Carrington Mortgage Services, LLC Wholesale Lending Division

Spring Streamline Special NOW THROUGH APRIL 30TH

Spring Streamline Special

Reduced Streamline LLPAs on FICO<600

Give your business the boost it needs by working with your go-to-lender
for those tough loans, including Streamlines! We’ve reduced LLPAs on
FHA Streamlines and VA IRRRLs for FICO < 600. That means an even bigger
reason to stop turning away clients who may have low FICO scores.

PROGRAM HIGHLIGHTS

FHA STREAMLINE

  • No Income documentation required
  • Reduced documentation compared to standard FHA loans
  • Must have a current FHA loan to be eligible

VA IRRRL

  • No income documentation required**
  • Mortgage history – no late payment in the last 12 months
  • Loan programs available: 30, 25, 20 and 15 year fixed

This offer only good for loans locked through April 30, 2017.
Contact us to learn more about this offer!

*Applicable only for FHA Streamlines and VA IRRRLs with no lates within 12 months.
**Applicable only if monthly principal and interest payment does not increase 20% or more. Verbal verification of income source is required.

Carrington’s $1,500 On-Time Closing Promise

We’re closing purchase loans on time, every time.

Give peace of mind to your clients with Carrington’s On-Time Closing Promise for qualifying home purchase loans.

Carrington will process any qualifying purchase loan—from the time a loan file is submitted to underwriting—meeting the on-time closing date identified as the Close of Escrow date, or we will apply a closing cost credit of $1,500 to the loan at closing.

Carrington is your go-to lender for serving the underserved borrower by offering government loan programs down to 550. Our expertise and our On-Time Closing Promise may help you close more loans when others can’t.

Offer applies to qualifying purchase loans submitted on or after March 20, 2017.

Qualifying loans close on time or we’ll apply $1,500 in closing cost credit, and that’s a promise. Contact us to learn more about this great offer!

Underwriting Guideline Overlays Update March 1, 2017

 

Carrington Mortgage Services, LLC (CMS) is pleased to announce the following Underwriting Guideline changes effective March 1, 2017.

Government Loan Programs

CMS FHA Guideline
Overlays

Guideline Updates

Minimum 550 FICO , CMS to CMS
serviced loans minimum 500 FICO for Government streamlines

Removed overlay.

No minimum FICO required for
all Govt Streamlines (FHA Streamline, VA IRRRL and USDA
Streamlined-Assist). This applies to both Retail and Wholesale. A 12 month
current mortgage only rating is required. A FICO score is not required, but
if one is reflected on the mortgage only credit report, FICO’s less than
500 can be disregarded.

Manual Downgrade for FICO 640
and under and DTI > 43, regardless of AUS decision

CMS will continue to obtain
manual UW conditions for LOE of derogatory credit and VOR current for 12
month rating.

However, CMS will not apply
the downgrade requirements for acceptable credit history and allow
following AUS approve/eligible.

The DTI for manual
underwrites will require a second signature.

Cash out limits: < 620
FICO max cash out is limited to $50,000, > 620 FICO is unlimited up to
the max LTV allowed per the program.

Removed overlay.

Follow HUD at 85% LTV
maximum.

Cash out not eligible with
loans having prior modifications

Removed overlay.

Follow HUD requirements for
acceptable payment history according to the modification agreement.

CMS requires residual income >= to
$800, using VA residual income calculations

Removed overlay.

Handwritten pay stubs require
WVOE and signed payroll ledger

Removed requirement for WVOE.

Maintained signed payroll
ledger requirement.

 

 

CMS FHA Guideline Overlays

Guideline Updates

Items paid outside closing
(POC) cannot be included in borrowers MRI

Removed overlay.

Allow POC for appraisal and
credit report, only if documented with cancelled check or bank statement to
source borrower’s own funds and not a credit card or seller contributions.

Manufactured homes:

No alterations or additions to
the original home

Removed overlay.

Manufactured homes with
acceptable alterations or additions must have marketability,
“like” comparables, gross
living area (GLA) and structural engineer’s certificate required.

Manufactured home with an
additional manufactured home on the property

Removed overlay.

