DATE: March 27, 2020
Due to continued Covid-19 market volatility and anticipated economic implications, REMN Wholesale is imposing temporary restrictions to our government lending policies including FICO and DTI limitations. This applies to new loan submissions dated 3/27/2020 and after.
PRODUCTS IMPACTED:
• FHA, VA, and USDA, including Streamlines and Interest Rate Reduction Refinances
o REMN to REMN rate and term refinances are exempt from the new requirements
o REMN to REMN cash-out refinances are NOT exempt from the new requirements
EFFECTIVE DATE:
• All new submissions beginning March 27. This guidance does not apply to unsubmitted loans that were registered or locked prior to March 27.
UNDERWRITING METHOD
• Total Scorecard (AUS approval) – OR
• Manual Underwrite o Manual underwrites must meet ALL requirements of the 4000.1, including but not limited to the definition of satisfactory credit history and the requirements associated with DTI limits.
FICO OVERLAY
• FICO minimum 640 (NO EXCEPTIONS)
• FICO between 641-659:
o Maximum DTI is 43%
o DTI of 43.01% to 50%: Exception only given for borrowers with 3 months liquid cash reserves. Gifts cannot be used to meet a reserve requirement.
o Loan Level Price Adjustment of 100 basis points
• FICO 660-679
o Loan Level Price Adjustment of 50 basis points
• FICO 680+
▪ No Overlay
**Please note** the details in the announcement supersede product guidelines.
Revised guidelines will be posted in the near future.
Please reach out to your Account Executive if you have any questions.