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2017 Loan Limits- FNMA/FHLMC

We are pleased to announced that we will now accept new submissions based on the newly announced increased loan limits with an AUS ran on or after the dates below.

  • With a DU Casefile submitted on or after the weekend of December 10th for all Conforming Loan Amounts
  • With a DU Casefile submitted on or after January 1st, 2017 for all high-cost(high balance) Loan Amounts.

Please note that at this time, we will ONLY accept the higher loan amounts for our Fixed Rate Products.  We will send an additional announcements when we will accept the higher loan amounts on our adjustable products.

No Fee For Property Inspection Waivers Beginning January 1, 2017

Effective for loans registered on or after January 1, 2017, Fannie Mae will no longer charge a $75 fee for Property Inspection Waivers (PIW).  PIW is an offer to waive the appraisal for certain refinance transactions.  It is a lower cost alternative to an appraisal and can reduce loan transaction times. For more information, please contact your local Account Executive.

FHFA Increases Conforming Loan Limits

The Federal Housing Finance Agency (FHFA) will increase the maximum conforming loan limits for mortgages acquired by Fannie Mae and Freddie Mac in 2017.  In most of the country, the 2017 maximum loan limit for one-unit properties will be $424,100, an increase from $417,000.  This will be the first increase in the baseline loan limit since 2006.  In higher-cost areas, higher loan limits will be in effect. 

The Housing and Economic Recovery Act of 2008 (HERA) established the baseline loan limit of $417,000 and requires this limit to be adjusted each year to reflect the changes in the national average home price.  However, after a period of declining home prices, HERA also made clear that the baseline loan limit could not rise again until the average U.S. home price returned to its pre-decline level.  Until this year, the average U.S. home price remained below the level achieved in the third quarter of 2007 and thus the baseline loan limit had not been increased. 

This week, the FHFA published its third quarter 2016 House Price Index (HPI), which makes clear that average home prices are now above their level in the third quarter of 2007. This initiated the increase in limits.

High-cost areas

In areas where 115 percent of the local median home value exceeds the baseline loan limit, the maximum area loan limit will be higher.  HERA sets the maximum loan limit as a function of the area median home value, while setting a "ceiling" on that limit of 150 percent of the baseline loan limit. 

This year, median home values generally rose in high-cost areas.  Because the baseline loan limit will be higher in 2017, the new ceiling limit will also be higher.  The new ceiling loan limit, which applies in areas with the most expensive homes, will be $636,150 (150 percent of $424,100) for one-unit properties in the contiguous U.S.    

For a complete list of the conforming loan limits, please click here.

Thanksgiving Schedule

JMAC will be closed for business on Thanksgiving Day - Thursday, November 24, 2016 and on Friday, November 25, 2016.

Thursday, November 24, 2016 does not count as a business day towards rescission and disbursement.  For example, if the borrower signed the closing documents on Wednesday, November 23, 2016, the rescission expires on midnight of Monday, November 28, 2016.

Thursday, November 24, 2016 also does not count as a business day towards the waiting periods associated with Loan Estimates/Closing Disclosures. For example, if the initial Closing Disclosure was received by the borrower on Wednesday, November 23, 2016, the earliest signing date available will be Monday, November 28, 2016.

In addition, the Lock Desk and Funding Department will also be closed on these days. Any lock requests submitted will be processed on the following business day and based on that's day market pricing.

If you have any questions, please contact JMAC at (949) 390-2674.

 

Notice of Relocation

We've Moved

Effective November 1, 2016, JMAC Lending’s new mailing address is as follows:

JMAC Lending, Inc.
2510 Red Hill Avenue
Santa Ana, California 92705

Loss Mortgagee:
JMAC Lending, Inc. ISAOA
2510 Red Hill Avenue
Santa Ana, California 92705

Please update your records, including Loss Mitigation Notices and loan document delivery instructions. If you have any questions or concerns, please contact our office at (949) 390-2624.

