State
ZIP
Borrower requests the following disbursements and/or advance indicated below. If any estimated amount shown
below varies from the actual paid (as of the date of closing), the Borrower agrees to the actual amount and, if applicable, the corresponding change to the advance shown below. Borrower agrees that any disbursement and/or
advance is made under Borrower's Home Equity Line Security Agreement (Note).
To Borrowers:__________________________________________
To:
__________________________________________
To:
__________________________________________
To:
__________________________________________
To:
__________________________________________
$_____________________
$_____________________
$_____________________
$_____________________
$_____________________
$______________
$______________
$______________
$______________
$______________
$______________
$______________
$______________
$______________
$______________
$______________
$______________
$________________
TOTAL ADVANCE
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Exhibit B-1
City
State
ZIP
With the signatures below, the Borrower hereby are approved as designated check signer(s) and credit card user(s) (if applicable)
in connection with their Home Equity Line Security Agreement with Client. Check and credit card charges will be honored when
signed by any one or all of the designated signers. If Borrower is in default under their Home Equity Line Agreement with Client,
Client may request that any unused checks and credit card(s) (if applicable) be returned.
Borrower Signature:
_________________________________
Date_____________
Date_____________
Date_____________
Date_____________
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Exhibit B-1
16G05
GMAC-RFC does not accept AVMs when the Client has altered or changed the AVM in any way from the original
product supplied by the vendor.
The following vendors of Automated Valuation Model (AVM) products are authorized GMAC-RFC Qualified AVM
Vendors. However, AVM valuation reports issued by these vendors will only be considered to be a Qualified AVM
report if they are: (1) ordered through the vendors specifically designated Qualified AVM ordering system; and (2)
are specifically issued by such vendor system with a seal indicating that the report is a Qualified AVM.
First American
5601 East La Palma Avenue
Anaheim, CA 92807
www.firstamres.com
847.566.0583
Ray Semple:
Rsemple@firstam.com
RealQuestTM
Vector
www.verovalue.com
866.458.3767
David Rasmussen:
drasmussen@veros.com
VeroSELECT
Contacts
Products
www.csmarketing.net
949.249.8598
Steve Morgan:
stevem@csmarketing.net
CASA
Home Value Explorer
PASS
PowerBase 6
ValueFinder
ValuePoint 4
VeroValue
www.dataquick.com
800.950.9171 Ext 3103
Lauren Guzak:
lguzak@dataquick.com
www.emortgage.equifax.com
404.885.8426
Craig Jeidy:
craig.jeidy@equifax.com
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Vendors
Exhibit B-1
Products
First American
5601 East La Palma Avenue
Anaheim, CA 92807
www.firstamres.com
847.566.0583
Ray Semple:
Rsemple@firstam.com
www.ValuServ.com
866.279.3622
Mark Crosby:
mark.crosby@fiserv.com
CASA
www.mivalue.com
800.577.6602
Jennifer Alves: jalves@fnis.com
CASA
Home Value Explorer
PASS
LandSafe, Inc.
7105 Corporate Drive
Plano, TX 75024
www.landsafe.com
877.572.5673
appraisal@landsafe.com
ValueFinder
www.platdata.com
877.711.1200
Rocky Donathan:
rocky@pvads.com
Trans Union
2708 N Snelling Avenue, Suite 309
Roseville, MN 55113
www.tuc.com
651.639.0007 Ext. 227
Richard Hogendorf:
Rhogendo@transunion.com
CASA
Home Value Explorer
PASS
Veros Software
2333 North Broadway
Suite 350
Irvine, CA 92706
www.veros.com
714.415.6300
David Rasmussen:
drasmussen@veros.com
CASA
Home Value Explorer
PASS
PowerBase 6
ValueFinder
ValuePoint 4
VeroValue
CASA
Home Value Explorer
Pass
PowerBase 6
ValuePoint 4
VeroValue
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Exhibit B-1
16G06
If this is a cash-out refinance, we also require the following documentation in addition to the
items above:
Underwriting Transmittal Summary (1008) or any other documentation that reflects the current
debt-to-income (DTI) ratio.
Current (less than 6 months old) full certified appraisal (interior and exterior) reflecting the
current market Value of the property. Please note we do NOT accept drive-by appraisals.
Current credit report (less than 90 days old) that reflects FICO scores of the Borrowers.
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Exhibit B-1
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Exhibit B-1
16G07
Client: ______________________________________
Client Loan Number: ___________________________ Disbursement Date: ______________________
Borrower Name:
____________________________________________________________________
Last
Co-Borrower:
First
Middle
____________________________________________________________________
Last
First
Middle
City
State
ZIP
Borrower requests the following disbursements and/or advance indicated below. If any estimated amount shown
below varies from the actual paid (as of the date of closing), the Borrower agrees to the actual amount and, if applicable, the corresponding change to the advance shown below. Borrower agrees that any disbursement and/or
advance is made under Borrowers Line of Credit Agreement (Note).
To Borrowers:__________________________________________
To:
__________________________________________
To:
__________________________________________
To:
__________________________________________
To:
__________________________________________
$_____________________
$_____________________
$_____________________
$_____________________
$_____________________
$______________
$______________
$______________
$______________
$______________
$______________
$______________
$______________
$______________
$______________
$______________
$______________
$________________
TOTAL ADVANCE
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Exhibit B-1
City
State
ZIP
With the signatures below, the Borrower hereby are approved as designated check signer(s) and credit card user(s) (if
applicable), in connection with their Line of Credit Agreement with Client. Check and credit card charges will be honored when signed by any one or all of the designated signers. If Borrower is in default under their Line of Credit Agreement with Client, Client may request that any unused checks and credit card(s) (if applicable) be returned.
Borrower Signature:
_________________________________
Date_____________
Date_____________
Date_____________
Date_____________
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Exhibit B-1
16H01
Borrower/Property Information
Name: _______________________________________________________________________________________________________________________________
Property Address to be Improved:
_____________________________________________________________________________________________________________________________________
_____________________________________________________________________________________________________________________________________
Instructions
Please complete a detailed itemization for your planned home improvements. The combined total of your estimated costs must match the Loan amount being borrowed.
All Loan proceeds must be used for materials or outside labor. In the last column, please indicate who will be performing the work by using one of the following codes:
C (work to be completed by contractor); B (work to be completed by Borrower(s) or TBD (to be determined).
