The implementation of the new adverse market refinance fee being charged by Fannie Mae and Freddie Mac will occur on December 1, 2020. REMN Wholesale has added the 50-bps fee to our rate sheet as of Friday, September 11, 2020.

REMN lock pricing will include the 50-bps fee for the following:

• Loans locked with a lock expiration after November 13, 2020
• Loans that require a lock extension after November 13, 2020
• Emerging Banker loans that are purchased after November 13, 2020

The adverse market refinance fee does not apply to the below transactions:

• Loan with a lock expiration dated November 13, 2020 or sooner
• Fannie Mae HomeReady or Freddie Mac Home Possible refinances
• Loan amounts lesser than $125,000

Please contact your Account Executive with any questions.

REMN Wholesale is notifying our clients that we are implementing overlays for renovation loans.

Details of our overlays:

• Purchase loan only
• Minimum FICO score 680
• 1-unit property only
• Maximum repair amount $150,000 or less

These new overlays apply to 203(k) and HomeStyle loans, and are effective with any loan registered, locked, or submitted September 3 or later.

Guidelines are being updated and will be posted in the near future.

Please contact your Account Executive with any questions.

REMN Wholesale is pleased to offer our new Conventional Platinum W-2 program. Conventional Platinum offers superior pricing for loans that meet specific parameters.

Eligibility for Conventional Platinum W-2 Program

  • Conventional FNMA or FHLMC (including high balance)
  • W-2 or fixed income borrowers ONLY
  • Purchase or refinance (cash-out and rate/term)
  • Primary residence ONLY
  • No other properties owned (including second home and investment properties)

Loan Types Ineligible for Conventional Platinum W-2 Program

  • Self-employed borrowers
  • Renovation transactions
  • Multiple properties owned (financed and free and clear)
  • Loans where a tax return is required for documentation for any borrower
  • Second homes and investment properties

Conventional Platinum W-2 offers ease of use with no minimum LTV or FICO requirements.

For additional information, please contact your Account Executive.

***This communication replaces Announcement 2020:04 in its entirety***

REMN Wholesale has modified our guidance regarding employment and income continuation due to COVID-19. This applies to ALL product types (FNMA, FHLMC, FHA, VA and USDA) effective immediately:

VERBAL VERIFICATION OF EMPLOYMENT

• Employment must be re-validated by REMN no more than 5 business days prior to funding using one of the following methods:
o Traditional verbal verification OR
o An email, directly from the employer to REMN, verifying the borrower’s employment status. The person sending the email should be the same
“qualified” individual that would be required for a traditional verbal verification
o If the borrower is self-employed, we will need verification the business is still open via a CPA and/ or Accountant statement or other validation method
• Paystubs and Bank Statements CANNOT be used as the sole source of verifying employment

CONTINUITY OF INCOME

• In addition to verifying employment prior to closing, REMN must also determine if there is any adverse change or planned change in the income used to qualify the borrower:
o Acceptable – the employer verifies there has been no significant adverse change to their income
o Not Acceptable – the employer is not willing/unable to state no significant adverse change or planned adverse change. If this occurs additional documentation will be required in the form of the most recent paystub available and/or bank statements that show direct deposit. While paystubs and/or bank statements cannot be used to verify the borrower is still employed, they can be used to support no significant change in income.

• REMN must also consider the reasonability of continued income, based upon the borrower’s type of employment. Examples are:
o Acceptable – the borrower is working in a field/industry/employer that is deemed an essential business and/or “working from home” but no change to their income
o Not Acceptable – the borrower works for a business (restaurant/retail establishment/casino) that is closed, and they are not getting paid and/or most of their income is tips
o Not Acceptable – the borrower has no income coming in or their income is significantly impacted, that is an indication they will most likely not have the ability to make their mortgage payment

FREQUENTLY ASKED QUESTIONS:

• If the borrower is unemployed, but collecting unemployment, can that income be used instead?
o Unemployment resulting from Covid-19 is not eligible income
• What is REMN’s process for utilizing The Work Number, or other automated system?
o If the most recent update is beyond the 5 business day timeframe and we are unable to verify employment via another alternative, then the loan cannot close. We are hoping that employers who solely use The Work Number will be more flexible given the current state of events.

