j.p. morgan acceptance corporation ii ABS 15G
Exhibit 99.6
EXECUTIVE
SUMMARY
Third Party Due Diligence Review
Overview
Consolidated Analytics, Inc (“Consolidated Analytics”), a third party due diligence provider, performed the review described below on closed-end second lien mortgage loans acquired by JPMorgan Chase Bank, National Association. The review included a total of 3,002 newly originated residential mortgage loans, in connection with the securitization identified as JPMMT 2025-CES5 (the “Securitization”). The Review was conducted from January 2024 through July 2025 on closed-end second lien mortgage loans originated between December 2023 and July 2025.
Scope of Review
Credit Review
Consolidated Analytics performed a “Credit Review” to verify compliance with guidelines in effect at the time of loan origination, or other guidelines provided by Client prior to review, and ensure the characteristics used by the underwriter are supported by the file documentation; and determine whether any loans outside of those guidelines contain legitimate and approved exceptions with compensating factors.
The Credit Review attempted to confirm the following:
| a. | QM or ATR Validation / Review of 8 Key Underwriting Factors |
| i. | Income / Assets |
| ● | Validate borrower(s) monthly gross income |
| ● | Validate funds required to close, required reserves |
| ● | Review file documentation for required level of income and asset verifications |
| ii. | Employment Status |
| ● | Review file documentation for required level of employment |
| iii. | Monthly Mortgage Payment |
| ● | Confirm program, qualifying rate, terms |
| iv. | Simultaneous Loans |
| ● | Validate all concurrent loans are included in the DTI to properly assess the ability to repay |
| v. | Mortgage Related Obligations: PITI, HOA, PMI, etc. |
| ● | Validate subject loan monthly payment (PITI) and associated obligations |
| vi. | Debts / Obligations |
| ● | Validate monthly recurring liabilities |
| vii. | DTI and/or Residual Income |
| ● | Validate debt-to-income ratio (DTI) based upon income and debt documentation provided in the file |
| ● | Documentation meets Appendix Q requirements for QM Loans |
| viii. | Credit History |
| ● | Review credit report for credit history and required credit depth including any / all inquiries |
| ● | Determine representative credit score from credit report |
| b. | Validate loan-to-value (LTV) and combined loan-to-value |
| c. | Review borrower’s occupancy |
| d. | Validation through third party resource of the subject properties most recent twelve (12) month sales history |
| e. | Confirm sufficient evidence in loan file, by reviewing the underwriter’s decision to approve the loan based upon the borrows income, debt, and credit history, to support borrower’s willingness and ability to repay the debt |
| f. | Confirm that Final 1003 is sufficiently completed |
| g. | Provide Audit 1008 with accurate data based on file documentation |
| h. | Confirm Loan Approval conditions were met |
| i. | Review condominium questionnaire to verify all information is complete, prepared by an authorized representative, and address any red flags that may deem condominium project ineligible |
| j. | General QM for any loans originated under the GQM Rule |
| i. | Pricing Thresholds: |
| a. | Pricing for First Lien Loans: |
| i. | 2.25% for a first-lien covered transaction with a loan amount greater than or equal to the applicable dollar amount threshold; and |
| ii. | 3.5% for a first-lien covered transaction with a loan amount greater than or equal to the applicable dollar amount threshold; and |
| iii. | 6.5% for a first-lien covered transaction with a loan amount less than the applicable dollar amount threshold. |
| b. | Pricing for Subordinate Lien Loans: |
| i. | 3.5% for a subordinate-lien covered transaction with a loan amount greater than or equal to the applicable dollar amount threshold; and |
| ii. | 6.5% for a subordinate-lien covered transaction with a loan amount less than the applicable dollar amount threshold. |
| c. | Pricing for Manufactured Homes: |
| i. | 2.25% for a first-lien covered transaction secured by a manufactured home with a loan amount equal to or greater than the applicable dollar amount threshold; and |
| ii. | 6.5% for a covered transaction secured by a manufactured home with a loan amount less than applicable dollar amount threshold. |
| ii. | Consider Income and Assets: |
| ○ | Consumer’s current or reasonably expected income or assets (other than the value of the dwelling that secures the loan; |
| ○ | The consumer’s debt obligations, alimony, child support; and |
| ○ | The monthly DTI or residual income. |
