Lending Announcement: December 17, 2020

Topics in the Announcement

• USDA Launches AskUSDA

The AskUSDA Contact Center will serve as the “one front door” for phone, chat, and web inquiries.   AskUSDA by phone at (833) ONE-USDA with representatives available 9:00 am – 5:30pm EST weekdays.  The website https://ask.usda.gov/ is available 24/7 and includes live chat agents available 10:00am-6:00pm EST on weekdays.  Inquiries can also be sent via email at any time to askusda@usda.gov

• Conforming Loan Limit Increases

As published by Corporate Communication on 11/24/2020, Fannie Mae and Freddie Mac loan limits were increased to $548,250 for 2021.   Links are provided on the attached with full breakdown for every county in the US.   We will allow loans to close on or after December 21^st utilizing the 2021 loan limits.  Locks will need to be valid through 1/1/2021. fannie mae 2020-41hsgml

FHA published their increased loan limits in ML 2020-41 attached.  Their new loan limits are effective for case numbers assigned on or after January 1, 2021. FHA 2021 Mortgage Limits 2020-41hsgml

• MSHDA – (Michigan State Housing Development) Hazard Insurance payments

All closing packages must contain proof of payment for the first year’s premium of hazard insurance before the loan will be purchased by MSHDA.  Hazard premiums paid at closing on the CD must be sent to the insurance company and included in the CD with acceptable documentation listed below.

• Policy stating premium amount paid in full
• Canceled check, copy of front and back
• Paid receipt from insurance agent or insurance company

• VanDyk to VanDyk Refinance – Escrow Rollover Agreement

When closing a refinance of a mortgage currently serviced by VanDyk Mortgage where the borrower requests the escrows from the current loan be rolled over into the new loan, an Escrow Rollover Agreement must be signed by the borrower and provided to VanDyk Servicing Department along with the payoff request.   The form is in Encompass print menu, Custom Forms, and is titled VanDyk Mortgage (Escrow Rollover Agreement).  A sample copy is attached. Escrow Rollover Request from Encompass Print Menu

• Refinances Accepted into Underwriting

Effective January 1, 2021: we will accept refinances into Underwriting regardless of lock status.

• Closers Assigned at Approval and Clear to Close

To more evenly distribute the workload, the closing department will begin assigning closers in the Approval and Clear to Close Milestones, instead of Resubmittal.  There will be exceptions depending on state, file circumstances, or department capacity; however, most files will see closers assigned in these milestones.  This change will not impact closing turn times, cutoffs, or rush capacity.

• Changing Homeowners Insurance after Closing

When discussing Homeowner Insurance options with your clients: if they are talking about changing insurances prior to 90 days from the due date, they will need to pay the new premium out of pocket. Then the old insurance carrier will send them their refund.  Any recasting of their payment will occur at the time of the normal annual impound analysis.