Updated Non-Agency Product Guidelines

• Fannie Mae Collateral Underwriter (CU) score of 2.5 or lower
• Desk Review (must contain a value and comparative sales data to support the valuation result)
• Field Review
• Second Full Appraisal (appraisals must be completed by different, independent appraisers and the lower of the two appraised values used to determine value)
• Review by Carrington Capital Management (CCM)

• Fannie Mae Collateral Underwriter (CU) score of 2.5 or lower
• Desk Review (must contain a value and comparative sales data to support the valuation result)
• Field Review
• Second Full Appraisal (appraisals must be completed by different, independent appraisers and the lower of the two appraised values used to determine value)
• Review by Carrington Capital Management (CCM)

• • To utilize the Fannie Mae Collateral Underwriter (CU) score, all of the following must be met:
    • Loan amount < $1,000,000, and
    • CU Score ≤ 2.5
  • The following require a Desk Review (ineligible for CU):
    • Investment Properties
    • Any Loan Amount ≥ $1,000,000, or
    • Any CU Score > 2.5
  • The following require a Second Full Appraisal:
    • Loan amount ≥ $1,000,000
    • Higher Priced Mortgage Loans* (HPML) Property Flip Transactions
    • HPML* New Construction Properties with any title transfer within 180 days prior to the sales contract date, or any title transfer after the sales contract date, including land-only and zero value title transfers, require a Second Full Appraisal.
    • Please note: title transfers from a builder to a wholly owned subsidiary of the builder are considered a “change of ownership” and require a Second Full Appraisal.
    • *Refer to HPML Requirements. Only Principal Dwellings are subject to HPML regulations, and the borrower may not pay for the second appraisal when ordered solely due to HPML flipping rules.
  • The following requires a CCM Review:
    • Appraised value ≥ $1,500,000. When two appraisals are present the lowest value is used.
  • Desk Reviews, Field Reviews, and Second Full Appraisals, when required, must be ordered from a CMS-approved AMC. A Second Full Appraisal must be completed by a different AMC and a different, independent appraiser than the first appraisal. CMS reserves the right to request additional appraisal products at our discretion based on review of the appraisal and loan file.

• To utilize the Fannie Mae Collateral Underwriter (CU) score, all of the following must be met:
  • Loan amount ≤ $1,500,000, and
  • CU Score ≤ 2.5
• The following requires a Desk Review (ineligible for CU):
  • Any CU Score > 2.5
• The following require a Second Full Appraisal:
  • Loan amount > $1,500,000
  • Higher Priced Mortgage Loans* (HPML) Property Flip Transactions
  • HPML* New Construction Properties with any title transfer within 180 days prior to the sales contract date, or any title transfer after the sales contract date, including land-only and zero value title transfers, require a Second Full Appraisal.
  • Please note: title transfers from a builder to a wholly owned subsidiary of the builder are considered a “change of ownership” and require a Second Full Appraisal.
  • *Refer to HPML Requirements. Only Principal Dwellings are subject to HPML regulations, and the borrower may not pay for the second appraisal when ordered solely due to HPML flipping rules.
• The following requires a CCM Review:
  • Appraised value ≥ $1,500,000. When two appraisals are present the lowest value is used.
• Desk Reviews, Field Reviews, and Second Full Appraisals, when required, must be ordered from a CMS-approved AMC. A Second Full Appraisal must be completed by a different AMC and a different, independent appraiser than the first appraisal. CMS reserves the right to request additional appraisal products at our discretion based on review of the appraisal and loan file.

• Desk Review (must contain a value and comparative sales data to support the valuation result)
• Second Full Appraisal

Loan amounts ≥ $1,000,000 require a Second Full Appraisal.
Appraised values ≥ $1,500,000 require a Carrington Capital Management (CCM). When two appraisals are present the lowest value is used.

• FNMA Collateral Underwriter (CU) score of 2.5 or lower
• Desk Review (must contain a value and comparative sales data to support the valuation result)
• Second Full Appraisal (Note: appraisals must be completed by different AMCs and different, independent appraisers and the lower of the two appraised values used to determine value)
• Review by Carrington Capital Management (CCM)

• To utilize the Fannie Mae Collateral Underwriter (CU) score, all of the following must be met:
  • LTV ≤ 80%,
  • Loan amount ≤ $1,500,000, and
  • CU Sore ≤ $2.5
• The following require a Desk Review (ineligible for CU)
  • Any loan where the LTV > 80%, or
  • CU Score > 2.5
  • The following require a Second Full Appraisal: Loan amounts > $1,500,000
• The following requires a CCM Review:
  • Appraised Value ≥ $1,500,000.  When two appraisals are present the lowest value is used.

Desk Reviews and Second Full Appraisals, when required, must be ordered from a CMS-approved AMC. A Second Full Appraisal must be completed by a different appraiser and a different AMC than the first appraisal. CMS reserves the right to request additional appraisal products at our discretion based on review of the appraisal and loan file.
Existing CMS policies must be followed for guidance on ordering discretionary appraisal review products if there are concerns with the original appraisal report.