Saint Cloud Mortgage

Our real estate department utilizes the appraisal report to assist in the determination of the property value. However, the St. Cloud Mortgage Analyst arrive at a valuation based on their review of the appraisal report and it is St. Cloud Mortgage's valuation that is utilized to compute the LTV.

All appraisals are subject to review by St. Cloud Mortgage's real estate department. All appraisals are desk reviewed, others maybe rejected as inadequate. In cases where there are questions concerning the appraisal report, the St. Cloud Mortgage's real estate department will contact the appraiser for clarification. In many cases, appraisers are able to supply additional information to support their opinion of value, however, it is important to note that this process always delays the funding process. St. Cloud Mortgage reserves the right to determine that submitted appraisal is unacceptable.

It is important that appraisers be engaged by St. Cloud Mortgage that they are aware of St. Cloud's appraisal requirements before the appraisal is started in order to avoid any misunderstandings. Also, appraisers need to make themselves available to St. Cloud

Mortgage's staff appraisers in order to avoid delays in the appraisal review process.

Complete details about our process and requirements be made available to the appraiser via our Engagement Letter and our Valuation Guidelines.

Appropriate formats and the required contents of each appraisal will be provided to the appraiser via the Engagement Letter and Valuation Guidelines. Some reports are acceptable for specific property types, but Complete Summary narrative reports are more appropriate for most property types. Any questions regarding the/or content of a report will be discussed with St. Cloud Mortgage real estate department before the appraisal process begin.

An executed Engagement Letter must be included with each appraisal, so the appraiser will be aware of our requirements before the assignment is started.

The appraisal should be accompanied by appropriate documentation, (example, agreement of sale, rent roll, commercial lease, etc. ) as described on the Engagement Letter and our Valuation Guidelines. The lack of relevant documents can delay the review process.

The effective date of an appraisal must be within six months of the date of closing. For information on the Engagement Process, a broker should rely on St. Cloud Mortgage

Loan Officer or Real Estate Analyst; the Loan Officer has constant access to the Real Estate department.

Because St. Cloud Mortgage programs are stated income/stated asset, St. Cloud

Mortgage can close a loan as quickly as an appraisal and title report can be submitted and accepted by St. Cloud Mortgage. Generally, St. Cloud Mortgage closes loans within 4 weeks of loan submission. The process depends on the status of the appraisal and title report.

The initial submission for pre-approval requires only a completed 1003, broker's tri-merged credit report with scores and the St. Cloud Mortgage loan request form.

Pre-approvals are generally issued within 48 hours of receipt. The pre-approval is a conditional commitment to fund a loan based solely on the information supplied by broker and the requirements stipulated in pre-application.

St. Cloud Mortgage utilizes the credit report submitted by the broker, evaluate the applicant's credit and, grade the loan as to price and permitted LTV ratio. St. Cloud

Mortgage does not run its credit report until the property appraisal has been reviewed and accepted by St. Cloud Mortgage. Therefore, any changes in borrower's credit standing as reflected by the credit score may result in a change in price and LTV, as well as, denial of the loan.

Additional supporting documentation or stipulations contained in the pre-approval must be submitted for underwriting review and acceptance prior to closing. Requests to waive pre-approval stipulations can only authorized by an underwriter issuing a revised pre-approval form. No oral waiver or stipulation is allowed by any St. Cloud Mortgage employee and will not be honored by St. Cloud Mortgage under any circumstances.

Brokers and applicants need to be aware the St. Cloud Mortgage appraisers review all appraisals. We recommend that reference the section on our Appraisal Process for more information.

Mortgagor title commitments should be ordered once appraisal has been approved. St. Cloud Mortgage requires that all exceptions contained in Schedule BII of the title report be removed as of the time of closing. No loan can close with exceptions on section BII of the title report without the approval of St. Cloud Mortgage's legal department. 

Generally, a pre-approval contains all of the condition necessary to have a loan approved for closing. A corrected 1003, remerged credit report, and the completed Loan Request Form are required in order to be submitted to underwriting for approval.

INCOME - All St. Cloud Mortgage programs are stated income, but income must be stated by the applicant and included section VZ of the 1003. No application can be considered complete with this section left blank. No St. Cloud Mortgage employee is allowed to complete this section of the 1003 for any reason. St. Cloud Mortgage does not verify an applicant's income, but relies solely on the applicant's statements contained in 1003 application.

CREDIT - The primary borrower is the applicant stating highest monthly income on the 1003. St. Cloud Mortgage utilizes credit report submitted by the broker to price and grade loan for pre-approval. All loans are subject to a credit ordered by St. Cloud Mortgage prior to closing. Any change in the applicant's credit status as determined by a change in credit score may cause the loan to be re-priced and then lowered. The loan may also be denied for a serious deterioration of credit quality.

ASSETS - St. Cloud Mortgage does not verify an applicant's assets unless the circumstances of the loan, in the judgment underwriter, warrant verification of assets.

Application should have sufficient assets to complete the transaction requested in the application.

EMPLOYMENT - St. Cloud Mortgage does a verbal verification of employment prior to closing. All self-employed borrowers must have a verifiable business in existence at the time of closing.

LICENSES - St. Cloud Mortgage requires all commercial and/or self-employed borrowers to submit copies of current business licenses. Special licenses for automotive properties are required, as well as, properties containing underground tanks.

VERIFICATION OF MORTGAGE - Verification of mortgage payment history is required in instances where the mortgage is not reported in the tri-merged credit history report. These instances, St. Cloud Mortgage requires 12 months cancelled checks, bank statements or, if applicable, a completed verification of mortgage.

VERIFICATION OF RENT - Verification of rent maybe required based on credit history and loan circumstances. The verification must be 12 months cancelled checks. A re-verification form can only be utilized in instances where management company or institution is collecting the rents.

RENT ROLLS - Rent rolls are required on all properties that contains 5 or more units and, any commercial property not 100% owner occupied. The rent roll must be certified by the applicant as to authenticity and properly signed and dated.

ESTOPPEL CERTIFICATES - Estoppel certificates are required for non-residential properties ( 9+ units and mixed-use are excluded ) where one or more tenants each occupy 40% or more of the square footage of the subject property. The tenant executes the estoppel certificate and its purpose state the tenant's understanding of the terms and conditions of the lease. In addition, the estoppel certifies to St. Cloud Mortgage that the tenant's rights of ownership are subordinate to St. Cloud Mortgage rights as the mortgagee.

SURVEYS - St. Cloud Mortgage does not require surveys unless the title underwriter will not remove the survey exception on title report without a survey.

TITLE INSURANCE - St. Cloud Mortgage reserves the right to accept title insurer.

Title insurers must generally be approved in good standing with FannieMae and Freddie Mac.