NON-DELEGATED FHA STREAMLINE REFINANCE
PRODUCT MATRIX
This product matrix serves as a summary of the FHA Streamline Refinance program in addition to
Lakeview Loan Servicing overlays. Refer to the HUD Handbook 4000.1 for any information not
specified in this product matrix.
Seller shall deliver loans that were originated in accordance with the Single Family Housing Policy
handbook 4000.1 unless otherwise noted in this product matrix.
Non Delegated
FHA Streamline Refinance Mortgage Program
Red indicates a change from a previous matrix.
Overlays to FHA product guidelines are underlined and in italics
About Us
©2022 Lakeview Loan Servicing, LLC provides access to a full range of agency residential mortgage products for
qualified lending institutions and these programs are not applicable to the general public or individual consumers.
Lakeview Loan Servicing, LLC is a member of a family of companies owned or managed by Bayview Asset Management, LLC.
Bayview companies have been managing mortgage assets since 1995. It is the policy of Lakeview Loan Servicing, LLC (NMLS
#391521) to provide services without regard to race, color, religion, national origin, ancestry, age, sex, familial status, or disability.
Contact Us
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Interim Guidance in Response to COVID-19 for Government Programs
Continuity of Income
Borrowers working in industries significantly impacted by the current conditions (e.g. service,
travel, hospitality, etc.) should be given additional scrutiny to determine if this income will
continue into the future and at the same or similar levels. Lenders remain responsible for
ensuring that all borrowers are employed at their disclosed employment through closing.
Forbearance
• Lakeview Loan Servicing will not purchase any loan where the borrower is actively seeking
a forbearance or any loan that is in an “active” forbearance status prior to purchase by
Lakeview Loan Servicing.
• Refer to the Lakeview announcements as posted on the
Lakeview Correspondent website
for full details on flexibilities
Remote Online
Notarization (RON)
Lakeview will not accept the use of remote online notarizations at this time.
In response to the COVID-19 pandemic, the following interim guidance will
supersede current Lakeview guidance listed in this matrix until future notice.
Non Delegated
FHA Streamline Refinance Mortgage Program
Red indicates a change from a previous matrix.
Overlays to FHA product guidelines are underlined and in italics
About Us
©2022 Lakeview Loan Servicing, LLC provides access to a full range of agency residential mortgage products for
qualified lending institutions and these programs are not applicable to the general public or individual consumers.
Lakeview Loan Servicing, LLC is a member of a family of companies owned or managed by Bayview Asset Management, LLC.
Bayview companies have been managing mortgage assets since 1995. It is the policy of Lakeview Loan Servicing, LLC (NMLS
#391521) to provide services without regard to race, color, religion, national origin, ancestry, age, sex, familial status, or disability.
Contact Us
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FHA Mortgage Program
Credit Qualifying and Non Credit Qualifying
Term Credit Score Occupancy
Non-Cash Out Refinance
Minimum 620
(Credit and Non-Credit Qualifying)
Owner-Occupied
Loan Product
Eligible Products/Terms
• GNF310 FHA 30YR Streamlined Refi (Post May 2009)
• GNF311 FHA 30YR Streamlined Refi (Pre May 2009)
• GNF305 FHA 30 YR High Balance
Ineligible Products Types
• 203k Loans
• Any FHA programs/mortgage types identified in the HUD Handbook 4000.1 that are
not specifically allowed in the Eligible Mortgage Types above.
Maximum Loan Amount
FHA Mortgage limits for all areas: https://entp.hud.gov/idapp/html/hicostlook.cfm
Maximum Terms
• The streamline refinance mortgage term is the lesser of:
o 30 years, or
o The remaining term of the mortgage plus 12 years
Loan Purpose
• Credit qualifying streamline refinance
• Non-credit qualifying streamline refinance
• Transactions in the state of Texas subject to 50(a)(6) are not permitted
o Current 50(a)(6) loans may not be refinanced into a non-home equity loan
• Payoff can only include the current FHA loan
• All other liens must be subordinated with a valid subordination agreement
o Outstanding PACE liens (i.e. HERO) may not be included in the loan amount OR
subordinated (See PACE Obligations)
• Streamline of 203(k) permitted, previous Lender must have closed out 203(k).
Loan Amount Calculation
• For owner-occupied Principal Residences, the maximum Base Loan Amount for
Streamline Refinances is:
o the lesser of:
the outstanding principal balance of the existing Mortgage as of the month
prior to mortgage Disbursement; plus:
• interest due on the existing Mortgage*;
• late charges;
• escrow shortages; and
• MIP due on existing Mortgage; or
the original principal balance of the existing Mortgage (including financed
UFMIP);
Non Delegated
FHA Streamline Refinance Mortgage Program
Red indicates a change from a previous matrix.
Overlays to FHA product guidelines are underlined and in italics
About Us
©2022 Lakeview Loan Servicing, LLC provides access to a full range of agency residential mortgage products for
qualified lending institutions and these programs are not applicable to the general public or individual consumers.
Lakeview Loan Servicing, LLC is a member of a family of companies owned or managed by Bayview Asset Management, LLC.
Bayview companies have been managing mortgage assets since 1995. It is the policy of Lakeview Loan Servicing, LLC (NMLS
#391521) to provide services without regard to race, color, religion, national origin, ancestry, age, sex, familial status, or disability.
Contact Us
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o
less any refund of UFMIP
* may not include delinquent interest, suspended mortgage payments as a result of payment
forbearance or fax fees/FedEx fee
*UFMIP must be entirely financed into the mortgage or paid entirely in cash. Partial
payments are not permitted.
