Declining Markets Policy

Properties located in declining markets present additional risk caused by the potential of reduced borrower equity. As such, the following additional restrictions apply when a property is identified by either an AUS or an Appraiser as being in a declining market:

Appraisal:

•	Full Uniform Residential Appraisal Report (URAR), with interior/exterior inspections.

•	Re-certifications of value are ineligible...full, new appraisal required.

Down Payment:

•	Borrowers must make a 10% down payment contribution from personal funds. An additional down payment greater than 5% may come from a gift.

Financed Premium:

•	Ineligible

Ineligible Properties/Loan Types:

•	Attached housing (Condominiums, Townhomes, Co-Ops, etc.)

•	Adjustable Rate Mortgages (ARM)

•	Construction-to-Permanent loans

•	TPO/Wholesale loans

Declining Market Restrictions

•	1-Unit, Primary Residence, Purchase and Rate/Term Refinance (all others ineligible):

o	85% LTV, Loan Amount ≤ $417,000, minimum FICO = 720.

o	Max DTI 41% (back-end)

o	>$417,000 not eligible