Correspondent Partner Guide - Wintrustmortgage.net

PARTNER GUIDE
Rental income generally cannot be used to qualify the borrower.
C. Investment Property
An investment property is owned but not occupied by the borrower. This
is true regardless of revenue generation. The property must be suitable
for year round rental and occupancy.
The borrower on a loan for an investment property may not be affiliated
in any way with the builder, developer, or seller of the mortgaged
premises.
TRANSACTIONS
A. Purchase
A purchase mortgage loan involves the purchase of a mortgaged property
as defined by a sale and purchase agreement executed by the borrower
and seller, which represents a first and/or second lien on the property.
WINTRUST MORTGAGE requires that the seller is the owner of record.
In purchase transactions where the seller is a corporation, partnership,
or any other business entity, Correspondent must ensure the borrower is
not an owner of the business entity selling the mortgaged premises.
Loans where the purchase agreement has been assigned are not eligible.
A transaction where the property was previously sold within the last 12
months requires scrutiny to ensure the transaction is legitimate. Some
characteristics of fraudulent transactions include but are not limited to
foreclosure bailouts, distressed sales, and inflated values due to stated
improvements that are not supported.
Purchase transactions do not allow for cash back to the borrower at
closing. If the borrower receives a refund of the original cash deposit at
closing, evidence of payment of the deposit is required (e.g., cancelled
check).
Unless restricted by loan program, the borrower may receive cash back
for prorated taxes at closing.
Within limitations imposed by applicable state laws, closing costs may
not be financed as part of a purchase transaction (with the exception of
mortgage insurance).
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