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SunTrust Bank

Agency Overlays Matrix

Correspondent Lending Page 1 of 3 Last Revision Date: 03/19/2021 (Correspondent) Agency Overlays Matrix **Note: As of April 24, 2020, Truist applied temporary Agency product restrictions based on occupancy type, transaction type, number of units, minimum credit score,

Agency Overlays Matrix - Correspondent Seller Guide

**Note: As of April 24, 2020, Truist applied temporary Agency product restrictions based on occupancy type, transaction type, number of units, minimum credit ...

CAgencyCreditOverlays
Agency Overlays Matrix

Correspondent Lending

Agency DU Agency LPA Agency Plus DU Agency Plus Select - DU Agency Plus LPA Agency Plus Select - LPA HomeReady DU Home Possible LPA Texas 50(a)(6) - DU Texas 50(a)(6) - LPA

**Note: As of April 24, 2020, Truist applied temporary Agency product restrictions based on occupancy type, transaction type, number of units, minimum credit score,

and maximum LTVs. Refer to Bulletin COR20-015. Additional overlays resulting from these temporary restrictions and other COVID-19 related updates are outlined

in this document (see the "Temporary COVID-19 Related Restrictions" topic below).

Truist Bank Agency Overlays ­ as of March 19, 2021

Products

In order to mitigate the risk on the loans we purchase, we have overlays in our guidelines in addition to

Agency investor (i.e., Fannie Mae and Freddie Mac) requirements. This summary of overlays is being

provided as a reference tool for AUS (DU and LPA) processed loans; it is not intended to replace our

detailed product guideline documents. An "X" under a product column indicates that the overlay applies

for that product. For complete product guidelines and for overlays (denoted by an underline) that apply

for traditionally underwritten (i.e., non-AUS) loan transactions, please refer to the applicable product

description in the Correspondent Seller Guide.

Topic

Overlay Description

Temporary COVID-19 Related Restrictions

Appraisal Requirements: Appraisal Completion Reports (Forms 1004D/442) must adhere to standard requirements. Truist is not aligning with GSE flexibilities at this time.

X X X X X X X X X X

Credit Score Requirements: At least one borrower on the transaction must have a

usable credit score.

X X

X X X X

Credit Score Requirements: Minimum credit score is 680.
Maximum LTV: Primary Residence, Fixed Rate & ARMs  2-4 Units (all transaction types): Not permitted

X X X

X

X X X X

X X X

X

X X

Maximum LTV: Primary Residence, Fixed Rate & ARMs  Cash-Out Refinance, 1 Unit: Max 70% LTV

X X X

X

X X

Maximum LTV: Second Home, Fixed Rate & ARMs  Purchase, 1 Unit: Max 70% LTV

X X X

X

Maximum LTV: Second Home, Fixed Rate & ARMs

 Limited Cash-Out (Rate/Term) Refinance, 1 Unit: When the existing lender is

not hBBT/hST/Truist, the max LTV is 70%

X X X

X

Note: hBBT refers to BB&T now Truist; hST refers to SunTrust now Truist

Maximum LTV: Second Home, Fixed Rate & ARMs  Cash-Out Refinance, 1 Unit: Not permitted

X X X

X

Occupancy: Investment property transactions are not permitted.

X X X

X

Power of Attorney: Whenever the Attorney-in-Fact under the POA is an individual employed by the title insurer or the title agent, then the following is required for mortgages with note dates on and after April 7, 2020:  After the Closing Disclosure has been delivered to the borrower but prior to
closing, an employee of the originating lender or settlement agent must explain and discuss the terms of the loan and use the POA with the borrower X to confirm that the borrower understands them. This discussion must take place in person or telephonically and must be memorialized by an acknowledgement by the borrower of his or her understanding of the terms of the loan. The acknowledgement must be in writing.

X X

X

X

Self-Employed Borrowers:  The COVID Business Impact & Continuity Attestation letter is required in the
credit underwriting submission on all non-delegated loans. This is in addition to existing verification of employment (VOE) and continuity of income requirements already in place.  A Borrower Acknowledgement (for which the borrower attests regarding income/employment and forbearance) must be executed at closing for all loans.

