Non-QM Program Underwriting Enhancements
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
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
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
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
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
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
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
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
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
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.
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