Permitted if the 2nd
manufactured home is being used as a storage building, the kitchen is rendered
inoperable and the utilities are disconnected. Follow HUD requirements.

Mixed use properties require
75% of entire building square footage is for residential use

Removed overlay.

Follow HUD requirements for
residential building use.

Unpermitted addition or conversions greater
than 15% of GLA require permits

Removed overlay.

Appraiser must comment if the
addition or conversion meets all local and county building codes. All
additions/ alterations must be in a workman like manner, market acceptance
and have
“like”
comparables
.

Ineligible properties with
Cisterns, or privately hauled water

Removed overlay.

Requirement for both home inspection and
203k Consultant

Updated overlay. If Consultants are
state-approved home inspectors or members of accredited State or National
Home Inspection Associations, home inspections will not be required.

Currently CMS requires the bid prior to
Underwriting for 203k.

Removed the overlay for the Underwriter to
use the bid. The bid will be sent directly to the Appraiser and will be
conditioned accordingly. The Underwriter will just use the cost breakdown to
calculate the loan amount, instead of the bid.

 

 

CMS VA Guideline Overlays:

Guideline Updates

Max cash out to 90% LTV for FICO 550- 619

Allow up to 100% LTV for FICO
550-619.

Require LOE for purpose of cash
out.

Maximum cash out up to 100% LTV
is $5000

No maximum cash out up to 100%
LTV.

Require LOE for the purpose of
cash out.

Requirement for 100% joint
access letter with a non-borrowing spouse

Removed overlay.

 

CMS All
Govt Guideline Overlays

Guideline
Updates

Revolving accounts paid off through closing
must be closed at the Underwriters discretion.

Removed requirement to close
accounts.

Credit procedure for
Manufactured home Affidavit of Affixation (AofA)

Current process requires CMS
associate to execute and notarize the AofA, FedEx to title the day before
closing and record with docs.

Procedure revised to send AofA
with closing documents and a limited POA.

Title or Closing Agent will
execute the AofA document and ensure document gets recorded (if required in
that State).

 

 

Conventional Loan Programs

CMS
Conventional Guideline Overlays:

Guideline
Updates

Transferred appraisal not permitted

Allow
transferred appraisals with proof that transferred appraisals comply with
Appraiser Independence Requirements (AIR)

Condo minimum square footage requirement is
400 square feet

No restriction for minimum square footage;
however, appraiser must confirm that there is no negative impact on
marketability and provide “like” comparables.

Future employment is not permitted

Permit future employment.

Require contract or employment offer at the prior to documents and a paystub prior to
funding.

Full appraisals are required

Removed overlay.

Follow FHLMC Home Value Explorer (HVE)
and/or FNMA Property Inspection Waiver (PIW) for AUS feedback.

Freddie Mac Open Access and DU Refi Plus limited
to Maximum conforming loan amounts

Removed overlay.

Follow Open Access and DU Refi Plus for AUS
Approve/Eligible findings.

Open Access investment properties are
ineligible

Removed overlay.

Allow investment properties meeting all
FHLMC guide requirements.

95% Maximum LTV

Launch FNMA HomeReady on 3/1 with 97% LTV

Financed Mortgage Insurance (MI) is not
eligible

Removed overlay.

CMS will permit financed MI.

Rent loss insurance is required for 2-4
unit primary properties and all 1-4 unit investment properties when rental
income from the subject property is used to qualify borrower.

Removed overlay.

Rent loss insurance will not be required.

Appraisal updates are not acceptable to CMS

Removed overlay.

Allow for appraisal updates following
guidelines.

 

 

CMS
Conventional Guideline Overlays:

Guideline
Updates

Flip transactions less than 90 days are
ineligible

Removed overlay.

Allow flips less than 90 days with
Underwriter to review for valid transaction, transfer of title and inflation
of value or sales price to be properly supported.

Chipping paint on homes built prior to 1976
will need to be repaired.

Removed overlay.

Follow guidance for health and safety if
appraiser comments or part of sale contract.

Minimum two (2) reported credit scores for
each borrower required (matrix)

Removed overlay.

Allow one (1) minimum score for each
borrower with a tri-merge credit report.

