Effective Monday, November 19th, the following guideline changes apply to all new VA IRRRL submissions:

Loan Amounts <=$417,000 High Balance Loan Amounts
Maximum LTV 100% 100%
Valuation Requirement AVM with 80% confidence score; if score is <80%, 2055 is required. All AVMs and 2055s must be ordered through MMC (REMN’s AMC) Full appraisal
Credit Qualification Not required Required
Minimum Credit Score 640 660
Eligible Property Types 1-unit only 1-unit only
Eligible Occupancy Owner-occupied only Owner-occupied only
Mortgage History 12 months 12 months

IRRRLs submitted prior to November 19 can use an AVM in lieu of a 2055 if the LTV is <=100%.  Additionally, any IRRRL that was already locked or submitted as a “Litefile” can utilize the old guidelines (110% LTV with a 2055).

Please contact your Account Executive with any questions.

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Hurricane Sandy Re-Inspection Procedures

[box type=”info”]Important: Our underwriters will be conditioning for property re-inspections as conditions are cleared and approvals are updated. However, it would be a very good idea for brokers to identify which loans are in the affected areas (as indicated below) and be proactive and order the recertification through MMC on our website as soon as possible. Please note the counties have been updated below.[/box]

Payment of the re-inspections will be as follows:

  • Loans that were CTC prior to Hurricane Sandy (prior to 10/29) – Borrower will be charged for the re-inspection, but they will be fully reimbursed at closing via a lender credit.
  • Loans that were not CTC prior to Sandy – The borrower will be charged the cost of the re-inspection.

The following will summarize REMN’s Disaster Re-Inspection Policy.

DESIGNATED COUNTIES

  • The following is the list of FEMA designated counties that require inspections.    This list is subject to change. Please note the “incident date” to the right of each group.  This is per the FEMA list.
Connecticut Fairfield County, Mashantucket Pequot Indian Reservation, Middlesex County, New Haven County and New London County. Saturday – October 27th
New Jersey ENTIRE STATE Friday – October 26th
New York Bronx County, Kings County, Nassau County, New York County, Orange County, Putnam County, Queens County, Richmond County, Rockland County, Suffolk County, Sullivan County, Ulster County and Westchester County Saturday – October 27th

EFFECTIVE DATE AND WHAT REQUIRES AN INSPECTION

  • Any loan with an appraisal report dated on or before the incident date noted above requires a re-inspection.
  • Any loan with an appraisal report dated after the incident date noted above, must have a specific comment from the appraiser regarding the impact on value and marketability caused by the storm .
  • Loans where no appraisal report is required will still require a re-inspection before it can close.

GROUPS OF INSPECTIONS REQUIRED:

  • Loans that have closed (disbursement date of 11/2/12 and earlier)
    • REMN will order those re-inspections directly through MMC.    There is no need for anyone to do anything on those loans.
  • Loans that have not yet closed and/or have a disbursement date of 11/3/12 and later
    • If the file is not yet CTC:   the broker will be responsible to order a re-inspection report from MMC.
    • If the file is CTC:  we will allow a certification from the homeowner and borrower that there is no damage to the property, in order to facilitate the closing.    The re-inspection must still be ordered, but we will allow the loan to close with the certification signed and dated by the homeowner and borrower – and acknowledged by the closing agent.   If they are unwilling to sign the statement – then a re-inspection will be required before the loan can close.
      • I/We certify that the subject property has not been damaged or adversely affected by Hurricane Sandy.
    • BEFORE ORDERING INSPECTIONS:    If significant damage is confirmed – there is no reason to order the inspection until the damage has been repaired.

INSPECTION REQUIREMENTS – BASIC REPORT IF PROPERTY SUSTAINED NO DAMAGE

  • We will require the Disaster Inspection Report form to be completed.   The appraiser will need to note that there is no damage to the property and there is no negative impact to value or marketability.
    • Note:    “Damage” does NOT include things such as no power to the property and/or debris in close proximity to the property and/or on the lawn.