| iii. | Verification of Income and Assets: |
| a. | Verification in compliance with one of the “safe harbor” guidelines will meet the QM verification requirement. A creditor is allowed to “mix and match” provisions of the different guidelines rather than only apply one guideline per loan. |
The specific guidelines that the CFPB is designating for the safe harbor are: The GQM Rule provides that if the creditor verifies the consumer’s income or assets, debt obligations, alimony, child support, and monthly DTI or residual income by meeting the standards of certain specified third-party underwriting manuals, then a creditor is presumed to have complied with the verification requirement. These specified manuals are:
| i. | Chapters B3-3 through B3-6 of the Fannie Mae Single Family Selling Guide, published June 3, 2020; |
| ii. | Sections 5102 through 5500 of the Freddie Mac Single-Family Seller/Servicer Guide, published June 10, 2020; |
| iii. | Sections II.A.1 and II.A.4-5 of the Federal Housing Administration’s Single Family Housing Policy Handbook, issued October 24, 2019; |
| iv. | Chapter 4 of the U.S. Department of Veterans Affairs’ Lenders Handbook, revised February 22, 2019; |
| v. | Chapter 4 of the U.S. Department of Agriculture’s Field Office Handbook for the Direct Single Family Housing Program, revised March 15, 2019; and |
| vi. | Chapters 9 through 11 of the U.S. Department of Agriculture’s Handbook for the Single Family Guaranteed Loan Program, revised March 19, 2020. |
Compliance Review
Consolidated Analytics performed a “Compliance Review” to determine, as applicable, to the extent possible and subject to the caveats below, whether the loan complies with applicable regulatory requirements as noted below, each as amended, restated and/or replaced from time to time. The Compliance Review included the following:
| a. | Test Loan Estimate(s) for accuracy and completeness as well as timing requirements as required by TRID Regulations |
| b. | Test Closing Disclosure(s) for accuracy and completeness as well as timing requirements as required by TRID Regulations |
| c. | Tolerance Testing |
| i. | Compare Loan Estimate and Closing Disclosures |
| ii. | Identify Tolerance Violations and applicable cost to cure |
| d. | Comprehensive review of Closing Disclosure to determine transaction accuracy |
| e. | Recalculation of APR and Finance Charge |
| f. | Testing of: |
| i. | Federal High Cost Mortgage provisions |
| ii. | Federal Higher Priced Mortgage Loans provisions |
| iii. | Local and/or State Anti-predatory and High Cost provisions |
| iv. | HOEPA Points and Fees |
| g. | Determine whether specified federal disclosures were provided timely based upon comparison of the application date to the dates on such disclosures |
| i. | Service Provider List |
| ii. | Home Ownership Counselling Disclosure |
| iii. | ARM Disclosure |
| h. | Compliance with QM as it relates to: |
| i. | APR Test |
| ii. | Points & Fees Test |
| iii. | Prepayment Penalty Test |
| iv. | Product Eligibility Testing |
| i. | Notice of Right to Cancel (Rescission) Review |
| i. | Confirm transaction date, expiration date, and disbursement date |
| ii. | Confirm document is properly executed by all required parties to the transaction |
| iii. | Confirm the correct Right of Rescission document was executed for the transaction type |
| j. | Confirm through NMLS the loan originator and originating firm’s license status was active and properly disclosed on appropriate loan documents |
| k. | Check the Loan participants against the exclusionary list provided by Client or by the purchaser of the Loan(s) |
| l. | Review closing documents to ensure that the Mortgage Loan information is complete, accurate, and consistent with other documents; Confirm collateral documents have been recorded or sent for recording |
The Compliance Review did not include any federal, state or local laws, constitutional provisions, regulations or ordinances that are not expressly enumerated above. Furthermore, the findings reached by Consolidated Analytics are dependent upon its receiving complete and accurate data regarding the loans from loan originators and other third parties upon which Consolidated Analytics is relying in reaching such findings.
TAPE INTEGRITY REVIEW RESULTS SUMMARY
Of the three thousand and two (3,002) mortgage loans reviewed, one thousand three hundred and sixty-five (1,365) unique mortgage loans (45.47% by loan count) had a total of one thousand five hundred sixty-three (1,563) discrepancies across thirty (30) data fields. A blank or zero value on the data tape when an actual value was captured by Consolidated Analytics was not treated as a data variance.
