EX-99.10 11 ex99-10.htm COVIUS RATING AGENCY EXCEPTIONS REPORT
 

Angel Oak Mortgage Trust 2024-4 ABS-15G

 

Exhibit 99.10

  

 

 

Rating Agency Exceptions Report: 3/25/2024
Loan Information  Exception Information Initial Overall Grades Final Overall Grades Event Level
Loan Number Loan Number 2 Property State Purpose Occupancy Property Type DTI DSCR FICO LTV Note Original Balance Exception ID Exception Type Exception Description Exception Note Exception General Comment Compensating Factors Exception Status DBRS Fitch Moody's S&P DBRS Fitch Moody's S&P Grade
2024040695 XXX             XXX             XXX            XXX             XXX             XXX               XXX             XXX                     XXX              XXX             XXX Appraisal The subject is marked as XXX  by the appraiser with a XXX  LTV.  Per Guidelines this is an invalid exception.
   Cleared Exception C C C C B B B B 1
2024040695 XXX             XXX             XXX            XXX             XXX             XXX               XXX             XXX                     XXX              XXX             XXX Credit - Inquiries Credit report reflects inquiries that are not addressed/explained. XXX  Document provided to clear condition.    Cleared Exception C C C C B B B B 1
2024040695 XXX             XXX             XXX            XXX             XXX             XXX               XXX             XXX                     XXX              XXX             XXX Credit - Eligiblity According to the underwriting guidelines, medical collections are not given weight to the assessment but will be conditioned for a letter of explanation. The credit report reflects several medical collection accounts, however the LOE was not in the file.  XXX  Document provided to clear condition.    Cleared Exception C C C C B B B B 1
2024040695 XXX             XXX             XXX            XXX             XXX             XXX               XXX             XXX                     XXX              XXX             XXX Appraisal An appraisal review product for the subject property is not included in the loan file.  XXX  ordered and received.    Cleared Exception C C C C B B B B 1
2024040695 XXX             XXX             XXX            XXX             XXX             XXX               XXX             XXX                     XXX              XXX             XXX XXX/Loan Approval A fraud report is missing from the loan file.  Data Verify ordered and received.    Cleared Exception C C C C B B B B 1
2024040695 XXX             XXX             XXX            XXX             XXX             XXX               XXX             XXX                     XXX              XXX             XXX XXX/Loan Approval According to the underwriting guidelines, loans with a loan amount between XXX  to XXX  will be approved by the CEO. The loan worksheet signed by the CEO is missing from the loan file.  XXX  Document provided to clear condition.    Cleared Exception C C C C B B B B 1
2024040695 XXX             XXX             XXX            XXX             XXX             XXX               XXX             XXX                     XXX              XXX             XXX Credit - Eligiblity The file included a tax lien of XXX  from the XXX, however documentation verifying the proof of payoff of the lien was missing from the loan file.  XXX  Document provided to clear condition.    Cleared Exception C C C C B B B B 1
2024040695 XXX             XXX             XXX            XXX             XXX             XXX               XXX             XXX                     XXX              XXX             XXX Employment-Self Employment Verification of current self-employment with XXX  is missing from the loan file.  Business card provided does not verify current self employment. CPA letter or business license would clear condition. DTI is XXX  without using the income.  
XXX  Income not used to qualify.		   Cleared Exception C C C C B B B B 1
2024040695 XXX             XXX             XXX            XXX             XXX             XXX               XXX             XXX                     XXX              XXX             XXX Employment According to the underwriting guidelines, a Verification of Employment must be completed XXX  days prior to closing. In this case, the VOE was completed after the loan closed.  Client confirmed Loan Funded on XXX  and accepts VOE was done that day.
