LOS unavailable 10/3 – 10/4 due to System Maintenance

Encompass will not be available all day Saturday October 3rd through Sunday October 4th and Carrington personnel will not be available in centers to work on files.

Pipeline Manager will be available to accept submissions and new files


New AMC Available – Appraisal Links

Carrington Mortgage Services, LLC is pleased to announce the addition of a new appraisal vendor; Appraisal Links effective September 11, 2015.  Appraisal Links is a national company that utilizes one of the nation’s largest networks of certified appraisers.

You can access the Appraisal Links AMC at the company’s website Appraisal Links.  Credentials for current Retail Associates will be created and emailed to each Associate directly from Appraisal Links.  New Associates will have credentials issued by MLD Administration at the time of onboarding.

As a reminder, the process for applicants to pay for the appraisal upfront is as follows:

  • The Applicant must provide their personal credit card information to the approved AMC directly.
  • All CMS associates are prohibited from collecting the applicant’s credit card information when ordering an appraisal under any circumstances.
  • CMS may never have the applicant’s personal credit card information on file.

For loans where the applicant pays for the appraisal upfront, the appraisal request may only be submitted with the following AMC’s:

  • Solution Star
  • Nationwide
  • Streetlinks
  • ServiceLink
  • Appraisal Links

Refer to the Retail Appraisal Management Procedures for detailed instructions regarding ordering appraisals.

Serving the Underserved Initiative Reaches 10,000 Borrowers

ANAHEIM, Calif., Aug. 4, 2015 /PRNewswire/ — Carrington Mortgage Services, LLC (Carrington) today announced that the company’s “Serving the Underserved” initiative launched in 2014 has now aided over 10,000 borrowers with their home financing. Driven by Carrington’s commitment to create a more transparent and manageable home loan process, the program offers simplified loan offerings for first-time home buyers, many of whom have a FICO credit score below 640. As of July 2015, Carrington has originated over $1.8 billion in home loans for borrowers with credit scores below 640. Fifty-seven percent of the home purchase loan originations were from first-time home buyers.  This growth aligns with a national trend reflected in the percentage of Federal Housing Administration loans originated for borrowers with credit scores below 640, which is up 125% in just two years.

“Our goal is to simplify the path to home ownership wherever feasible and demystify the complexity that often surrounds the loan process,” said Carrington Mortgage Services Mortgage Lending Division Executive Vice President Ray Brousseau. “Our tailored programs help those who do not have sufficient cash on hand or may feel like their credit score isn’t strong enough to fulfill their dream of homeownership.”   … Read More on Yahoo Finance


Up to Max Credit Scores for Government Loans!

Carrington Mortgage Services Wholesale Lending Division is now offering loans from 550 FICO to max credit for your clients on FHA, VA and USDA Purchase and Refinance Programs. Newly Expanded guidelines include manufactured housing, manual  underwriting and use of non-traditional credit.  Contact your Account Executive for details.

VA IRRRL Lender Credit

Due to the approaching Memorial Day holiday and to facilitate earlier funding of VA IRRRL loans in the month of May, CMS will issue a lender credit for per diem interest on all VA IRRRL loans closing in the month of May.  The credit for the per diem interest must be disclosed on the HUD.

FEMA Disaster Declaration for NY

Due to recent severe winter storm, snowstorm, and flooding in New York, FEMA has declared the following counties a disaster:

  • Cattaraugus
  • Chautauqua
  • Erie
  • Genesee
  • Jefferson
  • Lewis
  • Orleans
  • Saint Lawrence
  • Wyoming

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.

For further guidance and loan property requirements refer to the CMS “Declared Disaster Policy” which is published on the Intranet at: Declared Disaster Policy.

Please contact your Account Executive with any questions.


USDA Eligible Area Update

Effective February 2, 2015, the USDA will update the eligible area maps. This reclassification will mostly involve areas that are going from rural to non-rural; however any areas that should have previously been made rural will now become eligible.

If the property is no longer eligible based on the new area maps, the file must be conditionally approved by Rural Development (RD) prior to February 2, 2015. Otherwise, the file property eligibility must be rechecked before submitting to RD.

Dispute Removal Policy Change

Effective immediately, Experian has revised their policy related to removing dispute comments from an account.  They will now accept the attached letter signed by the borrower (click here).  Please note that TransUnion will also accept the attached letter signed by the borrower.  Equifax will accept either a creditor letter OR the attached letter signed by the borrower


Pipeline Manager Down Time 12/6 – 12/7.

For system maintenance and updates, Pipeline Manager will not be available from 4:00pm Pacific Time on Saturday, December 6th through 2:00 am Pacific Time on Sunday, December 7th.

Please plan accordingly to submit and access files during times when the system is operational.

4506T Requirements Updated

The Carrington Mortgage Services, LLC (CMS) policy regarding 4506T requirements has been updated, effective with loan approvals on and after May 12, 2014.

Loans Approved by Underwriting between April 15, 2014 and June 15, 2014:

  • If tax returns are filed, 2013 and 2012 validated tax transcripts are required, including “record of account”
  • If recent filing within 6-8 weeks, 2013 tax transcript showing “No record of return filed” plus 2012 and 2011 validated tax transcripts, including “record of account”
  • Self-employed borrowers using 2013 income require 2013 and 2012 validated tax transcripts, including “record of account”
    • Conventional – no exceptions
    • Government – if variance in income has increased less than 10% from prior year, 2013 self-employment income can be considered in qualifying ratios
  • If extension filed, see below requirements

Loans Approved by Underwriting after June 15, 2014:

  • If tax returns are filed, 2013 and 2012 validated tax transcripts are required, which must include “record of account”
  • If extension filed, see below requirements

If a Borrower has filed an Extension:

  • Copy of the extension filing
  • If funds owed on extension, proof of payment required
  • 2013 tax transcript showing “No record of return filed”
  • 2012 and 2011 validated tax transcripts including “record of account”

If a Borrower is on a repayment plan:

  • Copy of IRS application/ repayment plan agreement
  • Proof of all payments made within the month due since 1st date of payment due
  • Monthly payment must be included in DTI ratio

W2 Transcripts:

  • Required if wages on 1040’s do not add up to the W2s in the credit package
  • Only if wages on the 1040 are less than W2. If 1040 wages are more than W2’s, acceptable as long as only W2 wages are being used for qualifying
  • Required if using higher W2 wages than prior year and 2013 1040 transcripts are not available
  • If W2 transcripts are unavailable until mid-June, QC will validate the W2 with the employer if required for qualifying
  • Underwriter discretion for other circumstances

Amended Tax Returns

  • Copy of the original 1040 filed
  • Copy of the 1040X and the amended 1040
  • 4506t validated tax transcripts for both returns, including “record of account”
  • CMS does not accept amended tax returns for qualifying purposes
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