Description of Improvement
Quantity
Unit Cost
Work by C, B or TBD
Roofing
New
Repair
Type:
Sq. Feet
Gutters/Downspouts
Type:
Built in Appliance
Type:
Built in Appliance
Type:
Floor Covering
Type:
Sq. Yard
Gallons
Painting
Wallpaper
Cabinets
Rolls
Type:
Counter tops
Type:
Plumbing Fixtures
Type:
Size
Door(s)
Type:
Size
Window(s)
Type:
Size
Other
Other
Bathtub
Shower
Sink
Faucet
Toilet
Floor Covering
Type:
Painting
Wallpaper
Cabinets
Sq. Feet
Gallons
Rolls
Type:
Counter tops
Type:
Size
Door(s)
Type:
Size
Window(s)
Type:
Size
Sq. Yard
Gallons
Other
Other
Interior Finishing - Bedroom(s)
Floor Covering
Type:
Painting
Wallpaper
Closet(s)
Rolls
Type:
Door(s)
Type:
Size
Window(s)
Type:
Size
$
Home Improvement Cost Breakdown
GMAC-RFC Form 16H01 (01/01/01)
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Other
Sq. Yard
Gallons
Other
Exhibit B-1
Interior Finishing
Floor Covering
Type:
Painting
Wallpaper
Rolls
Repair
Other
Other
Door(s)
New
Quantity
Unit Cost
Work by C, B, or TBD
Room Addition
Type of Room
Size
Detail
Type:
Heater/Furnace
Type:
Solar System
Type:
Other
Insulation
Type:
Exterior Finishing
Gallons
Size
Painting
Entry Door
Type:
Awning:
Type:
Other
Miscellaneous
Electrical Wiring
Decking
Type:
Size
Patio Cover
Type:
Size
Patio Enclosure
Type:
Size
Concrete
Type:
Size
Garage Door
Type:
Size
Type:
Size
Retaining Wall
Type:
Size
Fencing
Type:
Size
Walkway
Planters
Sprinklers
Type:
Landscaping
Shrubs:
Landscaping
Trees:
Landscaping
Sod:
Sq. Yard
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Ground
Cover:
Landscaping
Seed:
Landscaping
Other:
Landscaping
Other:
Permits
Exhibit B-1
Plans
Other
Other
Other
Other
Other
Other
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Exhibit B-1
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Exhibit B-1
16H02
(Letterhead of Lender)
THE FIRST PAYMENT ON YOUR LOAN WILL BE DUE AT LEAST 30 DAYS FROM THE DATE OF
THE DISBURSEMENT. THIS DATE MAY BE DIFFERENT FROM THE FIRST PAYMENT DUE DATE
STATED ON YOUR NOTE. YOU WILL BE NOTIFIED OF ANY PAYMENT DUE DATE CHANGE.
ACKNOWLEDGED:
_____________________________________________
BORROWER
___________________
DATE
_____________________________________________
BORROWER
___________________
DATE
_____________________________________________
BORROWER
___________________
DATE
_____________________________________________
BORROWER
___________________
DATE
DATE _______________________
Re:
You recently signed a Note dated ____________________ in the amount of $____________________. In the Note
the first payment date is shown as _____________________. Based on the date your funds were disbursed,
________________, your first payment will be due ___________________. Your payments will continue to be due
on the ____________ day of each month until __________________. All other terms of your Loan will remain
unchanged.
Funding Department
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Exhibit B-1
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Exhibit B-1
16H03
Date ____________________
Delivery
Term
60-Day
15-Year
20-Year
25-Year
Borrower Information
Borrower Name
Last
GMAC-RFC #
First
Middle
Loan Amount
Notes
Registered By:
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Exhibit B-1
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Exhibit B-1
16H04
Borrower
Date
Property Address
Loan Number
Debt Consolidation
Cash Out
Home Improvement
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Exhibit B-1
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Exhibit B-1
1800
The Client should refer to this directory when preparing and submitting Servicing Packages for Jumbo A,
Expanded Criteria, Payment Option, Home Solution and AlterNet first mortgage servicing released
programs.
Designated Servicer
Homecomings Financial
Transfer Notification Requirements
All property insurance policy endorsements should state the following:
Homecomings Financial,
its successors and/or assigns
PO 100585
Florence, SC 29501-0585
All taxing authority correspondence and bills should be sent to:
Homecomings Financial
P.O. Box 890037
Dallas, TX 75389
All mortgage insurance correspondence should be sent to:
Homecomings Financial
MI Department
P.O. Box 890035
Dallas, TX 75389
Payments
Borrowers should be advised to use this address when mailing payments:
U.S. Mail
Overnight Address
Homecomings Financial
Homecomings Financial
P.O. Box 650515
1820 E. Sky Harbor Circle South
888 South Greenville Avenue
Phoenix, AZ 85034-9700
Dallas, TX 75265
Payments due the Designated Servicer must be endorsed to Homecomings Financial and forwarded upon
receipt by overnight mail service to the above address.
Customer Service
Borrowers should also be advised to direct inquiries and correspondence to:
Homecomings Financial
P.O. Box 890036
Dallas, TX 75389
The toll-free telephone number for Customer Service is 1.800.206.2901.
Client/Servicer Inquiries
Homecomings Financial
2711 North Haskell Avenue
Suite 900
Dallas, TX 75204
Refund request, payment address or other transfer related issues phone: 214.874.2408. Refund request
documentation for payment of escrow FAX: 214.874.2032 or email:
reconciliations_fax@homecomings.com.
Refer to the Monies Due Client Section in Chapter 8, Servicing Released of the GMAC-RFC Client Guide for
guidelines on how to expedite resolution of any servicing transfer discrepancies.
Designated Servicer Directory
GMAC-RFC Exhibit 1800 (03/13/06)
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Exhibit B-1
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Exhibit B-1
Designated Servicer Directory, Home Equity Goal Loans & 125 Loans
1801
The Client should refer to this directory when preparing and submitting Servicing Packages for Home Equity
Goal Loans and 125 CLTV Loans.
Designated Servicer
Homecomings Financial
Endorsement Requirements (All insurance policy endorsements should state the following)
Homecomings Financial
its Successors and/or Assignors
PO 100585
Florence, SC 29501-0585
Payments (Borrowers should be advised to use this address when mailing payments)
U.S. Mail
Homecomings Financial
P.O. Box 650515
Dallas, TX 75265-0515
Overnight Payments
1820 E Sky Harbor Circle South
Phoenix, AZ 85034-9700
Overnight Packages
Homecomings Financial
2711 North Haskell Avenue
Suite 900
Dallas, TX 75204
Client/Servicer Inquiries
Homecomings Financial
2711 North Haskell Avenue
Suite 900
Dallas, TX 75204
Refund request, payment address or other transfer related issues phone: 214.874.2408. Refund request
documentation for payment of escrow FAX: 214.874.2032 or email reconciliations_fax@homecomings.com.
Refer to the Monies Due Client Section in Chapter 8, Servicing Released of the GMAC-RFC Client Guide for
guidelines on how to expedite resolution of any servicing transfer discrepancies.
Home Equity Goal Loans & 125 Loan Designated Servicer Directory
GMAC-RFC Exhibit 1801 (03/13/06)
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Exhibit B-1
Home Equity Goal Loans & 125 Loan Designated Servicer Directory
GMAC-RFC Exhibit 1801 (03/13/06)
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Exhibit B-1
1802
Servicing Released Approved Flood Zone Determination Company and Fee Schedule
(First Mortgage Products)
Flood Data Services, Inc. (FDSI)
Effective January 1, 1996
For any Simultaneous Sale of Servicing, where the Client does not provide a life of Loan Flood Zone Determination Contract,
GMAC-RFC will charge a fee to set up a flood zone determination contract. This cost will be deducted from the Funding Amount paid
to the Seller.
$10.00
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Exhibit B-1
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Exhibit B-1
1803
GMAC-RFC
PAGE 1
PURCHASE ADVICERFMPP040--01
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Exhibit B-1
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Exhibit B-1
1804
RFMPP526-01
PAGE 1
YOUR LOAN #
EXCESS
SVC
PRODUCT
GROUP
PREMIUM
1111122222
1234567890 1.00000
ESCROW SEASON
ADJ
PREVL
RATE
PREMIUM (TO)/FROM
RFC
1.00000
1,998.32
199,831.97
(1,413.75)
# OF TRANSFERS =
199,831.97
1,998.32
(1,413.75)
# OF TRANSFERS =
199,831.97
TOTAL
1,998.32
(1,413.75)
POST
SIMULTANEOUS
0.00
1,998.32
1,998.32
(1,413.75)
(1,413.75)
0.00
0.00
0.00
0.00
0.00
0.00
0.00
------------------
------------------
------------------
584.57
584.57
0.00
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Exhibit B-1
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Exhibit B-1
Designated Servicer Directory, 1st Lien Lines and Home Equity Lines
1805
The Client should refer to this directory when preparing and submitting Servicing Packages for 1st Lien Lines of Credit and
Home Equity Goal Lines of Credit servicing released programs.
