Increase in Underwriting Fee
In order to offset costs incurred by our company associated with the recent industry-wide changes, REMN is increasing our underwriting fee to $650. The higher fee is effective for all loans submitted on or after Monday, January 18, 2010. This amount applies to all transaction types and all States where REMN currently charges this fee.
FSBO Guideline Changes
Effective immediately, REMN will no longer approve loans involving a FSBO (for sale by owner) subject property if the following criteria apply:
(1) the subject is a 2-4 unit property AND
(2) the subject is either in foreclosure or involves a short sale agreement with the current lien holder.
In addition, all FSBOs that are approved will be subject to additional quality control review
Amended Tax Return Guideline Changes
Effective immediately, files submitted with amended tax returns increasing the income earned in prior years will be subject to the following guidelines:
(1) if the amended income is less than 25% higher than the original income, the amended income will be used, provided that there is a satisfactory explanation for the amendment.
(2) if the amended income is more than 25% higher than the original income, the borrower must qualify using the original income. The higher, amended income cannot be used.
Gift Guideline Changes
Effective immediately, the following new guidelines apply for all transactions involving a gift:
(1) REMN will no longer accept gifts from employers, churches, or friends;
(2) REMN will no longer accept gifts from non-immediate family members unless satisfactory evidence that the relationship exists is provided. Immediate family members do not need to provide this evidence. Immediate family members include parents, siblings, children, grandparents, and grandchildren (as well as in-laws).
If you have any questions, please contact your AE.