***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.

DATE: March 27, 2020

REMN Wholesale utilizes a random loan selection to obtain tax transcripts. Due to the COVID-19 situation, there are significant delays in the processing of IRS transcripts. In order to accommodate for this delay, REMN has amended our IRS tax transcript policy effective immediately:

RECEIPT OF TRANSCRIPTS – FNMA, FHLMC, FHA & VA LOANS

• REMN Wholesale will TEMPORARILY SUSPEND the requirement for receipt of the IRS transcripts until April 15, 2020

o The 4506T form must still be executed at time of application and at time of closing

• This temporary suspension applies to all instances where REMN Wholesale required transcripts be processed

• Loans where transcripts were ordered but not yet received are permitted to close without receipt of the transcript

• Loans where transcripts have not yet been ordered, do not need to be ordered during the suspension period

RECEIPT OF TRANSCRIPTS – USDA LOANS

• Loans where the investor requires the processing and receipt of the transcripts remains in effect before the loan can close. There are ZERO exceptions to this policy

• We will NOT accept any borrower provided transcripts

 

REMN will re-evaluate the situation after April 15, 2020.

If you have additional questions please contact your Account Executive.

DATE: March 27, 2020

Due to continued Covid-19 market volatility and anticipated economic implications, REMN Wholesale is imposing temporary restrictions to our government lending policies including FICO and DTI limitations. This applies to new loan submissions dated 3/27/2020 and after.

PRODUCTS IMPACTED:

• FHA, VA, and USDA, including Streamlines and Interest Rate Reduction Refinances

o REMN to REMN rate and term refinances are exempt from the new requirements

o REMN to REMN cash-out refinances are NOT exempt from the new requirements

EFFECTIVE DATE:

• All new submissions beginning March 27. This guidance does not apply to unsubmitted loans that were registered or locked prior to March 27.

UNDERWRITING METHOD

• Total Scorecard (AUS approval) – OR

• Manual Underwrite o Manual underwrites must meet ALL requirements of the 4000.1, including but not limited to the definition of satisfactory credit history and the requirements associated with DTI limits.

FICO OVERLAY

• FICO minimum 640 (NO EXCEPTIONS)

• FICO between 641-659:
o Maximum DTI is 43%
o DTI of 43.01% to 50%: Exception only given for borrowers with 3 months liquid cash reserves. Gifts cannot be used to meet a reserve requirement.
o Loan Level Price Adjustment of 100 basis points

• FICO 660-679
o Loan Level Price Adjustment of 50 basis points

• FICO 680+
▪ No Overlay

**Please note** the details in the announcement supersede product guidelines.

Revised guidelines will be posted in the near future.

Please reach out to your Account Executive if you have any questions.

DATE: March 26, 2020

REMN Wholesale has modified our requirements in response to Fannie and Freddie’s guidance regarding employment and income continuation due to COVID-19. In addition, as FHA, VA and USDA have not yet provided guidance, REMN will be applying the new guidance to ALL product types (FNMA, FHLMC, FHA, VA and USDA) effective immediately:

VERBAL VERIFICATION OF EMPLOYMENT
• Employment must be validated no more than 48 business hours prior to closing (formerly 10 days) 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:
• Can you elaborate on how the 48 business hours is calculated?
o Wet State Purchase and Refinance: 48 business hours prior to the Note date
o Dry State Purchase and Refinance: 48 business hours prior to the Funding
Date
• 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 48 business hour 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.

Important Changes To Our Broker and Emerging Banker Agreements  Read More