X X X X X X X X X X

Verification of Employment:

 Salaried/Hourly Wage Earners: A Borrower Acknowledgment (for which the

borrower attests regarding income/employment and forbearance) must be executed at closing for all loans.

X X X X X X X X X X

 Self-Employed Borrowers: See "Self-Employed Borrowers" above within this

"Temporary COVID-19 Related Restrictions" topic.

Appraisal

Appraisal Waivers: Not eligible

X

X

Requirements

Property Condition Ratings: For properties with initial Condition Ratings of C5 or C6, the appraisal must be completed subject to completion of the deficient item(s). X

X X

X

X

Transferred Appraisals: Transferred appraisals are not eligible.

X X X X X X X X X X

AUS Eligibility

Temporary COVID-19 Related Restrictions: See the "Temporary COVID-19 Related Restrictions" topic in this matrix.

X X X X X X X X X X

A-minus transactions (including Affordable Merit Rate® Mortgages) are not eligible.

X

X X

X

Community Land Trusts

Community Land Trusts are not eligible.

X

X X

X

X

ConstructionLending: SingleClosings

Not eligible for LPA. Log homes are not eligible.

X

X X

X

X

X

X X

X

Construction-

Not eligible for LPA.

Lending: Two-

X

X X

X

X

Closings

Credit Score

Minimum credit score is 720.

X

X

Requirements

Temporary COVID-19 Related Restrictions: See the "Temporary COVID-19 Related Restrictions" topic in this matrix.

X X X

X

X X X X

Electronic

The use of electronic signatures is not permitted for the following: Security

Signatures

Agreement and Addendums, IRS Form W-9, and any notarized documents (inclusive X X X X X X X X X X

of remote and online notarizations).

Last Revision Date: 03/19/2021 (Correspondent)

Page 1 of 3

Agency Overlays Matrix

Correspondent Lending

**Note: As of April 24, 2020, Truist applied temporary Agency product restrictions based on occupancy type, transaction type, number of units, minimum credit score, and maximum LTVs. Refer to Bulletin COR20-015. Additional overlays resulting from these temporary restrictions and other COVID-19 related updates are outlined in this document (see the "Temporary COVID-19 Related Restrictions" topic below). Products

Topic

Overlay Description

Agency DU Agency LPA Agency Plus DU Agency Plus Select - DU Agency Plus LPA Agency Plus Select - LPA HomeReady DU Home Possible LPA Texas 50(a)(6) - DU Texas 50(a)(6) - LPA

Employment Offers or

Fannie Mae's "Option #1 - Paystub Obtained Before Loan Delivery" requirements for employment offers or contracts is not offered.

X

X X

X

X

Contracts

Freddie Mac's "Option #2" requirements for income commencing after the note

date (where Freddie Mac indicates the commencement of income from new primary

employment must be before the delivery date and where Freddie Mac also permits

X

X X

X

X

cash-out refinance, 2-4 unit primary residence, second home, and 1-4 unit

investment property transactions) is not offered.

Escrow/Impound An escrow/impound account must be established for payment of the flood

Account for a Property in a

insurance premium for all applicable loans delivered, regardless of any exception under HFIAA for small lenders. See the "Escrow Accounts and Escrow Waivers"

X X X X X X X X X X

SFHA

subtopic within Section 2.01 Agency Loan Programs for additional information.

Frozen Credit

The credit report utilized to make the credit decision must reflect all three credit repositories have been accessed and none are currently frozen.

X X X X X X X X X X

Geographic

Alaska, Hawaii, U.S. Territories: Not eligible for purchase or funding.

X X X X X X X X

Restrictions

Texas Section 50(a)(6) Mortgages: Not eligible as a Home Possible Mortgage.

X

X

Individual Taxpayer Identification Number Loan Programs / Other Financing Arrangements

An individual taxpayer identification number is not allowed in lieu of a valid SSN.
ARM transactions are not permitted. The Affordable Merit Rate® Mortgage, eligibility exceptions for HomePath Properties, Freddie Mac Renovation Mortgages (excluding CHOICERenovationSM), and Shared Equity Plans offered under Freddie Mac's guidelines are not eligible.