Please contact your Account Executive if you have additional questions.

REMN Wholesale is modifying our minimum submission requirements for both initial disclosure preparation and new underwriting submissions. These changes are effective June 8, 2020. Details are outlined below.

REMN-Prepared Initial Disclosures – Required Documents

• Broker credit report or AUS must be run
• Broker TRID Certification
• Contract of Sale (purchase loans only)
• Max Mortgage Worksheet (renovation loans only)

Submission to Underwriting – Required Documents Initial disclosures prepared by REMN

• AUS must be Approve/Eligible (Conventional loans only)
• Income documentation for all borrowers on loan
o Most recent paystub and W2 (salaried borrowers)
o Most recent filed tax return (self-employed borrowers)
• Signed 1003 by broker (if broker has not e-signed yet)
• Signed Intent to Proceed by all borrowers (if borrower(s) have not e-signed yet)

Submission to Underwriting – Required Documents Initial disclosures prepared by Broker/Emerging Banker

• AUS must be Approve/Eligible (Conventional loans only)
• Broker TRID Certification OR Emerging Banker TRID Certification
• Contract of Sale (purchase loans only)
• Income documentation for all borrowers on loan
o Most recent paystub and W2 (all salaried borrowers)
o Most recent filed tax return (all self-employed borrowers)
• Signed 1003 by broker
• Signed Intent to Proceed by all borrowers

All Renovation Submissions to Underwriting – Additional Required Documents

• Consultant’s Report (SOR) or Contractor Bid
• Contractor’s License
• Max Mortgage Worksheet (if broker-prepared disclosures)
• Completed Reno Questionnaire (https://www.remnwholesale.com/reno-questionnaire/)
• Review and approval of Reno Questionnaire by in-house Renovation Specialist (done internally)

NOTE:
We cannot proceed with initial disclosure preparation or submission to underwriting (as applicable) until all required documents are received. If the loan submission is missing documents, REMN’s standard turn times will only apply once all incomplete documents are provided.
The Hub (REMN Wholesale’s portal) will be enhanced in early July to support our new minimum submission standards.

If you have additional questions please contact your Account Executive.

REMN Wholesale has modified our minimum FICO score requirement for 203(K) loans to the following:

Purchase loans – minimum FICO score is 640
Refinance loans – minimum FICO score is 700

These updates are effective with new loan submissions as of June 5, 2020. These FICO updates do not apply to existing pipeline loans (locked and floating). Guidelines have been updated and posted to www.remnwholesale.com.

If you have additional questions please contact your Account Executive.

REMN Wholesale has modified our minimum FICO score requirement for cash-out conventional (FNMA and FHLMC) loans. The new minimum FICO score is 680. This updated requirement applies to new loan submissions effective June 3, 2020 as well as floating pipeline loans.

If you have additional questions please contact your Account Executive.

DATE: May 27, 2020  In response to current market conditions due to the COVID-19 pandemic, REMN Wholesale is announcing a forbearance loan policy. This policy is effective immediately and applies to both new submissions and loans currently in the pipeline.

Overview

REMN Wholesale’s forbearance policy:

  • Gives direction for transactions where the borrower is in a forbearance repayment plan
  • Applies to ALL mortgage loans the borrower is obligated for, including both the subject property and other real estate owned
  • Applies ALL mortgage loans the borrower is obligated for, including loans where the borrower acted as a co-signor on the Note
  • Applies to ALL loan programs offered by REMN Wholesale including Fannie Mae, Freddie Mac, FHA, USDA, and VA

Forbearance Policy

Forbearance can occur when the borrower directly requests forbearance and is in a forbearance plan OR the borrower makes a forbearance inquiry with their loan servicer and the servicer flags the inquiry. In either situation, the written documentation in the below policy is required from the servicer

1. For loans in which the borrower is currently in forbearance and has never missed a payment, and is only due for the current month, the loan is eligible

    • This includes all products.
    • For mortgages on dwellings other than the subject property, REMN must receive a verification form the servicer that the forbearance plan has been cancelled before the subject loan can close.
    • For mortgages on the subject property, if there is a 2nd lien that will be subordinated that was in forbearance, the plan must be cancelled prior to the closing of the subject loan.

