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.

Veteran’s Day Holiday Lock Desk Hours

Great News! The Lock Desk at Carrington Mortgage Services, LLC (CMS) will be open Friday, November 10, 2017 for normal Lock Desk hours.

Because Veteran’s Day, November 11, 2017, which is a Federal Holiday, falls on a weekend this year there are some important disclosure considerations associated with the holiday:

  • Friday, November 10, 2017 is a business day for rescission/TRID purposes.
  • Saturday, November 11, 2017 cannot be included in the rescission period for refinance transactions.
  • Saturday, November 11, 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, Saturday, November 11, 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, Saturday, November 11, 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

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.

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

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

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 – Home Possible and Home Possible Advantage Programs Now Available

Overview

Effective July 6, 2017 Carrington Mortgage Services, LLC (CMS) now offers the FHLMC Conventional Home Possible and Home Possible Advantage programs. These programs support CMS’ commitment to the underserved market and have the following key benefits:

 

Program Codes

Program Codes for the Home Possible and Home Possible Advantage programs are in the pricing engine and are:

 

Originator Connect Conference

Join us August 18th-20th in Las Vegas

Carrington will be exhibiting at the Originators Connect Conference, August 18th-20th at Planet Hollywood in Las Vegas, Nevada.

Come talk to the Go-to-Lender for Government and Conventional loans. Stop by booth #311 and learn how to Grow Your Business with Carrington.

We are the experts at Serving the Underserved borrower with loans for those with less-than-perfect credit. First-time homebuyer programs also available.

REGISTER NOW

Product Showcase – Carrington Mortgage Services

  • Saturday, Aug 19th from 1:30pm-1:50 pm in Showcase Room 1
  • Sunday, Aug 20th from 3:00pm-3:20 pm in Showcase Room 1

July 4th Lock Desk Hours

The Lock Desk will be closed on Monday and Tuesday, July 3rd & 4th, 2017 for the 4th of July Holiday. Normal lock hours will resume on Wednesday, July 5, 2017.

The Lock Desk will close at its usual time (4 pm PT) on Friday, June 30th.

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:

  • July 3-4, 2017 cannot be included in the rescission period for refinance transactions.
  • July 3-4, 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, July 3-4, 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, July 3-4, 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.

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