| Fields Reviewed | Discrepancy Count |
Percentage |
| Qualifying CLTV | 1,262 | 80.74% |
| Qualifying Total Debt Income Ratio | 87 | 5.57% |
| Borrower 1 FTHB | 34 | 2.18% |
| Interest Rate | 33 | 2.11% |
| Borrower 1 Self-Employment Flag | 24 | 1.54% |
| Qualifying LTV | 19 | 1.22% |
| Primary Appraised Property Value | 18 | 1.15% |
| Borrower 1 SSN | 10 | 0.64% |
| Borrower 2 SSN | 9 | 0.58% |
| Borrower 1 Last Name | 7 | 0.45% |
| Property Type | 7 | 0.45% |
| Borrower 2 Self-Employment Flag | 7 | 0.45% |
| Borrower 1 First Name | 6 | 0.38% |
| Borrower 2 First Name | 5 | 0.32% |
| Qualifying Interest Rate | 5 | 0.32% |
| Initial Monthly P&I Or IO Payment | 5 | 0.32% |
| Qualifying FICO | 4 | 0.26% |
| Property Address | 3 | 0.19% |
| Number of Units | 3 | 0.19% |
| Borrower 2 Citizen | 2 | 0.13% |
| Borrower 1 Marital Status | 2 | 0.13% |
| Note Date | 2 | 0.13% |
| Borrower 1 Citizen | 2 | 0.13% |
| Loan Purpose | 1 | 0.06% |
| Property County | 1 | 0.06% |
| Property City | 1 | 0.06% |
| Occupancy | 1 | 0.06% |
| Property Rights | 1 | 0.06% |
| Borrower 2 Marital Status | 1 | 0.06% |
| Loan Amount | 1 | 0.06% |
| Grand Total | 1,563 | 100.00% |
Summary of Results
OVERALL RESULTS SUMMARY
Final Loan Grades
| Overall Loan Results: | |||
| Event Grade | Loan Count | Original Principal Balance | % by Loan Count |
| A | 2,974 | $278,575,776.00 | 99.07% |
| B | 28 | $2,655,046.00 | 0.93% |
| C | 0 | $0.00 | 0% |
| D | 0 | $0.00 | 0% |
| Total | 3,002 | $281,230,822.00 | 100.00% |
| Credit Results: | ||
| Event Grade | Loan Count | % by Loan Count |
| A | 2,978 | 99.20% |
| B | 24 | 0.80% |
| C | 0 | 0% |
| D | 0 | 0% |
| Total | 3,002 | 100.00% |
| Compliance Results: | ||
| Event Grade | Loan Count | % by Loan Count |
| A | 2,998 | 99.87% |
| B | 4 | 0.13% |
| C | 0 | 0% |
| D | 0 | 0% |
| Total | 3,002 | 100.00% |
| Valuation Results: (As applicable, 3,002 loans within population did not receive a Property Review) | ||
| Event Grade | Loan Count | % by Loan Count |
| A | 0 | 0% |
| B | 0 | 0% |
| C | 0 | 0% |
| D | 0 | 0% |
| Total | 0 | 0% |
Exception Category Summary
The table below summarizes the individual exceptions which carried an associated “A”, “B”, “C”, or “D” level exception grade. One loan may have carried more than one exception. In such cases, the exception with the lowest grade would drive the loan grade for that particular area of the review. The overall loan grade is the lowest grade for any one particular review scope (ex. a loan with a Compliance Grade of “B”, a Credit Grade of “A”, and a Property Grade of “A” would receive an overall Loan Grade of “B”).