Designated Servicer
Homecomings Financial
Endorsement Requirements
All insurance policy endorsements should state the following:
Homecomings Financial, its successors and/or assigns,
PO 100585
Florence, SC 29501-0585
All recorded legal documents or legal notices should be sent to:
GMAC-RFC
One Meridian Crossings
Suite 100
Minneapolis, MN 55423
Attn: Central Document Repository
Payments
Borrowers should be advised to use this address when mailing payments:
U.S. Mail
Overnight Address
Homecomings Financial
Homecomings Financial
P.O. Box 105682
1640 Phoenix Blvd. Suite 110
Atlanta, GA 30348-5682
College Park, GA 30349-5563
Payments due the Designated Servicer must be endorsed to Homecomings Financial and forwarded upon receipt by overnight
mail service to the above address.
Customer Service
Borrowers should also be advised to direct inquiries and correspondence, including subordinations to:
Homecomings Financial
P.O. Box 890036
Dallas, TX 75389
The toll-free telephone number for Customer Service is 1.800.206.2901.
Client/Servicer Inquiries
Homecomings Financial
2711 North Haskell Avenue
Suite 900
Dallas, TX 75204
Refund request, payment address or other transfer related issues phone: 214.874.2408. Refund request
documentation for payment of escrow FAX: 214.874.2032 or email
reconciliations_fax@homecomings.com.
Refer to the Monies Due Client Section in Chapter 8, Servicing Released of the GMAC-RFC Client Guide for
guidelines on how to expedite resolution of any servicing transfer discrepancies.
1st Lien Lines and Home Equity Lines Designated Servicer Directory
GMAC-RFC Exhibit 1805 (01/01/05)
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Exhibit B-1
1st Lien Lines and Home Equity Lines Designated Servicer Directory
GMAC-RFC Exhibit 1805 (01/01/05)
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Exhibit B-1
1806
Note: Pending purchase conditions should be sent to the attention of the associate handling the file.
Payments
Homecomings Financial
P.O. Box 650515
Dallas TX 75265-0515
Overnight Payments
Homecomings Financial
1820 E Sky Harbor Circle South
Phoenix, AZ 85034-9700
Home Equity Lines of Credit use the following address for Payments
Payments
Homecomings Financial
P.O. Box 105682
Atlanta, GA 30348-5682
Overnight Payments
Homecomings Financial
1640 Phoenix Blvd. Suite 110
College Park, GA 30349-5563
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Exhibit B-1
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Exhibit B-1
1900
GMAC-RFC Seller ID
Address
City/State/Zip
Phone Number
Fax Number
Wire Instructions
Action (choose one)
Non-warehouse Line
One-time Use
ADD
DELETE
Warehouse Provider
Warehouse Phone #
Account Name
Account Number
Special Attention
Bank Name
City/State
ABA Number
Note: If more than one set of wire instructions, please photo copy this page and provide one set of wire
instructions per page.
Date
Title
No
Extension
Bailee Negotiated:
Yes
Date
Yes
No
Approved
Date
Approved
Bank Code
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Exhibit B-1
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Exhibit B-1
1902
Issued To:
ATTN:
Loan Amount:
Other Financing:
Value:
Loan-to-Value:
Loan Status:
Borrower Name:
Prop Address:
Long Terms:
Property:
Documentation:
Units:
UNCLOSED
Commit
PURPOSE:
This Certificate shall be transferable by the Customer to any Approved Client that has good and marketable title to the Certified Loan if no Loan
Deviations are indicated above. This Certificate may not be transferred without GMAC-RFCs prior written consent and any expressly permitted
transferee shall be entitled to rely upon, or derive any legal rights from, this Certificate.
GMAC-RFC
Residential Funding
Corporation
CERTIFICATE
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Exhibit B-1
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Exhibit B-1
1903
GMAC-RFC
NOTIFICATION OF UNDERWRITING DENIAL
DENIAL DATE
GMAC-RFC LOAN #:
COMMIT #:
ATTN:
BORROWER NAME:
BORROWER ADDRESS:
WE REGRET TO INFORM YOU THAT THE APPLICATION ON THE ABOVE REFERENCED BORROWER(S) HAS BEEN
DECLINED FOR THE REASONS STATED BELOW:
SINCERELY,
PHONE NUMBER:
FAX NUMBER:
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Exhibit B-1
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Loan Registration
Client ID #
__________________________
Lock-In Date:_________________
Client Company
__________________________
Fax Numbers:
Exhibit B-1
1905
Client Contact
__________________________
Client Phone #
__________________________
Client Fax #
__________________________
Borrower(s) Name
____________________________________________________________
Application Date
_____/_____/_____
Property Address
____________________________________________________________
Last
First
Middle
Street
____________________________________________________________
City
State
ZIP
10-day
Product Type
(check one)
Mandatory
Jumbo A
Best efforts
Expanded Criteria
FRM-30
FRM-15
FRM-30
FRM-15
Loan Amount
$_________________________
_________________________
Purchase
Gross Margin__________
Rate/Term Refinance
Cash-out Refinance
Concurrent Funding
Loan Registration
GMAC-RFC Form 1905 (03/13/06)
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Exhibit B-1
AlterNet Delivery
Delivery Period (check one)
30-day
65-day
Other______days
Grade _________
Purchase
Gross Margin__________
Rate/Term Refinance
Cash-out Refinance
Concurrent Funding
PC # _____________________________
Commitment # _____________________
Expiration ________________________
Loan Registration
GMAC-RFC Form 1905 (03/13/06)
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Exhibit B-1
1906
Lock-In Date
______________________________
Client ID #
______________________________
Client Company
______________________________
Client Contact
______________________________
Client Phone
______________________________
Client Fax
______________________________
Mortgager Name
(First, Middle, Last)
Client Loan #
App. Date
Property Address
City/State/Zip/County
Delivery Period
30-Day
Other
30-Day
Other
30-Day
Other
30-Day
Other
30-Day
Other
30-Day
Other
30-Day
Other
Product/
Loan Program
Grade
Type
Loan Amount
Note Rate
Loan Type
Est.Close Date
Conforming
Non-conforming
Purchase
Rate/Term Refinance
Cash-Out
Concurrent
Conforming
Non-conforming
Purchase
Rate/Term Refinance
Cash-Out
Concurrent
Conforming
Non-conforming
Purchase
Rate/Term Refinance
Cash-Out
Concurrent
Conforming
Non-conforming
Purchase
Rate/Term Refinance
Cash-Out
Concurrent
Conforming
Non-conforming
Purchase
Rate/Term Refinance
Cash-Out
Concurrent
Conforming
Non-conforming
Purchase
Rate/Term Refinance
Cash-Out
Concurrent
Conforming
Non-conforming
Purchase
Rate/Term Refinance
Cash-Out
Concurrent
GMAC-RFC
Commitment #
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Exhibit B-1
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Exhibit B-1
1907
Client Name
Street Address
Client ID Number
Borrower Name
Contact Person
Telephone Number
To document the captioned mortgage Loan file, we hereby submit and enclose the following documents:
Original recorded or county certified copy Security Instrument, and any addenda or riders:
Original recorded or county certified copy intervening assignments (if applicable).