DTI - Low DTI of XXX,  Months Of Reserves - XXX  Months of Reserves Client Accepted C C C C B B B B 2
2024040695 XXX             XXX             XXX            XXX             XXX             XXX               XXX             XXX                     XXX              XXX             XXX VOM Documentation verifying the borrowers most recent XXX  month housing history is missing from the loan file.  XXX  Document provided to clear condition.    Cleared Exception C C C C B B B B 1
2024040584            XXX             XXX             XXX            XXX             XXX             XXX             XXX             XXX             XXX                     XXX              XXX             XXX Debt Service Coverage Ratio Audit calculated Debt Service Coverage Ratio ("DSCR") of XXX  which does not meet guidelines (1.0).  The lender calculated a DSCR of XXX .  The difference is due to Audit used the fully indexed rate (XXX) for a P&I of XXX  since the guidelines  indicate the greater of the Note rate (XXX)  or the fully indexed rate is to be used to determine the qualifying PITIA.  The lender used the note to calculate the DSCR. XXX  XXX  accepted the DSCR as is with compensating factors.  Months Of Reserves - XXX  months of reserves.  Client Accepted C C C C B B B B 2
2024040584            XXX             XXX             XXX            XXX             XXX             XXX             XXX             XXX             XXX                     XXX              XXX             XXX Program Eligibilty According to the underwriting guidelines, assumable loans are ineligible transaction.  In the case, the closing disclosure shows the loan may be assumed. XXX  Post consummation CD provided to cure.    Cleared Exception C C C C B B B B 2
2024040584            XXX             XXX             XXX            XXX             XXX             XXX             XXX             XXX             XXX                     XXX              XXX             XXX Funds to Close Evidence the XXX  credit on the closing disclosure was the gift from the XXX on the gift letter was missing from the loan file. XXX  Document provided to cure.    Cleared Exception C C C C B B B B 1
2024040584            XXX             XXX             XXX            XXX             XXX             XXX             XXX             XXX             XXX                     XXX              XXX             XXX Hazard Insurance The Property Insurance document in the loan file is a binder and does not have a policy number. XXX  Document provided to cure.    Cleared Exception C C C C B B B B 1
2024040622            XXX             XXX             XXX            XXX             XXX             XXX               XXX             XXX                     XXX              XXX             XXX Closing Disclosure The CD with the Receipt date of XXX  is missing page 1 XXX  document provided to clear condition.   Cleared Exception C C C C A A A A 1
2024040622            XXX             XXX             XXX            XXX             XXX             XXX               XXX             XXX                     XXX              XXX             XXX Closing Disclosure The Appraisal fee increased from XXX  on LE XXX  to XXX  on LE XXX  without a XXX   XXX  document provided to clear condition.   Cleared Exception C C C C A A A A 1
2024040624            XXX             XXX             XXX            XXX             XXX             XXX               XXX             XXX                     XXX              XXX             XXX Asset Verification According to the underwriting guidelines, cash on hand is an ineligible source of funds. In this case, borrower recently made a large cash deposit. Client exception granted with compensating factors; Credit, reserves, LTV. DTI - DTI of XXX  is XXX  less than the maximum allowed DTI of 55%,  Credit Score - The borrowers Fico of XXX  is XXX  points greater than the minimum required Fico of 700,  LTV - LTV of XXX  is XXX  less than the maximum allowed LTV of 90%,  Disposable Income - Disposable Income XXX. , Months Of Reserves - XXX  months reserves. Client Accepted C C C C B B B B 2
2024040684            XXX             XXX             XXX            XXX             XXX             XXX               XXX             XXX                     XXX              XXX             XXX Appraisal URAR/Appraisal document is not included in the loan file. XXX  Unable to locate appraisal.
