November 3, 2023
- In-House HE Loan Product Certification
Great news! Beta testing has been completed and we are ready to roll out our in-house second mortgage product companywide. AWESOME!!! If you are interested in originating or assisting with an in-house HELOAN, you will need to complete a training course for Product Certification to have access to the program templates in Encompass. We have a live training session scheduled for Tuesday 11/14 at 11am EST. The outlook invitation is attached, and we will send out a separate invitation with additional details soon. Reach out to ProductionSupport@vandykmortgage.com with questions.
- Condo Vault Training
Earlier this week, Tony Migliavacca from the Condo Vault hosted training for all our processors and TCs. Branches are able to order their own condo reviews immediately, however, as of November 6, all condo orders must be placed by the branch directly through The Condo Vault. Attached is our FAQ for Condo Vault orders and Condo Reviews, and you can find recordings of the training and a how-to guide in the Condos Seafile.
- Compliance Disclosures Update
Our fabulous production team of transaction coordinators and loan processors were trained on sending initial and revised disclosures during last month’s round table and as of today, all of our sales team members have had an opportunity to attend this training as well. Thank you so much to everyone who participated! Remember to reach out to Compliance@Vandykmortgage.com on your first one or two packages should you need assistance or would like to have someone screenshare with you as you work on your first few, to make sure all your questions are answered. Here are some key updates and important information:
- Branches will be responsible to send all initial disclosures and COCs starting 12/1.
- We will provide additional training for bond loans that require a 2nd Encompass file.
- If the compliance team is sending out any initial disclosure packages (aside from the excluded Bond loans) the fee has increased from $30 to $40 as of 11/1 and the SLA has been updated to the end of the 3rd business day
- Beginning December 1st, any COC/Revised LE packages will be an additional $40
- $40 per disclosure set sent
The job aids for sending initial and revised packages are attached and also available with other training resources HERE
- Closing Disclosure Update
As of 11/1, your Closing Disclosures are being sent by the Closing department. A few of our go-getter branches asked to be trained on sending the CDs themselves (to avoid waiting on someone else in urgent situations and to take the power into their own capable, brilliant hands) and we are THRILLED to accommodate anyone else wanting to take on the CD portion of disclosures. If you are not trained to send a CD at your branch, a closer will be assigned and work on sending out the CD for you within current our current SLA. Contact Compliance@Vandykmortgage.com to schedule training.
- Loan Comparison Tool
Are you utilizing the LTK – Loan Comparison Tool to view changes made to your file? You SHOULD BE! Easily identify if a re-disclosure is needed at a glance and what modifications are being made to your file. Check it out under Forms > LTK Loan Comparison Tool
- Floify Reminders
Accepted Documents: Once we give a “thumbs up” and accept docs in Floify, those docs should flow into the Unassigned portion of the File Manager. If that isn’t happening, reach out to Production Support so we can troubleshoot your Encompass integration and make sure it’s set up properly.
Disclosure Automation: After you request a disclosure package, be sure to exit the file. If the file is occupied, Floify will not be able to access the file to send disclosures to the borrower. This can cause issues if we have a time-sensitive CD needing to be sent to the borrower – so best practice is to exit the file and allow Floify access to get them sent.
Floify Inbox: Now that we have worked through our initial launch – when you email Floify@vandykmortgage.com, those emails will be forwarded to Production Support to answer. If you need help after hours or on weekends, Concierge@floify.com has expanded hours (Monday through Friday 9:30 AM – 8:30 PM eastern, Saturday and Sunday 10:30 AM – 7:00 PM Eastern).
Floify and the Borrower Experience: We have some excellent helps and resources from Floify regarding the borrower’s experience and the co-pilot feature where you can follow along with your client while they are in their Floify Portal. Check out the videos and articles below to become an expert in what your clients experience when accessing their accounts:
- Videos
- Borrower Portal Overview
- The Borrower’s Experience (this is a webinar)
- Borrower Filling out the Application
- Help Articles
- Broker Updates
- Angel Oak has rolled out non-QM standalone closed-end seconds. You can find more details on this program here.
- Quorum is now offering an interest-only first lien position HELOC “Bridge” product – see the attached PDF for additional information.
- Loan Template Sets – Floify/Loan Duplications
When loans are duplicated in Encompass or are submitted through Floify, they will come into Encompass without a loan template set applied. Best practice is to apply a loan template set the first time you are in the file. If you forget to do this, a Conventional Purchase template set will be applied by default.
- Licensing Renewals
It’s that time of year! Please see the attached email on licensing renewals. As a reminder, all licenses expire on 12/31/2023 – and you are not eligible to renew your license until your 2023 CE has been complete and posted in your NLMS account. If you have any questions, reach out to Shelby Losinski.
- Human Resources Update: Open Enrollment
Open Enrollment for 2024 is just around the corner! Invitations will be sent soon for informational meetings being held Monday, November 20 at 10am and 2pm eastern. Open Enrollment will start on Monday, November 20 and run through Friday, December 1. See attached PDF for additional details.