Title Policy
Other
GMAC-RFC
One Meridian Crossings
Suite 100
MC 03-03-40
Minneapolis, MN 55423
Attention: Final Document Intake Department
* Deliveries without the GMAC-RFC Loan number may be returned at the Clients expense.
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Exhibit B-1
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Exhibit B-1
1908
Date:
Loan #:
Simultaneous
Stand-Alone
Credit Documents
All credit documents should be secured with a two prong fastener on the right side of a legal size folder.
Exception Request (if applicable)
Copy of the HUD-1 settlement statement from the new first mortgage if originated simultaneously
(ADD TO FILE IF APPLICABLE)
Copy of the Note for the first mortgage Loan, or verification of first mortgage product type
Uniform Underwriting and Summary Transmittal (Fannie Mae 1008) with contact name, phone and
fax number, or internal underwriting worksheet
Residential Loan Application (Fannie Mae 1003) or GMAC-RFC Home Equity Loan Application
Appraisal with original or legible copies of photos
A Credit Report with a Credit Bureau Score for each Borrower
12 month payment history for current or previous first mortgage if not disclosed on the credit report
Verification of income (to include all documents used to determine income)
Other
*The Note must be a GMAC-RFC approved second mortgage Note.
**The Security Instrument must be a GMAC-RFC approved second Security Instrument.
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Exhibit B-1
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Exhibit B-1
1909
Date:
Property Address:
Loan #:
Simultaneous
Stand-Alone
The Note must be a GMAC-RFC approved 1st Lien Line of Credit Agreement.
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Exhibit B-1
Credit Documents
All credit documents should be secured with a two prong fastener on the right side of a legal size folder.
Exception Request, if applicable
Uniform Underwriting and Summary Transmittal (Fannie Mae 1008) or internal underwriting
worksheet
Signed and dated Residential Line Application (Fannie Mae 1003) or other applications approved by
GMAC-RFC
Final Settlement statement (HUD-1) on the current Loan
The Purchase Agreement or escrow instructions and any modifications
Statement of Assets and Liabilities (Fannie Mae Form 1003A/Freddie Mac Form 65A), if applicable
All necessary Credit Report(s), with a Credit Score for all Borrowers
12-month payment history for the current or previous first mortgage, if not disclosed on the credit
report
Verification(s) of deposit and verification(s) of the source of down payment
Verification(s) of real estate Loan(s), if applicable
Verification(s) of employment/income
Two most recent years tax returns for self-employed or non-salaried Borrowers
Ground Lease Analysis (Freddie Mac Form 461), if applicable
Condominium Warranty Certification (GMAC-RFC Form 1303), if applicable
Residential Appraisal Report (applicable Fannie Mae/Freddie Mac Form)
Three original or digital photographs of the property (front, rear and street scene) or legible copies
(originals must be furnished upon request)
One original or digital photograph of each comparable used on the Residential Appraisal Report (front
scene) or legible copies (originals must be furnished upon request)
Documentation evidencing the original purchase price of the property plus improvements (if any)
(for refinances, if applicable)
Evidence that the Borrower has owned the property for at least 12 months (for cash-out refinances,
if applicable)
1 The Note must be a GMAC-RFC approved 1st Lien Line of Credit Agreement.
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Exhibit B-1
1910
Date____________________________
Delivery
Term
Mandatory
10-Day
5-Year
Best Efforts
30-Day
10-Year
60-Day
15-Year
# of Loans ______________________
Borrower Name
Last
First
Middle
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________
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Exhibit B-1
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Exhibit B-1
1911
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Exhibit B-1
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Exhibit B-1
Date
Property Address
Loan #
1912
Simultaneous
Stand-Alone
All legal and Servicing Documents should be secured with a prong fastener on the left side of a legal size file folder.
Loan Submission Form (GMAC-RFC Form 16A00)
Assetwise Findings Report (if applicable)
Original Note, ENDORSED IN BLANK, and any required addenda/riders*
Copy of the Security Instrument with any required riders**
Original Assignment, fully executed, ASSIGNED IN BLANK
Signed and dated Notice of Right of Rescission (if applicable)
Truth-in-Lending Disclosure
Payment History
HUD-1A Settlement Statement with disbursement date indicated
Copy of the Title Binder from FIRST MORTGAGE, if simultaneous origination; OR copy of title search/binder for
closed-end second originated subsequent to a first mortgage
Proof of Hazard Insurance: copy of declaration page or binder
Proof of Flood Insurance if applicable: copy of declaration page or binder
Federal Emergency Management Agency (FEMA) Standard Flood Hazard Determination Form
Other
Credit Documents
All credit documents should be secured with a two prong fastener on the right side of a legal size folder.
Exception Request (if applicable)
Copy of the HUD-1 settlement statement from the new first mortgage if originated simultaneously (ADD TO FILE
IF APPLICABLE)
Copy of the Note for the first mortgage Loan, or verification of first mortgage product type
Uniform Underwriting and Summary Transmittal (Fannie Mae 1008) or internal underwriting worksheet
Residential Loan Application (Fannie Mae 1003) or GMAC-RFC Home Equity Loan Application
Appraisal with original or legible copies of photos
A Credit Report with a FICO Score for each Borrower
12 month payment history for current or previous first mortgage if not disclosed on the credit report
Verification of income (to include all documents used to determine income)
*The Note must be a GMAC-RFC approved second mortgage Note.
**The Security Instrument must be a GMAC-RFC approved second Security Instrument.
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Exhibit B-1
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FAX:
Contact:
Phone:
From:
FAX:
Date:
Phone:
Borrower:
Loan:
Exhibit B-1
1913
The First Mortgage Flow Team has developed the following process to ensure an accurate timely funding. We
will be asking Clients to confirm funding data prior to receiving wire transfers. This will help eliminate any
funding adjustments that may affect your price. Please review the attached purchase advice and confirm that all
the information is correct.
The purchase advice will need to be signed and returned by _____________ PM Central Time today. Loans will
not be funded until a signed purchase advice is received by fax. The fax number is _______________________.
Any questions should be referred to the Operations Associate listed above.
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Exhibit B-1
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Exhibit B-1
1914
Client/Company:
Client ID:
Underwriting Contact:
Phone Number:
FAX Number:
Email Address:
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Exhibit B-1
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Exhibit B-1
1915
Provides electronic documents and updates through a download from their web page with a written
warranty that the documents are compliant.
Documents can be incorporated into your Loan Origination System.
Cost to you for documents and updates is $4,000 annually, regardless of the number of Loans or
specific States or products.*
Contact an MRG Customer Service Representative at 800.688.7335 or go to www.mrgdocs.com.
The Compliance Source, Inc. (CS).
Provides electronic documents and updates that can be ordered on the internet with written warranty
that the documents are compliant.
Documents can be incorporated into your Loan Origination System.
Cost to you for documents and updates is $250 yearly fee (per State) OR $1,200 yearly fee which
includes all RFC approved forms for all States and also includes notifications concerning changes to
any form, email compliance news alerts and notification of upcoming regulatory changes.*
Contact a Compliance Source Customer Service Representative at 972.980.2178 or go to
www.compliancesource.com to sign up automatically.
Bankers Systems, Inc. (BSI)
Provides electronic documents and updates (via disks) with a written Express Warranty that the
documents are compliant.