• ***County Limits can be exceeded
Seasoning Requirements
• On the note date of the refinance loan, the following criteria must apply:
o the borrower made at least six consecutive monthly payments on the loan being
refinanced, referred to hereinafter as the Initial Loan, beginning with the payment
made on the first payment due date; and
o the first payment due date of the refinance loan occurs no earlier than 210 days
after the first payment due date of the Initial Loan
• On the date of the FHA case number assignment, the following criteria must
apply:
o the Borrower must have made at least six payments on the FHA-insured
Mortgage that is being refinanced (where the FHA insured Mortgage has been
modified, the Borrower must have made at least six payments under the
Modification Agreement);
o at least six full months must have passed since the first payment due date of the
Mortgage that is being refinanced;
o at least 210 Days must have passed from the Funding Date of the Mortgage that
is being refinanced; and
o if the Borrower assumed the Mortgage that is being refinanced, they must have
made six payments since the time of assumption
• Where a loan was under a Forbearance Plan and payments have not been made,
such missed payments are not counted towards such minimum.
Occupancy
Owner Occupied Primary Residences Only
Proof of Occupancy
• Primary Residence
o Obtain employment documentation (i.e. paystub) that includes the subject
property address; or
o Utility bill (electric, water, natural gas, heating oil or landline phone) to evidence
that the borrower has occupied the subject property as their principal residence
o Direct electronic verification of employment by a Third Party Verification (TPV)
vendor verifying the Borrower’s address is the same as that of the subject
Property is not permitted
Temporary Buydowns
Not Permitted
Eligibility
Borrower Eligibility
• Refer to HUD Handbook 4000.1
• Acceptable Residency Statuses:
o US Citizen(s)
o Non-US Citizen(s) who are lawfully present in the United States. This includes
both Permanent Qualified Resident Aliens and Non-Permanent Qualified Aliens
Non Delegated
FHA Streamline Refinance Mortgage Program
Red indicates a change from a previous matrix.
Overlays to FHA product guidelines are underlined and in italics
About Us
©2022 Lakeview Loan Servicing, LLC provides access to a full range of agency residential mortgage products for
qualified lending institutions and these programs are not applicable to the general public or individual consumers.
Lakeview Loan Servicing, LLC is a member of a family of companies owned or managed by Bayview Asset Management, LLC.
Bayview companies have been managing mortgage assets since 1995. It is the policy of Lakeview Loan Servicing, LLC (NMLS
#391521) to provide services without regard to race, color, religion, national origin, ancestry, age, sex, familial status, or disability.
Contact Us
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as defined in the Lakeview Loan Servicing Seller Guide or the Residency and
Eligibility Guide.
o Note: If closing in a Trust, the Trust beneficiaries must meet one of the above
residency statuses
o For DACA status recipients, if the EAD expires within one year but there’s a prior
history of residency status renewals, the borrower is eligible. If there is no history
of renewals, the borrower is ineligible.
• POAs are not allowed on cash-out transactions
o Life Estates are not permitted
Identity of Interest
Refer to HUD Handbook 4000.1
Excluded Parties –
LDP/GSA Searches
• FHA loans require confirmation that companies or individuals involved in the
origination or underwriting of a mortgage transaction are not on the Freddie Mac
Exclusionary List, General Services Administration’s (GSA’s) Excluded Party List or
the HUD Limited Denial Participation (LDP). Regardless of the reason for the party
being excluded, any party to the transaction included on either list will result in the
loan being ineligible.
• All name variations found throughout the loan file must be run when performing the
searches. The search must be run on the following parties in the transaction:
o Borrowers
o Title Company
o Closing Attorney/ Settlement Agent/ Escrow Company
CAIVRS
Not required
FHA Case Numbers
FHA case numbers are auto-cancelled after 6 months. Loan must close prior to
cancellation.
Social Security Number
Evidence of social security number is required (SS card, printed recent W2/1099,
transcripts)
Application Information
• Credit Qualifying:
o Full application is required to be completed with Borrower’s legal name
• Non-Credit Qualifying:
o Must contain all subject property information
o Sections 1c – Gross Monthly Income (Employer information is required), 1e, 2a,
2b, 2c, 2d, 3b, 3c, and 4c of the URLA are not required provided all other
required information is completed
o If Section 5: Declarations (G) through (M) are completed on the application, it is
not required to be reviewed or considered
o Section 5: Declarations A & F must be completed
o Borrower information to be completed with Borrower’s legal name and contact
information
Employer information required
Income information is not required
If cash is needed to close application must note asset information
Non Delegated
FHA Streamline Refinance Mortgage Program
Red indicates a change from a previous matrix.
Overlays to FHA product guidelines are underlined and in italics
About Us
©2022 Lakeview Loan Servicing, LLC provides access to a full range of agency residential mortgage products for
qualified lending institutions and these programs are not applicable to the general public or individual consumers.
Lakeview Loan Servicing, LLC is a member of a family of companies owned or managed by Bayview Asset Management, LLC.
Bayview companies have been managing mortgage assets since 1995. It is the policy of Lakeview Loan Servicing, LLC (NMLS
#391521) to provide services without regard to race, color, religion, national origin, ancestry, age, sex, familial status, or disability.