Kind regards,
Your JMAC Lending Team

For a printable PDF, please click here.

Hurricane Matthew Updates

JMAC Lending Partners -

Over this past weekend, Hurricane Matthew (a Category 4/5 Hurricane) made landfall along the southeastern United States. Our first and foremost concern is for those whose homes and lives have been affected. As of this morning, October 10, no private FEMA disaster designations have been made. We will be updating this page as further information from FEMA and the secondary markets regarding designated disaster areas is published. If you have questions regarding the effects of Hurricane Matthew or any other disaster designation, you are encouraged to speak with your Account Executive.

JMAC Disaster Area Policy

Sellers are responsible for identifying geographic areas impacted by disasters and taking appropriate steps to ensure the subject property has not been adversely affected.  Our broker partners should follow this policy and guidelines to best inform their borrowers of potential delays or costs. The following guidelines apply to properties located in FEMA declared disaster areas, as identified by reviewing the FEMA web site at http://www.fema.gov/news/disasters.fema.  In addition, when there is knowledge of an adverse event occurring near and around the subject property location, such as earthquakes, floods, tornadoes, or wildfires, additional due diligence should be used to determine if the disaster guidelines should be followed.

Appraisals Completed Prior to Disaster

An interior and exterior inspection of the subject property, performed by the original appraiser if possible, is required. 

  • The appraiser should provide a statement indicating if the subject property is free from any damage, is in the same condition from the previous inspection, and the marketability and value remain the same.      
  • Inspection report must include photographs of the subject property and street view.
  • Any damage must be repaired and re-inspected prior to purchase

Appraisals Completed After Disaster Event

  • Appraiser must comment on the adverse event and certify that there has been no change in the valuation.
  • Any existing damage notated from the original report must be repaired and re-inspected prior to purchase.

Disaster Event Occurs after Closing but prior to Loan Purchase

  • Loan is ineligible for purchase until an update or inspection from the original appraiser is obtained.
  • Appraiser must comment on the event and certify that there has been no change to the value.

Guidelines for disaster areas should be followed for 90-days from the disaster period end date or the date of the event, whichever is later.  FHA loans that have not yet been endorsed are subject to the above inspection requirements, and that JMAC Lending will require a drive by inspection with photos for any FHA Streamline or VA IRRRL that has not yet closed in all affected areas.

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FEMA updated the designated counties for individual assistance for Florida, Georgia and Virginia:

FLORIDA: https://www.fema.gov/disaster/4283/designated-areas

Brevard County, Duval County, Flagler County, Indian River County, Nassau County, Putnam County, Seminole County*, St. Johns County and Volusia County.

*Seminole County added for Florida

GEORGIA: https://www.fema.gov/disaster/4284/designated-areas

Bryan County, Bulloch County, Chatham County, Effingham County, Evans County*, Glynn County, Liberty County, Long County, McIntosh County and Wayne County.

*Evans County added for Georgia

VIRGINIA: https://www.fema.gov/disaster/4291/designated-areas

Chesapeake, Hampton, Newport News, Norfolk, Portsmouth, Suffolk and Virginia Beach.

 

 

 

 

 

JMAC Lending Columbus Day Schedule

JMAC Lending will be open for Columbus Day but our Lock Desk will be Closed.

  • Monday, October 10, 2016 does not count as a business day towards rescission and disbursement. For example, if the borrower signed the closing documents on October 06, 2016, the Rescission expires on midnight of October 11, 2016.
  • Monday, October 10, 2016 also does not count as a business day towards waiting period associated with Loan Estimate/Closing Disclosure. For example, if the initial Closing Disclosure was received by the borrower on October 06, 2016, the earliest signing date available will be October 11, 2016.

There will be no funding on Monday, October 10, 2016.

Wholesale Lending Update: Third Party Processing

This wholesale lending update is part of an ongoing effort by JMAC to provide periodic updates of JMAC policies to our Broker Partners. As of October 4, JMAC will allow third-party processing on all conventional, high-balance, government (FHA and VA), Manhattan, Venice, Newport, and Sunset products. Third-party processing is not permitted on the Laguna program.