INSPECTION REQUIREMENTS –PROPERTIES WITH DAMAGE

  • If the appraiser cannot warrant that the property suffered no damage and/or that there is no negative impact to value and/or marketability, we will have to look at these on a case-by-case.    The appraiser will be required to make full comments regarding the extend of the damage – including interior and exterior photos.   Those will be sent to the underwriter to review and make a determination on a case-by-case basis.

 

 

SPECIAL UPDATE:  TUESDAY, NOVEMBER 6, 12:00 PM EST
In spite of our very best efforts, the continuing lack of power and other services to many of our employees’ homes has delayed the restoration of full functionality to our Edison NJ Wholesale Operations Center.  Many key personnel from all departments are still unable to return to work.  Additionally, both our Mount Laurel and Parsippany Wholesale Underwriting Hubs remain without power.
While it was our intention to begin underwriting new wholesale submissions beginning today, current circumstances make it impossible to do so without negatively impacting our ability to review conditions on existing loans; we simply do not yet have the resources in place to effectively do both.  We firmly believe that, given the choice, our customers overwhelmingly prefer that we review conditions in lieu of underwriting new loans.
Further complicating matters is the possibility of again losing power as the result of the large storm system forecast to hit New Jersey tomorrow afternoon.  It is likely that many trees and telephone poles, already weakened by Sandy and Irene, will fall on power lines causing new outages.
Accordingly, we will not accept new submissions until this coming Monday (November 12).  We are confident this strategy is in the best interest of our broker partners and the borrowers themselves.  All of you have come to expect a level of service from REMN Wholesale that exceeds industry standards.  While we regret our inability to accept new loans for the next few days, this sacrifice is necessary in order to stay true to our service credo.
We deeply appreciate your loyalty and patience as we navigate our way through these challenging times.  We are quite pleased with the unexpectedly large number of submissions since the beginning of the week, and will underwrite any loan that was submitted through 5:00pm EST yesterday (Monday November 5).  However, we cannot allocate the resources to underwrite any new submissions after that time.  Further, due to our focus on condition clearance, we cannot promise a specific turn time for the new files submitted yesterday.  Once again, we fully expect to be operating normally by the beginning of next week.
Robertson Davies said:  “Extraordinary people survive under the most terrible circumstances and they become more extraordinary because of it.”  We believe this also applies to extraordinary companies.

Earlier this year, REMN made a strategic marketing decision to begin using the trade name Homebridge in certain aspects of our business. Currently, both our new west coast-based Wholesale Operation (“Homebridge Wholesale”) and our newly-formed Correspondent Division are operating using this trade name (dba). Additionally, certain other internal administrative accounts have begun using email addresses from the domain “@homebridge.com”. The rest of the REMN organization is not using this new dba. This includes our Retail Channel and our pre-existing east coast-based Wholesale Operation (“REMN Wholesale”).

As a result of all this, there has been some confusion, especially on the part of our broker/partners in the wholesale channel.

Our decision to open a second Wholesale Operations Center on the West Coast was based primarily on our goal of increasing overall wholesale volume while simultaneously expanding our geographic footprint.

While both REMN Wholesale and Homebridge Wholesale are part of the REMN Organization, they are two separate Operations Centers. A broker can choose to enter into a business relationship with either, or both. The Ops Centers are managed by different teams, and each employs its own group of support staff from Setup through Closing. A loan in the REMN Wholesale pipeline cannot be accessed by Homebridge, and vice versa. For all practical purposes, they are two separate Wholesale Divisions operated by the same parent company.

We hope this clears up any confusion. Please contact your Account Executive with any questions.

ORIGINALLY POSTED ON AUGUST 16, 2012 (REVISED 9/5)

In order to keep pace with industry changes,  REMN Wholesale is instituting a minimum credit score of 640 for FHA Non-Credit-Qualifying (NCQ) Streamline refinances endorsed prior to June 1, 2009.  This does not affect (1) NCQ Streamlines of FHA loans already in REMN’s portfolio (no score minimum), (2) non-REMN NCQ Streamlines endorsed on or after June 1, 2009 (720 score minimum, among other overlays), or (3) Credit-Qualifying Streamlines.