Contact Us
85-LAKEVIEW (855-253-8439)
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Credit
Underwriting Method
• Loan must be reviewed by an approved DE Underwriter, individual DE CHUMS
number used for Approval/Denial
• Use of AUS is not permitted, all loans must be manually underwritten
• All Streamline mortgages must meet the Net Tangible Benefit guidelines
o If there is a reduction in term, the combined P&I and MIP may not increase more
than $50
• A Non-Credit qualifying streamline loan must be Credit qualified when:
o The deletion of a borrower will trigger a due on sale clause
o following the assumption that it;
Occurred less than 6 months ago, and
Does not contain restrictions (i.e. due on sale) limiting assumption only to
creditworthy borrower
• For Credit Qualifying Loans: Loans that are identified as an indemnification case
by FHA Connection are ineligible
Non-Traditional Credit
Use of non-traditional credit is not permitted
Mortgage History
• Credit Qualifying:
o Verification the loan is current at time of closing
o Prior to case number assignment, 0x30 in past 6 months for all mortgages
(subject and/or other REO properties) and no more than one 30-day late for the
previous 6 months (last 7-12 months) for all mortgages (subject and/or other REO
properties). All payments secured against the subject property must have been
made within the month due.
o For any mortgage not reported on the credit report refer to the HUD Handbook
4000.1
• Non-Credit Qualifying:
o Verification the loan is current at time of closing
o Prior to case number assignment, 0x30 in past 6 months and no more than one
30-day late in the previous 6 months (last 7-12 months) for all mortgages on the
subject property. All payments must have been made within the month due.
o For any subordinate mortgage lien attached to the property, an acceptable 12-
month Verification of Mortgage payment history directly from the servicer or credit
report is required
• Private Party VOM/VOR as a stand-alone document is not permitted, 12 months
cancelled checks are required to document the payment history
Significant Derogatory
Credit
• Credit Qualifying:
o Refer to HUD Handbook 4000.1
o 2 years elapsed since completion or discharge of Chapter 7 or Chapter 13
Bankruptcy, to case number assignment date
o 3 years elapsed since completion of Foreclosure, Deed in Lieu or Short Sale, to
case number assignment date
• Non-Credit Qualifying:
o The waiting period and re-establishment of credit requirements for significant
derogatory credit are not required
o Loans in an active BK are eligible for financing if payment history requirements
are met
Non Delegated
FHA Streamline Refinance Mortgage Program
Red indicates a change from a previous matrix.
Overlays to FHA product guidelines are underlined and in italics
About Us
©2022 Lakeview Loan Servicing, LLC provides access to a full range of agency residential mortgage products for
qualified lending institutions and these programs are not applicable to the general public or individual consumers.
Lakeview Loan Servicing, LLC is a member of a family of companies owned or managed by Bayview Asset Management, LLC.
Bayview companies have been managing mortgage assets since 1995. It is the policy of Lakeview Loan Servicing, LLC (NMLS
#391521) to provide services without regard to race, color, religion, national origin, ancestry, age, sex, familial status, or disability.
Contact Us
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Non-Borrowing Spouse
Debt in
Community Property States
(For Credit Qualifying
Loans Only)
• Non-Borrowing Spouse Debt refers to debts owed by a spouse that are not owed by,
or in the name of the Borrower
• If the Borrower resides in a community property state or the Property being insured
is located in a community property state, debts of the non-borrowing spouse must be
included in the Borrower’s qualifying ratios, except for obligations specifically
excluded by state law
• The non-borrowing spouse’s credit history is not considered a reason to deny a
mortgage application
• Required Documentation:
o Verify and document the debt of the non-borrowing spouse
o The Underwriter must make a note in the file referencing the specific state law
that justifies the exclusion of any debt from consideration
o Obtain a credit report for the non-borrowing spouse in order to determine the
debts that must be counted in the DTI ratio
• Non-Borrowing Spouse’s Derogatory Credit – Refer to HUD Handbook 4000.1
• The Community Property States are: Arizona, California, Idaho, Louisiana, Nevada,
New Mexico, Texas, Washington and Wisconsin.
Qualifying Ratios (For
Credit Qualifying Loans
Only)
*Borrower is to be qualified
at the note rate for an FHA
fixed streamline.
Max Qualifying
Ratios (%)
Acceptable Compensating Factors
31/43
No compensating factors required
37/47
One of the follo wing:
o Verified and documented liquid cash reserves equal to at
least three total monthly mortgage payments (1–2 units)
or six total monthly mortgage payments (3–4 units).
o New total monthly mortgage payment is not more than
$100 or 5% higher than previous total monthly housing
payment, whichever is less; and verified and documented
twelve month housing payment history (1X30 only).
o Sufficient Residual Income as calculated per VA
requirements
40/40
Borrower with established credit and open credit lines carries
no discretionary debt. Monthly housing payment is only open
installment account and revolving credit is paid off monthly.
40/50
Two of the follo wing:
o Verified and documented liquid cash reserves equal to at
least three total monthly mortgage payments (1–2 units)
or six total monthly mortgage payments (3–4 units).
o New total monthly mortgage payment is not more than
$100 or 5% higher than previous total monthly housing
payment, whichever is less; and verified and documented
twelve month housing payment history (1X30 only).
o Sufficient Residual Income as calculated per VA
requirements
o Verified and documented additional income that is not
considered effective income. Overtime and bonus income
can be cited as a compensating factor if the mortgagee
verifies and documents that the borrower has received
this income for at least one year but less than two years,
and it will likely continue. Part-time and seasonal income
can be cited as a compensating factor if the mortgagee
verifies and documents that the borrower has worked the
part-time or seasonal job uninterrupted for at least one
year but less than two years, and plans to continue.
Non Delegated
FHA Streamline Refinance Mortgage Program
Red indicates a change from a previous matrix.
Overlays to FHA product guidelines are underlined and in italics
About Us
©2022 Lakeview Loan Servicing, LLC provides access to a full range of agency residential mortgage products for
qualified lending institutions and these programs are not applicable to the general public or individual consumers.
Lakeview Loan Servicing, LLC is a member of a family of companies owned or managed by Bayview Asset Management, LLC.
Bayview companies have been managing mortgage assets since 1995. It is the policy of Lakeview Loan Servicing, LLC (NMLS
#391521) to provide services without regard to race, color, religion, national origin, ancestry, age, sex, familial status, or disability.
