Sierra Pacific Mortgage

Geographic Restrictions

Geographic Restrictions Table *
State / Products / Restriction
ALABAMA / ALL / Coliseum Boulevard Area of Montgomery: This area contains a subsurface chemical condition or environmental condition known as the Coliseum Boulevard Plum (CBP). If the subject property is located in this area, the loan must meet the following requirements:
  • A full appraisal (interior/exterior) is required. Reduced appraisals not eligible.
  • A fully executed disclosure issued by the Montgomery Area Association of Realtors (MAAR) identified as the Coliseum Boulevard Plume Disclosure, must be part of the purchase contract and signed and dated by all required parties prior to closing.

ARKANSAS / FHA
Streamline / FHA Streamlines for properties located in AK will not be eligible for loans locked on or after 6/29/2012 and funded on or after 7/06/2012.
This restriction does NOT apply to FHA WF Streamline product
CALIFORNIA / ALL / See Exhibit “A” for SPECIFIC restrictions
FLORIDA / ALL Conv.
(except
Sierra Direct) / Miami-Dade County – Attached PUDs: projects must be review for right of first refusal.
Condo projects (of any kind) located in the state of Florida are not eligible for financing
Sierra Direct / Condo projects are eligible subject to criteria stated in Sierra Direct product guide. Broward and Miami-Dade counties are now eligible.
FHA/VA / Condo projects are eligible subject to criteria stated in applicable agency guides.
GEORGIA / ALL / On all refinances, loan proceeds are required BY LAW, to be deposited into the closing agent’s account no later than 11:00am (EST) the next business day following the expiration of the rescission period. Funds must be wired to the closing agent’s account the last day of the rescission period to ensure we meet the strict timing guidelines. We are not entitled to receive/charge any interest on the loan proceeds until disbursement by the settlement agent has occurred. Due to this, no pre-funding conditions will be allowed other than signed 1003.
HAWAII / ALL / Big Island of Hawaii: Loans for properties located in lava flow zones #1 and #2 are not eligible.
As previously announced: All loans secured by properties located in the state of Hawaii must have been originated on or before 12-31-2010. Loans already in the pipeline may be funded provided they were originated on or before 12-31-2010.
FHA case numbers must have been obtained on or before 12-31-2010.
ILLINOIS / ALL /
  • CookCounty loan transactions with Note dates falling or after July 1, 2008 require a copy of the Certificate of Compliance or Certificate of Exemption recorded with the Deed of Trust.
  • All loan transactions must have FULL/ALT documentation regardless of AU findings. (FHA & VA streamline refinance transactions are permitted in accordance to respective guides).

KANSAS / DU Refi Plus / Owner-occupied properties in Kansas with an LTV exceeding 100% require a full appraisal report
MAINE / ALL /
  • Loans with the Right of Rescission, it is required to have funds in the closing agents account by 12:00 noon (Eastern Time) of the next business day following the expiration of the rescission period. Funds must be wired to the closing agent’s account the last day of the rescission period to ensure we meet the strict timing guidelines. We are not entitled to receive/charge any interest on the loan proceeds until disbursement by the settlement agent has occurred. Due to this, no-pre-funding conditions other than signed 1003 allowed.
  • The adjustment cap for first lien ARM loans is restricted to a maximum increase of 2% per year.
  • 30/15 and 40/30 first-lien balloon loans originated in Main are ineligible for financing
  • All loan transactions must have FULL/ALT documentation regardless of AU findings. (FHA & VA streamline refinance transactions are permitted in accordance to respective guides).

MARYLAND / ALL /
  • All loan transactions must have FULL/ALT documentation regardless of AU findings, including, but not limited to Streamline Accept or Accept Plus. .
  • FHA & VA streamline Refi’s are eligible if strictly adhered to applicable FHA/VA streamline guides.

MASSACHU-
SETTS / ALL
FHA
(non-Streamline) /
  • Massachusetts requires the inspection of a septic systemwhenever a property is transferred to a different owner(Purchase money). A system must be inspected within two years
priorto the transfer of title to the property served by the system.
An inspection conducted up to three years before the time oftransfer may be used if the inspection report is accompanied byrecords demonstrating that the system has been pumped atleast once a year during that time.
• The following transactions are not considered transfers of title forthe purposes of Massachusetts septic system transfer inspection
purposes:
o Taking a security interest in a property, including but not
limited to issuance of a mortgage;
o Refinancing a mortgage or similar instrument, whether or not
the identity of the lender remains the same
o A change in the form of ownership among the same owners,
such a placing the facility within a family trust of which the
owners are the beneficiaries, or changing the proportionate
interests among a group of owners or beneficiaries
o Adding or deleting a spouse as an owner or beneficiary; or a
transfer between spouses during life, out-right or in trust; or
the death of a spouse
o The appointment of, or a change in, a guardian, conservator
or trustee
  • .Borrower’s ability to repay must be documented in the loan file

FHA
Streamline / FHA Streamlines for properties located in MA will not be eligible for loans locked on or after 6/29/2012 and funded on or after 7/06/2012.
This restriction does NOT apply to FHA WF Streamline product
State / Product / Restriction
MINNESOTA / ALL /
  • All loan transactions must have FULL/ALT documentation regardless of AU findings,
  • FHA streamline Refi’s are eligible if strictly adhered to applicable FHA streamline guides.

