Company News

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Will focus on "establishing strategic alliances with banks and credit unions"

The wholesale lending division of Carrington Mortgage Services has appointed David Grosteffon as its divisional sales manager for strategic accounts.

In his new position, Carrington said Grosteffon will “manage the company's focus on establishing strategic alliances with leading community banks and credit unions.”

Prior to joining Carrington, Grosteffon was vice president and sales manager for JPMorgan Chase where he focused on the growth of the JPMorgan private client brand in the Westchester, New York market.

“David Grosteffon's financial management background and market expansion experience support Carrington's growth strategy to further extend its reach to meet the unique needs of prospective borrowers – particularly those in the underserved market,” said Ray Brousseau, executive vice president of Carrington’s mortgage lending division.

Prior to his time at JPMorgan, Grosteffon was vice president and sales manager at Household Finance/HSBC in the Westchester market. Earlier in his career, Grosteffon served as regional operations vice president at Fremont Investment and Loan in New York, and regional vice president at CitiFinancial/The Associates in the Colorado, Idaho, Oregon, Washington and Wisconsin markets.

“David and his team are well equipped to effectively manage our partnerships with leading community banks and credit unions, which will play a significant role in contributing to our overall business strategy,” Brousseau added.

As published in Housing Wire

Online tool available exclusively to Carrington Approved Brokers provides easy access to marketing materials for a variety of loan products

The Wholesale Lending Division of Carrington Mortgage Services, LLC (Carrington) today announced the launch of www.CarringtonMarketingGenie.com, a mortgage broker marketing portal available exclusively to Carrington Approved Brokers as a value-added service. Carrington Approved Brokers can now market themselves to new and existing customers with professional, targeted materials covering the loan products most needed in their respective markets – regardless of whether or not Carrington currently offers those loan products.

From Carrington’s mortgage broker marketing portal, mortgage brokers can access, customize, order and purchase marketing materials covering a wide variety of loan types, including FHA Purchase and Refinance, VA Purchase and Refinance, USDA, Jumbo, Conventional, Low Down Payment, Co-op, and programs focused on the needs of first-time homebuyers. Having access to tools like this allows brokers to focus on other aspects of their business – most importantly, closing loans.

“Carrington’s broker network plays a significant role in our overall business strategy, and so we take the partnership we have with our brokers very seriously,” said Ray Brousseau, Executive Vice President of Carrington Mortgage Services, LLC’s Mortgage Lending Division. “By providing our brokers with access to effective tools to support their customers and grow their respective businesses, Carrington is able to further extend its reach to meet the unique needs of prospective borrowers – particularly those in the underserved market.”

Brokers who are new to Carrington or those interested in becoming approved should call (866) 288-1016, contact theirlocal Carrington account executive, or visit www.CarringtonWholesale.com for more information.

Carrington’s Commitment to Serving the Underserved Market

 An estimated one in three consumers has a FICO credit score below 650 according to industry experts. For these consumers, obtaining access to appropriate financing options can be a challenge – one that Carrington is uniquely equipped to handle due to the company’s ability to both originate quality loans and appropriately service them after the fact. While Carrington will continue to provide a wide breadth of product and support to borrowers across all ranges of the credit spectrum, the company will increase its attention and focus on providing service to that underserved segment of the market where it can make the most impact – and where its core competencies are obviously needed. To accelerate and further enhance its ability to give this market the attention it deserves, Carrington has lowered its minimum credit requirement to a FICO score of 550, and expanded its guidelines on a number of 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 MyLoanDetail™, 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 borrowers with credit scores of 640 and below to successfully complete the MyLoanDetail online education program prior to funding.

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 43 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, while its commitment to borrower education and use of its proprietary online loan review resource, MyLoanDetail, enhance the company’s ability to responsibly extend credit to borrowers – especially those in the underserved market.

Carrington’s wholesale lending products include FHA, VA and USDA loans. To learn more about Carrington’s wholesale lending division and the company’s current promotions, visit www.CarringtonWholesale.com, or follow us on Facebook, Twitter or LinkedIn.

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

• CMS is closed on Monday, May 26, 2014 in observance of Memorial Day
• The Lock Desk will be closing early on Friday, May 23, 2014 at  10:00 AM PST
  • Normal Lock Desk hours will resume on Tuesday, May 27, 2014
• Reminder, Lock extensions need to be requested prior to their expiration

Carrington will have special Lock Desk hours in observance of The Easter Holiday Weekend.

