Author: VanDyk Mortgage

Topics in the Announcement

  October 21, 2021

• Introducing: Howee!

We are excited to announce the launch of a new resource for all employees: Howee! You may have noticed the chat bubble on VDMC.net – Howee is a chat bot on our home page, available to take questions 24/7. Previously, many of VanDyk’s resources were spread across different sites like Vamba and SeaFile. Howee is going to help us centralize these resources.

Howee can answer questions about any department: “Where is the employee handbook?” “Where is the VA matrix?” “How do I lock a loan?” “What days is corporate closed for holidays?”  Howee makes it easier to find these answers in one place. Our team leaders help to maintain Howee to be sure that the most up-to-date information is available. If there is a question that is unable to be answered, Howee will create a ticket for the appropriate department to respond to. Once the answer is provided, that user will receive an email – and the knowledge will be added to Howee for the next time the question is asked. Howee User Guide – 10.21.21

• INCREASED Loan Limits – Conventional Financing

Effective immediately, VanDyk Mortgage is offering conforming high balance loan amounts up to $625,000. Counties with high cost limits for 2021 that are already greater than $625,000 are not changing. This means your borrowers can buy a $658,000 with only 5% down or a $781,250 home with 20% down.

Notes:

• DU and LPA will return an ineligible result. VDM will accept Approve/Ineligible (DU) and Accept/Ineligible (LPA) due only to the loan amount in excess of the 2021 loan limits.
• Minimum 660 FICO
• A full appraisal is required for the expanded loan limits. Appraisal waivers are not allowed with an ineligible decision. In areas where the loan is within the current 2021 high cost limits, appraisal waivers remain eligible.
• 30 year fixed, 1 unit, Single Family Residence, detached, condos, PUDs and attached PUDs only. 2 – 4 family properties and manufactured homes are not eligible for the expanded high balance program.  Properties located in the state of NY are not eligible.
• At the time of publication: Radian, Enact, Arch, MGIC and Essent are all offering insurance for the expanded loan limits.
• Changes to locks which result in a program change will be treated at current market.  This product will not be eligible for relock when new county limits are released by FHFA.

• TEXT YOUR BORROWERS FROM ENCOMPASS:

Yes, you read this right! We are working on partnering with a vendor which will allow us to do LIVE text messaging with the borrowers directly in Encompass and we are looking for volunteers to help us test the application. Mortgage Messaging sits directly inside the Encompass loan files and will allow any LO, LOA, TC, LP the ability to send texts to and receive replies directly from the Borrowers. There are several use cases where it can help with collecting a last minute document (ex. a photo of the driver’s license), answer a quick question, or send a simple reminder to return a phone call, sign a CD, check an email, etc.

If you are interested in helping us test, please send an email to Production Support and we will set your team up with the application and do a training.

• REMINDER: Suggestion Box!

Do you have an idea to improve our workflow, or a change in Encompass that you would like to see and will also help your colleagues? We want to hear from you! The Suggestions Inbox is LIVE and available to everyone at https://suggestionsbox.vdmc.net/ – Please submit your ideas! Suggestions are reviewed weekly by management and we are looking for suggestions with 5 or more votes. Any suggestion implemented as a business improvement that was upvoted by peers or accepted by management will win a $50 gift card.

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Self-Employed Documentation – Reminder

If we are unable to obtain a VOE for a self-employed borrower, any other form of documentation used for verification (such as invoices, receipts, or bills) must be signed by the borrower.

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Broker Trainings – Recordings

Did you miss a broker product training session? Ask Howee “Where are the broker training recordings?” for access to recent sessions.