Documents can be incorporated into your Loan Origination System.
Cost to you for documents is billed quarterly based on annual Loan volumes. Fees vary based on a
sliding scale. For example: 251-500 Loans per year would be $2,565; 901-1200 Loans per year
would be $3,990 and 3001-4000 Loans per year would be $9,255. For fee breakdowns between the
Loan amounts indicated, please contact BSI.*
Contact a BSI customer service representative at 800.274.2711 or go to www.bankerssystems.com
* Fees and charges shown indicate current pricing and are subject to change.
Exhibit B-1
Notes
In all cases you will need to sign an agreement with MRG, BSI, Compliance Source or another thirdparty doc prep company.
MRG, BSI and CS warrant the documents for compliance to the doc prep companies, any
modifications made by the doc prep company are the responsibility of you and the doc prep company.
The exact terms and conditions of BSIs compliance warranty is set forth in the Express Warranty
contained in the agreement you would sign with BSI.
MRG, BSI and CS provide docs and doc prep services for our closed-end second mortgages and 125
CLTV Loans.
MRG also provides doc prep services for all GMAC-RFC first mortgage products.
* Fees and charges shown indicate current pricing and are subject to change.
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Exhibit B-1
1. You may report multiple transactions in a single file; however, you may not report multiple
transaction types (see valid Reason Codes) within a single file.
Valid Reason Codes:
01 Borrower Payoff
02 Third Party Sale (full)
03 ARM Conversion
04 Servicer Repurchase (other)
2. A single wire must be remitted for the total of each file.
3. Files must be submitted via email attachment sent to the attention of your Loan Accounting
contact (see instructions, below).
4. Payoff Interest Due calculation formula for odd due date loans (due dates other than 1st day
of month) for loans remitted scheduled/scheduled:
Ending unpaid scheduled balance as of your last, scheduled month-end reporting,
Multiplied by the loan-level interest rate due to GMAC-RFC per your servicing contract,
divided by 365 days,
Multiplied by the number of days between the due date of the last borrower payment
applied and the payoff transaction date,
Minus scheduled interest due as of your last scheduled month-end reporting
5. Deadlines for submission:
Borrower payoff-within 24 hours of payoff date
Third-party sale (full), ARM conversion, Servicer repurchase-by last business day of month
in which transaction occurs.
2308
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Exhibit B-1
2308
Field
Description
Field Format
Max - 9 digits
GMAC-RFC Loan
Number
Payoff, 3rd-party
Sale (full), ARM
Date of File
Conversion or
Submission to
Servicer
GMAC-RFC
Repurchase Date
Prepayment
Net Interest Due to
Principal Balance
Penalty Fees Due
GMAC-RFC on
Due
& Included in This
This Transaction.
Remittance
dd-mmm-yyyy
Max- 11 digits ; 2
places to right of
decimal, no
commas;
negative values
should have
minus sign in
front of number
Payoff Date
dd-mmm-yyyy
Submit Date
Principal Due
Max- 11 digits ; 2
places to right of
decimal, no
commas;
negative values
should have
minus sign in
front of number
Max- 9 digits ; 2
places to right of
decimal, no
commas;
negative values
should have
minus sign in
front of number
Payoff Interest
Due
Prepayment
Penalty Fees Due
& Included in This
Remittance
Total Remittance
Due to GMACRFC (principal +
net interest prepayment
penalty fees)
0
0
0
0
0
0
0
0
Page 2 of 2
$0.00
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GMAC-RFC
Exhibit B-1
Page 1
03/13/06
Client Guide
Index
Index
Numerics
1st Lien Line of Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.72
A
Accrued and Unpaid Residential Funding Scheduled Interest . . . . . . . . . . . . . . . 10.1
Acquisition Team . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.1
Additional Client Representations, Warranties and Covenants for the Home Equity Loan
Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2A.15
Additional Review Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4F.15
Adjustable Rate Mortgages (ARM) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.9
Adjustment Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.1
Affiliate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.1
Age Of Appraisal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4F.5
ALTA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.1
Alternative Delivery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.2
Ancillary Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.2
Appraisal Evaluation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4F.6
Appraisal Requirements . . . . . . . . . . . . . . . . . . . . . . . 4F.2, 6A.9, 6B.9, 6C.9, 6E.11
Appraisal Value Documentation Requirements . . . . . . . . . . . . . . . . . . . . . . . . . 6H.8
Appraiser Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4F.2
Arms Length Transaction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3B.4
Assessments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.6
Audits and Inspections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.8
Automated Valuation Model . . . . . . . . . . . . . . . . . . . . . . . . . . 4F.5, 6H.8, 6I.9, 10.2
AVM Option for Property Value Documentation up to 180 Days From Note Date . 6I.9
B
Balloon Mortgages . . . . . . . . . . .
Bankruptcy . . . . . . . . . . . . . . . . .
Best Efforts Delivery Commitment
Borrower . . . . . . . . . . . . . . . . . .
Borrower Capacity . . . . . . . . . . .
Bridge Financing . . . . . . . . . . . . .
Bulk Servicing . . . . . . . . . . . . . .
Business Day . . . . . . . . . . . . . . .
Business Debt . . . . . . . . . . . . . .
Buydowns . . . . . . . . . . . . . . . . .
Buyout Fee . . . . . . . . . . . . . . . . .
Buyups . . . . . . . . . . . . . . . . . . .
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. . . . . . . . . . 5.70
. . . . . 4A.5, 4A.12
. . . . . . . . . . 10.2
. . . . . . . . . . 10.2
. . . . . . . . . . 4B.4
. . . . . . . . . . 4C.2
. . . . . . . . . . 8.18
. . . . . . . . . . 10.2
. . . . . . . . . . 4B.4
. 2A.13, 6H.7, 6I.8
. . . . . . . . . . 10.3
. . . . . . . . . . 10.3
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Client Guide
Index
Doc 45-3
Exhibit B-1
GMAC-RFC
C
Calculating LTV Ratios . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash to Close . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash-out Refinance Mortgage . . . . . . . . . . . . . . . . . . . . . . . .
Change Of Servicer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Client . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Client Contract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Client Contract Warranties . . . . . . . . . . . . . . . . . . . . . . . . . .
Client Eligibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Client Representations Warranties and Covenants . . . . . . . . .
Client Responsibilities and Exclusions . . . . . . . . . . . . . . . . . .
Client Risk Management . . . . . . . . . . . . . . . . . . . . . . . . . . .
Client Underwriting Responsibilities . . . . . . . . . . . . . . . . . . .
CLTA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Collateral Property Underwriting . . . . . . . . . . . . . . . . . . . . . .
Commitment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commitment Confirmation . . . . . . . . . . . . . . . . . . . . . . . . . .
Commitment Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Compliance With Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Condo-Hotel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Condominium Classifications . . . . . . . . . . . . . . . . . . . . . . . .
Condominium Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . .
Condominium Unit Located in a Building . . . . . . . . . . . . . . . .
Condominium Warranties for Class I and Class II Condominium
Condominium Warranties for Class III Condominium Projects .
Construction/Permanent Mortgages . . . . . . . . . . . . . . . . . . .
Consumer Credit Counseling . . . . . . . . . . . . . . . . . . . . . . . .
Continuing Client Obligations . . . . . . . . . . . . . . . . . . . . . . . .
Contract For Deed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Co-Signed Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Credit Documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Credit Evaluation Overview . . . . . . . . . . . . . . . . . . . . . . . . .
