Author: VanDyk Mortgage

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!

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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/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

March 7, 2023

Sales Fly-In Recap
Sales Fly-In is over, but the memories will last a lifetime.  And the glitter probably will too.  It got in EVERYTHING!  But the sparkle in the eyes of our sales team after hearing from our panelists, hugging their co-workers, celebrating each other’s successes, and learning from one another will last even longer.  A brief overview of some main points is below.  Look forward to more information soon~

• SpecUW: We are pleased to release SpecUW@vandykmortgage.com as a one-stop shop for our specialty in-house loans!  This new email will replace JumboLoanReview@vandykmortgage.com and NonQM@vandykmortgage.com to help streamline communications.  The SpecUW@vandykmortgage.com email may also be used for our Self-Employed + Rental Income Support Team to follow up on status, request an expedited review, or if there is a change with the previously calculated income.

REMINDER – What is available in-house?

• • NonQM – Bank Statement
  • NonQM – DSCR
  • NonQM – Non-Warrantable Condos
  • Jumbo Loans up to $2 million
• Total Expert: We have an exciting update to share with you regarding our office hours schedule. Starting next week, we will be moving Total Expert office hours to 2:30 pm EST. This is an excellent opportunity for you to get your questions answered or learn more about how your peers are utilizing the tool. Keep an eye on your inbox for more information, including a calendar invitation later this week.

• Broker Support + Broker Comparison: We’re happy to announce that BrokerSupport@vandykmortgage.com can be used for your brokered loan questions.

• • Check out our brand new  Broker Comparison Tool to review the programs available and who provides them. We’re working on finding a home for this link at VDMC.net – but until then, feel free to use this link to access the tool.

• SimpleNexus

• • As a reminder, LOs can find the link to share the SimpleNexus app with agents/realtors under Contacts > Partners. We have marketing material available for an agent Lunch & Learn – reach out to Production Support for a copy, we’re happy to pass along!

• Introducing: David Freas
  Those of you who attended the Sales Fly-in had the opportunity to meet our new National Underwriting Manager, David Freas!  David started with VanDyk Mortgage in February and has been learning all things VanDyk behind the scenes for the last month to best support and serve the team.

In his capacity as National Underwriting Manager, David will use his many years of experience in management, underwriting and problem solving to direct the daily needs of the Underwriting Department, which will include maintaining company service standards, loan quality, productivity, knowledge, training, growth and motivation. David will work closely with Lindsey, Conan, and other management to provide recommendations on escalations/exceptions, process and system improvements, as well as continuing the open line of communication between Sales and Underwriting.

• Introducing your Production Support Processing Manager: Mary Spirou

For those who have been with VanDyk for more than a few years, Mary Spirou’s may be a name you know well, and we are happy to announce she will be taking on the new role of Production Support Processing Manager, responsible for the oversight of loans processed under the corporate umbrella and focusing efforts for improving quality of all processing companywide.  We are excited to see her thrive in this new role.  Processors can look forward to hearing from her and more details will be coming soon.  Congratulations Mary!

• #VanDykDifference – Celebrate the Wins!
  This company is AMAZING!!!  Pretty sure we were among the first (maybe THE FIRST) lenders to implement, allow and CLOSE FHA loans with the new lower MIP amounts.  OH YEAH!  A BIG SPECIAL INCREDIBLE KUDOS and THANK YOU to Lindsey Kuhnle, Ryan VanDyk and Brad Chatel for the lightning-fast inter-department company-wide coordination of efforts to provide unparalleled service to our customers!  #WINNING
• Encompass Updates: Borrower Summary – VDMC + SCIF Disclosure
  The Encompass form Borrower Summary – 2021 will be replaced with Borrower Summary – VDMC the morning of Friday, February 24. The changes are detailed in the attached PDF. If you missed our training, check out the recording here.

In addition, the URLA has been updated to include the Language Preference field on URLA Part 1, and the Homeownership Education & Housing Counseling fields on URLA – Lender. These fields populate the Supplemental Consumer Information Form (SCIF), which will be included with disclosures starting on March 1, 2023. SimpleNexus will capture the response to these questions on the online application – any 1003 started in Encompass will need to have these questions completed manually.  A copy of SCIF form is attached.

