Topics in the Announcement

• Texas Attorney Submission Procedure Revised

Closing Department will now allow the submission of closing docs to the Texas attorney to take place at the Resubmittal Milestone if the following conditions are met:

1. TRID has been cleared.
2. Closer is Assigned.
3. All required documentation is in the file (See attached TX Attorney Submission List).
4. Closing Date and Loan Amount have been confirmed with all parties.
   1. Attorney Docs are Closing Date and Loan Amount sensitive.  Changes after initial submission will require re-submission and updated attorney docs, which may cause delays.

• Texas and Arizona Bond programs now available

We are pleased to expand our bond programs to include Arizona Industrial Development Authority (AzIDA), and Texas Department of Housing and Community Affairs (TDHCA).

Attached please find the Bond Program Lock Sheets for both programs.   Also attached are Bond Procedures that provide locking instructions, fee requirements , and a link to training.

• TEXAS TDHCA Bond Form – Branch
• Texas Bond Procedures
• AZ Housing Bond Form – Branch
• Arizona Bond Loan Procedures

• URLA Video

Now that everyone has had a chance to look at the new 1003 that is coming the first quarter of 2021, here is a video giving you a glance of how it is going to look and react in Encompass.    https://seafile.vdmc.net/f/607e0ce2c831455cbe10/?dl=1

• Transcript Cheat Sheet Revised

Information added that business tax returns are not required unless they have been amended.   Additionally, tax returns that are amended (personal or business) are not accepted after the application date. 2020 Tax Return and Transcripts Cheat Sheet REV NOV 2020

• COVID-19 Guidance for Self-Employed Borrowers

Based on recent updates from the Agencies, we have revised our COVID-19 guidance for self-employed borrowers as follows – Three (3) months business statements are required with new submissions to underwriting on or after 12/14/2020.  Covid – 19 Guideline Clarification and Product Updates Nov 2020

• Section 184/Native American Trust Land loans are discontinued effective immediately

First Tribal is no longer offering this program.    We apologize for any inconvenience this may cause.

• Insurance Guidelines Revised

USDA allows an exception to their deductible rule of the greater of 1% or $1000 if the insurer does not offer a deductible this low.  This typically will only apply to wind/hail coverage.    Evidence from the insurer they do not offer a lower deductible will be required. Insurance Guidelines NOV 2020

• FEMA Lookup for Disasters

If your DRIVE Report is indicating that you property is within an area that has possibly been declared, you can determine whether or not additional documentation will be needed based on review of FEMA site.   Underwriting does not rely on the DRIVE Report.  FEMA websites are reviewed.   FEMA Address lookup is:  https://www.disasterassistance.gov/get-assistance/address-lookup    FEMA Designated Areas Lookup is:  https://www.fema.gov/disasters/disaster-declarations

If the county is NOT in a declared MAJOR Disaster Area, we will not need any further documentation.

If the county IS in a declared MAJOR Disaster Area and the incident date is BEFORE our appraisal, the appraisal must indicate no damage.  If using PIW and incident date is more than 120 days after our application date, no appraisal or FEMA inspection required.

If the county IS in a declared MAJOR Disaster Area, and the incident date is AFTER the appraisal OR within 120 days of our application date using a (PIW), we will require an appraisal, appraisal update, or FEMA Inspection.

Group Email for Disclosure Approvals

Did you know that you can create a group email for disclosure approvals?

This is a great way to ensure everyone who needs to review a proforma LE/CD is included on the approval email from Compliance/Closing.  This works well for both individual Los as well as larger teams that have the same processors, TCs, or LOAs copied on all their disclosure approvals.

If you are interested, please reach out to IT with a list of recipients you would like included.  This new email address can also be configured to auto populate in LE page 0/4 for all your future disclosures.

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VA loan paying off current VA loan

Unless the closings are back-to-back, the entitlement must be restored prior to closing.  Exception for up to five business days prior to current closing can be made if evidence is provided by the branch the restoration has been requested from VA.

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CAIVRS

We do Not need a CAIVRS for a Non-Credit Qualifying FHA Streamline

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Appraisal Waiver Form

We do not need an appraisal waiver signed for any FHA Streamline – Credit Qualifying or Non-Credit Qualifying

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Encompass 1003 Date Entry Error

We are seeing the 1003 Page 1 regarding income/assets of Borrower’s spouse often answered incorrectly.   We think this is because only a portion of the verbiage is shown in Encompass.   The top box should be marked any time there is more than one borrower on the loan.  The bottom box should only be marked on a Government loan in a Community Property state where we are using the non-borrowing spouse’s liabilities to qualify the borrower.    List of Community Property States are available at:  https://www.investopedia.com/personal-finance/which-states-are-community-property-states/

Topics in the Announcement

• New URLA – Coming Soon!

In Q1 2021, the new URLA Form 1003 will be coming. Please see attached memo and additional PDF previews of the new URLA sections.

