Author: VanDyk Mortgage

September 7, 2023

• Floify

Companywide Floify training will be presented the weeks of 9/11 and 9/18 (Monday or Tuesday same content, just two options).  Once you have completed training you can request that your Apply Now and website links be changed over to Floify by emailing Floify@vandykmortgage.com.  Anyone not already transitioned will be moved automatically by EOB on 9/25.

Check out the Floify Resources folder for recorded trainings and how-to guides. At the VDMC.net blog, the Howee’s Helpful Tips category is where you’ll find tips and tricks for Floify.

• New Income Calculation Tool: Coming Soon!

We are delighted to offer a NEW and IMPROVED income tool for all income types – Prism & Prism PLUS! Prism will allow us the opportunity to align with our agency and investor income calculations, gain greater consistencies in income calculations from sales to underwriting and QC, as well as reduce cost.  BONUS: You can get solid income calculations on the weekends and after hours without AskUW!  Be on the lookout for mandatory trainings this month!

• SLA/Turn Time Reminders

We strive to provide unparalleled service to all our customers by responding quickly to requests for assistance.  When tickets and emails are submitted to our service teams (AskUW, Pipelines, ProductionSupport, ITHelpDesk, Compliance etc) they are responded to in the order they were received within 24 hours.  Often the response time is less than 15 minutes – so when it takes longer than this, our customers may feel our service level has decreased or they are not important to us.  We hope you never feel this way! There is an ebb and flow of business during the day and staff is assigned to certain tasks accordingly. If you’re ever unsure of who to contact, refer to our Who to Call blog post here.

Thank you for your patience and understanding of our service level agreement and expectations.  If you have an urgent issue that needs to be addressed immediately, escalating to your supervisor is the best course of action.

• • • LO to Branch Manager
    • Branch Manager to Regional Manager
    • Regional Manager to Sr Management

 

• Introducing: Second Home and Investment Nondelegated Options through NexBank

NexBank is offering reduced LLPAs on Second Home and Investment properties under their Mortgage Connect product. These are portfolio products for the bank, so unfortunately they will be the ones underwriting these products. Attached you will find their matrix and Guidelines. Please note: VanDyk will not be offering their ARMs at this time.

These products will be available in Optimal Blue as of Friday, September 8th. Pricing note: Not all Second Home and Investment properties will price better under this product. The larger the LLPA’s, the more likely it is to price better.

• New Form: Pre-Application Worksheet

On September 6, 2023, the Itemized Fee Worksheet (2021) will no longer be available to print from Encompass. To provide a better representation of the itemization, a new document called Pre-Application Worksheet has been provided for use. Find this new form under the Custom Forms tab > Companywide (Custom Documents), as seen below:

• Credit Authorization Update

In an effort to ensure compliance with regulatory agencies, starting 9/11/23 the Credit Authorization fields on Borrower Summary – VDMC will be required to be completed prior to ordering credit in a file. When the “Authorized Credit Report” box is checked, you are certifying you have obtained in writing the borrower’s permission to pull their credit.

To help you maintain excellent service and reduce your stress, we are working through an automation feature where Floify will complete this for you once the borrower finishes the credit authorization process in their app and/or an auth to pull credit form is uploaded into the corresponding bucket of the Encompass eFolder.

• Freddie/Soft Pull Update

GREAT NEWS!  We have a few two-bureau Soft Pull test cases with Xactus that have successfully been run through Freddie Mac’s LPA and hope to have the missing third bureau before the holidays.  SARMA has advised their test cases with all 3 bureaus should be ready this week which means we may be able to offer Freddie Mac LPA results with tri-merge soft pulls via SARMA soon.  EXCITING!!!

• SimpleNexus: Loan Application Refresh

For teams still using SimpleNexus: SN has launched a new borrower-facing application for new loans, which was enabled on September 1. You may notice slight changes to the data coming in; unfortunately, this version of the app does not have the same required fields as our custom application did.

We encourage all teams who have been trained on Floify to update their Apply Now links to point to Floify – since Floify allows you to customize your URLA to get the data you’re looking for. Reach out to Floify@vandykmortgage.com with any questions.

• Brokered Loan Process Flow

Tired of feeling out of the loop with your brokered loan Encompass pipeline?  COMING SOON – the brokered loan template set applied to your brokered loans will include milestones specific to brokering!  That’s right – when the loan is CTC with the lender, your Encompass file can be updated to reflect the same.  When the closing docs are signed, your Encompass pipeline can show that too!  We are in the final stages of testing and hope to go live with templates applied on and after 10/1.  See the attached updated Brokered Loan workflow for details.

• Condo Updates

We have listened to feedback from many of you regarding wanting to bill the borrower up front for the Condo Fee before processing begins with The Condo Vault.  If you have placed an order for Condo Approval this week, you may have noticed our new and improved Borrower Summary drop down for the Condo Fee to be POC (Paid Outside Closing).  Upon entering the Date for Condo Screening, please complete the dropdown accordingly to indicate if the fee will be collected upfront or at closing.  Like our appraisal orders, if the fee is to be collected upfront, the condo order will be on hold until payment is made by the borrower.  Please contact condoapprovals@vandykmortgage.com with any questions.

 

• Jumbo Update: Loan Amount Approvals

We are pleased to announce that we now have non-delegated and broker options for loan amounts > $2 million up to $3 million!

            Delegated In House – Loan Amounts up to $2 million.

*Loan CANNOT be locked prior to “scrub” review – Send email to SpecUW@vandykmortgage.com (loan is not fully underwritten until it is submitted into Underwriting)

            Non-Delegated In House – Loan Amounts > $2 million up to $3 million

*Loan CANNOT be locked prior to FULL review – Loan should be submitted into Underwriting

*Upon review AND confirmation loan meets Investor Guidelines by SpecUW, loan will be sent to Board of Directors for review and approval

            Broker – Loan Amounts > $2 million up to $3 million

*Loan CANNOT be locked prior to review – Send email to Secondary and Megan Crowley

*Upon review AND confirmation loan meets Broker Guidelines, loan will be sent to Board of Directors for review and approval

• CE Reminder

It’s that time of year again – Continuing Education (CE) and Renewal time! See the attached email from our Licensing department with details and make sure to complete your CE by your state deadline. If you have already completed your CE/CON-ED, please email Shelby Losinski to let her know you are a rockstar.

