VanDyk Mortgage News: July 17, 2025

July 17, 2025

• Whoa, We’re Halfway There!

Join us to start the Newscast this afternoon with a recap of where we’ve been, where we are and where we’re going for the rest of 2025!

• NonQM Official Launch

We are excited to officially launch DSCR and Bank Statement loans in house. For help with your scenarios and bank statement income, we have created nonqm@vandykmortgage.com. To start, we are going to have a 660 min credit score and a max loan amount of $1.5 million. You can review the product matrix here. We look forward to expanding the products and offerings in the future as we gain comfort with these products.

Please note that there are specific UW submission standards for these loans. Please review those here: 2025 Minimum Standards – NonQM

• NonQM TPR Review

NonQM is launching as a delegated product, meaning VanDyk underwriters are making the credit decisions on these loans. To ensure we are having a smooth launch, we are having a third-party review company (TPR) look at these loans once we have finalized our credit decision. The turn time for the TPR review is 48-72 hours, so please make sure you are setting expectations on these loans. We do not anticipate using the TPR firm long-term and will keep everyone updated on the TPR plan as it changes.

• Polly – How to Price NonQM

Effective immediately, NonQM products have been turned on in Polly. These products will need to be submitted for lock by 4:30 EST. Please join us Friday, July 18th at 11am EST for a Polly walkthrough on how to price nonQM loans. There are several different buttons and levers to pull on these loans, so please join this training. Invitation is attached – this training will be recorded and uploaded to the NonQM resource folder once it is available.

• Document Request Reminders

As a reminder, please do not request documents with personal non-public information via email/Outlook. Please utilize Floify or Seafile instead. For non-borrowing actors like gift donors, we can create a Seafile upload link for them to provide docs – see the how-to guide here. Seafile also allows you to share documents via a link, should you need to send a doc that contains personal non-public information.

• Hybrid Appraisals

Hybrid Appraisals are no longer a thing of the past—we’re back to the future with the return of this flexible, efficient valuation option!

Where allowed in your AUS (Automated Underwriting System) Findings, you can now place Hybrid Appraisal orders with Valligent, using our ValueLink AMS system just like any standard order.

Available Product Types:

• Fannie Mae – 1004 Hybrid
• Fannie Mae – 1004 Hybrid – Est Value OVER $1,000,000
• Fannie Mae – 1073 Hybrid CONDO
• Fannie Mae – 1073 Hybrid CONDO – Est Value OVER $1,000,000
• Freddie Mac Pilot 70H
• Freddie Mac Pilot 70H – Est Value OVER 1,000,000
• Freddie Mac Condo Hybrid
• Freddie Mac Hybrid Condo – Est Value OVER 1,000,000

These appraisal types combine verified property data collection with appraiser expertise, offering the depth of a traditional appraisal without requiring an in-person visit.

How HYBRID Works

HYBRID appraisals provide a modern, efficient alternative to traditional in-person appraisals by combining verified property data with public records and expert appraiser analysis. Here’s a step-by-step overview:

1. HYBRID Order is Placed
   An order is initiated through the ValueLink AMS system under the appropriate product type (Fannie Mae or Freddie Mac).
2. Qualified Broker/Agent Collects Property Data
   A licensed real estate professional gathers detailed property information, including ANSI-compliant floor plans.
3. Quality Control Review of Collected Data
   The collected data is reviewed to ensure accuracy and completeness.
4. Validated Property Data Provided to Appraiser
   Verified data is delivered to the appraiser to support valuation.
5. Appraiser Analyzes All Relevant Information
   The appraiser uses the data, floor plan, MLS listings, public records, and other sources to begin valuation.
6. Appraiser Develops an Opinion of Value and Completes Report
   A comprehensive appraisal report is created based on the analysis.
7. Final Quality Control Review
   The completed report goes through a final QC process with Valligent for compliance and accuracy.
8. HYBRID Report Delivered to the Customer
   The finalized appraisal is sent to the client.

🔗 Additional resources can be found here for of our conventional appraisal flexibilities!

Need help identifying eligible cases or placing an order? We’re here to assist—just reach out.

Check out our 🏡 Conventional Appraisal Flexibilities Comparison Chart for information on all of our Fannie Mae and Freddie Mac offerings!

• Escrow Waiver Guidelines

Effective immediately, the following eligibility criteria must be met for a borrower to qualify for an escrow waiver:

Escrow Waiver Eligibility Requirements:

• Loan must be a Conventional loan
• Maximum LTV of 80% (up to 99% LTV for California)
• Minimum credit score of 620
• No 30-day delinquencies within the past 12 months
• No 60-day delinquencies within the past 24 months
• No prior loan modifications
• No delinquency on property taxes for any owned property
• Clear Lien and Judgment Report

All escrow waivers will require documentation and underwriter sign-off to confirm the borrower meets these standards. An AI UW condition has been added to help proactively identify and review waiver eligibility during the loan process. The guidelines are also available to review in Seafile.

Please note: If you lock a loan prior to underwriter review and approval, the escrow waiver request may be subject to change or denial if it does not meet these requirements.

• New 2^nd Lien Option – Redwood HELOANs

Effective immediately we are launching Redwood Trust as another in-house HELOAN option in Polly. You’ll find the eligibility guidelines in Seafile under Products and Programs > Home Equity HE Loan. We have found the Redwood HELOAN to be very aggressively priced compared to the Vista Point Product. Be on the lookout for sales training to be held soon!