Non-Owner Occupant on Cash – Out Refinance
Not Allowed

Removed overlay.

Follow FNMA.

Max Financed properties 6

Removed overlay.

For FNMA only, allow up to 10 maximum
financed properties with 720 minimum FICO.

 

 

 

President’s Day Lock Desk Hours/Closing Calendar

The Lock Desk will be closed on Monday, February 20, 2017 for Presidents Day, which is a Federal Holiday. Normal lock hours will resume on Tuesday, February 21, 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:

  • Monday, February 20, 2017 cannot be included in the rescission period for refinance transactions.
  • Monday, February 20, 2017 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
  • When re-disclosure of the LE is required, Monday, February 20, 2017 cannot be included in the three (3) day business waiting period between the date the revised 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.

Road to Houston Winner Announcment

We want to send a big thank you to everyone who participated in the Road to Houston sweepstakes and helped make it a great success.

And a special congratulations to Joseph G. of Hesperia California! Joseph and a guest have won tickets and travel to Super Bowl LI at NRG Stadium in Houston Texas.

We hope you have a great time at that game Joseph!

Martin Luther King Day Lock Desk Hours

The Lock Desk will be closed on Monday, January 16, 2017 for Martin Luther King Day, which is a Federal Holiday. Normal lock hours will resume on Tuesday, January 17, 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:

  • Monday, January 16, 2017 cannot be included in the rescission period for refinance transactions.
  • Monday, January 16, 2017 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
  • When re-disclosure of the LE is required, Monday, January 16, 2017 cannot be included in the three (3) day business waiting period between the date the revised 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.

December Holiday Season – Operations and Lock Desk Hours

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

  • Friday, December 23, 2016 – MLD open regular business hours
  • Monday, December 26, 2016 – Closed for the Christmas holiday
  • Monday, January 2, 2017 – Closed for New Year’s Day holiday

The Lock Desk will be closed December 26, 2016 and January 2, 2017 which are Federal holidays. Due to the holidays, the Lock Desk will be closing early on Friday, December 23, 2016 and Friday, December 30, 2016 at 10:00 AM PST. Normal Lock Desk hours will resume December 27, 2016 and January 3, 2017.

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 26, 2016 and Monday January 2, 2017 cannot be included in the rescission period for refinances.
  • Monday, December 26, 2016 and Monday January 2, 2017 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.
  • When re-disclosure of the LE is required, Monday, December 26, 2016 and Monday January 2, 2017 cannot be included in the three (3) day business waiting period between the date the revised 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.

Lock Desk Closed for Columbus Day Holiday

The Lock Desk at Carrington Mortgage Services, Wholesale Lending Division, will be closed Monday, October 12, 2015 in observance of Columbus Day, which is a Federal Holiday.

Normal Lock Desk hours will resume on Tuesday, October 13, 2015. Carrington Mortgage Services (CMS) offices will be open normal business hours on Monday, October 12th, 2015.

As a reminder, pursuant to the Lock Desk Policy all lock extensions need to be requested prior to their expiration.

In addition, there are some important disclosure considerations associated with the holiday:

  • Monday, October 12, 2015 cannot be included in the rescission period for refinance.
  • Monday, October 12, 2015 cannot be included in the seven (7) day business day waiting period between the date the initial TIL was provided to consummation.
  • When re-disclosure of the TIL is required,Monday, October 12, 2015 cannot be included in the three (3) day business waiting period between the date the revised TIL was provided to the borrower and the consummation of the loan.

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

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

 

Carrington Introduces “The Carrington Loan” Through Its Wholesale Lending Division

Loan program eliminates 100% of closing costs, simplifying loan process for mortgage broker partners and their borrowers

 MAY 27, 2015 – SANTA ANA, CA – Carrington Mortgage Services, LLC (Carrington) today announced that beginning May 2015, it will make The Carrington Loan available through its national wholesale lending division. Developed in support of Carrington’s commitment to serve the “underserved” market and first time home buyers, The Carrington Loan offers borrowers a more transparent, simplified home loan process with no closing costs or upfront financing fees to facilitate home purchases.

