TCF Bullet Points ***Subject to change at any point in time*** Faith Henderson [email protected] (312)‐965‐3690 Central Time Zone Primary Residence ‐ 89.99% Max CLTV for combined liens to $1,500,000 Max $350K HELOC Second/Vacation homes‐85% Max CLTV –combined liens to $1,275,000 Max $250K HELOC TCF HELOCs are for Owner Occupied properties including Second homes. No Investment Properties. Eligible Properties: SFD, Townhomes, Condos and O/O 2‐unit. TCF HELOCs either: close simultaneously with your first mortgage (Purchase or Refi) or submit to TCF within 85 days of your first mortgage closing for a Stand Alone. TCF does not offer a Stand Alone if first closed > 85 days ago or was originated by another company. When closing HELOC after first you must get Title Insurance. Credit Score Requirement 700 Minimum Mid score for Primary Residence, Combined Liens $750K or less 730 Primary wage earner mid score ,Combined liens greater than $750,000 – All States 730 Primary wage earner mid score, for all Second home transactions All States Only the Primary Wage Earner (most income) must meet minimum mid score. No minimum score for the Co‐Borrower with lower income. The co‐borrower must meet BK, short sale, foreclosure guidelines. If you removed a Co‐Borrower from your first due to credit score, you may be able to add that borrower to the HELOC and use their income to qualify. Second/Vacation Homes‐ Max 85.00% CLTV; Max $250,000 HELOC. Same Pricing as Primary Residence. ONLY ONE TCF HELOC PER BORROWER. Three Pricing Tiers for Primary or Second/Vacation Homes‐ Purchase or Refinance Primary Residence Max HELOC $350,000; Second Home Max HELOC $250,000. Min HELOC $5, 000 Current Rate’s CLTV > 80.00% Prime + 1.99% ‐ Start Rate of 5.74% based on current Prime Rate CLTV 70.01‐80.00% Prime + 1.49% Start Rate of 5.24% based on current Prime Rate CLTV 70.00% or below Prime + 0.99% Start Rate of 4.74% based on current Prime Rate Current Term 
30 year HELOC Term‐ Years 1‐10 “Draw Period” with min I/O payments;
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Years 11‐30 Repayment Period with amortized payments; 18% Life cap;
Fee’s 
$75.00 annual maintenance fee, collected with first statement.
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No Early Termination fee. 
Borrower can choose full draw, partial draw or zero draw. 
$295.00 TCF Origination Charge 
Charge is put on the line and a net wire is sent to closing. Borrower is responsible for Title Fees.
HELOCs are Consumer Loans ‐ NOT SUBJECT TO TRID. TCF’s $295.00 Origination Charge is not disclosed on the first mortgage LE .TCF will disclose the $295.00 and our $75.00 Annual Maintenance in our HELOC disclosure, mailed to the Borrowers when we receive your submission. TCF does not issue a CD. We’ll condition for your “initial CD” – can be unsigned‐to release TCF docs. TCF Overlays that can help save deals!! TCF has no reserve requirements. No documentation required for source of down payment. Gifts allowed – even a full gift with no Borrower Contribution. Only the Primary Wage Earner (most income) must meet TCF Minimum Mid Scores. No minimum score for the lower wage earner. If you excluded a lower wage earner on your first mortgage due to score, you can add that Borrower/their income to the HELOC. Need 1003/1008 for Co‐Borrower+ their credit report and income docs. Only 3 trade lines required (Borrower+ Co‐Borrower combined). Opened or closed. One trade line seasoned 3 years. TCF does not require Installment Debt or a VOR. Can use non‐US Credit to document seasoned trade line. Pay off debts to qualify. Can pay off debts with the HELOC proceeds, at closing. Don’t need to close accounts. TCF will average variable income, including commission income, over 2015+ YTD 2016, if borrower rec’d in 2016. May result in higher qualifying income. If income is declining by > 20%, TCF uses lower income. TCF does not deduct 2106 expenses from income. Tax Returns/Transcripts not needed for W‐2 employees. TCF does not include 401K loans in DTI. Provide a 401K Statement to show account balance exceeds loan. TCF only requires a one year Job History – this can include education. Job History does not have to be continuous. TCF will require a signed and dated LOE for gap in employment greater than 30 days. Non‐Resident Aliens– TCF allows all type of Work VISAs with the right documentation. Provide machine readable Immigrant VISA; copy of unexpired foreign passport and I‐94 or I‐797A form. TCF requires 1 trade line seasoned 3 years. If Borrower does not have US credit seasoned 3 years, your Borrower can provide a credit report for the purpose of documenting a seasoned trade line. This can be closed credit. Departing Residence converting to rental– Provide 12 month lease ‐ cancelled security deposit check. 75% of gross rent to offset PITI. No departing property equity requirement. No prior landlord experience required. Offer Letter or Employment Contract for Salary (closing before new job commences) – Start Date must be within 45 days of loan closing. Income and type of employment must be commensurate with previous position. Non ARMS length transactions allowed. Gift of equity allowed. Property “off the market one day” OK. Additional Product Info 
First Mortgage can be: FHA, VA; Conventional; High Balance or Jumbo; Fixed or Amortized ARM. SFD, Townhomes, Condominiums and O/O Duplexes. 
Condo Project Owner Occupancy: Existing Project, 51%; New Construction, 70% of units under contract. 
TCF accepts your appraisal: subject to TCF ordered Desk Review. Appraisal cannot be > 120 days old when TCF orders Desk Review or >150 days at closing. 
Title Insurance –TCF uses your title from the 1st mortgage if HELOC is $250K or less and a SIMO Close. If HELOC is greater than $250,000 or a standalone within 90 days of your first mortgage TCF will require title insurance on the second. 
Only 3 trade lines (open or closed) per transaction – not per borrower! Combine borrower and co‐ borrower trade lines. One trade line must have been opened 3 years ago. If Borrower does not have US credit seasoned 3 years, your Borrower can provide an international credit report that they order, for the purpose of documenting a trade line seasoned 3 years. This can be closed credit. TCF Credit and Income Bullet Points – Max 38.00/45.00% ratios 
How we Qualify ‐ 30 year P & I payment @HELOC Start Rate + a Payment Shock Factor of.0018 x the line amount. 30 year amortized HELOC payment +the payment shock must fit into Max Ratios of 38.00%/45.00%. Our Qualifying Worksheet will calculate these items and build them into the ratios. Use the drop down boxes for Property State and Property Type when completing the Worksheet. 
No BK FILING in past 8 years – TCF goes off the filing date. No foreclosure, deed‐in‐lieu of foreclosure, short sale or "real estate account paid for less than full balance" within the last 5 years. 
Loan Modifications: We handle these case by case. We will need an LOE and a copy of the modification agreement. 
Revised Policy! For student loans that are in deferment, when no payment is listed on the credit report, we will use 1% of the balance for each loan for DTI purposes. 
Co‐signed loans: eliminate from DTI if no late payments past 24 months. Must be coded as co‐signer on credit bureau. 
Co‐signed mortgage debt: same as above, borrower must execute Quit Claim if listed on Title and provide proof someone has been making the payments for a minimum of 6 months. 
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401K Loans: TCF does not include 401K loans in DTI as long as a 401K Statement showing account balance exceeds loan. 
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Installment debts: We can only remove installment debts (non real‐estate) when they have payments of 6 months or less. Most firsts are able to remove payments with 9‐10 months left ‐ TCF is 6 months to exclude. Non‐owner occupied: We cannot allow non‐owner occupied (investor) or non‐occupant co‐borrower transactions. All borrowers have to occupy the property. Max Acres: We will only lend on properties of 10 acres or less. AZ is 2 acres. Max Properties: We allow 6 non‐subject properties, mortgaged or not plus the subject property. Departing properties can only be excluded if sold by closing: For income approval we will need 1 of the following: a listing showing the property is pending sale, executed purchase agreement, or EST settlement statement. For final approval, we require the settlement statement/selling disclosure on the departing property. If it is a concurrent closing, we will require an EST settlement statement with a correct closing date listed. TCF Will use one year tax returns if there are LP finding showing the ability to use one year. However we will underwrite the one year to our own guidelines. 
Commercial Property or Owner of a business that owns real estate. This is not a good fit for TCF. TCF does not distinguish between business owned and personally owner real estate when calculating DTI. Self Employed Income 1. SE Income. When comparing the two year period, if the most recent year is higher than the previous year, a true average is taken. If the most recent year is less than the previous year, the income is analyzed to see the percentage of change. If the decrease is more than 20%, the lower income is used…this applies to s/e, bonus, and commission. 
Example 1 2015 income $100,000, 2014 income $80,000. Since income increased in most recent year, a true average of $90,000 is used. 
Example 2 2015 income is $70,000, 2014 income $100,000. Since there is more than a 20% reduction in income, an average cannot be taken. The income that can be used is $70,000. **If DU/LP only asks for one year taxes for S/E borrower, we are able to go this route. However, if the borrower also receives W‐2 income we require 2 periods; either 2 years W‐2’s or last year’s W‐2 and YTD paystub to determine the 2 period average. 2. in regards to K1 income... We can basically use the following without exceptions:  Distributions  Ordinary Dividends  Guaranteed Payments  Items Affecting Shareholder Basis  We can only use ordinary business income if the borrower is 100% owner of the company. If there is 100% ownership between the borrowers, we can use ordinary business income. If we use Ordinary Business Income on the K1, we cannot also use income listed above.
Income Bullets 
Varying hours or multiple types of pay (OT, allowances, education hours, shift differentials) – We need a year end paystub or VOE breaking all of this down so we can segment each item out separately unless there is just OT. The written VOE typically does not segment more than OT and bonus/commission, and sometimes not even that. If using previous job, request last paystub showing the breakdown. 
Bonus – If you are using bonus income with a YTD on the paystub, UW will require documentation from the employer on how often it is paid out so we know how many months to use in the calculation (written VOE or LOE from employer). Or we will treat is as an annual payout and use a full 12 months for the recent year in our 2 year average. 
Teacher income: If they are paid less than 12 months, we are going to use a run rate to calculate their income. Unless we can prove they are paid 12 months out of the year, then we will use their monthly base pay. Or get a copy of the contract to use the 10 or 11 months of pay over a year. 
Non‐Taxable Income – TCF does not gross‐up non‐ taxable income. 
One year Job History and Employment Gap > 30 days: TCF will require a signed and dated LOE for gap in employment greater than 30 days. TCF requires 1 year of employment history reflected on the 1003‐does not have to be continuous. Can include education/training. 
Wage or salary income calculated from a self‐employed borrower: may only be used if the business income is showing a profit. Please provide an YTD pay stub and/or a pay detail. There is some room for exception to this, but this is on case by case basis. 
20% rule for declining income: applies to self‐employed and variable income (bonus, commission, etc.) TCF will average income over two periods; However IF current period is declining by more than 20% TCF will use the lower income. 
Seasonal income or applicants who work as temporary employees (including those working for temp agencies), must be verified using tax returns for the two most recent consecutive years. 
Non‐Resident Aliens: – Provide machine readable Immigrant VISA; copy of unexpired foreign passport and I‐94 or I‐797A form. If VISA has expired, I‐797A approves extension of stay in the U.S. If Borrower does not have US credit seasoned 3 years, your Borrower can provide an international credit report that they order, for the purpose of documenting trade line seasoned 3 years. This can be closed credit. Asset Depletion ‐ To use assets as income ‐ 70% of savings or brokerage account divided by 360. Borrower must be able to withdraw assets with no penalty. Assets cannot be in a trust. 
IRA, Annuity income A. Can be used if the following applies 1 The borrower has unrestricted access 2 The account balance x 70%, must be enough to cover 3 years of payouts B. We require the following 1 Account statement showing the current balance so that we may calculate the 70% rule 2 One the following to calculate the income we may use A Copy of most recent award letter B Most recent federal tax return C IRS W2 or 1099 form D Copies of the borrowers 2 most recent bank statements 
If Rental Property is mortgaged ‐ rental income used only as an offset! Positive cash flow not added to income. If a rental or second home has an I/O first mortgage, TCF converts to a PITI payment. Can use Schedule E or 12 month lease and proof security deposit or proof rental income received. Departing Residence converting to rental– Provide 12 month lease; cancelled security deposit check and first month rent check. 75% of gross rent to offset PITI. You do not have to document departing property equity. No prior landlord experience required. 