• Appraisal Product Update

Due to the lack of interest, we have removed the Hybrid appraisal option from ValueLink. If you see one offered in AUS, please order a full appraisal instead.

• Integrity Check Reminder – Locked Loan Discrepancy

Reminder: When requesting disclosures, you will receive an error if your loan data and lock data do NOT match in the Integrity Check portion of the disclosure request forms. Please see the attached Disclosure Desk Update email for full details.

• Mental Health Tips for Remote Employees

Did you know that remote work has affected how connected employees feel to their colleagues? A OnePoll study revealed:

• 7 in 10 remote workers feel more isolated than when they worked in the office.
• 63% of remote workers feel less engaged with their teams.

Our wonderful HR team has put together the attached 3 Mental Health Tips for Remote Employees – please check it out for strategies to maintain your mental well-being and improve your overall happiness while working remotely. Although you may not work in a physical workplace, remember that you’re not alone. If you have concerns about your mental health, follow up with HR for mental health resources.

Agency Updates

Fannie Mae

Fannie Mae has expanded their policy on Personal Gifts and Gifts of Equity to allow an acceptable donor who is also the seller of the subject property to be an eligible Gift Donor so long as they are not affiliated with another interested party to the transaction.  They have also expanded the policy to allow gift funds to be sourced from an estate of an acceptable donor or a trust established by an acceptable donor.  These changes can be taken advantage of immediately.

While Fannie Mae has expanded their policy regarding gifts, they are tightening up on Trust Income adding the following additional requirements with loan applications dated on and after November 1, 2023:

1. Funds being used for down payment, closing costs, or reserves must be subtracted from the total funds available to determine if the income meets the 3-year continuance.  Note – If the income from the Trust is derived from Rental Income, then the 3-year continuance is not required.
2. Differentiating treatment of variable and fixed Trust payments as follows:

1. 1. Variable – 24-month history of receipt with 2-years of Tax Returns
   2. Fixed – 12-month history of receipt unless the Trust confirms fixed payments, the borrower is not the grantor of the Trust, and at least one payment is received prior to loan closing.

3. Proof of current receipt of the income with a current bank statement or equivalent documentation.
4. If employment-related assets are liquidated and placed in a Trust within 12-months of the application date, compliance with the policies in Employment-Related Assets as Qualifying Income is required.

 

Freddie Mac

Freddie Mac has made clarifications and updates surrounding Student Loan Payments that are included in DTI:

• Effective immediately, an amount greater than zero must be included in the DTI for all student loans, including those in income-driven repayment plans.  When the monthly payment on the credit report is zero, alternate documentation can be provided to determine the amount for inclusion in the monthly DTI ratio (or the .5% of the balance may be used).
• Effective for loans closing on and after January 4, 2024: Freddie Mac will be adding requirements for student loans in income-driven repayment plans where documentation indicates that the borrower must recertify their income and/or that the borrower’s payment will increase prior to or on the first mortgage payment date.  We will advise what specifically these requirements are upon further clarification from our friends at Freddie Mac.

 

Regarding refinance loans with Freddie Mac…

• No Cash-Out – Requirements have been updated concerning the allowable use of proceeds to specify that the payoff of the existing first mortgage may include a deferred balance under a loss mitigation plan and any costs or fees associated with the satisfaction and release of the first mortgage, such as late fees and prepayment penalties.
• Cash-Out – The following updates have been made:
  • When title is held in an LLC or limited partnership – The transfer of title into the Borrower’s name must be completed on or before the Note Date.
  • 12-month seasoning does not apply to Construction Conversion or Manufactured Homes being converted to legally classified real property under State law.

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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 Upcoming Events at VDMC.net.

• 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, September 8 @ 1pm Eastern
• Iron Sharpens Iron: Tuesday, September 19 @ 11am Eastern
• Production Roundtable: Friday, September 22 @ 12:30pm Eastern on National Hobbit Day. MANDATORY for all LPs and TCs

 

FEMA Disaster Inspections
When you place an order for a FEMA Disaster Inspection in ValueLink, please use the product: FEMA DISASTER AREA INSPECTION. Choosing a different product can cause delays and confusion.

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Identifying a Soft Pull
We have noticed an increase in Sarma soft pulls being imported into Encompass, and then attempting to run AUS or pricing. As a reminder, Sarma soft pulls cannot be used for qualification at this time.

The easiest way to identify a soft pull is to look at the top of your report. FNMA# will show INVALID for a soft pull, and the Customer Number will be 7705SP for the soft pull account.

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FHA– Purchase Date Field
On FHA loans, within the FHA Management Screen, this purchase date needs to be the date of the Purchase Contract (not the expiration date of the Contract).

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Howee Reminder

As we come up on Howee’s 2^nd anniversary helping at VDMC.net, we wanted to pass along some best practices.

Howee is only as smart as the information we have added to the system – if you ask a question and don’t get a response, you can click “Open a Ticket” – this will send our teams a notification that knowledge needs to be added to Howee.

Or, if you get an answer and it’s not helpful, click the Thumbs Down icon to send feedback – you can let us know if it was wrong, or not specific enough, or outdated.

Howee gets better when we work together!

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25 Points

August 4, 2023 

• Halcyon – Income Validation in LPA!

AWESOME NEWS!  Once your transcripts are back from Halcyon, they are automatically added to your eFolder and the report ID is saved into the GSE provider form in Encompass.  With this report ID, your Freddie Mac LPA will automatically evaluate the self-employed income and you may obtain income rep & warrants. This means you would NOT be required to submit any additional income information (tax returns, VOEs, etc.) for the borrower/business/income amount being validated. Contact Production Support if you have any questions.

• 4506Cs – Exciting Update

After extensive testing and excellent results with the 8821 and Halcyon, we are delighted to be able to remove all 4506C forms from our initial disclosure packages and deliver them to be signed at closing only.  WINNING!

• Reminder – Freddie Mac Direct Deposit as Income/Employment Validation

If your AccountChek report documents direct deposits, before you order a VOE on your conventional loan, run LPA and see if you get an income validation.  If you do and you can qualify using the income as validated, you do NOT need to obtain any other income or VOE documentation!

AccountChek would need to be pulled and LPA run before any other third party VOEs.  Be sure to ask the borrowers to provide all accounts their pay is deposited into when they are completing the AccountChek request (how many of YOU have your paycheck deposit split into 2 or more bank accounts?).  The AccountChek report cost is around $18 for a 60-day w/ refresh or $21 for a 90-day w/ refresh.

