North Carolina Bona Fide Discount Points Assessment

Overview

In the state of North Carolina, borrowers may be charged bona fide discount points for the purpose of reducing their interest rate. For Owner Occupied Loans with a balance of $300,000 or less, up to 2.25% (Agency products) or 0.25% (Non-agency products) may be charged as Discount Points under the North Carolina Max Fee Rule if the bona fide assessment is met.

Determining Maximum Discount Points

North Carolina does not use the Average Prime Offer Rate (APOR) like the QM Test does. They use the Fannie Mae Average Rate.

The Fannie Mae Average Rate can be accessed on the following website:

https://www.fanniemae.com/singlefamily/historical-daily-required-net-yields

In this example the Fannie Mae Rate is used for bona fide discount point assessment.

3.34 + 1 = 4.34

If the Starting Adjusted Rate does not exceed 4.34, you can exclude 2.00 points, and have a maximum of 2.25% in Discount Points charged.

3.34 + 2 = 5.34

If the Starting Adjusted Rate does not exceed 5.34, you can exclude 1.00 point, and have a maximum of 1.25% in Discount Points charged.

If the Starting Adjusted Rate is greater than the comparable rate +2.00, no points are eligible for exclusion, and the maximum Discount Points are 0.25%.

Starting Adjusted Rate is the Rate closest to PAR.

Compliance Fails

Locks with non-bona fide Discount Points will encounter Compliance Fails in BrokerIQ, and the interest rate will need to be raised in order to reduce the Discount Points to proceed. If a higher rate with lower Discount Points is not available, Brokers should contact their Account Executive to review.

2020 Martin Luther King Jr Holiday Lock Desk Hours

Overview

The Lock Desk at Carrington Mortgage Services, LLC (CMS) will be closed on Monday, January 20, 2020 for Martin Luther King Jr. Day, which is a Federal Holiday. Normal lock hours will resume on Tuesday, January 21, 2020.

Rate 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:

  • Monday January 20, 2020 cannot be included in the rescission period for refinance transactions.
  • Monday January 20, 2020 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, Monday January 20, 2020 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, Monday January 20, 2020 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 Carrington Prime Advantage Product

Overview

Carrington Mortgage Services, LLC (CMS) is pleased to announce effective Thursday, December 5, 2019, CMS will introduce the new Carrington Prime Advantage program with Fixed, ARM and Interest-only ARM options. Carrington Prime Advantage allows alternative income documentation along with competitive pricing and loan amounts up to $2,500,000 and is designed for higher-credit-quality, non-agency borrowers who fall between the Carrington Flexible Advantage Plus (CFA+) program and conventional or jumbo loans.

Prime Advantage has the following features:

  • Improved Pricing: Pricing is 125-150 basis points more favorable than CFA+
  • Higher LTVs: 75% – 90% LTV available depending upon loan amounts (see matrix for details)
  • Maximum Cash-out: $1,000,000
  • Debt Ratio: Standard 43% and expanded up to 50% (see guidelines for details)
  • Occupancy: Primary residence and second homes
  • Amortization Types: Fixed, ARM and Interest-only ARM options
  • Loan Purpose: Purchase, Rate/Term Refinances and Cash-Out Refinances
  • Terms Available: 30 Year Fixed, 5/1 ARM, 7/1 ARM, 10/1 ARM, 5/1 ARM-IO, 7/1 ARM-IO, and 10/1 ARM-IO
  • Doc Types: Full Doc, 1-Year Alt Doc, 12 or 24 Month Bank Statements (Business or Personal) and Asset Depletion
  • Rural Properties Eligible: 80% Max LTV

Not available in all states. Refer to the Carrington Prime Advantage Program underwriting matrix and guidelines for additional information.

2019 Thanksgiving Holiday Lock Desk Hours

Overview

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.

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

Overview

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.

Resources

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

Uploading Conditions Just Got Faster & Easier

See how uploading conditions has changed

Lock Extension Automation

Overview

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.

Resources

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.

Veteran’s Day Holiday Lock Desk Hours

Overview

Carrington Mortgage Services (CMS) offices, including the Lock Desk, will be closed Monday, November 11, 2019 in observance of Veteran’s Day, which is a Federal Holiday. Normal Lock Desk hours will resume on Tuesday, November 12, 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:

  • Monday, November 11, 2019 cannot be included in the rescission period for refinance transactions.
  • Monday, November 11, 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, Monday, November 11, 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 Closing Disclosure (CD) is required, Monday, November 11, 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.

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.

 

SEE STATES HERE

Labor Day Holiday Lock Desk Hours

The Carrington Mortgage Services, LLC – Wholesale Lending Division Lock Desk will be closed on Monday, September 2, 2019 for Labor Day, which is a Federal Holiday. Normal lock hours will resume on Tuesday, September 3, 2019.

Additionally, the Lock Desk will close early on Friday, August 30, 2019 at 11:00 A.M. PST due to the early close of the financial markets.

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:

  • Monday, September 2, 2019 cannot be included in the rescission period for refinance transactions.
  • Monday, September 2, 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, Monday, September 2, 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, Monday, September 2, 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.

Thank you.

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