News
All Conforming Programs (2000-00 Series including Portfolio, DU Refi Plus & High Balance where applicable):
· Rental Income / Property Management History: After additional communication with our investors, the guideline requiring 2 months property management history in order to consider rental income has been rescinded. This requirement will only apply if it is required by the AUS findings. Please remember to review findings for documentation requirements.
· Listed Properties: Recently, investors have all changed their guidelines to follow Fannie Mae in this matter. Properties listed in the last 6 months will now be allowed for refinances and will no longer require an exception. Please note the following guidelines:
o The property listing agreement must be cancelled a minimum of 1 day prior to the application date.
o A copy of the cancelled/expired listing must be included in the file.
o In addition, a search of the MLS must be conducted to verify that the property is not listed by another agency.
o For owner occupied transactions, the borrower must confirm the intent to occupy the property.
o For cash out refinances where property has been previously listed, the maximum LTV/CLTV/HCLTV is 70% (or the maximum per the program guidelines).
· Condo Projects: Condo projects in litigation may be eligible for an exception from corporate:
o Litigation can not be structural/defect construction litigation
o Slip and fall / nuisance lawsuits and HOA dues suits may be acceptable.
o Submit all HOA documentation with file to corporate support for review
FHA (4000-00) and FHA High Balance (4090-00):
· Documentation Requirements: For Streamline Refinances, if the borrower has “other” income from non-employment sources, contact corporate support for guidance on verifying employment/income.
· Listed Properties: Properties listed in the last 6 months will now be allowed for refinances and will no longer require an exception. Please note the following guidelines:
o The property listing agreement must be cancelled a minimum of 1 day prior to the application date.
o A copy of the cancelled/expired listing must be included in the file.
o In addition, a search of the MLS must be conducted to verify that the property is not listed by another agency.
o For owner occupied transactions, the borrower must confirm the intent to occupy the property.
o For cash out refinances where property has been previously listed, the maximum LTV/CLTV/HCLTV is 70% (or the maximum per the program guidelines).
VA (4500-00):
· Listed Properties: Properties listed in the last 6 months will now be allowed for refinances and will no longer require an exception. Please note the following guidelines:
o The property listing agreement must be cancelled a minimum of 1 day prior to the application date.
o A copy of the cancelled/expired listing must be included in the file.
o In addition, a search of the MLS must be conducted to verify that the property is not listed by another agency.
o The borrower must confirm the intent to occupy the property.
o For cash out refinances where property has been previously listed, the maximum LTV/CLTV/HCLTV is 70% (or the maximum per the program guidelines).
USDA Rural Housing (4015-03)
· Listed Properties: Properties listed in the last 6 months will now be allowed for refinances and will no longer require an exception. Please note the following guidelines:
o The property listing agreement must be cancelled a minimum of 1 day prior to the application date.
o A copy of the cancelled/expired listing must be included in the file.
o In addition, a search of the MLS must be conducted to verify that the property is not listed by another agency.
o The borrower must confirm the intent to occupy the property.