Feb. 16: Playing catch up on lender & investor updates on this holiday Monday

Rob Chrisman

Rob Chrisman began his career in mortgage banking – primarily capital markets – 31 years ago in 1985 with First California Mortgage, assisting in Secondary Marketing until 1988, when he joined Tuttle & Co., a leading mortgage pipeline risk management firm. He was an account manager and partner at Tuttle & Co. until 1996, when he moved to Scotland with his family for 9 months. Read more...

There are several reports of lenders giving newscaster Brian Williams a VA IRRL.

 

Humor aside, there are plenty of reports of many lenders being fully or partially staffed on this holiday, so I figured I’d play some catch up and send out some relatively recent lender and investor updates. There has been a lot going on with many companies, usually as a reflection of agency or larger investor changes. As always, one should read the complete bulletin or contact the lender for full details, but these should give us a sense of lending trends going on out there. There will be more throughout this week, so in totally random order…

 

Wells Fargo Funding has increased the maximum Loan amount/combined loan amount for one-unit primary residence, purchase, and rate/term Non-Conforming Loans to $3,000,000 – up to 70% LTV/CLTV for certain transactions.

 

Wells will no longer require 1040 IRS Tax Return Transcripts for borrowers who only use W-2 income to qualify for a Loan approved by an Automated Underwriting System (AUS). Non-Conforming Loans and manually underwritten Loans will continue to follow existing 1040 IRS Tax Return Transcript requirements effective with loans purchased on or after January 26, 2015.

 

Flagstar has rolled out a Freddie Mac Super Conforming ARM. To see the full product description Click HERE. Some of the highlights include: 5/1 and 7/1 ARMs, 7/1 qualifies at note rate (5/1 qualifies at note rate + 2%) , LTV up to 90% on Owner Occupied with 660 Fico (purchase and R&T), LTV up to 80% on Non Owner Occupied, 1 unit purchase with 680 Fico.

Flagstar has increased the max pricing cap on its Government Fixed rate products to 106 and Government ARMs to 105. Also, Its Fannie Mae fixed rate product is available with 95.01% to 97% LTV.

 

Angel Oak Home Loans introduced its Investor Cash Flow Program. Qualification is based on property cash flow, No personal income used to qualify, Credit scores starting at 660, Up to 70% LTV, Loans up to $1,000,000, 1-4 Units and Condominiums (warrantable), Up to 5 properties with Angel Oak and No limit on total number of properties.

 

LDWholesale is rolling out Phase 1 of Texas that will include all programs for Purchase and Refinances, except cash out A6. LDWholesale will require an Attorney fee of $125 that must be included in block 1 of the GFE. Additionally it will require a Survey within 10 years or a Survey Affidavit (if title company accepts it) for every loan otherwise the Survey Fee will need to be disclosed up front in block 6 of the GFE. Be sure to use the most recent Submission form that will inform Loan Setup what to verify in regards to the Survey.  Note: Phase 2 of Texas will include A6 products, and will be included in an upcoming announcement.

 

Mountain West Financial revised its policy on Reconsideration of Value in the event that there is a disagreement with the Estimated Final Value of the property given by the Appraiser, or in the event of major discrepancies and/or errors that directly affect the final value.  Please be advised that Brokers are not to contact the Appraiser directly due to Appraiser Independence Requirements.  All communications with the Appraiser must go through Mortgage Works AMC. Only ONE Reconsideration Request will be accepted per Appraisal Report. Please ensure that all Information is included in the Reconsideration Request when submitted. Repeated attempts at Value Reconsiderations may be considered a violation of Appraiser Independence Requirements. For complete details, view its bulletin 15W-019.

 

M&T Bank posted information, effective 1/28/15, regarding an additional update to the Gift Funds section of the Agency Under-wring Eligibility Standards (UES).  The new guide will be posted to MEME. The new USDA Handbook states that to validate a credit score, the borrower(s) must have a minimum of 3 trade lines that have existed for 12 months.  If the borrower does not have this, the credit score is not considered a valid score. The product pages will be updated with this information.  As a reminder, M&T does not permit Non‐traditional credit on USDA loans, so borrowers without a valid credit score are not eligible.

 

Nationstar Mortgage announced the availability of its Correspondent Seller Guide Update 2015-01. Click the link to download.

