Category: VanDyk Mortgage News

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 productionsupport@vandykmortgage.com or ITHelpDesk@vandykmortgage.com 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 jfavazza@vandykmortgage.com or at Pipelines@vandykmortgage.com.

• 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 afavazza@vandykmortgage.com

• 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 closingcoordinator@vandykmortgage.com 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 JumboLoanReview@vandykmortgage.com 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 productionsupport@vandykmortgage.com know if you need assistance.

April 15, 2022

• Production Support: Department Update

We are pleased to announce the addition of Kristine Kuss to the Production Support team!  Kris has been with VanDyk for nearly 8 years and her experience in processing and underwriting along with her extensive knowledge of the VanDyk systems will bring another level of service to the department.  Please be sure to email productionsupport@vandykmortgage.com or complete a support ticket should you need assistance.  Our menu of services and other details are attached.

• Brokered Loans: New Lender and Reminder

Flagstar Bank

We will be adding Flagstar to our approved broker partner list for their one time close construction option.  They have renovation loan options as well. Training information will be forthcoming.

Disclosing Brokered Loans

As a reminder, our best practice is to keep all broker loans as TBD in Encompass.  Once the Lender has disclosed the loan and we have confirmed the package is signed, the address will be added to your Encompass file and the loan milestone moved to the next applicable stage.  In an effort to reduce unnecessary compliance issues and headaches, you will not be able to enter a subject address on any purchase transaction when the broker purchase template is applied to your Encompass file.  This is totally OK, the address will be added to the file for you once the loan has been reviewed, approved to be brokered, gone through any needed prequalification steps and disclosed by the lender.  Please contact productionsupport@vandykmortgage.com with questions.

• Extended Lock Policy Update

We are now offering lock periods up to 330 days. Updated Extended Lock Policy is attached. This policy has been revised to only be available on Primary residences, and now includes some state restrictions.

• Extended lock policy is not available in MS, NY, NC and WA.

• Condo Approvals: Update

As we work to continuously improve our Condo Processes and customer experience, we will begin utilizing our long-time condo underwriting partner Interisland for underwriting of all our Condo Reviews.  This change will allow us to offer the processing of the document collection once again in the condo department effective April 25, 2022.

To identify condos earlier and avoid delays in this purchase driven market, we are asking for the “Condo Screening Date” to be entered into the Borrower Summary screen at time of Processing Intake or as soon as we have a purchase agreement.

Updated fees for condos are as follows:

InterIsland:

Limited Reviews – $150

Full Reviews – $250

New Construction / New Construction Conversion – $600

Processing – $150 plus any fees incurred in gathering the documents.

• USDA Asset Reserves

During a recent USDA audit, the overstatement of reserves entered into GUS was cited on multiple loan files.  In an effort to prevent this from happening in the future, we are expanding the platform in which this information is shared to be companywide.  For depository accounts, we MUST use the lesser of the current balance or previous month’s ending balance when entering assets into GUS.  Attached you will find the HB-1-3555 Attachment 9-A Page 28 of 28.  Please review the guidance and requirements to be applied to the borrower’s reserves to ensure proper asset figures are submitted to GUS.

• Chenoa Fund: Changes/Suspension

Chenoa will be consolidating their FHA programs into one program called the Chenoa Fund FHA.  Pending the official launch, we are suspending FHA Chenoa Loans effective April 29, 2022, for a short duration of time to get ahead of the changes.  Watch for further updates and re-launch in May.

• VA Form 26-1805

VA Form 26-1805 has been updated to include information pertaining to recent changes in ordering an appraisal. The request includes sufficient information for the VA fee panel appraisers to complete the appraisal. Specifically, more points of contact are being requested for setting the appointment and a better explanation of the assignment and property types. This form is critical in the further development of increased transparency as VA enhances automation for appraisers to issue Tidewater notices, set appointments to review the property, and provide notification that the property has been reviewed.  WebLGY will replace the prior version of this form.  This is informational only and will not change the upfront processes.

• SimpleNexus

Please continue utilizing SNTeam@vandykmortgage.com for your SimpleNexus questions and feedback.

We have compiled our daily Howee’s Helpful SimpleNexus tips into a folder here. Ask Howee for SimpleNexus tips and he’ll link you to them!

• FL Housing Changes

With NEW loan reservations dated 04/04/22, the FL Assist Second Mortgage will be $10,000 for both government and conventional loans. Conventional loans reserved in the pipeline prior to 04/04/22 will honor the $7,500 FL Assist amount. Lender guidelines are available to review at eHousingPlus – Florida Housing.