Exception Type |
Exception Level Grade |
Exception Category | Total |
| Credit | A | No Credit Findings | 2511 |
| Title Document is Partially Present | 134 | ||
| Missing Verification of Subject Property Taxes, Insurance, HOA or Other Payments | 38 | ||
| Audited DTI Exceeds Guideline DTI | 35 | ||
| Borrower 1 3rd Party VOE Prior to Close Missing | 26 | ||
| Income and Employment Do Not Meet Guidelines | 22 | ||
| Missing verification of taxes, insurance, and/or HOA fees for non-subject property | 17 | ||
| HO6 Master Insurance Policy is Missing | 17 | ||
| Property/Appraisal General | 14 | ||
| Borrower 1 Award Letter Missing | 13 | ||
| Borrower 1 Photo Identification not provided | 9 |
| Borrower 2 3rd Party VOE Prior to Close Missing | 9 | ||
| The Total Hazard Coverage is LESS than the Required Coverage Amount | 9 | ||
| Verification of Borrower Liabilities Missing or Incomplete | 8 | ||
| Missing VOM or VOR | 8 | ||
| Flood Certificate Partially Provided | 8 | ||
| Hazard Insurance Policy is Partial | 7 | ||
| Borrower 1 Paystubs Missing | 7 | ||
| Missing Credit Report Supplement | 7 | ||
| FEMA Declared Disaster Dated Prior to the Note Date, After Appraisal Date | 7 | ||
| The Final 1003 is Incomplete | 7 | ||
| Verification of Rent (VOR)/Verification of Mortgage (VOM) Document is incomplete | 7 | ||
| Housing History Does Not Meet Guideline Requirements | 7 | ||
| The Final 1003 is Missing | 5 | ||
| Borrower 1 Citizenship Documentation not provided | 5 | ||
| Borrower 1 W2/1099 Missing | 5 | ||
| HOA Questionnaire is Missing | 5 | ||
| Borrower 1 Credit Report is Incomplete | 5 | ||
| FEMA Post Disaster Inspection Report not Provided | 4 | ||
| Borrower 2 W2/1099 Missing | 4 | ||
| Borrower 1 Tax Returns Not Signed | 4 | ||
| Borrower 2 Award Letter Missing | 4 | ||
| Borrower 1 YTD Profit & Loss Missing | 4 | ||
| ATR: Reasonable Income or Assets Not Considered | 4 | ||
| Missing Payment History | 4 | ||
| Property Title Issue | 4 | ||
| Missing income documentation | 4 | ||
| Borrower 1 Gap Credit Report is Missing | 3 | ||
| Missing Trust Agreement | 3 | ||
| ATR Risk | 3 | ||
| Missing Letter of Explanation (Income) | 3 | ||
| Audited CLTV Exceeds Guideline CLTV | 3 | ||
| Borrower 2 Citizenship Documentation not provided | 3 | ||
| Audited HCLTV Exceeds Guideline HCLTV | 3 | ||
| PUD Rider is Missing | 3 | ||
| The Deed of Trust is Incomplete | 3 | ||
| Hazard Insurance Policy is Missing | 3 | ||
| Flood Insurance Policy Missing | 3 | ||
| Borrower 1 WVOE Missing | 2 |
| Borrower 2 Photo Identification not provided | 2 | ||
| Audited DTI Exceeds AUS DTI | 2 | ||
| Employment Gaps in Employment Without Sufficient Explanation | 2 | ||
| Borrower Non-US Citizen Identification Document Missing | 2 | ||
| Borrower 1 Executed 4506-T Missing | 2 | ||
| Missing Verification of Mortgage | 2 | ||
| Fraud alert is present on the credit report | 2 | ||
| Property Issue(s) are Present | 2 | ||
| Hazard insurance dwelling coverage is not sufficient | 2 | ||
| The Initial 1003 is Missing | 2 | ||
| Hazard Insurance Effective Date is after the Disbursement Date | 2 | ||
| Missing Letter of Explanation (Credit) | 2 | ||
| Borrower 1 Lease Agreements Missing | 2 | ||
| Borrower 1 Business Tax Returns Missing | 2 | ||
| Appraisal is Missing | 2 | ||
| Borrower 2 Business Tax Returns Missing | 2 | ||
| HO6 Insurance Policy Expiration Date is before the Note Date | 2 | ||
| Borrower 2 Credit Report is Missing | 2 | ||
| HO-6 Insurance Policy is Missing | 2 | ||
| Subject Property Address on Note does not match Insured Property Address | 2 | ||
| ATR: Current Employment Not Verified | 2 | ||
| Borrower 2 Tax Returns Not Signed | 2 | ||
| Income/Employment General | 2 | ||
| The Note is Incomplete | 2 | ||
| Loan does not conform to program guidelines | 2 | ||
| Income 1 Income Trend is Decreasing | 1 | ||
| No evidence of required debt payoff | 1 | ||
| HO6 Insurance Policy Effective Date is after the Note Date | 1 | ||
| Fraud Report Shows Uncleared Alerts | 1 | ||
| Borrower 2 Paystubs Missing | 1 | ||
| Ineligible Property | 1 | ||
| Asset Qualification Does Not Meet Guideline Requirements | 1 | ||
| Fraud: Potential Occupancy/Current Address Issues identified in the file | 1 | ||
| Missing VVOE dated within 10 days consummation | 1 | ||
| Borrower has less than 2 FICO scores and does not meet minimum required to be scored. | 1 | ||
