Direct Mortgage Wholesale News

Direct Mortgage - Week of 15 Mar 2010

Jim Beech — Wed, 17 Mar 2010 19:44:22 GMT

Week of March 15, 2010

Price adjustments

Subordinate Financing:
For all conventional loans with Subordinate Financing with LTV >75 – 80% and CLTV >75 – 90% (80/10/10) – price adjustment is decreasing from .500 pt. to .250 pt.

DU Refi Plus, DU Super Refi Plus, and LP Relief Refi:
Loan Programs 6213, 6214, 6215, 6216, 6217, 6220 with CLTV > 110% - price adjustment is increasing from 1.500 pt. to 2.00 pt.

Texas Cash-out:
For all conventional Texas Cash-outs – price adjustment is decreasing from 1.500 pt. to 0.125 pt. (standard Cash-out adjustments still apply).

Direct Mortgage Update - Week of 8 Mar 2010

Jim Beech — Thu, 11 Mar 2010 15:28:06 GMT

Week of March 8, 2010

Loan Program Updates

VA Jumbo
The VA Jumbo Purchase (Program 6197) and Refinance (Program 6198) are now available.

eSignature Disclosures Requirement

Effective March 1, 2010 — properly executed eSigned disclosures are now required for resubmission to Underwriting. Exception requests will be considered.

eSigned Disclosures To Be Required - Direct Mortgage

Jim Beech — Thu, 25 Feb 2010 22:53:15 GMT

The following policies regarding the requirement for eSigned disclosures will go into effect on March 1st and April 2nd, 2010:

Effective March 1, 2010 — properly executed eSigned disclosures will be required for resubmission to Underwriting. Exception requests will be considered.

Effective April 2, 2010 — properly executed eSigned disclosures will be required for submission to Underwriting. Exception requests will be considered.

If you have a question about this policy, please contact your account executive or Broker Support at brokersupport@directcorp.com or 800-924-3884.

Direct Mortgage - Week of Feb 22

Jim Beech — Wed, 24 Feb 2010 17:29:21 GMT

Week of Feb 22, 2010

Loan Program Updates

Properties Recently Listed For Sale
DMC allows financing on properties recently listed for sale.

However, the subject property listing must be removed, withdrawn or cancelled at least 1 day prior to the date of the loan application.
Government (FHA, VA, USDA) cash-out loans are limited to 70% LTV until the subject property listing has been removed, withdrawn or cancelled for a period of 6 months prior to the date of the loan application.
Government (FHA, VA, USDA) rate/term refinance loans are limited to 90% LTV until the subject property listing has been removed, withdrawn or cancelled for a period of 6 months prior to the date of the loan application.
Conventional cash-out loans are limited to 70% LTV until the subject property listing has been removed, withdrawn or cancelled for a period of 6 months prior to the date of the loan application.
Conventional rate/term refinance loans are limited to 80% until the subject property listing has been removed, withdrawn or cancelled for a period of 6 months prior to the date of the loan application.

Resubmissions & eSignatures

Effective March 1, 2010 — properly executed eSigned disclosures will be required for resubmission to Underwriting. Exception requests will be considered.

Effective April 2, 2010 — properly executed eSigned disclosures will be required for submission to Underwriting. Exception requests will be considered.

Turn Times

Funding: Two (2) business days when closing docs are received prior to 10:00 am.
Loans received after 10:00 am will be counted as received the following day.

Underwriting: The oldest loan in the underwriting queue was submitted on 2/23/2010.

Streamline Refinances

During February the underwriting fee for FHA Streamline Refinances is $410.

Direct Mortgage - Week of Feb 15, 2010

Jim Beech — Thu, 18 Feb 2010 23:01:31 GMT

Week of Feb 15, 2010

Loan Program Updates

FHA Waiver of Requirements
All FHA purchase transactions with case numbers and contract dates on or after February 1, 2010 will follow the Waiver of Requirements set by HUD for properties that are sold within 90 days of the seller’s acquisition.

Florida Investment properties
Florida Investment properties are now eligible in the state of Florida. (Investment Condominiums are still not eligible for financing.)

FHA Condo Approvals
Effective February 1, 2010, Fannie Mae and Freddie Mac no longer accept FHA condominium approvals for conventional mortgage loans.

Conventional Condos
DMC requires an existing, unexpired FNMA Form 1028 or approval from Fannie Mae’s Project Eligibility Review Service (PERS) for all conventional loans for condominiums.

Appraiser's Name & Case Number
HUD no longer requires an appraiser's name to order a case number - however, the appraiser does have to be indentified before the loan can fund.