Offer Letter or Employment Contract: for Salary (closing before new job commences) – Start Date must be within 45 days of loan closing. Needs to be in the same line of work as previous job. 
Borrower on leave – If Borrower will return to work before first TCF Payment is due (the 23rd of month following f u n d i n g ) TCF can use final prior to leave paystub to calculate full‐time base income. If borrower has variable income (overtime, shift differentials, bonus, etc.) TCF will average variable pay over two periods (2013‐14 or 2014+ YTD). Submission must include: Letter from employee and employer stating return date and same hours; Final paystub prior to start of leave and VOE or benefits statement to show start of leave period. If Borrower will not return prior to first TCF Payment, will qualify using leave pay. TCF does not follow DU or LP findings. The only exception is we’ll follow a finding for one year tax returns. Income from RSU: need 2 periods of history ‐ 2013 and 2014, or 2014 + YTD. Provide documentation verifying it is a continuing part of the compensation package, vesting schedule, and history of converting the restricted stock to cash through investment account statement. 
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Email submissions to [email protected] Max attachment size is now 25 MB. You will get an Auto Reply for each email sent to [email protected] if you don’t get an Auto Reply your email was not received! TCF forms: 1. Qualifying Worksheet (fillable form, do not hand write) Will Calculate Qualifying Payment for you. 2. Submission Form ‐ 3. Notice and Authorization (All Borrowers sign) 4. Mortgage Broker Services Cert signed by MLO. 5. Specific State Forms A. NY, FL, and SC have state specific forms and need to be signed by all borrowers before submitting the file to TCF. Please utilize our website for these forms www.tcfbrokerloans.com 
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Additional Documentation Needed First mortgage 1003/1008 You do not need to create a new 1003/1008. Tri Merged Credit Report –not more than 90 days old at time TCF puts your loan on our system. First Mortgage DU or LP Findings – if only one year tax returns required, TCF will follow. If borrowers have varying paystubs; overtime; shift differentials, work part time or commission income, TCF will average that variable income over 2014 + YTD. Submission package must include a year‐end 2014 paystub or a detailed VOE that breaks out all variable pay separately. Bonus income – must provide VOE so we know how often bonuses are paid. Rental properties or second home – include Mortgage Statements, tax bills; insurance premiums, HOA statement in submission package. Will not U/W until received. Appraisal ‐OK to submit with appraisal to follow. Separate attachment in original pdf format with color photos. Desk Reviews ordered on all appraisals‐ Add 5 business days if submitting Appraisal later. Purchase Contract and any addendums, if applicable and Prelim TCF Closing and Insurance Information Section 
The Standard TCF Final Conditions are: A. Final 1st mtg. 1003/1008 B. Flood Cert (see TCF Approval for instructions); C. TCF form #913 Fee Sheet D. EOI with TCF Mortgagee Clause/Lose Payee. E. TCF BANK MORTGAGEE CLAUSE Homeowners; TCF National Bank Mail Code PCC‐2E‐I (Attn Escrow Dept) 1405 Xenium Lane N. Plymouth, MN 55441 F. TCF BANK FLOOD INSURANCE MORTGAGEE CLAUSE: TCF National Bank Mail Code PCC‐2E‐L (Attn: Flood Clerk) 1405 Xenium Lane N Plymouth, MN 55441 A. Flood Insurance premiums must be “paid in full” prior to docs. Provide declarations page showing paid in full and receipt. G. TCF Docs must be signed within 7 calendar days of the doc date. Do not sign before date on the docs. If signing after the doc date Escrow must line through & change 3 dates on Notice of Right to Cancel to reflect the date borrowers sign& borrower must initial those date changes H. TCF has a Notice of Right to Cancel in Refinance and Purchase closing packages. No 3‐day delay on funding Purchase Transactions. For Payoff requests, NOTE requests or if customer has questions regarding there booked TCF HELOC TCF Customer Service number‐ 800 TCF Lend ‐ 800‐823‐5363