VanDyk Mortgage News: February 12, 2025

February 12, 2025

• Third Party Service Updates
  • Floify Verify: We’re excited to announce a new option for Payroll verification that can be requested and fulfilled right in Floify! Floify Verify is available to request a VOIE from your borrower, who will then enter their employer’s payroll credentials in order to send us their paystubs/W-2s. It also supports a final VOE order. We will be demonstrating this order process during this month’s Production Roundtable.
  • Xactus Income Verification: In addition to the Floify Verify change, we are also switching away from Veri-Tax in favor of utilizing Xactus’ waterfall VOE order. This allows us to have access to three different VOE providers with just one login! Xactus Income Verification will also be demoed during Roundtable.  We have put together a VOE Resource Guide that covers ordering VOEs through both of these new providers.
  • Pointserv: We’re happy to share that Corporate will be covering the cost of all Pointserv VOA orders for all of 2025!
  • Flood: We will be transitioning our Flood Report provider from ICE Flood Reports to the Xactus Flood Report X platform. The Xactus Flood Report X platform will be used for both automated and manual flood report pulls. The flood report automation functionality will remain unchanged and will continue to be a lights-out order once an application is triggered, and a subject property is present. Manual orders via Xactus will require Xactus log-in credentials, which utilizes Single Sign On (SSO) for the entire suite of Xactus products (Credit, Flood, Verifications, etc.). Please reach out to Production Support if you need logins for Xactus.
    • The Flood automation will begin utilizing Xactus Flood Report X for applications on or after 02/17/25. The current workflow with ICE Flood will remain available for all loans currently in process.
• Appraisal Revisions

As we continue to settle into our relationship with Valligent as our AMC, we would like to ask that any and all appraisal revisions – outside of the ROV (Reconsideration of Value) – continue to be sent through the Underwriter.  This will keep the Underwriter in the know with any revisions and help avoid delays, duplicate requests, and signing off on appraisals and missing a revised report later in the process.

• Minimum Standards for Submission to UW: Updated

Check out the updated Minimum Standards for Submission to UW here. This has been updated to include No Score loan requirements.

• Marketing Updates

New Monthly Calls to Help You Win! Marketing is rolling out Focused Sessions and Pipeline Power Up Recharge Rallies—two monthly calls designed to help you boost your marketing and sales!

• Recharge Rally – First Monday of the month. Whether you’re starting fresh or need a push to stay consistent, this call will help you build momentum with Pipeline Power Up’s daily actionable activities. Plus, Joe Dishinger will be there to keep you fired up!
• Focused Sessions – Last Wednesday of the month. Get hands-on marketing tips you can actually use, from social media strategies to smarter customer insights.

These happen during our 2:30 PM EST office hours, so you’re already set to join. Tell marketing what you want them to cover by suggesting topics here and see the upcoming schedule below:

It’s not too late to join the Q1 New Year, New Connections Challenge on LinkedIn. Join the Team’s Channel here and comment your name to participate.

• New Hires: Welcome!

Agency Updates

Fannie Mae

Fannie Mae has made multiple updates to DU version 12.0 around Cash-Flow Assessment with Bank Statements, Positive Rent Payment History, and Borrowers with Nontraditional Credit (no score).  If you were able to join us for Deal Desk February 21, you are a few weeks ahead with this knowledge base.  If you were not able to join us, have no fear: you can find the presentation here that covers these updates in detail.  You don’t want to miss this!  It could be a deal breaker.

DU Income Validation – Military Income

Great News!  Fannie Mae has added military income as an income type eligible for validation using an asset verification report (if we haven’t talked enough about PointServ yet, let’s talk about it again).

Hybrid Appraisals
Fannie Mae has expanded on eligibility requirements for hybrid appraisals providing the entire industry with an additional option.  Previously, this was limited to a pilot group only.  Hybrid appraisals include information from a comprehensive property data collection, performed by a trained and vetted third-party property data collector, submitted to the appraiser for the development of a credible opinion of value.  These are completed on Form 1004 (Hybrid) or Form 1073 (Hybrid). Loans that are eligible will be communicated specifically through your DU Findings.

Eligible property and transaction types will closely align with those for traditional appraisals but will not include certain property and transaction types, including the following:

• 2–4-unit, co-op and manufactured homes;
• Construction to permanent financing, HomeStyle Renovation and HomeStyle Energy loans; or
• Proposed construction properties.

Freddie Mac

Freddie Mac has plenty of appraisal updates this month around hybrid appraisals, ACE & ACE + PDR, and appraisals completed “subject-to.”

Hybrid appraisal expansion

Effective for Loan Product Advisor submissions and resubmissions on or after April 7, 2025

Freddie Mac is expanding eligibility for hybrid appraisals as an available appraisal option in the Guide (previously, this was just a pilot group).  Hybrid appraisals will no longer be limited to instances when an ACE+ PDR must be upgraded to an appraisal.

A hybrid appraisal may be completed for the following property types:

• 1-unit properties, including in a Planned Unit Development (PUD) or with an ADU; and
• Condominium Units (attached and detached)

Hybrid appraisals will be available for all transaction types (i.e., purchases, “no cash-out” and cash-out refinance transactions).

Updated effective date for automated collateral evaluation (ACE) and ACE+ PDR eligibility

Effective for Loan Product Advisor submissions and resubmissions on or after February 24, 2025

As previously announced, Freddie Mac has expanded eligibility for automated collateral evaluation (ACE) and ACE+ PDR, effective for Loan Product Advisor submissions and resubmissions on or after March 24, 2025. We are updating the effective date so that the expanded eligibility for ACE and ACE+ PDR will be available for Loan Product Advisor submissions and resubmissions on or after February 24, 2025.

ACE and ACE+ PDR

We have updated our requirements for ACE to provide:

• The Seller may accept an ACE appraisal waiver offer when adverse physical property conditions are minor
• If a PDR has been obtained, the Seller may not accept an ACE appraisal waiver offer

We have modified our requirements related to both ACE and ACE+ PDR to:

• Permit the Seller to provide a more comprehensive valuation product than the minimum required in the Last Feedback Certificate
• Specify that Texas Section 50(f)(2) Mortgages are not eligible for ACE or ACE+ PDR
• Update miscellaneous cross-references

Property eligibility

Effective for Mortgages with Application Received Dates on or after May 6, 2025

We are updating our appraisal requirements to:

• Require that if detrimental conditions exist on the subject property site, the appraisal report must be completed “subject to” an inspection by a professional, and the Mortgage file must include:

• • • Evidence of the required repair, or
    • An inspection report that indicates the condition does not require repair

• Include additional examples of deficiencies that indicate the property is in C5 or C6 condition
• Include additional examples of minor repairs or deficiencies that allow an appraisal report to be completed “as is”

Documentation requirements for verification of completion

Effective for Mortgages with Application Received Dates on or after May 6, 2025

When an appraisal report is completed “subject to” an inspection, the Mortgage file must include:

• The inspection report evidencing that the inspector has determined no repairs were required, or
• The inspection report and an invoice evidencing that all inspector required repairs have been completed

Rental Income Updates

Freddie Mac has updated the requirements for the use of rental income from a non-subject investment property or 2-4-unit primary residence purchase or placed in service in the current calendar year.  The changes are summarized in the table below:

Positive Rent Payment History

Freddie Mac is making enhancements to their positive rent payment history to get more borrowers qualified!  This can update an LPA risk class from caution to accept.  Previously, rent payment history could only be assessed through a third-party asset verification report that identified rent payments.  There is now an alternative path to allow for borrower provided documentation such as bank statements.  Check out Freddie Mac Selling Guide section 5201.1 https://guide.freddiemac.com/app/guide/section/5201.1for full details on eligibility and documentation requirements.

*  *  *

Upcoming Events and Reminders

Miss a training? You’ll find our monthly newscast and Iron Sharpens Iron recordings in the VDM Vault. Department-specific trainings are shared in their respective Seafile folders.

Don’t forget: you can find invitations on our shared calendar under What’s Happening at VDMC.net (all times posted on the What’s Happening calendar are EST)

• Deal Desk: Every Tuesday @ 1:30pm Eastern
• Origination Nation: Every Monday and Thursday @ 12:00pm Eastern
• Production Roundtable: Wednesday, February 12 @ 2:00pm Eastern | REMINDER: Attendance is mandatory for all LPs and TCs/LOAs who perform TC functions.
• VanDyk Mortgage Newscast: Thursday, February 13 @ 1pm Eastern
• Iron Sharpens Iron: Tuesday, February 18 @ 11am Eastern

USDA Loans – Did You Know?!

When your appraised value comes in higher than your purchase price, you can increase your base loan amount up to the amount of the appraised value to roll in closing costs and prepaids… AND reduce your borrower’s cash to close!  USDA bases the LTV on the higher of the purchase price or purchase price versus the lower of the two.

*  *  *