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Non-QM Program Underwriting Enhancements

September 13, 2021rashtonBulletin

Overview

Carrington Mortgage Services, LLC (CMS) is pleased to announce the following guideline enhancements for the Non-QM loan programs (Prime Advantage, Flexible Advantage Plus and Investor Advantage). These changes are effective September 13, 2021.

Prime Advantage Program

The Prime Advantage program has the following enhancements:

  • Increased Maximum Loan Amount to $3,500,000
  • Increased Maximum Cash-Out from $500,000 to $750,000
  • Escrow Waivers are now permitted when the Borrower’s FICO > 700 and < 80% LTV
  • Increased Loan Amount tier from $2,000,001–$2,500,000 to $2,000,001–$3,000,000
  • Added new loan amount tier from $3,000,001–$3,500,000 with LTVs shown in the table below:
Program Maximum LTVs Primary Residence & Second Homes
Full Doc Alt Doc
Loan Amount Reserves FICO Purchase & R/T Cash Out Purchase & R/T Cash Out
$3,000,001
up to
$3,500,000
12 Months 720+ 75% 65% 75% 65%
700 70% 60% 70% 60%

Investor Advantage

The Investor Advantage program has the following enhancements:

  • Increased Maximum Loan Amount to $2,000,000
  • Increased Maximum Cash-Out from $500,000 to $750,000

Flexible Advantage Plus Program

The Flexible Advantage Plus program has the following enhancement:

  • Escrow Waivers are now permitted when the Borrower’s FICO > 700 and < 80% LTV

Contacts

Please contact your Account Executive or Account Manager with any questions.

Carrington thanks you for your business.

Updated FEMA Disaster Declaration for New York – Hurricane Ida

September 13, 2021rashtonBulletin

Overview

Due to damage from remnants of Hurricane Ida in New York, FEMA has declared the following counties a disaster. Updated counties are listed in bold.

Incident Period: September 1, 2021 September 3, 2021

State FEMA Disaster Declaration Counties
New York September 5, 2021 Bronx, Dutchess, Kings, Nassau, Orange, Putnam, Queens, Richmond, Rockland, Suffolk, Sullivan, Ulster and Westchester

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 – 9/3/2021.
FHA Streamline No Not applicable
VA Full Doc and IRRRL Yes If the loan was not closed (signed) prior to the Declaration Date of 9/5/2021.
USDA Full Doc and Streamline Assist Yes If the original appraisal inspection date was prior to the Incident Period End Date – 9/3/2021.
Conventional* and Non-Agency Yes If the original appraisal inspection date was prior to the Incident Period End Date – 9/3/2021.

*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 Pennsylvania – Hurricane Ida

September 13, 2021rashtonBulletin

Overview

Due to damage from remnants of Hurricane Ida in Pennsylvania, FEMA has declared the following counties a disaster.

Incident Period: August 31, 2021 – September 5, 2021

State FEMA Disaster Declaration Counties
Pennsylvania September 10, 2021 Bucks, Chester, Delaware, Montgomery, Philadelphia and York

Please note:

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 – 9/5/2021.
FHA Streamline No Not applicable
VA Full Doc and IRRRL Yes If the loan was not closed (signed) prior to the Declaration Date of 9/10/2021.
USDA Full Doc and Streamline Assist Yes If the original appraisal inspection date was prior to the Incident Period End Date – 9/5/2021.
Conventional* and Non-Agency Yes If the original appraisal inspection date was prior to the Incident Period End Date – 9/5/2021.

*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.

Updated FEMA Disaster Declaration for New Jersey – Hurricane Ida

September 13, 2021rashtonBulletin

Overview

Due to damage from remnants of Hurricane Ida in New Jersey, FEMA has declared the following counties a disaster. Updated counties are listed in bold.

Incident Period: September 1, 2021 – September 3, 2021

State FEMA Disaster Declaration Counties
New Jersey September 5, 2021 Bergen, Essex, Gloucester, Hunterdon, Hudson, Mercer, Middlesex, Morris, Passaic, Somerset and Union

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 – 9/3/2021.
FHA Streamline No Not applicable
VA Full Doc and IRRRL Yes If the loan was not closed (signed) prior to the Declaration Date of 9/5/2021.
USDA Full Doc and Streamline Assist Yes If the original appraisal inspection date was prior to the Incident Period End Date – 9/3/2021.
Conventional* and Non-Agency Yes If the original appraisal inspection date was prior to the Incident Period End Date – 9/3/2021.

*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 North Carolina – Tropical Storm Fred

September 13, 2021rashtonBulletin

Overview

Due to damage from remnants of Tropical Storm Fred in North Carolina, FEMA has declared the following counties a disaster.

Incident Period: August 16, 2021 August 18, 2021

State FEMA Disaster Declaration Counties
North Carolina September 8, 2021 Avery, Buncombe, Haywood, Madison, Transylvania,
Watauga, and Yancey

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 – 8/18/2021.
FHA Streamline No Not applicable
VA Full Doc and IRRRL Yes If the loan was not closed (signed) prior to the Declaration Date of 9/8/2021 and submitted prior to the Incident Period End Date – 8/18/2021.
USDA Full Doc and Streamline Assist Yes If the original appraisal inspection date was prior to the Incident Period End Date – 8/18/2021.
Conventional* and Non Agency Yes If the original appraisal inspection date was prior to the Incident Period End Date – 8/18/2021.

