Company News

Subject: Increased FHA High-Cost Loan Limits Now Available
Date: 12/09/2011
In response to the changes prompted by the Consolidated and Further Continuing Appropriations Act of 2012 (which President Obama signed into law on November 18, 2011), HUD recently issued Mortgagee Letter #2011-39 announcing the acceptance of the return to the “higher” Conforming FHA loan limits for properties located in designated “High-Cost” areas.
Specifically, effective for case numbers assigned November 18, 2011 through December 31, 2011, FHA’s maximum loan limits have been restored to the “temporary” High-Cost loan limits that were in effect from January 1st through September 30th of this year. As a result, the loan limit for Carrington Wholesale Lending FHA loans in High-Cost areas is once again $729,750 for a one-unit property (and higher for multi-unit properties).
Please note that loans having case numbers assigned between October 1, 2011 and November 17, 2011 continue to be subject to the lower loan limits published in FHA Mortgagee Letter #2011-29. The actual loan limit for any given loan in the United States varies by county and can be determined using the look-up tool available on HUD’s website at: https://entp.hud.gov/idapp/html/hicostlook.cfm. In order to accommodate the various changes to the maximum Conforming loan amount that have been made over the past year, the look-up possibilities on that website include the following timeframes:

• Calendar year 2010
• January 1, 2011 – September 30 , 2011
• October 1, 2011 – November 17, 2011
• November 18, 2011 – December 31, 2011
• Calendar year 2012

The CASH system has been updated to recognize any applicable loan-limit changes and to accurately differentiate a Conforming loan from a Jumbo loan, based on product type and ZIP code.
If you have additional questions, please consult with your Account Executive.
Thank you for your continued business!

Effective for all Conventional loan applications dated December 1, 2011 and after, appraisal reports will need to be uploaded to the new Fannie Mae/Freddie Mac Uniform Collateral Data Portal (UCDP). At this time, appraisals used for Non-Conforming loans, as well as for Government loans, will not be required to be submitted to the UCDP.
Overview
The Uniform Collateral Data Portal (UCDP) is an electronic repository established by Fannie Mae and Freddie Mac to accept and store appraisal reports in advance of receipt of the actual loan file by those GSE’s. This "early" submission process for appraisals on Conventional loans will ensure that the appraisal report is acceptable, and that Carrington Wholesale Lending has ample time to obtain any corrections needed prior to the loan’s deliver to Fannie Mae or Freddie Mac.
Appraisal Acceptability
Appraisals submitted to the UCDP will go through a series of compliance checks and the UCDP system will generate a report showing the status of the appraisal at the time it is uploaded. Appraisals must receive a "Successful" status in the UCDP in order to be eligible for funding. Appraisals that receive a score of “Not Successful” or “Rejected” will need to be corrected by the Appraiser and re-uploaded to the UCDP for re-scoring before the loan can be cleared for docs.
Although our approved Brokers will not be responsible for submitting appraisals to the UCDP, Carrington Wholesale Lending will require that Brokers cooperate in obtaining any needed corrections on appraisal reports which are not deemed to be “Successful” by the UCDP system.
Please note that the receipt of a “Successful” score from the UCDP has no bearing on whether or not the value shown on an appraisal report is valid. We will continue to employ our existing internal appraisal review process for all appraisals, Conventional or otherwise, and it is still the Underwriter, not the UCDP, who will ultimately verify an appraisal’s quality and determine the soundness of the property’s value, as indicated by the Appraiser.
Appraisal Transfers
Due to the UCDP compliance requirements as outlined by Fannie Mae and Freddie Mac, we can no longer make exceptions to our prohibition against accepting appraisals “transferred” from other Lenders on Conventional loans. Effective immediately, transferred appraisals cannot be accepted on Conventional loans with application or appraisal report dates of December 1, 2011 or later, under any circumstances.
If you have additional questions, please consult with your Account Executive.
Thank you for your continued business!

 LPMI Program Now Available! 
Effective November 8, 2011, Conventional 30-year Conforming and High Balance Fixed-Rate loans with Lender-Paid Mortgage Insurance (LPMI) are available under product codes 2C30FLPMI and P2H30FLPMI, respectively.
Pricing is now available on the rate sheets posted in the Loan Programs section of our website. When using the CASH system, please choose “99” form the Mortgage Insurance drop-down if creating a scenario for an LPMI loan.
For specific program qualifying requirements, please review the attached Product Guidelines which are also posted on our website.
If you have additional questions, please consult with your Account Executive.
Thank you for your continued business!

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