“The Carrington Loan simplifies the loan process and improves the experience to help remove the anxiety often associated with a mortgage loan, particularly for those who do not have sufficient cash on hand to pay upfront financing fees, appraisal and closing costs,” said Carrington Mortgage Services- Mortgage Lending Division Executive Vice President, Ray Brousseau. “With The Carrington Loan, there is no need for a mortgage broker to modify the rate after it is presented to the borrower to offset loan costs and loan closing fees, and unexpected increases to estimated closing costs are not an issue. Removing these barriers simplifies the process for our mortgage broker partners and their borrowers who desire to fulfill their dream of homeownership.”

This initiative presents additional opportunities for purchase-focused brokers to work directly with real estate agents, consumers and investors to extend their purchase home loan offerings. In addition, mortgage brokers who specialize in refinance opportunities provide The Carrington Loan as an option for FHA/VA borrowers.  Carrington has started providing Carrington Loan training to its broker partners throughout the program’s launch period. Mortgage brokers can sign up for the company’s “Daily Rate Report” and view the webinar schedule at www.CarringtonWholesale.com or connect with a Carrington account executive for upcoming training dates and times.

The Carrington Loan is unique in that:

  • There are no closing costs, appraisal fees, or lender financing fees.
  • Carrington pays all eligible loan costs as lender credits.
  • If any unanticipated lender costs arise, Carrington will issue a credit to cover them. This may include additional title or escrow service charges from the title or settlement company.

According to industry experts, one in three consumers has a FICO credit score below 650. For these consumers, and the brokers and agents working with them, obtaining access to appropriate financing options can be a challenge – one that Carrington is uniquely equipped to handle. Last year, Carrington lowered its minimum credit score requirement to 550, and expanded its guidelines on FHA, VA and USDA loan programs, extending eligibility to more property types and reducing overlays.

As advocates of borrower education and in support of the company’s commitment to meeting the needs of the underserved market, Carrington developed patent-pending MyLoanDetailTM, a proprietary online loan review resource designed to improve the financial literacy of its customers by walking every customer through the details of their loan. This education initiative will help to ensure borrower understanding of loan terms and responsibilities. Carrington requires all of its customers to complete MyLoanDetail prior to funding.

To learn more about The Carrington Loan visit www.CarringtonWholesale.com. The Carrington Loan is a government insured loan program, and any upfront mortgage insurance or funding fee that may be required by a government agency may either be financed into the loan amount or paid by the borrower in cash at closing. Borrowers are responsible for any services requested by the borrower that are not required as part of the loan, including, but not limited to rate-lock extension fees, survey fees, and home warranty costs.

About Carrington Mortgage Services – Mortgage Lending Division

Carrington Mortgage Services, LLC (Carrington; NMLS ID 2600) is a residential retail and wholesale lending subsidiary of Carrington Holding Company, LLC. Founded in 2007, the company is based in Santa Ana, California and is an equal housing opportunity lender licensed to originate loans in 46 states, the District of Columbia and Puerto Rico. With an experienced team focused on producing high quality loans and error-free transactions, Carrington’s advanced technology platform and high-touch customer service provide superior loan origination experiences for consumers at all credit levels, including those in traditionally underserved markets. The company’s commitment to borrower education and use of its proprietary online loan review resource, MyLoanDetail™, enhance their ability to provide customized solutions for borrowers, including FHA, conventional, jumbo, VA and USDA loans. To learn more about Carrington’s wholesale lending division, visit www.CarringtonWholesale.com.

About The Carrington Companies:

The Carrington Companies own and operate multiple businesses that cover virtually every aspect of single family residential real estate transactions through investments in U.S. real estate and international mortgage markets, loan origination and servicing, asset management and property preservation, real estate brokerage, title and escrow services. To read more visit: www.carringtonhc.com.

Through its collective associates made up of Carrington leaders and employees, the company’s non-profit organization, Carrington Charitable Foundation, seeks to promote giving back to the community through causes that reflect the interests of Carrington Associates. For more information about Carrington Charitable Foundation and the organizations and programs it supports through specific fundraising efforts, please visit: http://carringtoncf.org.

Media Contact:
Christine Stricker
Office: (949) 517-7313
Mobile: (714) 873-4275
Christine.Stricker@carringtonmh.com

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