VanDyk Mortgage News: November 15, 2022

Posted on | by VanDyk Mortgage

November 15, 2022

  • Ops Fly-In – Recordings Available

If you were unable to attend the first ever Ops Fly-in, or you were there and want a second look at some of the presentations, you are in luck! Visit https://www.vandykopsflyin.com/videos.html to view recordings from both days.

  • Chase Community Lending Program

We are happy to announce that we have partnered with Chase Bank to offer improved pricing and rates in underserved areas of the country. When you run pricing, Optimal Blue will use the address, zip code, State, and county to determine if the address fits into its community lending program. If the product is in an eligible census tract you will see a loan program that contains “Chase Community Lending” in the name.

This program will be underwritten by Chase, so please take that into consideration when locking and plan for the extra time needed to obtain the conditional and final underwriting approvals from the lender (Amber will handle submitting the file to the lender and applicable conditions will be added into Encompass – there will be no difference in how processing submits or re-submits these files into underwriting).  Eligible products are Conventional 30 Year Fixed, HomeReady 30 Year Fixed, and HomePossible 30 Year Fixed. Attached are chase Community lending guidelines and Chase overlay guides.

 

  • FHFA – Loan Level Adjuster Updates

On October 24, 2022, the Federal Housing Finance Agency (FHFA) announced changes to Fannie Mae and Freddie Mac’s guarantee fee pricing by eliminating upfront fees for certain borrowers as well as affordable mortgage products. They also announced targeted increases to the upfront fees for most cash-out refinance loans. Fannie Mae and Freddie Mac have both issued lender letters of the changes.

    • Effective with loans locked November 7th and after: LLPA’s have been waived on all HomeReady and HomePossible loans. This removes the Fee caps that used to apply on this products.
    • Effective with loans locked December 1st and after: LLPA changes to C/O refinance loans will be effective. Any C/O locked prior to 12/1/2022 must fund by January 13th in order to avoid increased loan level adjusters. Attached are the changes to C/O adjusters.

We are working diligently with Optimal Blue and Encompass to implement other changes mandated by FHFA. No changes were made to AMI requirements for HomeReady and HomePossible. We will have further updates when they are available.

 

  • New DPA Option: NHF/Essex

We are excited to share a new Nationwide DPA option! This program will be priced through Optimal Blue. There is a training for Loan Originators scheduled on Tuesday, November 29 at 1pm – invitation is attached, titled “invite.ics” – or email Production Support to have it sent to you.

    • 3.5% of Purchase Price or Appraised Value, lesser of the two.
    • Available in 46 states (except Kentucky, Massachusetts, New York, and Washington)
    • Highlights: 600 min FICO, no First time homebuyer requirement, FHA only, AMI up to 160%, forgivable and amortized 2nd options, and normal/customary fees (Discount/origination max of 2%).

 

  • Massachusetts Housing: No Longer DPA Partner

We are no longer approved with Mass Housing. Mass Housing has volume requirements and we were unable to meet those requirements. Termination is effective immediately.

 

  • DSCR – Now Available In House!

We are pleased to offer a Retail solution for DSCR loans through Bayview.  These loans will be a hybrid process for underwriting and closing where Bayview will do the underwrite and VDM will handle the closing. Offering a Retail option will provide more pricing and guidelines options to our borrowers.

    • Prepay Penalty not allowed in: AK, IL, MD, MI, MN, NJ, NM, NC, OH, PA, RI, VA. Blanket option is not available.

Any questions can be directed to nonQM@vandykmortgage.com. Please refer to the attached Pricing Guide for tips on pricing these loans in Optimal Blue.

 

  • Exciting Updates to Closing and Funding!
    • Updated Funding procedure for Hybrid eClose:

Starting 12/1/22, Closers will be issuing funding authorization on their own Hybrid eClosings. We have also consolidated the funding review conditions for Hybrid eClosing, allowing for a faster, easier, and more efficient funding review.

 

    • Hybrid eClosing – Default closing option:

Closing will be defaulting to Hybrid eClosings on eligible files if no closing method is specified. Traditional wet sign closings will still be available but must be specifically requested when filling out your Closing Request.

 

  • Same Day UW

With the delay in the auto-notification from Encompass for Same Day UW Review, we are requesting that if your loan is being resubmitted within 1 business day of your closing date, an email is submitted to the assigned Underwriter on the loan file and copying the Regional Underwriting Manager to notify them of the request for Same Day UW Review.  Thank you for your patience while we continue to test our systems.

 

  • Broker Partner Updates

New Partner- FNBA:  We are pleased to offer a new broker partnership with First National Bank of America.  FNBA lends in all 50 states and their service levels with the ITIN programs offered look to be higher than our current offerings.  We will send out more information about this exciting development soon!

Spring EQ-Increase in compensation:  Spring EQ has increased the compensation from 2.0 to 2.5% for their open-ended HELOCs when you select borrower paid.  Lender paid and fixed rate HELOAN / closed end compensation remains unchanged. 2% minimum must be charged on every Spring EQ transaction.  At this time, the compensation is paid to the branch and not the LO.

  • TBDs/Files on Hold – Move your ECDs!