Contact Us
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Employment/Income
Employment Verification
• For Non-Credit Qualifying Loans:
o For salaried employees the verbal verification of employment must be completed
within 10 calendar days prior to the note date
o For self
‐
employed borrowers the verification of evidence of the existence of the
business to be completed within 120 days prior to the note date
• For Credit Qualifying Loans:
o Employment documentation must comply with the HUD Handbook 4000.1
o Verbal Verification of Employment:
For salaried employees, the verbal or electronic re-verification of employment
must be completed within 10 calendar days prior to the note date
For self
‐
employed borrowers the verbal verification of employment must be
completed within 120 calendar days prior to the note date
For electronic re-verifications, the verification must evidence that the
information in the third party vendor’s database was no more than 30 days old
as of the note date
o Self Employed:
Loans utilizing a COVID-19 related economic event (as defined by ML 2022-
09) for self-employment income will be second level reviewed.
The Mortgagee must obtain complete individual federal income tax returns for
the most recent two years, including all schedules
The Mortgagee must obtain the Borrower’s business tax returns for the most
recent two years unless the following criteria are met:
• individual federal income tax returns show increasing Self-Employment
Income over the past two years;
• funds to close are not coming from business accounts; and
• the Mortgage to be insured is not a cash-out refinance
A year-to-date P&L will be required for all self-employed income if more than a
calendar quarter has elapsed since date of most recent tax return was filed.
(Except Schedule C income)
Manually downgraded loans; a business credit report is required for
Corporations and S-Corporations
Secondary education enrollment can only be used in verifying employment
history if the education is job specific and the employment is full-time and
salaried. Must have a 12 month history of employment
Income Verification – Credit
Qualifying
• Income documentation must comply with the HUD Handbook 4000.1
• All sources of qualifying income must be legal in accordance with all applicable
federal, state and local laws, rules and regulation, without conflict (i.e. marijuana
related income of any source is not permitted)
• Transcript Requirements:
o W2/1099 or tax transcripts are not required for a borrower when all income for
that borrower is derived from W-2 wage earner and/or 1099 fixed income sources
o Tax transcripts are required in the following circumstances:
When tax returns are used to qualify a borrower, the number of years provided
must be based on the AUS findings. Income verified via tax returns includes
but is not limited to the examples listed below.
• Self-employment income
• Rental Income
• Other Income Sources (i.e. Dividend Interest, Capital Gains, Alimony etc.)
Employment by Family Members
Non Delegated
FHA Streamline Refinance Mortgage Program
Red indicates a change from a previous matrix.
Overlays to FHA product guidelines are underlined and in italics
About Us
©2022 Lakeview Loan Servicing, LLC provides access to a full range of agency residential mortgage products for
qualified lending institutions and these programs are not applicable to the general public or individual consumers.
Lakeview Loan Servicing, LLC is a member of a family of companies owned or managed by Bayview Asset Management, LLC.
Bayview companies have been managing mortgage assets since 1995. It is the policy of Lakeview Loan Servicing, LLC (NMLS
#391521) to provide services without regard to race, color, religion, national origin, ancestry, age, sex, familial status, or disability.
Contact Us
85-LAKEVIEW (855-253-8439)
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Handwritten pay stubs/W-2s
Amended tax returns have been filed
• When amended tax returns are utilized for documenting qualifying income
for approval purposes and the borrower could not qualify with the prior tax
return income, then the following would need to be adhered to (all
employment/ income types):
o Tax returns amended within 90 days prior to the application date or at
any time during the loan process are not permitted
o Tax returns amended greater than 90 days prior to the application date
are permitted. Both the original and amended return must be
examined for consistency to determine whether the use of the
amended return is warranted and is supportive of borrower’s overall
income profile. The following documentation will be required:
A letter of explanation from the borrower detailing the reason for
re-filing;
Evidence of re-filing via tax transcript (Record of Account)
supporting the amended return;
Payment of and evidence of the ability to pay any applicable tax (if
a payment plan for taxes due is accepted, evidence of initial
payment must be documented)
• A 4506
‐
C is required to be signed by all borrowers at time of application and at
closing for all transactions
• For future income, paystubs are required prior to closing
• Mortgage Credit Certificates are not permitted
Assets/Reserves
Assets
• One month bank statement reflecting a beginning & ending balance required. If bank
statement does not provide the beginning and ending balances, two months
consecutive statements are required.
• At the time of closing, verify Borrower’s TOTAL funds to close if the funds needed
to close exceed the total Mortgage Payment of the new Mortgage. (Example-if funds
to close $1,000 and the new total Mortgage Payment is $800, verification of ALL
$1,000 is required)
The Borrower’s total Mortgage Payment includes:
Principal and Interest (P&I);
real estate taxes;
hazard insurance;
flood insurance as applicable;
Mortgage Insurance Premium;
HOA or condominium association fees or expenses;
Ground Rent;
special assessments;
payments for any acceptable secondary financing; and
any other escrow payments
• Business Funds may be used towards closing costs when the borrower is 100%
owner of the business
o A CPA or accountant to confirm the following on letterhead:
Non Delegated
FHA Streamline Refinance Mortgage Program
Red indicates a change from a previous matrix.
Overlays to FHA product guidelines are underlined and in italics
About Us
©2022 Lakeview Loan Servicing, LLC provides access to a full range of agency residential mortgage products for
qualified lending institutions and these programs are not applicable to the general public or individual consumers.
Lakeview Loan Servicing, LLC is a member of a family of companies owned or managed by Bayview Asset Management, LLC.
Bayview companies have been managing mortgage assets since 1995. It is the policy of Lakeview Loan Servicing, LLC (NMLS
#391521) to provide services without regard to race, color, religion, national origin, ancestry, age, sex, familial status, or disability.
