FEMA Disaster Declaration for Washington Flooding and Mudslides
Overview
Due to flooding and mudslides in Washington, FEMA has declared the following counties a disaster.
Incident Period: November 13, 2021 – November 15, 2021
| State | FEMA Disaster Declaration | Counties |
| Washington | January 5, 2022 | Clallam, Skagit and Whatcom |
Re-Inspection by Product Type
| If your loan is … | A re-inspection is required … | Under these circumstances … |
| FHA Full Doc | Yes | If the original appraisal inspection date was prior to the Incident Period End Date – 11/15/21. |
| FHA Streamline | No | Not applicable |
| VA Full Doc and IRRRL | Yes | If the loan was not closed (signed) prior to the Declaration Date of 01/05/22. |
| USDA Full Doc and Streamline Assist | Yes | If the original appraisal inspection date was prior to the Incident Period End Date – 11/15/21. |
| Conventional* and Non-Agency | Yes | If the original appraisal inspection date was prior to the Incident Period End Date – 11/15/21. |
*If an appraisal was not required due to a property inspection waiver (PIW), an inspection report will still be required.
Contacts
Please contact your Account Executive or Account Manager with any questions.
Carrington thanks you for your business.
FEMA Disaster Declaration for Colorado Wildfires and Straight-line Winds
Overview
Due to wildfires and straight-line winds in Colorado, FEMA has declared the following county a disaster.
Incident Period: December 30, 2021 and Continuing
| State | FEMA Disaster Declaration | Counties |
| Colorado | December 31, 2021 | Boulder |
Re-Inspection by Product Type
| If your loan is … | A re-inspection is required … | Under these circumstances … |
| FHA Full Doc | Yes | If the original appraisal inspection date was prior to the Incident Period End Date – Continuing**. |
| FHA Streamline | No | Not applicable |
| VA Full Doc and IRRRL | Yes | If the loan was not closed (signed) prior to the Declaration Date of 12/31/2021. |
| USDA Full Doc and Streamline Assist | Yes | If the original appraisal inspection date was prior to the Incident Period End Date – Continuing**. |
| Conventional* and Non-Agency | Yes | If the original appraisal inspection date was prior to the Incident Period End Date – Continuing**. |
*If an appraisal was not required due to a property inspection waiver (PIW), an inspection report will still be required.
**In cases where FEMA has not yet issued an Incident End Date and the disaster is “Continuing”, the earliest CMS will permit a re-inspection is a minimum of 14 calendar days from the Incident Period Start Date.
Contacts
Please contact your Account Executive or Account Manager with any questions.
Carrington thanks you for your business.
Escrow Repair Loan Program Discontinued
Overview
Effective December 31, 2021, Carrington Mortgage Services, LLC (CMS) will discontinue offering FHA 203(b) Escrow Repair loans through the Wholesale Channel. Brokers must submit all 203(b) loans prior to the December 31, 2021 effective date or the loans will be denied.
FEMA Disaster Declaration for Alabama Severe Storms and Flooding
Overview
Due to severe storms and flooding in Alabama, FEMA has declared the following counties a disaster.
Incident Period: October 6, 2021 – October 7, 2021
| State | FEMA Disaster Declaration | Counties |
| Alabama | December 21, 2021 | Jefferson and Shelby |
Re-Inspection by Product Type
| If your loan is … | A re-inspection is required … | Under these circumstances … |
| FHA Full Doc | Yes | If the original appraisal inspection date was prior to the Incident Period End Date – 10/07/21. |
| FHA Streamline | No | Not applicable |
| VA Full Doc and IRRRL | Yes | If the loan was not closed (signed) prior to the Declaration Date of 12/21/2021. |
| USDA Full Doc and Streamline Assist | Yes | If the original appraisal inspection date was prior to the Incident Period End Date – 10/07/21. |
| Conventional* and Non-Agency | Yes | If the original appraisal inspection date was prior to the Incident Period End Date – 10/07/21. |
*If an appraisal was not required due to a property inspection waiver (PIW), an inspection report will still be required.
