Green Tree Servicing LLC Mortgage Amendments Dept., T316 7360 South Kyrene Road Tempe, AZ 85283 888-568-8733 Please read the Subordination Requirements in their entirety as the requirements have changed. Complete and accurate packages will ensure timely turnaround. Packages are considered complete when ALL required documentation has been received. SUBORDINATION REQUIREMENTS The approval criteria may vary by account based on investor requirements. We cannot provide separate requirement checklists for each account. Review the below key items, and if your request meets the general guidelines, submit your package for review. If there are specific requirements for the customerвЂ™s account, a representative will contact you. KEY ITEMS 1. 2. 3. 4. 5. 6. 7. 8. Green Tree account must be current as of the due date and remain current throughout subordination review process. Keep in mind; processing may take up to 15 business days. Grace periods do not apply. All late payments, late fees, legal fees and miscellaneous fees must be paid in full. Green Tree does not subordinate to the following new loan types: a.Lines of credit b.Loans subject to additional advances c.Reverse mortgages d.Loans subject to negative amortization e.Cash out to the customer (new loan cannot result in the customer receiving cash at closing) f.Debt consolidation Green Tree does not agree to subordinate if its lien position will deteriorate (i.e., from 1st to 2nd lien or 2nd to 3rd lien). The proposed new loan may or may not be eligible to exceed the unpaid principal balance of the existing first lien loan. Г�The unpaid principal balance is not the total payoff amount. This means settlement charges; interest, miscellaneous payoff fees and escrow amounts may or may not be eligible for inclusion in the new loan amount. Г�In general, the new loan amount cannot exceed a maximum of 105% of the unpaid principal balance. If new loan amount exceeds the existing loan principal balance, please call 888-568-8733 to verify maximum new loan amount. An appraisal may or may not be required. An appraisal may be required for the Subordination request even if it is not required for the new loan (i.e., Home Affordable Refinance Program [HARP]). If the new loan does not require an appraisal, please call 888-568-8733 to verify Subordination appraisal requirements before submitting your request. The proposed new loan may or may not be eligible to be an Adjustable Rate Mortgage (ARM). Г�ARM loans will be considered on a case-by-case basis. Г�The terms of the ARM, including the proposed interest rate, the frequency of rate changes and the lifetime maximum interest rate, will be required for review. A copy of the proposed Note and/or loan-specific ARM disclosure statement indicating the terms of the ARM is required. The proposed new monthly payment may or may not be eligible to exceed the existing account payment amount. Subordination Requirements Checklist (FRM-005) Page 1 of 8 07/16/2012 Green Tree Servicing LLC Mortgage Amendments Dept., T316 7360 South Kyrene Road Tempe, AZ 85283 888-568-8733 9. 10. 11. All accounts in bankruptcy must be discharged /dismissed. Г�All accounts with a discharged chapter 7 bankruptcy must have a valid reaffirmation agreement. If the Green Tree account was not reaffirmed, a request will only be considered if the new loan amount does not exceed the unpaid balance of the existing first loan. The request must be in the best interest of the customer and the investor. Green Tree prepares and executes the Subordination Agreement. The Subordination Agreement will not require the customerвЂ™s signature. Note: The Subordination Agreement must not be altered once executed by Green Tree. PROCESSING FEES 1. 2. There is a $200.00 processing fee for each account number. Г�Fee is non-refundable and non-negotiable. Г�Fee must be paid via certified funds. Г�Personal checks from the customer are not accepted and will be returned. Г�All checks should be made payable to Green Tree and include the customer's name and Green Tree loan number. Enclose the check with the package. State Specific: The fee is waived in: в€’ The following states: IA, IN, KS, MD, MO, NC, NJ, PA, SC, VT, VA, WA, WV and WY. в€’ California, if the unpaid balance of second lien is less than $20,000. There is a $100.00 processing fee for change requests. This applies to requests that were approved within 90 days. All required documents (see REQUIRED DOCUMENTS SUBORDINATION CHECKLIST) must be current as of the re-submitted date. If your request is greater than 90 days, the full processing fee is required. WARNINGS 1. 