Appraisals - USDA & FHA
As of February 15th DMC requires all FHA appraisals and appraisals for USDA Rural Housing to be ordered through DMC. Loan must be locked and appraisal performed prior to this date to use broker-ordered appraisals.

Reminder - VA 1% Cap
A 1% loan origination charge is the only fee that can be charged on a VA loan.

Reminder - New Programs

6215 LP Relief Refi - max 125% LTV.
6216 DU Refi Plus - max 125%.
6219 FHA Good Neighbor Next Door.
6220 DU Super Refi Plus - max 125%; HUD County Limit.

Turn Times

Funding: Two (2) business days when closing docs are received prior to 10:00 am.
Loans received after 10:00 am will be counted as received the following day.

Underwriting: The oldest loan in the underwriting queue was submitted on 2/17/2010.

Streamline Refinances

During February the underwriting fee for FHA Streamline Refinances is $410.

Week of Feb 1, 2010 - Direct Mortgage

Jim Beech — Fri, 05 Feb 2010 17:48:26 GMT

Week of Feb 1, 2010

Loan Program Updates

Loan Program-Specific Changes

6203 FHA High Balance Streamline is now eligible in HI, CA, and Miami-Dade, FL. The FHA Case Number must be dated on or after 11/17/09
6214 LP Relief Refi is limited to 105% LTV.

Wayne County, Michigan

DMC will no longer fund loans in Wayne County, Michigan.

Appraisals - USDA & FHA

As of February 15th we will require all FHA appraisals and appraisals for Rural Housing to be ordered through DMC. Loan must be locked and appraisal performed prior to this date to use broker-ordered appraisals.

New Programs

6215 LP Relief Refi - max 125% LTV.
6216 DU Refi Plus - max 125%.
6219 FHA Good Neighbor Next Door.
6220 DU Super Refi Plus - max 125%; HUD County Limit.

Price Adjustments

The Maximum YSP (which is now paid to the borrower) has been increased to 4.00 pts.

FHA Good Neighbor Next Door Program: FHA pricing + 0.25 adjustment.

Turn Times

Funding: Two (2) business days when closing docs are received prior to 10:00 am.
Loans received after 10:00 am will be counted as received the following day.

Underwriting: The oldest loan in the underwriting queue was submitted on 2/1/2010.

Holiday Schedule

Feb 15, 2010 (Presidents Day) - DMC will be open, but not funding loans. This is not a recission day.

Streamline Refinances

During February the underwriting fee for FHA Streamline Refinances is $410.

Direct Mortgage - Week of Jan 25, 2010

Jim Beech — Fri, 05 Feb 2010 17:45:53 GMT

Week of Jan 25, 2010

Loan Program Updates

Non-Arms Length and Identity-of-Interest

Non-Arms Length and Identity-of-Interest transactions are NOT allowed when the occupancy type is 2nd Home or Investment.
Non-Arms Length and Identity-of-Interest transactions are NOT allowed when the seller has entered into a short sell agreement with the existing lien holder or when a bank is the seller and the buyer is related to the previous owner.
Non-Arms Length and Identity-of-Interest transactions ARE allowed – on a case by case basis for primary homes. DMC does not allow “bailouts.”

Cash Out – 2nd and Investment Properties

Cash-out investment properties and second homes allowed to 70% LTV with 720 credit score, 45% total expense ratio, and 1 year title seasoning.

Turn Times

Funding: Two (2) business days when closing docs are received prior to 10:00 am.
Loans received after 10:00 am will be counted as received the following day.

Underwriting: The oldest loan in the underwriting queue was submitted on 1/22/2009.

Streamline Refinances

During January the underwriting fee for FHA Streamline Refinances is $410.

Direct Mortgage - Week of Jan 18, 2010

Jim Beech — Fri, 22 Jan 2010 00:05:03 GMT

Week of Jan 18, 2010

Loan Program Updates

Condominium Approvals
Effective February 1, 2010, Fannie Mae will no longer accept FHA condominium approvals for conventional mortgage loans.

Effective December 7, 2009, the VA will no longer accept FHA condominium project approvals in lieu of VA project review. Condominiums previously accepted by the VA, based upon FHA acceptance, will continue to be acceptable to the VA.

In summary, DMC’s condominium policy is as follows:

FHA Loans: Condominium projects must be approved via the HUD Review and Approval Process (HRAP). DMC will not utilize the Delegated Lender Review and Approval Process (DELRAP).
VA Loans: Condominium projects must be approved in the VA’s Condo/PUD – Builder (CPB).
Fannie Mae Loans: DMC will require an existing, unexpired FNMA Form 1028 or approval from Fannie Mae’s Project Eligibility Review Service (PERS).
Freddie Mac Loans: Condominium projects must be approved using the method required by DMC for FHA or FNMA loans.
Rural Housing Loans: Condominium projects must be approved using one of the methods required by DMC for FHA, VA, FNMA or FHLMC loans.