Contacts
Please contact your Account Executive or Account Manager with any questions.
Carrington thanks you for your business.
Holiday Lock Desk Hours & Key Compliance Dates
Overview
During the 2021 holiday season the Carrington Mortgage Services, LLC (CMS) Lock Desk, will observe the following schedule:
- Thursday, December 23, 2021 – Close early at 11:00 AM PST (early market closure of 2:00 PM EST)
- Friday, December 24, 2021 – CMS Offices closed for the Christmas holiday
- Monday, January 3, 2022 – CMS Offices closed for New Year’s Day holiday
Normal Lock Desk hours will resume December 27, 2021 and January 4, 2022.
Rate Locks that expire on the holidays will automatically roll to the next business day. In addition there are some important disclosure considerations associated with the holidays:
- Friday, December 24, 2021 and Monday January 3, 2022 cannot be included in the rescission period for refinances.
- Friday, December 24, 2021 and Monday January 3, 2022 cannot be included in the seven (7) business day waiting period between the 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, Friday, December 24, 2021 and Monday January 3, 2022 cannot be included in the three (3) day business 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, Friday, December 24, 2021 and Monday January 3, 2022 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.
New ProcessIQ Loan Processing Service
Overview
Carrington Mortgage Services, LLC (CMS) is pleased to announce the new ProcessIQ service available for Wholesale Brokers. This new service provides approved CMS Brokers with the option to have their loans processed by Carrington. This service is unique in the industry and gives Carrington a competitive advantage over all other lenders! ProcessIQ allows brokers the choice to expand the overall underwriting services for which Carrington has deep expertise. Brokers must sign up to be part of the program with their Account Executive, but there are no special requirements to sign up.
Program Details
With ProcessIQ, when an enrolled Broker submits a Non-QM or full-doc FHA, VA or USDA loan they may request the Carrington ProcessIQ team to work directly with the borrower to process the loan. The Broker’s Loan Officer continues to manage all licensable activities in the same manner as they do today; however, CMS will handle everything else with the loan transaction.
Some of the Key Benefits Brokers enjoy when using ProcessIQ include:
- A first-rate experience for the borrower
- The capacity to originate complex loans
- Additional processing capacity to originate more loans
- Proactive communication to stay informed every step of the way
- No expensive 3rd Party Processing Fees which average over $800 per loan file
- Just $200 added to our already low CMS Underwriting Fee
Fees
ProcessIQ has the following fee structure:
| Loan Type/State | Underwriting Fee* | Underwriting Fee with ProcessIQ* |
| Conforming/Government | $699 | $899 |
| Non-QM | $750 | $950 |
| North Carolina | $150 | $150 |
| New Jersey & Iowa | $0 | $0 |
*Conventional and Government Stream/IRRRL loans are not eligible for the new ProcessIQ service.
Contact
Contact your account executive sign up or click here to get more information.
Updated Non-QM Product Underwriting Guidelines – DSCR FICO from 620
Overview
Carrington Mortgage Services, LLC (CMS) is pleased to announce the following Carrington Advantage product underwriting updates (highlighted in red).
Please note this is an abbreviated summary of the guideline changes. All updates should be viewed within the context of the full guidelines available on Carrington BrokerIQ.
| Investor Advantage Program | ||||||||||||||||||||||||
| Old Requirements | Updated Requirements | |||||||||||||||||||||||
Added new FICO and LTV bands for Purchase, Rate Term and Cash-Out transactions for loan amounts of $1M and under.