Contact Us
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Evidence that the borrower has full use of the funds and no repayment is
required
A cash flow analysis on the business and,
CPA letter explaining use of business funds does not negatively affect the
business
• A written VOD as a stand-alone document is not acceptable. Full asset statements
are required.
o A system generated automated VOD may be used as stand-alone documentation
if provided by a verifiable institutional bank
Ineligible Asset Type
• Cash on Hand
• Custodial Accounts for minors
• Pooled Funds
• Cryptocurrency (i.e. bitcoin)
Reserves Requirements
(For Credit Qualifying
Loans Only)
• 1 and 2 Unit Properties. Reserves must equal or exceed one total monthly mortgage
payment.
• 3 and 4 Unit Properties. Reserves must equal or exceed three total monthly
mortgage payments.
Subordinate Financing
Subordinate Financing
• If subordinate financing remains in place
o No maximum CLTV
o CLTV is based on the original appraised value of the property
o CLTV is calculated by taking the original FHA base loan amount (the original FHA
principal balance excluding financed UFMIP), adding all other financed liens still
outstanding, and dividing by the appraised value
o The Second Mortgage Note is not required
• ***The lender must use the maximum accessible credit limit of the existing
subordinate lien to calculate the CLTV ratio
Down Payment & Closing
Costs Assistance
Subordinate Financing
Not permitted
Property/Appraisal
Eligible Property Types
• Single Family Detached
• Single Family Attached
• Single Family with Accessory Dwelling Unit
• 2-4 Unit Detached/Attached
• Mixed Use
• PUDs
• Low and High-Rise Condominiums – must be FHA Approved
• Rural Properties – property must be residential in nature
• Leaseholds
• Land Trust
Ineligible Property Types
• Manufactured Homes
• Mobile Homes
• Cooperatives
• Condotels
Non Delegated
FHA Streamline Refinance Mortgage Program
Red indicates a change from a previous matrix.
Overlays to FHA product guidelines are underlined and in italics
About Us
©2022 Lakeview Loan Servicing, LLC provides access to a full range of agency residential mortgage products for
qualified lending institutions and these programs are not applicable to the general public or individual consumers.
Lakeview Loan Servicing, LLC is a member of a family of companies owned or managed by Bayview Asset Management, LLC.
Bayview companies have been managing mortgage assets since 1995. It is the policy of Lakeview Loan Servicing, LLC (NMLS
#391521) to provide services without regard to race, color, religion, national origin, ancestry, age, sex, familial status, or disability.
Contact Us
85-LAKEVIEW (855-253-8439)
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Version V22.2
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• Hotel Condominiums
• Timeshares
• Working Farms and Ranches
• Unimproved Land
• Group Homes
• Geodesic Domes
• Properties encumbered by PACE (i.e. HERO) obligations (effective with case
numbers assigned on or after 01/06/18)
Appraisal Requirements
• Not required
• Address to be used must be legal address confirmed by a tax bill
Condos/PUDs
Refer to HUD Handbook 4000.1
Disaster Area
Requirements
• Refer to the Disaster Guidelines in the Lakeview Loan Servicing Seller Guide for
requirements pertaining to properties impacted by a disaster in:
o FEMA Major Disaster Declarations with designated counties eligible for
Individual Assistance (IA);
o Areas where FEMA has not made a disaster declaration, but Lakeview Loan
Servicing or an Investor (Fannie Mae, Freddie Mac, FHA, USDA or the Veterans
Administration) has determined that there may be an increased risk of loss due to
a disaster;
o Areas where the Seller has reason to believe that a property might have been
damaged in a disaster
• Correspondent lenders are responsible for monitoring the Disaster Declaration File
and the FEMA Website including the FEMA Declarations Summary on an ongoing
basis to ensure that the property is not located in an area impacted by a disaster
Leased Solar Panels |
Power Purchase
Agreements
• A Property that contains leased equipment, or operates with a leased energy system
or Power Purchase Agreement (PPA), may be eligible for FHA-insured financing but
only when such agreements are free of restrictions that prevent the Borrower from
freely transferring the Property
• Such agreements are acceptable, provided they do not cause a conveyance
(ownership transfer) of the insured Property by the Borrower to:
o be void, or voidable by a third party;
o be the basis of contractual liability of the Borrower (including rights of first refusal,
pre-emptive rights or options related to a Borrower’s efforts to convey);
o terminate or be subject to termination all or part of the interest held by the
Borrower;
o be subject to the consent of a third party;
o be subject to limits on the amount of sales proceeds a Borrower can retain (e.g.,
due to a lien, “due on sale” clause, etc.);
o be grounds for accelerating the insured Mortgage; or
o be grounds for increasing the interest rate of the insured Mortgage
• Any restrictions resulting from provisions of the lease or PPA do not conflict with
FHA regulations unless they include provisions encumbering the Real Property or
restricting the transfer of the Real Property
• Legal restrictions on conveyance of Real Property (i.e., the house) that could require
the consent of a third party (e.g., energy provider, system owner, etc.), include but
are not limited to, credit approval of a new purchaser before the seller can convey
Non Delegated
FHA Streamline Refinance Mortgage Program
Red indicates a change from a previous matrix.
Overlays to FHA product guidelines are underlined and in italics
About Us
©2022 Lakeview Loan Servicing, LLC provides access to a full range of agency residential mortgage products for
qualified lending institutions and these programs are not applicable to the general public or individual consumers.
Lakeview Loan Servicing, LLC is a member of a family of companies owned or managed by Bayview Asset Management, LLC.
Bayview companies have been managing mortgage assets since 1995. It is the policy of Lakeview Loan Servicing, LLC (NMLS
#391521) to provide services without regard to race, color, religion, national origin, ancestry, age, sex, familial status, or disability.
