Category: VanDyk Mortgage News

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.

Topics in the Announcement

June 17, 2021 

• Lending Department Special Memo

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

• New QM Rule: Effective July 1, 2021

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

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

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

• VA Funding Fee: New Automation in Place

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

• New Product: Fannie Mae RefiNow

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

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

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

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

• EMD/Other Credits: Reminders

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

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

• Technology Update: Encompass Enhancements!

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

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

This week you may have noticed these changes:

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

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

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

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

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

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

Topics in the Announcement

  May 20, 2021
 

• Non-Owner-Occupied and Second Home Conventional Fixed Rate Refinances Are Back!

Effective immediately, you may price and lock investment and second home refinance transactions, both rate/term and cash-out. Attached please find our revised FannieMae and FreddieMac Matrices.
  

• TBD Underwrites Are Coming Back!

Starting on June 1^st,  you may begin submitting TBD files for FHA, VA and USDA loans that require a manual underwrite, and for all loans using income from self-employed borrowers.

• Appraisal Fees Increasing June 1, 2021

Recent comments and requests for fee increases by our appraisal panel led us to review the fees we offer Appraisers when sending out appraisal assignments. We compared our fees to VA (our initial pricing model), AMCs, and recent requests for increases and we found we were low and that we need to increase our fees to remain competitive.  Attached you will find the new fee chart for all orders placed after May 28, 2021 and assigned out June 1, 2021.

On the topic of appraisals, we wanted to pass along a helpful article that explains longer appraisal turn times and market conditions: Appraisal Turn Times: Can We Speed Them Up?

• Fannie Mae – VOE/POA COVID Flexibilities Expired

Lender Letter LL-2021-03 attached states that flexibilities related to verbal VOEs and POA are no longer applicable for loan applications dated on or after May 1, 2021.  Standard Selling Guide guidelines now apply to these topics. You can find those guidelines here: VOE – POA

• USDA: Updated Income Limits for 2021

The Fiscal Year 2021 income limits for Single-Family Housing Guaranteed Loan Program were published on May 12, 2021. GUS and the Income Eligibility calculator on the Eligibility Website have been updated with the new income limits.

• Freddie Mac Change to Tax Proration Credits

Effective for settlement dates on or after August 5, 2021: We will no longer be able to use tax proration credits on the 1003 for qualification purposes, therefore they cannot be reflected in the credits on the Details of Transaction.  We will still be able to add these credits to the CD.  Full details are attached.

• New Construction Indicators and Procedure Updates

Last month, we introduced a new loan folder called New Construction to help identify loans that will not be closing immediately. As a reminder, loans should remain in this folder until they are within 60 days of closing.

We have also added an indicator field to the Borrower Summary for you all to use (pictured below). This will help the Lending Teams identify which files in the pipeline are New Construction, and will also facilitate moving through the pipeline as purchase loans (on the occasions when the loan purpose is Refinance instead of Purchase).

We are also updating our requirements for Certificates of Occupancy and Final Inspections to be Prior to Funding items when the subject property is in a full new construction community (for example, homes built by Lennar, DR Horton, MI, etc.). It will be the branch’s responsibility to make sure that these items are received in time for funding and to notify the UW when they are uploaded for review.

Topics in the Announcement

• Jumbo Non-Delegated Loans are Coming Soon!!

We will be rolling out non-delegated Jumbo loans through Truist (created through merger of BB&T and SunTrust) in the coming weeks – Loan Officers and Processors will need to complete training in order to get access to submit these loans to the investor for underwriting.

Truist’s Jumbo guidelines are available to review at https://www.stmpartners.com/Manual/cor/products/CKey.pdf  – please bookmark this site for easy access, as guidelines will change periodically.

Training session invitations and information will be distributed soon!

• Floify E-Sign – Now Approved by DataVerify!

Tax transcript/4506C forms eSigned in Floify outside the initial disclosure package are now being accepted by DataVerify!  If you need a refresher, a how-to for adding Floify E-Sign docs is attached.

• USDA Manufactured Housing Pilot Program – Additional States Available

USDA has expanded the program for existing manufactured homes. States included in the pilot are: Colorado, Iowa, Louisiana, Michigan, Mississippi, Montana, Nevada, New Hampshire, New York, North Dakota, Ohio, Oregon, Pennsylvania, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming. Please see the attached USDA Memo for eligibility conditions for this program.

• North Carolina HFA – Coming May 3!

Starting Monday May 3^rd  North Carolina Housing Finance Agency (NCHFA) loans can be originated. Please note, NCHFA requires that the LO is located in North Carolina – otherwise, they will have to refer the loan to an originator in NC.

Please see the NCHFA Launch attachment for additional information. Lock form is also attached. Additional resources and guidelines are available at https://www.nchfa.com/homeownership-partners/lenders/forms-and-resources

• VDM to VDM Refinances

When refinancing a mortgage through VanDyk, the payoff must be dated within 10 days of closing. As a reminder, you can email ServiceMyLoan@vandykmortgage.com for payoff requests.

To roll escrows over to the new loan, the signed Escrow Rollover Agreement must be sent to the Servicing department with the payoff request.  When escrows are rolled over, any refund due to the borrower for their existing escrow account will be applied to their principal balance instead of refunded to them after closing.  The Escrow Rollover Agreement form can be printed from Encompass.

• Property Address – Abbreviation Clarification

When entering property addresses, please do not abbreviate or shorten any city names.  It is acceptable to abbreviate street suffixes such as St, Ave, or Blvd.

• Mercury AMS – System Updates

First, the Mercury product list has been updated to include “Est Value UNDER $750,000” and “Est Value OVER $750,000” for Conventional SFR and Conventional Condo options. The price list has been updated and is attached.

Second, Mercury is implementing a change that will affect email notifications on or after April 21, 2021. To protect borrower privacy, the name of the borrower will be replaced by the word “Borrower” in email notifications sent from the platform. In addition, if the email subject line contains the borrower’s name and the email body contains the loan number, the email subject line will be replaced with the subject property’s physical address.

• New Mexico Housing – HOI Deductible

The Homeowners Insurance Deductible for NM Housing cannot exceed the lesser of 1% or $1000.

• Cryptocurrency as an Asset

Cryptocurrency must be documented like any other market-based asset, and is acceptable for use as an asset with Conventional financing. AccountChek is the best option to document these accounts whenever possible.

• URLATeam Inbox Retiring 5/1

Starting May 1, any emails sent to URLATeam@vandykmortgage.com will automatically forward to the Production Support mailbox. We appreciate all the questions and feedback we received in March and April!

VA Refinances – Initial Disclosures

As a reminder on VA refinances, information must be completed prior to the initial disclosures being requested.

The Cash Out Refinance Tab needs to be filled out with the existing loan and proposed loan figures as well as the selection of one or more benefits.

Estimated figures are allowed for the initial disclosure but must be finalized for the closing package.

Also, the Qualification Tab will need previous loan info as well as:

• If Loan Program is IRRRL the loan code (highlighted below in yellow) needs to indicate IRRRL as well.
• The existing loan date is the date the borrower actually made the first payment, not when it was scheduled to be due by. UW will confirm this date.

Topics in the Announcement

March 18, 2021

• Lien Searches on Free and Clear Properties

We can now help with your lien searches on free and clear properties.  To request a lien search, please email Production Support with the borrower name and loan number.

• FHA Single-Unit Condominium Questionnaire

Attached is a copy of the new FHA Single-unit questionnaire.  It can be used immediately, but mandatory for case numbers assigned on or after May 17, 2021.   The attached Mortgagee Letter explains some of the changes to the form, however these changes do not alter any requirements found in the 4000.1.

• URLA Update: Purchases with TBD Address

On Purchase files, TBD will be the default setting in the subject property address field. When you are ready to add the Subject Property Address, make sure the ECD is also updated for the data to save. You can find the ECD on Borrower Summary – 2021. (If you do not enter an ECD, the address will revert to TBD.)

• Unrequested Disclosures – Due per TRID Timing

The Origination Compliance Department needs loans due for initials and rate locks to be requested for disclosures in a timely manner, so going forward we are making the following procedural changes as a due date is approaching:

• Day before due date:
  • Reminder email sent to branch requesting submission of LE 0/4 before the end of the day.

• On Due Date:
  • If LE page 0/4 has NOT be submitted Compliance will work the file work the file and complete any missing data.
  • A proforma LE/CD will be sent to branch to review for any last-minute changes.
  • Approval of the Proforma is due by 2pm (in the LOs time zone), if no approval is received by 2pm the disclosure package will be sent to the borrower unapproved.
    • All missing/incomplete data will be disclosed as worst case if no response from the branch is received.
    • Revised Initial disclosures will be difficult to accommodate, revisions will need to be made via COC requested through LE page 4.
    • Files without an active eConsent will be sent via US Mail.
      

• Denied/Withdrawn Files:
  • Please inform Compliance and Pipelines of denied or withdrawn files ASAP, so disclosures are not unnecessarily sent on files not moving forward.

• Broker Files:
  • Broker files will be disclosed by the broker, however in order to verify compliance with TRID timing a copy of the Broker’s disclosure is required in the eFolder prior to the due date.

• Chenoa Sales Training and Additional Information

If you missed the Chenoa Sales Training on 3/10, you can access the recording by clicking here (use Access Passcode: Chenoa1!). Please feel free to reach out to our Chenoa rep Cari Zwick with any questions about the program at 630-301-2222.  Or you can click this link to schedule a follow-up meeting with her: Cari’s Meeting Link.  Attached find Secondary’s memo regarding Chenoa locks and pricing, and a job aid for setting up subordinate financing.

• URLA 2020: Common Errors and Job Aids

DU “Underwriting Checklist Errors” and LP “Partner Errors” can be double-clicked to see additional information about the error. Attached you’ll find a helpful hints PDF that also compiles the job aids that have been sent out. All URLA guides created by the URLA Team have been uploaded at urla.askvandyk.com (if you need access to AskVanDyk, email Production Support). Please continue emailing URLATeam@vandykmortgage.com with your questions!

Bond Loan Rushes

As a reminder, we cannot close bond loans as a rush.

Bond Cutoff is 10am EST 48 hours prior to the ECD.

Compliance Reminders

1. Branch Fees – Make sure to SAVE!
   1. Remember your branch fees will populate in your file upon SAVE. When you first apply your Loan Templates you will see generic closing costs until you save your file and your specific branch fees will appear.

2. Fee Overrides
   1. To accommodate any special circumstances, we have implemented Fee Overrides on LE page 0 which allow fees to be changed. Checking the box next to the corresponding fee will override the new DDM fee rules and allow you to save your file without fees reverting to their original amount. **Overriding the Processing, UW, and Application fees is limited to branch managers.

Fee overrides should be used sparingly. If your Branch’s fee rules are producing the desired fees, please reach out to Ryan VanDyk (rvandyk@vandykmortgage.com) for assistance.

3. Appraisal Fee – Driven by Loan Data
   1. The new Appraisal Fee rule is dynamic based on loan data and will change the appraisal fee based on the following loan factors:
      1. Subject Property State
      2. Loan Type
      3. Property Type
      4. Property Occupancy
      5. # of Units
   2. Please Note – The appraisal fee will not populate correctly (if at all) until all the above factors are completed and the loan is saved.

Topics in the Announcement

• URLA 2020 Goes Live Companywide the Weekend of 2/27

As of 12:01AM on Saturday, Feb 27, 2021, all new loans in Encompass will be started on the 2020 URLA form. Beginning with disclosures 3/1/21 or after, loans must be disclosed using the new form, and AUS will need re-run with the new application format. If you need assistance toggling to the 2020 URLA form please make sure you reach out to URLATeam@vandykmortgage.com for assistance.

• Chenoa Fund Program is Coming Back

Chenoa Fund is a down payment assistance program whose mission is to increase nationwide affordable and sustainable homeownership, with a focus on creditworthy, low and moderate-income individuals.  Pricing for Chenoa will be available on March 2, 2021.   They offer three FHA programs along with FannieMae HomeReady and standard FannieMae Conventional.  A minimum credit score of 640 is required for all programs.  Sales training will be scheduled for the first week of March.   Their most recent Lending Guide is attached and information is also available at Chenoa Fund Down Payment Assistance Programs     https://Chenoafund.org

• Renovation Lending

Effective with loan applications taken on or after March 1, 2021, Renovation Loans will only be available through one of our Broker Partners.  Currently offering Renovation Lending is AFR www.afrwholesale.com , Plaza Home Mortgage  www.plazahomemortgage.com and Michigan Mutual  https://Michiganmutual.com .