| Borrower 2 Executed 4506-T Missing | 1 |
| Title issue | 1 | ||
| Borrower 1 Personal Tax Returns Missing | 1 | ||
| Borrower 1 Gap Credit Report is Expired (Greater than 10 Days from Closing/Settlement Date) | 1 | ||
| DTI exceeds program maximum | 1 | ||
| Delinquent Credit History Does Not Meet Guideline Requirements | 1 | ||
| Borrower 1 CPA Letter Missing | 1 | ||
| Missing Income - Award Letter | 1 | ||
| Flood Insurance Expiration Date is before the Disbursement Date | 1 | ||
| Approval/Underwriting Summary Not Provided | 1 | ||
| 1-4 Family Rider is Missing | 1 | ||
| Missing Lease Agreement | 1 | ||
| Borrower 1 Personal Tax Returns Less Than 24 Months Provided | 1 | ||
| Final CD: Calculating Cash to Close Closing Costs Paid, Closing Costs Financed, Down Pmt, Deposit, and/or Funds for Borrower discrepancy | 1 | ||
| Borrower 2 Gap Credit Report is Missing | 1 | ||
| Hazard Insurance Expiration Date is before the Note Date | 1 | ||
| Satisfactory Chain of Title not Provided | 1 | ||
| Flood Certificate Missing | 1 | ||
| Audited Reserves are less than Guideline Required Reserves (Dollar Amount) | 1 | ||
| Missing Property Tax Cert | 1 | ||
| Borrower 1 Credit Report is Missing | 1 | ||
| Missing Tax Cert | 1 | ||
| Income documentation does not meet guidelines | 1 | ||
| Approval/Underwriting Summary Partially Provided | 1 | ||
| Borrower information on 1003 is incomplete | 1 | ||
| Missing Appraisal | 1 | ||
| Title reports unpaid liens | 1 | ||
| Missing Closing/Final Verbal VOE | 1 | ||
| Condo Approval Missing | 1 | ||
| Borrower 1 Total Years Employment Verified is Less Than 12 Months | 1 | ||
| Missing Divorce Decree | 1 | ||
| Total Credit Grade (A) Exceptions: | 3,114 | ||
| B | Audited Loan Amount is less than Guideline Minimum Loan Amount | 5 | |
| Condo Approval Missing | 5 | ||
| Post FEMA Disaster Property Inspection Shows Property Damage | 2 | ||
| Ineligible Property | 2 |
| Audited FICO is less than Guideline FICO | 2 | ||
| Title Coverage is Less than Subject Lien | 2 | ||
| Property Issue(s) are Present | 1 | ||
| Audited CLTV Exceeds Guideline CLTV | 1 | ||
| Income and Employment Do Not Meet Guidelines | 1 | ||
| Audited HCLTV Exceeds Guideline HCLTV | 1 | ||
| Borrower 1 3rd Party VOE Prior to Close Missing | 1 | ||
| HOA Questionnaire is Incomplete | 1 | ||
| Property/Appraisal General | 1 | ||
| Income 1 Income Trend is Decreasing | 1 | ||
| Approval/Underwriting Summary Not Provided | 1 | ||
| External Obsolescence Present | 1 | ||
| Total Credit Grade (B) Exceptions: | 28 | ||
| Compliance | A | No Compliance Findings | 2,082 |
| Higher-Priced Mortgage Loan Test | 509 | ||
| CA AB 260 Higher-Priced Mortgage Loan Test | 46 | ||
| NC Rate Spread Home Loan Test | 35 | ||
| MD COMAR Higher-Priced Mortgage Loan Test | 16 | ||
| MA 209 CMR 32.35 Higher-Priced Mortgage Loan Test | 9 | ||
| TRID: Missing Closing Disclosure | 9 | ||
| Right of Rescission is Missing | 8 | ||
| TILA Right of Rescission Test | 8 | ||
| Qualified Mortgage Safe Harbor Threshold | 5 | ||
| CT Nonprime Home Loan Test | 4 | ||
| OK HOEPA Higher-Priced Mortgage Loan Test | 3 | ||
| Regulation § 1026.43(c)(2)(v) failure - The consumer’s monthly payment for mortgage-related obligations not properly considered | 2 | ||
| Qualified Mortgage Lending Policy Points and Fees Test | 2 | ||
| Higher-Priced Mortgage Loan Evidence of Appraisal Delivery to the Borrower Not Provided (12 CFR 1026.35(c)(6)) | 2 | ||
| High-Cost Mortgage Pre-Loan Counseling Date Test | 1 | ||
| Mortgage not properly executed | 1 | ||
| Missing Form 4506T | 1 | ||
| IL XXX Threshold Loan Points and Fees Test | 1 | ||
| Closing Disclosure is Not Executed | 1 | ||
| The Final 1003 is Not Executed | 1 | ||
| High-Cost Mortgage Timing of Disclosure Test | 1 | ||
| High-Cost Mortgage Late Fee Test | 1 |
| Regulation § 1026.43(c)(2)(vi) failure - The consumer's current debt obligations, alimony, and child support or other debt obligations were not confirmed and included in the DTI or excluded per lender guidelines. | 1 | ||
| Non-Borrower Title Holder Did Not Receive Right of Rescission Form | 1 | ||
| Right of Rescission is Not Executed | 1 | ||
| NY Subprime Home Loan Test | 1 | ||
| Loan Origination Company NMLS Status is Not Active | 1 | ||
| TX Constitution A6 Required Fees Test | 1 | ||
| NJ HOSA 2004 High-Cost Home Loan Points and Fees Threshold Test | 1 | ||