• In-House DSCR: Submission Standards
  Attached you’ll find a Minimum Standards worksheet for in-house Bayview DSCR submission.  We have been receiving file submissions without the “Business Purpose and Non-Owner Occupancy Affidavit” (attached), which is required to be signed & notarized at the time of submission. Please confirm any Bayview DSCR submissions include this completed form.
• Employee Referrals – Reminder
  We have a company employee referral bonus policy:
  If a VanDyk employee refers an applicant to a position within the Company then the VanDyk employee will receive a bonus of $100 per referral on the following pay period if the below requirements and guidelines are met and followed:
  • New hire specifically names the VanDyk employee (first and last name) in their online application
  • VanDyk employee completes the Employment Referral form (available on VDMC.net) and submits it to the Human Resources Department (hr@vandykmortgage.com) before the applicant’s start date
  • New hire stays employed with VanDyk Mortgage for a minimum of 60 days; and
  • New hire does not have any documented disciplinary issues within the first 60 days of employment.
• Chenoa Updates
  Chenoa Fund has made updates to their Program Guidelines effective as of February 23, 2023.  With these updates, effective as of March 1, 2023, the mortgagee clause has been updated as follows:

CBC Mortgage Agency

C/O DocProbe

1133 Ocean Avenue

Mail stop code: DP7822

Lakewood, NJ 08701

 

Attached are both the updated Lending Guide as well as the CBC Mortgage Agency Announcement for a summary of the guideline updates.

 

• MetroDPA – Master Servicer Change
  Effective with new reservation on March 6th, 2023, all newly reserved Metro DPA loans will be originated under US Bank. US Bank will replace Lakeview as Master servicer on this date.
• AskUW + UW Submissions
  Please remember to include any communication received from AskUW with your UW Cover letter when you submit your file to underwriting for initial review.  This will ensure your underwriter is aware of any special circumstances up front and can escalate questions to their manager if needed.
• Essex/NHF Updates – LLPAs    
  Effective with locks on March 15th, 2023, Essex will be implementing the below Loan Lovel Price Adjusters (LLPA’s).
  • DTI > 50% = -.250
  • 660-679 = -.250
  • 640-659 = -.500
  • 620-639 = -1.000
  • 600-619 = -1.500
• Broker Partner Updates: REMN
  Great news! The REMN HELOC product compensation has increased from 1% to 2%, effective 2/23/23!  As a reminder, this product is not available in all states – see details at the REMN product page here and email Production Support with any questions.
• CALHFA Launch

Starting Monday, March 6th, California Housing Finance Agency (CALHFA) loans can be originated. When originating these loans please make sure that the correct loan program template is selected in Encompass.

To lock, please submit the attached CALHFA lock form to secondary by 4:30pm EST to lock same day. Loans must be conditionally approved and within 15 days of closing to lock.

We will not be offering High Balance, Homestyle, 203k, Energy efficient, or section 184 loans through the CALHFA program.

On the backend the branch will make .25% and must charge the rest in origination. At a minimum you will need to charge 2% in origination plus processing and UW fees. In total we are allowed to charge up to 3% in origination including processing and UW. Collect the max in fees to out to account for limited backend margin. Loans must still comply with ATR/QM fee limits. A $250 funding fee, $75 tax service fee, and $10 flood cert fee must be charged as well.

Please make sure that you verify your P&L can support the pay structure of this program prior to originating.

 

Agency Updates

Fannie Mae

Effective immediately, as Fannie Mae continues down the path of Modernization flexibilities when it comes to valuation, allowable alternatives to a 1004D Final Appraisal Inspection when there are completion or repair requirements (subject-to) in the original appraisal are implemented.  Please find attached both the FNMA Selling Guide Announcement 2023-02, FNMA Selling Guide section B4-1.2-05, Requirements for Verifying Completion and Postponed Improvements, and Attestation Letters for both New/Proposed and Existing Construction.

Note: All Value accepted + PDR and Hybrid appraisals are placed with Clear Capital (via ValueLink/Appraisal Department) which is one of the five approved vendors for these products. (Did you know that 40% of the time, Fannie Mae Hybrid appraisals turn into Value Accepted + PDR at the lower cost of time?)

Freddie Mac

Bulletin 2023-5:  Freddie Mac is expiring the remaining temporary COVID-19 related underwriting requirements.  All Loan Product Advisor feedback messages referencing the temporary COVID-19 related requirements will be expired on May 1, 2023, but can be disregarded effectively immediately.

 

Bulletin 2023-6:  Effective for Mortgages with Settlement Dates on and after July 3, 2023, Non-Occupying borrowers may not be an interested party to the transaction (i.e. builder, seller, real estate agent or broker).

 

IMPORTANT REMINDER!!!  Any conventional Cash-Out Refinance utilizing Freddie Mac’s LPA is subject to a 12-month seasoning with note dates on and after March 7, 2023.

FHA

In February, we brought attention to two BIG items from FHA – Annual MIP Factor updates and 12-Month Positive Rental History impacting AUS findings.  We are updating these to include the following information:

FHA Annual MIP Factors – If you select the “Get MI”, you will need to manually override the Annual MIP Factor (monthly) to the 30 BPS reduced amount.  Encompass has not caught up quite yet with our awesome-ness!

FHA Positive Rental History – Below and attached are the DU Release Notes for Government Loans regarding FHA Case Assignment Dates and how this will impact your DU.  “No” means that the checkbox would NOT be selected at all in our Encompass environment.

 

VA

GREAT NEWS for our VA eligible borrowers!  Effective with loans closing on and after April 7, 2023, VA is reducing most VA Funding Fee charges.  Exhibit A attached includes the current VA Funding Fee charges and Exhibit B includes the updated VA Funding Fee charges.  We are including with this an updated VA Loan Limit Calculator for loans closing on and after April 7, 2023.

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Upcoming Events and Reminders

If you need an invitation to one of the Zoom meetings listed below, please respond to this message or email ProductionSupport@vandykmortgage.com

• Iron Sharpens Iron: Tuesday, March 21^st @ 11am Eastern
• VanDyk Mortgage Newscast: Friday, March 10^th @ 1pm Eastern
• Production Roundtable: Tuesday, March 28^th @ 1pm Eastern (National Respect your Cat Day)

FHA Disputed Derogatory

Did You Know that you MUST manually downgrade Approve/Accept classifications if the borrower has $1000 or more collectively in Disputed Derogatory Credit Accounts UNLESS the Credit is rescored to remove the dispute?

What is defined as derogatory?

1. ANY Non-Medical Collection AND
2. ANY Non-Medical Charge-Off AND
3. ANY Non-Medical account with a late payment in the last 24 months

We have verified with HUD whether the following statements on any disputed tradeline will need to be considered as a part of the $1000 or more:

Dispute Resolved – Customer Disputes After Resolution – YES

Dispute Resolved – Consumer Disputes After Resolution – YES

Dispute Resolved – Customer Disagrees – NO

Dispute Resolved – Consumer Disagrees – NO

IMPORTANT – You cannot supplement a disputed account to avoid manual downgrade.  The Credit Report MUST be rescored.

 

25 Points

February 3, 2023

• Sales Fly-in 

It’s less than a month away – have you finalized your Fly-in plans yet?   TODAY is the deadline to sign up for your preferred breakout sessions.  Please follow this LINK and sign up for your optional sessions by Friday, February 3rd. If you do not sign up by this deadline, breakout sessions will be chosen for you (don’t worry – they are ALL great options)!

 

• LLPAs

Effective with loans locked February 15th and beyond the new Loan Level Price Adjusters (LLPAs) grids will be active in OB. Any loan locked prior to February 15th will need to fund by April 14th to avoid the additional LLPAs applying to the loans. See attached for formal announcement, LLPA comparison Excel, and Fannie Mae LLPAs.

With this change, we will implement a requirement for proof of property taxes (tax cert/property tax bill) to our minimum UW submission standards when there is a subject property.  If a tax certificate is not available or the home is new construction, the loan can be submitted to UW if a 1.5% of appraised value factor is used to calculate property taxes.

• • Brad Chatel will be holding a Teams call on 2/8 at 2:30pm EST to discuss LLPA changes, LLPA waivers for AMI/FTHB, and other LLPA related items.

• Reverse Mortgage Updates    

We are now approved as a Principal Agent with FAR for Reverse Mortgages! The Reverse Team can assist you with questions, scenarios, proposals etc., and we are able to broker HomeSafe to FAR.  With AAG and FAR as our two in-house PA options for reverse mortgages and the ability to offer the conventional HomeSafe loan on the broker side again, we are looking forward to seeing an uptick in volume in the coming months. Contact your VanDyk Mortgage Reverse Team (Sophie Morales, Kristine Kuss, Adam Wilson) with questions or if you need assistance!

• eNotes

We will soon begin including eNotes in our hybrid eClosing packages. An eNote is an electronically signed version of our Note that can be eSigned via Simple Nexus. Including an eNote will not significantly change the hybrid eClose workflow, but will take us one step closer to a full eClosing!

 

• Update on Buydowns   

We have closed a handful of buydown loans and are making a minor adjustment to the closing packages for these loans:

• Per investor requirements, the buydown period payments will no longer be reflected on any documents outside of the buydown agreement and the first payment letter.  Be sure you discuss this with your borrowers to ensure they understand the buydown is temporary and will only be reflected on the initial buydown disclosure and first payment letter.  The closing documents including the CD will not reflect the bought-down rate or payment.

 

• Tennessee Housing Fee Updates

Effective with loans locked on or after March 1: Tennessee Housing is updating their fee structure. TN Housing loans will need to have 1% origination and $1,400 in customary fees charged. On the back end, the branch will make 1% plus the 1% in origination.

• Minimum Standards for Submission to UW: Updated!

Due to the implementation of the LLPA hits for DTIs over 40%, and to prevent any last-minute hiccups (such as needing to redisclose a fee increase), we are adding the Tax Bill/estimate as part of our Minimum Standards for Submission into Underwriting for any loans with a property address.  If you do not have a tax bill or estimate, please use 1.5% of the purchase price or value as a default in Encompass for properties outside of Nevada.  Nevada is defaulted to 1%.  This will be effective for all loans submitted into Underwriting on and after Monday, February 6, 2023.

 

• Condo Review Update

Before you email the Condo Department or submit a request for Condo Review, don’t forget to check the Condo Approval list in Howee to see if your project is already approved.  If the project is on the Fannie approved list, all we need is the master insurance (we don’t even need a questionnaire).  If you email the Condo Department with documentation that is not required for the review and it “opens a can of worms,” we cannot close the can without additional review and documentation.

 

• Broker Loan Compensation

VanDyk has contractual compensatory agreements with the lenders we broker loans to. When locking your loans, you will need to ensure the minimum compensation is met. This document will help you understand the difference between Lender and Borrower paid compensation, the two options given by the lenders in their various pricing engines. Please review Locking a Brokered Loan – Compensation, attached, for more details.

• Income Documentation Updates

For applications dated on or after 1/31/2023, OR loans with a note date on or after 2/15/2023: 2022 W2s OR a Written VOE will be required.

• • Final VOEs are now required prior to CTC:  Updated Final Verbal VOE Cheat Sheet is attached.
    Tax Transcripts Cheat Sheet:  Updated version for 2023 is attached.
  • Income Worksheet – LTK: Updated within Encompass to include tax year 2022.
  • LoanBeam: LoanBeam will begin accepting 2022 tax documents starting Monday, February 6.

We’ve also created a cheat sheet to reference when you’re looking for help calculating income on a file. Please see the attached PDF: Income Calculation Help.

• Borrower Summary 2023 Update

Encompass has some updates slated for release on February 16th which will impact this form.  We will roll out our updated Borrower Summary 2023 Encompass form and hold training sessions after this release date – watch your email for invitations and additional information.

 

• Broker Partner Updates

Champions: Champions is a borrower paid-comp only outlet, but are still going to hit us with an EPO fee if a loan pays off with 180 days of funding. If you are using their Ally No Ratio program, the EPO extends to 360 days from funding. Champions wants to make it clear that their Ally product is not to be used for short term funding, which is the reason for the 360 day timeframe.

Flagstar: Flagstar updated their Doctor Program to include additional licenses/occupations in the medical field. Please see the attached Broker Update email with more details about this program!

Go Mortgage: Go Mortgage, one of our One Time Close Construction outlets, requires all team members to complete a training prior to receiving credentials to log in. To make this easier, we have scheduled two sessions with Go Mortgage that you can join in order to receive your credentials. Invitations were sent on Friday, 2/3 – if you did not receive and would like to attend, please email ProductionSupport@vandykmortgage.com

• SimpleNexus Update: Soft Credit Pulls

The highly anticipated day has arrived!  Once your access is set up, you will be able to obtain a 1-bureau soft pull in Simple Nexus with the click of a button.  Instead of accessing the Sarma website and entering borrower data manually, simply locate your borrower’s application in SN and click the “Soft Credit Check” button. Easy!
Important note: You will not have the ability to pull both soft AND hard credit within SimpleNexus – it is one or the other. Starting today, Production Support will be working through getting access to users, and will be reaching out to your branch manager once this feature is ready for your team.