• FHA Dual Purpose Condo Questionnaire – For Units in Approved FHA Projects and Single-Unit Approvals

Attached please find FHA’s dual purpose condo questionnaire.   This questionnaire replaces the questionnaire currently being used for units in projects currently approved by FHA.   For FHA approved projects, only Section 3 needs to be completed.  For FHA Single-Unit approvals, the entire form must be completed.   HUD-9991 Condo LL-SUA Questionnaire 1_30_2020.fillable

• Citizenship Guidelines Revised

Our Citizenship Guidelines have been revised to reflect FHA is now also an acceptable source of financing for individuals accepted under the Deferred Action for Childhood Arrivals program (DACA). Citizenship Policy February 18, 2021

• Jumbo Loans
  

Thank you to everyone inquiring about the status of the jumbo loan product as well as for leads on investors. We are very excited about a new hire starting in March who comes with non-conforming experience and once he is up and running with VDM and our systems, and trained on the investors and guidelines, we will announce the rollout of the new product. Our target date for announcing the new product will be with the April Lending Announcement – stay tuned for further details!

• Fee Templates – DDM

The following fees are now governed by our new DDM Rules:

Branch Fees – Rule active through Closing

1. Origination
2. Processing
3. Underwriting
4. Application Fee

If a credit is need on branch fees, please request a lender credit be added rather than having the fee removed.  If your fees are incorrect, or you have a special circumstance, please contact Ryan Vandyk (rvandyk@vandykmortgage.com) for assistance.

Appraisal Fees – Rule active until Initial Disclosures are sent.

1. Appraisal Fee è Changes with loan data (State, property type, loan amount, loan type, etc.)

**Please Note: The Appraisal Waiver Received? field (on LE page 0 & Borrower Summary – 2021) will override the appraisal fee rules when marked YES and allow fees to be removed and not re-populate upon save.

1. Appraisal Re-inspection è Added on LE page 0 ($130 Fee will populate).
2. Appraisal Rush Fee è Added on LE page 0 ($200 Fee will apply).

Other Lender Fees – Rules active until Initial Disclosures are sent.

1. Credit Report Fee
2. TX Attorney Fee > Based on Loan Purpose (TX only)
3. Transfer Taxes (only select states)
4. Condo Review Fee > Added if property type is “Condo”
5. HUD Plate & Foundation Inspection > Added if property type is “Manufactured home”
6. MCC Fee > Added if MCC is marked “Yes”
7. Bond Fees (1^st and 2^nd) > Loan Program Specific

Reminder – These rules fire upon SAVE. These fees will remain editable by all parties but will revert back to their original value upon save if the rule is active. Please be sure to double check any fee changes after you have saved your file to prevent any issues, especially if you have not saved prior to exiting a file.

If your fees are incorrect or you have a special circumstance, please contact Ryan VanDyk (rvandyk@vandykmortgage.com) for assistance.

• Non-Borrowing Parties/Spouses – Rescindable Transactions

As a Reminder: For Primary Refinances, all non-borrowing spouses and/or any non-borrowing party with ownership interest in the property (with the right to rescind) needs to sign the initials CD 3 days prior to closing as well as any redisclosed CDs prior to closing. This procedure only applies to rescindable refinances.

We have added automatic reminder emails to be sent on files that could potentially have a non-borrowing party on the loan. If you receive one of these reminders, please verify if your file will have an NBP/NBS and if needed provide their name, email, and eConsent (if eSigning) as early as possible to prevent any delays in disclosure.

Please also be sure to review your Title Reports as soon as they are available to identify any additional parties listed on title that may fall under this rule as well.

Below is how the NBS contact information should look inside of the file contacts for them to receive a CD when the borrower does. Only the highlighted data is required. Their DocuSign link will be sent to them in a separate email, even if they share the same email address as the borrower, please make sure the NBS is aware this will be coming to them.

• Freddie Mac Home Possible Reduction in LTV

Effective for Mortgages with Settlement Dates on or after April 1, 2021 – Properties with 2-4 units have a maximum LTV of 85%.  Revised Matrix is attached. Freddie Mac Home Possible February 2021

• New GUS Goes Live on March 1, 2021.  Be prepared.  Avoid closing delays!!

On Friday, February 26, 2021, the existing Guaranteed Underwriting System (GUS) is permanently retiring. The URLA changes and “New GUS” will become effective March 1, 2021. The current and new versions of GUS will not be in service simultaneously, it is essential to understand the processes and procedures involved throughout this changeover.

