Company News

Now Through 6/10/2012
As announced in FHA ML 12-04—Effective for case numbers assigned on/after 6/11/12 for streamline refinance transactions of FHA loans endorsed on/before 5/31/09:

1. Decrease to Up Front MIP: Up Front MIP = 0.01 of the base loan amount.
2. Decrease to Annual MIP: Annual MIP = 55 bps, regardless of loan amount.

Submit Early and Carrington Mortgage Services Will:

1. Confirm that the loan is eligible via the Query Screen on FHA Connections. MSI will advise you if the loan is not eligible.
2. Underwrite the loan and hold it in queue to submit for an FHA case number on 6/11/12.
3. Receive the case number from FHA, and expedite the closing/funding of the loan.

We will make every effort to facilitate a June closing for these early submissions; however, we are subject to the limitations of the FHA Connections’ ability to provide FHA Case Numbers.

• If the receipt of the FHA case numbers is delayed, CMS will strive for a July closing; however, CMS will then require an updated Payoff Letter from the Servicer.

Ready to Submit Now?

1. Submit the eligible FHA Streamline loan package to CMS according to current guidelines.
2. You do not have to include the FHA Case Number Assignment.
3. You MUST include the fully completed CMS FHA Case Number Assignment Request Form. Click Here for the form

Please include:

• Evidence of current Case Number (for the loan being refinanced).
• Copy of Pay-off letter from the servicer showing payment due for June 2012

Borrowers now need to resolve even minor disputes with their creditors before expecting the Federal Housing Administration to insure their loan. As of April 1, the FHA will no longer consider insuring a mortgage to any potential borrower with ongoing credit disputes totaling more than $1,000.
Prior to the new rule, individual underwriters and lenders could determine whether a borrower's outstanding debts and credit disputes should affect the approval of an FHA-backed mortgage. But as the FHA continues to look for ways to reduce its risk and protect the slipping levels in its reserve fund, mortgage seekers need to keep up with the stricter requirements. Starting in April, lenders need to justify each approval to the FHA and provide documentation that backs their decision.
Borrowers with debts of at least $1,000 in collections now have two options: pay off the outstanding balance or resolve the issue with a valid explanation before closing. The FHA will want to see either proof of a payment arrangement with the creditor(s) or evidence that the disputed loans are being collected as an error.
The new rule does not apply to disputed accounts that date back more than two years or to those related to fraud or identity theft, providing the client can show documentation, such as police reports, of the identity theft case or fraudulent charges. While a lender can still decide to issue the loan to a borrower who supplies sufficient information that sides in their favor, the FHA may still reject it, making this an unlikely scenario as lenders will match their caution to the new FHA rules.
Also beginning in April, the FHA has raised its insurance premiums from 1% to 1.75% of the base loan amount. Some fear the combination of these two new changes could keep the housing market in its lull, if fewer buyers can qualify for FHA mortgages. About 15% of all mortgages are insured by the FHA, which insures mortgages that originate with private FHA-approved lenders. The percentage was significantly higher in 2009 and 2010, as the loans have been a popular option for clients with less-than-perfect credit who seek a low down payment and affordable terms.

Carrington Mortgage Services is now lending in Wisconsin, Minnesota, and North Carolina. Effective immediately, all loan programs are available for all eligible subject properties located in these states. See our loan programs for details. Brokers located in these states interested in becoming an approved Carrington partner should contact their Account Executive or new broker applicants can call 866.453.2400. Carrington has partnered with Comergence Compliance Monitoring to process new broker applications for review. You can register (or log-in if you are already registered) with the Comergence system and begin your broker application now. Carrington Mortgage Services will continue expanding our Wholesale network into new markets through 2012. If you have questions please contact your Account Executive.

View our current FHA Streamline guidelines offering non credit qualifying and credit qualifying programs.  Contact your Account Executive for more information or view the loan program details,  click here
NON CREDIT QUALIFYING* PRODUCT HIGHLIGHTS

• Total lender fees: $399
• No appraisal required
• No income documentation required
• Mortgage history - no late payments in the last 12 months
• Reduced documentation compared to standard FHA loans
• Must have a current FHA loan to be eligible
• Credit qualifying loan programs available, view the loan program details, click here.

