Score Advantage and additional Freddie Mac Changes

Score Advantage

Effective for all locks and submissions received for the Score Advantage program after 5 pm CST on Thursday March 13th, 2008 the minimum fico is being raised to 590. All loans that are currently in the pipeline that are affected by this change must close and fund by April 14th.

Freddie Mac Changes

As Freddie Mac continues to tighten their lending policies we have to make changes to our underwriting guidelines as well, these changes are in addition to changes announced in our previous bulletins. All Freddie Mac programs (except for Home Possible) that had a max LTV/CLTV of 100% is now being reduced to a maximum financing of 97% LTV\CLTV. Homepossible loans as announced in yesterday’s bulletin will require a 700 fico to exceed 97.00% LTV. All loans that are affected by this change must be locked by close of business today and being funded to the borrower by April 14th. Loans that are extended after today are subject to the new guideline restrictions. A list of affected programs is as follows;

• Affordable LPMI
• Freddie LPMI 95.00-100%
• Freedom 100 (discontinued)
• Freddie Mac Fixed Program (40, 30, 20, and 15 year)
• Freddie Mac loans with Subordinate Financing

Please feel free to contact your VP of Wholesale Lending or the Commitment Desk for
further clarification if needed.

Thank you for your continued business!!