The most important takeaway is that your USDA loans will need resubmitted to New Gus on/after March 1 if a Conditional Commitment had not yet been issued by the Feb 26, 2021 deadline put in place by RD. If your loan was disclosed on the 2009 URLA it will need to be manually entered into the “New GUS” system, whereas loans originated on the 2020 URLA may be exported from Encompass and uploaded to “New GUS” much like before. This will have to be completed by the LO/TC/LP regardless of where the loan was at in the process if a Conditional Commitment was not issued by 2/26, and New GUS findings will need to be resubmitted to Underwriting so loans may be submitted to RD for a Conditional Commitment

Please contact Production Support if you have any questions. USDA NEW GUS HB-1-3555, Chapter 9

Topics in the Announcement

Non-Borrowing Spouses, must sign the initial CD for rescindable refinances:

For Primary Refinances, all non-borrowing spouses and/or any non-borrowing party with ownership interest in the property (with the right to rescind) needs to sign the initials CD 3 days prior to closing as well as any redisclosed CDs prior to closing. This procedure only applies to rescindable refinances.

Please ensure the non-borrowing spouse/parties name, email, and eConsent (if eSigning) is provided as early as possible to prevent any delays in disclosure.

Smart Fees & Transfer Taxes

To streamline the initial disclosure procedure across all states, the compliance team will begin relying on and disclosing the transfer figures that are pulled in by Smart Fees.  Compliance will continue to double check the figures are accurate, but will no longer convert the transfer tax figures to Encompass equations.

Most states will not notice any change in procedure, but those operating in Florida will see a difference in how the transfer taxes are mapped on lines 1203, 1204, and 1205.

Encompass:

• 1203 = Empty
• 1204 = Doc/Mortgage Stamps & Intangible Tax
• 1205 = Transfer Deed Tax

Smart Fees:

• 1203 = Intangible
• 1204 = Empty
• 1205 = Doc/Mortgage Stamps & Transfer Deed Tax
  • Who pays (buyer or seller) for the Transfer Deed Tax can be determined when running Smart Fees.

Dynamic Data Management (DDM)

DDM is an Encompass feature that allows us to pre-set loan data based on loan criteria.   It can also be used to update mortgage insurance data as loan factors change.

Branch Fees: We will be using DDM to pre-set the 800 level branch fees based on the User Organization Code (OrgID) assigned to each branch.

DDM rules function differently than the Business Rules we are used to in Encompass.  They do not instantly change data, but rather will only fire upon save, and rewrite data during the saving process.  When activated for the 800 level fees, those fees will be editable for the branches, but if altered from the original specified amount, the rule will overwrite any changes and return the fee to the original amount upon saving.  DDM rules can be overridden on a loan level, but will require management approval to do so.

The following fees will be governed by this rule once active:

• Origination Fee
• Processing Fee
• Underwriting Fee

We will begin to roll this out in the coming weeks.

        Mortgage Insurance:

On Conventional loans, DDM will still allow the PMI premium to be edited by the branch, but will auto-populate the supporting data such as number of months needed, and the cancellation at 78%.  Government loans are being tested, and more information will be provided once available.

Manufactured Home Tags

New manufactured homes contain both interior and exterior labels.   Over time, either or both may be removed by the owners.   When missing, we must verify the information from a company called IBTS.  https://lvr2.ibts.org/#/LandingPage  Their website calls the document for the exterior plate a “Label Verification Letter” and the interior plate the “Data Plate/Performance Certificate.    If both are missing there will be two underwriting conditions.   The conditions in Encompass have been reworded to match what the documents are called on the IBTS website.  We hope this change will make it clear the document(s) required for the loan.

Floify E-sign

Floify provides an in-house e-signature solution supporting customized fields from both the borrower and lender side and beginning February 1, 2021, the Floify E-Sign solution will replace DocuSign as the available function for “one off” documents (letters of explanation, appraisal delivery, etc.) requiring any e-signature.

**NOTE** Initial Disclosures and Re-Disclosures will be issued by the VDM Compliance Team through the DocuSign extension we have connected with Floify.

Loan teams can create an e-signature request directly in the borrower’s loan flow very similar to how you do now.   The loan’s borrower(s) will be notified that there is a new e-signature request awaiting their attention, and the borrower(s) will be prompted to login to their Floify account, which will then identify their signature role.

Once an e-signature request has been completed by all recipients, the document will be delivered to the yellow pending bucket in the Floify loan flow to await final review and approval.  Once accepted you will need to take the additional step of pushing the e-signed document into Encompass, it will not automatically push.