• Asset Documentation Requirements & AUS Reminder

Fannie Mae updated asset documentation requirements for certain refinances in DU. Assets will not have to be documented when the funds required to be verified are $500 or less. If your refi is eligible, DU will issue a message specifying that assets do not need to be verified.

Reminder: Follow your AUS – especially with regards to assets/funds to close.

• Contract Dates

To stand out in this new purchase market, we are renewing our focus of upcoming Contract Dates and doing everything in our power to close loans by these dates – and if we cannot, that all parties are aware why one had to be extended.  We have invested in the ability to monitor our performance towards this goal, so we need your help in making sure that the correct dates are entered in the appropriate fields as described below.

• • Contract Effective Date: Date the contract goes into effect – depending on the contract verbiage, the effective date may be several days after the contract was agreed to by all parties, to accommodate inspections or other agreed upon requirements (not addendum/extension, initial accepted contract)
  • Contract Closing Date: AKA ECD – settlement deadline, the date the documents are to be signed (not necessarily the funding date)
  • Contract Commitment/Financing Deadline Date: Financing deadline – may not apply in all states. However, if applicable, this is the date the loan must be conditionally approved by.
  • Contract Appraisal Deadline: If the purchase contract has an appraisal contingency or deadline, enter that date here.

• SimpleNexus eClosing Portal

The Simple Nexus Closing Portal is now being utilized for all closing packages. This portal is primarily for the Settlement Agents to download/upload closing documents and will not impact our current workflow for Traditional (Wet Sign) Closings.

This closing portal does support Hybrid eClosing which we are currently beta testing. A hybrid eClosing will allow the borrower(s) to eSign up to 90% of the closing package via the VanDyk Mobile App on the day of closing prior to the actual closing appointment with the settlement agent. We will have more information on the hybrid eClose procedures in the coming weeks.

• Technology Update: Encompass DocViewer

The Tech Committee is excited to announce the rollout of the new Encompass document viewer with cloud storage. It brings significant performance and security enhancements to the Encompass eFolder related to the uploading, viewing, and editing of loan attachments. The new doc viewer eliminates the limitations and issues that occurred with the original Adobe based viewer.  Only files created after the viewer is enabled on April 19th will display in the new doc viewer.  Existing files created prior to the rollout will still display in the old Adobe based viewer.

New Features Overview

• Bookmark navigation panel for navigating through pages in a PDF file.
• Faster loading time for multi-page files. The first page loads immediately so viewing can begin. Other pages load in the background.
• Make multiple edits within a file attachment and save the changes from inside the document viewer.
• The proprietary Print window used in the old document viewer has been replaced with a standard browser Print window.
• Ability to increase or decrease the size of the page thumbnails when editing a file in the viewer.
• Text search capabilities within file attachments.
• Files can now be edited from the thumbnail panel.
• The View Original button has been replaced with a Download Button that provides options to save the original file or the most recent edited version of the file to your computer.

Did You Know?

Paylocity – Send an Impression

As a reminder, Impressions within Paylocity are a great way to recognize your teammates for helping out, doing a favor, or going above and beyond.

Visit Paylocity to send and view Impressions – for when a “thank you” just doesn’t feel like enough.

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Reminder: Suggestion Box

Do you have an idea to improve our workflow, or a change in Encompass that you would like to see and will also help your colleagues? We want to hear from you!

The Suggestions Inbox is LIVE and available to everyone at https://suggestionsbox.vdmc.net/

Please submit your ideas! Suggestions are reviewed weekly by management and we are looking for suggestions with 5 or more votes. Any suggestion implemented as a business improvement that was upvoted by peers or accepted by management will win a $50 gift card.

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Reminder: Protected Docs

(from February Lending Announcement)

E-Folder documents will become “protected” and unable to be edited by staff once an Underwriter marks a document “Ready to Ship”.

Those documents in “Ready to Ship” status will become view only to every other persona, and new document placeholders will need to be added if you need to provide additional documentation within the same category.

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SimpleNexus – Doc Import Pop-up Message

When a borrower completes their disclosure package in SimpleNexus, a pop-up within Encompass will alert the team when the docs are ready to import.

This pop-up will show to any Encompass user, not just the users assigned to the loan. If you click “Yes” they will automatically download to the eFolder.

March 17, 2022

• Jumbo Outlets

To continue to be competitive in the Jumbo market we are expanding our Investor offerings to include US Bank and Redwood Trust, as well as an ARM product with PenFed. With the addition of US Bank and Redwood we now have 6 options available to help you keep an edge with qualification and rate offerings. Our internal Jumbo Investor at-a-glance comparison is updated for US Bank and RWT. This job aid is attached and also available on Howee.

• US Bank’s niche will be price and a AUS driven option for 90% LTV. US Bank is open and available in the product and pricing engine.
• Redwood Trust’s niche will be asset depletion and RSU Income. Redwood will come available in April after VDM completes training on its products and systems. Redwood will be offering a product overview and training for our sales team on Wednesday, March 23 at 1:30PM EST – This training requires registration, please click here to register. After registering, you will receive a confirmation email with the meeting details.
• Final update for this month: Jumbo ARMs are now available through PenFed. Both a 7/6m and 10/6m option are available to be priced through Optimal Blue. We will launch additional Jumbo ARM outlets in the near future.

• NewRez – SmartSeries Products

We are pleased to offer a Retail solution for the Bank Statement and Non-Warrantable Condo opportunity with NewRez!  Introducing the SmartSelf (Self-Employment Bank Statement Program) and SmartEdge (Non-Warrantable Condos).  These loans will be a hybrid process for underwriting and closing where NewRez will do the underwrite and VDM will handle the closing. Offering a Retail option for the Smart Self and Smart Edge products will allow us to better serve our customers and offer a smoother, less confusing process to them, and will also give us the ability to change loan programs more easily in the event we cannot close a loan through Fannie or Freddie (ie, if a condo is non-warrantable).

Please review the following attachments for process flow, program requirements, and guidelines.  Any questions can be directed to nonQM@vandykmortgage.com.

• Brokered Loans: Doctor Loans, OTC Construction, ITIN and more!

We are excited to announce three new broker partners available to send loans to: Go Mortgage, GoPointDirect, and AD Mortgage!

• Go Mortgage: Offers One Time Close Construction loans. Click here for training recording and other resources.
• GoPointDirect: Doctor Loans and other non-QM products. Training recording and matrices available here.
• AD Mortgage: Specializes in New York CO-OP properties and non-conforming condos, foreign nationals, DCSR and some exciting lower FICO options. A training session will be held March 22 at 2pm Eastern, please email ProductionSupport@vandykmortgage.com if you didn’t receive an invitation.

• New DPA Options: Wyoming, Washington DC

Beginning Monday, March 21, we will be able to originate loans with Welcome Home Wyoming and DC Housing Finance Authority. Details on these programs and lock forms are attached.

• Expansion of Appraiser Database

We have decided to expand our current database by approving non-FHA approved and Licensed (non-Certified) Appraisers.  Hopefully, this will give us more options to choose from when placing orders.  Biggest thing you should think about is if you have a file that is close to qualifying and could convert to FHA/USDA, to make a note when you order requesting an FHA approved Appraiser.

• MyVanDyk/SimpleNexus: Reminder

As a reminder, Loan Originator website Apply Now links will be switched to the MyVanDyk/SimpleNexus application on April 1. An additional LO training will be available Monday, March 28 at 2pm Eastern. If you need the invitation re-sent, please email SNTeam@vandykmortgage.com

Previous training recordings are available by asking Howee “Where are the MyVanDyk Training Recordings?” Additional resources and how-to guides are available here and at AskNexus.com.

• Disclosure Desk Updates: Reminder

The below forms are now available for use, and will be the only way to request disclosures for a Loan Estimate or Closing Disclosure come 03/21/2022, as Loan Estimate Page 4 will no longer be accessible.

• Disclosure Desk – VDMC will be used for requesting all your initial disclosures as well as revised loan estimates that are needed for various change of circumstances.
• Closing Disclosure Desk – VDMC will be used for requesting all your CD’s, both initial and revised.

Instructions and flow charts for the above forms are attached for easy reference.

Did You Know?

TBD Locks & Extended Locks

Did you know that VanDyk offers a 90 day lock and shop option for borrowers who are actively looking for homes?
Borrowers get a 90 day lock on a TBD address to find a house and fund the loan. Ask Howee for the TBD lock policy for the full details.

VanDyk also offers lock periods up to 180 days! Just ask Howee about the extended lock policy.

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ValueLink Invoices – Reminder

ValueLink invoices do not itemize appraisal costs. If we have a loan with a rush fee or additional cost, it will be totaled in the Appraisal Fee field on the 2015 Itemization.

Additional fees will no longer be broken out onto their own line items.

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How do I know who is ordering/processing my condo review?

Condo Screening Dates, Before 2/28:

• The old procedures apply, meaning the Condo Dept is processing, as well as underwriting, these reviews like we have in the past.

Condo Screening Dates, On or After 2/28:

• The new procedures apply, meaning the Condo Dept will condition for and underwrite documentation, while processing will order, follow up with, and fulfill these conditions.
• After the Condo Dept’s initial screening, ordering instructions will be emailed to all branch and support staff, and uploaded to “2600 (Condo): Instructions for Processing” as well, with an entry in Notes.

Questions? Chat Frank Concepcion on Teams!

February 17, 2022

• Adverse Status Verification Notice

A new notice will be uploaded to the eFolder for loans that are Closed for Incompleteness or Approved not Accepted. Please see the attached example. This is an internal form that will not be mailed to the borrower.

• New Workflow for Condominium Reviews – Beginning February 28

For all files with “Condo Order/Screening” dates entered on or after Feb 28th, there will be a new workflow affecting the ordering, follow up for, and underwriting of Condo Review documentation. The new workflow is currently being tested, and will involve the following basic structure. Training will be provided at the Processing Round Table next week Tuesday – please email Production Support if you need the invitation.

Basic Workflow Changes:

1. Branch/Processing, will request “Condo Screening” (Borr Summary Screen, as usual).
2. Condo Dept, will screen the file, add UW Condo Conditions, and email the branches with instructions for their order.
3. Branch/Loan Processing, will order, pay for, and receive all condo docs themselves, and upload them to the eFolder. (Condo Dept available to screenshare and answer questions)
4. Loan Processors, will request “Condo Resub” (Borr Summary Screen) when they a have sufficient amount of documentation for Condo Dept to review. They will also “Fulfill” any Condo Conditions.
5. Condo Dept, will review fulfilled conditions within 24-48 hours, update conditions accordingly, and return the file to loan processors for any missing/added documentation requests, and any requests for clarification.
   **Condo Dept, will also email the conditions to the loan processor when the file is “returned” to them after a resub.

• California DPA Program: Golden State Finance Authority

Starting Tuesday March 1st Golden State Finance Authority (GSFA) loans can be originated using the Platinum Program only. Please see the GSFA Launch attachment for more details. Also attached is the required bond lock form.

• Fannie & Freddie – Updated SE Requirements

EFFECTIVE IMMEDIATELY – Fannie Mae and Freddie Mac have discontinued the temporary Covid-19 requirements for P&Ls and supporting bank statements so long as the 2020 and/or 2021 tax return are used in qualification. This guidance may be applied to all loans in the pipeline as applicable, including all government loan products, except when required per standard agency requirements (see seller guides or handbooks for applicable guidance).

• Jumbo Updates

We are opening up Jumbo Loans for loan amounts over $3MM with the following requirements:

• Lending Committee review of salient information (employment/income, DTI, credit history, property)
• LTV Restrictions:
  • $3,000,000 – $3,500,000: 80% LTV
  • $3,500,001 – $4,000,000: 70% LTV
  • $4,000,001 – $5,000,000: 60% LTV
  • $5,000,001+: 50% LTV

• ARM Options

ARM loans are now available for pricing on CONVENTIONAL loan products. There are a few restrictions as these must be sold directly to Chase. Full ARM guidance attached and also available in AllRegs.

• Restrictions of note:
  • Min FICO: 660; all applicants must have a valid credit score
  • Property: No Manufactured (including ADU)
  • Home Ready/Home Possible
  • Appraisal Waivers on Condo or PUDs.
  • Max # of borrowers: 4

• Desktop Appraisals

Fannie Mae and Freddie Mac will begin issuing new appraisal messaging indicating when a loan is eligible for a Desktop Appraisal. Borrowers may still elect to have a full appraisal. Several types of collateral will be ineligible, including condos, coops, manufactured housing, second homes and properties which have resale restrictions.

Freddie’s messaging will begin for loans submitted starting March 6 and Fannie beginning March 19. Fact sheets and announcements are attached.

• 2021 Tax Form Requirements

For loan applications dated on or after 1/31/22, W2s for the 2021 tax year are required, and transcripts as applicable. For 2021 Tax Return requirements, please refer to 2021 Tax Transcript Cheat Sheet, attached.