XXX  Document provided to clear condition. 		   Cleared Exception D D D D A A A A 1
2024040684            XXX             XXX             XXX            XXX             XXX             XXX               XXX             XXX                     XXX              XXX             XXX Credit Report The complete original credit report is not included in the loan file. XXX  document provided to clear condition.   Cleared Exception D D D D A A A A 1
2024040684            XXX             XXX             XXX            XXX             XXX             XXX               XXX             XXX                     XXX              XXX             XXX Initial 1003 The initial 1003 is not included in the loan file. XXX  document provided to clear condition.   Cleared Exception D D D D A A A A 1
2024040684            XXX             XXX             XXX            XXX             XXX             XXX               XXX             XXX                     XXX              XXX             XXX 1008 Form 1008 document is not included in the loan file. XXX  document provided to clear condition.   Cleared Exception D D D D A A A A 1
2024040684            XXX             XXX             XXX            XXX             XXX             XXX               XXX             XXX                     XXX              XXX             XXX Flood Certificate Flood Certificate is not included in the loan file. XXX  document provided to clear condition.   Cleared Exception D D D D A A A A 1
2024040684            XXX             XXX             XXX            XXX             XXX             XXX               XXX             XXX                     XXX              XXX             XXX Income Bank statements to verify borrower's income are not included in loan file. XXX  tape document type is listed as XXX  XXX, but we have only received XXX bank statements from XXX - XXX, which is only XXX  months.  If the loan is qualifying under a XXX a business narrative is also needed. If loan qualified using the XXX, proof the CPA current state license required. XXX  - Provide a copy of the CPA current state license.
XXX  Document provided to clear condition.		   Cleared Exception D D D D A A A A 1
2024040684            XXX             XXX             XXX            XXX             XXX             XXX               XXX             XXX                     XXX              XXX             XXX Title Commitment Title Commitment is not included in the loan file. XXX  document provided to clear condition.   Cleared Exception D D D D A A A A 1
2024040684            XXX             XXX             XXX            XXX             XXX             XXX               XXX             XXX                     XXX              XXX             XXX Asset Verification Loan Presentment Data denotes asset verification occurred; however, asset verification support is not in file. XXX  document provided to clear condition.   Cleared Exception D D D D A A A A 1
2024040684            XXX             XXX             XXX            XXX             XXX             XXX               XXX             XXX                     XXX              XXX             XXX Sales Contract The sales contract is not included in loan file. XXX  document provided to clear condition.   Cleared Exception D D D D A A A A 1
2024040684            XXX             XXX             XXX            XXX             XXX             XXX               XXX             XXX                     XXX              XXX             XXX Closing Disclosure The Written List of Service Providers document is missing from the loan file. The Homeownership Counseling Disclosure document is missing from the loan file. XXX  Document provided to clear condition.    Cleared Exception D D D D A A A A 1
2024040684            XXX             XXX             XXX            XXX             XXX             XXX               XXX             XXX                     XXX              XXX             XXX Other The Mortgage Broker fees increased from XXX  on LE XXX  to XXX  on LE XXX  without a XXX  and the Transfer Fees increased from XXX  on LE XXX  to XXX  on CD XXX  without a XXX XXX  Document provided to clear condition.    Cleared Exception D D D D A A A A 1
2024040685            XXX             XXX             XXX            XXX             XXX             XXX               XXX             XXX                     XXX              XXX             XXX Note The Note is not included in the loan file. XXX  - client provided document to clear.   Cleared Exception C C C C A A A A 1
2024040685            XXX             XXX             XXX            XXX             XXX             XXX               XXX             XXX                     XXX              XXX             XXX Deed of Trust / Mortgage The Deed of Trust/Mortgage was not provided in the loan file. XXX  - client provided document to clear.   Cleared Exception C C C C A A A A 1
2024040685            XXX             XXX             XXX            XXX             XXX             XXX               XXX             XXX                     XXX              XXX             XXX Closing Disclosure The Written List of Service Providers document is missing from the loan file. The Homeownership Counseling Disclosure document is missing from the loan file. The Initial CD is missing from the loan file. . XXX  - client provided document to clear.   Cleared Exception C C C C A A A A 1
