May 1, 2014

REMN Wholesale is pleased to announce additional enhancements to the FHA program.

Credit Score 620-639 – No Derogatory Credit within 24 Months

The “no derogatory credit within the past 24 months” restriction has been removed.  Derogatory credit is now per HUD guidelines.  All other REMN Wholesale requirements continue to apply.

NOTE:   The list of states subject to the 620-639 credit score requirements has been updated.  The state of Georgia has been removed and is no longer subject to the additional requirements. Improved ranking can be used immediately. The states of Kentucky, Maine and Rhode Island have been added and will be subject to the 620-639 credit score requirements with submissions received on May 1, 2014 and after.  Loans submitted on or before April 30, 2014 can use the prior “standard/low risk” eligibility criteria.

The state updates also apply to the FHA Streamline program including non-credit qualifying Streamlines; Georgia minimum credit score is now 660 and Kentucky, Maine and Rhode Island now require a minimum credit score of 680.

Credit Score 640-659 – DTI

The maximum DTI for loans with a 640-659 credit score is now 50% with no overlay for payment shock and no overlay for a DU “Approve/Eligible” Finding (previously required DU “Approve/Eligible” Finding and maximum 50% payment shock to exceed 45% DTI)

As a reminder, loans that are manually underwritten are subject to the new HUD guidelines for manually underwritten loans (reserve requirement and requirements if the loan exceeds 31%/43% DTI) published in REMN Wholesale Bulletin 14-19 and posted on the REMN Wholesale website.

The DTI enhancement applies to loans submitted on or after May 1, 2014 and to loans currently in the pipeline.

The FHA Program matrix has been updated with this information and posted on the REMN Wholesale website at

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