2. 3. 4. Completed packages take 15 business days to process. If a package is received incomplete, the file is suspended, and the requestor is notified. The requestor is given 10 business days to comply before the file is subject to cancellation. Note: Processing time is based on complete package receipt date, not initial request date. Green Tree processes all requests in the order in which they are received. Г�Requests will not be rushed. Green Tree will not be held liable if rate lock commitments expire before Green Tree completes the processing of the subordination request. Green Tree reserves the right to deny a subordination request that does not represent the best interest of the customer and the investor. Subordination Requirements Checklist (FRM-005) Page 2 of 8 07/16/2012 Green Tree Servicing LLC Mortgage Amendments Dept., T316 7360 South Kyrene Road Tempe, AZ 85283 888-568-8733 SHIPPING REQUIREMENTS 1. 2. The subordination request package must be sent via mail or overnight service for processing. You are encouraged to request delivery confirmation of your subordination request package. Note Faxed requests are not accepted and will not be reviewed. Ship the subordination request package to: Green Tree Servicing LLC Attention: Mortgage Amendments Department 7360 South Kyrene Road T316 Tempe, AZ 85283 Due to the volume of requests, we are not able to confirm receipt of your package. Your delivery confirmation number is sufficient documentation that we have received your request. 3. Requestor must provide a pre-paid self-addressed billing slip and envelope to return the subordination agreement. Failure to provide a return shipping label will result in the subordination agreement being sent via USPS first class mail. REQUESTS FOR COPIES OF DOCUMENTS 1. 2. All requests for copies of documents, including the original Note, should be directed to our Customer Service Department. Г�Please fax your request, including a copy of the customer's authorization letter, to (866) 870-9919. For questions or if following up on a request, please contact Customer Service directly at (800) 643-0202. Subordination Requirements Checklist (FRM-005) Page 3 of 8 07/16/2012 Green Tree Servicing LLC Mortgage Amendments Dept., T316 7360 South Kyrene Road Tempe, AZ 85283 888-568-8733 GREEN TREE SUBORDINATION WORKSHEET Please complete all areas. Please print clearly. Conventional New Loan Type (Circle One) FHA VA Conventional MHA Conventional HARP Other (explain) Requestor Escrow or Account #: Green Tree Account #: Rate Reason for Refinance: (Circle all that apply): Rate & Term Reduced Payment IO to Full Amortizing Other (explain): Customer Name(s): Customer Information Property Address: Customer Phone Number(s): County: Company: Requestor Contact Information Name: Phone: Fax: Email: New Lender Information Name to appear on Subordination Agreement (NOT broker name): Address to Mail Subordination Agreement: Subordination Requirements Checklist (FRM-005) Page 4 of 8 07/16/2012 Green Tree Servicing LLC Mortgage Amendments Dept., T316 7360 South Kyrene Road Tempe, AZ 85283 888-568-8733 Must be completed in entirely, be accurate, and reflect current customer information. Please ensure information is legible. Current First Lien Information Current Loan Amount: Current Interest Rate: Fixed or Variable: Term: Escrow Included: Monthly Escrow Amount: Monthly Mortgage Insurance: $ Monthly Payment (P&I): Monthly Principal/ Interest/Taxes/ Insurance (PITI): $ Yes or No $ $ $ Subordination Requirements Checklist (FRM-005) Proposed New First Lien Information % New Loan Amount: New Interest Rate: Fixed or Variable: New Term: Escrow Included: Monthly Escrow Amount: Monthly Mortgage Insurance: Monthly New Payment (P&I): Monthly Principal/ Interest/Taxes/ Insurance (PITI): Page 5 of 8 $ % Yes or No $ $ $ $ 07/16/2012 Green Tree Servicing LLC Mortgage Amendments Dept., T316 7360 South Kyrene Road Tempe, AZ 85283 888-568-8733 To Print Form Mortgage Amendments Department From Date Account Number RE Subordination Request Processing Fee GL: 4400010 CC: 907 Attach Check Here Please return this form with the processing fee to ensure the fee is processed correctly. Make checks payable to Green Tree. Subordination Requirements Checklist (FRM-005) Page 6 of 8 07/16/2012 Green Tree Servicing LLC Mortgage Amendments Dept., T316 7360 South Kyrene Road Tempe, AZ 85283 888-568-8733 REQUIRED DOCUMENTS SUBORDINATION CHECKLIST 1. Green Tree Subordination Worksheet was completed by requestor. Г�Must include terms of existing mortgage and proposed mortgage. Г�Proposed mortgage amount must match an all corresponding documents. 