• · Credit report must match GUS Findings.
• · Must not be older than 120 days on the date of closing for existing properties and 180 days for proposed and new construction.
• · Must contain complete information provided by all three repositories.
• · The credit report must show the following three required FICO scoring models for the report to be valid with Platinum Mortgage, Inc.:

1. Equifax Beacon 5.0

2. Transunion FICO Risk Score, Classic 04

3. Experian/Fair Isaac Risk Model V2.

• · Must reflect a minimum of 1 score per borrower.

TRADELINE REQUIREMENTS:

GUS Approved: Each credit report must contain 2 acceptable tradelines with at least 12 month history and last active within the last 24 months (see below regarding acceptable tradelines).

Manual Underwrite: As determined acceptable by the underwriter.

• · If more than one score is supplied by the same repository, the lesser of the scores will be used.
• · Determining Qualifying Credit Score:

o Middle of 3

o Lower of 2

o If only one score is provided, that score is the qualifying credit score for that borrower.

Minimum credit score for:

• · Manual Underwrite = 660
• · GUS Approval = 660

LIABILITIES & CREDIT HISTORY

(INDEX)

• · Court-ordered payments should be documented by a copy of the court order.
• · Borrower(s) must have an acceptable existing repayment plan for any arrearages and proof of 12 months on time payments, and/or be required to pay account in full prior to, or at closing.
• · See Collections/Chargeoffs for additional requirements if there are arrearages.

• · If the borrower is a co-signer on an account paid by a 3^rd party, the liability may only be excluded from the borrower debt ratios if evidence the primary obligor has been making the payments on time on the debt for a minimum of 12 months can be obtained.
• · Court-ordered assignment of debt should be documented by a copy of the court order. Must have 12 months cancelled checks from the payer of the court ordered debt in order to exclude from the debt ratio.

PREVIOUS MORTGAGE:

• · Section 1980.345(c)(1)(ii) requires all previous mortgage liabilities disposed of through a sale, trade, or transfer without a release of liability, to be included in the debt ratio calculation unless evidence can be obtained to confirm the remaining party has made payments over the last 12 months.
• · In divorce settlements when one person retains ownership of a residence as a result of the proceedings, it does not imply that the person relinquishing ownership is automatically released of the financial liability associated with an existing mortgage debt. The divorce decree along with a release of liability from the mortgage creditor must be presented as evidence that an applicant is no longer legally responsible for the mortgage payment. If no release of liability is granted by the creditor then the applicant remains legally obligated for the debt. Quit claim deeds do not remove liability for mortgage debts.

• · No accounts converted to Collection/Charge off in previous 12 months allowed, unless approved by GUS.

GUS Approved:

• · Medical Collections/Charge offs are not required to be paid.
• · Other Collections/Charge offs, if >24 months, not required to be paid, otherwise accounts must be paid in full prior to, or at, closing.

Manual Underwrite:

• · Medical Collections/Charge offs are not required to be paid.
• · Other Collections/Charge offs must be paid in full prior to, or at closing.

Any unpaid Collections/Charge offs will require a satisfactory letter of explanation from the borrower.

• · Must be paid at, or prior to, closing.
• · Borrower(s) may not have any new Judgments/Liens within the previous 12 months, unless approved by GUS.

• · Conservative use of credit
• · Minimal increase in borrower’s housing expense
• · Substantial cash reserves after closing
• · Credit score >660
• · Low total debt ratio (does not compensate for high housing ratio)

• · Payment Shock (>100%)
• · Ratio Waiver
• · Credit Waiver
• · Credit Score <660
• · Short Duration of Employment (less than 12 months employment with current employer)