Contact Us
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Version V22.2
08.12.22 Page 12 of 18
the Real Property, unless such provisions may be terminated at the option of, and
with no cost to, the owner
• If an agreement for an energy system lease or PPA could cause restriction upon
transfer of the house, the Property is subject to impermissible legal restrictions and
is generally ineligible for FHA insurance
Solar Lease or Power Purchase Payments are not included as a debt in the borrower’s
qualifying ratios
Escrow Holdbacks
Refer to HUD Handbook 4000.1
Deed Restricted Properties
Refer to HUD Handbook 4000.1
Geographic Restrictions
• The following states are not eligible: New York
• Properties located outside of the United States or in a Territory, Province or
Commonwealth; including, but not limited to properties in Guam, Puerto Rico, the
Virgin Islands, the Commonwealth of the Northern Mariana Islands or American
Samoa are not permitted.
Special Restrictions
High Cost Loans
Lakeview will not purchase High Cost Loans
Higher Priced Mortgage
Loans (HPML)
Not permitted
Adding and Removing
Borrowers (For Non-Credit
Qualifying Loans Only)
• A borrower maybe added to a loan with no a credit review
• A Borrower on the Mortgage to be paid may be removed from title and new
Mortgage in cases of divorce, legal separation or death when:
o the divorce decree or legal separation agreement awarded the Property and
responsibility for payment to the remaining Borrower, if applicable; and
o the remaining Borrower can demonstrate that they have solely made the
Mortgage Payments for a minimum of six months prior to case number
assignment.
Special Restrictions
• If approval of a condominium project has been withdrawn, FHA will insure only
streamline refinances without appraisals for that condominium project
• An eligible investor that has a financial interest in more than seven rental units, as
described in 24 CFR 203.42, may only refinance without appraisals
• No-cost refinances, in which the lender charges a premium interest rate to defray the
borrower’s closing costs and/or prepaid items, are permitted
• A transaction for the purpose of reducing the mortgage term must be underwritten
and closed as a rate and term (no cash-out) refinance transaction
Insurance
Mortgage Insurance
Refer to FHA’s MIP Calculation
Non Delegated
FHA Streamline Refinance Mortgage Program
Red indicates a change from a previous matrix.
Overlays to FHA product guidelines are underlined and in italics
About Us
©2022 Lakeview Loan Servicing, LLC provides access to a full range of agency residential mortgage products for
qualified lending institutions and these programs are not applicable to the general public or individual consumers.
Lakeview Loan Servicing, LLC is a member of a family of companies owned or managed by Bayview Asset Management, LLC.
Bayview companies have been managing mortgage assets since 1995. It is the policy of Lakeview Loan Servicing, LLC (NMLS
#391521) to provide services without regard to race, color, religion, national origin, ancestry, age, sex, familial status, or disability.
Contact Us
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Version V22.2
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Other Considerations
Age of Documents
• All credit documents must be dated within 120 days of the disbursement date;
including credit reports as well as employment, income and asset documents
• Preliminary Title Policies must be no more than 180 days old on the date that the
note is signed
Assignment of Mortgage
All loans must be registered with MERS at the time of delivery to Lakeview. The MERS
transfer of beneficial rights and transfer of servicing rights must be initialed by the
Seller within 7 calendar days of purchase date. Refer to the Seller Guide for transfer
requirements.
Title | Vesting
• The Mortgagee must obtain evidence of prior ownership when a Property was sold
within 12 months of the case number assignment date. The Mortgagee must review
the evidence of prior ownership to determine any undisclosed Identity-of-Interest
transactions.
Eligible Vesting Types:
• Land Trust
• Leasehold
• Living trusts permitted when property is owner occupied. Refer to
HUD Handbook
4000.1
Ineligible Vesting Types:
o Properties vested in an LLC are not permitted
Power of Attorney
• Please adhere to the Power Of Attorney requirements within the Lakeview Seller
Guide for transactions using a POA
• Not permitted for borrowers on vacation or short term business trips
• The initial loan application must be signed by all borrowers
Escrow Waivers
Escrow accounts for property taxes, homeowner’s insurance and flood insurance (if
applicable) are required on all loans
Net Tangible Benefit for
FHA case numbers
assigned prior to 1/24/2022
The Underwriter must determine that there is a net tangible benefit to the borrower as
a result of the streamline refinance transaction.
Net tangible benefit is defined as:
o A reduced Combined Rate,
o A reduced Term, and/or
o A change from an ARM to a fixed rate Mortgage that results in a financial benefit
to the Borrower
Reduction in Term
The net tangible benefit test is met if:
o The remaining amortization period of the existing Mortgage is reduced; (Ex:
Original loan term 30 years, term remaining 24 years, NTB is met if new term is
less than 24 years at the time of closing)
Non Delegated
FHA Streamline Refinance Mortgage Program
Red indicates a change from a previous matrix.
Overlays to FHA product guidelines are underlined and in italics
About Us
©2022 Lakeview Loan Servicing, LLC provides access to a full range of agency residential mortgage products for
qualified lending institutions and these programs are not applicable to the general public or individual consumers.
Lakeview Loan Servicing, LLC is a member of a family of companies owned or managed by Bayview Asset Management, LLC.
Bayview companies have been managing mortgage assets since 1995. It is the policy of Lakeview Loan Servicing, LLC (NMLS
#391521) to provide services without regard to race, color, religion, national origin, ancestry, age, sex, familial status, or disability.
