VanDyk Mortgage News: June 2, 2023

June 2, 2023

• Halcyon

The time has come!  We are pleased to inform that new loan disclosure packages now include the 8821-form needed to obtain transcripts through Halcyon, and training is scheduled for June 14^th.  Processing staff is required to attend this meeting, though anyone who requests tax transcripts should plan to join.  The training will be recorded, and job aids will be made available in Howee for future reference.

We will continue to include 4506Cs in our initial disclosure packages but will be moving to the 8821 and Halcyon for all transcript orders as our default best practice.  During our May Production Round Table, the operations staff was trained on our new procedure for business 4506Cs and how underwriters are reviewing files to ensure closing packages contain accurate 4506Cs to meet investor delivery requirements.  Please direct any questions to ProductionSupport@vandykmortgage.com

• Valuelink: Appraisal Ordering Update

The appraisal department has updated the appraisal ordering system.  The products (report types) have been rearranged for easier selection when creating your order.  All products are in order by the form number (ex: 1004, 1073, 1004C, 1025 etc.)  If you need a rent schedule or operating income statement, you will now select that product separately from the drop down.

You will see less options for your product type.  If your loan is conventional, you will only see conventional report options to select from.

Attached is the updated fee schedule, as there have been some changes and additions.  If you have any questions, please reach out to appraisals@vandykmortgage.com

• Broker Updates
  • REMN 5 Day HELOC: With the increase of loans being sent to REMN, we wanted to remind you to follow the procedure for brokering these loans.  Step 1 – create an Encompass loan file.  Step 2 – apply a broker loan template set.  Step 3 – request approval from Secondary to broker the loan by completing the Brokered Loan Request Form.  We will not be able to pay any compensation if this procedure is not followed.
  • Quorum Credit Union: Effective June 1, 2023, Quorum will offer up to two percent borrower paid broker compensation on the entire line amount, up to $5,000, per transaction. Compensation will be disclosed on the closing statement and will be paid at disbursement. Join us for product training on Tuesday, June 13 at 2pm Eastern!
  • GO Mortgage: Please note that GO Mortgage has eliminated lender paid compensation as an option for locks effective May 17, 2023. We also have a new account executive: Sean Morrow | smorrow@gomortgage.com | 614-595-2505. This has been updated on the Broker Comparison Tool and the Brokered Request Form in Encompass.

• VOE: Reminders + WVOE Cheat Sheet

As you may be aware, VanDyk has been covering the cost of LendersOne/Work Number VOEs for our branches.  We had opted to do this in an effort to promote the Day One income validation option with AUS, in an effort to speed up underwriting turn times and reduce the processing burden for documentation needs when we were experiencing unprecedented volume back in 2020/2021.  For the past several months,  we have reviewed in various trainings and meetings with sales and staff what documentation can be used in lieu of spending money on a third-party verification, and we believe you all have a good understanding of when a third party VOE is really needed.

Beginning with orders placed on June 16^th, VanDyk will begin to pass these fees along to the branch. The WVOE cheat sheet is attached and is available in Howee.  We have also attached the most recent product and pricing schedule from LendersOne as a reference.  If you choose to pass these fees on to your borrower, be sure you complete a COC within 3 days of incurring the charge.

• Lender Credit Safeguard for Unlocked Files

To better assist our branches and prevent unintentional disclosure of lender credits, we will be implementing a safeguard for lender credits at disclosures. Branches will now be able to preset a limit to lender credits that can be disclosed on an unlocked file without prior approval. These limits can be set on a LO or Branch level and will display on Borrower Summary – VDMC Page 2.

• QC Reminders

We would like to remind everyone of the processes and procedures for our pre-funding QC Reviews as well as provide some helpful information to ensure that the loan transaction runs smoothly.

Regular Reviews – 10% Requirements

1. Selected at Conditional Approval/Resubmittal at least 10 business days prior to the Closing Date – Email will go out to all parties and condition will be added
2. UW will move loan to “Approval” and notify QC Auditor after running final AUS file is ready for QC review.  *NOTE – No “Prior to Approval” or “Prior to Doc” conditions may be outstanding.
3. Loan will not be CTC until QC Audit is cleared.

Discretionary Reviews – MCRs / Manual UWs

1. Selected at Conditional Approval (no TBD) at least 10 business days prior to the Closing Date – Email will go out to all parties and condition will be added
2. An Initial QC review will be completed in any of the following milestones – Conditional Approval and/or Resubmittal
3. UW will move loan to “Approval” and notify QC Auditor after running final AUS file is ready for Final QC review.  *NOTE – No “Prior to Approval” or “Prior to Doc” conditions may be outstanding.
4. Loan will not be CTC until QC Audit is cleared.

