VanDyk Mortgage News: March 7, 2023

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~

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.
    • 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 – 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 and submits it to the Human Resources Department ( 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.


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.



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.

*  *  *

Upcoming Events and Reminders

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

  • Iron Sharpens Iron: Tuesday, March 21st @ 11am Eastern
  • VanDyk Mortgage Newscast: Friday, March 10th @ 1pm Eastern
  • Production Roundtable: Tuesday, March 28th @ 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.


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VanDyk Mortgage News: February 3, 2023

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

  • 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 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 All updates are highlighted.


  • 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

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


35th 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?


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!


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  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.


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VanDyk Mortgage News: January 6, 2023

January 6, 2023

  • Howee’s Helpful Tips 

Have you seen Lindsey Kuhnle’s DYK posts in the VanDyk Happenings Facebook group yet? If you missed them, we’ve created a Howee’s Helpful Tips blog category at to collect all of the knowledge that is shared. Check it out!

  • Brokered Loans Update and Reminders:

QC Review Process:  Effective Jan 1, non-government brokered loans will be reviewed by Production Support for completeness.  The QC department will continue to review government loans.  Files should be moved to the resubmittal milestone only when the loan has closed and funded, and the entire closing package with all loan documents, approvals and a copy of the broker check have been uploaded to the Encompass file.

REMN HELOC:  Although the borrower completes the application for this loan with REMN via their website, VanDyk requires an Encompass file and secondary approval to broker like any other loan.  Be sure to follow the normal procedure to obtain approval to broker this product or any other loan.

QUESTIONS, SUPPORT & TRAINING:  As a reminder, please reach out to Production Support for any broker questions – we are also able to provide training at a branch level for specific broker processes.

  • Jumbo Loan Review Updates    

With aggressive interest rates, we have determined there is a need for a more relaxed review to lock our JUMBO customers into their interest rate more quickly.  Upon request to the JUMBO Team for approval to lock, we will be doing a scrub to verify that the loan appears to meet the specific jumbo investors requirements.  This will not be a full review or approval of the loan file, only the approval to lock, and any areas of concerns will be expressed.  The loan will not be fully underwritten until it is submitted into underwriting.
As a reminder, we must underwrite to our specific JUMBO investors guidelines and overlays.


  • Commission Earned Policy Reminder

With many economists predicting that we could see a refinance market in the next 8-16 months, we wanted to remind every one of our commissions earned policy (Early Payoff). Please see the attached for a refresher on the policy. We do have a pipeline view in Encompass called “Recapture Pipeline” that is available for LOs to search loans and get an estimate for when a particular loan is in the clear.  If you have a situation where you might be close on recapture or just want a further look at the scenario, reach out to secondary and they can dive deeper into the exact loan scenario and investor policies to ensure we have an exact date.

  • Chenoa Fund Updates  

Chenoa has made the following update, effective January 1, 2023. Matrix and updated guide are attached.

  • Payment Shock Requirements: For Borrowers exceeding the 125% payment shock or where the Borrower has no prior housing expense, the new maximum DTI is 45%.  Sections 5.11 DTI Requirements, 5.12 Payment Shock Requirements, and 6 Manufactured Housing were impacted by this update.
  • AMI/LLPA Announcement from Secondary

On December 23rd Secondary put out the attached “FHFA Updates in Optimal Blue.” If you missed it, please read! If a borrower meets the below two requirements on a Conventional transaction they are eligible for no LLPA’s.

  • At least one borrower on the loan is a first-time homebuyer.
  • 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.


  • MSHDA – Tax Return Update

Effective January 1, 2023, MSHDA will require federal returns for tax years 2020, 2021 and 2022 on all new MCC submissions. The completed MCC-004 Income Tax Affidavit is to be submitted in place of the 2022 federal tax return up until February 15, 2023.  After February 15, 2023, the 2022 federal tax return is required to be submitted with every MCC file before a Commitment can be issued. This applies only to the Mortgage Credit Certificate (MCC) program.

  • Manufactured Home – Title Order Form    

A new Title Request Form for Manufactured Homes is now available in Encompass. This form gives additional guidance to Title Companies on what will be needed for us to close on a manufactured home. Please use this form for all title orders on Manufactured Homes.

  • Borrower Summary – Form Update to 2023!

The Encompass input form Borrower Summary – 2021 will soon be replaced with an updated version, Borrower Summary – 2023. It will feature new fields for the Credits and Adjustments as well as an updated second input form (Page 2) for disclosure questions and fee rule overrides.

The form update will effective 1/16/23. Trainings on the new form will be provided before and after the change.

  • New DPA Coming Soon: CALHFA

We have been approved with CALHFA but must undergo extensive training before they will allow us to originate. If you plan to originate CALHFA loans, please register for Part 1 and 2 of Sales and Ops training using the links below. We will issue another announcement once we are fully ready for launch.

  • Market Update: Brad Chatel

Don’t miss the Newscast on Friday, 1/13 – Brad, our VP of Secondary and Capital Markets, will be joining us to recap his 2022 year-end commentary. He’ll also share any updates that have arisen since. If you missed the commentary, find the email attached!


Agency Updates

  • VA: While this isn’t an update from VA, we wanted to pass along a reminder to log in to your LGY Hub account at least once every 90 calendar days.  Starting January 10, 2023 and onward, all LGY Hub user accounts will be deactivated if they have been inactive more than 90 days.

Upcoming Events and Reminders

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

  • Iron Sharpens Iron: Tuesday, January 17 @ 11am Eastern
  • VanDyk Mortgage Newscast: Friday, January 13 @ 1pm Eastern
  • Production Roundtable: Tuesday, January 24 @ 2pm Eastern


35th Anniversary Events

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

VDM Newscast Dates

Just a reminder that the VanDyk Mortgage Newscast will be held on the second Friday of each month for 2023.

Invitations were sent in December, please let Production Support know if you need it re-sent!


Reminder: Self-Employment and Rental Income Support Team

As a reminder, the Self-Employment / Rental Income Support Team is not designated for JUMBO loans.
Please continue to submit all jumbo loans through the Jumbo Loan Review Team at
Instructions for requesting support are attached.


Video Portal

Did you miss an Iron Sharpens Iron or a Newscast? Don’t worry – those recordings are available on VDMTube here!


Product Matrices

You can find our VanDyk Mortgage product matrices by asking Howee, or by going directly to the Shared Files – in the Product Matrices folder.


Sales Fly-In – RSVP Reminder

Our 2023 Sales Fly-In is March 2nd – March 4th! If you already RSVP’d, thank you! If you haven’t and plan on attending, what are you waiting for?!

RSVP today:

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VanDyk Mortgage News: December 15, 2022

December 15, 2022

  • 2023 Loan Limits Update
    FHA Loan limits updated to $472,030. Please keep in mind that the maximum loan limit is determined by the effective date of your case number, and the new loan limits can only be used for case number assignments on or after 1/1/2023. If you have an FHA loan already in process, and the case number has already been assigned, you cannot increase the loan amount to the new limits.

Conventional loan limits updated to $726,200. DU and LPA are already updated to accept these values. Loans can close immediately with these values but the lock must be good through 1/2/2023.

Optimal Blue is updated to accept the new loan limits for both FHA and Conventional immediately.


  • Chase Community Lending: Update 

Last month we announced the new Chase Community Lending program. To clarify additional details: the loan won’t be sent to Chase for underwriting until it’s been locked. In addition, the loan program won’t reflect as Chase Community Lending until the lock has been confirmed, so it is IMPERATIVE that your intention to submit the file to Chase be communicated to your processor.  Your Processor will need to specify on their UW Cover Letter the loan is being sent to Chase (if it’s not already locked at initial UW). As long as this is communicated, one of our amazing underwriters will pre-scrub the file against the Chase guidelines to catch any potential issues up front.

  • Appraisal Orders: Chase has a naughty list and will not accept appraisals completed by someone who has been included.  If the appraisal is ordered prior to lock, please add a comment to the appraisal order that the loan is being sent to Chase so the appraisal department can assign the order to someone who is acceptable to the lender
  • Overlays: There are additional overlays for this program, please review here (they are also available by asking Howee about Chase Community Lending)


  • New Jumbo Outlet: Citi Bank    

We are pleased to add Citi Bank as a Jumbo outlet. Attached please find our updated Jumbo Comparison sheet and some facts about the Citi Program. These jumbo loans can now be priced in Optimal Blue. Please remember to email to have our Jumbo team review these loans prior to locking.


  • Kentucky Housing 
    Starting Monday, December 19th, Kentucky Housing loans can be originated. When originating these loans, please make sure that the correct loan program template is selected in Encompass.

In order to lock, please review the KHC Reservation guide attached. Also attached is the KHC bond request form that needs to be submitted to secondary by 4:30pm EST to lock same day.

Normal and customary fees can be charged on the loan (Processing and UW). A $175 admin fee and $595 UW fee must be charged to the customer as these are all program fees.  The 2nd mortgage must have fees of $50 doc prep fee and $80 recording.

On the backend, the branch will make the .25% and must charge 1.5% in origination for FHA, Conventional, and USDA loans. On VA Loans no origination can be charged, and the branch will make 1.75% on the backend. Please make sure that you verify your P&L can support the pay structure of this program prior to originating.


