Wholesale Locking Policy Under New QM Guidelines

Locking Carrington Loans Under the New QM Guidelines

When locking loans with submission dates of 1/10/2014 or later,  the CMS underwriting fee is now included in your QM points and fees test (3% Cap rule).  

If you wish to have the CMS underwriting fee excluded from your points and fees test, Carrington will apply a corresponding LLPA to the final price of the loan equal to the amount of the fee.  

To have the Underwriting Fee applied as an LLPA, please email the CMS lock desk at lockdesk@carringtonms.com at time of lock.  Subject line: Underwriting Fee. Indicate that you choose to have the underwriting fee applied as an LLPA to the final price.

Regarding Changes to Locked Loans:
If the loan has been locked and you wish to change your selection, contact your Account Manager or Account Executive immediately. CMS may need to re-disclose the loan to the borrower. 

Automating the UW Fee Selection:
CMS is working to automate the process in Pipeline Manager’s pricing engine. When completed we will notify you immediately.

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