October 17, 2022
- Production Support: Department Update
As announced at the Ops Fly In, we are delighted to inform that Taryn Chatel has been promoted to Production Support Operations Manager, responsible for the daily management and oversight of the Production Support department team members, systems, and services including the company training and VDMU programs. Congratulations Taryn – we know you and your team will do an incredible job!
- Ops Fly-In Recap
Wow – what an amazing weekend! We had a wonderful time learning about Magic, the VanDyk Life of Loan process, how pink shoes really DO make the man, and that when there is an open bar and 80’s synth pop blasting all night, the VanDyk Ops team will still show up to their commitments on time. Please remember to complete the survey and give your opinion on what we got right and how we can improve for the next event (available until 10/21) and don’t forget to check out all the fun pictures!
- Reminder: Bank Statement Programs Available In-House!
Remember, if you have a Primary Residence or 2nd home self-employed borrower looking to qualify using bank statements, try pricing the loan out in Optimal Blue before brokering. We have 2 non-delegated in house options for these loans that are competitively priced – your LO comp is not disclosed, the appraisal is ordered like a regular conventional deal, and the loan is closed in VanDyk’s name through our closing department. Give us a try!
- 203(h) – Disaster Victims
203(h) program is available, with guidelines listed on the FHA Fixed Rate matrix (attached). Please choose the loan program “FHA 203H 30 Year Fixed.” The Section of the Act will show 203b; DU will run Approve/Ineligible due to the loan amount.
When pricing these loans, please make sure that the “HUD Specialty” box is checked.
The ADP code should be 703. There is a Program ID in the FHA Case Number Assignment Screen drop down option which is required to be listed as “(02)- Disaster Housing” in order for the 203(h) mortgages to be properly identified in the FHA Connection system.
- FL Housing – FHA Single Unit Approval No Longer Available
As previously announced, for all FL Housing Bond loans with reservation dates after Oct 3rd, Lakeview Loan Servicing has replaced US Bank as the servicer. Importantly, Lakeview does not permit the use of the “Single Unit Approval” condo review process for FHA loans sold to them. This is the process by which we review and approve a condo project for ourselves, prior to closing.
For FHA condo loans using FL Housing DPA, the remaining options are to 1) close on a condo project already approved by HUD/FHA or 2) submit the condo review documents directly to FHA for their review and approval (“HRAP” review process).
FHA does not charge a fee for HRAP condo reviews, and the guidelines and requirements are very similar to those for the Single Unit Approval process. The key distinction between both is that HRAP turn times are published as up to 30 calendar days to complete, although timelines could be shorter depending on volume.
If you have any questions, please direct them to condoapprovals@vandykmortgage.com.
- FEMA Updates
Hurricane Ian Update: Here is the most recent and up-to-date list of counties in the State of Florida that have been declared a Major Disaster Area and will require an inspection based upon the attached memo:
- Charlotte, Collier, DeSoto, Flagler, Glades, Hardee, Hendry, Highlands, Hillsborough, Lake, Lee, Manatee, Monroe, Okeechobee, Orange, Osceola, Palm Beach, Pinellas, Polk, Putnam, Sarasota, Seminole, St. Johns, Volusia
- 4506-C – New Form
A new version of the 4506-C is coming and will be automatically updated in Encompass. DataVerify will take the old form through 11/30/2022, but after that date a new form will need to be signed by the borrower(s) in order to order transcripts.
- Tax Filing Deadline
We are coming up on October 17, 2022, which is the extension deadline for 2021 Taxes to be filed. The IRS / Washington have put out guidance that those in Florida, NC, SC, parts of Alaska, and Hinds County Mississippi have until February 15, 2023, due to the recent disasters.
We will need 2021 Tax Transcripts in the file for anything with a note date on or after 11/1/2022 for all other areas. If you are not able to obtain the tax transcripts because the borrower just recently filed, we will need to show proof of filing via one of the allowable methods AND waive transcripts to go direct to agency. As a reminder, if the borrower owes any monies, we do need to show these as paid OR evidence of accepted IRS Installment Agreement and include in the DTI.
- Student Loan Cheat Sheet – Updated!
Our Student Loan Cheat Sheet has been updated with USDA’s new guidance as well as information when a Student Loan is Government backed and in collections with FHA. In addition, specifics for Freddie Mac’s Student Loan forgiveness, cancelation, discharge, and employment contingent repayment programs have been added.
Agency Updates
- Fannie Mae
With the Selling Guide Announcement issued 10/5/2022 from Fannie Mae (attached), they are expanding the documentation options for borrowers drawing Social Security Income (SSI) from their own account or work record. In addition to the Social Security Administration (SSA) Award Letter or Proof of Current Receipt, Fannie will now allow the SSA-1099 of the most recent signed federal income tax return (or transcripts) to serve as adequate documentation. The FNMA Selling Guide “B3-3.1-09 Other Sources of Income” table has been updated as follows.
- Freddie Mac
Freddie Mac is specifying requirements for Borrowers who own less than 25% of a business and receive ordinary income or guaranteed payments reported on an IRS Schedule K-1 for Partnerships and S-Corporations. With this update, the guide is now requiring that for borrows with this income characteristic, sellers (VanDyk Mortgage) must use either:
- The requirements and guidance for self-employed income in Guide Chapter 5304 Guide Section 5304.1 (freddiemac.com) or
- The NEW requirements and guidance in Section 5303.2(d) Guide Section 5303.2 (freddiemac.com), as summarized below:
Also see attached Freddie Mac Bulletin 2022-20 for additional updates related to Freddie Mac Condo Project Advisor and Property Eligibility and Appraisals.
- USDA
USDA has updated multiple paragraphs within Chapter 11 Ratio Analysis Microsoft Word – 3555-1chapter11 (usda.gov) section of the RD Handbook HB-1-3555. Highlights from this update are:
- Student Loans – USDA has added verbiage to the allowance of One half (.50) percent of the outstanding loan balance documented on the credit report or creditor verification, when the payment amount is zero.
- Debt Ratio Waivers – Payment Shock has been removed from Purchase & Refinance Sections as a compensating factor.
Attached to this Newsletter are the full details of the updates; many of those being grammatical.
Borrowers Sharing Email – Important!
Borrowers who are not on a joint application cannot share an email address. Joint borrowers may share an email if they are on the same URLA, but co-mortgagors/borrower pair 2 may not use the same email as borrower pair 1. This is against our eConsent policy.
If you have any questions or need clarification, please reach out to Compliance or Production Support.
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Reminder: Government Loans in LPA
Just a reminder that we are absolutely able to run Freddie Mac LPA on FHA or VA loans – but it will run ineligible. This is acceptable for government loans!
25 Points