Please see the attached Income Validation Eligibility attachment for the history requirements by income type.

• Chase Community Lending Update

Chase is waiving LLPAs on Community Lending Program loans when the scenario is run with LP AUS. This applies even for borrowers that do not qualify for the First Time Homebuyer LLPA Waiver. Always make sure you are viewing the LP Pricing on all scenarios.

• If a loan is locked as LP, LPA must be run, and you must follow the LPA findings and LP guidelines for that transaction. If a Community Lending loan locked as LP has to be switched to DU, you will receive the DU pricing which will have the LLPAs added back.

• Updated Process for Up Front Fee Collection

Per direction from regulators, we will be retiring the use of the Credit Card Authorization Form for collecting upfront appraisal and/or Condo payments from borrowers. Both ValueLink (appraisals) and The Condo Vault (condos) allow the collection of borrower’s upfront payments via secure link, which can be sent to the borrower upon order submission.

• Funding Review Update: Introducing Clear Skies Funding!

We are pleased to announce we are revamping our funding process to eliminate the need for a funding review prior to funding authorization. This change will allow settlement agents to fund our loans “At Will” if they adhere to our closing instructions/procedures and are willing to assist with any corrections needed post-closing.

This change to Clear Skies Funding will dramatically increase the speed of funding and make for a turbulence-free borrower experience at closing.

At this time, Clear Skies Funding will not be available for bond loans, specialty loan programs, or files with prior to funding conditions. These loans will require a funding review prior to funding authorization. Please contact your assigned closer to confirm your funding options.

• New Broker Partner: Change Wholesale

We are excited to announce that we have added Change Wholesale into the mix of our broker partners. Change offers several non-qm options including a no ratio loan similar to Champions. With the Change No ratio loan, they have some intriguing ARM offerings that Champions does not. Be on the lookout for an upcoming sales call with Change – invitations coming soon!

• Post-Close Reminder
  Reminder: we do sell loans once they are closed, and from time to time the investor buying the loan will condition us for items. If you receive an email after your file closes from Rayna Jenkins, she is looking for assistance in clearing an investor condition. Please help clear these conditions as quickly as possible. Every day that a condition sits costs real dollars in execution.  
• Manufactured Homes in a Condo

We are pleased to announce that we have lifted our restriction preventing financing of Manufactured Homes in a Condo Project for Conventional, FHA, and VA financing!  The condo project MUST be agency approved; no FHA or VA spot approvals will be accepted.  Applicable matrices have been updated and can be found in Howee.  Below, find the appraisal types required for each agency – see the attached Encompass Data Points PDF for details on how to enter this type of property within Encompass.

Agency	Appraisal Report Type	Additional Notes
Conventional Fannie Mae / Freddie Mac	Fannie Mae 1004C / Freddie Mac 70B, Manufactured Home Appraisal Report	When Form 1004C / 70B is utilized for a Manufactured Home located in a Condominium Project the appraiser is required to inspect the project and complete the project information section of Form 1073 / 465, Individual Condominium Unit Appraisal Report, and attach it as an addendum to Form 70B.
FHA		In addition to the requirements for analysis and reporting of the Manufactured Home, the Appraiser must inspect the Condominium Project and provide the project information data as an addendum to the appraisal report. Required data includes all data elements as found in the Project Information Section of Fannie Mae Form 1073/Freddie Mac Form 465.
VA		Details about the condominium development must be provided in the Project Information Section of the condominium appraisal form included within the appraisal report

 

• COMING SOON: Soft Pulls + AUS!

If you missed the announcement on Thursday, our VanDyk team has been looking for a solution to run AUS with a soft pull – and we have found this with Xactus and Freddie Mac. (Sarma may be an option for soft pulls run through Freddie in the future.) This is still a work in progress, and more details and formal training will be provided in the coming weeks and months – but this exciting news should be shared and celebrated! Please see the attached email for full details.

• Quality Control Insight – Trending Defect: Sales Contract Missing or Defective

In recent months we have seen an increase in defects or deficiencies related to the Sales Contract. Below are some of the repeat findings that have been noted during Quality Control reviews.

The most noted defect is that of missing addendums to the sales contract.

• Please include all referenced numbered addendums, exhibits in the sales contract and request all missing addendum pages prior to closing.

1. Addendum correcting buyer’s name.
2. Addendum correcting sales price, increase or decrease.
3. Addendum correcting sales concessions
4. Addendum, Appraisal Gap terms
5. Addendum removing non-borrower
6. Seller Disclosure missing
7. Fully executed Lead Based Paint Disclosure
8. Addendum disclosing relationship between seller and agent

 

Agency Updates

Fannie Mae

The selling guide update isn’t offering much, but the DU update this month is AWESOME! Fannie Mae has listened to us on the confusion with DU’s green checkmark for Value Acceptance in instances that we don’t truly have an appraisal waiver.  As a result, DU will no longer display a green checkmark in the Day 1 Certainty Property Information section when the lender receives the message stating the loan is eligible for value acceptance + property data but that eligibility is contingent upon the submission of property data to the Fannie Mae Property Data API.

DU will continue to display the green checkmark in the Day 1 Certainty Property Information section when able to determine the property data was submitted to API.

Freddie Mac

Applications for IRS Installment Agreement – Effective immediately, where a borrower has applied for an installment agreement with the IRS and it is pending approval, the following requirements must be met:

1. The application for the installment agreement reflecting the amount of taxes owed and requested payment terms must be documented in the mortgage file,
2. The greater of the monthly payment amount requested by the Borrower or the amount of taxes owed divided by 72 must be included in the Borrower’s DTI, and
3. There must be no indication, and no knowledge, that the IRS has filed a Notice of Federal Tax Lien for the taxes owed by the Borrower.

*In addition: Our partnership with Halcyon and Freddie Mac has contributed to advancements in AIM with LPA utilizing Tax Data!!  AIM has been enhanced using tax data from Halcyon to attain R&W income for IRS Form Schedule C.  Way to go VanDyk Team!

USDA Updates

USDA has made updates to the 2023 Income Limits!  Check your eligible areas here https://www.rd.usda.gov/income-limits

 

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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 Upcoming Events at VDMC.net.

