December 22, 2014

REMN Wholesale will be closed for business on Thursday December 25,, 2014 and Friday December 26, 2014 in observance of the Christmas holiday and Thursday January 1, 2015 in observance of the New Year holiday.

We will have coverage until 3:00 p.m. PST on Wednesday December 24 and Wednesday December 31.

The wire cutoff time for loans funding on December 24 is 12:45 p.m. EST. If loans have been approved to fund on Friday December 26, the wire cutoff time is 5:45 p.m. EST on Wednesday December 24.

The lock desk will have reduced hours on Wednesday, December 24, 2014, they will be open until 3:00 p.m. EST.

REMN Wholesale will maintain regular business hours through the end of the year except as noted above.

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

December 16, 2014

The Department of Veterans Affairs (VA) announced the 2015 VA county loan limits in VA Circular

26-14-39 issued December 9, 2014. The VA county limits are used to calculate the maximum guaranty amount.

VA loan limits for 2015 will match conventional loan limit levels (see below) as set by the Federal Housing Finance Agency (FHFA). Due to this change the maximum loan limit will decrease for 84 counties in 14 states; however the loan limit increase announced by the FHFA for conventional transactions will also apply to VA loans.

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In the event the 2015 county limit is lower than the 2014 limit, VA will honor the 2014 limit for loans in process subject to the following:

  • Purchase Transactions: The sales contract was signed by the property seller(s) and buyer(s) and the loan application was signed by the borrower/buyer and broker prior to January 1, 2015.
  • Refinance Transactions (non-IRRRL): The loan application was signed by the borrower and broker prior to January 1, 2015.
  • IRRRL Transactions: County limits do not apply to IRRRL transactions.

As a reminder, VA does not have a maximum loan amount; loans can be made in excess of the county limit, however any loan amount exceeding the county limit will require a down payment from the borrower.

The 2015 maximum loan limits by county may be viewed at VA Loan Limits and selecting “2015 Loan Limits”.

The counties with an increase are provided on the attached Exhibit A; a list of the counties with a decrease in the maximum loan limit was not provided by VA.

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

 

December 12, 2014

REMN Wholesale is pleased to announce that we will begin offering Freddie Mac’s conforming and super conforming programs effective December 15, 2014.

Freddie Mac Program Overview

Highlights of the Freddie Mac program:

  • Purchase, rate/term and cash-out transactions eligible
  • Conforming and Super Conforming loan amounts
  • Minimum credit score 620
  • Maximum 50% DTI
  • Cash-out allowed on super conforming 2-4 unit primary residence, second home and investment transactions:
  • Primary residence 2-4 units cash-out to 65% LTV/CLTV
  • Second home super conforming cash-out to 65% LTV/CLTV
  • Investment property 1-4 units cash-out to 65% LTV/CLTV
  • Investment property super conforming 1-unit purchase to 80% LTV/CLTV and 75% LTV/CLTV for super conforming 1-unit rate/term transactions
  • Borrowers with previous bankruptcy eligible after 2 year waiting period
  • Borrowers with previous foreclosure eligible after 3 year waiting period

Brokers are not required to submit the LP Feedback Certificate; REMN Wholesale will run the loan through LP.  REMN Wholesale will run a new credit report which will be used to determine eligibility; REMN Wholesale will not re-issue the broker’s credit.

REMN Wholesale has created a Quick Reference Guide to compare the Fannie Mae and Freddie programs and it will be posted it on the website under “Resources”.

The Freddie Mac Conforming and Super Conforming guidelines have been posted on the REMN Wholesale website at www.remnwholesale.com.

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

December 12, 2014

HUD Mortgage Letter 2014-25 issued December 5, 2014 announced the maximum loan limits for FHA loans for 2015. The FHA loan limit “floor” remains unchanged for all counties; the high-cost area “ceiling” also remains unchanged however the loan amount allowed for a number of specific counties has increased for 2015. The list of counties with an increased loan amount is attached (Exhibit A).

Any loan where the loan limit exceeds the “floor” is a high cost area.

The new loan limits apply to case numbers assigned on or after January 1, 2015.

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The maximum loan limits for properties located in Alaska and Hawaii are as follows:

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To view FHA Mortgage Limits by county for 2015 go to FHA Mortgage Limits enter the state, county and select “FHA Forward” and “CY2015” from the drop down menu and click on “Send”.

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As a reminder, FHA Streamlines without an appraisal are not subject to the limits. The following lists are attached for reference:

  • Exhibit A: Counties with increased maximum loan amounts
  • Exhibit B: Counties at the FHA national loan limit ceiling
  • Exhibit C: Counties between the FHA floor and ceiling limits

To read the FHA Mortgagee Letter in its entirety, go to HUD Mortgagee Letters

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

December 5, 2014

Fannie Mae will be releasing DU Version 9.2 the weekend of December 13, 2014. New loans submitted to DU on or after December 13, 2014 will be subject to the new guidance.  Loans submitted to DU Version 9.1 and resubmitted after the weekend of December 13th will continue to be underwritten through DU Version 9.1.

Highlights of the DU 9.2 release are detailed below.

One Unit Primary Residence Cash-Out Transaction

  • The new maximum LTV for a 1-unit primary residence fixed rate cash-out transactions will be 80% (currently 85%). The maximum 75% LTV for an ARM transaction remains the same.

Multiple Financed Properties Message Update

The following message will be issued by DU on second home and investment when it appears the borrower has four or more financed properties.  As a reminder, REMN Wholesale limits the number of properties financed by a borrower to a maximum of four.

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Life Insurance Assets Message

When life insurance payout is used for the down payment or closing costs the borrower’s receipt of funds from the insurance company is required however if the funds are being used for reserves, the cash value must be verified and documented but the funds do not require liquidation and receipt by the borrower.

A new verification message will be issued by DU:

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Pending Sale Property Message

DU will issue a new message on primary residence transactions when a pending sale property is indicated on the 1003 as a reminder that if the property is not sold prior closing, the borrower must meet reserve requirements for pending sale properties.

Excessive Value Messages Modification

The excessive value messages will be updated with a reminder that when an appraisal is submitted to the Uniform Collateral Data Portal (UCDP), the messages from the UCDP and DU may vary since the messages issued by UCDP are based on an analysis of the data provided in the actual appraisal submitted.

No Payment Included Message Update

The message issued by DU when no payment is indicated on the online loan application for a mortgage, HELOC, installment loan, or an unknown liability type is being updated.

The message will be included in the first section of the DU Findings Report and will be updated to indicate the following:

The risk assessment of the loan casefile may not be accurate because the accounts did not have a minimum monthly payment and DU was unable to calculate the DTI.  The lender must ensure the DTI used in the risk assessment is accurate, and if a payment must be included in the DTI, the payment amount must be entered on the online loan application and the loan casefile resubmitted to DU.

Updated DU Findings Report

The Summary Section of the DU Findings Report will be updated as follows:

  • Borrower generation will be indicated, if applicable
  • “Total Expense Ratio” will change to “Debt-to-Income Ratio”
  • “Appraised Value” will be changed to “Actual/Estimated Appraised Value” to be clear that the value displayed is the value entered from the online loan application.

Changes highlighted in red below

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Mortgage Information and Qualifying Ratios Sections

These sections were also updated to indicate “Debt-to-Income Ratio” and “Actual/Estimated Appraised Value”

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With the release of DU 9.2 Fannie Mae is retiring DU Version 9.0 so casefiles will no longer be able to be resubmitted to DU Version 9.0.

The REMN Wholesale Agency Conforming matrix will be updated and posted on the REMN Wholesale website at www.remnwholesale.com

Read the DU Version 9.2 Release Notes in their entirety at Fannie Mae DU Version 9.2 Release Notes

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

December 5, 2014

REMN Wholesale is pleased to announce enhancements to our VA and VA IRRRL guidelines.

VA IRRRL

The credit score for non-credit qualifying transactions has been lowered and a full appraisal requirement is no longer required for high balance transactions.

Effective immediately the following applies to both new submissions and loans currently in the pipeline:

  • Credit qualifying transactions, both conforming and high balance loan amounts, the minimum credit score is 580 for all occupancy types.
  • Non-credit qualifying transactions, both conforming and high balance loan amounts, the minimum credit score is 640 for all occupancy types.
  • Loan amounts > $417,000 (> $625,500 Alaska/Hawaii, and >$721,050 Honolulu county, HI) an AVM, ordered from MMC, with a confidence score ≥ 90 is now eligible in lieu of a full appraisal. A 2055, ordered from MMC, will be required if the confidence score is < 90%.
  • The refinance of a loan originated by REMN Wholesale will not be subject to REMN Wholesale overlays; standard VA IRRRL guidelines will apply.

High balance loan amounts are now limited to 1-unit owner-occupied properties; 2-4 unit owner-occupied, second home and investment properties are ineligible.

VA Program

  • The minimum credit score requirement for cash-out transactions > 90% LTV has been lowered to 600 (currently 680 is required)
  • The rate/term refinance of a loan originated by REMN Wholesale will not be subject to REMN Wholesale overlays; standard VA guidelines will apply.

As a reminder, since VA does not offer a true rate/term refinance, this would be a cash-out transaction where the borrower does not receive any cash back.   REMN Wholesale overlays continue to apply to a true cash-out refinance transaction where the veteran receives cash back.

All other VA and VA IRRRL guidelines remain unchanged

The VA and VA IRRRL matrices have been updated with this information and posted on the REMN Wholesale website at www.remnwholesale.com.

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

December 4, 2014

The Federal Housing Finance Agency (FHFA) issued the 2015 maximum loan limits that will apply to conventional transactions beginning January 1, 2015.

The maximum loan limits for 2015 remain unchanged from 2014 and are provided below for reference below.

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While the general loan limits remain unchanged a number of high-cost area loan limits increased. The list of high-cost counties with new higher loan limits is attached for reference.

A complete list of all high-cost area counties can be viewed at FHFA.

The new high-cost area loan limits are eligible for loan applications dated on or after January 1, 2015. If you have any questions, please contact your Account Executive.

To read the full list of counties with increases in maximum conforming loan limits for Fannie Mae and Freddie Mac, click here Counties With Increases.

December 1, 2014

REMN Wholesale is pleased to announce we are expanding our approved mortgage insurance providers to include Radian effective December 1, 2014.

Borrower paid (BPMI) monthly or single premium and lender paid (LPMI) single premium products are eligible.

The MI Comparison has been updated with Radian information and posted on the REMN Wholesale website at www.remnwholesale.com. The MI Comparison is posted under the “Resources” dropdown on the REMN Wholesale website.   Additionally Radian will be added to the “Links” page under the Approved MI Companies topic.

The Agency Conforming and High Balance matrices will be updated with this information in the near future.

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

November 25, 2014

REMN Wholesale is pleased to announce we are enhancing the FHA 203(k) Streamlined program to allow 2-unit primary residence properties.  Two unit properties are eligible for both purchase and refinance transactions.

The FHA 203(k) Streamlined matrix will be updated and posted on REMN Wholesale’s website at www.remnwholesale.com in the near future.

This enhancement is effective immediately.

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

November 20, 2014

The new USDA Single Family Housing Guaranteed Loan Program (SFHGLP) 7 CFR 3555 will replace the current USDA RD Instruction 1980-D effective with Conditional Commitments issued on or after December 1, 2014.

USDA has announced that in order to transition from the current guidelines to the new 7 CFR 3555 guides, and to eliminate the backlog of loans currently in their system, they will stop accepting new applications from the close of business Friday, November 21, 2014 through Sunday, November 30, 2014.

During this time, new applications may be entered into GUS but the final submission cannot be made until Monday, December 1, 2014.  New submissions will be subject to the new CFR 3555 guidelines.  USDA will not accept manually underwritten loans during the transition period.

Any loan that does not have a Conditional Commitment issued by December 1, 2014 must be re-submitted to GUS or manually re-underwritten (as applicable) and will be subject to the new 7 CFR 3555 guidance even if the loan was submitted to USDA prior to Friday, November 21, 2014.

REMN Wholesale will make every effort to complete the underwriting of any USDA loan currently in the pipeline and request a Conditional Commitment from USDA prior to November 21, 2014, however there is no guarantee the Commitment will be received.

The following will require resubmission to GUS or manual underwriting (Streamline Refinance transactions) and will be subject to the new CFR 3555 guidelines:

  • Loans without a Conditional Commitment issued prior to December 1, 2014
  • Loans that receive a Conditional Commitment prior to December 1, 2014 but do not close by the Commitment expiration or the credit/appraisal documentation expires prior to close (whichever is first).

REMN Wholesale will provide additional information on the specific USDA guidelines changes in the near future.

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

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