  • Compliance/Closing Updates: Disclosures, eClose, and Fundings.
    • Compliance – We are continuing to roll out Initial Disclosures to our branches. We happy to announce we will begin Beta Testing COCs and Initial CDs as early as next week.
    • Closing
      • Closing Request VDMC: – Please remember to complete this form when a closing date is known. This form communicates how you would like your file to close and will expedite the closing of your loan. Reminder, you do NOT have to be CTC!
      • Hybrids: – Communication is Key! Please confirm with all parties they are aware you plan to close as Hybrid (settlement agent included).
      • Funding: – Closers and Funders are working together to offer the best funding experience possible!
        • Hybrids – Reduced Funding Checklist.
        • Traditional – Full Package Review.


  • Post-Closing Quality Control – How can you help?

With the recent changes to the 4506C requirements, we are seeing more frequent rejections from the IRS on our transcript orders.  If you can verify the most recent tax filing address and fill in your 4506C to match this will greatly help reduce those rejections.  See the attached QC Update PDF for additional details and thank you for your help!


  • SimpleNexus – Partner Landing Page    

We are excited about the improved feature for your Partners to create their own SN account!    Our awesome Marketing department is working diligently on adding your individual LO Landing page links to your existing accounts.

Find the link to share with your partners under Contacts > Partners. Remember: If the agent is also a borrower, make sure they use a different email than the one they used for their personal loan!

  • Income Worksheet: Updated  

In Encompass, the Income Worksheet – LTK form has been updated to a newer version. An example of the worksheet is attached.


  • Company HELOC Commission Policy 

We have revised our 2nd mortgage HELOC policy to allow individual LO compensation.  Closed end fixed rate seconds are still not eligible for LO comp, however, the open-ended stand-alone HELOC loans are now eligible.  If you utilize the company’s processing team, the fee is reduced from $695 to $495 for these stand-alone 2nds.  Additional details are attached.


  • Broker Partner Updates

New Partner- REMN:  We are pleased to offer a new broker partnership with REMN and are looking forward to their EXCELLENT LO and Borrower hand-holding experience with the 203k and HomeStyle product offerings.  REMN will provide 203H options as well.  Additionally, we are DELIGHTED to announce that REMN has a stand-alone HELOC 5-day close product.  Production Support will coordinate training, so watch for the invitations coming soon!

Union Savings Bank – RESTRICTED: We continue to experience hardships with Union Savings and have determined a restriction in business operations is necessary.  With the constant revision in how they conduct themselves (from the initial disclosure process through underwriting submission and changing loan approval terms and decision last minute) Effective Monday, 12/19/22, Union Savings Bank brokered loan requests will include a more in-depth review process to ensure the loan officer understands the risk involved.

    • As a point of interest, Union Savings Bank has clarified their lending footprint and confirmed full LTVs are only available in OH, KY, IN, PA, and FL.  Other states are subject to reduced LTV and/or other restrictions.  There are some areas in MI, MN, and IL where the full LTV is available.  Union Savings does not lend in TX, AZ, CO, or NM.  Updated Submission, Closing and other information for this lender has been uploaded to Howee
  • Pipelines Update

Pipeline Management: With the start of the new year upon us, we will be rolling out new Pipeline Management policies. As you may be aware, we are looking to have clean and accurate pipelines moving forward. This will assist us in not only accurately forecasting our internal revenue, but also ensure we are staffed properly to meet the necessary accommodations regarding closings and other operational procedures. In addition, we will be providing extra support regarding the loan process, should a loan stall for a myriad of circumstances we will be reaching out to see if the issue can be elevated to a senior manager to see if a solution can be found. Our ultimate goal is to close as many loans as possible!

ECOA: Changes are coming to the LSN/Notice of Incompleteness procedure. This will be a more automated process to ensure our compliance and fulfillment, though it won’t be intrusive to the way we do business. We are hosting a training for this new process next week – watch your inbox for an invitation!


  • UW Submission Standards: Reminder  

As a reminder, the updated Underwriting Standards Checklist should be utilized for your new submissions. This new checklist includes the new requirements for running aiUW on all files and the use of the Underwriting Cover Letter. The updated standards are attached. If you missed the recent aiUW training call, you can review it here


  • Reminder: Brokered Loan Folder  

Effective December 1, a new pipeline folder is being utilized to house our Brokered Loans. This folder will help ensure better file flow through underwriting and help us to efficiently monitor our in-house closings for the month. Once your file is approved for brokering, Production Support will move the file into the new Brokered Loans folder from Prospects. Upon completion, the file will be moved from the Brokered Loans folder into the Closed Loan folder.


Agency Updates

  • Fannie Mae Highlights
  1. Removal of 10 Year Age Limit on Single-Wide Manufactured Homes – Single-Wide Manufactured Homes are now eligible so long as the unit was manufactured on or after June 15, 1976, which aligns with the age limit of other manufactured home products.  Updated Matrix Attached.
  2. Temporary Leave Income – Mandatory Leave initiated by an employer, such as a furlough, is not considered temporary leave.  In addition, Fannie Mae has clarified that income resulting from a furlough, layoff, or other employer-initiated action is not eligible to be used as qualifying income unless it is associated with seasonal employment.
  3. Use of Business Assets – If self-employment income is not being used to qualify for the loan but the borrower is using assets from their business towards down payment, closing costs, or reserves, there is no requirement to perform a cash-flow analysis.  We must however verify that the borrower listed as an owner of the account and the account is verified in accordance with Selling Guide B3-4.2-01, Verification of Deposits and Assets.
  4. Gift Letters – Gift Letters can now show the actual or the maximum dollar amount of the gift.  In addition, the Gift Letter no longer requires the specified date the funds were transferred.
  5. Property, flood, and project insurance updates – Due to the extensive updates, please review attached Selling Guide Announcement indicating the sections of the Fannie Mae Selling Guide that have been impacted.
  • Freddie Mac Highlights
  1. Freddie Mac Bulletin 2022-24 – Update to ACE+PDR requirements that were announced in Bulleting 2022-13 in June of 2022.
  2. Freddie Mac Bulletin 2022-25
    1. IMPORTANT!!!  COMING ON AND AFTER MARCH 7, 2023 – Cash-Out Seasoning is being updated to at least 12 months between the Note Date of the Mortgage being refinanced and the Note Date of the new cash-out refinance Mortgage).  Excluded from this guidance are special purpose cash-out refinance Mortgages that meet the requirements in Section 4301.6 or if the First Lien Mortgage being refinance is a HELOC.
    2. Freddie Mac has now included in their definition of “Related Person” to include unrelated individuals with close, family-like ties to the Borrower.  This expands on eligible gift donors as well as flexibilities to other guide sections.
    3. Gift Funds – In addition to expanding on the definition of “Related Persons”, Freddie Mac is now allowing a trust established by a Related Person and an estate of a Related Person to be eligible donors of gifted funds.
    4. Contingent Liabilities – Property-related expenses such as taxes, insurance, HOA dues, etc, may now be excluded from the DTI ratio when documentation in the Mortgage file confirms that a party other than the Borrower has been making timely payments for the most recent 12 months and the party making the payments is not an interested party to the transaction.
    5. Temporary Leave Income – Freddie Mac is aligning with Fannie Mae to state that employer-initiated actions such as furloughs and layoffs are not considered temporary leave where income can be considered.
  • FHA: ML 2022-18 – FHA is now accepting Private Flood Insurance effective December 21, 2022!  Please review the attached Mortgagee Letter for requirements that will be updated in the 4000.1 Handbook.


  • VA: GREAT NEWS!!!  Effective as of November 26, 2022, an ongoing maintenance agreement from an HOA of a joint maintenance agreement from the owners of properties accessed by a private road or shared driveway is no longer required.  The following actions will be taken on these properties:
    • A recorded permanent easement or recorded right-of-way from the property to a public road is still required to be placed in the loan file.
    • Item 5 of the Notice of Value (NOV) will no longer be marked as item 5 of the NOV since it no longer applies.
  • USDA

USDA has announced UPCOMING revisions to Chapters 9 and 15 of the USDA Handbook 3555.  These are anticipated to be implemented in January 2023.  The updates are extensive and EXCITING so we have attached the full Procedure Notice as well as a much clearer Highlight.  Our favorite update is regarding sourcing deposits:  We will no longer be required to source and explain EVERY non-payroll deposit.  USDA is loosening up the requirement to only need to source recurring deposits as well as non-recurring deposits greater than $1,000.

Upcoming Events and Reminders

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

  • Iron Sharpens Iron: Tuesday, December 20 @ 11am Eastern
  • VanDyk Mortgage Newscast: Friday, December 16 @ 1:30pm Eastern
  • Production Roundtable: Thursday, December 22 @ 3pm Eastern (You don’t want to miss it! Teaser: “Your mom goes to college…”)
  • ECOA Update Training: Monday, December 19 @ 2pm Eastern (Invites will be emailed Friday)


Idaho Housing and Finance Association: Homebuyer Education

Please note that Idaho HFA does not accept Fannie Mae HomeView for homebuyer education – they will accept the Finally Home course.


4506-C Form Changes

As a reminder: As we receive feedback from DataVerify, Encompass will be updated to accommodate changes that come across for the 4506-C form.


TBDs/Files on Hold – Move your ECDs!

Reminder: for any TBD or file on hold with an ECD of 12/31/22 in Encompass, please push it to 12/31/2023. IT has added in the first payment dates in Encompass through July 2024


Combining Buydown Programs and DPA

Please be advised that buydown programs are unable to be combined with certain DPAs. For example, Essex DPA will not allow a buydown.
Check with your underwriter or to confirm.


Reminder-Appraisal Delivery – Just need one

FYI, we need appraisal delivery confirmation from only ONE person involved in the transaction. If the subject is a primary residence, the appraisal delivery needs to be delivered to a borrower who will occupy as their primary. If it is a VA loan, it must be delivered to the veteran. If the subject is a second home or investment, the delivery confirmation can be from any person on the loan. The delivery confirmation received from ValueLink showing the report was delivered is sufficient.

Alternately, an email to the borrower showing the report was sent will work (if you send to the email address, we have eConsent for) or the report is delivered via SimpleNexus and proof of delivery uploaded.


VanDyk Happenings – Did You Know?

Keep an eye out for Did You Knows to be posted in the VanDyk Happenings Facebook group – Lindsey will frequently be posting helpful information!


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VanDyk Mortgage News: November 15, 2022

November 15, 2022

  • Ops Fly-In – Recordings Available

If you were unable to attend the first ever Ops Fly-in, or you were there and want a second look at some of the presentations, you are in luck! Visit to view recordings from both days.

  • Chase Community Lending Program

We are happy to announce that we have partnered with Chase Bank to offer improved pricing and rates in underserved areas of the country. When you run pricing, Optimal Blue will use the address, zip code, State, and county to determine if the address fits into its community lending program. If the product is in an eligible census tract you will see a loan program that contains “Chase Community Lending” in the name.

This program will be underwritten by Chase, so please take that into consideration when locking and plan for the extra time needed to obtain the conditional and final underwriting approvals from the lender (Amber will handle submitting the file to the lender and applicable conditions will be added into Encompass – there will be no difference in how processing submits or re-submits these files into underwriting).  Eligible products are Conventional 30 Year Fixed, HomeReady 30 Year Fixed, and HomePossible 30 Year Fixed. Attached are chase Community lending guidelines and Chase overlay guides.


  • FHFA – Loan Level Adjuster Updates

On October 24, 2022, the Federal Housing Finance Agency (FHFA) announced changes to Fannie Mae and Freddie Mac’s guarantee fee pricing by eliminating upfront fees for certain borrowers as well as affordable mortgage products. They also announced targeted increases to the upfront fees for most cash-out refinance loans. Fannie Mae and Freddie Mac have both issued lender letters of the changes.

    • Effective with loans locked November 7th and after: LLPA’s have been waived on all HomeReady and HomePossible loans. This removes the Fee caps that used to apply on this products.
    • Effective with loans locked December 1st and after: LLPA changes to C/O refinance loans will be effective. Any C/O locked prior to 12/1/2022 must fund by January 13th in order to avoid increased loan level adjusters. Attached are the changes to C/O adjusters.

We are working diligently with Optimal Blue and Encompass to implement other changes mandated by FHFA. No changes were made to AMI requirements for HomeReady and HomePossible. We will have further updates when they are available.


  • New DPA Option: NHF/Essex

We are excited to share a new Nationwide DPA option! This program will be priced through Optimal Blue. There is a training for Loan Originators scheduled on Tuesday, November 29 at 1pm – invitation is attached, titled “invite.ics” – or email Production Support to have it sent to you.

    • 3.5% of Purchase Price or Appraised Value, lesser of the two.
    • Available in 46 states (except Kentucky, Massachusetts, New York, and Washington)
    • Highlights: 600 min FICO, no First time homebuyer requirement, FHA only, AMI up to 160%, forgivable and amortized 2nd options, and normal/customary fees (Discount/origination max of 2%).


  • Massachusetts Housing: No Longer DPA Partner

We are no longer approved with Mass Housing. Mass Housing has volume requirements and we were unable to meet those requirements. Termination is effective immediately.


  • DSCR – Now Available In House!

We are pleased to offer a Retail solution for DSCR loans through Bayview.  These loans will be a hybrid process for underwriting and closing where Bayview will do the underwrite and VDM will handle the closing. Offering a Retail option will provide more pricing and guidelines options to our borrowers.

    • Prepay Penalty not allowed in: AK, IL, MD, MI, MN, NJ, NM, NC, OH, PA, RI, VA. Blanket option is not available.

Any questions can be directed to Please refer to the attached Pricing Guide for tips on pricing these loans in Optimal Blue.


  • Exciting Updates to Closing and Funding!
    • Updated Funding procedure for Hybrid eClose:

Starting 12/1/22, Closers will be issuing funding authorization on their own Hybrid eClosings. We have also consolidated the funding review conditions for Hybrid eClosing, allowing for a faster, easier, and more efficient funding review.


    • Hybrid eClosing – Default closing option:

Closing will be defaulting to Hybrid eClosings on eligible files if no closing method is specified. Traditional wet sign closings will still be available but must be specifically requested when filling out your Closing Request.


  • Same Day UW

With the delay in the auto-notification from Encompass for Same Day UW Review, we are requesting that if your loan is being resubmitted within 1 business day of your closing date, an email is submitted to the assigned Underwriter on the loan file and copying the Regional Underwriting Manager to notify them of the request for Same Day UW Review.  Thank you for your patience while we continue to test our systems.


  • Broker Partner Updates

New Partner- FNBA:  We are pleased to offer a new broker partnership with First National Bank of America.  FNBA lends in all 50 states and their service levels with the ITIN programs offered look to be higher than our current offerings.  We will send out more information about this exciting development soon!

Spring EQ-Increase in compensation:  Spring EQ has increased the compensation from 2.0 to 2.5% for their open-ended HELOCs when you select borrower paid.  Lender paid and fixed rate HELOAN / closed end compensation remains unchanged. 2% minimum must be charged on every Spring EQ transaction.  At this time, the compensation is paid to the branch and not the LO.

  • TBDs/Files on Hold – Move your ECDs!

Reminder: for any TBD or file on hold with an ECD of 12/31/22 in Encompass, please push it to 12/31/2023. IT has added in the first payment dates in Encompass through July 2024.


  • Updated Product Matrices – Attached
    • High Balance: Our High Balance Matrix has been updated in its entirety for Conventional and FHA programs and VA High Balance has been added.
    • VA: The VA matrix has been updated to reflect a minimum FICO of 580 for Manufactured Homes.
    • FHA: The FHA matrix has been updated to allow for manual UWs on the 203(h) program, and added clarification regarding ineligible AUS findings.


  • WVOE Cheat Sheet

A new Written Verification of Employment Cheat Sheet is attached for your reference.


  • AMI: What Is It? How Do I Find It?

The Area Median Income (AMI) Lookup Tool provides lenders with a quick and easy way to look up income eligibility by area, property address, or FIPS code. Here’s a link to Fannie’s AMI tool and Freddie’s tool!

  • AccountChek as a Compensating Factor

Just a reminder that the AccountChek report fee charged to the branch is $18 for a 60-day w/ refresh or $21 for a 90-day w/ refresh.  There is no charge if results are not delivered.  AUS will be able to pick up a 12-month rental history if one is present – a separate VOR order is not required.

FREDDIE MAC has introduced positive cash flow as an additional compensating factor when AccountChek is used.  This means your Caution LPA result could flip to an accept if you pull an AccountChek and the results reflect the borrower’s running balances and deposits/accounts are healthy and demonstrate smart money management.  Adding additional accounts can help to strengthen the scenario.

  • Encompass Submittal/Resubmittal Emails – Disabled  

In our effort to make Encompass run more efficiently, we have disabled the automated email notifications upon loan submittal, resubmittal, and other milestones. If you would like assittance setting up a pipeline view to see your milestone status at a glance, please email Production Support.

  • Condo Fees

Effective immediately, we are forgoing the use of InterIsland for review on established Condo Projects.  Our Condo Team has worked closely with InterIsland over the past 6 months to help absorb the heavy volume and move in a forward direction.  With this change, the InterIsland Fee will no longer be charged.  The Condo Processing Fee of $150 as well as any third-party fees for documents will still be invoiced.  We will continue to send New Construction Projects to InterIsland as they always have and invoice accordingly.  We look forward to continuing to serve our Condominium customers.

Agency Updates

  • Freddie Mac

Loan Product Advisor Enhancement – Use of a Borrower’s cash flow in its credit assessment

  • LPA will now assess the Borrower’s cash-flow of deposits, monthly bills, and day-to-day transactions.  If positive cash-flow is identified in the account data, it may impact the credit assessment by upgrading a loan’s Risk Class from Caution to Accept.  To use this enhancement, the following requirements must be met:
    • At least on Borrower on the transaction must have a usable Credit Score as determined by Loan Product Advisor, AND
    • At least 12 months of account data must be transmitted to Loan Product Advisor

Credit Card Reward Points as a Source of Funds: Credit Card Reward Points are not an eligible source of funds to qualify the Borrower when the points are redeemed for cash.  Documentation requirements when the funds are not yet deposited in the Borrower’s account is as follows:

  • Evidence of the Borrower’s ownership of the reward points and their cash value, AND
  • Evidence the reward points are redeemed for cash prior to closing, which may include a direct transfer of the cash to the settlement or closing agent.

Upcoming Events and Reminders

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

PLUS: Bonus Training Feast Leftovers!

  • aiUW Refresher: Wednesday, 11/30/22 @ 2pm Eastern
  • SimpleNexus Refresher: Thursday, 12/1/22 @ 2pm Eastern

Total Expert – Training Sessions for new CRM (LOs: you only need to attend one session per class)

Creating Business Growth

Q&A For Loan Officers


35th Anniversary Events

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

VA Final Inspection Reports

If you are not getting the VA notification email for an upload to the VA portal, this is because once the NOV is issued the VA email notifications stop going out.