2024040660            XXX             XXX             XXX            XXX             XXX             XXX             XXX             XXX             XXX                     XXX              XXX             XXX 1008 Form 1008 document is not included in the loan file for a manually underwritten loan. XXX  Document provided to clear condition.   Cleared Exception C C C C A A A A 1
2024040631            XXX             XXX             XXX            XXX             XXX             XXX               XXX             XXX                     XXX              XXX             XXX Closing Disclosure This loan failed the high cost loan points and Fees test due to the points and fees totaling greater than XXX  of the total loan amount. The total loan amount was calculated by taking the note amount minus the prepaid finance charges. XXX  Post consummation CD provided to clear condition.    Cleared Exception C C C C B B B B 2
2024040699            XXX             XXX             XXX            XXX             XXX             XXX             XXX             XXX             XXX                     XXX              XXX             XXX Debt Service Coverage Ratio According to the guidelines, the seller must provide evidence of the DSCR calculations and how they were obtained or the DSCR income calculation worksheet is required to be in the loan file. The worksheet is missing from the loan file. XXX  Document provided to clear condition.   Cleared Exception C C C C A A A A 1
2024040572            XXX             XXX             XXX            XXX             XXX             XXX               XXX             XXX                     XXX              XXX             XXX VOM There is a discrepancy with the borrowers' primary residence. A letter in the loan file, the initial 1003 and the final 1003 show the borrowers' primary residence is XXX. which they are renting; however, the VOR reflects the XXX address as XXX.  Provide confirmation of the borrowers' current primary residence XXX  Document provided to cure.   Cleared Exception C C C C B B B B 1
2024040572            XXX             XXX             XXX            XXX             XXX             XXX               XXX             XXX                     XXX              XXX             XXX Income - Self Employment The 1008 indicates P&L statement is being used for qualifying income. The Profit and Loss statement prepared and signed by the CPA/licensed and/or certified tax preparer covering a XXX  month period dated with the most recent month month dated within XXX days of closing (XXX through XXX) is missing from the loan file.  Audit was unable to calculate income.  Additional exceptions may apply upon review. XXX  The most recent month of the P&L provided is not dated within XXX  days of closing.
XXX  XXX  acknowledged and accepted; guidelines were updated to "Profit and loss covering the most recent previous XXX  months, valid if the most recent month is dated within XXX  days of close"		 Credit Score - XXX  qualifying score is XXX  points > requirement. , Reserves - Borrower has XXX  months Reserves.  Client Accepted C C C C B B B B 2
2024040572            XXX             XXX             XXX            XXX             XXX             XXX               XXX             XXX                     XXX              XXX             XXX Sales / Construction Contract The addendum to the contract reflecting the final sale price of XXX  is missing from the loan file. XXX  Document provided to cure.   Cleared Exception C C C C B B B B 1
2024040572            XXX             XXX             XXX            XXX             XXX             XXX               XXX             XXX                     XXX              XXX             XXX Total Debt Ratio - Income The maximum allowed DTI for the loan is XXX. In this case, the loan was approved with a DTI of XXX.  XXX  CA purchase. XXX  of the sales price was used to calculate taxes. Provide the tax cert for the property.
XXX  An exception was approved allowing the DTI. 		 Credit Score - XXX  qualifying score is XXX  points > requirement. , Reserves - Borrower has XXX  months Reserves.  Client Accepted C C C C B B B B 2
2024040581            XXX             XXX             XXX            XXX             XXX             XXX             XXX             XXX             XXX                     XXX              XXX             XXX 1008 Form 1008 document is not included in the loan file for a manually underwritten loan. XXX  waiving as loan is DSCR.  Prior Mortgage History - Borrower has a lifetime XXX  mortgage payment history.  , Credit History - Overall credit history is positive with no historical delinquencies.   Client Accepted C C C C B B B B 2
2024040581            XXX             XXX             XXX            XXX             XXX             XXX             XXX             XXX             XXX                     XXX              XXX             XXX XXX XXX  project eligibility is not documented in the file verifying whether the XXX  is warrantable or non-warrantable.  XXX  No document was uploaded.