- Who Do I Contact
With recent changes to roles and responsibilities, our Need Help? Who to call link on VDMC.net has been updated. In a nutshell, all our “extra” department addresses (SpecUW, NonQM, BrokerSupport) have been suspended in favor of one general email address for each department: askUW@vandykmortgage.com, ProductionSupport@vandykmortgage.com, Compliance@vandykmortgage.com etc. Please take a moment to review the Need Help? Who to call link on VDMC.net to ensure your email communications are responded to as quickly as possible.
- SE Income Support? PRISM and AskUW!
We are over a month into our full PRISM launch and with the success of this income tool we are transitioning away from our current Self-Employed and Rental Income Support Team set-up. Have no fear, once you have completed your PRISM calculation, if you have concerns with your income, you can contact askuw@vandykmortgage.com for support.
- Property Taxes – Important!
We are approaching the months of the year where property taxes are coming due. This is important for us when structuring our LEs and cash to close on files. Many title companies and attorneys’ offices will begin using the estimates for what is due to establish tax proration credits, and we will also need to account for this in our escrow account set-up as well, which in turn effects the final monthly payment we use for qualification.
Please be sure that you are reviewing the most up-to-date estimates in your locality. Also be reminded that in situations where taxes or CDDs are paid for the year in advance, there is a considerable reimbursement due from our Borrowers to the Sellers on purchase transactions. This often grossly increases cash to close over what we may have estimated – please review your LEs and escrow account set-ups carefully and make sure that your borrowers have the most accurate information up front.
- QC Updates
During the QC process we continue to see numerous loan files that have employment and income discrepancies. Here are some common red flags that, if you watch out for and address up front, should reduce the number of discrepancies and improve our overall loan quality. See November’s Quality Control Insight letter attached for all the details.
- Offer letters and qualifying with future employment (start date after close)
- Unable to validate business – location, phone number, online presence, or websites.
- Applicant’s job title is generic – e.g., “manager” or “vice president.”
- Income levels are inconsistent with applicant’s occupation and position.
- Income appears to be out of line with the applicant’s type of employment, length of time at the employer, or education level.
- Recent large pay increases
Agency Updates
Fannie Mae has specified in their most recent Selling Guide Announcement that when a borrower is scheduled to begin new employment under the terms of an employment offer or contract, the offer or contract cannot be for employment by a family member or interested party to the transaction. This is regardless of whether a paystub is obtained prior to loan delivery.
We are re-attaching the DU Release Notes from last month’s new as these updates will occur the weekend of November 18.
Reminder about LTV changes! BIG NEWS coming for DU Casefiles created on and after or resubmitted on and after the weekend of November 18, 2023!!! LTVs are increasing to 2- and 3-4-unit properties up to 95%!!
Freddie Mac wins the hottest topic from the year – Income! Most of the Freddie Mac bulletin surround income this month. If you read anything, please read this! (Okay – And read everything else, too.)
Freddie Mac is emphasizing the importance of documenting our income analysis and calculation as this may aid in future secondary reviews. This starts from application. When you are calculating income at any point in the loan process, please be sure that this is explained and documented if you are using anything other than the recommended income. It could mean the difference between a post-closing issue and not.
The Bulletin this month also touches on history requirements, how to determine the earnings type, and fluctuating earnings. Freddie Mac has created an FAQ to aid in their Employed Income Calculation and Requirements HERE
Timeshare Related Obligations:
*Timeshare loans are considered installment debts, regardless of how they are reflected on the credit report and are not considered housing payments; foreclosure time periods are not applicable.
*Timeshare maintenance fees are not required to be included in the monthly debt to income ratio. And
*Timeshare ownership is not considered an ownership interest for First-Time Homebuyers.
FHA has made multiple updates to the 4000.1 – so much so that we are sharing the most recent version of the 4000.1 with changes effective November 7, 2023 HERE
Accessory Dwelling Unit (ADU) has seen some of the most specific updates from HUD. We have attached a Summary Chart outlining these bullet points.
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Upcoming Events and Reminders
Miss a training? You’ll find our monthly newscast and Iron Sharpens Iron recordings in the VDM Vault. Department-specific trainings are shared in their respective Seafile folders.
Don’t forget: you can find invitations on our shared calendar under Whats Happening at VDMC.net (all times posted on the What’s Happening calendar are EST)
- Deal Desk: Loan Save with Dave: Every Tuesday at 1pm Eastern
- Deal Desk: Feature Topic + Loan Save with Dave: Every Thursday at 1pm Eastern
- VanDyk Mortgage Newscast: Friday, November 10 @ 1pm Eastern
- In-House HELOAN Training: Tuesday 11/14 @ 11am Eastern
- Production Roundtable: Wednesday, November 15 (National Clean Out Your Refrigerator Day) @ 1pm Eastern REMINDER: ATTENDANCE IS MANDATORY for all LPs and TCs/LOAs who perform TC functions.
- Iron Sharpens Iron: Tuesday, November 21 @ 11am Eastern
Variable Income
PRISM – When a borrower is a variable wage earner (hours or wage varies, union, traveling nurse, as examples),
make sure that the drop down within the Prism Worksheet reflects as “Variable” to get the most accurate income calculation.
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