Please check the VA Portal for your report listed under Repair Inspection or please send an email to Amber Workman to check on it for you.


Buydowns: FHA ADP Code

When ordering your FHA Case Number Assignment on a 2-1 FHA Buydown, 797 must be selected as the ADP Code and Buydown must be answered “YES”.


Assets – LP

When using Freddie Mac LPA for your conventional loans, only 1 month’s asset statement is required versus the standard 2.

The statement must reflect all identifying information and have a starting and ending balance.


Condo Documents for Brokered Loans

Did you know? The condo department is able to assist with condo reviews/obtaining docs on brokered files!

Some lenders require their own questionnaires but Production Support has the details and the Condo Department can invoice for specific fees


Reminder: Check your Loan Program/AUS

Please review the Loan Program on your Borrower Summary 2021 form in Encompass to ensure the AUS you are delivering to underwriting matches.  If your program says DU, you should not be running Freddie Mac LPA.


Underwriting Turn Times

With the launch of Lightning Close and our underwriting department running at a standard 48 hours or less, we will no longer be emailing daily turn times.

UW turn times will be posted on the Encompass Home Page seen below.

If turn times vary between submission/resubmission or purchase/refinances, that will be noted in this section as well.

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VanDyk Mortgage News: October 17, 2022

October 17, 2022

  • Production Support: Department Update

As announced at the Ops Fly In, we are delighted to inform that Taryn Chatel has been promoted to Production Support Operations Manager, responsible for the daily management and oversight of the Production Support department team members, systems, and services including the company training and VDMU programs.  Congratulations Taryn – we know you and your team will do an incredible job!


  • Ops Fly-In Recap

Wow – what an amazing weekend!  We had a wonderful time learning about Magic, the VanDyk Life of Loan process, how pink shoes really DO make the man, and that when there is an open bar and 80’s synth pop blasting all night, the VanDyk Ops team will still show up to their commitments on time.  Please remember to complete the survey and give your opinion on what we got right and how we can improve for the next event (available until 10/21) and don’t forget to check out all the fun pictures!


  • Reminder: Bank Statement Programs Available In-House!

Remember, if you have a Primary Residence or 2nd home self-employed borrower looking to qualify using bank statements, try pricing the loan out in Optimal Blue before brokering.  We have 2 non-delegated in house options for these loans that are competitively priced – your LO comp is not disclosed, the appraisal is ordered like a regular conventional deal, and the loan is closed in VanDyk’s name through our closing department.  Give us a try!

  • 203(h) – Disaster Victims

203(h) program is available, with guidelines listed on the FHA Fixed Rate matrix (attached). Please choose the loan program “FHA 203H 30 Year Fixed.” The Section of the Act will show 203b; DU will run Approve/Ineligible due to the loan amount.

When pricing these loans, please make sure that the “HUD Specialty” box is checked.

The ADP code should be 703.  There is a Program ID in the FHA Case Number Assignment Screen drop down option which is required to be listed as “(02)- Disaster Housing” in order for the 203(h) mortgages to be properly identified in the FHA Connection system.


  • FL Housing – FHA Single Unit Approval No Longer Available

As previously announced, for all FL Housing Bond loans with reservation dates after Oct 3rd, Lakeview Loan Servicing has replaced US Bank as the servicer.  Importantly, Lakeview does not permit the use of the “Single Unit Approval” condo review process for FHA loans sold to them. This is the process by which we review and approve a condo project for ourselves, prior to closing.

For FHA condo loans using FL Housing DPA, the remaining options are to 1) close on a condo project already approved by HUD/FHA or 2) submit the condo review documents directly to FHA for their review and approval (“HRAP” review process).

FHA does not charge a fee for HRAP condo reviews, and the guidelines and requirements are very similar to those for the Single Unit Approval process. The key distinction between both is that HRAP turn times are published as up to 30 calendar days to complete, although timelines could be shorter depending on volume.

If you have any questions, please direct them to


  • FEMA Updates

Hurricane Ian Update: Here is the most recent and up-to-date list of counties in the State of Florida that have been declared a Major Disaster Area and will require an inspection based upon the attached memo:

  • Charlotte, Collier, DeSoto, Flagler, Glades, Hardee, Hendry, Highlands, Hillsborough, Lake, Lee, Manatee, Monroe, Okeechobee, Orange, Osceola, Palm Beach, Pinellas, Polk, Putnam, Sarasota, Seminole, St. Johns, Volusia


  • 4506-C – New Form

A new version of the 4506-C is coming and will be automatically updated in Encompass. DataVerify will take the old form through 11/30/2022, but after that date a new form will need to be signed by the borrower(s) in order to order transcripts.


  • Tax Filing Deadline

We are coming up on October 17, 2022, which is the extension deadline for 2021 Taxes to be filed.  The IRS / Washington have put out guidance that those in Florida, NC, SC, parts of Alaska, and Hinds County Mississippi have until February 15, 2023, due to the recent disasters.

We will need 2021 Tax Transcripts in the file for anything with a note date on or after 11/1/2022 for all other areas.  If you are not able to obtain the tax transcripts because the borrower just recently filed, we will need to show proof of filing via one of the allowable methods AND waive transcripts to go direct to agency.  As a reminder, if the borrower owes any monies, we do need to show these as paid OR evidence of accepted IRS Installment Agreement and include in the DTI.

  • Student Loan Cheat Sheet – Updated!

Our Student Loan Cheat Sheet has been updated with USDA’s new guidance as well as information when a Student Loan is Government backed and in collections with FHA.  In addition, specifics for Freddie Mac’s Student Loan forgiveness, cancelation, discharge, and employment contingent repayment programs have been added.


Agency Updates

  • Fannie Mae

With the Selling Guide Announcement issued 10/5/2022 from Fannie Mae (attached), they are expanding the documentation options for borrowers drawing Social Security Income (SSI) from their own account or work record.  In addition to the Social Security Administration (SSA) Award Letter or Proof of Current Receipt, Fannie will now allow the SSA-1099 of the most recent signed federal income tax return (or transcripts) to serve as adequate documentation.  The FNMA Selling Guide “B3-3.1-09 Other Sources of Income” table has been updated as follows.

  • Freddie Mac

Freddie Mac is specifying requirements for Borrowers who own less than 25% of a business and receive ordinary income or guaranteed payments reported on an IRS Schedule K-1 for Partnerships and S-Corporations.  With this update, the guide is now requiring that for borrows with this income characteristic, sellers (VanDyk Mortgage) must use either:

Also see attached Freddie Mac Bulletin 2022-20 for additional updates related to Freddie Mac Condo Project Advisor and Property Eligibility and Appraisals.

  • USDA

USDA has updated multiple paragraphs within Chapter 11 Ratio Analysis Microsoft Word – 3555-1chapter11 ( section of the RD Handbook HB-1-3555.  Highlights from this update are:

  1. Student Loans – USDA has added verbiage to the allowance of One half (.50) percent of the outstanding loan balance documented on the credit report or creditor verification, when the payment amount is zero.
  2. Debt Ratio Waivers – Payment Shock has been removed from Purchase & Refinance Sections as a compensating factor.

Attached to this Newsletter are the full details of the updates; many of those being grammatical.


Borrowers Sharing Email – Important!

Borrowers who are not on a joint application cannot share an email address. Joint borrowers may share an email if they are on the same URLA, but co-mortgagors/borrower pair 2 may not use the same email as borrower pair 1. This is against our eConsent policy.

If you have any questions or need clarification, please reach out to Compliance or Production Support.


Reminder: Government Loans in LPA

Just a reminder that we are absolutely able to run Freddie Mac LPA on FHA or VA loans – but it will run ineligible. This is acceptable for government loans!


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VanDyk Mortgage News: September 15, 2022

September 15, 2022

  • You Asked, We Listened: AskUW@vandykmortgage.comAn underwriting scenario inbox is back! Now you can email your questions directly to This will create a ticket in Howee, and the underwriting manager assigned to your region will respond. Those responses come via email, so watch for responses to come from AskUW!
  • Appraisal Modernization Update

Good News! We are officially live with both Fannie and Freddie for all the different appraisal options AND we have negotiated with Clear Capital to match our full appraisal pricing for the Full Hybrid reports.

Please remember to run both AUS and look for your appraisal offering – even on TBDs, you will get notice of a desktop or Hybrid options.


  • Both: Full appraisal – Order the appropriate report
  • Freddie Mac:  ACE+PDR (this is NOT a full waiver).  You need to order the ACE+PDR property inspection report which runs around $250.
  • Both:  Desktop option – no inspection required.  Get a floorplan layout from the realtors and order the Desktop report.  Should take less time and cost a little less.
  • Freddie Mac:  Hybrid 70H – Order the Freddie Mac Pilot 70. This is a bifurcated process.  An inspection will be done by a third party usually the next day and then it goes to an appraiser for a Desktop report using the information in the PDR that the inspector provides.
  • Fannie Mae:  Hybrid 1004H – Order the Fannie Mae 1004 Hybrid. This is a bifurcated process.  An inspection will be done by a third party usually the next day BUT the PDC report is submitted directly to Fannie Mae and they will determine if they need the full 1004H or are satisfied with the value+PDC.  I am told 40% of the time this will be it for $250.  The remaining 60% will be sent to the appraiser for a Desktop report using the information in the PDC that the inspector provides.

