🤷🏻♂️ What does this mean for you?
🤷🏻♂️
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if you are a consumer who was declined at another lender because of
credit score requirements, give us a call we may be able to help
✅ More consumers will be able to access credit to restructure their loans for better payments
NMLS 97916
Charlotte, NC 28211
movement.com/Melissa.Messick
Office (980) 777-1042
Mobile (704) 905-4009
Fax (704)
512-0826
NOW is the time to get the mortgage plan established. Please call me for a preapproval on a primary, 2nd home or investment purchase.
CREDIT SCORE REQUIREMENTS
While many lenders are making sweeping changes in credit score requirements, I’m happy to report that -for now- we have minor changes that still allow us to support as many qualified borrowers as possible
-Conventional loans require minimum 620+
-FHA/VA loans have gone up to minimum 640+
*Debt to income qualifying- if we receive Approve/Eligible as we run it through our automated system AND we can support these findings with the proper documentation, then we should be able to move forward. No company guideline overlays.
EMPLOYMENT VERIFICATION
As unemployment numbers continue to increase, Highlands must have affirmation at the closing table that borrower(s) employment, income, and financial condition has not been adversely impacted. Highlands requires a final Verbal Verification Of Employment on all transactions 1 business day prior to closing.
CONTINUITY OF INCOME
In addition to Verbal Verifications Of Employment, agencies and investors are re-emphasizing the lender’s responsibility to ensure any disruption in the borrower’s employment and/or income will not negatively impact their ability to repay. States and communities are continuing to place additional restrictions on many types of businesses that may impact the borrower’s income. Additional documentation may be required in known impacted lines of employment and self-employment such as auto, airline, schoolteachers, retail, restaurant/bar server, etc.
PROGRAM SUSPENSIONS
- (NCHFA and SCHFA) New Bond Loan Originations suspended until further notice - This includes any bond loan not registered and locked currently with the bond authority.
- Highlands Purchase Plus, Fannie Renovation and 203K (all RENOVATION LOANS) suspended until further notice
APPRAISAL WAIVERS
Fannie Mae Property Inspection Waiver (PIW - Highlands will continue to accept PIW’s on eligible Fannie Mae DU APPROVE/ELIGIBLE loans only. (DU=Desktop underwriter- the automated underwriting computer program we run files through as a first pass to know whether loan is possibly acceptable and what documents are needed for underwriting.)
DU PIW finding must be received on the final DU run at time of Clear To Close and not be one of the following Fannie Mae ineligible transaction types: properties in declared disaster areas; new construction; 2-4 unit; leasehold; properties with resale restrictions; manufactured homes; non arm’s length; gifts of equity; or Texas Equity 50(a)(6) loans.
APPRAISAL turn times have increased slightly as the demand increased and at the same time access to properties have become more of a challenge. I would expect to plan on minimum 10 days to 2 weeks for completion in urban areas and a little longer for some of the more rural areas/counties.
SELF EMPLOYED BORROWERS
- Must document business is open and operating within 10 days of closing.
- Examples of methods to confirm the Borrower's business is currently operating:
- Evidence of current work (e.g., executed contracts or signed invoices that indicate the business is operating on the day the Seller verifies self-employment)
- Document current business receipts within 10 Business Days of closing (e.g., payment for services performed)
- Processor verbally calls to confirm business is open and operating with or without restrictions.
- Processor confirms business website demonstrating activity supporting current business operations (e.g., timely appointments for estimates or service can be scheduled)
JUMBO LOANS
Warehouse lenders are tightening the requirements on jumbo loans. Until further notice, Highlands’ maximum loan amount will be $1.5 million and we are limited to our bank investors as outlets for the loans we originate. This is not surprising considering the liquidity concerns for the investors that aren’t banks.
So there is no confusion: our warehouse banks love us, but they hate illiquid jumbos.
(Illiquid = No funding- no buyer of the bonds that usually fund them. It’s a lack of the initial bond purchases that decrease the funds available.)
**Reminder that we are taking full advantage of the recent cuts in the Federal lending rate to utilize “piggy back” loans so we can safely enter the JUMBO purchase space. We can combine our awesome 1st mortgage rates up to a loan amount of $510,400 and work with our community banking partners to offer a 2nd mortgage (HELOC) to get us into the $600,000 and up price ranges. This also creates an opportunity to put as little as 5% down on a JUMBO purchase and avoid any private mortgage insurance
PRIVATE MORTGAGE INSURANCE
PMI companies raised their rates, which can impact buying power. Folks already preapproved at a certain price point may be affected by the resulting increase to debt to income ratio. I am reviewing all preapproved buyers in my pipeline and made note of those that are at the top end of their qualifying range so we can navigate through these industry adjustments accordingly.
HIGHLANDS FOCUS ON DEADLINES
Our underwriting and processing teams continue to work remotely and overtime to keep us on track for hitting our deadlines. (Due Diligence and Closing dates). We are averaging slightly under 30 days for closings.
Highlands “slim close” option for borrowers who want to limit the face time needed for closing is working very well! Eligible borrowers who choose this option e-sign the documents that do not require a notary at home, which leaves them with only 7-8 documents to sign in the presence of attorney or notary.
Ashleigh Clark, NMLS #92328Sr Loan Officer
Highlands Residential Mortgage, NMLS #134871
15235J John J Delaney Dr, Charlotte, NC 28277
Office 704-366-7711 |Cell 704-307-9908 |Fax 704-943-0532
Ashleighclark@highlandsmortgage.com
www.HighlandsMortgage.com
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