| High-Cost Mortgage Points and Fees Threshold Test | 1 | ||
| NM HLPA 2009 High-Cost Home Loan Total Points and Fees Threshold Test | 1 | ||
| Total Compliance Grade (A) Exceptions: | 2,757 | ||
| B | TILA Right of Rescission Test | 3 | |
| Non-Borrower Title Holder Did Not Receive Right of Rescission Form | 1 | ||
| Total Compliance Grade (B) Exceptions: | 4 |
Event Grade Definitions
| Final Loan Grade | |
| A | Loan meets Credit, Compliance, and Valuation Guidelines |
| B | The loan substantially meets published Client/Seller guidelines and/or eligibility in the validation of income, assets, or credit, is in material compliance with all applicable laws and regulations, and the value and valuation methodology is supported and substantially meets published guidelines. |
| C | The loan does not meet the published guidelines and/or violates one material law or regulation, and/or the value and valuation methodology is not supported or did not meet published guidelines. |
| D | Loan is missing documentation to perform a sufficient review. |
| Credit Event Grades | |
| A | The loan meets the published guidelines without any exceptions. The employment, income, assets and occupancy are supported and justifiable. The borrower’s willingness and ability to repay the loan is documented and reasonable. |
| B | The loan substantially meets the published guidelines but reasonable compensating factors were considered and documented for exceeding published guidelines. The employment, income, assets and occupancy are supported and justifiable. The borrower’s willingness and ability to repay the loan is documented and reasonable. |
| C | The loan does not substantially meet the published guidelines. There are not sufficient compensating factors that justify exceeding the published guidelines. The employment, income, assets or occupancy are not supported and justifiable. The borrower’s willingness and ability to repay the loan were not documented or are unreasonable. |
| D | There was not sufficient documentation to perform a review or the credit file was not furnished. |
| Compliance Event Grades | |
| A | The loan is in compliance with all applicable laws and regulations. The legal documents accurately reflect the agreed upon loan terms and are executed by all applicable parties. |
| B | The loan is in material compliance with all applicable laws and regulations. The legal documents accurately reflect the agreed upon loan terms and are executed by all applicable parties. Client review required. |
| C | The loan violates one material law or regulation. The material disclosures are absent or the legal documents do not accurately reflect the agreed upon loan terms or all required applicants did not execute the documents. |
| D | There was not sufficient documentation to perform a review or the required legal documents were not furnished. |
| Valuation Event Grades | |
| A | The value is supported within 10% of the original appraisal by the AVM or there are other supporting documents in the originators loan file package (CDA, Field Review or Second Appraisal). The appraisal was performed on an “as-is” basis and the property is complete and habitable at origination. The appraiser was appropriately licensed and used GSE approved forms. |
| B | The value is not supported within 10% of the original appraisal by the AVM and there are no other valuation support documents in the loan file provided by the Seller. The valuation methodology substantially meets the published guidelines but reasonable compensating factors were considered and documented for exceeding guidelines. The appraisal was performed on an “as-is” basis and the property is complete and habitable. The appraiser was appropriately licensed and used GSE approved forms. |
| Valuation Event Grades | |
| C | The value is not supported within 10% of the original appraisal. The valuation methodology did not meet the published guidelines and there were not sufficient compensating factors for exceeding published guidelines. The property is in below “average” condition or the property is not complete or requires significant repairs. The appraisal was not performed on an “as is” basis. The appraiser was not appropriately licensed or did not use GSE approved forms. |
| D | The file was missing the appraisal or there was not sufficient valuation documentation to perform a review. |