• 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, August 11 @ 1pm Eastern
• Iron Sharpens Iron: Tuesday, August 15 @ 11am Eastern
• Production Roundtable: Friday, August 18 @ 3pm Eastern MANDATORY for all LPs and TCs

 

Loan Template Sets: They’re Important!
If you are duplicating a loan, please don’t forget to apply the Loan Template Set. This template contacts the closing cost template, loan program template, and default field data that is needed in order to run AUS, submit the loan to processing/UW, and more.

If we forget to apply that template, adding it later can result in a loss of loan data. See the attached “How To – Duplicate a Loan” and “How To – Apply a Loan Template” for step-by-step instructions.

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Bonus Income
Did you know that when using and breaking out Bonus Income to qualify, we must annualize the YTD Bonus Income UNLESS the employer has documented the frequency of the Bonus Income?

 

25 Points

July 7, 2023

 Mid-Year Look Back

It might be hard to believe, but we are halfway through 2023! Here’s a recap of some of the highlights in the first half of the year:

Launched Halcyon Tax Wallet Total Expert official launch + Office Hours calls for support Additional marketing support tools added for branch + individual LOs Opened up soft pull credit options with 1 click ordering in Simple Nexus Updated brokered loan funding process Borrower Summary – VanDyk improvements Shifted UDM ordering to a manual process Added several additional lenders to our Broker Partners: Quorum FCU, Champions, United Ag… Shannon Schmidt featured on National Mortgage News VDMU Product Certification Program eNotes

Revamped AWESOME recruiting website Launched industry benchmarking survey with Experience.com FHFA DTI Hit was removed FHFA revised LLPAs + AMI LLPA Waivers released URLA Milestone completion rules Launched SpecUW and BrokerSupport email channels Broker Comparison Tool Employee loan referral bonus program Servicing software improvements Winnow – new compliance platform Shifted Compliance & Production Support to a ticketing system for tracking/training purposes VDM Shared Event Calendar Loan Duplication Tool

 

• BombBomb

Have you heard the news? BombBomb, the industry-leading video platform, has integrated with Total Expert in a way that will help you automate the delivery of your personalized messages to clients and referral partners. This new integration has been shown to increase engagement and conversion and we can’t wait for you to give it a try. Want to hear even better news, for the next two months – VanDyk Mortgage is picking up the tab for originators that sign up to join us and complete the assigned activities within BombBomb. Want to learn more? Send an email to Vandykmarketing@vandykmortgage.com and a marketing team member will help you get signed up.

 

• UDM: Auto-On Function Discontinued

The “auto-on” function for UDM was discontinued on 6/26 and the production staff was trained on manual start functions during the June Round Table.  This means any fraud report run on or after 6/26 through Encompass TQL for files with DTI over 40% will need UDM to be manually turned on.  Why the change?  We have identified several files where UDM was turned on too soon (TBD files) or was not needed by the time the loan was submitted in for initial UW (DTI had decreased). This change will result in substantial cost savings for our branches.

• VDMU – Product Certifications

We had a wonderful turn out for our first VDMU Product Certification offering in June for Buy Downs and will be presenting additional courses soon.  Reminder if you are interested in originating or assisting on a Buy Down loan, you will need to complete the course to have access to the program templates in Encompass.  Reach out to ProductionSupport@vandykmortgage.com with questions.

• Bond Locks: Exciting Update!

When a bond loan is locked right before closing, we will no longer require an additional LE to be sent – we can now disclose the lock on the initial CD! This applies to all current bond programs. Should a future program require a different process, the change will be communicated at that time.

• Revised LE Training Session – Next Week

The Origination Compliance Department is holding a Revised LE training session on Wednesday July 12th from 1pm to 2pm EST. The team will go over the process of how to review a loan file and how to process change of circumstances. Attendance is required in order to be given access to issue Revised LE’s to borrower(s). The training invitation, COC policy and how-to guide are attached. We hope to see you there!

• “Other” Loan Features Section  

We have an option to identify if a refinance is standard with Fannie Mae in Encompass now, should the AUS come back with REFI NOW verbiage.  On the ULRA Lender form, click “Other” in the loan features section and identify “Standard LCOR” if your loan is NOT a REFI NOW transaction.  Re-run your AUS and the finding will be updated with the regular refinance conditions.

• Broker Updates
  • NEW BROKER! United Ag Lending: We are excited to announce a new broker partner, United Ag Lending. This new relationship gives us a LOT of new property types to lend on, including barndominiums, off grid properties, properties with large acreage, hobby farms, and even full-time farms. We’ll be hosting training for our sales team in late July or early August – we’ll send invites and more details soon! In the meantime, check out the  Broker Comparison Tool for more info, or the United Ag Lending folder in the Broker Support shared files.
  • REMN 5 Day HELOC: LO Compensation has been reduced to 1.75% on the HELOC. And as a reminder – the HELOC does require an Encompass file and broker approval from Secondary PRIOR to closing.  We will not be able to pay any compensation if this procedure is not followed.
  • GO Mortgage: GO Mortgage suspended their Construction programs effective June 13, 2023. They have been removed as an option from our Broker Comparison Tool and on the Brokered Request Form in Encompass.
• Reverse Mortgage Update

Over the last year, our in-house Reverse Team has worked hard to assist with training and coordinating those needing help originating and closing reverse mortgages under our Principal Agent channel.   The reverse mortgage market has been affected by shifts in the economy like other loan products, and we have determined that our borrowers and LOs will be better served on the broker side.  We will be suspending our in-house reverse team services and terminating our PA relationship with FAR and Longbridge in the coming days and requiring all reverse mortgages to be originated through the broker channel with FAR or Longbridge.  ReverseVision will no longer be available, as each of these lenders allow access to their systems and proposals are prepared online.  To originate a reverse mortgage moving forward, you will follow the broker loan process already in place.  Our comparison tool and contact form will be updated soon to include reverse mortgages and website access details will be provided.

If you have a reverse mortgage currently in process with our in-house reverse team, you should have already been contacted. If you have a loan in the works and need to know how to proceed, please reach out to BrokerSupport@vandykmortgage.com for assistance.

• Got a Second? 😊 Coming Soon…

We have an in-house DSCR program and an in-house non-warrantable condo option.  We even have an in-house bank statement loan.  So why not offer an in-house second mortgage option?  We are excited to announce that coming soon we will be launching an in-house HE Loan product. This will be a closed end 2nd lien that is underwritten by the VanDyk team. With this being a closed end 2nd lien, full comp can be paid out. More to come in the coming days/weeks as we get our ops staff trained and systems enabled for this amazing product.

• Fraud Alert: Be On the Lookout

Fannie Mae published a Fraud Alert regarding misrepresentation of income, identified in the Northern California area – but please be alert for these scenarios. Fannie has uncovered misrepresented child support income using falsified and/or altered public records. The common threads between these loans were: no other source of income, common real estate agents between the transactions, and fabricated bank statements/canceled checks. Please read the attached FNMA Fraud Alert for full details.

• USDA: Previous Audit Findings

We are currently in the process of a USDA Audit as a follow up to our most recent review that took place in December of 2021.

During the period of December 1st, 2021 through December 9th, 2021, an oversight review of origination procedures was performed. As a result of this review, the following deficient findings were identified:

• The reserves entered into GUS were not supported (overstated) by the documentation located in the file.
• The stability of income for all Borrowers was not sufficient and supported. (Primary area of concern – use and calculation of OT Income)
• The originator did not fully document household eligibility income in the loan file. (Primary area of concern – All non-payroll deposits were not adequately explained in file)

Important Reminders:

• HB‐1‐3555 requires lenders to use the lesser of the current or previous months balance as reserves in GUS.
• Please refer to USDA HB-1-3555 Chapter 9: Income Analysis 7 CFR 3555.152 if you have any questions related to income used for qualification
• Please refer to USDA HB-1-3555 Ch.9.3.E(4) 7 CFR 3555.152(b)) https://www.rd.usda.gov/files/3555-1chapter09.pdf

*Did you know? A common misconception is that when we submit a loan to USDA, that they re-underwrite the loan. USDA does not re-underwrite the loan.

• 4506c Update/Halcyon Reminders

If you generate disclosures, please be advised that when new files are created, the default Request for Transcript of Tax form will reflect the 3 years per borrower. In addition, if there is a co-borrower, their forms will need to show on lines 4, 5 and 6.

These fields will also populate the 8821 that we use for Halcyon transcript orders – so make sure if you have a co-borrower, they start on line 4.

All new requests for tax transcripts should be places via the Halcyon Tax Wallet – no one should be ordering with DataVerify any longer.  We plan on removing the 4506Cs from our initial disclosure packages in the coming weeks.  4506Cs will continue to be delivered in all our closing packages.

 

• Upcoming MI Trainings
  Attached is a list of some training courses put on by MGIC and Essent for June/July.  Sessions fill up fast so be sure to register and secure your spot.

 

Agency Updates

Fannie Mae

Fannie Mae published temporary requirements related to significant deferred maintenance and special assessments in 2021 via LL-2021-14.  With the direction of the FHFA, Fannie Mae and Freddie Mac have worked together to update project review requirements to assist with identifying projects that may have issues that result in unsafe conditions, and to promote sustainable homeownership.  Attached (FNMA SEL-2023-06) is a full list of the project review requirements.  This will be implemented for Condo Review submissions on and after Monday, July 17, 2023.

 

Effective with loan applications dated on and after August 1, 2023, for limited cash-out refinances, at least one borrower on the new loan must be a current owner of the subject property (on title) at the time of the initial loan application.  The following exceptions will apply:

1. The borrower acquired the property though an inheritance or was legally awarded the property via a legal settlement or divorce decree, or
2. The property was previously owned by an inter vivos revocable trust and the borrower is the primary beneficiary of the trust.

 

Freddie Mac

Single-wide Manufactured Homes will no longer have a 10-year age restriction for mortgages with Settlement Dates on and after September 11, 2023.  Our internal Freddie Mac matrices have been updated to align with this change.

 

An updated Form 400: Warranty of Completion of Construction has been issued to provide greater clarity on who is required to sign the form attesting to the property’s completion.  This form is attached and has been updated in Howee.

 

As a reminder, AMI updates were made in Loan Product Advisor June 8, 2023.  A recap of LPA’s determination of HomePossible eligibility is attached as part of Freddie Mac Bulletin 2023-13.

*  *  *

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 Upcoming Events at VDMC.net.

• Deal Desk: Loan Save with Dave: Every Tuesday at 1pm Eastern
• Deal Desk: Feature Topic + Loan Save with Dave: Every Thursday at 1pm Eastern
• Revised LE Training with Origination Compliance: Wednesday, June 12 @ 1pm Eastern
• VanDyk Mortgage Newscast: Friday, July 14 @ 1pm Eastern
• Iron Sharpens Iron: Tuesday, July 18 @ 11am Eastern
• Production Roundtable: Tuesday, July 18 @ 3pm Eastern MANDATORY for all LPs and TCs
• Condo Training (Details to Come): Wednesday, July 19 @ 1pm Eastern

 

Freddie Mac LP + Government Loans: Update
LP updated how findings read for FHA/VA loans. The Purchase Eligibility will no longer show as “Ineligible” – instead, it will read “N/A.”

As a reminder: this is okay for government loans!

* * *

Speaking of LPA Findings…

Did you know that your LTV doesn’t have to be 97% to lock your borrower into that Affordable Loan Program?  Keep an eye on your LPA Findings for indicators that your AMI meets HomePossible financing!

* * *

New Construction Reminder

As a reminder for New Construction… Final Appraisal Inspections and Certificates of Occupancy (as required agency) are prior to funding conditions.  It is imperative that any delay in receipt of these be communicated proactively with underwriting and closing to avoid any hold up with the funding of your loan.

* * *

VA Funding Fee – Reminder

For VA loans: don’t forget to open the MI screen to confirm if it’s the borrower’s first use of the VA loan program.

Encompass defaults to subsequent use (and a higher VA Funding Fee)

25 Points

June 2, 2023

• Halcyon

The time has come!  We are pleased to inform that new loan disclosure packages now include the 8821-form needed to obtain transcripts through Halcyon, and training is scheduled for June 14^th.  Processing staff is required to attend this meeting, though anyone who requests tax transcripts should plan to join.  The training will be recorded, and job aids will be made available in Howee for future reference.

We will continue to include 4506Cs in our initial disclosure packages but will be moving to the 8821 and Halcyon for all transcript orders as our default best practice.  During our May Production Round Table, the operations staff was trained on our new procedure for business 4506Cs and how underwriters are reviewing files to ensure closing packages contain accurate 4506Cs to meet investor delivery requirements.  Please direct any questions to ProductionSupport@vandykmortgage.com

• Valuelink: Appraisal Ordering Update

The appraisal department has updated the appraisal ordering system.  The products (report types) have been rearranged for easier selection when creating your order.  All products are in order by the form number (ex: 1004, 1073, 1004C, 1025 etc.)  If you need a rent schedule or operating income statement, you will now select that product separately from the drop down.

You will see less options for your product type.  If your loan is conventional, you will only see conventional report options to select from.

Attached is the updated fee schedule, as there have been some changes and additions.  If you have any questions, please reach out to appraisals@vandykmortgage.com

• Broker Updates
  • REMN 5 Day HELOC: With the increase of loans being sent to REMN, we wanted to remind you to follow the procedure for brokering these loans.  Step 1 – create an Encompass loan file.  Step 2 – apply a broker loan template set.  Step 3 – request approval from Secondary to broker the loan by completing the Brokered Loan Request Form.  We will not be able to pay any compensation if this procedure is not followed.
  • Quorum Credit Union: Effective June 1, 2023, Quorum will offer up to two percent borrower paid broker compensation on the entire line amount, up to $5,000, per transaction. Compensation will be disclosed on the closing statement and will be paid at disbursement. Join us for product training on Tuesday, June 13 at 2pm Eastern!
  • GO Mortgage: Please note that GO Mortgage has eliminated lender paid compensation as an option for locks effective May 17, 2023. We also have a new account executive: Sean Morrow | smorrow@gomortgage.com | 614-595-2505. This has been updated on the Broker Comparison Tool and the Brokered Request Form in Encompass.

• VOE: Reminders + WVOE Cheat Sheet

As you may be aware, VanDyk has been covering the cost of LendersOne/Work Number VOEs for our branches.  We had opted to do this in an effort to promote the Day One income validation option with AUS, in an effort to speed up underwriting turn times and reduce the processing burden for documentation needs when we were experiencing unprecedented volume back in 2020/2021.  For the past several months,  we have reviewed in various trainings and meetings with sales and staff what documentation can be used in lieu of spending money on a third-party verification, and we believe you all have a good understanding of when a third party VOE is really needed.

Beginning with orders placed on June 16^th, VanDyk will begin to pass these fees along to the branch. The WVOE cheat sheet is attached and is available in Howee.  We have also attached the most recent product and pricing schedule from LendersOne as a reference.  If you choose to pass these fees on to your borrower, be sure you complete a COC within 3 days of incurring the charge.

• Lender Credit Safeguard for Unlocked Files

To better assist our branches and prevent unintentional disclosure of lender credits, we will be implementing a safeguard for lender credits at disclosures. Branches will now be able to preset a limit to lender credits that can be disclosed on an unlocked file without prior approval. These limits can be set on a LO or Branch level and will display on Borrower Summary – VDMC Page 2.

• QC Reminders

We would like to remind everyone of the processes and procedures for our pre-funding QC Reviews as well as provide some helpful information to ensure that the loan transaction runs smoothly.

Regular Reviews – 10% Requirements

1. Selected at Conditional Approval/Resubmittal at least 10 business days prior to the Closing Date – Email will go out to all parties and condition will be added
2. UW will move loan to “Approval” and notify QC Auditor after running final AUS file is ready for QC review.  *NOTE – No “Prior to Approval” or “Prior to Doc” conditions may be outstanding.
3. Loan will not be CTC until QC Audit is cleared.

Discretionary Reviews – MCRs / Manual UWs

1. Selected at Conditional Approval (no TBD) at least 10 business days prior to the Closing Date – Email will go out to all parties and condition will be added
2. An Initial QC review will be completed in any of the following milestones – Conditional Approval and/or Resubmittal
3. UW will move loan to “Approval” and notify QC Auditor after running final AUS file is ready for Final QC review.  *NOTE – No “Prior to Approval” or “Prior to Doc” conditions may be outstanding.
4. Loan will not be CTC until QC Audit is cleared.

Please ensure loans selected for pre-closing QC review are resubmitted ahead of the closing date for final review to avoid any delays in meeting the contract date.  QC Review turn times are 24-48 hours so resubmitting your loan 4 business days ahead of the closing date is recommended.

We encourage you to add the following column to your working pipeline views to help monitor and track your QC selected files.  If you need assistance with adding this, please contact Production Support.

Thank you for your continued partnership in getting loans closed!

 

• Process Refresher: Closing Request Form + Lightning Close
  As a reminder, the Closing Request – VDMC form must be completed 48hr prior to the closing of your file. This will communicate to the Closing Department how you would like your file to close and will also assist the closer in preparing the file for closing even if the file not yet CTC.
  If your date of closing changes, please update your Closing Requested Date as soon as possible. This will help keep the closing pipeline accurate and help eliminate any unnecessary communication/emails between the branch and the closing department.

 

Agency Updates

Fannie Mae

• 2023 AMIs will be implemented in DU and the Area Median Income Lookup Tool over the weekend of June 10, 2023, with an effective date of June 12, 2023.  The updated AMIs will apply the 2023 limits to new DU casefiles created on or after June 12.  Casefiles created prior to June 12 will continue to use the 2022 limits.

Freddie Mac

• Freddie Mac has issued the attached industry letter to address recent inquiries related to the reduced availability of Condo Project insurance.  There are no changes to the requirements with the issuance of this letter and is informational only.

*  *  *

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 Upcoming Events at VDMC.net.

• Deal Desk: Loan Save with Dave: Every Tuesday at 1pm Eastern
• Deal Desk: Income Review with Dave: Every Thursday at 1pm Eastern
• VanDyk Mortgage Newscast: Friday, June 9 @ 1pm Eastern
• Quorum – Broker Training: Tuesday, June 13 @ 2pm Eastern
• Halcyon Training – Obtaining Transcripts: Wednesday, June 14 @ 1pm Eastern – MANDATORY for all LPs
• Iron Sharpens Iron: Tuesday, June 20 @ 11am Eastern
• Production Roundtable: Wednesday, May 21 @ 4pm Eastern – National Dog Party Day – MANDATORY for all LPs and TCs

Value Acceptance in AUS
Just a reminder that Value Acceptance in DU and LPA doesn’t necessarily mean you have a formal PIW.  It is imperative you review your findings to confirm the type of appraisal required and don’t just stop at the green checkmark (a PDR, a Hybrid, etc.).
HOT TIP: Running aiUW after AUS is a great double check to ensure you are requesting the correct appraisal type.