 

And then Nationstar Mortgage updated its seller guide again, this time for February. To download the complete update, please click here.

 

United Wholesale Mortgage officially launched a completely new loan origination system (LOS) that is loaded with features and tools for brokers and correspondents. The proprietary technology EASE, replaces UWM’s previous LOS and offers many benefits for its broker and correspondent partners. EASE allows brokers to effortlessly use drag and drop technology throughout the site. This feature is used to deliver FNMA 3.2 files and other various documents, which auto populate into EASE’s proprietary product and pricing engine, Easy Qualifier (EQ) qualifies and provides live pricing on multiple programs while simultaneously providing UWM’s brokers and correspondents with the ability to instantly give their borrowers the best possible options. With the click of a button, the broker can select the product, MI and calculate the interest rate. They are empowered to pull DU® or LP® which instantly provides an automated underwriting decision. For more information regarding new and improved EASE functions visit UWM’s website.

 

Mountain West Financial said that regarding FHA Streamline, effective immediately, the minimum FICO score requirements for non MWF-to-MWF transactions have been reduced to 620. Manufactured Housing FHA Streamlines are now available. To view the impact to FHA Streamline refinance transactions, click here. To view its Jumbo 2 update, click the link.

 

Citigroup, known for alternating between being in the market and out of the market for mortgages, is now in the “in” phase with news that it is expanding its digital presence online through a new marketing alliance with Zillow. Citigroup apparently has agreed to increase its presence on Zillow, Zillow Mortgages and StreetEasy, New York City’s real estate app and website owned by Zillow. Citi has increased its advertising program for mortgages on StreetEasy, including multiple ad placements, sponsorship of content and visibility for approved pre-certified buildings. Additionally, the Citi brand will be amplified, in terms of advertising, on Zillow’s desktop and mobile experiences.

 

CITI Correspondent is focusing on making the transition to the TILA/Integrated disclosure Rule as streamlined as possible.  With that in mind, a series of planned announcements/bulletins on how the Rule will impact your relationship with Citi are underway.  The information will be shared on a regular basis, offering suggestions for best practices and other pertinent information and, as they become final, and the requirements to help you align your Rule compliance with your Citi Correspondent Lending experience. Citi has removed its VA Loans Verification of Employment/Business. Verification employment (for w2 age-earners) and existence of business (for self-employed) continues to be required prior to closing, however Correspondents may now follow HUD guidelines for wage earner and self-employed borrowers; the 30-day timeline requirement no longer applies.

 

The Colorado Tangible Net Benefit form is now required for all loan applications dated January 2 or later. See attached for the new form. Changes do not require initials next to the transaction details and certain language has also been removed for simplification. Download the Colorado Tangible Net Benefit Disclosure  as provided by COAMP, Colorado Association of Mortgage Professionals.

 

Ellie Mae Encompass mortgage management solution has been selected by First Federal Lakewood, the largest independent mutual bank headquartered in Ohio. The ability to automate the entire mortgage process and provide paperless originations will continue to benefit everyone involved with speed, accuracy and reduced fraud risks. “Ellie Mae’s Encompass was a natural fit for us because it is trusted by many other banks, and there is a certain comfort to having a system that is backed by the collective experience of institutions like ours,” Stropkay said. “It also met our goals of keeping our customers engaged in the mortgage process from start to finish and helping us move to a paperless environment.”

 

Flagstar’s rule effective for FHA loans registered on or after January 23, 2015, the minimum credit score for many FHA loans is reduced, and 3 to 4-unit properties will be eligible cash-out refinance transactions. New credit score requirements and corresponding price adjustments are posted. Additionally, Flagstar Bank is changing the method by which it determines the initial interest rate change date for FHA and VA adjustable rate mortgage (ARM) loans. This change will be effective for loans closed on or after February 2, 2015.

 

First Community Mortgage (FCMKC) wholesale’s product and pricing changes and guideline changes bulletin is available for viewing. In addition, to view the bulletin regarding RD eligible area change, click here.

 

South Pacific Financial Corp. has updated its FHA Credit Section to include No Minimum FICO score or other overlays with valid AUS Approval (Total Score Card through DU).