XXX  Document provided to cure. Non-Warrantable		   Cleared Exception C C C C B B B B 1
2024040581            XXX             XXX             XXX            XXX             XXX             XXX             XXX             XXX             XXX                     XXX              XXX             XXX Debt Service Coverage Ratio According to the underwriting guidelines, the Seller must supply evidence of the DSCR calculation amount, i.e., the amount to be listed on the 1008, Seller's DSCR worksheet or XXX DSCR Income Calculation Worksheet. In this case, the required document was missing from the loan file. XXX  Document provided in lieu of 1008.   Cleared Exception C C C C B B B B 1
2024040581            XXX             XXX             XXX            XXX             XXX             XXX             XXX             XXX             XXX                     XXX              XXX             XXX Borrower ID The subject transaction closed in the name of the borrower's business.  Evidence of the XXX number was not made part of the loan file.   Per XXX  "invalid; not required when a XXX, borrower uses XXX"   Cleared Exception C C C C B B B B 1
2024040581            XXX             XXX             XXX            XXX             XXX             XXX             XXX             XXX             XXX                     XXX              XXX             XXX XXX Evidence of the XXX date is not in the loan file. Rate lock provided by XXX.    Cleared Exception C C C C B B B B 1
2024040581            XXX             XXX             XXX            XXX             XXX             XXX             XXX             XXX             XXX                     XXX              XXX             XXX XXX The subject property is a XXX,  and the XXX  questionnaire is missing from the loan file.   XXX  questionnaire provided   Cleared Exception C C C C B B B B 1
2024040581            XXX             XXX             XXX            XXX             XXX             XXX             XXX             XXX             XXX                     XXX              XXX             XXX Credit According to the underwriting guidelines all closing documentation must conform to and be FNMA approved. In this case the closing documents are not a FNMA document and an approval is missing from the loan file. XXX  Per XXX,  the documents are acceptable as long as no daily simple interest or negative am Prior Mortgage History - Borrower has a lifetime XXX  mortgage payment history.  , Credit History - Overall credit history is positive with no historical delinquencies.   Client Accepted C C C C B B B B 2
2024040581            XXX             XXX             XXX            XXX             XXX             XXX             XXX             XXX             XXX                     XXX              XXX             XXX Debt Service Coverage Ratio According to the underwriting guidelines, the minimum required DSCR for the program is XXX  In this case, the loan was approved with a DSCR of XXX  which does not meet the guidelines.  XXX Investor accepts and grants an exception to allow DSCR below XXX  based on the following comp factors Prior Mortgage History - Borrower has a lifetime XXX  mortgage payment history. , Credit History - Overall credit history is positive with no historical delinquencies.] Prior Mortgage History - Borrower has a lifetime XXX  mortgage payment history.  , Credit History - Overall credit history is positive with no historical delinquencies.   Client Accepted C C C C B B B B 2
2024040582            XXX             XXX             XXX            XXX             XXX             XXX             XXX             XXX             XXX                     XXX              XXX             XXX 1008 Form 1008 and/or Approval document is missing from the loan file.
XXX  Document provided in XXX of 1008   Cleared Exception D D D D B B B B 1
2024040582            XXX             XXX             XXX            XXX             XXX             XXX             XXX             XXX             XXX                     XXX              XXX             XXX Final 1003 The final 1003 is missing from the loan file.
 DSCR loan. 1003 not required.    Cleared Exception D D D D B B B B 1
2024040582            XXX             XXX             XXX            XXX             XXX             XXX             XXX             XXX             XXX                     XXX              XXX             XXX Credit The Payoff statement for the XXX  paid at closing is missing from the loan file.  XXX  Document provided to cure.    Cleared Exception D D D D B B B B 1
2024040582            XXX             XXX             XXX            XXX             XXX             XXX             XXX             XXX             XXX                     XXX              XXX             XXX Credit - Eligiblity The DSCR calculations is missing from the loan file.
XXX  Document provided to cure.    Cleared Exception D D D D B B B B 1
2024040582            XXX             XXX             XXX            XXX             XXX             XXX             XXX             XXX             XXX                     XXX              XXX             XXX VOM According to the underwriting guidelines, a Verification of Mortgage (VOM) is required for the subject property. In this case the documentation is missing from the loan file.
