This Week's Highlights - Tuesday, September 1, 2020

  • USDA Turn Times
  • Reminder! Removal of Adverse Market Refinance Fee
  • FEMA Disaster Area Declaration for Louisiana
  • AIR Requirements
  • Conventional Utilities
  • HELOC Second Mortgage Product Updates
  • FEMA Disaster Area Declaration for Iowa and California
  • Six Tips to Calculating Income During COVID-19
  • Underwriting Turn Times
 
USDA Turn Times
Are you interested in knowing the current status of USDA's turn times? USDA provides this information on their website. Refer to USDA's turn times here for the most up-to-date information.
 
Reminder! Removal of Adverse Market Refinance Fee
Fannie Mae and Freddie Mac have extended the effective date to the LLPA of 50 basis points for refinance transactions with settlement dates on and after 12/01/2020. Additionally, exemptions that are not subject to the LLPA have been added:
  • Refinance loans with an original principal amount of <$125,000
  • Single-Close Construction-to-Perm transactions (not offered by FWL)
  • HomeReady and Home Possible refinance transactions
As a reminder, Fairway Wholesale Lending has removed the .50 Adverse Market Fee on all new locks. A new timeline will be released at a later date to coincide with the 12/01 delivery date.

Refer to LL-2020-12 and 2020-35 for details.

FEMA Disaster Area Declaration for Louisiana
The following areas in Louisiana have been added as disaster areas due to hurricane Laura. The disaster incident period was declared on 08/22/2020 – 08/27/2020.
  • Allen, Beauregard, Calcasieu, Cameron, Jefferson Davis, and Vernon Counties
Please Note: This is a FEMA declaration and will affect all programs; therefore, we are implementing Fairway’s Disaster Area Appraisal and Re-Inspection requirements for both conventional and government loans.

This information has been added to FIMC’s Disaster Area List in Knowledge Owl for future reference. Note: As a reminder, you must be logged into KO to access guidelines.
 

Q: Do Fannie Mae and Freddie Mac have the same AIR requirements as HUD?

A: No. FHA is explicitly excluded from the agreement that produced the HVCC (which was subsequently superseded by AIR). However, FHA is adopting language from HVCC to ensure alignment with the rest of the residential mortgage lending industry. This guidance reinforces FHA’s long-standing policy of appraiser independence.

 

Q: Are the utilities required to be on and working at the time of the appraisal inspection on a conventional loan?

A: No. Fannie Mae and Freddie Mac do not require the utilities to be on and working at the time of the appraisal inspection. 

 

HELOC Second Mortgage Product Updates
Effective for all loans, including loans in process, on and after 08/15/2020, the following updates have been made to the HELOC second mortgage product guidelines. 

  • Non-Occupant Borrowers Ineligible
  • Business Assets Ineligible (Closing and Reserves)
  • Appraisal Options
  • Asset Reserves 

For full program guidelines, refer to the Second Mortgage Product Matrix in Knowledge Owl. Note: As a reminder, you must be logged into KO to access guidelines.

FEMA Disaster Area Declaration for Iowa & California
The following areas in Iowa have been added as a disaster area due to severe storms. The disaster incident period was declared on 08/10/2020.
  • Linn County

The following areas in California have been added as disaster areas due to wildfires. The disaster incident period declared 08/14/2020 and is ongoing.

  • Lake, Monterey, Napa, San Mateo, Santa Cruz, Solano, Sonoma, and Yolo Counties

Please Note: This is a FEMA declaration and it will affect all programs; therefore, we are implementing Fairway’s Disaster Area Appraisal and Re-Inspection requirements for both conventional and government loans. 

This information has been added to FIMC’s Disaster Area List in Knowledge Owl for future reference.

Six Tips to Calculating Income During COVID-19
Genworth Mortgage Insurance Company has released a compilation of their top 6 tips to calculating income during COVID-19 to help you through the changes.

For details, refer here.

FWL Underwriting Turn Times
Fairway Wholesale Lending wants to remind our valued clients that during these increased activity levels, turnaround times may vary. Please ensure you are reviewing our current turn times on rate sheets or the Resource Page of DRIVER.

Incomplete submissions could delay your file being submitted to Underwriting. For submission checklists, access the Forms & Documents in DRIVER.

Steve Jacobson, CEO - "All of us need encouragement."