X X X X X X X X X X

X

X

X X X X X X X X

X

HomeStyle Renovation and CHOICERenovation Mortgages: · With the exception of ARM loans, all HomeStyle Renovation and
CHOICERenovation loans must be delivered to Truist for purchase within 9 months of the date of the mortgage note. Additionally, all renovation work must be completed when the loan is delivered to Truist for purchase. · All HomeStyle Renovation and CHOICERenovation ARM loans must be delivered to Truist for purchase within 5 months of the date of the mortgage note. Additionally, all renovation work must be completed when the loan is delivered to Truist for purchase.

X X X X X X X X X X

Maximum LTV Requirements

Maximum LTV/TLTV/HTLTV: Primary Residence, Fixed Rate  Purchase and Limited Cash-Out Refinance, 1 Unit: Max 90% LTV/TLTV/HTLTV

X

X

Mortgage Insurance

Community Seconds: See "Community Seconds" under the "Secondary Financing" topic in this matrix.

X

X

X

Temporary COVID-19 Related Restrictions: See the "Temporary COVID-19 Related Restrictions" topic in this matrix.

X X X

X

X X X X

Standard mortgage insurance coverage must be obtained. The alternatives to

standard mortgage insurance coverage offered by DU and LPA (i.e., minimum coverage with corresponding LLPAs [DU] and Custom MI [LPA] are not allowed.

X X X X X X X X

Lender-Purchased Mortgage Insurance (LPMI): Only a single premium option is offered. Monthly and annual premiums are not available.

X X X X

X X

Occupancy

1-unit, primary residence transactions only are eligible. 2-4 unit primary residence, second home, and 1-4 unit investment property transactions are not permitted.

X

X

Power of Attorney

Temporary COVID-19 Related Restriction: See the "Temporary COVID-19 Related Restrictions" topic in this matrix. A power of attorney is not permitted on cash-out refinance transactions.
A power of attorney may not be used to facilitate a closing via a recorded, interactive session conducted via the Internet.

X X X

X

X

X

X

X

X X X X X X X X X X

After the finalized Closing Disclosure has been delivered to the borrower but prior

to closing, an employee of the originating lender or settlement agent must explain

and discuss the terms of the mortgage and use of the POA with the borrower to

confirm that the borrower understands them. This discussion must take place in

person, telephonically or using a video conference system and must be

memorialized in an acknowledgment by the borrower of his or her understanding

X

of the terms of the mortgage. The acknowledgment:

· must be in writing,

· must be retained in the mortgage file, and

· must be made available upon request.

X X

X

X

Electronic signatures (inclusive of remote and online notarizations) are not permitted. See the "Electronic Signatures" topic in this matrix.

X X X X X X X X X X

Property Assessed Clean Energy (PACE) Loans

Temporary COVID-19 Related Restrictions: See the "Temporary COVID-19 Related Restrictions" topic in this matrix. PACE loans are not eligible for subordination. All PACE loans must be paid off as a condition of obtaining a new mortgage.

X

X X

X

X

X X X X X X X X X X

Last Revision Date: 03/19/2021 (Correspondent)

Page 2 of 3

Agency Overlays Matrix

Correspondent Lending

**Note: As of April 24, 2020, Truist applied temporary Agency product restrictions based on occupancy type, transaction type, number of units, minimum credit score, and maximum LTVs. Refer to Bulletin COR20-015. Additional overlays resulting from these temporary restrictions and other COVID-19 related updates are outlined in this document (see the "Temporary COVID-19 Related Restrictions" topic below). Products

Topic

Overlay Description

Agency DU Agency LPA Agency Plus DU Agency Plus Select - DU Agency Plus LPA Agency Plus Select - LPA HomeReady DU Home Possible LPA Texas 50(a)(6) - DU Texas 50(a)(6) - LPA

Property

A. M. Best Company, Inc.: Either:

Insurance Rating · a "B+" or better Financial Strength Rating and a Financial Size Category of "III"

Requirements

or greater in Best's Insurance Reports, or

X

X X

X

X

· an "A" or better Financial Strength Rating and a Financial Size Category of

"VIII" or greater in Best's Insurance Reports Non-US Edition

Properties with Resale

Resale Restrictions that Terminate Automatically: LTV/TLTV/HTLTV ratios must be

calculated using the lesser of the sale price or appraised value.