• Updates to TRID Conditions

We have changed the TRID Review workflow. Compliance will now be completing the TRID review as soon as the file has been Conditionally Approved and locked. If there are any outstanding condtions they will be added to the UW Conditions Tab in the eFolder.

Branch will no longer need to mark their files “TRID Ready” for an additional review from Compliance. Instead, please ensure all TRID condtions are cleared to indicate the file has all required documentation to pass TRID.

• Encompass E-Folder Enhancements – Junk Folders, File Manager and “Protected Documents”

In our effort to continue to improve our Encompass work environment, we have implemented some new E-Folder enhancements.

In production right now, the File Manager/Unassigned is now open to all users to add, edit and file documents, including the Underwriter personas.

We have a true “junk” folder now for documents that will not be used for underwriting. The “Left Side Junk” document placeholder is now only visible to LOs, LOAs, TCs/CSAs, LPs and PAs.

Finally, E-Folder documents will become “protected” and unable to be edited by staff once an Underwriter marks a document “Ready to Ship”. Those documents in “Ready to Ship” status will become view only to every other persona, and new document placeholders will need to be added if you need to provide additional documentation within the same category.

We expect that these enhancements will help improve overall organization of the e-folder documentation and alleviate some pain points uncovered during the workflow review we did in August 2021 with our third party vendor contracted to assist with system improvements. 

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Well & Septic Distance Requirements

FHA revised its property guidelines in 2015 and these revisions supersede guidance issued in previous mortgagee letters with respect to Well & Septic distance requirements.

This DYK is in particular regarding properties in Michigan where FHA had a mortgagee letter from 2000 allowing for reduced distances.

Well & Septic distance waivers may be submitted to the appropriate HOC with the following set of documents, and must be submitted by the DE Underwriter:

1. Water test results including bacteriological and lead
2. Signed letter from borrower, stating the borrower is aware a waiver is required to obtain FHA mortgage insurance
3. Sketch, showing location of well to septic tank, well to drainfield and well to property line.
4. Copy of appraisal showing property does not have access to public water/sewer hookup

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Corporate Tax Returns & Fiscal Year End

Businesses can file income tax returns based on the fiscal year vs the calendar year.  The top of the business return must reflect dates if they do not file their return based on a calendar year.  Fiscal year forms will reflect the year that the fiscal year began.  Fiscal Year Profit and Loss statements will be based on the tax return fiscal year.  i.e.: tax return for 10/01/2020 – 09/30/2021 will be filed on a 2020 form.  Profit and Loss would then be 10/01/2021-01/31/2022.

If we are later in the year and an extension was filed and the return is not due yet, we would need a full one year P & L and the subsequent months P & L as applicable.

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Encompass Keyboard Shortcuts

As demonstrated at the Fly-in, there are many keyboard shortcuts that can be used to navigate Encompass.

The cheat sheet is attached, but you can also find it by asking Howee “Where can I find Encompass shortcuts?”

January 20, 2022

2021 was a follow-up banner year for VanDyk Mortgage. One of our goals in Operations going into 2021 was to put the infrastructure in place in order to scale up the systems which set VDM apart and make this a first class lending shop. Maintaining organization and hierarchy is integral to this goal, and with this in mind we made three underwriting teams – each devoted to a specific regional team of branches. Along with Loree Haugom, we hired Todd Steadman and Mary Dovgin to work with the Midwest, West Coast and Southeast teams. The 3 Regional Underwriting Managers have done an excellent job working with their teams to maintain SLAs, research and resolve escalations expeditiously, and continue to train and promote the VDM culture. As we begin 2022, we are advancing plans to continue improvements with the organization of our underwriting team, and are elevating Todd Steadman to National Underwriting Manager. This will free up Rich to focus on all of Lending and the other Operations and Production teams while giving our Retail Underwriting team and branches a point of contact dedicated to the day to day of Underwriting.

In his capacity as National Underwriting Manager, Todd 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. Todd will work closely with Rich 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.

We have hired Conan Krueger as Regional Underwriting Manager to take over Todd’s responsibilities with the West Coast team. Todd will be working with Conan over the coming weeks to introduce him to the branches he will be working with regularly while he works with training Conan on VanDyk’s day to day systems and routines.

We are looking forward to another great year working with you all, thank you for your continued support and partnership!

• New Jumbo Outlet: Bayview

As discussed on December Ops Huddle we have are opening up with a fourth Jumbo investor – Bayview Loan Servicing. The product with Bayview is an AUS driven product similar to PenFed, and VDM handles the underwriting, closing, and funding of the loan. Bayview has some qualification niches with income sources, specifically related to Asset Depletion where the guidelines are a bit more flexible than what the Agencies typically allow. Bayview is also open to looking at exceptions so if you have a scenario which does not quite fit within the guidelines, but there is strength to the file, we do have the ability to put the scenario in front of Bayview’s lending team for an exception.

Bayview’s Jumbo AUS guidelines overview are available in Howee and you are able to price loans in Optimal Blue.

• HPML

We have been super fortunate for a few years now with a rate market that has been steadily decreasing and stable. Given expectations of the market for 2021 and how volatile the rate market has been to start the year, we would like to remind everyone of HPML requirements.

To know if a loan is HPML or not you need to carefully review your MAVENT reports for the HPML messages, particularly once the loans are locked. Any loans receiving an ALERT for HPML after a loan is locked will require extra review. If you determine that the loan is HPML it is important to review it against the HPML checklist attached to this announcement to ensure that it is still eligible for closing.

HPML guidelines are appraisal driven – the loans cannot close with an appraisal waiver, the borrowers cannot waive their rights to receive the appraisal 3 days prior to closing, and 2^nd appraisals could be required in the event the property is a flip (regardless of loan product type). We have a HPML training that we are making available to all Production and Operations teams so you can refresh on the tools and requirements.

• Freddie Mac “Temporary” Condo Guidance

For all loans closing on or after February 28th, 2022, Freddie Mac is imposing new guidance for condo reviews of all projects with 5 or more attached units, regardless of review type or waiver, regarding the existence of “Critical Repairs”. Though this guidance is temporary, it is in effect until further notice from Freddie Mac.

These guidelines are similar to guidelines recently implemented by Fannie Mae regarding “Significant Deferred Maintenance”. You can find the new guidance from Freddie here: https://my.sf.freddiemac.com/updates/guide/bulletin~2021-38

• Income Calculation Worksheet

The Income Calculation Worksheet has been updated for 2022 and is attached.

• Broker Partner Update: Spring EQ

It has come to our attention that a few loans were brokered to Spring EQ without charging the required compensation.

Spring EQ offers a referral option with no charge but in order to take advantage of that, the borrower will contact Spring directly and apply on their own – VanDyk is not involved in the referral option.

To broker a loan to Spring EQ, 2% LPC/BPC must be selected on all SpringEQ submissions.

• Borrower Summary 2021 – New Fields

Bond Program Information questions have been added to Borrower Summary -2021 Page 2. These fields will be used to collect additional bond program information prior to disclosure.  Not all bond programs will require all fields to be completed.  If your bond program does not require a DPA Type, bond loan amount, or bond interest rate, you may omit these fields.

• Requirements for Updated Payoffs

If any of the below factors are present in your loan file, we will need a new payoff uploaded to the eFolder within 10 days of closing:

• An escrow disbursement is scheduled within 30 days of closing date and not referenced by existing payoff.
• Payoff is 7+ days past its effective date and extends into a new month.
• If loan has been service released to Carrington and we still have a VDM payoff.

• Loan Level Price Adjustments – Update

On Monday, 1/17 Secondary distributed an email update on LLPAs. A copy of the email is attached for your reference.

• Homeownership Course Update

Please note the new link for Fannie Mae’s HomeView course: https://www.fanniemae.com/education This site replaces the prior Framework link.

• Update: Operating Income Statement

Please note that Form 216 is only required on FHA loans.

Agency Guidelines

As a reminder, Howee is linked to agency guidelines – click Program Guidelines from the main menu to search.

We also have access to AllRegs! If you need a login for AllRegs or have any questions about Howee, please email ProductionSupport@vandykmortgage.com

*  *  *

Sarma – Meridian Link & DU

When you change your credit password, don’t forget to update the password on the DU order screen as well.

Failure to update this will result in incorrect login attempts, which may cause your Sarma account to be locked out. Reach out to Production Support with any questions.

Topics in the Announcement

December 16, 2021

• Single-Wide Manufactured Lending

In an effort to support affordable homeownership we are expanding our financing options to include Singlewide Manufactured Housing as part of our product offerings for Conventional and FHA loans. Updated matrices are attached. As a reminder, all product matrices are available by asking Howee or by clicking here.