* * *

DACA Status: Reminder

As a reminder, borrowers with DACA status are not eligible via VA or Freddie Mac.

* * *

Optimal Blue: AMI LLPA Waiver

As a reminder, OB was updated to support AMI back in December. The monthly income will be pulled from URLA Part 2 (Total Income), annualized and compared against the AMI for the eligible address. Below are the criteria that must be met to have Conventional LLPA’s waived on a file.

1. At least one borrower on the loan is a first-time homebuyer.
2. The total qualifying income is less than or equal to 100% of the AMI, or less than or equal to 120% of the AMI in a designated High-Cost Area.

Please see attached AMI LLPA Waivers PDF for more details.

* * *

Chase Community Lending

Reminder the Chase Community loan is subject to Chase’s overlays and underwriting turn times.  We have requested exceptions to conditions and escalated issues but have yet to receive any special treatment.  We have not been able to get any rush requests through.  At month end the turn times with Chase have been rolling from 48 to 72 hours.

* * *

Expected / Future Employment / Contract Offer
We have seen an influx in post-closing conditions surrounding future / expected income and employment contract situations.  We love getting our borrowers into homes by being able to allow a borrower to close on their home even before a new job or pay increase has begun. Attached is a helpful comparison tool for all agencies that we borrowed from our friends at Mortgage Currentcy to help you best pre-approve and prepare our borrowers and set the right expectations ahead of time.

For Fannie Mae and Freddie Mac where multiple options are available, please include in your UW cover letter which option you are observing so the loan can be accurately conditioned.

In cases where a paystub IS required post-closing, set a calendar reminder to follow up with your borrowers (it’s a nice time to check in with them and see how they’re doing, too).  HINT – This is Fannie Mae Option 1 and Freddie Mac Option 2.

Extra Credit from Fannie Mae for when a Borrower starts new employment within 30 days PRIOR to the Note Date:

25 Points

May 5, 2023

• VanDyk Mortgage: Now Licensed in 48 States + DC!

We are thrilled to announce that our Vermont lender/broker/servicer license has been approved! The only two states we are not licensed in are Hawaii and Missouri, which both require brick-and-mortar offices.

• FHA Gift Donor Deposits

EXCITING UPDATE!  Effective immediately for new all FHA loans (new and those in process), we will no longer require sourcing of large deposits into the Gift Donor account, so long as there is no indication that the deposit has come from an interested party in the transaction.  With this update, we also wanted to clarify that Gift Funds from a donor’s business account are acceptable if the donor is documented to be an owner of the business.

• Coming Soon: Bond Comparison Tool

We have had a wonderful response from everyone who has tried out our broker comparison tool and we are excited to announce the team is now working on a similar tool for available bond programs!  Look forward to details soon!

• Update: Right to Receive Copy of Written Appraisal/Valuation
  Due to updated investor requirements, we will be reinstituting the Notice of the Right to Receive a Copy of the Appraisal disclosure in our initial disclosure packages. This disclosure will be automatically added to your disclosure packages and no further action is required at this time.
• Halcyon
  The IRS has made obtaining transcripts using a 4506 form more difficult and cumbersome to our borrowers and the timeframes involved can be detrimental to a loan closing.  We are thrilled to announce our partnership with Halcyon for obtaining tax records from the IRS via the Tax Wallet.  With the borrower’s Single Sign On (SSO) on the IRS website or a single 8821 form, we will be able to quickly obtain multiple years and/or forms needed.  Compliance will be adding the necessary forms to our initial disclosure packages in the coming days and training will be coordinated for sales and staff soon.
• Investment Property- Business Purpose Disclosure

As of 4/19, investment properties require a Loan Purpose Certification to be signed by borrower(s). This document will allow borrower(s) to confirm they will be using the property for business purposes and thus their loan can be excluded from ATR/QM fee limits.  aiUW has been updated to include a condition for the new business purpose disclosure on all investment properties.
The disclosure is being sent with initials, but can be signed at closing (there are a handful of files where the form was not sent initially). A copy of this disclosure is attached.

• The Cost of Misrep and Repurchase 
  Did you know that ONE repurchased/scratch-and-dent loan can cost the company tens of thousands of dollars? Now is a great time for originators, processors and underwriters to consider whether they are deploying the right tools and strategies to minimize risks in this ever changing market.  Please see the attached Cost of Misrep and Repurchase PDF for more details.
• Broker Partner Updates
  • Union Savings Bank will now charge Credit Cards for all appraisals as soon as the invoice is received.  The Appraisal amount must be disclosed on all LE’s.  Upon closing, USB will issue a $250 lender credit on all Appraisals which will be included on the final closing statement.   There will be no refund or credit for any file that does not close.  Please make sure that the credit card form for the appraisal is from the borrower, as they do not have a way to reimburse the VanDyk on the CD for this charge.
  • Angel Oak: Important reminder: when a borrower signs their Angel Oak disclosures, they will see an option to upload docs as well. Please tell your borrower NOT to upload docs directly to Angel Oak – we will not be able to access them and will need to re-request from the borrower.
  • Quorum Credit Union will be joining us as a full wholesale partner offering 2^nd lien HELOC products.  Our incredible Production Support department is working on the implementation and training plan now, and resources and additional information will be forthcoming.   This will be a max 1% comp to the LO option.

 

• Knock Knock – Refresher Training

We’re excited to roll out an updated Knock Knock soon, which should no longer kick users out of loans or slow them down as it had in the past. We will be hosting a Knock Knock refresher training for everyone who uses Encompass on Tuesday, May 16 at 3pm ET.  We’ll cover how the feature works, best practices and etiquette. Please plan to attend this 15 minute power course – invites coming soon!

• Assumptions
  We are seeing an influx in requests for information regarding Assumptions due to the current market.  If you have a borrower who has contacted you regarding an assumption, please contact our Servicing Team at servicemyloan@vandykmortgage.com to verify the following:
  • We are the servicer,
  • The loan is assumable, and
  • The loan payments are current.

If it is determined that the loan is eligible for an assumption transaction, the Servicing Team will include Lindsey Kuhnle in their confirmation email, and she will assist in next steps based on the type of loan being assumed.  Due to the nature of the assumptions, there is no LO comp that will be paid.