*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 New York – Hurricane Ida

September 7, 2021rashtonBulletin

Overview

Due to damage from remnants of Hurricane Ida in New York, FEMA has declared the following counties a disaster.

Incident Period: September 1, 2021 September 3, 2021

State FEMA Disaster Declaration Counties
New York September 5, 2021 Bronx, Kings, Queens, Richmond
and Westchester

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 – 9/3/2021.
FHA Streamline No Not applicable
VA Full Doc and IRRRL Yes If the loan was not closed (signed) prior to the Declaration Date of 9/5/2021.
USDA Full Doc and Streamline Assist Yes If the original appraisal inspection date was prior to the Incident Period End Date – 9/3/2021.
Conventional* and Non-Agency Yes If the original appraisal inspection date was prior to the Incident Period End Date – 9/3/2021.

*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 New Jersey – Hurricane Ida

September 7, 2021rashtonBulletin

Overview

Due to damage from remnants of Hurricane Ida in New Jersey FEMA has declared the following counties a disaster.

Incident Period: September 1, 2021 September 3, 2021

State FEMA Disaster Declaration Counties
New Jersey September 5, 2021 Bergen, Gloucester, Hunterdon,
Middlesex, Passaic and Somerset

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 – 9/3/2021.
FHA Streamline No Not applicable
VA Full Doc and IRRRL Yes If the loan was not closed (signed) prior to the Declaration Date of 9/5/2021.
USDA Full Doc and Streamline Assist Yes If the original appraisal inspection date was prior to the Incident Period End Date – 9/3/2021.
Conventional* and Non-Agency Yes If the original appraisal inspection date was prior to the Incident Period End Date – 9/3/2021.

*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.

Non-Agency Asset Conversion Requirements

September 2, 2021jordanreedBulletin

Overview

Carrington Mortgage Services, LLC (CMS) is pleased to announce the new and improved Asset Conversion income option to Carrington Prime Advantage and Carrington Flexible Advantage Plus Programs for purchase, rate/term refinance and cash-out transactions. Asset Conversion will utilize the same qualification requirements as the full documentation matrix and best of all, NO additional LLPA’s!  With increased percentages of qualified assets and a reduced amortization period of 60 months, the Asset Conversion option adds another tool to your Non QM tool box.

How to Use Asset Conversion

To be eligible, borrowers must have the lesser of (a) 1.5 times the loan balance or (b) $1MM in qualified assets, both of which must be net of down payment, loan costs and required reserves to qualify.

Qualified Assets can be comprised of stocks, bonds, mutual funds, vested amount of retirement accounts and bank accounts. If a portion of the qualified assets are being used for down payment, closing costs, or reserves, those amounts must be excluded from the balance before analyzing a portfolio for income determination. Please note: Restricted stock and margined accounts are not considered qualified assets and are not eligible.

The following assets are considered Qualified Assets and can be utilized to calculate income:

·      100% of checking, savings, and money market accounts

·      100% of the remaining value of stocks & bonds

·      70% of retirement assets

·      100% Cash Value of Life Insurance

·      3-months seasoning of assets required

The following assets are not permitted:

·      Funds in Foreign Banks

·      Funds in Business Accounts

Asset Conversion may be used in conjunction with Full Income Documentation, but cannot be used in conjunction with Bank Statement Income Documentation or 1-year Alternative Document income types.

The income calculation is as follows:

Monthly Income = Net Qualified Assets / 60 Months

Resources

See the Asset Conversion Calculator and Flexible Advantage Plus Program Matrix and Carrington Prime Advantage Program Matrix for additional information regarding credit score and LTV restrictions.

Contacts

Please contact your Account Executive or Account Manager with any questions.

Carrington thanks you for your business.

FEMA Disaster Declaration for Louisiana Hurricane Ida

August 30, 2021rashtonBulletin

Overview

Due to damage from Hurricane Ida in Louisiana, FEMA has declared the following parishes (counties) a disaster.

Incident Period: August 26, 2021 and Continuing

State FEMA Disaster Declaration Parishes
Louisiana August 29, 2021 Ascension, Assumption, East Baton Rouge, East Feliciana, Iberia, Iberville, Jefferson, Lafourche, Livingston, Orleans, Plaquemines, Pointe Coupee, St. Bernard, St. Charles,
St. Helena, St. James, St. John the Baptist, St. Martin,
St. Mary, St. Tammany, Tangipahoa, Terrebonne, Washington, West Baton Rouge and West Feliciana

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 08/29/2021.
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.

FEMA Disaster Declaration for California Wildfires

August 25, 2021rashtonBulletin

Overview

Due to damage from wildfires in California, FEMA has declared the following counties a disaster.

Incident Period: Jul 14, 2021 and Continuing

State FEMA Disaster Declaration Counties
California August 24, 2021 Lassen, Nevada, Placer and Plumas

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 08/24/2021.
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.