A. Required Submission Form

Please see File Documentation Requirements for Minimum Submission Standards.

 B. Age of Documentation

Information used to make the credit decision must be current. The maximum age of documents at closing is as follows:

Item 

Non-Conforming Existing Property 

Non-Conforming New Construction Take-Out

Credit Documents

90 days old 

90 days old 

Pay Stubs

90 days old

90 days old

Credit Report

90 days old 

90 days old 

Appraisal 

90 days old1 

90 days old1 

 At closing, if the appraisal is older than 90 days but is less than one year old, obtain an appraisal update from the appraiser indicating that the property value has not declined since the original Appraisal date. If the effective date of the appraisal exceeds one year or the value has declined, a new appraisal is required.

C. Foreign Documentation

Foreign documentation is not acceptable, whether translated to English or not.

D. Standard Documentation

Standard documentation consists of complete verification of income and assets. It is the Broker’s responsibility to provide sufficient documentation to accomplish this to AmMAC’s satisfaction.

Re-verification

A Borrower's Consent for Credit Check Notice must be completed to permit subsequent re-verification as required by quality control or investors.

Internet Documents - Credit Reports, Income, Employment and Asset Verification

Internet documents/downloads of credit reports as well as income, employment and asset verification are acceptable. This allowance for internet docs does not change the required content or level of documentation needed. The information must be easy to read, understandable, have no evidence of alterations, erasures or white-outs, and must make sense based on the borrower profile and transaction terms.

The following source validation criteria apply to all documents obtained via the Internet:

 

Identify the borrower as the employee or owner of the applicable account. A full and complete account number is required—truncated or partial account numbers are not acceptable.
 

Identify the credit reporting agency, employer, or depository/investment firm's name and source of information 
 

Headers, footers, and the banner portion of the printout of the downloaded web page(s) must reflect the appropriate firm 
 

Display the internet uniform resource locator (URL) address and the date and time printed 
 

If faxing an internet download, make sure fax header does not cover URL information

Verification of Employment and Income

Employment must be verified for all borrowers, for the most recent two full years, including part time jobs (if income is being used to qualify; see also: Second Job/Part Time Income). Employment and income for a salaried employee must be verified by obtaining ALL of the following:

 

Borrower's Filed Tax Returns for the most recent two years.
 

In addition to the above, for borrowers with Bonus, Commission, Tip or Overtime Income, their past two year-end pay stubs must also be provided (or VOI results can also be used to verify the amounts of this variable income). Also refer to Income Analysis – Bonus, Commission, Overtime or Tip Income.
 

For self-employed borrowers, employment is verified by a combination of tax return verification for the past 3 years filed returns, as well as bank statement analysis to ensure the business remains a going concern. No written VOE is obtained for Self-Employed borrowers but Verbal VOEs are still performed. Both personal and business tax returns must be verifiable via 4506-T.

Verbal VOEs

A verbal verification of employment must be completed for all borrowers’ primary and secondary employment. The Verbal VOE must be completed within 10 business days prior to the note date for employment-type income sources, including but not limited to salary, bonus, commission and overtime, and within 30 calendar days prior to note date for self-employment income. Verbal verification of employment for self-employed borrowers should be obtained from the business’ accountant, to verify that the business remains a going concern. For military income, a military Leave and Earnings Statement dated within 30 days prior to note date is acceptable in lieu of a verbal verification of employment. Passive income sources such as interest, dividends, and alimony do not require a verbal verification of employment.

A verbal confirmation of employment generally should be from the employer's human resources or personnel department. If the employer does not have such a department, the Borrower's supervisor or manager may provide the confirmation. Generally, other personnel are not an acceptable source of verification.

The telephone number that the Borrower provided as his employer's number must be independently confirmed by using the phone book, calling Directory Assistance, etc.

Document in writing the contact with the Borrower's employer including:

 

Company name
 

Name, title and phone number of the person in the employer’s office who confirmed the information 
 

Independently-verified source of the employer’s telephone number 
 

Date of the contact 
 

Name and title of the individual who made the telephone call 
 

Confirmation that the Borrower is currently employed, including status of Active or On Leave
 

Dates of employment
 

Borrower’s current position/title

If the borrower is self-employed, employment needs to be verified with the Borrower’s CPA. Alternate sources of verification are not acceptable.