Credit Limit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Credit Quality Standards . . . . . . . . . . . . . . . . . . . . . . . . . . .
Credit Score . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Customer Loan Status Inquiry Application . . . . . . . . . . . . . . .
.......
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Projects
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. . . . . 3C.1
. . . . . 4C.1
. . . . . 10.3
. . . 8.5, 8.6
. . . . . 10.3
. . . . . . 2.4
. . . . 2A.13
. . 2.1, 10.3
. . . . . 2A.1
. . . . . 4G.2
. . . . . 10.3
. . . . . . 2.4
. . . . . 10.3
. . . . . 4F.1
. . . . . 10.4
. . . . . 10.4
. . . . . 10.4
. . . . . 2A.7
. 3D.4, 10.4
. . . . . 3D.6
. . . . . 3F.8
. . . . . 3D.2
. . . . . 3D.7
. . . . . 3D.9
. . . . . 3B.4
. 4A.6, 6E.8
. . . . . . 2.4
. . . . . 3B.5
. . . . . 4B.4
. . . . . 10.4
. . . . . 4A.3
. . . . . 10.4
. . . . . 6I.5
. 4A.7, 10.4
. . . . . . 9.1
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D
Debris . . . . . . . . . . . . . . . . .
Debt Payoff . . . . . . . . . . . . .
Debt-To-Income Ratio . . . . . .
Debt-to-Income Ratio . . . . . .
Deferred Maintenance . . . . . .
Delinquency . . . . . . . . . . . . .
Delivery Commitment Number
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4F.10
. 4B.4
. 4B.2
. 10.5
4F.10
. 10.5
. 10.5
14-01915-mg
Doc 45-3
Exhibit B-1
Page 3
03/13/06
Client Guide
Index
GMAC-RFC
Delivery Date . . . . . . . . . . . . . . . . . . . . .
Delivery Process . . . . . . . . . . . . . . . . . . .
Demand Deposit Account . . . . . . . . . . . . .
Designated Servicer . . . . . . . . . . . . . . . .
Determination of Value . . . . . . . . . . . . . .
Disclosure of Information . . . . . . . . . . . . .
Discontinued Loan . . . . . . . . . . . . . . . . .
Discontinued Loans . . . . . . . . . . . . . . . . .
Disqualification or Suspension . . . . . . . . .
Disqualification Suspension or Inactivation
Divorce Debt . . . . . . . . . . . . . . . . . . . . .
Draw Period . . . . . . . . . . . . . . . . . . . . . .
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. . . . . 10.5
. . . . . 4G.4
. . . . . 10.5
. . 8.2, 10.5
. . . . . 3C.1
. . . 2.8, 8.3
. . . . . 10.5
. 6B.8, 6C.9
. . . . . . 2.4
. . . . 2A.26
. . . . . 4B.4
. . . . . 10.6
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. . . . . . . . . . . . . . . . . 10.6
. . . . . . . . . . . . . . . . . 8.11
. . . . . . . . . . . . . . . . . 10.6
. . . . . . . . . . . . . . . . . . 4.2
. . . . . . . . . . . . . . . . . 10.6
. . . . . . . . . . 2.2, 6H.1, 6I.1
. . . . . . . . . . . . . . . . . . 8.4
. . . . . . . . . . . . . . . . . 4D.1
. . . . . . . . . . . . . . . . 2A.12
. . . . . . . . . . . . . . . . . . 8.9
. . . . . . . . . . . . . . . . . 3C.6
. . . . . . . . . . . . . . . . . 10.6
. . . . . . . . . . . . . . . . . 10.7
. . . . . . . . . . . . . . . . 2A.20
. . . . . . . . . . . . . . . . . . 8.4
6B.5, 6C.5, 6E.4, 6H.4, 6I.3
. . . . . . . . . . . . . . . . . 10.7
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E
Early Scheduled Transfer . . . . . . . . . . . . .
Effective Date of Servicing Transfer . . . . .
Effective Date of Transfer . . . . . . . . . . . .
Electronic Documentation Standards . . . . .
Electronic Verification . . . . . . . . . . . . . . .
Eligibility Standards . . . . . . . . . . . . . . . .
Eligible Servicing Packages . . . . . . . . . . .
Employment and Income Analysis . . . . . .
Enforceability . . . . . . . . . . . . . . . . . . . . .
Escrow Account . . . . . . . . . . . . . . . . . . .
Escrow For Postponed Improvements . . . .
Escrow/Impound . . . . . . . . . . . . . . . . . . .
Event of Default . . . . . . . . . . . . . . . . . . .
Events of Default . . . . . . . . . . . . . . . . . .
Events of Servicer Default Prior to Transfer
Excess Acreage . . . . . . . . . . . . . . . . . . . .
Exclusionary List . . . . . . . . . . . . . . . . . . .
F
Factory-built Homes . . . . . .
Family Trusts . . . . . . . . . . .
Fannie Mae . . . . . . . . . . . . .
FDIC . . . . . . . . . . . . . . . . .
Fee Simple . . . . . . . . . . . . .
Final Documents . . . . . . . . .
First Interest Rate Cap . . . .
First-time Homebuyer . . . . .
Fixed Income . . . . . . . . . . .
Fixed-Rate Mortgages (FRM)
Flood Certification . . . . . . . .
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. . . . . 10.7
. . . . . 3A.5
. . . . . 10.7
. . . . . 10.7
. 3A.7, 10.7
. . 8.3, 10.7
. . . . . 10.7
. . . . . 6I.6
. . . . . 4D.5
. . . . . . 5.3
. . . . . . 8.5
14-01915-mg
Page 4
03/13/06
Client Guide
Index
Doc 45-3
Exhibit B-1
GMAC-RFC
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. . . . . . . 8.5
. 4A.5, 4A.12
. . . . . . 10.7
. . . . . . 10.8
. . . . . . 10.8
. . . . . . 10.8
. . . . . . 10.8
Ginnie Mae . . . . . . . . . . . . . . . . . . .
GMAC-RFC . . . . . . . . . . . . . . . . . . .
Graduated Payment Mortgage (GPM)
Graffiti . . . . . . . . . . . . . . . . . . . . . .
Growing Equity Mortgage (GEM) . . . .
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. 10.8
. 10.8
. 10.9
4F.10
. 10.9
....
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Note
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. 4E.1
. 4D.2
2A.27
. 6H.7
. 6J.1
. 4D.8
. 3B.6
. 10.9
10.10
10.10
. . 8.9
10.10
10.10
. . 8.7
H
Hazard Insurance . . . . . . . . . . . . . . . .
High Rise Condominiums . . . . . . . . . . .
Home Equity Line Security Agreement or
Home Equity Purchase Date . . . . . . . . .
Home Equity Repayment Period . . . . . .
Home Equity Simultaneous Transactions
Home Equity Standalone Transactions . .
HUD . . . . . . . . . . . . . . . . . . . . . . . . .
3F.1
6E.5
10.9
10.9
10.9
10.9
10.9
10.9
I
Income Documentation Standards
Income Types . . . . . . . . . . . . . . .
Indemnification . . . . . . . . . . . . . .
Ineligible First Mortgages . . . . . . .
Ineligible Loans . . . . . . . . . . . . .
Inherited And Guaranteed Income
Inherited Properties . . . . . . . . . .
Initial Advance . . . . . . . . . . . . . .
Institutional VOR . . . . . . . . . . . .
Insured Depository . . . . . . . . . . .
Interest on Escrows . . . . . . . . . .