These Hybrid options are pilot programs to help reduce turn times and allow appraisers to stay home and do more reports

  • Reverse Mortgages: UpdateWe have closed our first PA Reverse and finalized the fee package for our Reverse Support Team’s services.  Look for meeting invitations where we will review the helpful and beneficial services available from this awesome team coming soon!
  • Reminder: Run BOTH AUS!

We encourage you to run both DU and LPA to ensure you are offering the best appraisal option, the smartest qualifying documentation, and the most competitive interest rates.

  • Conventional Buydowns

We recently announced a conventional buy-down option – the full newsflash is attached for your reference.

  • Expanded Credit Scores

We are thrilled to announce 500-579 FICOs are now eligible for FHA and VA Financing with Approve/Eligible AUS Findings (no manual downgrades)!  Terms are limited to 360 months only.  First-Time Homebuyers will require a Homebuyer Education Cert and all buyers will require a satisfactory 12-month VOR/VOM.  Find attached our updated VA and FHA Fixed Matrices for further details.

  • Jumbo Updates: PenFed, US Bank, Maximum Loan Amounts

Effective immediately: PenFed has been suspended as a Jumbo outlet. PenFed is working through some operational changes. During their operational changes, we have decided to suspend them as an outlet.  We will continue to monitor their ops changes and advise once we feel their service levels and pricing have returned to an acceptable level.

    • With the suspension of PenFed as a Jumbo outlet our max Jumbo loan amount internally has been reduced to $2 million. Anything over and above that loan amount would need to be brokered. We will advise when we are able to offer higher loan amounts.

Effective immediately, US Bank has lowered their maximum LTV to 80%.

  • Broker Partner Update: GoPointDirect

On September 12, we received news that GoPointDirect abruptly closed their doors. There has not been any indication from GoPointDirect that they will fund the loans that remain in their pipeline. From what we have heard elsewhere, it doesn’t sound like they will be following through on loan commitments already in process. If we hear from GoPointDirect or any other industry chatter, we will make sure to communicate that to you.


The non-QM market has remained rather volatile as rates continue to move higher. Liquidity remains a major issue in this space as investors have moved to safer assets. We continue to see non-QM outlets tighten their credit box as a risk off approach enters this space.


We remain committed to providing you all with as many products as we can in the non-QM space and will search for other outlets if any gaps arise from consolidations or industry exits.

  • QC Process: Reminder

As a reminder, QC Reviews are no longer completed at initial underwrite and are handled as follows:


Regular Reviews – 10% Requirements

  1. Selected at Conditional Approval/Resubmittal at least 5 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 review.
  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 and condition will be added
  2. QC will review in any of the following milestones – Conditional Approval, Resubmittal, Approval
  3. 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.

  • Escrow Holdback – Fee Increase

Due to an increase in appraisal charges, we are increasing the escrow holdback fee to $200, effective immediately.


Agency Updates

  • Fannie Mae

Personal Gifts: Per Selling Guide Announcement SEL-2022-08 (attached), Fannie Mae has expanded the list of acceptable donors for Personal Gift Funds to include a non-relative that shares a familial relationship with the borrower, specifically a former relative, relative of domestic partner, and godparent.  This update has impacted section B3-4.3-04, Personal Gifts, of the Selling Guide.

  • Freddie Mac

Gift Funds: Freddie Mac is also expanding on gift fund and gift letter requirements as a means of reaching for First-Time Homebuyers.  As such, they are updating their requirements to allow graduations gifts from both related and unrelated persons for the purchase of a Primary Residence.  See attached Bulletin 2022-18 for further information on documentation requirements.

In addition to this expansion, Freddie has updated their requirements to allow gift letters to state the MAXIMUM amount of the gift funds or gift of equity OR the actual amount.  This will eliminate the need to obtain a corrected gift letter should the actual amount of the gift be less than the amount stated on the gift letter.

1099 Employment/Income: Freddie Mac is providing more detailed guidance on income received on IRS Form 1099.  Attached Bulletin 2022-18 outlines a summary of the existing and updated requirements surrounding this income type.

  • USDA

Rural Development Fee Structure for Fiscal Year 2023: 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 Fiscal Year 2023 Conditional Commitment Notice ( regarding yearly lapse in funding.   The lapse will have no effect on our loan flow or procedures.

Upcoming Events and Reminders

If you need an invitation to one of the Zoom meetings, please respond to this message.

  • Iron Sharpens Iron – Tuesday, September 20 @ 11am Eastern
  • VanDyk Mortgage Newscast (Formerly Ops Huddle) – Friday, September 16 @ 1:30pm Eastern
  • Production Roundtable – Thursday, September 22 @ 3pm Eastern
  • 35th Anniversary Events
  • October 8, 2022 | Ops Fly-in 35th Anniversary Meet and Greet
  • March 2 – 4, 2023 | Annual Sales Fly-in

Property Taxes – Important!

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.


Reminder: Tax Proration Credits

We have completed the research in all agencies as to when the Tax Proration can show on the URLA and run through the AUS:

    1. FNMA Conventional DU – You CAN add to URLA DOT and run through AUS; Can show on the CD
    2. Freddie Mac Conventional LPA – You CANNOT add to URLA DOT and run through AUS; Can show on the CD
    3. FHA – You can only add to ULRA DOT and run through AUS “IF” the borrower has sufficient funds for the 3.5% MRI + Closing Costs + Prepaids less any seller/lender/OTP credits; Can show on the CD
    4. USDA – You CAN add to URLA DOT “IF” the borrower is not receiving any cash back from the Tax Proration; Can show on the CD BUT the borrower CANNOT receive any cash back from the Tax Proration Credit.
    5. VA – You CAN add to URLA DOT and run through AUS; Can show on the CD AND borrower CAN receive cash back from the Tax Proration Credit.
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VanDyk Mortgage News: August 15, 2022

August 15, 2022

  • Appraisal Options: UpdateWe are excited to announce that VanDyk Mortgage has been invited to participate in pilot programs for both Freddie Mac and Fannie Mae for increased modern appraisal options.  It is IMPORTANT that on conventional single-family homes (including those with ADU’s) to run both AUS upfront to make sure you get the quickest, best appraisal option to utilize these tools.  See details in the Conventional Appraisal Flexibilities document
  • Reverse Mortgages

We are a GO people!  Reverse mortgages are now available in-house and will be proceeding as a Principal Agent.  We have completed these transactions in the past but our new set up is different than before and as a result, everyone will be required to go through a refresher with our reverse team before access to Reverse Vision will be granted.  Details are attached.  Reach out to a member of the Reverse Team:  Sophie Morales (, Adam Wilson (, Kristine Kuss ( or Production Support should you need additional assistance.

  • Bank Statement Program – New In-House Option

We are pleased to offer another Retail solution for the Bank Statement loans through Bayview.  These loans will be a hybrid process for underwriting and closing where Bayview will do the underwrite and VDM will handle the closing. Offering another Retail option will provide more pricing and guidelines options to our borrowers.

  • Loans in MA, CT, NY, UT, HI, MO, NV are not permitted
  • Texas 50(a)(6) not permitted

Any questions can be directed to Please refer to the attached Pricing Guide for tips on pricing these loans in OB. A new Process Flow for Bank Statement loans is attached as well, along with NewRez and Bayview program overviews.

  • FHA Buydown Options

We are excited to offer 2/1 FHA buydowns effective today, 8/15/22. A 2/1 buydown is going to reduce a borrower’s interest rate 2% in the first year, 1% in the second year, and then the note rate the following 28 years. We will be offering both lender and seller funded buydown options. Buydown matrix is attached for your reference.

In Encompass, you can select the “FHA 30 Year Fixed 2/1 Buydown” loan program. Upon selection of this loan program, the buydown information will automatically be input to the loan.

On the Reg-Z CD form within Encompass, you can click the Buydown Disbursement button to see the full details and determine the buydown amount that will need to be collected.


  • Production Support: Department Update

We are pleased to announce the addition of Alex Green to the Production Support team!  Alex has experience in VanDyk’s underwriting division as both a Jr Underwriter and a Condo Review Specialist, and we are delighted that he has joined the Production Support team.  Please be sure to email or complete a support ticket should you need assistance.  The Production Support menu of services and other details is attached.

  • Self Employed Income Review Team: Update!

Our Self-Employment Income Support Team is now reviewing/calculating rental income!  Feel free to submit your file for review for your borrowers with rental income.  Attached is a reminder on process flow and required documentation.

  • SSA-89 Forms – Now Available to Be eSigned

The wet signed SSA form has been removed from the initial disclosure pack in SimpleNexus as it can now be e-Signed. You can also request the SSA form be eSigned as a one-off document if you need to validate a SSN and do not have a wet signed SSA form. Please reach out to with questions.

  • New UDM Requirements

Effective immediately, UDM will be required for all files with a DTI of 40% or higher.  Due to audit results where undisclosed debts were present, DataVerify is requiring a revision to our UDM policy.  Any new fraud report pulled today where the DTI is 40% or higher, UDM will automatically be turned on.  We will accept a soft pull in leu of a UDM report (sometimes there is an issue with the UDM request vs. ECD time frame).  Contact Production Support for assistance with soft pulls if needed.