Examples of other supporting documentation include, but are not limited to:

 

Yellow Page ads, 
 

Copies of business licenses, or 
 

Internet Web sites. Acceptable internet Web sites include the borrower’s business Web site, government, union, or professional association Web sites.

Document the verification in writing, including:

 

Independently-verified source of the employment information. 
 

Name and title of the individual who completed the verification.

IRS Form 4506-T

Each Borrower(s) must execute an IRS Form 4506-T at time of loan application and at loan closing for all loans. IRS Form 4506-T authorizes AmMAC to request copies of the tax returns from the IRS as needed to fulfill quality control and audit requirements. Separate 4506-T forms will be required for any and all business tax returns, in addition to personal tax returns used to qualify.

Verification of Funds

AmMAC independently verifies via Verification of Deposit (VOD), all funds used for down payment and/or closing costs for our transaction. Reserve credit may still be given for accounts where the institution refuses to provide a VOD to a third party (AmMAC), but they may not be used as the source of down payment or closing funds.

The Borrower must provide bank or brokerage statements for the most recent three months in addition to a signed General Authorization for each bank or brokerage institution to enable AmMAC to complete a Verification of Deposit request for each account provided.  Exact copies must be retained in the loan file. If the statements are issued quarterly, the Borrower must provide a statement from the most recent quarter. The sources of other funds such as home equity, gift letters, stocks, etc., must be verified in accordance with provisions of Cash Assets.

Bank or Brokerage Statements - The Borrower's bank or brokerage statement(s) must be computer-generated or typed and identify clearly:

 

Depository institution
 

Account holder(s)
 

Account number (full number, not truncated)
 

Time period covered by the statement
 

Deposit and withdrawal transactions
 

Ending account balance

For accounts used for down payment and/or closing costs, any ‘large’ deposits on these statements must be sourced. ‘Large’ deposits are defined as a single deposit that equals or exceeds the lesser of $5,000 or 25% of total monthly qualifying income for the loan. When the date of the Borrower's most recent bank or brokerage statement is more than 45 days prior to the date of the Borrower's application, the Borrower must supply a supplemental statement reflecting a machine-printed account number, balance, and date. Any bank-generated forms, such as deposit or withdrawal slips or bank machine inquiries, are acceptable.

Verification of Mortgage

The Borrower's current or previous mortgage can be verified with any of the following:

 

A credit reference from a credit reporting agency covering at least the previous 12 months activity. If 12 months activity is not covered, one of the other sources must be used to verify the Borrower's payment history.
 

The Borrower's canceled checks for the last 12 months. Both sides of each check, front and back, must be copied. The checks must:

 

Be legible;
 

Identify the mortgage servicer (or mortgage holder) as the payee; and
 

Indicate that the mortgage servicer or holder endorsed the check for deposit and the date of that endorsement.
 

The Borrower's year-end mortgage account statement (provided it includes a payment receipt history) supplemented by the Borrower's canceled checks for the months that have elapsed since the statement was issued.
 

The Borrower's depository statements to cover the most recent 12-month period showing either electronic payments that can be identified to the Servicer via Payee detail or automatic debits made by the Servicer for the amount of the Mortgage payment. The statements must:

 

Show the automatic debit by the Servicer for the amount of the Mortgage payment
 

Identify the Servicer as payee
 

Indicate the date of the debit

For properties owned less than 12 months, verification must cover the payment history for the duration of the current loan, as well as the housing payment (either rent or the prior mortgage) to make up the remainder of the 12 month payment history. A gap of up to 2 months is permissible between the end of one loan or rental period and the start of a new loan, but a total of 12 consecutive payments must be documented (i.e. it might cover a 14 month calendar period in order to document 12 payments). Borrowers who cannot support verification of 12 months of mortgage/housing payment history are not eligible for financing with AmMAC.

Verification of Rental Payment History

The Borrower's current or previous rental can be verified with any of the following:

 

The Borrower's bank statements to cover the most recent 12-month period for the rental payments. The statements must indicate the amount and date of the payment, as well as the payee.
 

Copies of canceled checks to cover the most recent 12-month period for the rental payments. The canceled checks must

 

Be legible
 

Show the bank endorsement for deposit
 

Show the date of bank endorsement
 

Identify the landlord as payee
 

Be copies, front and back
 

Copies of Cashier’s Check receipts for the most recent 12 month period for the rental payments, are also acceptable, provided the payee and date paid, can be determined.