In order to comply with this requirement, all three scores must be provided for each borrower.  A mortgage-only credit report with scores may be utilized for this purpose.

This requirement is effective for all new FHA NCQ Streamline submissions received on or after August 17, 2012.  However, it does not affect any NCQ Streamline that has been locked, or submitted as either a litefile or full file prior to August 17th.  This only affects wholesale submissions; this announcement does not affect any other lending channel.

Please contact your Account Executive with any questions.

JULY 12, 2012 (REVISED JULY 17, 2012)

MULTIPLE TOPICS

In response to recent market events and the associated unprecedented increase in volume, REMN Wholesale has implemented the changes outlined below. Please read this announcement carefully.

PREFERRED BROKER STATUS
Effective immediately, all “Preferred Brokers” will have access to our “Preferred Broker” ratesheet. Brokers that have not achieved Preferred Broker status must use our standard ratesheet. However, the Preferred Broker ratesheet will be used for all files submitted on or before July 12, regardless of the the Broker’s status. Both ratesheets will be available on our website.

Definition of Preferred status:
Currently, Preferred Broker status is based on pull-through of files submitted during the four-month period beginning January 1, 2012 through April 30, 2012. All approved brokers with a pull-through of 40% (at least 40% of the loans submitted during this time period eventually closed) have been awarded Preferred status. Additionally, all new brokers approved with REMN after January 1, 2012 that did not submit a loan during this time period are awarded Preferred status. Your AE will be contacting you shortly to inform you if you have achieved Preferred status.

Brokers with Preferred Status will be able to continue to submit loans of all transaction types, with no additional restrictions. Brokers with Standard Status will be subject to credit score, product, and transaction type restrictions. Below is a summary of the differences between Preferred and Standard Broker status:

CRITERIA PREFERRED STATUS STANDARD STATUS
Transaction Types All Purchase Only
Minimum Credit Score 640 or program minimum, whichever is higher 680
Ratesheet Preferred Broker ratesheet Standard Broker Ratesheet
Products All products currently offered by REMN Wholesale All except 203K

 

We will continue to monitor pull-through on a monthly basis. The current pull-through requirement for Preferred Broker status is only 40%. However, when pull-through is measured again on August 31, 2012, the requirement will be increased to 45%. The pull-through measured on that date will be for files submitted during the months of April, May and June of 2012. HIgher pull-through rates and other additional criteria to qualify for or maintain Preferred Broker Status may also be introduced in the future. Please be advised that failure to improve sub-par pull-through over time (or dramatically low pull-through at any time) may result in termination.

TEMPORARILY LOCK-IN RESTRICTION FOR FILES NOT YET SUBMITTED
Effective immediately, REMN Wholesale will temporarily not accept lock-in requests for loans that have not been submitted (as either a full file or “Litefile”). Once a file has been submitted as either a Litefile or a full file, the file may be locked without restriction.

INCREASE IN FHA REFINANCE AND 203K ADD-ONS
Effective for all new submissions beginning tomorrow (Friday, July 13), the add-ons for FHA refinances will be as follows:
FHA Streamline Refinances: 100 basis points (1.00%).
All other FHA Refinances: 50 basis points (0.50%).
All FHA 203K Products: 300 basis points (3.00%) above standard FHA (203b) pricing.
This does not apply to any loan that has already been submitted (either as a full file or a Litefile) or is already locked.
REMN Wholesale is extremely grateful for your continued loyalty, and greatly appreciates all additional business you have sent our way over the past few months. Of course, as most of you already know, our focus has been and always will be to provide exceptional service on purchase transactions, including our industry-leading same-day underwriting turntimes for purchase submissions.

If you have any additional questions, please contact your AE.

ADDITIONAL FHA OVERLAYS FOR 2-4 UNIT PROPERTIES

Effective for all new FHA submissions beginning Monday, July 2, the following new overlays apply for all 2-4 unit properties:

  • At least one full calendar year must have elapsed between the Seller’s acquisition date the execution of the Sales Contract.  This does not apply if the Seller is a government agency, a bank, or a bank subsidiary.
  • The subject property must not be in foreclosure, as defined by the listing of a Lis Pendens (or equivalent) in the title binder.
  • The “2-4 Unit Identity-of-Interest Certification” must be executed at closing by the Buyer, Seller, and both attorneys, attesting that there is no relationship between the Buyer and Seller.  This new Certification will be posted on our website by Friday, July 13th.