Please ensure loans selected for pre-closing QC review are resubmitted ahead of the closing date for final review to avoid any delays in meeting the contract date.  QC Review turn times are 24-48 hours so resubmitting your loan 4 business days ahead of the closing date is recommended.

We encourage you to add the following column to your working pipeline views to help monitor and track your QC selected files.  If you need assistance with adding this, please contact Production Support.

Thank you for your continued partnership in getting loans closed!

• Process Refresher: Closing Request Form + Lightning Close
  As a reminder, the Closing Request – VDMC form must be completed 48hr prior to the closing of your file. This will communicate to the Closing Department how you would like your file to close and will also assist the closer in preparing the file for closing even if the file not yet CTC.
  If your date of closing changes, please update your Closing Requested Date as soon as possible. This will help keep the closing pipeline accurate and help eliminate any unnecessary communication/emails between the branch and the closing department.

Agency Updates

Fannie Mae

• 2023 AMIs will be implemented in DU and the Area Median Income Lookup Tool over the weekend of June 10, 2023, with an effective date of June 12, 2023.  The updated AMIs will apply the 2023 limits to new DU casefiles created on or after June 12.  Casefiles created prior to June 12 will continue to use the 2022 limits.

Freddie Mac

• Freddie Mac has issued the attached industry letter to address recent inquiries related to the reduced availability of Condo Project insurance.  There are no changes to the requirements with the issuance of this letter and is informational only.

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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 Upcoming Events at VDMC.net.

• Deal Desk: Loan Save with Dave: Every Tuesday at 1pm Eastern
• Deal Desk: Income Review with Dave: Every Thursday at 1pm Eastern
• VanDyk Mortgage Newscast: Friday, June 9 @ 1pm Eastern
• Quorum – Broker Training: Tuesday, June 13 @ 2pm Eastern
• Halcyon Training – Obtaining Transcripts: Wednesday, June 14 @ 1pm Eastern – MANDATORY for all LPs
• Iron Sharpens Iron: Tuesday, June 20 @ 11am Eastern
• Production Roundtable: Wednesday, May 21 @ 4pm Eastern – National Dog Party Day – MANDATORY for all LPs and TCs

Value Acceptance in AUS
Just a reminder that Value Acceptance in DU and LPA doesn’t necessarily mean you have a formal PIW.  It is imperative you review your findings to confirm the type of appraisal required and don’t just stop at the green checkmark (a PDR, a Hybrid, etc.).
HOT TIP: Running aiUW after AUS is a great double check to ensure you are requesting the correct appraisal type.

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DACA Status: Reminder

As a reminder, borrowers with DACA status are not eligible via VA or Freddie Mac.

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Optimal Blue: AMI LLPA Waiver

As a reminder, OB was updated to support AMI back in December. The monthly income will be pulled from URLA Part 2 (Total Income), annualized and compared against the AMI for the eligible address. Below are the criteria that must be met to have Conventional LLPA’s waived on a file.

1. At least one borrower on the loan is a first-time homebuyer.
2. The total qualifying income is less than or equal to 100% of the AMI, or less than or equal to 120% of the AMI in a designated High-Cost Area.

Please see attached AMI LLPA Waivers PDF for more details.

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Chase Community Lending

Reminder the Chase Community loan is subject to Chase’s overlays and underwriting turn times.  We have requested exceptions to conditions and escalated issues but have yet to receive any special treatment.  We have not been able to get any rush requests through.  At month end the turn times with Chase have been rolling from 48 to 72 hours.

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Expected / Future Employment / Contract Offer
We have seen an influx in post-closing conditions surrounding future / expected income and employment contract situations.  We love getting our borrowers into homes by being able to allow a borrower to close on their home even before a new job or pay increase has begun. Attached is a helpful comparison tool for all agencies that we borrowed from our friends at Mortgage Currentcy to help you best pre-approve and prepare our borrowers and set the right expectations ahead of time.

For Fannie Mae and Freddie Mac where multiple options are available, please include in your UW cover letter which option you are observing so the loan can be accurately conditioned.

In cases where a paystub IS required post-closing, set a calendar reminder to follow up with your borrowers (it’s a nice time to check in with them and see how they’re doing, too).  HINT – This is Fannie Mae Option 1 and Freddie Mac Option 2.

Extra Credit from Fannie Mae for when a Borrower starts new employment within 30 days PRIOR to the Note Date: