VanDyk Mortgage News: April 7, 2023

April 7, 2023

• Tom VanDyk – The Big Follow Up

We are pleased to present an electronic version of Tom’s book “The Big Follow-Up” to every VanDyk employee who is interested in learning how to Start & Maintain New Relationships with Real Estate Agents…And follow up!  The book is available on VDMC.net under our Shared Department Files, in the Sales folder.

• Upcoming HMDA Field Changes

In an effort to improve the accuracy and integrity of our HMDA data, we are implementing new business rules surrounding HMDA fields. Through our partnership with Lender Tool Kit (LTK), they have recommended and implemented a series of rules that will ensure more HMDA information is entered in each file throughout the life of the loan, rather than after the fact.  Moving forward, the government monitoring section must be completed and AUS will be required to be run on all files prior to Submittal milestone completion.  Additional requirements apply to denials – see the attached (HMDA Details March 2023) and reach out to pipelines@vandykmortgage.com for more information or if you have any questions.

• Initial Disclosures: Important Update

Over the past year, we have worked hard on training branches to complete their own initial disclosures. You all have done amazing!!  We have a few branches that are still sending a few files through to our team to complete. Beginning 5/1/23: if you use the Compliance team to send your initial set of disclosures, the branch will incur a $30.00 disclosure fee. Keep in mind that this will be limited to initial disclosures only. Our Compliance team will continue to issue COC’s and CD’s on the branches behalf. Eligible files include any non-bond, non-brokered, initial disclosure that branches can send through disclosure automation (Disclosure Desk).

Branches can continue to initially disclose their own files free of charge via Disclosure Desk. Training and activation in disclosure desk is available upon request so please reach out to Compliance@vandykmortgage.com for help!

• Reverse Mortgage Update: Longbridge Financial, LLC

Candace Nelson, our longtime contact with AAG, has joined Longbridge Financial. We are pleased to announce our new partnership with Longbridge for reverse mortgage lending.  We will be coordinating with Candace in the coming weeks to ensure our in house reverse team is trained on how Longbridge accepts files into Underwriting and all the nuances involved with our new PA relationship.  We look forward to working with Candace and Longbridge Financial as another Reverse Mortgage in house option.

• Minimum Submission URLA Required Milestones
  As reviewed in last month’s Production Round Table, we will be implementing some basic URLA completion requirement rules to ensure files that are being submitted in to underwriting meet our minimum standards.  We are hosting a training on Wed 4/12 for the Production staff prior to going live with these rules Friday 4/14.  Training reference is attached.
• Updated Product Matrices: HomeReady/Home Possible, Fannie Mae Conventional, VA, Buydowns
  Attached find the updated matrices for Fannie Mae Conventional, Fannie Mae HomeReady, Freddie Mac Home Possible, VA Fixed Rate, and Buydowns.
• Post-Closing Quality Control – How can you help?

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

• Condo Fees: Paying Up Front
  If a borrower is paying for any condo fees prior to closing, be sure there is an invoice from the Condo department to match what is being charged prior to sending the form to accounting. *The VanDyk Condo Department Processing Fee $150 CANNOT be charged prior to closing – ONLY 3rd party fees*
• CALHFA – Dream For All Shared Appreciation Program Update
  CalHFA anticipates that all funds currently available for the Dream For All Shared Appreciation Loan Program could be fully committed as soon as April 10, 2023. However, all loans must be rate locked no later than 4 p.m. EST on April 12, 2023, or when the available funds become fully committed, whichever is sooner. Loan files that do not have rate locks by that time will not be funded.
• Compliance and Production Support: Ticketing System Update
  Starting Monday, April 10: emails sent to Compliance@vandykmortgage.com and ProductionSupport@vandykmortgage.com will be switching to the same ticketing system utilized by AskUW@vandykmortgage.com. You won’t notice a major difference when emailing these teams, but this change helps us to better track the questions that we receive and to provide training opportunities based on the “hot topics” that are asked about.
• Winnow
  We are replacing AllRegs with a new service that includes state specific searchable resources and reference charts.  Your credentials will be issued in the coming days (coming from support@winnow.law) and we will provide you with a calendar invite for training soon.  When you can access the website, you may see a message about unwanted content.  You are OK to Ignore and Continue past this message for this website:

• Essex DPA: LO Training
  Essex/NHF DPA will be holding another training session for LOs to learn more about their program – additional details available here. Training will be Tuesday, April 11 at 2pm Eastern – invitation is attached.
• PS Processing: Resource Folder
  Mary Spirou, our new Production Support Processing Manager, has been sharing helpful guides in our Production Support Processing folder. You’ll find processing checklists for several programs and other useful information – check it out today!
• Quality Matters: Learn About Appraisal Defects
  Fannie Mae, Freddie Mac and investors are all scrutinizing appraisals more and more during post purchase quality control reviews and audits.  See the attached Appraisals – Quality Matters and FNMA Top 5 Appraisal Defects for more information on how we are working to reduce or eliminate the risk for repurchase or indemnification of these loans.
• Coming Soon: VDM Shared Calendar
  Feeling left out?  Want to check and see what awesome meetings and trainings are on deck for the month?  Missing a Zoom link?  Coming soon, we’ll have a new SHARED CALENDAR LINK on VDMC.net!  You can add invitations from this calendar to your own – no more fear of missing out! Be on the lookout for an official announcement once available.

Agency Updates

Fannie Mae

• Fannie Mae is updating the Selling Guide to no longer require that Medical Collections to be paid off at or prior to closing in cases where a collection is required to be paid off.  Fannie Mae has also added an additional section to the Selling Guide where a borrower is a Real Estate Agent and using Earned Commissions for closing.
• Beginning the weekend of April 15, casefiles submitted or resubmitted will have updated terminology for Appraisal Waivers.  You will now see the term “Value Acceptance” used in conjunction with the term “appraisal waiver”.  This will also be updated as part of Fannie’s offering for Property Data Collection.  See the attached DU Release Notes Version 11.1 April Update for all DU messaging updates.

Freddie Mac

• In last month’s News, we released that Freddie Mac had done away with all COVID-19 overlays. Here are FAQs direct from Freddie Mac in relation to that update: Retirement of Bulletin 2020-17, Selling Guidance Related to COVID-19.
• Freddie Mac is following suit with Fannie Mae and issuing Appraisal Flexibilities for New Construction properties where the appraisal is completed “subject to completion per plans and specs”.  Form 400 Warranty of Completion of Construction Guide Form 400 (freddiemac.com) can now be used in conjunction with the photographs named below in lieu of a Final Appraisal Inspection.

VA

• Per last month’s VDM News, the VA Funding Fee has been updated. The VA matrix has also been updated to reflect this change and is attached.

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Upcoming Events and Reminders

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

• Deal Desk: Loan Save with Dave: Every Tuesday/Thursday at 1pm Eastern
• URLA Completion – Submission into UW: Wednesday, April 12^th at 3:30pm Eastern.
• VanDyk Mortgage Newscast: Friday, April 14^th @ 1pm Eastern
• Iron Sharpens Iron: Tuesday, April 18^th at 11am Eastern
• In House Bank Statement/DSCR & Binge on Brokering Refresher Training: Tuesday, April 25^th at 2pm Eastern
• Production Roundtable: Tuesday, April 26^th @ 1pm Eastern – National Static Cling Day

Florida FYI: FL Anti Coercion Disclosure

Florida teams will need to make sure the FL Anti Coercion disclosure is completed in its entirety.
This form requires borrower input: if the borrower does not have HOI at the time initials are signed, they will need to input “TBD” when eSigning the form.

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2022 Tax Return Deadline

REMINDER!  April 18, 2023 is the IRS Tax Deadline for filing 2022 Tax Return.  Please refer to the Tax Return and Transcripts Cheat Sheet and be sure to double check your loans where Tax Returns are required.

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Reminder: Debts Paid at Closing

When we’re paying off debts at closing – we need the address to send those payments to.
We must have a most recent statement for any revolving debt. In the case of non-revolving debt (mortgage, installment, etc.), we need an actual payoff good through funding, reflecting the address of where to send the payment.

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Mortgage Insurance Quotes + Loan Changes

Did you know you should re-quote MI if your DTI, LTV, FICO or number of borrower’s change?
We recommend reviewing the MI quote/refreshing your MI at Submittal, lock, appraisal received, resubmittal, if there is a program change… or if any of the loan qualifying parameters change.

It doesn’t hurt to check!

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Tax Transcript Years

To help you in the initial processing of the file and VanDyk in the final servicing / transfer of the loan to the end investor, we default a few different options for the 4506-C per borrower to eliminate the need for you to have to go back to the borrower and obtain additional forms later. These defaults will be updated based on the tax years that are applicable at application date.

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USDA Help Desk

Did you know AskUSDA is available for your USDA questions? You can reach AskUSDA by phone at (833) ONE-USDA with representatives available 9:00 am – 5:30pm EST weekdays.
The website https://ask.usda.gov/  is available 24/7 and includes live chat agents available 10:00am-6:00pm EST on weekdays. Inquiries can also be sent via email at any time to askusda@usda.gov

As a reminder, please include any scenario responses from USDA with your UW Cover Letter.

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aiUW – Minimum Requirements and Best Practices

In the March Production Round Table, we reviewed some best practices for running aiUW. Check out the recording and notes here, but as a reminder:

Run aiUW once docs are bucketed, AUS has been run, and the basic file structure has been set. This will determine income/credit/assets/property conditions (import ALL conditions!)

Review conditions – ALL conditions, every time! (Tip: sort by added on date to identify new conditions)

Assign applicable buckets to the condition it should be matched to (for aiUW items OR items added by UW)

Mark conditions as fulfilled if you have the documentation to satisfy. (Create comments to UW if you’re missing docs, or if the condition doesn’t apply/should be waived – and why!)

Re-run aiUW before submitting for initial UW and repeat above steps as applicable.

Re-run aiUW when appraisal is received.

Re-run aiUW if loan program/type is changed.