This Announcement also serves to clarify and memorialize our existing policy governing 2-4 unit properties being sold subject to a Short Sale Agreement:

  • All 2-4 unit properties subject to a Short Sale Agreement must have been listed on the MLS for at least 90 days prior to the execution of the Sales Contract.  If the property is designated on the MLS as an “Exclusive Listing” (meaning that only the Listing Agent has the right to show the house to buyers), the property is ineligible.

These new overlays are in addition to the overlays introduced in Announcement 12-04 for 2-4 unit properties in Illinois, and 3-4 properties in New Jersey and New York.  As a reminder, these are:

  • Maximum DTI 45.00%; and
  • If LTV >90%, then no gifts or grants are permitted.

TEMPORARY WHOLESALE FHA STREAMLINE REFINANCE PRICE ADD-ON

In order to ensure that REMN Wholesale continues to offer industry-leading service on purchase transactions, we are instituting a temporary 75 basis point (0.75%) price add-on for all FHA Streamline refinances.

This add-on is effective immediately for all new FHA Streamline submissions.  It does not affect any Streamline that has been locked, or submitted as either a litefile or full file prior to this announcement.  This only affects wholesale submissions; this announcement does not affect any other lending channel.

To reiterate, this has become necessary in order to preserve our level of service on purchase transactions.  As you would expect, the dramatic increase in the volume of refis was beginning to cause REMN Wholesale turntimes to deteriorate.  We are aggressively increasing our staff in order to accommodate more volume without compromising the service you have come to depend on (including opening an additional underwriting center in Wall, NJ).  Once we have successfully increased our staff, we will eliminate this temporary add-on.

As always, REMN Wholesale appreciates your loyalty and business!

TEMPORARY SUSPENSION OF CONVENTIONAL REFINANCE SUBMISSIONS

Despite the introduction of a temporary .75% price add-on for conventional refinances announced last week (Announcement 12-09), the number of conventional refinance submissions has continued to increase.  Therefore, as part of our ongoing effort to ensure that REMN continues to offer industry-leading service on purchase transactions, the submission of all conventional refinances is temporarily suspended.  This applies to the wholesale channel ONLY.

The suspension does not apply to any loan that has already been submitted (as a full or a litefile) or locked prior to this announcement.

To reiterate, this has become necessary in order to preserve our level of service on purchase transactions. As you would expect, the dramatic increase in the volume of refinances has begun to cause our condition review turntimes to deteriorate.  We are aggressively increasing our staff in order to accommodate more volume without compromising the service you have come to depend upon (including opening an additional underwriting center in Wall, NJ).  Once we have successfully increased our staff, we will again accept conventional refinance submissions.

As always, REMN appreciates your loyalty and business!

TEMPORARY REFINANCE ADJUSTERS

In order to ensure that REMN continues to offer industry-leading service on purchase transactions, we are instituting temporary price add-ons for refinances effective for new submissions beginning tomorrow (June 15th), as follows:

  • 75 bps for ALL conventional refinances
  • 75 bps for government CASH-OUT refinances

Once again, this only affects NEW submissions.  The add-on does not apply to any loan that has already been submitted (as a full or a litefile) or locked prior to this announcment.

We would also like to remind you that we monitor broker pull-through very closely and urge you to ONLY submit files that you intend to close with REMN so we can continue to provide our same day turn-times if your file is submitted before 11am EST.

To reiterate, this has become necessary in order to preserve our level of service on purchase transactions.  As you would expect, the dramatic increase in the volume of refis was beginning to cause our turntimes to deteriorate.  We are aggressively increasing our staff in order to accommodate more volume without compromising the service you have come to depend on (including opening an additional underwriting center in Wall, NJ).  Once we have successfully increased our staff, we will eliminate these temporary refi add-ons.

As always, REMN appreciates your loyalty and business!

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