In response to upcoming CFPB regulatory changes, REMN Wholesale is announcing new requirements for Broker Compensation Elections and a commitment fee buyout option which take effect January 2014.

Broker Compensation Elections for Lender Paid Transactions

Effective January 2014, Broker Compensation election buckets for Lender Paid Transactions will now range from .50% – 2.75% of the loan amount (currently capped at 3.5%).

  • For Brokers currently at 2.75% or below who do not wish to change their monthly election, no action is required.
  • For Brokers currently over 2.75% election, a re-selection is required by January 6th, 2014. If no reselection occurs, the election will automatically be changed to 2.75% for the month of January. The compensation election will remain at 2.75% until that time the election is changed.

As a reminder, compensation election changes are required to be completed by January 25th, 2014 for February changes. REMN Wholesale will continue to allow Brokers to change compensation elections on a monthly basis.

 Additionally, REMN Wholesale will enhance its compensation election bucket options to permit increments of .125 (currently only allowed in .25 increments).

Commitment Fee Buyout Option

REMN Wholesale will offer a new commitment fee buyout option for a pricing adjustment. This option will be available on rate sheets effective January 10, 2014.  The commitment fee buyout will offer an option to include the commitment fee or buy it out which will provide more flexibility to facilitate your client’s needs.

REMN Wholesale will provide further information regarding points and fees test requirements, ability to repay, ECOA Valuations Rule, TILA Appraisal Rule and disclosure changes as they pertain to QM in the near future.

If you have any questions, please contact your Account Executive.

At REMN, Broker compensation is currently set at lock date. Effective December 1st our policy will change to reflect submission date.

**Brokers who haven’t changed their compensation recently will most likely not experience any change.

The following replaces announcement 12-04 New FHA overlays for 2-4 Unit Properties and 12-12 Additional FHA Overlays for 2-4 Unit Properties in their entirety. This is effective immediately for both active pipeline and new submissions.

The following FHA overlays only apply to 2-4 unit properties in Illinois, and 3-4 unit properties in New York and New Jersey.

  • 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 and Seller attesting that there is no IOI relationship.
  • Maximum DTI 45.00%; and
  • If LTV >90%, then no gifts or grants are permitted.

The following FHA overlays apply to all 2-4 unit properties regardless of geographic area.

  • All 2-4 unit properties subject to a Short Sale Agreement must have been listed on the MLS for at least 30 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.

Effective immediately REMN Wholesale will accept applications for transaction in the state of Hawaii.  The following guidelines apply; see pricing sheet for additional details

  • 1- 4 unit primary residence, second home and investment properties are eligible
  • Fixed rate and ARM programs are eligible
  • FHA, VA, USDA, and FNMA products are eligible including DU Refi Plus
  • Leasehold properties are eligible subject to approval guidelines
  • FNMA Condominiums must be warrantable via limited or CPM review- lender full review not eligible
  • FHA Condominiums must be HRAP or DELRAP approved
  • High balance 1 unit only, conforming loan limits on 2-4 units
Units Hawaii
1 $625,500
2 $800,775
3 $967,950
4 $1,202,925


  • Not eligible for ANY program.


  • FNMA:   not eligible
  • FHLMC:  eligible – ONLY through co-issuance. Contact Lock Desk for special pricing.
  • FHA:   not eligible.
  • VA:  eligible – only if lava insurance for at least the amount of the mortgage can be obtained.
  • USDA:  eligible – only if lava insurance for at least the amount of the mortgage can be obtained.


  • No agency (FNMA, FHLMC, VA, FHA, USDA) restrictions.
  • Jumbo loans based upon individual investor guidelines.


ALL Appraisals completed for other lenders that wish to be used for loans submitted to REMN will be considered for use under the following circumstances:

  • Appraisal must have been completed prior to the loan submission to REMN.
  • Appraisal must have been completed for another lender.
  • Appraisal must contain acceptable documentation that it has been completed in compliance with HVCC or AIR.
  • The appraisal must pass an internal appraisal review process including: AVM value support validation, independent comparable sales data validation, and desk review (if applicable).

Conventional Loans- will be accepted by REMN management exception only

  • The broker is responsible for uploading the original PDF to Blitzdocs.
  • The broker is responsible for uploading the XML version of the report from the AMC to Blitzdocs.
  • SSR reports for FNMA and FHLMC are required.
    • If the AMC has already uploaded the XML report to FNMA and FHLMC, the broker can upload the SSR confirmations to Blitzdocs.  The XML is still required by REMN.
    • If the AMC had not uploaded the XML report, the broker must upload the 1st generation version of the XML report to Blitzdocs (do not open the file) and REMN will obtain the SSR receipts.
  • An invoice is required.

FHA loans

  • The broker is responsible for uploading the original PDF.
  • An invoice is required.
  • XML and SSR reports are not required.

Effective immediately REMN Wholesale will begin requiring all conventional appraisal orders follow the process outlined below:

  1. All Conventional loan appraisal orders must be placed through REMN’s approved appraisal management company Mortgage Management Consulting, Inc.
  2. In the event MMC is not licensed in the state requested, MMC will inform REMN who will confirm the alternative AMC to be used by the broker.
  3. Confirmation of the alternative AMC direction will be reviewed by the REMN underwriter at the time of collateral approval.  If the report was not completed by the directed AMC the report will not be eligible for use.
  4. Appraisal reports must be original PDF reports uploaded directly to REMN’s Blitz software by the appraisal management company.
AMC NameREMN Affiliated?Web Address
  • Effective 6/17/2013 REMN Wholesale will begin accepting locks and new loan submissions for FNMA 5/1 and 7/1 LIBOR Non-Convertible ARMs.  These programs are available for conforming and high balance loan amounts.
  • Index – 1 Year LIBOR
  • Margin – 2.25
  • Caps – 5/2/5  (5.00 initial, 2.00 periodic,  5.00 life time)
  • Floor – Margin
  • Term – 360/360


Transaction TypeNumber of UnitsMaximum LTV, CLTV, HCLTV Standard ARMMaximum High Balance ARM
Principal Residence
Purchase & Limited cash-out Refinance190%75%
Cash-out Refinance175%60%
Second Homes
Purchase & Limited cash-out Refinance180%65%
Cash out Refinance165%NA
Investment Property
Limited cash-out Refinance1-465%65%
Cash out Refinance165%NA

FNMA Standard 30 year ARM Plan

  • 5/1 FNMA ARM plan code 2737
  • 7/1 FNMA ARM plan code 2727
  • Assumable – No
  • Convertible – No
  • Interest rounded to the nearest  1/8th
  • Qualifying Rate Details
    • Fully indexed rate = index + margin
    • 5/1 ARM qualifies at the greater of the start rate + 2% OR the fully indexed rate
    • 7/1 ARM qualifies at the start rate