Topics in the Announcement

September 16, 2021

• Fannie Mae DU Updates

During the weekend of 9/18/21, DU is releasing an update. Highlights include:

• Use of rent payment history in DU – this new feature will allow us to utilize a positive rent payment history to help increase homeownership opportunities for certain first-time homebuyers when the current rent payment is at least $300 and it can be identified on a 12 month VOA lookback. If you are using AccountChek to verify the borrowers’ assets and they provide information for the account used to pay their rent, this will be identified in DU and used as a positive factor when DU assesses credit risk. The great news here for processing loan files is that when you order the 30/60/90 day VOA through AccountChek, the 12 month look-back will automatically be generated and sent to DU for evaluation. The 12 month look-back sent to DU will only be scanning for regular monthly rental payments, it will not be evaluating or messaging any kind of deposit or other payment history.
• Credit score eligibility in DU – DU will now use an average of the median credit scores to open up eligibility to borrowers with less than a 620 mid FICO, applying with co-borrowers who have higher scores. Interest Rate and MI pricing will still be based on the lowest mid FICO score of the application. Currently, all our MI partners except for National will be opening up MI eligibility for scores below 620. Quoting your MI in Encompass is the most effective way to ensure the vendor you are quoting can also accept the application.

• Condo Review Request: Process Update

In an effort to streamline processes with the Condo Team, we will be changing the method for new order requests. Effective immediately, and mandatory beginning 10/1, all new orders for condo reviews will be placed within Encompass. New fields have been added to the Borrower Summary screen in Encompass under the Subject Property Information section.

To order a Condo Review, the Branch simply needs to input the “Condo Ordered” date, and this will then populate into the Condo team’s new order pipeline view. Condo orders will be worked First In, First Out in the order that they are received. As a reminder, HOA contact information completed in the File Contacts #61 is required to begin a condo review.

• Brokered Loan Updates

We have seen an overwhelming amount of activity with brokered loans. We are updating our procedures to clarify which services you can expect as part of VDM’s mandatory use of a centralized brokered loan point of contact, and which services are optional for a fee. Production Support will be available to assist with education and placement for any loan you are looking to broker. The “Brokered Request Form” has been fully updated with our most recent list of approved investors, along with approved product offerings for each, and important info such as mortgagee clauses, how to register, request disclosures and order appraisals.

Below is a summary of the additional services:

• Non-Optional Services required for all brokered loans:
  • Secondary Approval, Registration and Disclosure
  • Initial submission to the wholesaler
  • QC
• Optional Services:
  • Processing ($595 fee)
  • Appraisal ordering
  • CD Requests
  • Specific Product Training
  • Investor Training

As with all applications, the Branch will still retain the responsibility of sourcing the production and working with the TC/CSA to take a complete application and gather supporting documentation needed to submit a loan for processing/underwriting.

• AllRegs

We are pleased to bring back AllRegs as a guideline resource for you. If you have previously used AllRegs with VDM, then your existing user ID and password will be active. You may also reset your password at the login page if you forgot it.  If you have not previously used AllRegs with VDM, please contact Production Support and we will assist with setting up new user access for you.

AllRegs houses all of the Agency Guides as well as an “Investor Library” where you can access guidelines for PenFed and Chase. We are limited in the products we are selling with PenFed and Chase, so if you need clarification on which section of the guides is pertinent to your own research, please continue to email JumboLoanReview@vandykmortgage.com for help and questions.

• New York MI Override

The Mortgage Insurance options have been updated to account for NY state specific regulations. When this new option is selected, PMI fee rules will deactivate and allow removal of PMI – even if LTV is greater than 80%.

• New York CEMA Refinance

We have added an NY CEMA indicator to the Borrower Summary-2021 to assist with identifying NY CEMA loans.  If you are originating an NY CEMA Refinance, please ensure this is marked appropriately.

This will be a required field to be completed for all NY refinance initial disclosures.

• TX 12-Day Notice – Non-borrowing Spouse/Owner – Floify

We have made recent enhancements to Floify that will allow a non-borrowing Spouse/Party/Owner to receive a copy of the TX 12-Day notice at initial disclosures.

If the below information is completed in File Contacts prior to initial disclosure, Floify will send a link to said borrower to sign the 12-Day notice on all TX Cash Out refinances or primary residences.

PLEASE NOTE: The NBS will only receive a link to this form when the 12-Day Notice is generated (i.e., at initial disclosure), if the NBS contact infomration is not present until after initials, it will be the branches responsibility obtain this signed document at least 12 days prior to closing. Please also verify all time sensitive disclosures with your borrowers to confirm they received the link provided.

• Servicing Operations: Update

Servicing Operations continues to partner with internal customers, external customers and strategic third parties to achieve exemplary customer satisfaction results.  Here are some of the recent and upcoming updates:

• Property Tax: Partnered with Corelogic Residential Tax Solutions to utilize their integrated technology to ensure property taxes are appropriately paid timely.
  • Since go-live in May 2021, we have expended $7.0mm on behalf of 4,778 customers nationwide with nominal issues noted for payment delays.
• Property Insurance: Effective 11/1/2021, we will partner with a private label solution to handle property insurance matters. This transition should be transparent for our customers. We are working to integrate a seamless end-to-end integrated solution to facilitate:
  • Improved customer service responsiveness via phone and/or email
  • Better monitoring of cancellations and forced place insurance requirements
  • Timely payment processing related to 1,300 insurance invoices per month
• Customer Responsiveness: Improved customer phone call responsiveness to 86%, despite receiving 1,100 more calls per month.
  • In Q2, rolled out Make a Payment video to better instruct customers on how to make their payments in the Van Dyk Mortgage internet portal.  This video has been going out to all customers currently through Top of Mind.
  • In Q4, we will be rolling out an automated payment option to accept payments over the phone without needing to speak with a person.
    • Make a Payment call volume is 42% of the monthly volume. By automating these calls, we should be better served to increase responsiveness to 100%.
  • In the past 6 months, we have doubled our staff, created a self-service portal for payoff requests, added a call center phone system, and enhanced our email hierarchy to ensure inquiries get to the right person more quickly.

• Disclosure Desk – VDMC (Coming October 1^st)

We are excited to announce disclosures are getting an upgrade! LE page 0 and LE page 4 will soon be replaced with Disclosure Desk – VDMC for requesting all your disclosures, both LEs and CDs. With a combination of Disclosure Automation and Integrity Check Rules this new form will help streamline the disclosure process and increase both speed and accuracy of borrower disclosures. Disclosure Desk – VDMC will also allow branches to push their own LEs and CDs once fully deployed.

The most noticeable change with Disclosure Desk VDMC is the addition of Integrity Check rules. These rules will require certain data to be complete prior to submitting your file for disclosures, and will dynamically change depending on the loan. Required fields will appear in RED and suggested fields will appear in YELLOW.

Each Integrity Check rule will describe the issue by hovering over the Alert Icon at the top of the section. The below failure is requiring due dates for taxes and HOI since the file is not waiving escrows. It will clear once the aggregate set up is completed.

This form will be rolled out in phases:

• Phase 1 – Initials:
  • Phase 1: A -Full Review – LE Page 0 (2.0) (COMING 10/1/21)
    • All loans will be “Sidelined” for review when requested through Disclosure Desk. Compliance will continue to review ALL initial disclosure requests as they do currently.
  • Phase 1: B – Automated Initials.
    • Branches will be able to push their own disclosures automatically through the Disclosure Desk without an additional review by Compliance. Only select files will be Sidelined for review (i.e., Bond Loans).
  • Phase 2 – COCs:
    • Phase 2: A – Full Review
    • Phase 2: B – Automated COCs.
  • Phase 3 – CDs:
    • Phase 3: A – Full Review
    • Phase 3: B – Automated CDs.

Property Taxes – REMINDER!

We are approaching the months of the year where property taxes are coming due. This is important for us when structuring our LEs and cash to close on files. Many title companies and attorneys’ offices will begin using the estimates for what is due to establish tax proration credits, and we will also need to account for this in our escrow account set-up as well, which in turn effects the final monthly payment we use for qualification.

Please be sure that you are reviewing the most up-to-date estimates in your locality. Also be reminded that in situations where taxes or CDDs are paid for the year in advance, there is a considerable reimbursement due from our Borrowers to the Sellers on purchase transactions. This often times grossly increases cash to close over what we may have estimated – please review your LEs and escrow account set-ups carefully and make sure that your borrowers have the most accurate information up front.

Topics in the Announcement

August 19, 2021

• Jumbo Loans

We have been working to secure Investor outlets for Jumbo loans over the past several months. In April we launched Truist, and since then we have received approvals to sell loans to Chase and Pentagon Federal Credit Union (PenFed). Both Chase and PenFed are priced much more competitively than Truist and will allow us to gain more of the non-conforming market. Beginning today (8/19), you will be able to price loans within CPPE to these Investors. Prior to locking we will require UW approval. As a best practice, once you have a loan identified for either Chase or PenFed please send that loan to JumboLoanReview@vandykmortgage.com, and the UW Team assigned to these loans will review and let you know the minimum documentation that will be needed to review for lock approval. We can underwrite these loans as TBD files and encourage you to submit them prior to origination when possible. We have applications with other Investors pending approval and you will see additional outlets for the Jumbo loans in the coming months.

A few important notes –

• ONLY FIXED RATE PRODUCTS are eligible

CHASE:

• The Chase jumbo product is a manual review and application of Chase’s credit guidelines. Chase only approves a very particular credit profile and this is where we have seen seemingly excellent applications not qualify.
• Due to Chase’s requirements, we will be looking for the following minimum documentation to approve a lock:
  • Credit report for all borrowers
  • Income documentation, including Loan Beam for SE borrowers
  • Assets or as accurately added to Encompass
• Eligibility matrix for the Chase Non-Agency Jumbo product is attached. Please note there are several state-specific restrictions you will want to make sure you apply. We will publish full investor guidelines for Chase as soon as we have companywide access with AllRegs.

PenFed:

• PenFed uses DU as for credit review. You should run DU on all your jumbo files so you will know if PenFed is also an option. You will be looking for Approve/Ineligible findings, and you should specifically review to make sure the Ineligible is due to loan amount and nothing else.
• PenFed is currently a non-delegated underwrite which requires a pre-funding review and turn times are currently 4- 5 days. We expect to be full delegated with PenFed by end of September. Certain documentation is required in the file before we can send to PenFed, they are:
  • DU findings
  • Credit report for all borrowers
  • Income documentation, including Loan Beam for SE borrowers
  • Assets or as accurately added to Encompass
• Eligibility matrix for the PenFed Correspondent product is attached. Full guidelines may be accessed by creating an account here: PenFed Correspondent Guidelines

• Brokered Loan Process

As a reminder: beginning September 1, newly originated brokered loans will all be processed by our in-house brokered loan specialist. Megan Crowley and Maryann Stanco have been working diligently on a file flow that will maintain transparency while delivering great service and insuring VDM compliance standards. A detailed overview of the process is attached. We will have a training call on Friday, 8/27 to go over the full process. We will also provide an overview of our current broker partners and who does what. Watch your inbox for the invitation!

• Credit Report Pull Requirements

There are some important changes being made in Encompass that will allow us as a company to forecast better, improve conversion, and evaluate ROI so that we can make ensure we have the best resources available to you.

Going forward there will be three mandatory fields in Encompass that will be required to complete before the system will allow you to pull credit.

• Lead Status 
  • The lead status field is used to execute our hot, cold and refinance campaigns.  LOs and Branches utilizing these campaigns have seen a marked improvement in conversion over the years.
  • The hot campaign is designed to help you stay in front of the borrower while they are in the home shopping process.
  • The Cold campaign is used in the event that our answer is a “not now” and as a Mortgage professional have counseled them on the necessary steps to be able to get approved for financing down the road.
  • The great thing about both of these campaigns is that while they are automated, there are alerts you can set up in TOM to remind you to make contact beyond the passive emails.  They even include suggested scripts.  You can also access the parts of the hot/cold campaigns that have alerts in the dashboard of your TOM account.
• Lead Category
  • By filling out the lead Category field we will be able to better track ROI on your marketing efforts.  Leads you buy, leads from company website, sales boomerang, your networking groups and so much more.  You will be able to get a quick look at where your business is primarily coming from at a quick glance.  Your RMs will be able to work with you during your monthly 1-2-1s to help you analyze this data and make sure we are keying in on the top sources of your business.
• Purpose of Loan
  • These fields identify whether a borrower is a purchase, refinance etc.
  • By filling out these fields we are better able to forecast our business and make sure that we have the resources available to process, underwrite and close your loans.
  • We have learned over the past 18 months that each loan type has a different conversion percentage as well as a different length of time to close.
  • We will use this data to be able to forecast more precisely.