*FHA Streamline refinance non credit qualifying program requires a tri-merge credit report reflecting only the FICO score and a 12-month mortgage history. Closing costs may not be financed into a non credit qualifying refinance. Verbal verification of income source is required.
If you have any questions please contact your Account Executive
 

Monday, February 20^th is President’s Day. CMS Lending and the Lock Desk will be closed.

• All lock extensions will need to be requested by Friday, February 17^th, including those expiring on Monday, February 20^th.
• Monday, February 20, 2012 cannot be included in the rescission period for refinances.
• Monday, February 20, 2012 cannot be included in the seven (7) business day waiting period between the date the initial TIL was provided to consummation.
• When re-disclosure of the TIL is required, February 20th cannot be included in the three business day waiting period between the date the revised TIL was provided to the borrower and the consummation of the loan.

If you have any questions please contact your Account Executive.

As a result of the Temporary Payroll Tax Cut Continuation Act of 2011 passed by Congress and signed into law, the Federal Housing Finance Agency (FHFA) directed Fannie Mae and Freddie Mac to increase loan guarantee fees.
Carrington Mortgage Services will implement a change to our pricing structure for all Conforming Conventional (including High Balance products) loans as follows:

• Any Fannie Mae or Freddie Mac product loans that are locked prior to January 19, 2012 and need to extend the lock beyond February 14, 2012 to fund will be subject to a 50 basis point price adjustment. This is in addition to any regular extension cost.
• This applies to all loans with a new expiration date that is on or after February 14, 2012 or to which the lock extension is added on or after February 14, 2012.  This only applies to loans locked prior to February 14, 2012 and that are being extended past that date.  Locks on or after February 14, 2012 will have regular extension costs applied.
• Includes all relocks and all other extension scenarios
• All other extension costs for loans locked on or after January 19, 2012 or that close and disburse prior to February 14, 2012 will be subject to the current extension fees as listed on the daily rate sheet

Carrington Mortgage Services will monitor the pipeline and reserves the right to assess the correct extension fees where applicable.
If you have any questions please contact your Account Executive.
Thank you for your continued business.

Monday, January 16, 2012 is the Federal Holiday, Martin Luther King Day.  Carrington Mortgage Services and the Lock Desk will be closed.
Carrington Mortgage Services – Wholesale Lending will be open for business on Tuesday, January 17, 2012 and the Lock Desk will resume normal operation starting at 8:00 AM PST to 4:00 PM PST.
Reminder:
All lock extensions need to be requested prior to their expiration.  If a lock expires on Monday, January 16^th then it will need to be extended prior to Friday, January 13^th  at 4pm PST.
Disclosure Considerations:
Please note the important disclosure considerations associated with the holiday.

• Monday, January 16, 2012 cannot be included in the following:
  • Rescission period for refinances .
  • The seven business day waiting period between the date of the initial TIL and the closing date.
  • When re-disclosure of the TIL is required, January 16^th cannot be included in the three business day waiting period between the date the revised TIL was provided to the borrower and the closing of the loan.

Please contact your Account Executive with any questions regarding our holiday operations.

Carrington Wholesale Mortgage is now open for business in New Mexico, Illinois, Pennsylvania, and Virginia! Effective immediately, all of our loan programs and products are available for subject properties located in any of these states*.
We are also currently looking for new Brokers in these states…if you’d like more information about becoming an approved Carrington Wholesale Lending partner, please contact your Account Executive.
To make the approval process quick and easy, we leverage the services of Comergence Compliance Monitoring to process new applications. You can register (or log-in if you are already registered) to the Comergence system right now at https://www.comergence.com/brand/carringtonmortgage.aspx
Did you know that Carrington Wholesale Mortgage is licensed in 40 different states? We will be expanding our Wholesale network into many new markets in 2012, so stay in touch with your Account Executive for all the exciting new opportunities available in the coming months.
If you have additional questions, please consult with your Account Executive.
Thank you for your continued business!

Carrington Wholesale Lending remains committed to providing you, our valued customers, with highly competitive pricing and a robust product set. Our FannieMae DU-Refi Plus products, for example, are available in both Fixed-rate and LIBOR ARM versions for not only Conforming loan amounts, but also High Balance loans designed to meet the needs of those areas of the country with higher loan limits.
To support your efforts in delivering the best value to your clients, effective Monday, December 19^th, 2011, the maximum cumulative adjustments (excluding loan amounts and impounds waivers) on the DU-Refi Plus products will be 1.75%! 
If you have additional questions, please consult with your Account Executive.
Thank you for your continued business!