MISSOURI / ALL / St. Louis, Green Jade Estates Subdivision: Financing is not allowed.
MONTANA / ALL / No loan may be secured by property of more than 40 acres.
NEVADA / ALL /
  • High-rise Condo projects (> 5 stories) are not eligible in Las Vegas, Nevada
  • All loan transactions must have FULL/ALT documentation regardless of AU findings. (FHA streamline refinance transactions are permitted in accordance to respective guides).
Reminder: Additional restrictions may be posted in product guide.
NEW JERSEY / FHA/VA /
  • All 2-4 Units in the State of New Jersey are ineligible for financing

NEW JERSEY / ALL / All purchase transactions are subject to the Private Well Testing Act, N.J.S.A. 58:12A-26 requirements. The Act covers SALES of properties for which testing is required for the following:
  • SALE of any property that gets its drinking water from a private well located on the property, and
SALE of any property that gets its drinking water from a well that has less than 15 service connections or that does not regularly serve an average of at least 25 people daily at least 60 days out of each year
New Mexico / ALL /
  • Sierra must deliver the new loan funds within 2 business days of the time it is ascertains the closing agent as fulfilled the conditions/required/requested in our lender’s instructions. Due to this, no prefunding conditions will be allowed other than the signed 1003.

NEW YORK / ALL / M.I. insurance determination requirements according to NY Insurance law Article 65 Section 6503(d) applies: LTV must be calculated by dividing the loan amount by the appraised value. If the result is >80%, MI is required. If M.I. is required, the percentage of coverage is determined by dividing the loan amount by the lesser of the sales price or the appraised value.
NORTH CAROLINA / ALL /
  • Loan funds must be disbursed no later than the business day after the expiration of the required rescission period. We are not entitled to receive/charge any interest on the loan proceeds until disbursement by the settlement agent has occurred. Funds must be wired to the closing agent’s account the last day of the rescission period to ensure we meet the strict timing guidelines. Due to this, no prefunding conditions will be allowed other than the signed 1003.
  • All loan transactions must have FULL/ALT documentation regardless of AU findings, including, but not limited to Streamline Accept or Accept Plus. Please refer to SPM P&P Income Waiver section for details.
  • FHA & VA streamline Refi’s are eligible if strictly adhered to applicable FHA/VA streamline guides

OHIO / ALL /
  • All loan transactions must have FULL/ALT documentation regardless of AU findings. (FHA & VA streamline refinance transactions are permitted in accordance to respective guides).

Non-Agency
Jumbo /
  • Eligible in the state of Ohio. (previous restriction removed)

SOUTH
CAROLINA / ARM PRODUCTS /
  • New regulations under Senate Bill 673 are effective January 1, 2010*. The High-Cost and Consumer Home Loans Act have been revised to require the calculation of a fictitious annual percentage rate (APR) on an adjustable rate loan for purposes of the High Cost Rate test.
  • A loan is considered High Cost if the loan’s APR exceeds the specified rate threshold. Under these revisions, the APR on an adjustable rate loan must be calculated using the fully indexed interest rate assuming a fully amortizing repayment schedule.
  • The maximum TDTI cannot exceed 50% or it will be considered a high cost loan. We must use PITI + debts to arrive at TDTI ratio.

ALL /
  • A fully executed Attorney/Insurance Preference Checklist form, which informs the borrower of their right to select their own attorney or insurance agent must be obtained for all Primary and Second Home loan transactions. This fully executed form must be included in the loan file for salability purposes. Note: This requirement does not apply to investment properties.
  • South Carolina Unauthorized Practice of Law: real estate and mortgage loan closings, including refinance loans, must be supervised by an attorney. Performing a title search, preparing title and loan documents, and closing a loan without the supervision of an attorney constitutes the unauthorized practice of law.

Continued from previous page

State / Product / Restriction
TENN / ALL /
  • Loans subject to a Right of Rescission, Sierra is required to provide the settlement agent the funds no later than the business day after the rescission period expires. Due to this, no prefunding conditions will be allowed except for the signed 1003.