  • Loan Comparison Tool (LCT)

An updated Loan Comparison Tool has been added to Encompass to assist in tracking changes in a loan file. This tool compares current loan data to data sent on the last set of disclosures. Any discrepancies in the tracked data will trigger the below alerts in encompass. The alerts will clear once a new LE or CD is sent on the file.

    • Zero Tolerance Fee Increase (LTC) – Triggers on an INCREASE of zero tolerance fees, which likely have a 3-day window to disclose.
    • Data Discrepancy (LTC) – Triggers on any change of the tracked data.
  • ATR/QM Alerts

In addition to the LCT alerts, we would also like to highlight the ATR/QM alerts. These alerts MUST be resolved prior to closing and typically require additional lender/seller credits or a pricing adjustment to resolve.

    • Pricing Exceeded = Your current APR is over the allowed threshold over the APOR. APR must be lowered.
    • Points and Fees Exceeded = Your fees exceed the ATR/QM threshold and must be lowered.
  • Branch Disclosures: Initials

With the implementation of the Disclosure Automation (Disclosure Desk – VDMC) and the Loan Comparison Tool, we will be moving toward branch generated initial disclosures in the coming weeks. This workflow will allow branches to issue their own initials disclosures quickly and easily without a required second compliance review on each file.

    • This will be rolled out on a region by region and will be coordinated through your Reginal Manager. More information to come!


  • Broker Process Update: Effective September 1

Due to industry changes and product demands, we have revised how we are managing the broker process at VanDyk mortgage.  These changes will go into effect for loans approved to broker on or after September 1st – watch your email for training invitations coming soon!

Update: Lightning Closings

The Lightning Closing workflow has been a huge success! We have seen an increase in closing efficiencies, a decrease in turn times, and have received rave reviews for all parties involved. Below are some changes and reminders to help keep this workflow running smoothly.

  • Updated Hyperlinks for Manufactured Homes, POA/Trust, and Final VOEs
  • VOE override for SS income and/or no income loans. (Coming Soon)


    • Please keep your Closing Date Requested as updated as possible.
    • Utilize the Closing Notes for any special instructions for your closer.
    • Clear to Close is not required to submit a closing request. Please submit once the following is met:
      • A CD has been issued.
      • Final VOEs have been completed (typically within 10 days of closing).


  • In House vs. Non-Delegated vs. Brokered: A Quick Explanation
    • In-House:  VanDyk Mortgage handles the process of the loan file from application through closing and funding.  LO compensation is not disclosed to the borrower on the CD
    • Non-Delegated:  VanDyk Mortgage handles all but the underwriting of the loan file.  The loan is priced and locked in OB and the comp plan is set up the same as your regular conventional in-house plans.  The loan closes and funds in VanDyk Mortgage’s name.  LO compensation is not disclosed to the borrower on the CD.
    • Broker:  Our Broker Partner handles all but the processing of the loan file.  The loan closes and funds in the Broker Partner’s name.  LO compensation is disclosed to the borrower on the CD.
In-House Non-Delegated Broker
Disclosures VanDyk Mortgage VanDyk Mortgage Broker
Underwriting VanDyk Mortgage Investor Broker
Closing VanDyk Mortgage VanDyk Mortgage Broker


  • Agency Update: Fannie Mae

Highlight(s) from the Fannie Mae Selling Guide Update SEL-2022-07 (08/03/2022): Final Verbal Verification of Employment Alternative

Our current policy requires a verbal verification of employment (verbal VOE), written verification, or a third-party verification report within 10 business days prior to closing to verify employment for borrowers who are not self-employed.

We updated the Selling Guide to add an alternative to satisfy the verbal VOE requirement for non-DU validation service loans. With this updated requirement, the lender

  • may use an email exchange with the borrower’s employer within 10 business days prior to closing to verify employment;
  • must conduct due diligence to confirm the email address for the employer is accurate;
  • and must ensure the email is from the employer’s work email address and includes the borrower’s name; name, title, and work email address of the individual contacted at the employer; date of contact; and borrower’s current employment status.

Effective: Lenders may begin using this verbal VOE alternative immediately. DU will be updated the weekend of Aug. 20, 2022, to support this policy change.

  • Agency Update: Freddie Mac

Highlight from the Freddie Mac Bulletin 2022-16:  Selling (08/03/2022): AIM Income Offerings – Partial Income Representation and Warranty Relief

Partial income representation and warranty relief (formerly referred to as source level representation and warranty relief) is granted when multiple income sources are submitted through Loan Product Advisor and one or more of the income sources receive income representation and warranty relief, but additional sources of income are required. In these instances, the income that is not granted representation and warranty relief must be documented in accordance with the Guide.

With these changes:

  1. A Loan Product Advisor feedback message indicating partial income representation and warranty relief has been added
  2. Loan Product Advisor feedback messages have been updated to provide representation and warranty relief details specific to each income source submitted
  3. Loan Product Advisor feedback messages will be specific and actionable

Each income source will still be considered for representation and warranty relief eligibility through Loan Product Advisor as it is today.

  • Agency Update: VA

VA has issued CIRC 26-22-13 allowing for Alternative Valuation Methods, Exterior-Only and Desktop Appraisals, for PURCHASE transactions where all of the following are true:

  1. Purchase Price does not exceed the current calendar year conforming loan limit for the property jurisdiction.
  2. The dwelling is a single family (1-unit) home that is not a manufactured home or condominium, not located on a leasehold estate, and not undergoing renovation.
  3. One or both of the following:  The Veteran is making a down payment of at least 20% of the purchase price OR more than 7 business days have elapsed since the lender requested an appraisal and the case remains unassigned in VA’s system.

Attached are also Exhibits A & B outlining the Appraisal Assignment Waterfall and Appraisal Report Supplemental Information.

VA Manufactured – We are lifting our overlay on Singlewide Manufactured Homes.  Attached is the updated VA Fixed Rate Matrix removing singlewides as ineligible.


  • Coming Soon: New Marketing Platform!

Introducing Total Expert at VanDyk Mortgage, a CRM system to create growth and loyalty for Loan Officers.

Total Expert offers the industry’s only platform with CRM and marketing built together from the ground up. Design and deliver a better customer experience from the first contact and increase overall production by an average of 20%.

With Total Expert, you can create and deploy campaigns in multiple channels-including print, direct mail, social, SMS, and email marketing to meet consumers in the channel that they prefer. Total Expert will have integration points with the rest of the technology stack including Encompass, Optimal Blue, and SimpleNexus to drive hyper-personalized marketing efforts.

The implementation work has started – you can anticipate a roll-out of the tool in Q4 of this year. More detailed information on timelines will be available soon.


  • Upcoming Events and Reminders

If you need an invitation to one of the Zoom meetings, please respond to this message.

  • Iron Sharpens Iron – Tuesday, August 16 @ 11am Eastern
  • VanDyk Mortgage Newscast (Formerly Ops Huddle) – Thursday, August 25 @ 1:30pm Eastern
  • Production Roundtable – Tuesday, August 30 @ 1pm Eastern


35th Anniversary Events

  • September 10, 2022 | 35th Anniversary Dinner – President’s Club
  • October 8, 2022 | Ops Fly-in 35th Anniversary Meet and Greet
  • March 2 – 4, 2023 | Annual Sales Fly-in


Joint Applications – Reminders/Updates

As a reminder, unmarried borrowers may be on a joint application in Encompass (unless it is a VA). Joint borrowers need a joint credit report for AUS to run.

Please keep in mind – if we have a multiple borrower file, the “joint” pair should be reserved for spouses/couples/partners. (Example: if a married couple is signing with their child, the child should not be joint with one of the parents.)

* * *

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

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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VanDyk Mortgage News: July 15, 2022


  • Lightning Closings Are Here!

We are pleased to announce our new Lightning Closing Procedure will being going live next week! Here is how it will work: Submit your Closing Request as soon as your CD is issued – your file doesn’t need to be in Resubmittal or Clear to Close status. As long as your closing request is submitted 48 hours prior to your requested ECD, you are on track to hit your closing date. Once your loan is Clear to Close, your closing package can be delivered to title in as little as 4 hours!

We will be updating the existing “Closing Request – VDMC” form in Encompass with the Lightning Closing Process. You will use this form to submit your closing requests as shown below.

To submit your closing request, all blue fields must be completed. If any fields are missing, you will be met with an error message specifying which fields need to be completed. These fields are required to allow your Closer to begin accurately working your file for closing, even if it is not yet CTC. If this information is inaccurate, it may delay your Lightning Closing.

Once your Closing Request has been submitted, you will receive email confirmation that it has been received.

Closing Requests submitted within 48 hours of your closing date will trigger a Severe Weather Alert. These Severe Weather Alerts will be treated like our current rush requests, the Closing Department will make every effort accommodate the closing date but turn times may not be guaranteed.

If your file is not ready for closing and the closing date must be extended, please update your Closing Date Requested with your new closing date and communicate this change with your Closer. If no new closing date is known, please remove your Closing Date Requested and resubmit when a firm closing date is identified.

Communication is key. For us to achieve Lightning Closings it will take a team effort from each VDM team member that touches the file.

  • aiUnderwriter

We are a full 2 months into Beta Testing the ai Underwriting tool with our Underwriting Team!  aiUW was launched to our Processors at last month’s Processing Roundtable and more recently to our Regional Sales Managers, Branch Managers, and Loan Officers.  We officially have {most} hands-on deck.  As a reminder, this is a tool that we will continue to build and customize to what we need to enhance our VanDyk Mortgage teams and processes; all feedback is continued to be welcomed.  We have BIG things coming with enhancements specific to our Loan Officers that you won’t want to miss – Stay Tuned for more information.  If you or your team would like additional training with using ai Underwriter and help with how to fit this into your process flow, please reach out to Lindsey and Megan.


  • New Down Payment Assistance Provider: Lakeview

We are pleased to announce that Lakeview has launched a DPA product that offers up to 4% of the lesser of the appraised value or the purchase price, with no maximum cap. The second mortgage is due and payable upon sale, maturation, refinance, early payoff of the first mortgage, or transfer of the property. The 2nd mortgage has interest only payments based on the interest rate of the first mortgage.

  • Eligible States: AK, ND, AL, HI, IL (other than in Cook County which is not eligible), IN (other than in Allen, Kosciusko, LaGrange, Marion, Steuben and Wabash Counties which are not eligible), KY, MA, MD, MI, MO, MS, MT, NJ, SD, TN, & VA

A Product Overview and Matrix are attached. Lakeview will be hosting a training on July 19 at 2pm Eastern – please register at this link to attend:


  • Jumbo Updates: Truist

Truist has re-entered the Jumbo space in an aggressive fashion for Delegated clients. Earlier this month, we obtained our Delegated Underwiring approval with Truist and they have been added to the Jumbo pricing options In Optimal Blue. Attached is an updated Jumbo comparison sheet.


  • Appraisal Transferability Updates

We are absolutely THRILLED to announce that as of today, we will be able to accept transferred appraisals on conventional loans!  The appraisal and XML file should be emailed to Amber Workman ( as soon as received from the prior lender so we can ensure the report is run through the UCDP.  Once completed, Amber Workman will upload the appraisal to your Encompass file and mark as “Ready for UW”.  The appraisal will be reviewed when the file is submitted to underwriting like usual (either as an initial underwrite or with your conditions).  If the underwriter determines the appraisal is unacceptable and cannot or should not be used, a new report will need to be obtained by VanDyk mortgage through the usual process.  Please find attached our updated transferability cheat sheets as well as updated Appraisal Expiration Cheat Sheet.


  • Income Calculation Worksheet: Update

Beginning August 1, all teams will be using the Income Worksheet – LTK form in Encompass instead of the Excel income calculation worksheet. For an overview of this worksheet, watch this training video. If you have any questions, reach out to


  • Fannie Mae Updates

SEL-2022-06 (Attached) was issued by FNMA July 6, 2022 to include changes to the following:

  • Compliance with Address Confidentiality Programs adding additional requirements for sellers/servicers to comply with state laws (must comply by Sept 1, 2022)
  • When an existing manufactured home is being sold to a consumer by a builder, developer, or manufacturer as part of a new or existing MFH subdivision, the LTV ratio will be based on the lower of:
    • the sales price of the MFH and land, or
    • the current appraised value of the MFH and land


  • Freddie Mac Updates

Review the link for video of Selling Guide Bulletin 2022-15: Guide Bulletin 2022-15 ( Updates Include:

  • Effective for Mortgage with Loan Product Advisor (LPA) initial submission dates on or after July 10, 2022, enhancements were made to include a First-Time Homebuyer’s rent payment history in its credit assessment, providing expanded opportunities.
    • Seller must submit to LPA the current monthly rent amount paid by the Borrower AND
    • Obtain a verification report of the depository account(s) from which the Borrower makes their rent payments (see details for acceptable third-party sources).
      • The history will be included in the Loan Product Advisor credit assessment when the following requirements are met:
        • The Mortgage is a purchase transaction Mortgage secured by a Primary Residence
        • At least one Borrower with a rent payment history must:
          • Have a usable Credit Score, as determined by Loan Product Advisor
          • Be a First-Time Homebuyer who intends to occupy the subject property as their Primary Residence, and
          • Have been renting for a minimum of 12 months with a monthly rent payment of at least $300 that is paid from the depository account(s) in the verification report obtained by the Seller
  • Clarification regarding Manufactured Homes with Affordability Seconds (Section 5703.3) that the MFH must be:
    • 1-unit Primary Residence
    • Mortgage must be a Home Possible Mortgage
    • If the MFH is in a condo project, guide requirements in section 5701.5(f)91) through (f)(5) must be met.
  • FHA Updates

Please see this link for updates – here are some highlights:

    • Full access letter for joint bank account eliminated
    • Income Calculation Exception Due to COVID-19 Related Economic Event (for TOTAL & Manually underwritten loans) – Applies to W2 wage earners and Self-Employed.
    • Gaps in Employment (for TOTAL & Manually underwritten loans) – We can now consider the borrower’s income if the borrower has been in the same line of work (not current job) for at least 6 months at time of case number assignment AND a 2-year work history verified prior to the gap. See the attached Income Guidelines cheat sheet for additional information.
    • Revised Appraisal Validity Periods – Initial Appraisal extended to 180 days; Appraisal update extended to 1 year; 30-Day optional extension removed


  • VA Updates

VA Circ 26-22-10 – The United States Space Force (USSF) is now considered as a branch of service; Certificate of Eligibility (COE) enhancement

Current and discharged members of the USSF or USSF Reserves, otherwise known as Guardians3, may be eligible for VA home loan benefits upon meeting length-of-service (LOS), and character-of service (COS) requirements.  Qualifying Surviving Spouses of Veterans who served in the USSF may also be eligible for the VA home loan benefit

VA Circ 26-22-12Certificate of Eligibility Funding Fee Status Update

VA is introducing a funding fee status to inform lenders when the VA Form 26-8937 has been received and the pre-discharge or memorandum rating request is in process. Upon receipt of VA Form 26-8937, VA will conduct research to see if the Service member has filed a pre-discharge claim.

  1. If the Service member is eligible for the home loan benefit and VA records indicate the Service member does not have a pre-discharge claim pending, VA will annotate the COE record and issue the COE with a funding fee status of Non-Exempt.
  2. If the Service member is eligible for the home loan benefit and VA records indicate the Service member’s pre-discharge claim has been adjudicated, VA will update the COE with the appropriate funding fee status and issue the COE.
  3. If the Service member is eligible for the home loan benefit and VA records indicate the Service member has a pre-discharge claim pending that has not been adjudicated, VA will submit the rating request to the Veteran Service Center (VSC). VA will update the COE funding fee status to Non-Exempt – In Development and issue the COE. The Service member is not exempt at this time. If a proposed or memorandum rating is not obtained, and the loan closing takes place before the Veteran is discharged from service, the funding fee exemption does not apply, and the Service member will not be entitled to a refund. VA will update and reissue the COE as appropriate based on the response received from VSC.

VA Circ 26-22-11Pest Inspection Fees and Repair Costs

Effective immediately, VA is authorizing in advance, as a local variance, that Veterans may be charged wood destroying pest inspection fees, where required by the NOV. Veterans may also pay for any repairs required to ensure compliance with MPRs. Veterans are encouraged to negotiate the cost of the wood destroying pest inspection and repairs with the seller.


  • 4506C – Clean Form Requirements

The IRS is changing how transcript orders will be accepted and processed.  For VanDyk Mortgage to be compliant, we have updated our initial disclosure and closing packages to include several 4506C forms per borrower.  Each form is slightly different to minimize the need to go back to the borrower(s) for multiple revisions later.  If corrections or revisions of the 4506C form are needed, they should be sent as one-off docs for borrowers to E-sign.

You can minimize the need for revisions and corrections by confirming with your borrowers, prior to requesting the disclosures, what name and address they used to file their most recent federal tax return under and completing the REQUEST FOR TRANSCRIPT OF TAX form in Encompass to match these details.


  • Update – Reverse Mortgages In House

We are making excellent progress towards moving our reverse mortgage loans out of the broker world and back in house.  More information will be forthcoming.  If you have a reverse mortgage and have not yet been contacted or need assistance, please reach out to Kristine Kuss in the Production Support department ( or


  • More Good News – Coming Soon!
    • NonQM Options – Bank statement and DSCR options through Bayview
    • Buydowns – Actively working on a 2/1 buy down solution


  • Mid-Year Look Back

We are halfway through 2022 – here’s a recap of some of the highlights in the first half of the year:

    • Launched Hybrid eClosings for faster closings
    • Launched the MyVanDyk app to improve our borrowers’ experience
    • Expanded Jumbo and ARM options
    • Added in-house bank statement and non-warrantable condo programs
    • Added longer periods for extended locks
    • Added several additional lenders to our Broker Partner list
    • Automated the process for requesting and sending LEs, COCs and CDs
    • Updated the Loan Commitment letter to include conditions
    • Improved the condo review process
    • 24 hour self-employment income review department
    • Smart Income Calc worksheet
    • Added an easy and brightly color coded way to track purchase deadlines in encompass to ensure we meet deadlines
    • New Document Imaging/Doc Viewer
    • Cleaned up redundant conditions- Patriot Act Form, Final Insurance Verification, Joint Access Letters, Appraisal Delivery requirements
    • Appraisal Delivery forms auto import into the eFolder
    • Added several additional lenders to our Broker Partner list
    • TBD workflow giving LT/TC access


  • Upcoming Events and Reminders

If you need an invitation to one of the Zoom meetings, please respond to this message.