• Introduction to the URLA 1.2021
• urla_borrower_information
• urla_additional_borrower
• urla_lender_loan_information
• urla_continuation_sheet
• urla_unmarried_addendum

• Phasing Out UWScenarios Email Address

On November 1, the UWScenarios@vandykmortgage.com email inbox will be phased out in favor of the AskVanDyk.com Escalation form. Questions submitted through the form will provide our underwriting leaders with additional information that can help answer your questions more efficiently. The form will also decrease duplicate tickets/emails. In addition, as we publish more answered questions, many of your inquiries may be solved with a search in AskVanDyk.

As a reminder, all pages and search results in AskVanDyk will have: “Did this answer your question? YES or NO.” Clicking “No” will allow you to escalate your question, as seen below. Please see AskVanDyk Training Guide for additional information.

If you have any questions or need login credentials for AskVanDyk, please email Production Support.  Thank you!

• PMI Companies – Contract Underwriting

In an effort to provide you with the best service and underwriting turn times possible, we now have an opportunity to utilize contract underwriting for our conventional loans with mortgage insurance. ARCH, Radian and Genworth (GE) are each ready to accept files from VDM. If you have any refinances in the pipeline with PMI you can submit directly to Radian, Arch and Genworth. We will begin publishing the MI turn times on our daily e-mails.

Attached are how to guides for the 3 companies we can submit to, as well as instructions for how to work through the milestones in Encompass when submitting to PMI. (Utilizing the MI companies for Contract Underwriting) You will submit files to MI in Encompass and work the loans through CTC from the MI company. Once the loans are CTC with MI the loan will be reviewed by the underwriting team for CTC. Please email Production Support if you have any questions on the procedures or file flow.

Be advised, you will only send files to one of these 3 companies which you have pulled an MI quote for.  You wouldn’t send a file to ARCH with a Radian MI quote, instead Arch to Arch, Radian to Radian and GE to GE

If you have questions or need additional assistance, please contact ProductionSupport@vandykmortgage.com.

• Fannie Mae Selling Announcement SEL-2020-06

Fannie Mae has made updates to the Selling Guide. The attached introduces significant changes in condo guidelines for condotels, provides red flags for recognizing when a project may be leasing their facilities and clarifies that the master association also must own all its own facilities, and adds that pre-litigation activity also must meet Fannie Mae litigation guidance. Updated Condo Full Review Conventional Matrix  is attached, as well as a summary of the changes (Project Standards). 

• Freddie Mac Guide Updates

Freddie Mac has updated their HELOC calculation options and PUD insurance verification requirements – please see attached Freddie Mac Bulletin 2020-38 for details.

• Cash Out Refinance – Credit Score Requirement Update

We are now allowing for cash out refinances to meet the Agency minimum FICO requirements. New Matrices:

• Fannie Mae Fixed Rate and ARM Conventional Matrix October 2020
• Freddie Mac Fixed Rate and ARM Conventional Matrix October 2020

USDA – CAIVRS

You do not need a separate CAIVRS if you have GUS Findings.  We will use the CAIVRS that is included in GUS.

Freddie Mac LPA – Tips!

When running LP with Sarma/Network Credit Services, you will need to enter a branch code on the order screen. You can find your branch code right on your credit report:

LP requires alphanumeric credit reference numbers, so remove the hyphen from your reference number – i.e. BUEBL1234567

Floify Resources

We have compiled several Floify training videos and PDFs at AskVanDyk.com – click here to access.

As a reminder, if you need access to AskVanDyk/Vamba, email Production Support.

Third quarter of 2020 is almost over, and we are feeling the strain of the increased production and COVID restrictions, and from all indications these conditions will continue for a while.  To update you on what we are doing in the Lending department to get back to our normal turn time and service commitments.

Richard Passanante has been promoted to Asst. Chief Operating Officer.  His focus will be the Lending Department starting with staffing, streamlining the process, and improving communication throughout the departments.  Rich is a dedicated hard-working individual and has already shown that he will excel in this role.

Rich has been diligently working on finding underwriters and has seven new underwriters starting in the next two weeks and more offers in process. We are also working on procedures for the option for processors to send your conventional MI deals directly to a few MI companies if you wish, and other options for getting the backlog caught up.

Lindsey will be working on training our underwriting staff on our various products, so we have complete coverage and creating a support system to allow them to improve their workflow and environment.

Ryan has hired people for Closing and Compliance, and we are starting to see improved turn times in those areas.

Your Regional Managers are assisting with recruiting efforts for new underwriters.  If you have any referrals, please send to your RM and they will work with HR and Rich to schedule an interview.  We will continue to use all resources available to us to get these new volume levels to be our new normal and not an exception.

Thank you for your patience and hard work.  We are a team and we rise and fall as a team and we look forward to getting back to the amazing service you have always counted on.

Topics in the Announcement

• Power of Attorney and Trust Approvals

Effective immediately, please email POA.Trust@vandykmortgage.com with requests for approval of Power of Attorneys and Trusts.   Please allow at least 24 hours for review.   Reminder, we need an executed Hardship Letter and copy of the Power Of Attorney for POA approvals, and need a signed Attorney Opinion Letter for Trust Approvals.   Attached are the POA checklist and the Closing in a Trust checklist to reference VanDyk’s requirements: POWER OF ATTORNEY APPROVAL CHECKLIST revised August 10 2016 | CLOSING IN A TRUST (1)

• Work Number VOE’s are now being obtained through Equifax

Guidance is attached showing how to order these within Encompass.   Please do not order using The Work Number website.   VanDyk Corporate only pays for VOE’s that are ordered through Encompass.   Encompass The Work Number Guidance Sept 2020

• USDA Rural Development fee structure for coming year published

The fees for the coming year have remained unchanged at 1% upfront guarantee fee and .35% annual fee for both purchase and refinance transactions.   See also attached regarding yearly lapse in funding.   The lapse will have no effect on our loan flow or procedures. USDA Fees Fiscal year Oct 2020 through Oct 2021

• Flood Certificates are now to be obtained from Corelogic

Please begin choosing Corelogic for your Flood Certificates.   Effective October 1, 2020, Corelogic will be the only flood certificate company available to be chosen in Encompass.

• Reminders From Servicing

The Servicing Department would like to remind everyone of the attached Recast Policy, and the attached PMI Cancellation Requirements as we have had a number of inquiries of recent: Recast Policy and Guidelines (external) | PMI Cancellation and Removal Policy and Guidelines (External)

Also, VanDyk Mortgage Corporation does not offer any form of bi-weekly payment options.  Any third party providers who offer this service are not affiliated, and we ask that no one actively directs a borrower to enroll in these services.

• Appraisals imported into Encompass from Mercury

Changes have been made to streamline the import process of appraisals from Mercury to Encompass.  There is no longer a need to exclude any information.   Leave all included items checked as-is.     Some fields now show greyed out.

• USDA Chapter 6

Attached please find USDA’s changes regarding eligible loans purposes. RD-GRH-AdvanceCopyChapter6

Compliance and Closing Turn Time/Cutoffs:

1. Initials:
   1. 24 hours from submission of LE page 0

2. Redisclosures:
   1. 24 hours from submission of LE page 4 – Either LE or CD.

3. TRID Reviews:
   1. 24hrs from TRID Ready date.
      1. Resub+ will be given priority – Will accommodate same day TRID if submitted prior to 2pm EST and rush is requested.
      2. Files worked max of 10 calendar days from ECD.

4. Initial CD:
   1. CDs issuance depends on milestone.
      1. Resub+
         1. A closer will be assigned and will issue your CD within 24-48hrs of clearing TRID depending on volume and ECD.
      2. Cond. Approval
         4. Branch must request an unbalanced CD through LE page 4. Compliance will issue your CD within 24-48hrs depending on volume and ECD.

5. Closing Package – CTC:
   1. Must be CTC by 3pm 48hrs prior to closing – ECD will be move out once cutoff is missed.
   2. Rush Closings:
      1. Rush closings are becoming increasingly difficult to accommodate and if the file misses the CTC cutoff it is likely your ECD will need to be extended. However, if a rush is needed a rush request will be reviewed using the following criteria:
         1. All rushes must be approved by management (Monique Garcia). The closer on the file cannot authorize a rush closing, it must go through management.
         2. Purchases will be given priority over refinances, however even purchase rushes cannot be guaranteed.

• Bond Loans cannot be rushed due to their complexity to close.

End of Month Closing Conditions:

• 9/30 – Reserved for purchases and non-rescindable refinances only.
• Saturday Closings – 9/26 will be open for closing primary refinances if your file is CTC by 8am Friday the 25th.

NEXT Month – October Closing Conditions:

• Saturday Closings – 10/24 will be open for closing primary refinances if your file is CTC by 8am Friday the 10/23.
• 10/30 – Reserved for purchases and non-rescindable refinances only.

Title Company Searches in Encompass – Custom View

Attached please find instructions on how to create and save a custom view to find VanDyk’s approved title companies.   Once created, use of this view will save you a great deal of time and effort.

These instructions can also be used for creating custom views for any business file category:
Encompass Approved Title Company Search Tutorial Sept 2020

IRS TAX TRANSCRIPTS and AMENDED RETURNS

Tax transcript orders should be placed as soon as possible at the start of the process to prevent delays with Underwriting Final Approval.  If a borrower has amended any return used for qualification, tax transcripts will always be required to reflect the amendment.  Amended returns are not accepted if the amendment takes place after loan application.  A borrower cannot amend tax returns to qualify.