2. For loans in which the borrower is currently in forbearance and has missed payments but will REINSTATE the mortgage prior to the closing of the subject loan, the loan is eligible if the product is FNMA/ FHLMC

    • FHA, USDA and VA are ineligible – therefore these loan types must meet the housing history requirements of the agency, as they exist in the respective manual.
    • This option is NOT available for the FNMA “High LTV Refinance” or FHLMC “Enhanced Relief Refinance” Product.
    • The borrower must reinstate the mortgage, with their own funds, prior to the closing of the subject loan.
    • For refinance transactions, the borrower is not permitted to use any of the refinance proceeds to reinstate the loan.
    • The payoff cannot include any deferred or missed payments.
    • The borrower cannot use any proceeds from a cash out transaction to reinstate the mortgage on other real estate owned.
    • REMN must receive written verification from the servicer that the forbearance plan has been cancelled prior to the closing of the subject property.
    • The funds used must be the borrower’s own funds which are properly sourced and seasoned.

3. For loans in which the borrower has missed payments and is in a LOSS MITIGATION SOLUTION with the servicer, the loan is eligible if the product is FNMA/FHLMC and the borrower has made three (3) timely payments

    • This includes: Repayment Plans, Payment Deferral Plans, Loan Modifications, and Other Loss Mitigation Solution approved by the servicer
    • FHA, USDA and VA are ineligible.
    • This option is NOT available for the FNMA “High LTV Refinance” or FHLMC “Enhanced Relief Refinance” Product.
    • Once the three (3) timely repayments, as defined below, have been met, the subject mortgage CAN include the full amount required to satisfy the existing loan.
    • The three payments are as of the Note date of the subject loan.
    • Repayment Plan:
      • 3 payments – OR – completion of the plan, whichever occurs first
    • Payment Deferral Plan:
        • 3 consecutive payments following the effective date of the plan
    • Modification:
      • Completed the three-month trial payment period
    • Other Loss Mitigation
      • 3 consecutive payments – or – completion of the plan

4. For loans in which the borrower is in forbearance and cannot reinstate the loan and/or cannot satisfy the requirements of the loss mitigation solutions, the loan is ineligible for all.

Please contact your Account Executive with questions.

DATE: May 19, 2020 REMN Wholesale is temporarily suspending submissions and initial disclosure preparation for loans that do not have a property address (TBD loans). This guidance is effective with new submissions as of Tuesday, May 19, 2020 until further notice.

If you have additional questions please contact your Account Executive.

DATE: April 6, 2020 REMN Wholesale has modified our policy regarding appraisal inspection report types due to new guidance from VA. In response to COVID-19, reduced documentation may be permitted in certain circumstances. The below guidance provided is effective immediately for loans closing after March 27, 2020.

PURCHASE AND CASH-OUT TRANSACTIONS
• Traditional appraisal – OR
• Exterior Only – OR
• Desktop – Limited to 2020 Freddie Mac Conforming Limit for 1 unit in the county where the property is located
• **Special Note** a traditional appraisal is required for vacant properties UNLESS ‘shelter in place’ is mandated in the property’s area. In that instance an exterior or desktop appraisal is permitted

RECONSIDERATION OF VALUE
• Purchase – Limited to no greater than 5% of the original value
• Cash out – Not permitted until further notice

RENOVATION LOANS
• Suspended until further notice. Any loans currently in the pipeline will be unable to proceed

FINAL INSPECTION
• In lieu of a 1004D the following may be used: receipts, written and/or verbal confirmation from the licensed contractor
• Lead Based paint repairs require an inspection by the appraiser
• REMN Wholesale will not allow a repair escrow holdback

The link to VA Circular 26-20-11 can be found here.

If you have additional questions please contact your Account Executive.

Important Changes To Our Broker and Emerging Banker Agreements  Read More