Interest Rate/Payment Adjustment
Intermittent Lates . . . . . . . . . . . .
IRS Reporting . . . . . . . . . . . . . . .
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14-01915-mg
Doc 45-3
Exhibit B-1
Page 5
03/13/06
Client Guide
Index
GMAC-RFC
L
Land-to-Value . . . . . . . . . . . . . .
Leasehold . . . . . . . . . . . . . . . .
Legal Documents . . . . . . . . . . .
Legal Non-Conforming Properties
Liabilities . . . . . . . . . . . . . . . . .
Liens . . . . . . . . . . . . . . . . . . . .
Life-of-Loan Contract . . . . . . . .
Lifetime Cap . . . . . . . . . . . . . . .
Lifetime Floor . . . . . . . . . . . . . .
Lis Pendens . . . . . . . . . . . . . . .
Loan . . . . . . . . . . . . . . . . . . . .
Loan Accounting Department . . .
Loan Audit . . . . . . . . . . . . . . . .
Loan Documents . . . . . . . . . . . .
Loan Program . . . . . . . . . . . . . .
Loans Paid in Full . . . . . . . . . . .
Loans to One Borrower . . . . . . .
Loan-to-Value . . . . . . . . . . . . . .
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. . . . . . . . . . 10.10
.2A.13, 3A.7, 10.10
. . . . . . . . . . 10.10
. . . . . . . 4F.8, 6E.4
. . . . . . . . . . . 4B.3
. . . . . . . . . . 2A.10
. . . . . . . . . . . . 8.5
. . . . . . . . . . 10.11
. . . . . . . . . . 10.11
. . . . . . . . . . 10.11
. . . . . . . . . . 10.11
. . . . . . . . . . 10.11
. . . . . . . . . . . 2.11
. . . . . . . . . . 10.11
. . . . . . . . . . 10.11
. . . . . . . . . . . 8.17
. . . . . . . 3A.5, 3B.6
. . . . . . . . . . 10.11
Maintenance of Records . . . . . . . .
Major Adverse Credit . . . . . . . . . .
Mandatory Delivery Commitment .
Manufactured Home . . . . . . . . . .
Margin . . . . . . . . . . . . . . . . . . . .
Merger or Consolidation of Client .
MERS . . . . . . . . . . . . . . . . . . . . .
MIN . . . . . . . . . . . . . . . . . . . . . .
Minimum Advance . . . . . . . . . . . .
Minimum Credit History . . . . . . . .
Minimum Improvement . . . . . . . .
Mixed Use Properties . . . . . . . . . .
Mobile Home . . . . . . . . . . . . . . .
Modular Home . . . . . . . . . . . . . .
Modular, Panelized, Pre-Cut Homes
Monies Due Client . . . . . . . . . . . .
Monies Due Designated Servicer .
Monies Paid for Servicing Released
Mortgage Insurance . . . . . . . . . .
Mortgage Insurer . . . . . . . . . . . .
Mortgage Payment History . . . . . .
Mortgaged Premises . . . . . . . . . .
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. . . . . . . . . . . . . . . . . . . 2.9
. . . . . . . . . . . . . 6E.8, 10.12
. . . . . . . . . . . . . . . . . 10.13
. . . . . . . . . . . . . . . . . 10.13
. . . . . . . . . . . . . . . . . 10.13
. . . . . . . . . . . . . . . . . 2A.28
. . . . . . . . . . . . . . . . . 10.13
. . . . . . . . . . . . . . . . . 10.13
. . . . . . . . . . . . . . . . . 10.13
. . . . . . . . . . . . . . . . . . 4A.2
. . . . . . . . . . . . . . . . . . 4F.9
. . . . . . . . . . 3D.4, 4F.9, 6E.4
. . . . . . . . . . . . . . . . . 10.13
. . . . . . . . . . . . . . . . . 10.13
. . . . . . . . . . . . . . . . . . 3D.2
. . . . . . . . . . . . . . . . . . 8.15
. . . . . . . . . . . . . . . . . . 8.16
. . . . . . . . . . . . . . . . . . 8.14
3F.3, 6A.9, 6B.10, 6C.9, 6D.8
. . . . . . . . . . . . . . . . . 10.14
. . . . . . . . . . . . . . . . . . 4A.4
. . . . . . . . . . . . . . . . . 10.14
14-01915-mg
Page 6
03/13/06
Client Guide
Index
Doc 45-3
Exhibit B-1
GMAC-RFC
N
Net worth requirements . . . . . . . . . . .
No Income/No Asset . . . . . . . . . . . . .
No Ratio . . . . . . . . . . . . . . . . . . . . . .
Non Owner-Occupied Property 3. . . . .
Non-arms Length Transaction . . . . . . .
Non-Occupant Co-Borrower . . . . . . . .
Non-Permanent Resident Alien . . . . . .
Non-Permitted Additions . . . . . . . . . .
Non-Solicitation . . . . . . . . . . . . . . . .
Non-Standard Documents . . . . . . . . .
Non-Standard Loan Program . . . . . . .
Non-Taxable Income . . . . . . . . . . . . .
Non-Warrantable Condominiums . . . .
Note . . . . . . . . . . . . . . . . . . . . . . . .
Note Income . . . . . . . . . . . . . . . . . .
Notification . . . . . . . . . . . . . . . . . . . .
Notification of Change in Servicer . . . .
Notification of Changes in Client Status
Notification of Purchase . . . . . . . . . . .
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. . . . . . . . 2.2
. . . . . . 4E.12
. . . . . . 4E.11
. . . . . . . 3A.2
. . . . . . . 3B.5
. . . . . . . 3A.2
. . . . . . . 3A.3
. . . . . . 4F.10
. . . . . . . . 8.4
. 2A.17, 10.14
. . . . . . . 6J.1
. . . . . . . 4D.5
. . 3D.3, 4F.17
. . . . . . 10.14
. . . . . . . 4D.8
. . . . . . . . 8.5
. . . . . . . . 8.8
. . . . . . 2A.28
. . . . . . . 8.14
O
Other Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4D.7
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4G.2
Ownership Interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3A.5
P
Panelized Home . . . . . . . . . . .
Party Wall . . . . . . . . . . . . . . .
Payment Change Date . . . . . . .
PayOff/Liquidation . . . . . . . . . .
Periodic Cap . . . . . . . . . . . . . .
Permanent Resident Alien . . . .
Planned Unit Developments . . .
Portfolio Risk Management . . . .
Post Purchase Sale of Servicing
Pre-cut Home . . . . . . . . . . . . .
Premium . . . . . . . . . . . . . . . .
Price Premium . . . . . . . . . . . .
Primary Borrower . . . . . . . . . .
Primary Mortgage Insurance . .
Prime Rate . . . . . . . . . . . . . . .
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10.14
10.14
10.14
. . 8.6
10.14
. 3A.3
10.15
10.15
10.15
10.15
10.15
10.15
10.16
2A.11
10.16
14-01915-mg
Doc 45-3
Exhibit B-1
Page 7
03/13/06
Client Guide
Index
GMAC-RFC
Program Criteria . . . . . . . . . . . . . . . . . . . . . . . . . .
Progressive Cumulative Lates . . . . . . . . . . . . . . . . .
Proof of Compliance . . . . . . . . . . . . . . . . . . . . . . .
Property Conditions . . . . . . . . . . . . . . . . . . . . . . . .
Property Data . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Property Types . . . . . . . . . . . . . . . . . . . . . . . . . . .