Highlights of the expanded offering:

• All Manufactured Homes must be classified as REAL Property and meet all typical agency requirements. Effective 12/17/21, VDM will require either evidence the title has been retired OR a legible copy of the title to be retired after closing. This will apply to all Manufactured Homes, not just single-width properties.
• Conventional:
  • Property size: Min 400sf and 12 ft wide
  • Property age: no more than 10 years as of effective date of appraisal
  • Purchase/Rate and Term, Fixed Rate only
  • 95% Max LTV
  • Fannie Mae – must be below 80% AMI
  • No PUD/Condo
  • MH Advantage/CHOICE Home not eligible
• FHA:
  • have a floor area of not less than 400 square feet;
  • was constructed on or after June 15, 1976
  • was designed to be used as a dwelling with a permanent foundation built to comply with the PFGMH;
  • The Structure is designed for occupancy as a Principal Residence by a single family

• Vamba Update

Now that Howee is active, we will be phasing out Vamba (AskVanDyk). All matrices, cheat sheets and other resources will be maintained in Howee. Underwriting escalations will also be handled via Howee (see page 5 of attached user guide). On December 31, Vamba will be turned off. The Howee user guide is attached – please reach out to Production Support if you have any questions about using Howee.

• JUMBO Program Update

This past summer we opened up full correspondent Jumbo lending with Chase and Pentagon Federal CU. Since then, we have closed 30 loans for just shy of 29MM. We would like to thank all of the branches who have been able to sell the loans, and Kelly Sherwood for doing a great job with underwriting and making sure these are all purchased off by the Investors. With this volume on our resume now, we are gaining approvals with new Investors which we are excited to release in Q1 next year. The new Investors will offer us expanded eligibility for the borrowers to continue to grow this segment of our business.

• Broker Partner Update: Greenbox

Effective immediately, we have terminated our relationship with Greenbox. If you need assistance locating a broker partner for a particular scenario, reach out to Production Support.

Employment Related Asset Accounts

Employment Related Assets Fannie FAQ. This discusses when a distribution from a borrower’s retirement assets or employment-related assets may be used as a source of income when qualifying a borrower.

Topics in the Announcement

November 15, 2021

• Aggregate Setup Automation

In order to further streamline the disclosure setup process, we will be implementing new automation that will pre-set the Aggregate Adjustment upon SAVE when aggregate is empty (due date #1 is empty). Once the aggregate is complete (due date #1 is not empty) it will be fully editable by the branch to make any required changes prior to disclosure. This automation is designed to set the due dates and collect the correct number of months for escrows, not to set the monthly amounts needed for PITI.  The branch will still need to ensure the total annual amount of taxes and insurance (in PITI) is correct prior to disclosure.

Below are examples of what will be pre-populating upon SAVE if the aggregate is blank. Please note the due dates will change based on Subject Property State, first payment date, and Purchase Vs. Refi.

Property Taxes:

Due to the differences between each state the property tax automation will be limited to Florida and Michigan during the initial roll out. We will be expanding to additional states as soon possible.

• For Florida, the tax due date will default to 11/1 in the Tax column.
• For Michigan, winter taxes will default to 12/1 in the Tax column and City Taxes to 7/1 in the City Tax column.
  • **Please remember to break out these taxes appropriately to avoid a miscalculation when setting up your file for disclosure**.

Hazard and Flood Insurance:

Insurance will populate differently depending on if your file is a purchase or refinance.

• Purchases will default to collecting 3 months of HOI (and Flood if required) upfront in the aggregate.
• Refinance will default to collecting 6 months of HOI (and Flood if required) upfront in the aggregate.

Mortgage Insurance

12 “1s” will populate (upon SAVE) if monthly PMI is present and will remove (upon SAVE) if monthly PMI is blank.

• Coming Soon: Optimal Blue

We have made the decision to switch pricing engines to Optimal Blue. For those who have been here for over two years, this is a return to Optimal Blue. Beginning December 1, Optimal Blue will be the only active pricing engine for new lock submissions. Please see attached PDF for full details, including training information.

• RefiNow & Refi Possible: Updates

Updated matrices for the RefiNow and Refi Possible products are attached, removing 2-4 unit properties from the eligibility matrix. Only 1 unit properties are eligible for the program.