As we have shared with you before our vision is to create a mortgage company that everyone wants to work at.  That vision has no finish line so we are always looking for ways to improve processes, resources, and systems that will continue to help you grow your business.

• Freddie Mac Refi Possible: Coming Soon

Freddie Mac’s no-cash out offering for low-income Borrowers will be available on submissions to LPA on or after 8/30/21. Please see attached matrix and bulletin for more information.

Technology Update: Encompass Enhancements!

Updates to Previous Enhancements:

Notes

• We have added the ability to assign a person to the file that does not fit into a specific milestone role.  Go to File Contacts and assign them under General Assistant. Then that user will be available to choose to email in Notes.

• Your email signature now is added to the outbound emails so you can email borrowers from Notes as well. Be sure your preferred signature is listed first in your Outlook settings, as this is the signature Notes pulls to email from. If necessary, you may need to rename your preferred signature with an “A” or “1” to get it to be listed first.
• When emailing internal departments like closing and underwriting please add the loan number to the subject line for easy identification.

USPS Address Validation

• No longer brings over the extra 4 digits in the ZIP code – this resolve issues with the pricing engine.

New Features

• Loan Information bars:  We have installed a new panel which allows quick access to information, the loan timeline, and forms bar based on persona.  You can open and close these bars by the carat in the top left corner of Encompass.
• Menu tab for VanDyk:  In the top left of Encompass is a green VanDyk tab for quick access to other resources we use daily.
• Sandbox: 

Entering a loan in the Sandbox mode deactivates the ‘Save’ functionality and allows users to perform actions in Encompass that do not require saving. Users are able to make changes to the loan and work scenarios without having to worry about permanently changing the current structure of the loan.

Finding the Sandbox tool

First, locate your loan in the Pipeline view. Then, you can enter Sandbox Mode in one of the following ways:

1. Right-click the file and choose Enter Loan in Sandbox Mode OR
2. With the Loan selected in the pipeline, click the Pipeline menu at the top and choose Enter Loan in Sandbox Mode.

A confirmation message will be displayed once the loan has been entered while using the Sandbox Mode. The Save Icon is Disabled while in Sandbox Mode.

 Note: Opening the loan in the Sandbox Mode will remove the User’s ability order Services from within Encompass. In addition, Users will not be able to add/remove documents from the eFolder.

How are your emails being received?

Our industry has been incredibly busy over the last year (and then some), and we’re all feeling the pressure. Don’t forget: we are all on the same team!
Take a moment to review your emails before sending them. Think about the tone in which you’re writing – will it be received the way you intend?

For more helpful hints, take a moment to review this article from Psychology Today: Don’t Type at Me Like That! Email and Emotions. See also the attachment: Email Etiquette and Tips.

Voluntary Flood Insurance: Cannot Be Escrowed

A property must be in a flood zone for flood insurance to be included in escrows.

We cannot escrow for flood insurance that was purchased voluntarily by the borrower – it must be paid by the borrower directly.

Hazard Insurance Effective Dates: Must be within Same Month as Closing

HOI effective dates need to be within 10 days of the closing date, except if the Closing Date pushes into the next month.

The HOI policy will have to be updated so the effective date falls within the same month of closing, regardless of the number of days between from the closing date.

Topics in the Announcement

June 17, 2021 

• Lending Department Special Memo

We have had some exciting changes in the Lending Department over the second quarter! We are excited to update you on several additions to our management team and structure of the department. The special memo attached reviews our new managers and team updates!

• New QM Rule: Effective July 1, 2021

Loan with application dates on/after July 1, 2021 will be subject to the revised General QM Rule. The new rule will sunset the 43% DTI limitation and GSE QM patch and will emphasize overall loan cost instead. The revised General QM Rule requires us to take a closer look at APR and loan balance and will be fully integrated into the MAVENT compliance engine and the ATR/QM tools in Encompass. We do not foresee any major interruption with business operations or changes to our workflow.

• Coming July 1: TBD Underwrites for All Loan Types!