 

South Pacific Financial North Pacific FinancialSPFC/NPFC announced a credit enhancement to its FHA guidelines. The overlay for additional reserves and borrower own funds for credit scores below 619 with AUS approve/eligible loans have been removed. This change was effective on all loans underwritten on or after January 12. Some of the guideline enhancements include: No Minimum FICO score or other overlays with valid AUS Approval (Total Score Card through DU), Borrowers with no FICO score must follow FHA Manual Underwriting Guidelines Non–Traditional Credit (DTI 31/43) with No additional Comp Factors Required. See Non-Traditional Credit section for documentation requirements.

 

South Pacific Financial Corporation (SPFC) has announced a credit enhancement to its Federal Housing Administration (FHA) guidelines. Effective January 20, 2015, there will be no minimum FICO score necessary with loans that meet FHA system approval. “This program brings a great deal of relief for the most underserved of all borrowers — those currently with FICO scores below 620,” said SPFC CEO John Johnston. “We’re excited to launch this new program knowing most lenders want to see a credit score of 620 or higher on their FHA loans. Not so at SPFC.”

 

Need the ideal program for high net worth borrowers with alternative qualifying based on verified liquid assets? Review Impac Mortgage’s AltQm Asset Qualifier. Also available and ideal for self-employed borrowers, alternative bank statement for qualifying is available. Click the link AltQM Income.  Additionally, Ask about pricing improvements on its AltQM products.

 

LDWholesale has posted its most recent announcement 15-01 . Important changes include Conforming Fixed Rate Program Update, Loan Limits, and Dedicated Portal Support Line at 844-400-6953 Press #2.

 

Plaza Home Mortgage is reminding Lenders of two important topics. HOEPA Points and Fees Thresholds from the Consumer Financial Protection Bureau (CFPB) is required to calculate annually the dollar amount threshold used in connection with calculating whether a transaction is a high cost mortgage. The CFPB issued a final rule, effective January 1, 2015: the dollar amount of the HOEPA fee-based trigger will increase to $1,020. Additionally, the total loan amount threshold used to determine whether a loan is subject to the “total points and fees” provisions of HOEPA, or Section 32, is $20,391. The fee-based trigger is used to determine whether the total points and fees payable by the consumer at or before loan closing subjects that loan to Section 32. Section 32 applies, in part, to certain loans if the total points and fees payable by the consumer at or before loan closing exceed the greater of eight percent (8%) of the total loan amount or a dollar amount threshold. Secondly, regarding Qualified Mortgage Points and Fees Thresholds, the final rule updates the dollar amount thresholds for determining whether a loan is a qualified mortgage under the “points and fees” provision specified in Regulation Z.

 

Titan Capital Solutions has expanded its guidelines to include lowering the minimum required credit score for purchase money or rate/term refinance loans on a primary residence with loan amounts up to $1,000,000 down to 680 FICO. Effective for all loans locked on or after January 28th, 2015.

 

 

An Irish woman of advanced age visited her physician to ask his advice on reviving her husband’s libido.

“What about trying Viagra?” asked the doctor.

“Not a chance,” she said. “He won’t even take an aspirin.”

“Not a problem,” replied the doctor. “Give him an ‘Irish Viagra’.”

“What is Irish Viagra?” she asked.

“It’s when you drop the Viagra tablet into his coffee. He won’t even taste it. Give it a try and call me in a week to let me know how things went.”

It was a week later when she called the doctor, who directly inquired as to her progress.

The poor dear exclaimed, “Oh, faith, bejaysus and begorrah! T’was horrid! Just terrible, doctor!”

“Really? What happened?” asked the doctor.

“Well, I did as you advised and slipped it in his coffee and the effect was almost immediate. He jumped straight up, with a smile on his face, a twinkle in his eye! With one swoop of his arms, he sent me cups and saucers flying, ripped me clothes to tatters and took me then and there passionately on the tabletop! T’was a nightmare, I tell you, an absolute nightmare!”

“Why so terrible?” asked the doctor, “Do you mean the sex your husband provided wasn’t good?”

“It was the best sex I’ve had in 25 years! But sure as I’m sittin’ here, I’ll never be able to show me face in Starbucks again!”

 

 

Rob

 

(Copyright 2015 Chrisman LLC. All rights reserved. Occasional paid job listings do appear. This report or any portion hereof may not be reprinted, sold or redistributed without the written consent of Rob Chrisman.)