Policy

Processing fees paid to a bona-fide third party processing company will be excluded from the Qualified Mortgage (QM) points and fees test and will not be considered originator compensation so long as the following requirements are met:

  • Third Party Processing Company (TPP Company)
    • The processing company is not affiliated with the Broker or Broker Company (i.e., cannot show as an “authorized to represent” for the Broker on the NMLS).
    • The processing company is properly licensed and registered with the NMLS to perform processing services in the state where the subject property is located at the time in which the processing of the loan was conducted and continues to be licensed until the loan has closed.
    • The processing company provides processing services only in the states in which they hold an active license.
  • Third Party Processor (TPP)
    • The independent processor is an employee of a licensed Processing Company or an independent processor with their own NMLS number.
    • The processor provides processing services only in the states in which they hold an active license.
    • The processor is not affiliated with the Broker or Broker Company. The processor is not shown as an “authorized to represent” for the Broker on the NMLS (see below for exception policy/process).
  • Both TPP Company and TPP
    • State Statue does not prohibit charging a consumer a contract processing fee in addition to origination fee(s).
    • The third party processing fee is properly disclosed in Section B/ “Services the Borrower Did Not Shop For,” on the Loan Estimate and is not paid to either JMAC Lending (creditor) or the loan originator (Broker).
    • Note: if the fee is paid to either JMAC Lending (creditor) or loan originator (broker), the fee does not qualify as a bona-fide third party processing fee and must be disclosed in Section A/ “Origination Fee.”
  • The third party processing fee is bona fide and reasonable. JMAC limits third party processing fees to the amount on the third party processing fee invoice, but at no point can a third party processing fee exceed $795.
  • A copy of the invoice is retained in the loan file and matches the charge on the Loan Estimate.

Broker Affiliated Processing Fees can also be itemized on transactions closing with Borrower-Paid Compensation so long as the fee is included in the QM Points & Fees calculation.

Current Issues in Appraisal Ordering

Current appraiser supply issues are causing a proliferation of “rush fees” and delayed appraisal turn times across the nation. JMAC, like other lenders, rely on Appraisal Management Companies (AMCs) to provide independent appraisers in order to comply with state and federal appraisal independence rules. JMAC lends in many locations which have far fewer appraisers than can accommodate the current demand, leading to actual appraisal turn times exceeding 30 days. 

In order to meet loan lock deadlines or provide faster closings, many brokers and borrowers are electing to pay “rush fees” to secure quicker appraisal turn times. A valid “rush fee” which is charged by the appraiser to expedite the appraisal or appraisal report after initial disclosures have been provided may be a valid change of circumstance if the borrower requests the rush.

JMAC is providing this notification for several reasons:

  • JMAC is aware of the current state of the appraisal market and the challenges presented by the lack of suitable appraisers.
  • JMAC wants to clarify for our broker partners that rush fees are acceptable changes of circumstances if the borrower wishes to pay the fee for a quicker appraisal turn time and the change of circumstance is timely disclosed.
  • Please note that sometimes the “standard” quoted turn times by AMCs upon placing an order are subject to change based on the acceptance of the appraisal order by the appraiser. Until the appraisal request is accepted by an appraiser, turn times on the appraisal may change and delays may occur.
  • Especially in rural or less populous areas, turn times can extend beyond the quoted turn times even if “rush fees” apply.
  • JMAC is not responsible for delayed turn times or rush fees.
  • Under no circumstances should a broker or real estate agent contact the appraiser directly, through any means, to attempt to expedite or rush the appraiser. Such communications are prohibited and may lead to claims of improper influence.

It is imperative that brokers and loan officers address this issue with borrowers early in the loan process so surprises do not create confusion or mistrust.

Lastly, JMAC is actively working with the AMCs, the broader appraiser market, and other key industry figures to address and find industry-wide solutions to this problem.