2. Copy of completed Loan Application вЂ“ Form 1003. 3. 4. 5. 6. 7. Copy of the completed Uniform Underwriting and Transmittal Summary вЂ“ Form 1008. Г�Proposed mortgage amount must match on all corresponding documents. Г�Must reflect Debt-to-Income Ratio Exception Not required on Veteran's Administration (VA) streamline refinances. Г�For VA refinance, VA Loan Summary or Interest Rate Reduction Refinancing Loan (IRRRL) Worksheet is required. Copy of Mortgage Loan Commitment Letter/Approval Letter (The letter that indicates approval and defines the terms of the mortgage.) Г�Must be signed and dated by the Lender. Г�Approved mortgage amount shown must equal or be greater than the proposed mortgage amount. Copy of preliminary title report reflecting all active accounts against the property. Г�Must include complete recording information (including mortgage dates, lender names, amount of obligation, and any assignment/subordination information) for all liens. Г�Effective date must be within 60 days of submission. Г�All judgments and old liens must be subordinated or released. Provide separate documentation clearing these items, for example, a copy of executed satisfaction and/or subordination. Г�Proof property taxes are paid current. Proof includes tax receipt, tax certification, or escrow statement. Г�Purposed insured amount must match or exceed proposed mortgage amount. Copy of the Appraisal including any addenda. Г�Valuation cannot exceed 4 months in age. Г�A Broker's Price Opinion (BPO) or Automated Valuation Model (AVM) may be acceptable for some accounts. Г�Appraisal is required based on investor requirements and not based on proposed mortgage loan program. If the new loan does not require an appraisal, please call 888-568-8733 to verify appraisal requirements before submitting the request. Copy of the Good Faith Estimate or Preliminary Settlement Statement SST/HUD1. Г�Must reflect exact payoff amount on the payoff statement. Г�The payoff amount should be listed on the loan payoff disbursement line, and not the вЂњcash backвЂќ to borrower line. Г�Must not show any cash out to the customer. Г�Proposed mortgage amount must match on all corresponding documents. Note: The SST/HUD1 is required for some accounts. If the package is submitted without the SST/HUD1 and it is required, a representative will contact you. Subordination Requirements Checklist (FRM-005) Page 7 of 8 07/16/2012 Green Tree Servicing LLC Mortgage Amendments Dept., T316 7360 South Kyrene Road Tempe, AZ 85283 888-568-8733 8. 9. 10. 11. 12. 13. 14. Copy of Payoff statement for accounts(s) to be paid in full. Г�Exact payoff amount(s) MUST be listed on HUD1 if adding daily interest to the payoff. Please detail the calculations on the payoff statement for verification. Г�The statement must be current as of the date request is received. For MHA/HARP eligible loans, provide documentation showing proof of eligibility, i.e. DU Findings. CustomerвЂ™s Authorization Letter, authorizing the release of information to a third party must be signed by all customers on account documents. Subordination Processing Fee, if applicable. Г�See PROCESSING FEES for details. Return shipping label and envelope. Г�FedEx, UPS, Priority Mail, First Class Mail are acceptable. Г�Courier services are not acceptable. Г�See PROCESSING FEES for details. Confirm prior to submission. Г�Verify Green Tree account current. Г�Proposed mortgage amount matches on all documentation. Г�Documents are current as of submission date. Г�Return shipping label is included. Resubmitted Packages. Г�If providing updated and/or corrected documentation, corresponding documents may need to be updated and included as part of resubmission. Example: If new loan amount is reduced on HUD1, the following items must be updated: Subordination Worksheet, Form 1003 and Form 1008. tв—Љt Subordination Requirements Checklist (FRM-005) Page 8 of 8 07/16/2012