FEMA Disaster Declaration for California

October 13, 2017rashtonBulletins, Bulletins


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


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


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.

Soft Pull Credit Reports Discontinued for Government Loans

Carrington Mortgage Services, LLC (CMS) is pleased to announce that pre-closing soft pull credit reports are no longer required for Government Loans (FHA, VA and USDA). This change is effective immediately and is being implemented as part of the initiative to reduce overlays and make closing loans with CMS even easier.

Please note: Pre-closing soft pull credit reports are still required for Conventional Loans (FNMA and FHLMC).

Labor Day Lock Desk Hours

The Lock Desk will be closed on Monday, September 4, 2017, for Labor Day, which is a Federal Holiday. Normal lock hours will resume on Tuesday, September 5, 2017.

Additionally, the Lock Desk will close early on Friday, September 1, 2017, at 10:00 A.M. PST due to the early close of the financial markets.

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:

  • Monday, September 4, 2017, cannot be included in the rescission period for refinance transactions.
  • Monday, September 4, 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, Monday, September 4, 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, Monday, September 4, 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.

FICO Reduced to 500 on FHA/VA Loans and New Pricing Improvement

Newly Extended through October 31st!

Give your business a BIG boost with our minimum credit score reduction to 500 on FHA/VA loans and our improvement on pricing that starts today!

  • Minimum 500 FICO on FHA and VA loans
  • 25 bps Special on FHA and VA High Balance < 640
  • Significant reductions in LLPAs on FHA and VA loan sizes < $150K
  • VA loans:
    • Full Doc reduced by up to 45 bps
    • VA IRRRLs reduced by up to 105 bps

Don’t miss out on this opportunity from Carrington before its gone!

Talk to one of our Account Executives today for the details. This is a limited time offer and will be subject to change at any time.

Become an Approved Broker


Policy Announcement: Itemized Written List of Providers Requirement Suspended

August 22, 2017rashtonBulletins, Bulletins


Effective August 15, 2015, the Carrington Mortgage Services, LLC (CMS) Wholesale Loan Setup requirement to obtain a Written List of Providers (Settlement Service Provider List) with Itemized Fees matching the amounts disclosed on the Broker’s Loan Estimate was temporarily suspended.

The temporary suspension means the Written List of Providers will NOT be required to have Itemized Fees matching the Loan Estimate on Broker disclosed submissions. Wholesale Loan Setup will not be required to match the Broker Loan Estimate to the Written List of Providers until further notice. Submissions will continue to be rejected if the Broker Disclosed Loan did not provide a Written List of Providers within three (3) business days of the Application Date.

We Close Loans that Others Can’t

Carrington Mortgage Wholesale Lending continues to remain loyal to the underserved market, while competitors continually move away from this segment. To further expand our support, Carrington is offering a 25bps LLPA adjustment on FHA/VA Full Doc loans with credit scores less than 640 throughout August, Jumbos excluded. Carrington remains the tough loans leader, closing loans others can’t through expanded guidelines and manual underwriting capabilities. View our rates.

New State Added – Alaska

Carrington Mortgage Services, LLC (CMS) is pleased to announce that Alaska has been added as an approved state for the Wholesale channel, effective July 20, 2017.

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