• Servicing Transfer

We are excited to announce a strategic change in how we handle servicing for loans we retain in our portfolio. After careful consideration, we have made the decision to transition our retained loan servicing operations to LoanCare, one of the most highly regarded subservicers in the mortgage industry.

Please see the attached letter for additional details.

• VantageScore: Industry Update

FHFA Director Bill Pulte announced on July 8^th that lenders will be allowed to use VantageScore 4.0 credit scores as part of the origination requirement for credit reports.  This follows the 2018 law previously known as the “Credit Score Competition Act”, which was focused on modernizing credit score models across all industries.  There is currently no action necessary as the GSE’s (Fannie Mae and Freddie Mac in particular) are not prepared to accept this credit model; however, we want to provide you with some information to better understand and educate yourselves and your partners for what changes are in store.

• VantageScore FAQ’s
• FHFA FAQ’s

• Sarma EPC Credit Ordering

As a reminder, the Sarma – Legacy credit ordering option will be disabled on 7/31/25. If you missed our training on the updated Sarma EPC interface, please check out the recording here. A how-to guide for Sarma EPC is available here. Reach out to ProductionSupport@vandykmortgage.com with any questions.

• DataVerify – Transition to EPC

Soon DataVerify Fraud reports & SSA verifications will also be transitioning to EPC. The last day to order the “old way” will be 7/31/25. This updated process will be covered on this month’s Production Roundtable – if you order Fraud/SSA verifications and didn’t receive an invitation for Roundtable, please email ProductionSupport@vandykmortgage.com for the calendar invite!

• HR Update: UV & Sun Safety

While a sun-kissed tan may seem like a symbol of health, it’s actually a sign of skin damage. Ultraviolet (UV) rays from the sun or tanning beds can lead to premature aging, sunburn, and an increased risk of skin cancer. Individuals with fair skin, numerous moles, or a family history of skin cancer are particularly vulnerable. So, before you go have fun in the sun, take some time to learn about the best ways to stay safe!

• New Hires: Welcome!

Agency Updates

Fannie Mae/Freddie Mac

Effective immediately, with both Fannie Mae and Freddie Mac, should we become aware that a condo project does not meet the requirements for projects terminating or involved in insolvency proceedings, then the project is ineligible.

In consultation with FHFA, Fannie Mae and Freddie Mac have updated their project review requirements to include projects that are terminating or involved in insolvency proceedings as an ineligible project type.

These requirements apply to all Mortgages secured by Condominium Units in Condominium Projects regardless of the project review type.

FHA

FHA has issued the following Mortgagee Letters (MLs) on June 27, 2025, which introduce important changes that impact loan production and origination processes:

🔹 ML 2025-15 – Rescission of the Supplemental Consumer Information Form (SCIF) Requirement

• Effective Immediately: The SCIF is no longer required as part of the Uniform Residential Loan Application (URLA) for FHA loans.
• Note: This change applies to FHA only. SCIF may still be required for other loan programs (e.g., Fannie Mae, Freddie Mac). We are working to update disclosure packages, processing completion rules, and ai UW conditions as a part of this update.

🔹 ML 2025-17 – Rescission of the Federal Flood Risk Management Standard (FFRMS) for New Construction Eligibility

• This Mortgagee Letter rescinds the previously adopted FFRMS requirements as they relate to new construction eligibility under FHA.
• Due to the complexity of this change, we’ve attached the full Mortgagee Letter for your review. It includes a redlined version of Handbook 4000.1 with all rescinded content crossed out for clarity.

USDA

As announced on the June newscast, USDA has updated their income limits for 2025. Refer to the Income Eligibility Tool or Income Limits map for more information.

VA

On July 11, 2025, the local requirements webpage for VA Home Loans was updated to clarify the specific counties in certain states where wood-destroying insect inspections are required. Wood-destroying insect information requirements can also be found in Chapter 12, Section 33 of the VA Lenders Handbook.

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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 What’s Happening at VDMC.net (all times posted on the What’s Happening calendar are EST)

• Deal Desk: Every Tuesday @ 1:30pm Eastern
• Origination Nation: Every Monday and Thursday @ 12:00pm Eastern
• VanDyk Mortgage Newscast: Thursday, July 17 @ 1:00pm Eastern
• Production Roundtable: Wednesday, July 23 @ 2:00pm Eastern

Appraisal Product Ordering: ACE + PDR and Value + PDR Guidance

We are seeing an increase in instances where the incorrect appraisal product is being ordered in Valuelink, particularly when Fannie Mae or Freddie Mac findings indicate acceptance of the appraised value with a Property Data Report (PDR) requirement. To ensure you are ordering the correct product and avoiding delays, please follow the guidance below based on the AUS findings:

✅ Correct Appraisal Product Based on AUS Findings:

• If using Freddie Mac LPA Findings:
  ➤ Order: ACE + PDR
• If using Fannie Mae DU Findings:
  ➤ Order: Fannie Mae Value + PDR

Ordering the correct product ensures alignment with the AUS findings and avoids unnecessary rework or missed documentation requirements. If you have any questions or are unsure which product to order, please reach out to appraisals@vandykmortgage.com for assistance before placing the order.

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