Additional Overlay Removals – DU/LP Overlay Matrix Impacts
Based on your feedback, we have removed additional overlays and in most cases are aligning to Agency guidelines. For complete details and effective dates, review CB16-44 Overlay Removals and Matrix Updates.
Accessory Dwelling Unit
Aligned with Agency – appraisal must reflect respective Agency requirements based on underwriting method.
Down Payment Assistance
Trust Income > 20%
Chase's prior approval is not required on delegated underwritten loans providing the Delegated Correspondent rep and warrants to Chase that applicable loan meets Agency guidelines.
Removed requirement for original photos of comparable sales (copies of photographs from MLS allowed with an explanation why original photographs are not available)
Agency High Balance
Aligned with Agency – Removed requirement for minimum of 5% borrower own funds towards down payment
Removed restriction on 3-4 unit properties for:
- Primary – Purchase, No Cash-out Refinance and Cash-out Refinance transactions
- Investment – Purchase and No Cash-out Refinance
Auction House Seller Concessions
Follow Agency Sales/Financing Concession requirements, applicable to Interested Party Contributions limits and excess sales concession requirements.
Derogatory Credit Seasoning Date
Revised Seasoning Requirements for Primary Purchase transactions with previous Deed-in-Lieu of Foreclosure/Short Sale/Mortgage Charge Off – follow respective Agency Deed-in-lieu/Short Sale/Mortgage Charge off seasoning requirements
Removed requirement for DU transactions to meet Derogatory Credit Seasoning Requirements as of the Credit Report Date
Boarder Income From Live In Assistant
Boarder Income can be included in qualifying income when boarder income is from a Live-in Assistant. Refer to Agency guidelines for income calculation documentation requirements.
Aligned with Agency – complete VVOE in accordance with Agency guidelines.