Reminder: for any TBD or file on hold with an ECD of 12/31/22 in Encompass, please push it to 12/31/2023. IT has added in the first payment dates in Encompass through July 2024.

 

  • Updated Product Matrices – Attached
    • High Balance: Our High Balance Matrix has been updated in its entirety for Conventional and FHA programs and VA High Balance has been added.
    • VA: The VA matrix has been updated to reflect a minimum FICO of 580 for Manufactured Homes.
    • FHA: The FHA matrix has been updated to allow for manual UWs on the 203(h) program, and added clarification regarding ineligible AUS findings.

 

  • WVOE Cheat Sheet

A new Written Verification of Employment Cheat Sheet is attached for your reference.

 

  • AMI: What Is It? How Do I Find It?

The Area Median Income (AMI) Lookup Tool provides lenders with a quick and easy way to look up income eligibility by area, property address, or FIPS code. Here’s a link to Fannie’s AMI tool and Freddie’s tool!

  • AccountChek as a Compensating Factor

Just a reminder that the AccountChek report fee charged to the branch is $18 for a 60-day w/ refresh or $21 for a 90-day w/ refresh.  There is no charge if results are not delivered.  AUS will be able to pick up a 12-month rental history if one is present – a separate VOR order is not required.

FREDDIE MAC has introduced positive cash flow as an additional compensating factor when AccountChek is used.  This means your Caution LPA result could flip to an accept if you pull an AccountChek and the results reflect the borrower’s running balances and deposits/accounts are healthy and demonstrate smart money management.  Adding additional accounts can help to strengthen the scenario.

  • Encompass Submittal/Resubmittal Emails – Disabled  

In our effort to make Encompass run more efficiently, we have disabled the automated email notifications upon loan submittal, resubmittal, and other milestones. If you would like assittance setting up a pipeline view to see your milestone status at a glance, please email Production Support.

  • Condo Fees

Effective immediately, we are forgoing the use of InterIsland for review on established Condo Projects.  Our Condo Team has worked closely with InterIsland over the past 6 months to help absorb the heavy volume and move in a forward direction.  With this change, the InterIsland Fee will no longer be charged.  The Condo Processing Fee of $150 as well as any third-party fees for documents will still be invoiced.  We will continue to send New Construction Projects to InterIsland as they always have and invoice accordingly.  We look forward to continuing to serve our Condominium customers.

Agency Updates

  • Freddie Mac

Loan Product Advisor Enhancement – Use of a Borrower’s cash flow in its credit assessment

  • LPA will now assess the Borrower’s cash-flow of deposits, monthly bills, and day-to-day transactions.  If positive cash-flow is identified in the account data, it may impact the credit assessment by upgrading a loan’s Risk Class from Caution to Accept.  To use this enhancement, the following requirements must be met:
    • At least on Borrower on the transaction must have a usable Credit Score as determined by Loan Product Advisor, AND
    • At least 12 months of account data must be transmitted to Loan Product Advisor

Credit Card Reward Points as a Source of Funds: Credit Card Reward Points are not an eligible source of funds to qualify the Borrower when the points are redeemed for cash.  Documentation requirements when the funds are not yet deposited in the Borrower’s account is as follows:

  • Evidence of the Borrower’s ownership of the reward points and their cash value, AND
  • Evidence the reward points are redeemed for cash prior to closing, which may include a direct transfer of the cash to the settlement or closing agent.


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

PLUS: Bonus Training Feast Leftovers!

  • aiUW Refresher: Wednesday, 11/30/22 @ 2pm Eastern
  • SimpleNexus Refresher: Thursday, 12/1/22 @ 2pm Eastern

Total Expert – Training Sessions for new CRM (LOs: you only need to attend one session per class)

Creating Business Growth

Q&A For Loan Officers

 

35th Anniversary Events

March 2 – 4, 2023 | Annual Sales Fly-in

VA Final Inspection Reports

If you are not getting the VA notification email for an upload to the VA portal, this is because once the NOV is issued the VA email notifications stop going out.

Please check the VA Portal for your report listed under Repair Inspection or please send an email to Amber Workman to check on it for you.

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Buydowns: FHA ADP Code

When ordering your FHA Case Number Assignment on a 2-1 FHA Buydown, 797 must be selected as the ADP Code and Buydown must be answered “YES”.

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Assets – LP

When using Freddie Mac LPA for your conventional loans, only 1 month’s asset statement is required versus the standard 2.

The statement must reflect all identifying information and have a starting and ending balance.

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Condo Documents for Brokered Loans

Did you know? The condo department is able to assist with condo reviews/obtaining docs on brokered files!

Some lenders require their own questionnaires but Production Support has the details and the Condo Department can invoice for specific fees

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Reminder: Check your Loan Program/AUS

Please review the Loan Program on your Borrower Summary 2021 form in Encompass to ensure the AUS you are delivering to underwriting matches.  If your program says DU, you should not be running Freddie Mac LPA.

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Underwriting Turn Times

With the launch of Lightning Close and our underwriting department running at a standard 48 hours or less, we will no longer be emailing daily turn times.

UW turn times will be posted on the Encompass Home Page seen below.

If turn times vary between submission/resubmission or purchase/refinances, that will be noted in this section as well.

25 Points
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