The Federal Emergency Management Agency (FEMA) issued a Disaster Declaration for the state of Alabama due to Hurricane Zeta.

Declaration Date:  December 10, 2020
Incident Period:  October 28-October 29, 2020

The following counties require re-inspection: Clarke, Dallas, Marengo, Mobile, Perry, Washington, Wilcox

If the subject property is in one of the above counties and the appraisal was completed on or before October 29, 2020 REMN Wholesale will require one of the following:

  • An Appraisal Update and/or Completion Report (Fannie Mae form 1004D), or
  • A Desktop Underwriter Property Inspection Report (Fannie Mae form 2075), or
  • Catastrophic Disaster Area Property Inspection Report (CDAIR), and
  • VA transactions only (when appraisal was required): A signed letter and Veteran Certification

REMN Wholesale prefers the original appraiser provide the 1004D or 2075 however REMN will accept the report from any appraiser as long as the original Appraisal Management Company assigns the appraiser (i.e., if the original appraisal order was placed through MMC, the 1004D, 2075, or CDAIR must also be ordered through MMC).

A 2075 or CDAIR is also required on the following:

  • FNMA transaction with a property inspection waiver (PIW) from DU or an automated collateral evaluation (ACE) from LPA

NOTE:  A 2075/CDAIR is not required on an FHA Streamline or VA IRRRL transaction.

In the event significant damage is indicated on the 1004D, 2075, or CDAIR additional conditions may apply. The report must comment on the impact the disaster had on the value and marketability of the property.

To download this announcement in PDF format click here.

VA has announced their 2021 loan limits. For 2021 the same standards apply as outlined in VA Circular 26-19-23. The new loan limits apply to loans closing on or after January 1, 2021. As a reminder these limits do not apply to VA IRRRLs.

There are two (2) formulas for determining the maximum loan amount:

  1. Loans of $144,000 and less – OR – loans where the veteran does not have full eligibility – follow the Freddie Mac Conforming Loan Limits (see 620 column below).
  2. Loans over $144,000 AND the veteran has full eligibility do NOT follow the FHLMC list, however, REMN has established maximum financing amounts as noted below.

The maximum mortgage is based upon the county limit for the subject property, as determined by FHFA:

https://www.fhfa.gov/DataTools/Downloads/Documents/Conforming-Loan-Limits/FullCountyLoanLimitList2021_HERA-BASED_FINAL_FLAT.pdf

The changes noted above reflect the FHLMC increase from 2020 to 2021. There is no change to calculation of the maximum mortgage amount from last year.

Please contact your Account Executive with any questions.

 

To download this announcement in PDF format click here.

HUD announced the FHA loan limits for 2021 in Mortgagee Letter 2020-41. Most counties have increased, however there are 125 counties whose maximum loan limits remained the same as 2020 limits.

New loan limits apply to case numbers assigned on or after January 1, 2021:

Loan limits for certain high-cost counties may be lower than the “ceiling” stated above. FHA 2021 mortgage limits can be accessed at the following link: FHA Mortgage Limits.

As a reminder, county limits do not apply to FHA Streamline transactions.

Please contact your Account Executive with any questions.

 

To download this announcement in PDF format click here.

The Federal Housing Finance Agency (FHFA) has announced 2021 loan limits for FNMA and FHLMC agency loans.

REMN limits the maximum loan amount on Freddie Mac transactions to $1,000,000 regardless of the number of units.

**NOTE** Alaska and Hawaii high-cost limits have not been implemented by FHFA, which means loan limits in these states must conform to the general loan limits.

If the loan is a high balance/super conforming loan, it is important to check the loan limit for the property address county as loan limits may be lower than the amount identified in the table above.

The 2021 loan limits may be applied to new submissions and to floating loans currently in the pipeline. Loans with the 2021 limits must be manually locked with the REMN lock desk.

Loans may receive an “Approve/Ineligible” or “Accept/Ineligible” finding, however, REMN will accept if the only ineligible reason is due to the loan amount exceeding the 2020 limit.

REMN will update Fannie Mae and Freddie Mac guidelines with these new limits in our December guideline release.

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

REMN Wholesale is pleased to offer our new Jumbo Platinum product. Jumbo Platinum offers superior pricing for loans that meet specific parameters.

Eligibility for Jumbo Platinum

  • REMN’s jumbo product
  • W2 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. Departing residences acceptable)
  • Max loan amount $1.5 million

Loan Types Ineligible for Jumbo Platinum

  • Self-employed borrowers
  • 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
  • Loan amounts over $1.5 million

Jumbo Platinum offers ease of use with no additional minimum LTV or FICO requirement overlays.

For additional information, please contact your Account Executive.

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.

Important Changes To Our Broker and Emerging Banker Agreements  Read More