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
- Origination
- Processing
- Underwriting
- 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.
- 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.
- Appraisal Re-inspection è Added on LE page 0 ($130 Fee will populate).
- Appraisal Rush Fee è Added on LE page 0 ($200 Fee will apply).
Other Lender Fees – Rules active until Initial Disclosures are sent.
- Credit Report Fee
- TX Attorney Fee > Based on Loan Purpose (TX only)
- Transfer Taxes (only select states)
- Condo Review Fee > Added if property type is “Condo”
- HUD Plate & Foundation Inspection > Added if property type is “Manufactured home”
- MCC Fee > Added if MCC is marked “Yes”
- Bond Fees (1st and 2nd) > 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