TEXAS / ALL
(except
A6) /
  • All owner occupied refinance transactionsfor all products [except Section 50(a)(6)] loans will require a copy of the current mortgage or note evidencing the terms are not subject to Texas 50(a)(6) requirements.
Note: Texas (a)(6) loans would already have been identified as such.
TEXAS
Section 50 (a)(6) ArticleXVI / Conven-tional
(Except DU
Refi Plusand Sierra Direct) /
  • Refer to SPM Texas A6 policy posted in P&P
  • Per Court Ruling June 21st, 2013- Discount points are to be included in the 3% cap – on true interest (Principal x Interest Rate) is excluded
  • NO POA Allowed on Texas A6 transactions

DURP / Not Eligible
Sierra Direct / Not Eligible
Non-Agency Jumbo / Not Eligible
FHA / Not eligible for financing under this product
VA / Not eligible for financing under this product
VIRGINIA / ALL /
  • Loans subject to the Right of Rescission, loan funds must be provided to the settlement agent within 1 business day (the next day) after the expiration of the rescission period. We are not allowed to receive/charge the customer any interest on the loan funds advanced until disbursement of the funds by the closing agent. Due to this, no prefunding conditions will be allowed except for the signed 1003.

Vermont / ALL /
  • Loans subject to the Right of Rescission, Sierra must disburse loan funds to the settlement agent prior to 2:00 pm (Eastern Time), the first business day after the rescission period expires. We are not entitled to receive/charge any interest on the loan proceeds until disbursement by the settlement agent has occurred. Funds must be wired to the closing agent’s account the last day of the rescission period to ensure we meet the strict timing guidelines. Due to this, no prefunding conditions will be allowed except for the signed 1003.

WEST VIRGINIA / ALL /
  • Loans subject to the Right of Rescission, loan funds must be provided to the settlement agent within 1 business day (the next day) after the expiration of the rescission period. We are not entitled to receive or charge any interest on the loan until disbursement of the loan funds by the settlement agent has occurred. Due to this, no prefunding conditions will be allowed except for the signed 1003.
  • The maximum allowable LTV/CLTV is 100%\
  • Reduced appraisal reports are not acceptable: Minimum #2055 is required if AUS permits and not otherwise restricted in product guide.

Conven-tional / As a result of the recent legislative alert for the state of West Virginia, the DTI will be restricted to a maximum of 50%. Borrower ability to repay must be documented.
Homepath / The HomePath product is not eligible in the state of West Virginia
*This table ONLY lists existing Geographic Restrictions as applicable to state locations. This table is NOT intended to reflect SPM licensing status, or lending territory information. Branches must refer to their compliance tables and managers for licensing information and authorization to conduct business in specific states.
“ALL” means all products offered by Sierra Pacific Mortgage, including Government (USDA, FHA & VA) loan transactions.

Exhibit “A” – State of California

  • The following restrictions apply to properties located in the state of California:
  • Big Rock Mesa (Malibu) and Castellamare (Pacific Palisades)- All of the following conditions apply to any loan if the subject property is located in the Castellamare area of Pacific Palisades or on the following streets in the Big Rock Mesa Area (Malibu):

Big Rock Drive / Piedra Chica Road / Rockport Way
Cool Oak Way / Pinnacle Way / Royal Stone Drive
Inland Way / Roca Chica Drive / Seaboard Way
Little Rock Way / Rockcroft Drive / Seamore Drive
McAnany Way / Rockpoint Way / Whitecap Way

Due to earth slippage and land slides, the following conditions apply:

  • Verify soil engineer’s report stating soil is stable and not subject to future expansion, slippage or slide activity.
  • Verify structural engineer’s report confirming dwelling and any outbuildings or garages have not been affected by soil expansion, slippage or land slides and are in, at least, good conditions.
  • Homes on septic system are not acceptable.
  • Borrowers must sign a Borrower Property Indemnification Certification.
  • For more specific location information, the referenced streets may be located in the most current copy of the Thomas Bros. Guide for Los AngelesCounty
  • Oakley, ContraCostaCounty: Restriction removed for Dupont Chemical plant.
  • La Conchita Area (San Buena Ventura) - this area is known to have experienced earth slippage and landslide problems. All of the following conditions apply to any loan if the security property is located in these areas
  • Clear soil engineer’s report stating that the subject soil is stable and not subject to future expansion, slippage, or slide activity.
  • Clear structural engineer’s report confirming that the subject dwelling and any outbuildings, garages, etc. have not been affected by soil expansion, slippage, or landslides and are in at least good condition.
  • Borrowers are required to sign the La Conchita Area (San Buena Ventura) Borrower Property Condition Indemnification Certificate.
  • The properties located on the following streets in the La Conchita area are subject to all three conditions above:

Vista Del Rincon DriveSan Fernando Avenue Carpinteria Avenue

West Surfside Street Zelzah Avenue Santa Paula Avenue

Bakersfield AvenueSanta Barbara Avenue North Sunland Avenue

Fillmore AvenueOjai Avenue Oxnard Avenue

All properties are a portion of Sections 1 and 12 of La Conchita Del Mar No. 2, Book Page 31.

La Conchita is an unincorporated area of Ventura County, CA.

Geographic Restriction Table 1Rev 7/23/213