Property Value Documentation Older Than 12 Months
Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Property Value Documentation Requirements . . . . .
Property Value Documentation up to 12 Months From
PUD Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . .
PUD Warranties . . . . . . . . . . . . . . . . . . . . . . . . . .
Purchase Date . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . 10.16
. . . . . . . . . . . . . . . . . . . 10.16
. . . . . . . . . . . . . . . . . . . 2A.18
. . . . . . . . . . . . . . . . . . . 4F.10
. . . . . . . . . . . . . . . . . . . 10.16
. . . . . . . . . . . . . . . . 6B.4, 6C.4
but Less Than 24 Months From Note
. . . . . . . . . . . . . . . . . . . 6I.10
. . . . . . . . . . . . . . . . . . . . 6I.9
Note Date . . . . . . . . . . . 6I.10
. . . . . . . . . . . . . . . . . . . 3F.11
. . . . . . . . . . . . . . . . . . . . 3D.6
. . . . . . . . . . . . . . . . . . . 10.16
Q
Qualified AVM . . . . . .
Qualifying Debt Ratios
Qualifying Prepayment
Qualifying Ratios . . . .
Quality Control . . . . .
......
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Penalty
......
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10.16
4A.10
10.17
. 4B.1
. . 2.9
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. . . . 3B.3
. . . . 8.12
. . . . . 8.3
. . . 10.17
. . . 10.17
. . . 2A.20
4D.6, 6I.5
. . . . . 2.6
. . . 2A.21
. . . 2A.21
. . . 2A.22
. . . . 8.10
. . . 10.17
. . . 2A.28
. . . 10.17
. . . 10.18
S
Sale Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.11, 10.18
14-01915-mg
Page 8
03/13/06
Client Guide
Index
Doc 45-3
Exhibit B-1
GMAC-RFC
Sales Concessions . . . . . . . . . . . . . . . . . . . . . . . .
Sales Concessions or Home-Seller Subsidy . . . . . .
Scheduled Principal Balance . . . . . . . . . . . . . . . . .
Second Mortgage Program . . . . . . . . . . . . . . . . . .
Secondary Financing . . . . . . . . . . . . . . . . . . . . . .
Secondary Or Subordinate Financing . . . . . . . . . .
Section 32 Home Equity Loan . . . . . . . . . . . . . . .
Securitization . . . . . . . . . . . . . . . . . . . . . . . . . . .
Security Instrument . . . . . . . . . . . . . . . . . . . . . .
Selecting Credit Score . . . . . . . . . . . . . . . . . . . . .
Self-Employed Income Earners . . . . . . . . . . . . . . .
Servicer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Servicer Guide . . . . . . . . . . . . . . . . . . . . . . . . . .
Servicing Agent . . . . . . . . . . . . . . . . . . . . . . . . .
Servicing Document Corrections . . . . . . . . . . . . . .
Servicing Documents . . . . . . . . . . . . . . . . . . . . .
Servicing Fee . . . . . . . . . . . . . . . . . . . . . . . . . . .
Servicing Package . . . . . . . . . . . . . . . . . . . . . . . .
Servicing Released . . . . . . . . . . . . . . . . . . . . . . .
Servicing Released Premium (SRP) . . . . . . . . . . . .
Servicing Rights . . . . . . . . . . . . . . . . . . . . . . . . .
Simultaneous Sale of Servicing . . . . . . . . . . . . . .
Simultaneous Transactions . . . . . . . . . . . . . . . . . .
Site Condominium . . . . . . . . . . . . . . . . . . . . . . .
Specific Representations, Warranties and Covenants
Specific Representations, Warranties and Covenants
Standalone Transactions . . . . . . . . . . . . . . . . . . .
State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Stated Income . . . . . . . . . . . . . . . . . . . . . . . . . .
Statistical Property Valuation . . . . . . . . . . . . . . . .
Student Loan . . . . . . . . . . . . . . . . . . . . . . . . . . .
Subservicing . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Substitution Date . . . . . . . . . . . . . . . . . . . . . . . .
Supplemental 125 CLTV Program Information . . . .
Swing Financing . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . 6E.10
. . . . . . . . . . . . . . . . . . . . . 3C.5
. . . . . . . . . . . . . . . . . . . . 10.18
. . . . . . . . . . . . . . . . . . . . 10.18
. . . . . . . . . . . . . . . . . . . . 10.18
. . . . . . . . . . . . . . . . . . . . . 3C.4
. . . . . . . . . . . . . . . . . . . . 10.19
. . . . . . . . . . . . . . . . . . . . 2A.14
. . . . . . . . . . . . . . . . . . . . 10.19
. . . . . . . . . . . . . . . . . . . . . 4A.2
. . . . . . . . . . . . . . . . . . . . . 4D.3
. . . . . . . . . . . . . . . . . . . . 10.19
. . . . . . . . . . . . . . . . . . . . 10.19
. . . . . . . . . . . . . . . . . . . . 10.19
. . . . . . . . . . . . . . . . . . . . . 8.17
. . . . . . . . . . . . . . . . . . . . 10.19
. . . . . . . . . . . . . . . . . . . . 10.20
. . . . . . . . . . . . . . . . . . . . 10.20
. . . . . . . . . . . . . . . . . . . . . . 8.1
. . . . . . . . . . . . . . . . . . . . 10.20
. . . . . . . . . . . . . . . . . . . . 10.20
. . . . . . . . . . . . . . . . . . . . 10.21
. . . . . . . . . . . . . . . . . . . . 10.20
. . . . . . . . . . . . . . . . . . . . 10.21
Concerning Client . . . . . . . 2A.2
Concerning Individual Loans 2A.5
. . . . . . . . . . . . . . . . . . . . 10.21
. . . . . . . . . . . . . . . . . . . . 10.21
. . . . . . . . . . . . . . . . . . . . . 4E.9
. . . . . . . . . . . . . . . . . . . . 10.21
. . . . . . . . . . . . . . . . . . . . . 4B.4
. . . . . . . . . . . . . . . . . . . . . 8.18
. . . . . . . . . . . . . . . . . . . . 10.21
. . . . . . . . . . . . . . . . . . . . 6I.13
. . . . . . . . . . . . . . . . . . . . . 4C.2
T
Tax Service Contracts . . . . . . . . .
Temporary Buydown . . . . . . . . . .
Termination of Automatic Payment
Third-Party Originators . . . . . . . .
Title Insurance . . . . . . . . . . . . . .
Title Vesting . . . . . . . . . . . . . . . .
Townhouse/Row House . . . . . . . .
Trailing or Relocating Co-Borrower
Trash . . . . . . . . . . . . . . . . . . . . .
Trust Income . . . . . . . . . . . . . . .
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. . 8.6
10.21
. . 8.9
2A.19
. 2A.9
10.22
. 3D.1
. 4D.8
4F.10
. 4D.8
14-01915-mg
Doc 45-3
Exhibit B-1
Page 9
03/13/06
Client Guide
Index
GMAC-RFC
U
U.S. Possession or Territory . . . . . . . . .
Unacceptable Property Conditions . . . . .
Unacceptable Sources Of Down Payment
Uniform Instruments . . . . . . . . . . . . . .
Upgrading the Credit Quality . . . . . . . .
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10.22
4F.10
. 4C.4
10.22
4A.11
V
Value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.22
W
Wage Earners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4D.2
Y
Yield/Price Variance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.22
14-01915-mg
Page 10
03/13/06
Client Guide
Index
Doc 45-3
GMAC-RFC
Exhibit B-1