Contact Us
85-LAKEVIEW (855-253-8439)
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Version V22.2
08.12.22 Page 14 of 18
o
The combined principal, interest and MIP payment of the new Mortgage does not
exceed the combined principal, interest and MIP of the refinanced Mortgage by
more than $50, and
o Meets below grid For Refinances with a Term Reduction
Combined rate refers to the interest rate on the mortgage plus the Mortgage Insurance Premium
(MIP) rate. The lender must determine that there is a net tangible benefit to the borrower outlined as
follows:
For Refinances without a Term Reduction:
To
From Fixed Rate
New Combined Rate
One-Year ARM
New Combined Rate
Hybrid ARM
New Combined Rate
Fixed Rate
At least 0.5 percentage
points below the prior
Combined Rate.
At least 2 percentage
points below the prior
Combined Rate.
At least 2 percentage
points below the prior
Combined Rate.
Any ARM With Less
Than 15 Months to
Next Payment
Change Date
No more than 2
percentage points
above the prior
Combined Rate.
At least 1 percentage
point below the prior
Combined Rate.
At least 1 percentage
point below the prior
Combined Rate.
Any AR M W ith
Greater T han or Equal
to 15 Months to Next
Payment Change
Date
No more than 2
percentage points
above the prior
Combined Rate.
At least 2 percentage
points below the prior
Combined Rate.
At least 1 percentage
point below the prior
Combined Rate.
For Refinances with a Term Reduction:
To
From Fixed Rate
New Combined Rate
One-Year ARM
New Combined Rate
Hybrid ARM
New Combined Rate
Fixed Rate Below the prior
Combined Rate.
N/A N/A
Any ARM With Less
Than 15 Months to
Next Payment
Change Date
No more than 2
percentage points
above the prior
Combined Rate.
N/A N/A
Any AR M W ith
Greater T han or
Equal to 15 Months
to Next Payment
Change Date
No more than 2
percentage points
above the prior
Combined Rate.
N/A N/A
Non Delegated
FHA Streamline Refinance Mortgage Program
Red indicates a change from a previous matrix.
Overlays to FHA product guidelines are underlined and in italics
About Us
©2022 Lakeview Loan Servicing, LLC provides access to a full range of agency residential mortgage products for
qualified lending institutions and these programs are not applicable to the general public or individual consumers.
Lakeview Loan Servicing, LLC is a member of a family of companies owned or managed by Bayview Asset Management, LLC.
Bayview companies have been managing mortgage assets since 1995. It is the policy of Lakeview Loan Servicing, LLC (NMLS
#391521) to provide services without regard to race, color, religion, national origin, ancestry, age, sex, familial status, or disability.
Contact Us
85-LAKEVIEW (855-253-8439)
www.lakeviewcorrespondent.com
Version V22.2
08.12.22 Page 15 of 18
Net Tangible Benefit for
FHA case numbers
assigned on or after
1/24/2022
The Underwriter must determine that there is a net tangible benefit to the borrower as
a result of the streamline refinance transaction.
Net tangible benefit is defined as:
o A reduced Combined Rate,
o A reduced Term, and/or
o A change from an ARM to a fixed rate Mortgage that results in a financial benefit
to the Borrower
Reduction in Term greater than three (3) years
The net tangible benefit test is met if:
o The remaining amortization period of the existing Mortgage is reduced; (Ex:
Original loan term 30 years, term remaining 24 years, NTB is met if new term is
less than 21 years at the time of closing)
o The combined principal, interest and MIP payment of the new Mortgage does not
exceed the combined principal, interest and MIP of the refinanced Mortgage by
more than $50, and
o Meets below grid For Refinances with a Term Reduction greater than three
(3) years.
Combined rate refers to the interest rate on the mortgage plus the Mortgage Insurance Premium
(MIP) rate. The lender must determine that there is a net tangible benefit to the borrower outlined as
follows:
For Refinances without a Term Reduction or with a term reduction less than three
(3) years:
To
From Fixed Rate
New Combined Rate
One-Year ARM
New Combined Rate
Hybrid ARM
New Combined Rate
Fixed Rate At least 0.5 percentage
points below the prior
Combined Rate.
At least 2 percentage
points below the prior
Combined Rate.
At least 2 percentage
points below the prior
Combined Rate.
Any ARM With Less
Than 15 Months to
Next Payment
Change Date
No more than 2
percentage points
above the prior
Combined Rate.
At least 1 percentage
point below the prior
Combined Rate.
At least 1 percentage
point below the prior
Combined Rate.
Any AR M W ith
Greater T han or Equal
to 15 Months to Next
Payment Change
Date
No more than 2
percentage points
above the prior
Combined Rate.
At least 2 percentage
points below the prior
Combined Rate.
At least 1 percentage
point below the prior
Combined Rate.
For Refinances with a Term Reduction of three (3) years or more:
To
From Fixed Rate One-Year ARM Hybrid ARM
Non Delegated
FHA Streamline Refinance Mortgage Program
Red indicates a change from a previous matrix.
Overlays to FHA product guidelines are underlined and in italics
About Us
©2022 Lakeview Loan Servicing, LLC provides access to a full range of agency residential mortgage products for
qualified lending institutions and these programs are not applicable to the general public or individual consumers.
Lakeview Loan Servicing, LLC is a member of a family of companies owned or managed by Bayview Asset Management, LLC.
Bayview companies have been managing mortgage assets since 1995. It is the policy of Lakeview Loan Servicing, LLC (NMLS
#391521) to provide services without regard to race, color, religion, national origin, ancestry, age, sex, familial status, or disability.
Contact Us
85-LAKEVIEW (855-253-8439)
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Version V22.2
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New Combined Rate
New Combined Rate
New Combined Rate
Fixed Rate Below the prior
Combined Rate.
N/A N/A
Any ARM With Less
Than 15 Months to
Next Payment
Change Date
No more than 2
percentage points
above the prior
Combined Rate.
N/A N/A
Any AR M W ith
Greater T han or
Equal to 15 Months
to Next Payment
Change Date
No more than 2
percentage points
above the prior
Combined Rate.
N/A N/A
Principal Curtailments
• Borrower cannot get more than $500 cash back
o If subject property is located in TX no cash back is allowed
• Cash back is not affected by refund of escrow
• When borrower is getting more than $500 cash back a principal curtailment may be
used to reduce the principal balance
Recently Listed Properties
Listing must have been cancelled or expired prior to the application date, and the
borrower must confirm their intent to occupy the subject for Owner Occupied
transactions. In all instances, careful consideration should be given to the listing price
and appraised value to be sure the value is supported.
Limitations on Financed
Properties
Maximum exposure of two (2) Lakeview financed loans to any one borrower in a
Condo or PUD development
Required Documentation
• Original signed application must be received for underwriting reflecting borrower’s
legal name
• Borrower(s) and interviewer complete the initial URLA and initial form HUD 92900-
A, HUD Addendum to Uniform Residential Loan Application
• FHA case # assignment/Netting information
• Current Payoff showing loan is current
• Initial Loan Estimate
• Important Notice to Homebuyer
• Notice to Homeowners
• Informed Choice Disclosure
• ECOA
• Borrower’s Authorization Form
• Copy of valid government-issued photo identification for each borrower
• All other required disclosures
• To verify the type, term and borrowers on the loan being paid off, the following
documentation will be acceptable:
• Copy of the prior Note
Non Delegated
FHA Streamline Refinance Mortgage Program
Red indicates a change from a previous matrix.
Overlays to FHA product guidelines are underlined and in italics
About Us
©2022 Lakeview Loan Servicing, LLC provides access to a full range of agency residential mortgage products for
qualified lending institutions and these programs are not applicable to the general public or individual consumers.
Lakeview Loan Servicing, LLC is a member of a family of companies owned or managed by Bayview Asset Management, LLC.
Bayview companies have been managing mortgage assets since 1995. It is the policy of Lakeview Loan Servicing, LLC (NMLS
#391521) to provide services without regard to race, color, religion, national origin, ancestry, age, sex, familial status, or disability.
Contact Us
85-LAKEVIEW (855-253-8439)
www.lakeviewcorrespondent.com
Version V22.2
08.12.22 Page 17 of 18
FHA Mortgage Insurance Premium
FHA Mortgage
Insurance
Premium (MIP )
*Applies to all
mortgages used to
refinance a
previous mortgage
endorsed on or
after June 1, 2009
**Applies to FHA loan
applications with
case numbers
assigned on or
after January 26,
2015.
Mortgage Term of More Than 15 Years
Base Loan Amount
LTV
UFMIP
MIP (bps)
Duration
Less than or equal to
$625,500
≤90.00%
1.75%
80
11 years
>90.00% but ≤95.00%
1.75%
80
Mortgage term
>95.00%
1.75%
85
Mortgage term
Greater than $625,500
≤90.00%
1.75%
100
11 years
>90.00% but ≤95.00%
1.75%
100
Mortgage term
>95.00%
1.75%
105
Mortgage term
Mortgage Term of Less Than or Equal to 15 Years
Base Loan Amount
LTV
UFMIP
MIP (bps)
Duration
Less than or equal to
$625,500
≤90.00%
1.75%
45
11 years
>90.00%
1.75%
70
Mortgage term
Greater than $625,500
≤78.00%
1.75%
45
11 years
>78.00% but ≤90.00%
1.75%
70
11 years
>90.00% 1.75% 95 Mortgage term
For Simple
Refinances Only
***Applies to the
refinance of a
previous mortgage
endorsed on or
before May 31,
2009
All Mortgage Terms
Base Loan Amount
LTV
UFMIP
MIP (bps)
Duration
All
≤90.00% .01%
55
11 years
>90.00% .01% Mortgage term
Seller shall deliver loans that were originated in accordance with the HUD Handbook 4000.1 unless otherwise
stated in this product matrix.
Non Delegated
FHA Streamline Refinance Mortgage Program
Red indicates a change from a previous matrix.
Overlays to FHA product guidelines are underlined and in italics
About Us
©2022 Lakeview Loan Servicing, LLC provides access to a full range of agency residential mortgage products for
qualified lending institutions and these programs are not applicable to the general public or individual consumers.
Lakeview Loan Servicing, LLC is a member of a family of companies owned or managed by Bayview Asset Management, LLC.
Bayview companies have been managing mortgage assets since 1995. It is the policy of Lakeview Loan Servicing, LLC (NMLS
#391521) to provide services without regard to race, color, religion, national origin, ancestry, age, sex, familial status, or disability.
Contact Us
85-LAKEVIEW (855-253-8439)
www.lakeviewcorrespondent.com
Version V22.2
08.12.22 Page 18 of 18
Version Control
Author
Section
Date
Update
AS All 05.16.22 Matrix created
MM
Proof of Occupancy
(Refinances)
07.29.22
Per Info Letter 22-68 – Handbook 4000.1 Quarterly Updates
ADDED:
o Direct electronic verification of employment by a Third Party Verification (TPV) vendor verifying the Borrower’s
address is the same as that of the subject Property is not permitted
MM
Employment
Verification (For
Credit Qualifying
Loans Only)
08.12.22
ADDED:
o Loans utilizing a COVID-19 related economic event (as defined by ML 2022-09) for self-employment will be
second level reviewed.
MM
Asset Verification
08.12.22
Maintenance-REMOVED:
• Case numbers assigned prior to September 20, 2021:
At the time of closing, verify Borrower’s funds to close, in excess of the total Mortgage Payment of the new
Mortgage. (Example-if funds to close $1,000 and the new total Mortgage Payment is $800, verification of $200 is
required)