Self-employed Borrowers
Starting April 16, 2010, self-employed borrowers will need to provide 2009 tax returns. DMC must be able to validate the tax returns with tax transcripts from the IRS.

Until April 15, 2010, financial statements (profit/loss & balance sheet) along with Oct – Dec 2009 business bank statements will be required from self-employed borrowers.

Debt Calculation
Revolving and installment debt paid off prior to the date of the loan application and credit report does not need to be included in the debt-to-income ratios. However, funds used to pay these items may need to be sourced and seasoned. Here is our policy regarding debts paid after the date of the loan application:

Purchase & Rate/Term Loans:
- Revolving debts may not be paid off or paid down in order to qualify.
- Installment loans may not be paid down in order to qualify. Installment loans may be paid off in order to qualify. A borrower may not use gifts funds to pay off an installment loan in order to qualify.
Cash-out Loans:
- Revolving debts may be paid off in order to qualify, as long as they are paid through closing using loan proceeds.
- Installment loans may not be paid down in order to qualify. Installment loans may be paid off in order to qualify. They may be paid off with borrower funds or loan proceeds. A borrower may not use gift funds to pay off an installment loan in order to qualify.

Closing Docs Updates

DMC now requires approved HUD-1’s prior to sending the closing package to the Settlement Agent/Escrow Officer. The doc drawer will send Closing Instructions to the Settlement Agent/ Escrow Officer and require a HUD-1 returned, which must be approved by the Loan Officer and Direct Mortgage, Corp. After the HUD-1 has been approved by the Loan Officer and Direct Mortgage, Corp., the Closing Package will be sent to all parties in Loan Contacts. At this point there are to be no changes to the HUD – 1.

4506-T

DMC now requires a wet signature on the 4506-T form.

Price Adjustments

All conforming products

2 - 4 units adjustment will be reduced from 1.25 pt. to 1.00 pt.

DU Refi Plus and LP Relief Refi programs

All Fico Score adjusters that are greater than 2.00 pts. will be capped at 2.00 pts.
2 unit property adjustment will be reduced from 1.25 pt. to 1.00 pt.
3 -4 units w/ LTV >80 – 85% new adjustment of 1.500 pts.
3 -4 units w/ LTV >85% new adjustment of 2.00 pts.

Turn Times

Funding: Two (2) business days when closing docs are received prior to 10:00 am.
Loans received after 10:00 am will be counted as received the following day.

Underwriting: The oldest loan in the underwriting queue was submitted on 1/19/2009.

Streamline Refinances

During January the underwriting fee for FHA Streamline Refinances is $410.

DMC Bulletin - Week of Jan 4, 2010

Jim Beech — Mon, 04 Jan 2010 22:21:13 GMT

Week of Jan 4, 2010

Loan Program Updates

Purchase Price Negotiations
DMC will no longer allow the purchase price to be renegotiated upwards if an appraisal has already been performed. This applies to all loans locked on or after 1/21/10.

Ratios
In the presence of a non-occupant co-borrower, the max housing and debt ratio for the occupant borrower is being reduced from 55% to 50%. This applies to all loans locked on or after 1/11/10.

Turn Times

Funding: Two (2) business days when closing docs are received prior to 10:00 am.
Loans received after 10:00 am will be counted as received the following day.

Underwriting: The oldest loan in the underwriting queue was submitted on 1/04/2010.

Holiday Schedule

Jan 18, 2010 - Closed; Not a recission day

Streamline Refinances

During January the underwriting fee for FHA Streamline Refinances is $410.

Direct Mortgage Update - Week of Dec 28, 2009

Jim Beech — Mon, 04 Jan 2010 21:53:18 GMT

Week of Dec 28, 2009

Loan Program Updates

Non-Conforming Program (6211)
Cash-Out refinances are not allowed on Interest Only Libor ARMs.

Price adjustments

None this week

FHA Streamline - Max Mortgage Amount

FHA Refinances
When calculating the maximum mortgage amount, remember to follow the guidelines set forth in Mortgagee Letter 2009-32.

Turn Times

Funding: Two (2) business days when closing docs are received prior to 10:00 am.
Loans received after 10:00 am will be counted as received the following day.

Holiday Schedule

Dec 31, 2009 - Open Regular Hours 8:30 - 5:00 MST
Jan 1, 2010 - Closed; Not a recission day

Streamline Refinances

During December the underwriting fee for FHA Streamline Refinances is $410.