• Soft Pull vs. Credit Refresh
  To clarify jargon:  If you are conditioned for a Soft Pull from underwriting, or if UDM isn’t reporting and you’re given an option for a soft pull instead, what you are being asked for is actually known as a “Refresh Report” in Sarma.  It is important you DO NOT pull a true soft pull with Sarma, but you follow the steps to obtain a “Refresh Report.” If a Soft Pull is obtained and your borrower(s) FICO has gone down, a new tri-merge Credit Report will be required and associated with the AUS.

If you ordered a Sarma soft pull because UDM monitoring was unavailable, please email the invoice for your soft pull to ProductionSupport@vandykmortgage.com. (If you used the Sarma Credit Refresh option, you do not need to email the invoice.)

• URLA Completion Milestone Movement Rule
  We will be rolling out the rules discussed last month in small batch phases weekly to ensure everything is working properly before implementing the next batch.  TCs / Processors and Underwriters have all been trained on this feature.  The first batch phase was implemented on Tuesday 5/2 and seems to be working well.  The next batch phase is scheduled to be implemented on Tuesday 5/9 and will focus on the Asset and Other Liabilities sections of the URLA.  One difference with this phase is the pop-up box feature which will appear if you have assets listed without an institution name, address, account number or phone number:

If you are unable to submit a file to underwriting or move a milestone from conditional approval forward due to missing sections of your URLA, and you feel these sections are completed or should not be required, please contact productionsupport@vandykmortgage.com so the concern can be addressed

• MI Training Availability for May 
  Our MI Partners are offering several training courses in May – the attached document entitled May MI Trainings includes courses we highlighted for Production Round Table.  Registration fills up quickly so if you are interested be sure to secure your place soon.

 

Agency Updates

Fannie Mae

• Fannie Mae has published Alternatives for Tax Filing Documentation!  They must know and understand the delays with the IRS this time of year as well as we do.  For borrowers who have filed an extension, Fannie Mae will now allow proof of e-filing of IRS Form 4868 or payment confirmation (including the confirmation number) of all or part of the estimated income taxes due to support that the borrower has filed an extension.
• In addition, since we are now in a time where a “No Record Found” Tax Transcript would be required where a borrower has filed an extension for 2022, we are able to accept borrower-provided evidence directly from the IRS website.

Freddie Mac

• For Borrowers with IRS Installment Agreements, Freddie Mac is issuing clear guidance on documentation requirements.  When a Borrower is obligated under an IRS Installment Agreement, the following requirements must be met:

1. The monthly payment must be included in the DTI if there are more than 10 payments remaining under the agreement,
2. A copy of the APPROVED Installment Agreement by the IRS verifying the payment terms, including the monthly payment and balance,
3. Verification that the Borrower is not past due under the terms of the Installment Agreement (TIP – ROA Tax Transcripts will show monthly payments OR this can be obtained from the IRS website), AND
4. No indication that the IRS has filed a Notice of Federal Tax Lien for the taxes owed under the installment agreement.

 

• Freddie Mac has updated their Selling Guide to permit the use of reduced real estate taxes, including those exempt from property taxes, in the monthly housing expense!  REMINDER!  If you wish to use a lower tax amount than that indicated on the Tax Bill, include this information when submitting and resubmitting your loans into Underwriting.

 

To use a tax amount that is lower than the current tax rate(s) you must provide the following:

1. *Written documentation of the estimated taxes OR tax exemption from Title/County;
2. *Evidence the reduction will be in effect prior to the next tax bill;
3. *Documents that need to be filed must be completed and signed by appropriate parties and approved by the Underwriter prior to close

*If the items provided are satisfactory, a Closing condition will be added to instruct the Title company to file the appropriate documents with the Taxing Authority.

 

USDA

• While there are no updates directly from Rural Housing, we have done a complete overhaul on our USDA Matrix.  Check out the new and improved USDA Matrix attached!

*  *  *

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 Upcoming Events at VDMC.net.

• Deal Desk: Loan Save with Dave: Every Tuesday/Thursday at 1pm Eastern
• Brokering Loans – The VanDyk Process: Thursday, May 11 @ 2pm Eastern
• VanDyk Mortgage Newscast: Friday, May 12 @ 1pm Eastern
• Iron Sharpens Iron: Tuesday, May 16 at 11am Eastern
• Knock Knock Refresher: Tuesday, May 16 at 3pm Eastern
• Winnow Training: Friday, May 19^th at 2:30pm Eastern
• Production Roundtable: Tuesday, May 23^rd at 3pm Eastern – World Turtle Day

Holiday Reminder: Memorial Day is Monday, May 29. There are no fundings, closings, CDs or disbursements on Monday, and it does not count as a recission day or one of the CD waiting period days. Please prepare accordingly!

 

Reminder: Don’t Run Services on the Co-Mortgagor’s URLA

If you have multiple borrower pairs in Encompass, please confirm you are on the first URLA/borrower pair prior to running any service. Borrowers’ income/liabilities flow up to the first URLA – if you run from a 2^nd or 3^rd borrower pair, it will not read DTI/AMI properly.

* * *

Reminder: No Submission Cutoff!

Did you know that we no longer have a 4pm cutoff for initial submissions or resubmissions?

Since we have implemented the 48-hour SLA (Service Level Agreement) for initial underwriting and re-submission reviews, a cut off time of day no longer applies.

Have no fear!  The SLA is not impacting how the Underwriting Team is setting up their day and most everything is still being reviewed next business day.  We now have a big opportunity to under promise and over deliver as well as control the volume!

VanDyk rocks!

* * *

Simultaneous Loans for Borrowers

If you have more than one loan for the same borrower, the loans MUST come into underwriting together for initial underwrite and resubmittal.
This ensures we are underwriting all loans to the proposed payments/expenses.

* * *

Over-Ordering and Over-Documenting
We are still seeing an overabundance of VOEs and credit supplement orders. We STRONGLY urge you to review your AUS and the documents you already have from your borrower before you even THINK about pulling a VOE.  RUN DU and LP.

If you aren’t using overtime, bonus or commission income, you will most likely only need a paystub and w-2 from the prior year (if that).

If your borrower’s self-employed business has been in existence for 5 or more years, Freddie Mac will only require 1 year tax returns.  Fannie will likely kick back a similar result.

When you run LoanBeam, there is no need to request FHA workbooks on a conventional loan.

Less is more when completing an initial scrub on a loan.  Please be mindful of the money you are spending on a file.

 

25 Points