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| Lease Requirements
For refinance transactions, an executed lease with no less than 3 months remaining at time of close is required for all units in the subject property. Month-to-month tenancy is not subject to this requirement with sufficient evidence (such as a signed extension letter). Purchase transactions may be vacant. The following requirements apply to refinance transactions:
If subject property is not leased see the Carrington Investor Advantage Program Matrix for LTV restrictions. |
Lease Requirements
For refinance transactions, an executed lease with no less than 3 months remaining at time of close is required for all units in the subject property contributing to the DSCR calculation. Month-to-month tenancy is not subject to this requirement with sufficient evidence (such as a signed extension letter). Purchase transactions may be vacant. Existing leases and title reports must be reviewed to ensure clear title and first lien enforceability. Tenants must not have a first right of refusal to purchase the subject property. Lease terms must not exceed three (3) years. If subject property is not leased, proposed rents may be used for vacant units based on the appraiser’s rent analysis. See the Carrington Investor Advantage Program Matrix for LTV restrictions for unleased properties on refinance transactions. |
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| All Programs | |
| Old Requirements | Updated Requirements |
| Rate/Term Refinance
If the most recent first mortgage transaction on the property was a cash-out refinance within the last 6 months, the new mortgage is not eligible as a rate/term and must proceed as a cash-out refinance. Note date to note date is used to calculate the 6 months. |
Rate/Term Refinance
If the most recent first mortgage transaction on the property was a cash-out refinance within the last 6 months, the new mortgage is not eligible. Note date to note date is used to calculate the 6 months. |
| Flexible Advantage/Advantage Plus Programs | |
| Old Requirements | Updated Requirements |
| First Time Home Buyers
A First-Time Home Buyer is defined as a purchase transaction where any borrower has had no ownership interest in a residential property in the United States during the preceding 3-year period. The following requirements apply to First-Time Home Buyer transactions: Primary residence and second homes only Minimum 580 score 6 months reserves after closing |
First Time Home Buyers
A First-Time Home Buyer is defined as a purchase transaction where any borrower has had no ownership interest in a residential property in the United States during the preceding 3-year period. The following requirements apply to First-Time Home Buyer transactions: Primary residence and second homes only Minimum 620 score 6 months reserves after closing |
| Flexible Advantage/Advantage Plus and Prime Advantage Programs | |
| Old Requirements | Updated Requirements |
| Business Assets
For self-employed borrowers, business assets are an acceptable source of funds for down payment, closing costs, and reserves. The borrowers on the loan must have 100% ownership of the business and must be the owners of the account. A letter from a CPA or borrower must be obtained verifying that the withdrawal of funds for the transaction will not have a negative impact on the business. If a CPA letter is not provided, a cash flow analysis of the tax returns, business bank statements, and P&L (when applicable) must be completed by the Underwriter to determine if the withdrawal of funds from the business is acceptable. |
Business Assets
For self-employed borrowers, business assets are an acceptable source of funds for down payment, closing costs, and reserves. The borrowers on the loan must have 50% ownership of the business and must be the owners of the account or demonstrate ability to access the account. Business assets must be multiplied by the borrower’s ownership percentage of the business. For bank accounts solely in the name of a business, access must be demonstrated using a canceled check signed by the borrower, signature card or other documentation from the bank, CPA letter, or corporate documents such as a corporate resolution, operating agreement or similar. A letter from a CPA or borrower must be obtained verifying that the withdrawal of funds for the transaction will not have a negative impact on the business. If a CPA letter is not provided, a cash flow analysis of the tax returns, business bank statements, and P&L (when applicable) must be completed by the Underwriter to determine if the withdrawal of funds from the business is acceptable Note: The requested information shall not be interpreted as an assurance of solvency. |
Contacts
Please contact your Account Executive or Account Manager with any questions.
Carrington thanks you for your business.
FEMA Disaster Declaration for Kentucky Severe Storms, Straight-Line Winds, Flooding, and Tornadoes
Overview
Due to severe storms, straight-line winds, flooding, and tornadoes in Kentucky, FEMA has declared the following counties a disaster.
Incident Period: December 10, 2021 and continuing
| State | FEMA Disaster Declaration | Counties |
| Kentucky | December 12, 2021 | Caldwell, Fulton, Graves, Hopkins, Marshall, Muhlenberg, Taylor, and Warren |
Re-Inspection by Product Type
| If your loan is … | A re-inspection is required … | Under these circumstances … |
| FHA Full Doc | Yes | If the original appraisal inspection date was prior to the Incident Period End Date – Continuing*. |
| FHA Streamline | No | Not applicable |
| VA Full Doc and IRRRL | Yes | If the loan was not closed (signed) prior to the Declaration Date of 12/12/2021. |
| USDA Full Doc and Streamline Assist | Yes | If the original appraisal inspection date was prior to the Incident Period End Date – Continuing*. |
| Conventional** and Non-Agency | Yes | If the original appraisal inspection date was prior to the Incident Period End Date – Continuing*. |
*In cases where FEMA has not yet issued an Incident End Date and the disaster is “Continuing”, the earliest CMS will permit a re-inspection is a minimum of 14 calendar days from the Incident Period Start Date.
**If an appraisal was not required due to a property inspection waiver (PIW), an inspection report will still be required.
Contacts
Please contact your Account Executive or Account Manager with any questions.
Carrington thanks you for your business.
New Appraisal Ordering Platform – The Mercury Network
The Mercury Network
Carrington Mortgage Services, LLC (CMS) is pleased to announce that effective December 10, 2021, Wholesale brokers will be able to utilize the Mercury Network, a leading Appraisal Vendor Management Company, to coordinate appraisal ordering, payment billing and appraisal delivery by CMS approved Appraisal Management Companies (AMCs).
Brokers with existing Mercury Accounts can log in and access CMS approved AMCs to begin placing appraisal orders. Brokers without an existing Mercury Account should access the Mercury Network via Carrington Wholesale Appraisal Management to set up an individual account Persona and customize what messages they do and do not want to receive.
Please Note: Brokers must establish a Mercury Account by December 30, 2022 and transition to ordering appraisals via the Mercury Network. Any appraisals already in progress ordered prior to December 30, 2021 must be completed directly through the original AMC.
Contact Us
If you have questions about the Mercury Network or the appraisal ordering process, please contact your account executive.
Maximum Loan Limits for 2022 – Conventional and FHA Programs
Conventional Loans
The Federal Housing Finance Agency (FHFA) has issued the following maximum first mortgage loan limits that will apply to conventional loans for acquisition by Fannie Mae / Freddie Mac with a note date on and after January 1, 2022.
| 2022 Conventional Loan Limits | ||
| Units | Conforming Amount – Contiguous States and District of Columbia | Conforming Amount – Alaska and Hawaii |
| One | $647,200 | $970,800 |
| Two | $828,200 | $1,243,050 |
| Three | $1,001,650 | $1,502,475 |
| Four | $1,244,850 | $1,867,275 |
The Carrington Pricing Engine has been updated to price and lock loans with the new higher conventional loan limits. To take advantage of the higher limits, CMS must fund and sell the loans to Fannie Mae/Freddie Mac on and after January 1, 2022 and loans will be conditioned so they cannot close until January 1, 2022 or after.
FHA Loans
For calendar year 2022, the Department of Housing and Urban Development (HUD) announced the following maximum first mortgage loan limits that will apply to FHA loans with case numbers assigned on and after January 1, 2022 through December 31, 2022:
| 2022 FHA Loan Limits | |||
| Units | Low Cost Areas | High Cost Areas | Alaska and Hawaii |
| One | $420,680 | $970,800 | $1,456,200 |
| Two | $538,650 | $1,243,050 | $1,864,575 |
| Three | $651,050 | $1,502,475 | $2,253,700 |
| Four | $809,150 | $1,867,275 | $2,800,900 |
Please Note: These new limits apply to FHA loans with case numbers assigned on and after January 1, 2022 through December 31, 2022. CMS will accept loan submissions with a 2022 higher loan amount and loans will be conditioned for the case information to be opened on or after January 1, 2022. This may cause delays in ordering the appraisal as there will not be a case number for you to provide the appraiser until after the case is ordered.
Loan Limits Lookup
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