Products Guidelines & Overlays

Although Cornerstone prefers that correspondents use Fannie Mae (DU) guidelines in evaluating their loans, use of either LP or DU is permissible. However, running both simultaneously, in order to obtain a more favorable result, is strongly discouraged. Similarly, switching AUS from DU to LP, or vice versa, is strongly cautioned. In the event of an agency audit, this practice could potentially be identified as a risk factor, resulting in exceptions up to and including repurchase.

Unless otherwise addressed in Cornerstone overlays, Fannie Mae/Freddie Mac underwriting guidelines should be followed. Links to each web-site provided below.

Please click on the following link for all conforming conventional overlays. Changes to overlays will always be preceded by a memorandum to our correspondent customers. Memorandum will be posted to the memorandum section of this web-site immediately upon publication. Policy/overlay changes are effective the date of the published memorandum, and will be posted to the web-site within 7 business days of publication. It is the Correspondent’s sole responsibility to ensure that all personnel involved in selling loans to CHL are provided updated requirements and guidelines governing origination and sale of loans to CHL.

Goverment Programs

Correspondent lender may use either LP or DU to evaluate their loans. Unless otherwise indicated in Cornerstone Government overlays, FHA/VA underwriting guidelines should be used. Links to each web-site are provided below.

FHA

Credit

Valuation

VA

Please click on the following link for all FHA/VA/USDA Overlays. Changes to overlays will always be preceded by a memorandum to our correspondent customers. Memorandum will be posted to the memorandum section of this web-site immediately upon publication. Policy/overlay changes are effective the date of the published memorandum, and will be posted to the web-site within 7 business days of publication. It is the Correspondent’s sole responsibility to ensure that all personnel involved in selling loans to CHL are provided updated requirements and guidelines governing origination and sale of loans to CHL.

Jumbo Program

Unless otherwise addressed in the Jumbo Product Program Eligibility Guide, Fannie Mae underwriting guidelines should be followed. Program Eligibility Guide link below: