December 7, 2015

REMN Wholesale’s mortgagee clause for homeowners insurance (including hazard, flood, wind and hail) has been updated to the following:

HomeBridge Financial Services, Inc. DBA Real Estate Mortgage Network
ISAOA / ATIMA
P.O. Box 7047
Troy, MI 48007-7047

This mortgagee clause must be used for any loans disbursing on or after December 14, 2015.

REMN Wholesale’s mortgagee clause for title insurance and the closing protection letter is as follows:

HomeBridge Financial Services, Inc. D/B/A Real Estate Mortgage Network
ISAOA/ATIMA
194 Wood Avenue South, 9th Floor
Iselin, NJ 08830

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

November 25, 2015

REMN Wholesale is pleased to announce we have added additional loan terms for the following loan types (fixed rate ONLY):

  • FHA
  • FHA Streamline
  • VA
  • VA IRRRL

Loan terms are now available in one year increments (i.e. 21, 22, 23, etc.) for the above products only and do not include Jumbo, Conventional, USDA, or Renovation loans.

The REMN Wholesale rate sheet will reflect this enhancement effective Monday, November 30, 2015.

The Broker Submission Sheet will be updated to allow the Broker to indicate the specific loan term.

The applicable guidelines will be updated in the near future.

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

November 25, 2015

REMN Wholesale is pleased to announce several enhancements to the Jumbo program.

Below are some major highlights of the program updates (refer to program guidelines for all updates):

Maximum LTV/CLTV 85% (formerly 80%)

  • 1-unit primary residence purchase and rate/term only
  • Mortgage insurance not required
  • Subordinate financing not allowed
  • Maximum DTI 36%
  • Gift funds not allowed
  • Escrow/impound account required
  • Non-permanent resident aliens ineligible
  • Agency High Balance loan amounts are ineligible (i.e. the subject loan amount must exceed the maximum loan amount for subject property county)

Cash-Out Refinance for Second Homes (previously ineligible)

  • The number of properties financed by the borrower is limited to the subject second home property and their primary residence
  • No rental income can show on the Schedule E for the subject property, and
  • Limited to 20, 25, or 30 fixed rate product only
  • Minimum FICO 740
  • Maximum DTI 43%
  • Maximum cash-out $250,000 with 60% LTV/CLTV
  • Maximum cash-out $500,000 with 55% LTV/CLTV
  • Maximum cash-out $750,000 with 50% LTV/CLTV

Investment Properties (previously ineligible)

  • First time homebuyers ineligible
  • Must be an arm’s length transaction
  • Gift funds not allowed
  • Appraiser must provide comparable rent schedule
  • Florida condominiums limited to maximum 50% LTV/CLTV/HCLTV
  • 20, 25, or 30 year fixed rate product only
  • Purchase
    • 1-4 Units
  • Maximum LTV/CLTV 65%
  • Minimum FICO 740
  • Maximum DTI 43%
  • Rate/Term Refinance
    • 1-4 Units
  • Maximum LTV/CLTV 60%
  • Minimum FICO 740
  • Maximum DTI 43%

First Time Homebuyers Max Loan Amount $1,500,000

  • Property must be located in the states of CA, CT, NJ, and NY
  • Maximum 80% LTV
  • Primary residence
  • Minimum 720 credit score
  • No gift funds
  • Minimum 15 months PITI reserves required

Updated Tradeline Requirements

  • Minimum 3 tradelines that meet the following requirements:
  • One must be open for 24 months and active within the most recent 6 months, and
  • The 2 remaining tradelines must be rated for 12 months and may be open or closed,

OR

  • Minimum 2 tradelines are acceptable if the borrower has a satisfactory mortgage rating for at least 12 months (open or closed) within the last 24 months, and one (1) additional open tradeline
  • Each borrower contributing income for qualifying must meet the minimum tradeline requirements; borrowers not contributing qualifying income are not subject to tradeline requirements.

 

Appraisal documents cannot be more than 120 old at funding (formerly 90 days)

Appraisal must contain a comparable rent schedule on transactions involving investment properties

If borrower is <59 ½ years old, 60% of the vested value of retirement accounts may be used to satisfy reserve requirements. 70% may be used if the borrower is >59 ½ years old

E1, L1, and G series visas are now allowable (G series with diplomatic immunity are ineligible)

The program enhancements are effective immediately for new loan submissions as well as existing loans in the pipeline.

These changes will be on the REMN Wholesale rate sheet effective Monday, November 30, 2015.

The guidelines have been updated and posted on our website at www.remnwholesale.com.

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

November 6, 2015

REMN Wholesale is pleased to announce that Massachusetts is now an eligible state. Effective Monday November 9, 2015 we will accept new submissions for properties located in this state.

For conventional loans in Massachusetts, the AMC that needs to be selected is MMC.

The guidelines are in the process of being updated, and REMN Wholesale will post Massachusetts state specific disclosures to our website in the near future, for our brokers to easily reference.

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

November 6, 2015

REMN Wholesale is pleased to announce a new enhancement to assist brokers with their Loan Estimate (“LE”) preparation. Effective Monday November 9, 2015; we will offer a draft Loan Estimate (“LE”) review for brokers.
Brokers who wish to have their draft LE reviewed prior to sending to the borrower can do the following:

1. Complete and sign the Mortgage Broker Draft Loan Estimate Review Request & Certification form found on our website at www.remnwholesale.com
2. Email Lereview@remn.com the following: draft LE, itemization, and the above certification form

This is a sample of the certification form:

Announcement RWS 15-25

REMN Wholesale will review the draft Loan Estimate within 24 hours and send any suggested revisions to the email address indicated on the certification form.

Please note: our review does not constitute the establishment of REMN Wholesale as the creditor, or REMN Wholesale’s acceptance of the loan submission.

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

September 17, 2015

HUD’s Single Family Housing Policy Handbook, HUD Handbook 4000.1, became effective September 14, 2015. This new Handbook replaces and supersedes all prior Handbooks and Mortgagee Letters.

REMN Wholesale has published several resources help our business partners navigate through the numerous changes:

  • Updated FHA guidelines based upon the new changes. The pre 9/14/15 guidelines will still be available for existing loans with case numbers assigned prior to 9/14/15
  • “FHA Guideline Changes at a Glance” – a comparison of the key changes between the new guidelines versus the old guidelines
  • “FHA Underwriting Changes”, the PowerPoint presentation of our online training session provided to Brokers

The above materials are located at www.remnwholesale.com.

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

September 16, 2015

USDA will be increasing the upfront Guarantee Fee from 2.00% to 2.75% for RD conditional commitments received on or after Thursday, October 1, 2015.

Per USDA, GUS applications in a “Final Submission” status with an upfront guarantee fee of 2% must receive a conditional commitment from RD prior to the close of business on Wednesday, September 30th, 2015.   If this does not occur, REMN Wholesale will be required to re-underwrite the loan with the new upfront guarantee fee of 2.75% and resubmit the application to RD in GUS.

As some RD State Offices are working through a backlog of guaranteed applications, this may have a negative impact on USDA applications in which it has been estimated that RD will be unable to issue the conditional commitment prior to close of business on Sept 30th.    Please see the below “Resubmission Details” section from a recent USDA bulletin which references the resubmission process for the impacted loans. Unfortunately we do not have any information as to the turn time by USDA office.

Brokers should monitor their USDA loan applications and identify if any of them will be negatively impacted by the upfront guarantee fee increase, and have those applications submitted for underwriting based on the new fee of 2.75%.

Resubmission Details:

On October 1, 2015, GUS applications in a “Final Submission” status, with an upfront guarantee fee of 2 percent that were not issued a conditional commitment by RD prior to the close of business on September 30, 2015 will be subject to a conversion process.  The process will release these loans back to the lender in GUS.  Lenders must open the application in GUS and update the “Upfront Guarantee Fee/Annual Fee Option” data field, on the “Loan Terms” application page, by selecting the “FY16: 2.75% GuarFee+.5% Ann Fee” option from the dropdown box.

Once all GUS data has been updated the lender must perform a “Final Submission” to RD.  An updated Form RD 3555-21, “Request for Single Family Housing Loan Guarantee,” must be submitted to RD and uploaded into GUS when the debt ratios increase (as compared to the original Form RD 3555-21 submitted to RD) due to a higher upfront guarantee fee regardless of the underwriting recommendation.  The updated form must be executed by both the applicant(s) and the lender, and it can be executed at closing or settlement.  Additional documentation may be required when the original underwriting recommendation is changed and/or the underwriting recommendation is “REFER” or “REFER WITH CAUTION.”  Refer to the GUS Underwriting Findings Report for guidance. 

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

September 16, 2015

Effective with new file submissions on and after October 1, 2015, REMN Wholesale will charge a tax service fee.

The tax service fee will be $83 and will be charged on Conventional loans.

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

July 16, 2015

Effective immediately for new applications, REMN Wholesale has amended our requirements for FNMA investment properties with first time homebuyers:

  • First time homebuyers purchasing an investment property will no longer be able to use the subject property rental income for qualification purposes
  • If any borrower answers “No” to Declaration Question M on the 1003 “Have you had an ownership interest in a property in the last 3 years”, they are considered a first time homebuyer

 

PLEASE NOTE: Existing pipeline loans are not affected by this change

 

The product guidelines will be updated in the near future.

 

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

July 16, 2015

Consistent with FNMA Announcement 2015-07, REMN Wholesale has made the following changes effective immediately for existing pipeline loans as well as new submissions:

 

CONVERSION OF PRINCIPAL RESIDENCE TO INVESTMENT PROPERTY

  • All unique requirements have been removed, including the 30% equity position
  • Rental income calculation and minimum reserves follow standard guidelines

 

STOCKS, BONDS, AND MUTUAL FUNDS REQUIREMENTS

  • When determining reserves, 100% of the value is permitted
  • If the stocks/bonds/mutual funds will be used for down payment and/or closing costs the following guidance is provided:
    • If the value of the combined assets (at 100%) is at least 20% MORE than what the borrower needs, liquidation is not required.
      • EXAMPLE 1:
        • Asset(s) from stocks/bonds/mutual funds are $100,000
        • Borrower needs $75,000 to close. $75,000 x 120% = $90,000
        • Since borrower has more than $90,000 in stocks/bonds/mutual funds, evidence of liquidation not required
      • EXAMPLE 2:
        • Asset(s) from stocks/bonds/mutual funds are $100,000
        • Borrower needs $85,000 to close. $85,000 x 120% = 102,000
        • Since borrower does not have more than $102,000 in stocks/bonds/mutual funds, evidence of liquidation is required

 

UNREIMBURSED EXPENSES

  • If a borrower is qualified using base pay; bonus; overtime; or commission less than 25% of the borrower’s annual income, the following applies:

 

– Unreimbursed expenses do not need to be deducted from qualifying income

-Union dues and other voluntary deductions on the paystub do not need to be deducted from qualifying income

 

  • If commission income is 25% or greater, unreimbursed expenses must be deducted

 

SALE OF EXISTING PRIMARY RESIDENCE

 

  • When a borrower is selling their current residence and it will not close prior to the closing of the subject property, the PITI from the existing primary does not need to be considered provided:

 

– There is a fully executed contract of sale for the existing property

– The borrower’s attorney or escrow company verifies all financing contingencies have been cleared

 

The product guidelines will be updated in the near future.

 

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

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