• Coming Soon: ValueLink AMS

Effective December 1, 2021, we are migrating our Appraisal Department Software to ValueLink Software.  Valuelink utilizes Encompass API integration and is the first appraisal software vendor to go live with Encompass on the Web.  The workflow is same as our current vendor (Mercury) but you will see a more modern look and feel.  Some other benefits are that documents and data will automatically download into Encompass without needing to “pull it in.” You will also be able to request a payment link be sent to the borrower yourself after the initial order. In addition, when you’re ready to send the appraisal to the borrower, you can from Encompass and not request the Appraisal Department to do so.

Attached is a guide on how to use this new platform, and on November 15th you will receive your credentials (should be your Encompass ID).  We will schedule a couple training sessions over the coming weeks.  The system is live – we have processed over 50 orders so far, so you can start utilizing it anytime – but be careful not to duplicate orders.  On December 1^st, all orders will be required to be placed via Valuelink.

• New Documentation and Restrictions on All Fannie/Freddie Condo Project Reviews

In light of the collapse of the Champlain Towers South Condo in Florida, Fannie Mae has published Lender Letter (LL-2021-14): Temporary Requirements for Condo and Co-op Projects (https://singlefamily.fanniemae.com/media/29411/display). The letter outlines new requirements for condominium reviews as pertains to “Significant Deferred Maintenance & Unsafe Conditions”. Though this guidance is “temporary,” there is no published end date for these new requirements.

Effective immediately for all condo projects with 5 or more attached units Condo Dept will be required to further look into, and document, “significant deferred maintenance & unsafe conditions”. This will apply whether or not there is any evidence of litigation, regardless of review type, and will apply to Freddie Mac as well. Please refer to the attached memo and Fannie Mae Lender Letter for further details.

• VA Updates: Effective December 1

VA has increased appraisal fees and extended timeliness requirements in some markets. Several counties across the nation have been identified as High Demand Counties, in which the increased demand for appraisal services has created shortage of available appraisers. Appraisal fees have been increased in these counties to reflect the increased demand. In addition, all re-inspection fees are $150. Please see the attachment for details and to review the states/counties impacted by this update.

• Updated Mortgagee Clause

As a reminder: the mortgagee clause for insurance(s) only has been changed, effective 11/1/21. See attached Servicing Update for full details.

VanDyk Mortgage Corporation

ISAOA/ATIMA

PO Box 1942

Carmel, IN 46082

• Loan Templates

In order to ensure the correct loan templates are being applied to each new loan, we will be removing the old pre-URLA 2020 templates from Encompass. Currently, the majority of users are applying the new ULRA 2020 templates correctly and should have no impact from this change. However, if you are still using the pre- URLA 2020 template sets and would like it converted to any closing cost data please reach out to production support for assistance.

Helpful tip for files with co-mortgagors!

To easily identify the number of borrower pairs/Co-mortgagors on a file, we encourage you to add the “Number of Borrower Pairs” column to your pipeline view.
We have added a pipeline highlighter rule that will turn anything greater than 1 pink.

Topics in the Announcement

  October 21, 2021

• Introducing: Howee!

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

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

• INCREASED Loan Limits – Conventional Financing

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

Notes:

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

• TEXT YOUR BORROWERS FROM ENCOMPASS:

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

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

• REMINDER: Suggestion Box!

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

***

Self-Employed Documentation – Reminder

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

***

Broker Trainings – Recordings

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

Topics in the Announcement

September 16, 2021

• Fannie Mae DU Updates

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

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

• Condo Review Request: Process Update

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

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

• Brokered Loan Updates

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

Below is a summary of the additional services:

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

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

• AllRegs

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

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

• New York MI Override

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

• New York CEMA Refinance

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

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

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

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

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

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

• Servicing Operations: Update

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

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

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

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

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

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

This form will be rolled out in phases:

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

Property Taxes – REMINDER!

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

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

Topics in the Announcement

August 19, 2021

• Jumbo Loans

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

A few important notes –

• ONLY FIXED RATE PRODUCTS are eligible

CHASE:

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

PenFed:

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

• Brokered Loan Process

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

• Credit Report Pull Requirements

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

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

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

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

• Freddie Mac Refi Possible: Coming Soon

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

Technology Update: Encompass Enhancements!

Updates to Previous Enhancements:

Notes

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

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

USPS Address Validation

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

New Features

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

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

Finding the Sandbox tool

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

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

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

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

How are your emails being received?

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

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

Voluntary Flood Insurance: Cannot Be Escrowed

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

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

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

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

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