• Lock Desk closing early on Thursday, April 17, 2014 – 7:30-1:00 PM PST
• Lock Desk closed on Friday, April 18, 2014
• Reminder: Locks must be extended prior to expiration

Experience in credit management, underwriting and servicing make Carrington the go-to resource for credit-challenged borrowers – and the mortgage brokers and real estate agents who support them

MARCH 20, 2014 – SANTA ANA, CA – Carrington Mortgage Services, LLC (Carrington) today announced plans to further sharpen its focus on reaching and serving “underserved” borrowers (typically those in the sub-640 FICO score range) – a sizable market that is largely ignored by today’s lenders.  To accelerate and further enhance its ability to give this market the attention it deserves, Carrington has lowered its minimum credit requirement to a FICO score of 550, and expanded its guidelines on a number of FHA, VA and USDA loan programs, extending eligibility to more property types and reducing overlays.
In addition to reducing its minimum FICO requirements, Carrington has added to and enhanced a number of its primary product offerings to further complement this strategy and increase its accessibility for the underserved market. Interested real estate industry professionals can contact their local Carrington branch or visit www.CarringtonHomeLoans.com/branch for details.  Brokers and banks can contact their Carrington account executive for information – or, to establish a wholesale lending relationship, visit www.CarringtonWholesale.com/become-approved or call (866) 453-2400.
An estimated one in three consumers has a FICO credit score below 650 according to industry experts. 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. While Carrington will continue to provide a wide breadth of product and support to borrowers across all ranges of the credit spectrum through its retail lending division, the company will increase its attention and focus on providing service to that underserved segment of the market where it can make the most impact – and where its core competencies are obviously needed.
“Effectively meeting the needs of clients in the underserved market requires the ability to both originate quality loans and appropriately service them after the fact,” said Carrington Mortgage Services Mortgage Lending Division Executive Vice President Ray Brousseau. “While that combination of capabilities is atypical among most lenders, at Carrington, it’s in our DNA! Both Carrington’s lending platform and specialty servicing business were created to serve this particular market segment. That uniquely positions us as the lender of choice for this population of borrowers, and the mortgage brokers and real estate agents who work with them. Our message is clear: You can count on Carrington to serve the underserved and get the tough loans done right.”
Effective April 1, 2014, Carrington will eliminate conventional and jumbo loans from its wholesale product line and limit its acceptance of wholesale submissions with FICO scores above 680. However, Carrington will continue to serve veterans with VA loans across the credit spectrum.  The company feels strongly that this move is necessary for appropriately allocating its resources to provide optimum support to borrowers in the underserved market.
To enhance the company’s outreach to the underserved market and build awareness of Carrington’s ability to work effectively with these borrowers, the company has launched a robust, multi-faceted marketing strategy to inform consumers as well as industry professionals. A variety of initiatives – from Internet leads and online advertising to Webinars and community events – have been incorporated to increase brand recognition among these audiences and educate all key stakeholders about the company’s vision.
Empowering Borrowers Through Education
As advocates of borrower education and in support of the company’s commitment to meeting the needs of the underserved market, Carrington developed MyLoanDetail, 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 will require all of its customers to complete the MyLoanDetail online education prior to funding.
About Carrington Mortgage Services - Mortgage Lending Division
Carrington Mortgage Services, LLC (Carrington) 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 43 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, while its commitment to borrower education and use of its proprietary online loan review resource, MyLoanDetail, enhance the company’s ability to responsibly extend credit to borrowers – especially those in the underserved market.
Carrington’s retail lending products include FHA, conventional, jumbo, VA and USDA loans. To learn more about Carrington’s retail loan division, visit www.CarringtonHomeLoans.com, or follow us on Facebook, Google+, or Twitter.
Carrington’s wholesale lending products include FHA, VA and USDA loans. To learn more about Carrington’s wholesale lending division and the company’s current promotions, visit www.CarringtonWholesale.com, or follow us on Facebook, Twitter or LinkedIn.

Locking Carrington Loans Under the New QM Guidelines
IMPORTANT:
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.

Carrington is closed on December 24, 25 and January 1
The Carrington lock desk will be closed at 10:30 AM PST on Christmas Eve.

Locks that expire on the holidays will automatically roll to the next business day.  All issues related to locks should be sent via email to lockdesk@carringtonms.com.

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