XXX  XXX  acknowledged and accepted, payoff shows no past dues. Credit Score - XXX  qualifying score is XXX  points > requirement. , LTV - LTV is XXX
 Client Accepted D D D D B B B B 2
2024040582            XXX             XXX             XXX            XXX             XXX             XXX             XXX             XXX             XXX                     XXX              XXX             XXX Title The Tax Certificate that includes the building is missing from the loan file.  The tax certificate in the loan file appears to be for XXX  only with annual tax of XXX.   Audit was unable to calculate the DSCR without the updated tax certificate.  Additional exceptions may apply upon review. The tax cert reflects a taxable value of XXX  which if multiplied by the tax rate of XXX  would give an annual tax rate of XXX    Cleared Exception D D D D B B B B 1
2024040582            XXX             XXX             XXX            XXX             XXX             XXX             XXX             XXX             XXX                     XXX              XXX             XXX Credit - Inquiries A exception was approved and placed in the loan file by XXX for a XXX, but the exception was not approved by XXX.  This is a XXX exception and not an XXX  guide exception
 Credit Score - XXX  qualifying score is XXX  points > requirement. , LTV - LTV is XXX
 Client Accepted D D D D B B B B 2
2024040582            XXX             XXX             XXX            XXX             XXX             XXX             XXX             XXX             XXX                     XXX              XXX             XXX Appraisal The Certificate of Occupancy from the XXX  permit and inspection department was missing from the loan file.   The subject is new construction. Not required.    Cleared Exception D D D D B B B B 1
             XXX             XXX             XXX            XXX             XXX             XXX                                        
2024040619            XXX             XXX             XXX            XXX             XXX             XXX               XXX             XXX                     XXX                       A A A A  
2024040623            XXX             XXX             XXX            XXX             XXX             XXX             XXX             XXX             XXX                     XXX                       A A A A  
2024040620            XXX             XXX             XXX            XXX             XXX             XXX               XXX             XXX                     XXX                       A A A A  
2024040621            XXX             XXX             XXX            XXX             XXX             XXX               XXX             XXX                     XXX                       A A A A  
2024040625            XXX             XXX             XXX            XXX             XXX             XXX             XXX             XXX             XXX                     XXX                       A A A A  
2024040626            XXX             XXX             XXX            XXX             XXX             XXX               XXX             XXX                     XXX                       A A A A  
2024040627            XXX             XXX             XXX            XXX             XXX             XXX             XXX             XXX             XXX                     XXX                       A A A A  
2024040628            XXX             XXX             XXX            XXX             XXX             XXX             XXX             XXX             XXX                     XXX                       A A A A  
2024040629            XXX             XXX             XXX            XXX             XXX             XXX             XXX             XXX             XXX                     XXX                       A A A A  
2024040634            XXX             XXX             XXX            XXX             XXX             XXX             XXX             XXX             XXX                     XXX                       A A A A  
2024040632            XXX             XXX             XXX            XXX             XXX             XXX             XXX             XXX             XXX                     XXX                       A A A A  
2024040636            XXX             XXX             XXX            XXX             XXX             XXX               XXX             XXX                     XXX                       A A A A  
2024040633            XXX             XXX             XXX            XXX             XXX             XXX             XXX             XXX             XXX                     XXX                       A A A A  
2024040630            XXX             XXX             XXX            XXX             XXX             XXX               XXX             XXX                     XXX                       A A A A  
2024040698            XXX             XXX             XXX            XXX             XXX             XXX             XXX             XXX             XXX                     XXX                       A A A A  
2024040635            XXX             XXX             XXX            XXX             XXX             XXX             XXX             XXX             XXX                     XXX                       A A A A  
2024040604            XXX             XXX             XXX            XXX             XXX             XXX             XXX             XXX             XXX                     XXX                       A A A A  
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