2019 Thanksgiving Holiday Lock Desk Hours


The Carrington Mortgage Services, LLC (CMS) Lock Desk, will be closed Thursday, November 28, 2019 in observance of Thanksgiving, which is a federal holiday.  Due to the holiday, the Lock Desk will be closing early on Friday, November 29, 2019 at 11:00 AM PST (early market closure of 2:00 PM EST).  Normal Lock Desk hours will resume on Monday, December 2, 2019.

Locks that expire on the holiday will automatically roll to the next business day.  In addition, there are some important disclosure considerations associated with the holiday:

  • Thursday, November 28, 2019 cannot be included in the rescission period for refinance transactions.
  • Thursday, November 28, 2019 cannot be included in the seven (7) business day waiting period between the date the initial Loan Estimate (LE) was provided to the borrower and the consummation of the loan
  • When re-disclosure of the LE is required, Thursday, November 28, 2019 cannot be included in the four (4) business day waiting period between the date the revised LE was provided to the borrower and the consummation of the loan.
  • When re-disclosure of the CD is required, Thursday, November 28, 2019 cannot be included in the three (3) business day waiting period between the date the revised CD was provided to the borrower and the consummation of the loan.

Issues related to locks should be sent via email to lockdesk@carringtonms.com.

The Definition of Goldilocks

Last Week in Review: The Definition of Goldilocks

“Looking ahead, my colleagues and I see a sustained expansion of economic activity, a strong labor market, and inflation near our symmetric 2% objective as most likely.” — Fed Chairman Jerome Powell, 11/13/2019

This quote from our Fed Chair on Capitol Hill this past week was the definition of a “Goldilocks Economy” and reaffirmed the markets that there is no recession in sight!

Thanks to this strong economic backdrop, Mr. Powell also said it’s highly unlikely the Fed will cut rates again in December. Remember, Fed rate cuts don’t affect home loan rates, so don’t expect a sharp uptick in mortgage rates. Why?

As the Fed’s quote states, inflation remains low and near the Fed’s target. If inflation moves higher, home loan rates move higher. The opposite is also true.

Bottom line: home loan rates improved from the worst levels of the week and head into mid-November still hovering near three-year lows. What an opportunity when coupled with the Goldilocks backdrop.

New Carrington Flexible Advantage Plus 85% Expanded Cash-Out LTV Enhancement


Effective November 14, 2019, Carrington Mortgage Services, LLC (CMS) is pleased to introduce a new 85% Expanded Cash-Out LTV option for the Carrington Flexible Advantage Plus program.

The 85% Expanded Cash-Out LTV option is perfect for borrowers looking to pull out cash, consolidate debt, pay for college tuition, home improvements, etc.  We are excited to offer a product that allows creditworthy borrowers the ability to access higher loan to values with a 620 minimum FICO; especially when many other lenders have recently pulled back to 80% LTV.

Eligibility Requirements for LTVs 80.01-85% and FICOs 620-679

  • Applies to Carrington Flexible Advantage Plus only
  • Full Documentation
  • Detached Single Family Residence and Detached PUD Only (No Condos)
  • Maximum 45% DTI
  • Minimum Loan Amount = $100,000
  • Maximum Loan Amount = $600,000
  • Maximum Cash-in-Hand to borrower = $50,000

Note: All payoffs, which are excluded from the Cash-in-Hand limit must be reflected on the Closing Disclosure and paid off through closing.  Payoffs include, but are not limited to, IRS debt, tax liens, business debt, or paying off a spouse or partner to come off title.

  • Residual Income = $3000 plus $150 per dependent

Contact your Account Executive for details.


Refer to the Carrington Flexible Advantage Plus Program Matrix for additional information.

How Fast Rates Can Change

Last Week in Review: How Fast Rates Can Change

Right now, the biggest news story to follow is the U.S. and China trade negotiations.

This past week, home loans started inching higher but were “saved” momentarily midweek when reports came out suggesting a delay of a “phase one” trade deal signing. Remember that Bonds and home loan rates like bad news, so a disruption or delay of the trade signing was the reason for rates to improve off the worst levels midweek.

However, come Thursday, word that both the U.S. and China would roll back tariffs as a deal gets put together was very good news which pushed Stocks to all-time highs at the expense of Bonds and home loan rates.

Even with the recent uptick, home loan rates are at the same level they were at back on July 31st when the Fed cut rates for the first time in 10 years. The Fed has since cut rates two more times and home loan rates have not improved any further.

A word of caution: long-term rates like mortgages can move up very fast, and it is in a complacent environment like today when things suddenly change. Using history as an example, the 10-year Note yield has traded at 1.40% or lower on three separate occasions in the past seven years. In the two previous times — 2012 and 2016 — the 10-year yield quickly spiked to 3% and 2.75% respectively in just six months. This sharp move higher in yield also weighed on home loans, which also rose sharply.

Bottom line: for those considering a new mortgage, now may be an opportune time before this window closes.

