Carrington Wholesale Lending

Effective March 1st, Per Diem Interest on FHA & VA IRRRL Loans

Per Diem Interest on FHA Streamline and VA IRRRL Loans, Effective March 1st, 2018

Effective March 1, 2018, Carrington Mortgage Services, LLC (CMS) will no longer offer an interest credit to cover the per diem interest on FHA Streamline and VA IRRRL loans.

New Streamline/IRRRL submissions received on or after March 1, 2018 will no longer offer automatic lender credit to cover per diem interest amount.

Contact your Account Executive or login to BrokerIQ

Regarding Survey Fees, Effective February 23rd, 2018

Carrington Mortgage Services, LLC requires survey coverage in Florida, Ohio, New Mexico, New York and Texas for all loan transactions with the exception of condominium transactions.

Effective for all new loan submission on and after February 23, 2018, Survey fees must be added to all loans from these five states.

Contact your Account Executive or login to BrokerIQ

2018 Presidents Day Holiday Lock Desk Hours

The Lock Desk will be closed on Monday, February 19, 2018 for Presidents Day, which is a Federal Holiday. Normal lock hours will resume on Tuesday, February 20, 2018.
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, February 19, 2018 cannot be included in the rescission period for refinance transactions.
  • Monday, February 19, 2018 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, February 19, 2018 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, February 19, 2018 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.

Great News for self-employed borrowers!

Bank statements now acceptable in place of IRS Tax documents for Carrington’s Non-Prime Loans.


PURCHASE & REFINANCE
LOAN DETAILS


UP TO $1.5 MILLION
FICO DOWN TO 500 | 70% LTV


UP TO $500K CASH-OUT
FICO DOWN TO 500 | 70% LTV


UP TO $1 MILLION
INVESTMENT PROPERTIES
FICO DOWN TO 620 | 75% LTV


UP TO $1.5 MILLION
INVESTMENT PROPERTIES
FICO DOWN TO 640 | 70% LTV


UP TO $500K INVESTMENT
PROPERTIES WITH CASH-OUT
FICO DOWN TO 640 | 70% LTV

This is a great opportunity to re-energize your pipeline with self-employed borrowers who you may have previously had to turn away. Not only are we now offering Non-Prime* loan products for those with recent credit events to help you expand your pipeline, but we are now “accepting bank statements to verify income in place of IRS tax documents for self-employed borrowers.

NON-PRIME LOAN PROGRAM HIGHLIGHTS FOR SELF-EMPLOYED BORROWERS

  • 24 months of bank statements are required Multiple bank accounts may be used, but a combination of business and personal accounts is prohibited
  • Exclusively for self-employed borrowers
  • Primary, second, and investment homes
  • Purchase and refinance loans

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View the Guidelines and Matrix



*Non-prime product requirements vary depending on the consumer’s credit grade, LTV, DTI, and FICO scores and may require reserves from 3 to 6 months. Ask your Account Executive for additional details and requirements. Not available with our On-Time Closing Promise Offer and in AK, MA, NY, ND, and WV.

Announcement: Non-Prime Loan Products

Expand Your Pipeline with Non-Prime Loan Products

Purchase, refinance and cash-out available

Give your business the boost it needs by adding Non-Agency loans to your product offerings.

NON-PRIME LOAN PROGRAM HIGHLIGHTS*

  • Primary and second homes
  • Purchase, refinance and cash-out loans available
  • Loan amounts up to $1.5 million
  • Minimum credit score of 500 (75% LTV)
  • Maximum 85% LTV with no MI
  • Recent credit events Ok
  • Non-warrantable condos Ok
  • Investment properties Ok
  • 30 year fixed, 5/1, 7/1 ARMS available

Become an Approved Broker           Login to BrokerIQ

*The non-prime product requirements vary depending on the consumer’s credit grade, LTV, DTI, and FICO scores and may require reserves from 3-6 months. Ask your Account Executive for additional details. Note: Not available in AK, MA, NY, WV & ND.

Martin Luther King Day Lock Desk Hours

The Lock Desk at Carrington Mortgage Services, LLC (CMS) will be closed on Monday, January 15, 2018 for Martin Luther King Day, which is a Federal Holiday. Normal lock hours will resume on Tuesday, January 16, 2018.

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, January 15, 2018 cannot be included in the rescission period for refinance transactions.
  • Monday, January 15, 2018 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, January 15, 2018 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, January 15, 2018 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.

USDA Products – 4506-T Tax Transcripts

January 8, 2018rashtonBulletins, Bulletins

Effective December 21, 2017 the USDA suspended its requirements with regard to obtaining IRS Form 4506-T tax transcripts for all adult members of the household.

It is no longer necessary to complete or process an IRS 4506-T for the borrower(s) or for any other adult member in the household prior to funding. Verification of adjusted annual household income continues to be required and documentation must be retained in the loan file.

The following is still required at closing for each borrower:


  • 4506-T document in the closing package must be signed for each borrower whose income is used to qualify (regardless of income type).

4506-T document in the closing package must be signed for the business tax return transcript(s) when business returns are used for qualification.

2018 HMDA Updates

January 3, 2018rashtonBulletins, Bulletins
  • BrokerIQ is set up to accept 2018 Demographic (DI) information at this time.
  • 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 and signed updated 1003 with a DI Addendum prior to Approval.

Holiday Lock Desk Hours

During the holiday season Carrington Mortgage Services, LLC (CMS) will observe the following schedule:

  • Friday, December 22, 2017 – MLD open regular business hours
  • Monday, December 25, 2017 – Closed for the Christmas holiday
  • Monday, January 1, 2018 – Closed for New Year’s Day holiday

The Lock Desk will be closed December 25, 2017 and January 1, 2018 which are Federal holidays.  Due to the holidays, the Lock Desk will be closing early on Friday, December 22, 2017 and Friday, December 29, 2017 at 10:00 AM PST.  Normal Lock Desk hours will resume December 26, 2017 and January 2, 2018.

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

  • Monday, December 25, 2017 and Monday January 1, 2018 cannot be included in the rescission period for refinances.
  • Monday, December 25, 2017 and Monday January 1, 2018 cannot be included in the seven (7) business day waiting period between the between the date the initial Loan Estimate (LE) was provided to the borrower and the consummation of the loan.

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

FHA – Updated Requirements for Properties with PACE Loans

December 18, 2017rashtonBulletins, Bulletins

Overview

Effective for FHA Case Numbers assigned on and after January 6, 2018, properties encumbered with Property Assessed Clean Energy (PACE) obligations will no longer be eligible for FHA-insured financing.

PACE loans are made through government-sponsored programs to finance energy efficient upgrades and installations and where repayment is made through special tax-like property assessments.

Below is a summary of the underwriting changes made for purchase and refinance transactions to ensure outstanding PACE obligations are paid off and closed.

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