X

X X

X

X

Restrictions

Affordable Seconds / Community Seconds: See "Affordable Seconds" and "Community Seconds" under the "Secondary Financing" topic in this matrix.

X X X X X X X X

X

Property Types

Indian lands are not eligible for leasehold estates.

X X X X X X X X X X

MH AdvantageTM properties are not eligible. [Note: Fannie Mae's MH Advantage

initiative offers affordable conventional financing for manufactured homes (MH) that is designed to meet specific construction, architectural design, and energy efficiency standards

X

that are more consistent with site built homes.]

X X

X

X

Manufactured Home Primary Dwelling Units: Not eligible

X X X X

X X X X

Manufactured Home Accessory Dwelling Units: Not eligible

X X X X X X X X X X

Qualifying Ratio Maximum 50% DTI

X

X X

X

X

Refinances

Cash-Out Refinances: Not eligible

X

X

Disaster Related Limited Cash-Out Refinance: Disaster-related limited cash-out refinance flexibilities provided by Fannie Mae are not eligible.

X

X X

X

X

Secondary

Affordable Seconds:

Financing

· Treating an Affordable Second in LPA as a Gift, Rather than as Secondary

Financing: Not permitted. [Note: This overlay applies for loans originated using the

legacy 07/05 (Rev. 06/09) version of Form 65, Uniform Residential Loan Application AND the Legacy LPA Specification Version 4.8.01 and Lower ONLY.]

X

· Properties Subject to Income-Based Resale Restrictions: The source of the

Affordable Second may not be a non-profit entity that is also the property

seller but is not affiliated with a government agency.

X X

X

X

Community Seconds: · Subsidizing the sales price on a Community Seconds mortgage is not
permitted.
Community Seconds: · 5/5 ARMs, 1-4 units, Purchase and Limited Cash-Out Refinance: The loan
must comply with the maximum ARM TLTV ratios outlined in the applicable first mortgage product description; the TLTV cannot be expanded to 105%.
Permanently Modified HELOC: Non-AUS guidelines apply. Refer to the permanently modified HELOC guidelines outlined in the applicable guideline document for additional information.

X

X X

X

X

X

X

X

X X

X

Self-Employed Borrowers Settlement Agent

Rural Housing Service (RHS) Leveraged Seconds are not eligible.
Temporary COVID-19 Related Restrictions: See the "Temporary COVID-19 Related Restrictions" topic in this matrix. An attorney/title agent is not allowed to close his/her own loan or that of an immediate family member.

X X X X X X X X X X X X X X X X X X X X X

Spousal/Partner Buy-Out Temporary Buydowns

A spousal/partner buy-out transaction is not eligible.
An interest rate buydown plan must provide for: a buydown period not greater than 36 months, and increases of not more than 1% in the portion of the interest rate paid by the borrower in each 12-month interval. More frequent changes are not permitted.

X

X X

X

X X

X

Temporary buydowns are not permitted on "no cash-out" refinance transactions.

X

Lender-funded buydowns are not permitted.

X

X

Title Binder/Policy/ Insurance

Properties Purchased at Auction: Short form title policy is not acceptable
Unexpired Redemption Period: An unexpired redemption period exception is unacceptable, regardless if the title policy contains affirmative language that the lender will not suffer loss or damage as a result of the situation or recites them in Schedule B, Part II (subordinate exceptions).

X X X X X X X X X X X X X X X X X X

Validation of Parties to the Mortgage Transaction
Verification of Employment

The GSA EPL, HUD LDP, and Truist Ineligible Lists must be reviewed.

X X X X X X X X X X

Temporary COVID-19 Related Restrictions: See the "Temporary COVID-19 Related Restrictions" topic in this matrix.

X X X X X X X X X X

Last Revision Date: 03/19/2021 (Correspondent)

Page 3 of 3


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