  • Iron Sharpens Iron – Tuesday, July 19 at 11am
  • Ops Huddle – Thursday, July 21 at 1:30pm Eastern
  • Production Roundtable – Wednesday, July 27 at 1pm Eastern
  • 35th Anniversary Events – see attachment for more details!
  • August 10, 2022 | 35th Anniversary Dinner
  • August 11, 2022 | Annual Golf-N-Give
  • September 10, 2022 | 35th Anniversary Dinner – President’s Club
  • October 8, 2022 | Ops Fly-in 35th Anniversary Meet and Greet
  • March 2 – 4, 2023 | Annual Sales Fly-in



  • July 1 Improvements: Reminder!

As of July 1, the following improvements are active:

    • Introduction of Income Worksheet – LTK within Encompass (Click here for a training video if you missed last month’s Round Table)
    • Patriot Act Information Form AT closing Only for Title Agent to complete
    • Homeowners Insurance Reverification Form is no longer required
    • Excessive Runs LOE will only be required if there is a RED Flag on the AUS


  • Loan Duplication – Updated Template

When Pipelines duplicates files for you, the VOM will now copy over to the new file! We hope this makes restarting a file a little easier.


  • COC/CDs – Disclosure Automation

We will soon be expanding our disclosure automation to include Change of Circumstances (COCs) and Closing Disclosures. If you are currently sending your own initial disclosures through Disclosure Desk and would be interested in sending your own COCs and CDs, please contact to schedule your training.

25 Points
Claim Points

Lending Announcement: May 16, 2022

May 16, 2022

  • Non-Borrowing Spouse: Reminder!

As a reminder, the non-borrowing spouse’s email address is not needed until CD time on refinances only. The spouse’s name can be added to file contacts, but the email address should be left out to ensure no emails go out to the NBS prior to docs being available for them to sign.


  • TBD Workflow – Job Aid

We are pleased to have an official workflow in place which will allow the Loan Officer, Loan Officer Assistant and Transaction Coordinators access to any TBD file to make changes when the loan is in processing intake, processing, suspense and conditional approval milestones.  The workflow is attached – please contact or should you have questions or need assistance


  • Minimum Standards for Acceptable to Underwriting: Update

We have updated our Minimum Standards for Acceptance into Underwriting to remove the requirement for the Patriot Act Information Sheet, Photo ID, and SSN Verification.  It is still a best practice to verify this information to ensure we have data integrity and do not need to re-pull credit after submission into Underwriting.


  • Broker Partner Update

GoPointDirect has suspended their Medical Professionals/Doctor and Wealth Builder loan programs.  We received the following communication from our A/E: “We were not given a reason for the discontinuance by our investor either. This is beyond GoPointDirect’s control. We are no longer taking in any of these medical professionals loans at this time. I will let you know if GoPointDirect should ever offer this loan program again in the future but for now, there is no medical professional or WealthBuilder100 loan programs to offer at this time.”


  • Loan Folder Management Update

Please review the attached update for an overview of how Encompass loan folders are managed. Note that not all of the folders have changed, but the Pipelines team will be monitoring and moving files per the updates in the coming days. If you have any questions, feel free to contact Jeremy Favazza at or at


  • Loan Commitment Letter: Update

Should you need a Loan Commitment issued, the 2005 Mortgage Loan Commitment form that references the Good Faith Estimate will be replaced with the attached updated form moving forward.  The updated form is automated and will pull in conditions from the UW tab to ensure required items are properly disclosed.  The procedure to request a Loan Commitment Letter will remain unchanged.


  • Chenoa HomeReady Suspension

Chenoa has announced that they are suspending their conventional programs effective immediately. We do not have a timeline on when this program may return, but will keep you updated as we find out more. If you have a loan that is conditionally approved for Chenoa HomeReady, please reach out to us so we can review.

We will still be releasing the Chenoa FHA later this month and will send out an announcement once the program is available again.


  • Lock & Shop: Reminder!

TBD loans that are locked will need to have initial disclosures issued within 3 days of lock. Compliance or Secondary will temporarily change the file’s address to “Not TBD” so the file will trigger a due date in Encompass, but the address will change back to “TBD” for the disclosures.


  • Condo Updates
  • Condo Review Standards: Last month we announced that our Condo Department would be taking back over processing of condo documents effective April 25.  To set appropriate expectations with SLAs, communications, and processes, we have attached a Condo Review Standards for you.  As a reminder, please enter your condo screening date as soon as you have the Minimum Standards items to avoid delays in getting your condo project approved.
  • Condominium Project Questionnaire: We updated the Condominium Project Questionnaire (Form 1076) to add an addendum to facilitate collection of information regarding deferred maintenance in support of Lender Letter LL-2021-14, Temporary Requirements for Condo and Co-op Projects. We are also retiring Condominium Project Questionnaire – Short Form (Form 1077) as this form is not sufficient for lenders to determine eligibility under our new requirements.
  • Reminder: The Condo Questionnaire is the same, whether limited or full review. The short form questionnaire was retired as of 12/15/2021 (SEL-2021-11).
  • Helpful Hint: The Condo department will email out confirmation when an order is started and if any major issues come up.  If you would like to check status of the condo review, you can add the Condo/PUD Notes column to your pipeline view in Encompass for easy reference:


  • Contract Dates – Pipeline Update

Last month, we asked everyone to enter important dates into loan files so we can meet or beat them – especially contract closing dates – and track our performance.  Today you will notice that we are highlighting contract dates in pipeline views.  Yellow: the loan has to close within the next 10 days; Orange: the loan has to close within the next 5 days; Red: we missed the date and will be reviewing the file to determine what went wrong to evaluate how to improve.


  • Appraisal Reinspection Fee Update

The Origination Compliance Department would like to announce that the default appraisal reinspection fee will be updated from $130.00 to $150.00 on initial disclosures starting 4/20/2022. If your branch has an individual setting for this fee, it will not be affected though you may request an update to your branch’s Encompass settings.

As a reminder, the appraisal reinspection fee can be added at initial disclosures to cover the possibility of needing a reinspection. If a reinspection does not end up being requested by the appraiser, the fee will be removed before closing. This $150.00 fee will only be placed on initial disclosures when the user has selected “yes” to the below field on Borrower Summary 2021 Page 2 – Disclosure Questions:

If you have any questions or would like a customization for your branch, please reach out to Ashley Favazza, Origination Compliance Manager, at


  • FEMA Disaster Search – Update!

The FEMA disaster search has been updated to only run at the following points: Subject property address added, Submittal milestone, Approval milestone. The search will no longer run every time we enter the file.


  • ATR/QM – New Alerts

2 new ATR/QM alerts have been added to Encompass. They are both considered HARD STOPs and will need to be resolved prior to closing. It is highly recommended to resolve these alerts ASAP, as they are typically fee or PMI related and can be costly to resolve.

  1. ATR/QM – Points and Fees Exceeded: This alert triggers when loan fees are above the ATR/QM 3% points and fees limit. Fees included in this calculation will typically have to be lowered or credited in order to clear this alert. Details can be found on the ATR/QM Management form, under the Qualification Tab.
  1. ATR/QM – NON-QM Status: This alert triggers when any factor in the ATR/QM test does not meet QM standards. It is most commonly triggered by points and fees listed above, however other factors like DTI or certain loan features can also cause the flag. This flag will need to be review by UW and/or Compliance prior to closing.
  • Closing Disclosure Desk – VDMC

The Closing Disclosure Desk – VDMC is now fully active and avalible for all users to submit initial and revised CD requests. As a reminder, you will need to clear all Integrity Check fails (red errors) prior to being able to submit your request.


  • Volunteers Needed: Hybrid eClosing

We are moving towards expanding Hybrid eClosing and looking for volunteers. If your loan meets the criteria below, your loan is eligible for a Hybrid eClosing:

  1. All previous disclosures have been successfully eSigned via Simple Nexus.
  2. Loan is not closing with a POA or in a Trust.
  3. Loan is not a Bond/DPA.

Please email if you’d like to be involved!


  • Coming Soon… Reverse Mortgages

We are working diligently to bring the reverse mortgage product back in house, and look forward to being able to provide additional details soon!


Appraisals & Addendums – Important Reminder

Please remember to upload your addendums into the appraisal orders.  If we upload an addendum with a sales price that is different than the appraisal order shows, the branch also needs to send a message with the new purchase price, requesting the Appraisals team update the order. The Appraisal department is not authorized to review/read purchase agreement and/or addendums.  ALL ADDENDUMS MUST BE FULLY EXECUTED PRIOR TO UPLOAD for appraiser acceptance.

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Mortgage Messaging & Floify

As a reminder: Mortgage Messaging will be disabled on 6/1/22, and Floify will be disabled on 6/30/22.

Loans that were disclosed in Floify may remain there as long as they close prior to 6/30/22. For those closing after that date, please invite the borrower to use the SimpleNexus portal.

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Jumbo – Documentation

As a best practice, when requesting to review your Jumbo loan,
be sure all income and asset documentation is uploaded to the eFolder for the team to review.

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Joint Loans/Co-Borrowers

Did you know that URLA will accommodate non-married borrowers on the same application in Encompass, since all applications are actually printed out as separate 1003s?  YES!  The trick is with the credit report.

For AUS to run, borrowers on same application in Encompass need to have joint credit report.  If your borrowers are OK with that, we are too!  Be sure you mark the additional borrower JOINT format indicator on the 1003 URLA Part 1.

If your borrowers are married but on separate 1003s in Encompass, that’s OK too!  In that case, they need to have separate credit reports for AUS to run.

It’s an exciting and ever changing world, and we are here to answer questions should you need help! Let know if you need assistance.