• Speaking of Soft Pulls…

Please remember: soft pulls are not imported into Encompass or used to run AUS. There is no liability report to be imported. They are not to be used for qualifying. If you have any questions, reach out to Production Support.

• SimpleNexus: Partner Portal

Just a reminder that Loan Officers have a “share” link available to get connected to realtors/agents within SimpleNexus. You can find this link under Contacts > Partners. We attached an overview of what the agent sees on the SimpleNexus side, and you can watch a demo of the Partner portal here. If you have any questions, reach out to Production Support.

 

• UDM Monitoring Update

If you ever run into the issue where your UDM is not monitoring, and you do not have time to wait for it to turn on and start running to meet your ECD, we have an option to provide a no FICO tri-merge “refresh” soft pull within 10 days of closing.  For additional details or assistance, reach out to Production Support.

• Appraisals in Depreciating Markets

For Citi Jumbo loans and NewRez NonQM files, appraisals that come back with a property value showing “declining”/Declining Market, the maximum LTV/CLTV will be reduced by 5%. We anticipate other investors may follow suit – we will pass along updates as we receive them.

• What is Fraud? A Message from Patty Lacey

Mortgage fraud – including occupancy and income fraud – has become more prevalent over time and is a particular concern during an economic recession. Upheaval in housing markets, homeowners facing financial difficulties and unscrupulous persons looking for easy money all contribute to a climate in which mortgage fraud may occur. Current statistics indicate that 1 in every 109 mortgage applications show indications of fraud. For more details, review the “What is Fraud” attachment.

Agency Updates

Fannie Mae

• IMPORTANT! Fannie has followed suit to Freddie Mac!  Cash-Out Seasoning is changing to 12-months for loans with note dates on and after April 1, 2023.  This will be measured by the note date of the existing loan to the note date of the new loan.  We will be implementing this for Note Dates on and after March 27, 2023 to allow a buffer.  (As a Reminder, Freddie Mac Cash-Out Seasoning changes to 12-months for loans with note dates on and after March 7, 2023.)
• For additional Fannie Mae enhancements, see attached Selling Guide FNMA SEL 2023-01.

Freddie Mac

• Freddie Max has expanded the appraisal eligibility requirements to allow desktop appraisals for certain HomePossible Mortgages that are purchase transactions.  Follow your LPA Findings on appraisal requirements – Your aiUnderwriter will help with this, too!

FHA

• FHA has updated the Handbook 4000.1 in multiple areas of Section II – Origination through Post-Closing/Endorsement.  Attached is a quick comparison of the old vs new.  In addition to this, the Form 1004MC (Market Conditions Addendum) has been eliminated to align with the GSEs and VA.  For updated version of the 4000.1 HUD Handbook, visit https://www.hud.gov/sites/dfiles/OCHCO/documents/4000.1hsgh-011823.pdf. All updates are highlighted.

VA

• 2023 Loan Limit Calculator is attached

Upcoming Events and Reminders

If you need an invitation to one of the Zoom meetings listed below, please respond to this message or email ProductionSupport@vandykmortgage.com

• Iron Sharpens Iron: Tuesday, February 21 @ 11am Eastern
• VanDyk Mortgage Newscast: Friday, February 10 @ 1pm Eastern
• Production Roundtable: Tuesday, February 21 @ 2pm Eastern

 

35^th Anniversary Events

March 2 – 4, 2023 | Annual Sales Fly-in

Occupancy Check!

Did you know that investors are being scrupulous about checking on the borrowers after closing to ensure they are occupying the home?

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Employment Validation – Self-Employed – Fannie

Did you know you can receive Self Employment income validation in Fannie Mae’s DU when you have obtained tax transcripts from Dataverify?

Your SE income can also be validated in Freddie Mac’s LPA, if your LoanBeam is run though the Encompass interface.  Awesome!

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Credit Orders & Borrower Solicitation

As many teams are already aware, the amount of solicitation that borrowers receive after their credit is pulled has drastically increased.

It’s important to note that Sarma is not selling leads – brokers and lenders are buying leads from the bureaus. The only way to get out of not getting calls is to have the borrowers opt-out by visiting www.optoutprescreen.com  or calling 888-5OPT-OUT (888-567-8688). It does take about 5 days for this to be set up.
Some teams are taking the approach of doing a 1-bureau soft pull, and then having the borrower opt-out prior to doing the hard pull. Soft pull inquiries cannot be sold.

 

25 Points