Attached is a tutorial on how to install Floify E-sign and create one-off Floify E-sign requests: Floify eSign Updated Training 1.19.21   Following is the link to the Floify Help Center which also provides a tutorial – but you do have to login to access it.  Please reach out to Production Support for assistance or with any questions.    https://help.floify.com/hc/en-us/articles/360048246912-Floify-E-Sign-Tutorial

FHA Case Number and Appraisal Transfers

There is significant information needed both by us and the other lender to successfully complete a transfer of an FHA Case number and appraisal.  Attached is a new form that can be used to obtain a transfer from another lender to VanDyk.  Also attached are updated instructions for transfers both from and to VanDyk Mortgage. FHA Appraisal Transfer Instructions updated 1-21-21 – FHA Case Number Transfer from another lender

Freddie Mac Matrix LTV’s updated to mirror Freddie Mac maximums

Revised matrix is attached: Freddie Mac Fixed Rate and ARM Conventional Matrix January 21, 2021

2020 W2’s

Loans closing on or after 2/1/2021 require the 2020 W2 or the year-end paystub.  Applications taken after 1/31, the 2020 W2 will be required prior to closing.

FHA Streamline Refinance Max Mortgage Worksheet

Attached please find an updated FHA Streamline worksheet with an additional line added to allow inclusion of escrow shortage and late fees: FHA Streamline refinance Worksheet 1.21.21

Income Calculation Worksheet

Attached please find our Income worksheet that has been updated to reflect 2021: 2021 Income Calculation Worksheet

Cutoffs

The updated Underwriting and Closing cutoff times are as follows:

Purchases:

• Underwriting = Resubmitted by 4pm 4 business days prior to ECD.
• Closing = Clear to Close by 8am 24 hours prior to your ECD.
  • Reminder, please be sure to have the following if close to cutoff:
    • Finals in the file (VOEs, HOI Re-verifications, etc).
    • No outstanding conditions
    • Schedule closing for afternoon on ECD if possible.

Refinance/Bond/Renovations:

• Underwriting = Resubmitted by 4pm 5 business days prior to your ECD.
• Closing = Clear to Close by 8am 48 hours prior to your ECD.

Moving an ECD – Request must meet cutoff:

If your loan file does not meet the above cutoffs your ECD will be adjusted by the pipeline manager (Amber Workman) or the closing department. Once your file is CTC you can request your ECD to be moved up, however the new ECD must meet the above closing cutoff at the time the request is made. Closing needs a minimum of 24hrs to accurately work a file once CTC.  So even if your file is CTC, if your ECD is inaccurate and needs to be moved up, the request to do so must be submitted by 8am 24hrs (Purchase) to 48 hours (Refi/Bond/Reno) prior to your ECD to be accommodated.

Wet Signed Docs – Timing Requirements

As a reminder, we require all time sensitive documents (LEs, CDs, TX 12 Day notice, etc.) wet signed by the borrowers to be uploaded into the eFolder before the document timing restrictions take effect. Given the lack of tracking/validation with wet sign documents Closing/Compliance will rely upon the eFolder upload date for timing purposes.

Tax Return and Transcripts Cheat Sheet updated for 2021

Attached please find our updated Cheat Sheet with guidance on tax returns and transcripts required based on application and note dates: 2021 Tax Return and Transcripts Cheat Sheet January 2021

FHA to Permit DACA Status

Effective January 19, 2021 FHA is permitting individuals classified under the “Deferred Action for Childhood Arrivals” program (DACA) with the USCIS and are legally permitted to work in the U.S. are eligible to apply for mortgages backed by the FHA.   See attached FHA Info #21-04: DACA SFH_FHA_INFO_21-04

USDA Asset Accounts

 Two months statements for all/any asset accounts are required for the borrower, as well as an non-borrowing household member for review of possible income.

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Hazard Insurance – Proof of Payment

 Reminder – Proof of payment is required on all current HOI policies if the premium is not being collected on the CD.  If no proof of payment is available, the full premium will be collected on the CD at closing.

Also, if the current HOI policy is expiring before the first payment due, the new premium amount will need to be collected on the CD.

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Fannie Mae HomeStyle Renovation Loan LTV’s reflected by Encompass

The LTV shown at the top of the page in Encompass and also on the Transmittal Summary are not calculated correctly by Encompass.  You must rely upon the LTV reflected by the AUS in determining the required PMI Coverage etc.

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Bond Loans

Flood policies must be NFIP for bond loans.   Private flood policies are not acceptable.

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MSHDA

MSHA requires a Declaration Page for hazard policies (and also evidence of payment as published in the December announcement).

Please also note, they are currently 45 days out on reviews.