New AMC Available – Accelerated Appraisal Group

December 5, 2017rashtonBulletins, Bulletins

Carrington Mortgage Services, LLC (CMS) is pleased to announce the addition of a new appraisal vendor, Accelerated Appraisal Group, effective November 29, 2017. Accelerated Appraisal Group is an AMC that specializes in the state of California and covers every county.

As of the effective date, Accelerated Appraisal Group will be approved for the Wholesale Channel and CMS approved Brokers must setup an account with Accelerated Appraisal to place appraisal orders.

Accelerated Appraisal Group Contact Information
Website: https://www.aag-amc.com/
Address: 2110 S. Coast Hwy, Suite O Oceanside, CA 92054
Phone: 760-712-4229
Email: orders@acceleratedappraisalgroup.com

Wholesale Underwriting Fees Update

Effective December 4, 2017, Carrington Mortgage Services will no longer accept broker-disclosed submissions that do not include the $399 underwriting fee ($99 in North Carolina) on their initial Loan Estimate. New Jersey loans are exempted, as the lender is not permitted to charge an Underwriting Fee.

If the loan was pre-locked with the Underwriting Fee Buyout option selected, Carrington will accept the loan and disclose with no underwriting fee on the lender’s Loan Estimate.

When Loan Setup receives a broker-disclosed submission without the disclosed Underwriting Fee and the loan has not been locked, Setup will give the broker/AE an opportunity to pre-lock the loan with a Fee Buyout prior to rejecting the submission.

 

Wholesale Fee Schedule

State Underwriting Fee
NJ No Fee
NC $99
All Others $399

Thanksgiving Holiday Lock Desk Hours

Overview

The Lock Desk at Carrington Mortgage Services, LLC (CMS) will be closed Thursday, November 23, 2017 and Friday, November 24, 2017 in observance of Thanksgiving, which is a federal holiday. Due to the holiday, the Lock Desk will be closing early on Wednesday, November 22, 2017 at 11:00 AM PST (early market closure of 2:00 PM EST). Normal Lock Desk hours will resume on Monday, November 27, 2017.

Locks that expire on the holiday will automatically roll to the next business day.  In addition, there are some important disclosure considerations associated with the holiday:

  • Thursday, November 23, 2017 cannot be included in the rescission period for refinance transactions.
  • Thursday, November 23, 2017 cannot be included in the seven (7) business day waiting period between the date the initial Loan Estimate (LE) was provided to the borrower and the consummation of the loan
  • When re-disclosure of the LE is required, Thursday, November 23, 2017 cannot be included in the four (4) business day waiting period between the date the revised LE was provided to the borrower and the consummation of the loan.
  • When re-disclosure of the CD is required, Thursday, November 23, 2017 cannot be included in the three (3) business day waiting period between the date the revised CD was provided to the borrower and the consummation of the loan.

Issues related to locks should be sent via email to lockdesk@carringtonms.com.

Veteran’s Day Holiday Lock Desk Hours

Great News! The Lock Desk at Carrington Mortgage Services, LLC (CMS) will be open Friday, November 10, 2017 for normal Lock Desk hours.

Because Veteran’s Day, November 11, 2017, which is a Federal Holiday, falls on a weekend this year there are some important disclosure considerations associated with the holiday:

  • Friday, November 10, 2017 is a business day for rescission/TRID purposes.
  • Saturday, November 11, 2017 cannot be included in the rescission period for refinance transactions.
  • Saturday, November 11, 2017 cannot be included in the seven (7) business day waiting period between the date the initial Loan Estimate (LE) was provided to the borrower and the consummation of the loan.
  • When re-disclosure of the LE is required, Saturday, November 11, 2017 cannot be included in the four (4) business day waiting period between the date the revised LE was provided to the borrower and the consummation of the loan.
  • When re-disclosure of the CD is required, Saturday, November 11, 2017 cannot be included in the three (3) business day waiting period between the date the revised CD was provided to the borrower and the consummation of the loan.

 

Issues related to locks should be sent via email to lockdesk@carringtonms.com.

Policy Announcement: Notification for HMDA 2018

November 3, 2017rashtonBulletins

Effective January 1, 2018, the Home Mortgage Disclosure Act (HMDA) requirements for collecting information regarding the ethnicity and race of applicants will be expanded.  To collect the applicant information, a new loan document, the Demographic Information (DI) Addendum to the 1003 has been created and will be a required document beginning January 1, 2018.

Lenders may begin collecting the information without violating HMDA, prior to the January 2018 effective date. The Carrington Mortgage Services, LLC (CMS) wholesale website, BrokerIQ, is set up to accept 2018 DI information at this time.

If the Broker provides the updated 1003 with DI Addendum, CMS is not updating the Lender 1003 to match.

Effective January 1, 2018, all Lender Disclosed packages and Broker Disclosed Accepted Submissions must have the updated 1003 with DI Addendum. If Brokers submit with a prior version, Loan Setup will accept the submission but require a corrected signed Initial 1003, prior to Approval.

FHA 203(H) 100% FINANCING FOR PURCHASES & REFINANCES to borrowers in Presidentially-designated major disaster areas.

Carrington may assist borrowers in Presidentially-designated disaster areas through the government’s FHA 203h loan program.