Uploading Conditions Just Got Faster & Easier

See how uploading conditions has changed

Lock Extension Automation


Carrington Mortgage Services, LLC (CMS) is pleased to announce the Lock Desk has re-enabled the Auto-lock functionality. Effective immediately on Wholesale files, all rate lock extensions no longer require a written email request to be sent to the Lock Desk.  Broker Loan Officers now have the ability to submit Lock Extension requests directly in BrokerIQ.  This enhancement automatically approves the extension request with any pricing change for the extension fee. All existing Wholesale Rate Lock policies still apply.

Please note: Already processed manual lock extensions can only be processed through the Lock Desk. To extend a lock that has already been manually extended brokers should email the lock desk at lockdesk@carringtonms.com.


Refer to the Auto Lock Extension Guide on the BrokerIQ Training Center page for step by step instruction for Broker Loan Officers regarding how to process Auto Lock Extension requests through BrokerIQ.

Refer to the Wholesale Rate Lock Policy for detailed information on pricing and rate locks.

Fed Takes Action

Last Week in Review: Fed Takes Action

This past week the Federal Reserve cut the Fed Funds Rate for the third time this year, by .25%. Along with the rate cut, the Fed released a statement that suggested a “pause” in further cuts, but stated they will be ready to act again should “slowing global conditions” continue or if inflation declines further.

Speaking of inflation, it is important to remind ourselves that the Fed rate cut does not affect home loan rates. Home loan rates are slightly higher than they were right before the Fed started cutting rates in July. The main driver of long-term rates is inflation. If inflation goes up, long-term rates go up. The opposite is also true.

With that said, here’s an important quote from Fed Chairman Jerome Powell yesterday: “I think we would need to see a really significant move up in inflation that’s persistent before we would consider raising rates to address inflation concerns.” This means that the Fed is not likely to hike rates anytime soon, and long-term rates should not go too high too soon either because there is no threat of high inflation at this time.

Bottom line: home loan rates are near three-year lows and this week’s modest price improvement can be quickly erased should good news regarding U.S./China emerge.

Disclosing loans just got easier with Carrington

In an effort to make disclosing loans easier and faster, Carrington Mortgage Services, LLC will begin providing State Specific Disclosures as part of the lender disclosure package for all loans disclosed on or after November 1, 2019.

Disclosure packages will be available in brokerIQ where you can download the disclosures to meet signature requirements. It is not required to have the Broker and borrower sign the same form.

At this time this process update excludes: Advance Fee Agreements, Mortgage Broker Agreements, Dual Capacity Disclosures, and the Anti-Steering Disclosure. These disclosures will need to be supported as required.

To facilitate this change, we have created a resource which outlines the required disclosures for each state, and what is supported with the new process.



The Remedy for Higher Rates

Last Week in Review: The Remedy for Higher Rates

This past week home loan rates were essentially unchanged from the previous week, breaking a trend of higher rates since the beginning of October.

Bonds hate good news and there is still plenty to go around:

  • U.S./China trade dispute progress
  • Brexit progress
  • Corporate earnings remain positive, as does the economic outlook
  • Fed rate cut coming — more on that below

If the week was filled with good news, then why did Bonds and home loan rates remain steady?

There’s an old saying, “the cure for higher rates, is higher rates”, meaning that the recent uptick in rates was enough to attract investors searching for higher yield to buy Bonds, thereby halting the increase in rates.

Before we start celebrating and thinking we are on the road to lower rates in the days ahead, the Bond market must deal with a jam-packed week of news next week. The headline risk can easily cause the recent increase in rates to resume.

Bottom line: home loan rates remain near three-year lows, but up a bit from where they were at the beginning of October. As we head into a very important news week, if you are considering a home loan now is a terrific time to seize the opportunity before it goes away.

Three Reasons Why Rates Ticked Higher

Last Week in Review: Optimism Hurts Rates
This past week home loan rates ticked up, yet remain just above 3-year lows.

Here are 3 reasons why:

  1. Solid corporate earnings and future positive guidance from many public companies were a pleasant surprise for many who were bracing for a far more disappointing outlook. As a result, Stocks moved higher last week at the expense of Bonds and home loan rates.
  2. U.S./China trade deal optimism continues. It’s been slightly over a week since the U.S. and China came to a “handshake” trade agreement, and all signs are pointing to the deal being papered and signed in the coming weeks. This once uncertain event has become quite positive, and was another reason for Bonds to move lower and rates higher.
  3. A “Brexit” deal, where the U.K. will leave the European Union, has been drafted. The deal still has to pass a Parliamentary vote and carries some hurdles. But much like the U.S./China story, Brexit has gone from hopeless to a pretty good chance of a fix in a short amount of time. Once again, this is another uncertain event removed, and the renewed optimism helped Stocks and hurts home loan rates.

In positive housing news, new construction of single-family homes rose for the fourth consecutive month. This along with low home loan rates for the foreseeable future should help housing and the U.S. economy.

Bottom line: the present opportunity to refinance or purchase a home may never be matched. We are seeing unemployment at 50+ year lows, yet home loan rates at three-year lows — the best of both worlds. A strong economy AND low rates, truly a Goldilocks situation.

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