1. ELIMINATION OF DPA PROGRAMS

Effective Monday, April 14th, REMN will no longer accept new submissions if the buyer is using a Down Payment Assistance (DPA).  This does not include government entities giving a grant.  This decision was based on the mounting evidence that DPAs have between a 200%-300% greater likelihood of default (for recent article, click here).  Existing loans in our pipeline will be honored with no deadline to close, although this is subject to change if the FHA or the secondary market imposes restrictions of their own.

2. PROPERTY FLIPS

Effective Monday, April 14th, REMN will no longer accept submissions if (1) the time period between the seller acquiring the property and the execution of the sales contract is less than one year, and (2) the sales price is increasing more than 25%.  This does not include sellers who are already defined exclusions based on HUD guidelines, such as banks and government entities.  This decision was based on internal delinquency data reflecting an incidence of default for these loans that is more than 300% greater than the rest of the loan population.  We do acknowledge that some loans meeting this criteria do not pose additional risk, so exceptions can be made on a case-by-case basis.  Existing loans in our pipeline will be honored with no deadline to close, although this is subject to change if the FHA or the secondary market imposes restrictions of their own.

If you have any questions, please contact your AE.

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