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.

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.

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.

 

 

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