As of June 1, we brought back TBD underwrites for manually underwritten government loans, and loans using income from self-employed borrowers. Starting July 1, we will accept TBD submissions for all loan types.

• VA Funding Fee: New Automation in Place

Encompass will now automatically update the VA Funding Fee based on the current loan data. The Funding Fee will adjust automatically upon saving the file based on the LTV, Loan Type (Purchase, Refi, or IRRRL), and First Time Use Status. Please see the attached VA Funding Fee Automation Memo for more details and a how-to.  Note: This will impact all VA files created on or after 6/17/21.

• New Product: Fannie Mae RefiNow

Fannie Mae has introduced a new no-cash out refinance option for low income borrowers. RefiNow is available to borrowers with current income at or below 80% of the AMI, whose current mortgage is backed by Fannie on one-unit, primary residences. With this program, Fannie will provide a $500 credit to the lender if an appraisal was obtained, which gets passed to the borrower. In addition, the 50 bps up-front adverse market refi fee is waived.

Full borrower and loan eligibility details are available in the attached Lender Letter, fact sheet, and at Fannie Mae’s website. Also attached is the VanDyk RefiNow Matrix.

In Compass PPE, you will need to select “RefiNow” under Special Products on the scenario page when pricing your loan. CPPE will not automatically pick up that your loan is RefiNow eligible. Selecting RefiNow as the Special Product will force CPPE to only price the RefiNow product.

Note: Freddie Mac has a similar product coming later this summer (Refi Possible). We will pass along more details in a future Lending Announcement.

• EMD/Other Credits: Reminders

The updated EMD and Additional Credits workflow is being expanded to the Prospects and TBD folders. This change may impact your existing Earnest Money Deposits and Additional Credits currently listed on Borrower Summary – 2021, Itemization, and URLA – Lender Forms.

Please double check that your credits are accurate prior to requesting disclosures.

• Technology Update: Encompass Enhancements!

Encompass is here to stay!  A couple years ago, we had decided to move away from Encompass and go to BlackKnight’s Empower LOS.  Our decision was based on the turmoil Ellie Mae was going through at the time and the lack of focus on the needed infrastructure improvements.  Since then, ICE Mortgage Technologies has purchased Encompass and we see renewed energy in in making the necessary improvements.  We have decided to stay with Encompass and shift our focus on making Encompass the best it can be.

The rest of this year, you will see enhancements to our platform – some subtle, some not so subtle – but all to improve our overall integrity, ease of use, and efficiencies in the system.

This week you may have noticed these changes:

• Home Counselor Plugin – This is not something you will see, but this automatically runs instead of Compliance having to manually run.
  1. Upon entering the borrower’s current address, this plugin will auto-populate the Home Counseling Providers list for disclosure.

• ePrint – All users will see an ePrint icon near the eFolder icon. This will print a screenshot of the input form currently being viewed in the borrower file, excluding the 2015 Itemization (we are working on this one). Users can designate how the document is named and placed in the eFolder.
• eFolder Magnifying Glass – A magnifying glass was added to the eFolder to assist in locating specific document and condition names, instead of having to scroll through the list:

• History FX Plugin – As you work in Encompass and click thru Forms and Tools, a list will be created under the History FX tab. You can use this list to quickly navigate between common forms and tools you have been visiting. You can also use the arrows to go back and forth between the forms recently visited:

• FEMA Look Up – This tool automatically pulls FEMA Disaster Declarations from the FEMA website using the Subject Property State and County. It records all relevant disaster declarations from the past year to the loan file.  It will put the report in the eFolder:

• USPS Look Up – All you need to do is make sure the Subject Property Address is filled out (the ZIP code isn’t even required), click the USPS button or go to the “LTK – USPS Validation” form, and click the “Verify Address” button. This will verify the address with USPS. If you click the “Yes” button in the popup, it will automatically update the Subject Property Address with the valid address USPS uses. Then the report will be placed in the eFolder.  As a reminder, please do not abbreviate the City name in any way.

We have a lot more ideas and projects coming.  If you have any suggestions or if you want to be part of a committee on the consumer portal, LO Connect, origination workflow, or processing workflow, please email Jeanie Nivison.