Correspondent Partner Guide - Wintrustmortgage.net

PARTNER GUIDE
Subordinate mortgages subject to an interest rate buydown plan
Subordinate mortgages that allow negative amortization
Subordinate mortgages that have wraparound terms
Secondary financing held by the property seller
Tax and judgment liens
Subordinate mortgages that have a prepayment penalty
The terms of any secondary financing must be fully disclosed and
documented in the credit package and must comply with the following:
Mortgage cannot have a maturity date or a call option date of less
than five years, unless it is fully amortizing
Monthly payments must be included in housing and debt ratio
analysis
Scheduled payments must be due on a regular basis
Requires interest at a market rate
Seller Concessions/Contribution Limitations
Any costs that are normally the responsibility of the borrower that are
paid by another individual are considered contributions.
Contributors may include direct participants such as the builder, seller,
developer, or real estate agent. Contributions from someone with whom
the borrower has an established relationship are not considered
financing contributions. These funds are considered gifts and are treated
as such.
Certain amounts of financing contributions are allowed as outlined in the
product guidelines.
Sales Concessions require a downward adjustment to the property’s sales
price by the amount of the sales concession. Sales concessions include
but are not limited to furniture, moving costs, prepayment of HOA fees,
prepayment of the homebuyers mortgage payment, vacations,
automobiles, other items considered to be “giveaways,” assignment of
rent payments, etc.
Excessive Marketing Fees
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