HIGHLIGHTS OF THE PROGRAM

• Minimum 500 FICO
• 100% financing on purchases for homeowners or renters whose homes were destroyed
• Refinance available for those whose homes are not destroyed but would like to refurbish (Restrictions apply)
• Previous residence must be documented and verified to be in a Presidentially-designated disaster area (PDMDA) and destroyed or damaged to extend that reconstruction or replacement is necessary
• Borrower may be a prior homeowner or renter
• Property may be rebuilt or purchased (For purchases, the property isn’t required to be located in the same area as the previous residence.)
• Mortgage rating required for current 12-month history prior to the declared disaster
• Refinances for borrowers using the 203h with the 203k rehabilitation require the residence to have been completed and ready for occupancy

ELIGIBILITY REQUIREMENTS
• FHA Mortgage Insurance is required. Ask your Loan Officer for details.
• FEMA PDMDA verification required, in addition to documentation from a 3rd party that the home is not habitable as a result of the disaster
• New case number MUST be assigned within one year of the date the PDMDA is declared
• Property must be owner-occupied
• 1 unit SFR residences, manufactured homes (minimum double wide), PUDs and FHA approved condos
• No minimum required investment (MRI). Max LTV ratio limit is 100% of adjusted value. If a 203(k) is used in conjunction with a 203(h), the 203(k) LTV applies.
• 203(h) must be processed and underwritten in accordance with 203(b) requirements, unless specific guidance is detailed

Contact us to learn more about this program.

 

ELIGIBILITY REQUIREMENTS
• FHA Mortgage Insurance is required. Ask your Loan Officer for details.
• FEMA PDMDA verification required, in addition to documentation from a 3rd party that the home is not habitable as a result of the disaster
• New case number MUST be assigned within one year of the date the PDMDA is declared
• Property must be owner-occupied
• 1 unit SFR residences, manufactured homes (minimum double wide), PUDs and FHA approved condos
• No minimum required investment (MRI). Max LTV ratio limit is 100% of adjusted value. If a 203(k) is used in conjunction with a 203(h), the 203(k) LTV applies.
• 203(h) must be processed and underwritten in accordance with 203(b) requirements, unless specific guidance is detailed

FEMA Disaster Declaration for California

October 13, 2017rashtonBulletins, Bulletins

Overview

Due to recent wildfires in California, FEMA has declared the following county a disaster.

Please note:

  • If an appraisal was completed prior to the incident date of the disaster, a re-inspection will be required.
  • If an appraisal was not required due to a property inspection waiver or product type, an inspection report is still required.

Regardless of whether or not the transaction requires an original appraisal, an inspection will be required up to and including 90 days from the date the natural disaster occurred, prior to the Note date.

MLD – Lock Extension Changes

October 5, 2017rashtonBulletins, Bulletins

Overview

Carrington Mortgage Services, LLC (CMS) actively manages rate locks to offer consumers competitive pricing and minimize the Company’s interest rate exposure for loans.  To enhance CMS’ competitiveness in the marketplace, effective October 10, 2017, the costs for extending rate locks will be reduced as shown below:

*The no cost 3-day extension is available if the loan documents are signed and returned and all conditions have been provided. The free 3-day extension is available only once per loan.

 

 

MLD – Wholesale Underwriting Fee Increase

October 5, 2017rashtonBulletins, Bulletins

Overview

Effective October 5, 2017, Carrington Mortgage Services, LLC (CMS) enhanced BrokerIQ Pricing engine with an option to include the CMS Lender Fee into the pricing.

In some cases, the CMS Lender Fee plus the Broker’s chosen compensation structure causes the loan to exceed the ATR/QM fee threshold.  Brokers can now select the Buyout Lender Fee option, if applicable, to include the CMS Lender Fee into the pricing.  The Buyout Lender Fee option converts the fee into a price adjustment and may reduce the total fees amount below the ATR/QM fee threshold.

To buy out the Lender Fee, the Broker should select YES from the Buyout Lender Fee dropdown in the BrokerIQ Pricing Engine.

In cases where the Buyout Lender Fee wasn’t selected at lock, the Broker or CMS Account Executive/Account Manager must send a request via email to the Lock Desk at lockdesk@carringtonms.com to buy out the Lender Fee.

Please note: Once the Lender Fee is bought out, it cannot be added back since the re-disclosed Loan Estimate (LE) has zero tolerance for Lender Fee increases.

FICO Reduced to 500 on FHA and VA Loans

Help meet the individual needs of your borrowers and grow your business with our new reduction in FICO to 500 for FHA & VA government purchase programs.***

FHA Purchase

  • 500 FICO to 90% LTV on purchase loans
  • Debt to income ratio determined by AUS with FICO>640 (1-2 unit)
  • First-time home buyers – no overlays with DU approved eligible with FICO>640

VA Purchase

  • 500 FICO – 2 valid credit scores required
  • Up to 100% LTV

In addition to our recent reduction in FICO score (down to 500) on FHA and VA Purchase Programs, below are details on our new minimum FICO scores for FHA & VA Refinance Loans.

FHA Streamline & VA IRRRL’s

  • No FICO Score requirements

Rate & Term Refinance

(FHA* Credit Qualifying)

  • 500-579 FICO to 90% LTV
  • 580 FICO or greater to 97.75% LTV

Cash-Out Refinance

  • FHA*
    • Minimum 500 FICO
    • 85% max LTV for all FICOs
  • VA*
    • Minimum 500 FICO to 100% LTV**

***Owner Occupied Only. 1-4 Units. PUD’s, FHA approved condominium projects, land contracts, manufactured homes that follow HUD requirements.
*FHA & VA: Owner-occupied. 1-4 Units. Subject to Specific County Mortgage lending limits. Subject to Debt-to-Income and Underwriting requirements.
**Subject to compensating factors and Debt-to-Income restrictions. A Veteran must have combined entitlement & equity totaling 25% of appraised value.

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