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FEMA Disaster Declaration Approved for 34 California Counties

The Federal Emergency Management Agency (FEMA) has made funds available to help 34 California counties recover from a series of recent storms. On Feb. 14, 2017, FEMA issued Disaster Declaration DR-4301 which covers many California counties (see map below). If your property is in any of the affected counties please contact your Account Executive immediately to determine which appraisal and verification services may be required. 

Broker Compensation Change Request Form Update

We have updated the language on our Broker Compensation Change Request Form to make it clearer that an authorized signor, by way of Broker of Record or Principal Officer, must be the person requesting the compensation plan change. Compensation plan change requests made by LOs or Processors who are not also authorized signors will not be accepted.  To update your Compensation Plan, please visit: http://www.jmaclending.com/comp-plan.

JMAC Implements Digital Loan Processing

As part of JMAC’s commitment to industry innovation and environmental concern, effective Jan. 16, 2017, all loans are being processed electronically.

“Our initiative to Go Digital and operate with paperless processing will save our environment and the company 10 million pages of paper each year,” Vice-President of Operations Mai Nguyen said. “Digital processing will increase efficiency and streamline the loan process. Our goal is to make our process easier for our customers.”

Brokers are expected to experience some differences in the lending system with the new processing method. One of these differences is how the uploaded documents are processed. Prior to the Go Digital initiative, a customer would always maintain access to the original loan documents. Now when a customer uploads loan documents, JMAC indexes these documents and the customer can no longer access the original files. It is recommended that customers keep a copy of the submitted files for additional reference.

Once the loan documents are submitted, customers will have access to any files provided by JMAC in the loan document list, such as loan approval, suspensions, confirmations and disclosures.

For more information on this area, please visit the following link: 

President's Day Schedule

JMAC will be closed for business on Monday, February 20, 2017 in observance of President's Day.

Please be advised that Monday, February 20, 2017 will not count as a business day towards rescission and disbursements.

For example, if the borrower signed the closing documents on Friday, February 17, 2017, the rescission expires midnight on Wednesday, February 22, 2017.

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

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

Wholesale Lending Update: Third Party Processing - Updated

This wholesale lending update is part of an ongoing effort by JMAC to provide periodic updates of JMAC policies to our Broker Partners. JMAC allows 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 a “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 a “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 $1500.

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.

 

New Updates to the Broker Portal

JMAC Lending is excited to announce new features and updates to our online Broker Portal beginning Monday, Feb. 13. Enhancements include:

  • Improved Loan Level navigation
  • New Status Bar shows loan progress
  • Improved buttons make loan submission and condition review easier
  • New Qualified Mortgage (QM) page to check the QM status of your loan
  • New Rate Lock tab provides complete information in the Rate Lock, including Lock Expiration, Pricing + Adjustment, and Rate Lock History

Training manuals for the JMAC Broker Portal will be available Monday, Feb. 13 at: https://support.jmaclending.com.

For additional information, please contact clientsupport@jmaclending.com.

New Disaster Area Declared in Georgia

On January 26, 2017, President Trump declared a Major Disaster Area in Georgia. We are awaiting the formal announcement from FEMA of all the affected counties and will continue to update this Bulletin when additional counties are added.

Currently the reported counties receiving Individual Assistance are:

  • Berrien
  • Cook
  • Crisp
  • Dougherty
  • Tuner
  • Wilcox
  • Thomas (added 2/6/17)
  • Worth (added 2/6/17)

The DR number is DR-4297. You can find FEMA’s updates here: https://www.fema.gov/disaster/4297

If any of your current or prospective loan applications include properties in the affected counties, please contact your Account Executive or Account Manager immediately.

 

HUD Suspends FHA Mortgage Insurance Premium Cut

The Department of Housing and Urban Development (HUD) today announced it has suspended the reduction of Mortgage Insurance Premiums, effective immediately.

HUD sent out an announcement just one hour after incoming President Donald Trump was sworn in on Friday, Jan. 20, stating that the cuts have been suspended indefinitely.

In its official announcement, HUD stated that the FHA will issue a subsequent Mortgagee Letter at a later date, should this policy change.

“FHA is committed to ensuring its mortgage insurance programs remains viable and effective in the long term for all parties involved, especially our taxpayers,” the letter states. “As such, more analysis and research are deemed necessary to assess future adjustments while also considering potential market conditions in an ever-changing global economy that could impact our efforts.”

Right before leaving office, the Obama administration cut FHA mortgage insurance premiums, marking the second time it reduced premiums in two years.

However, after Ben Carson, Trump’s choice to lead the Department of Housing and Urban Affairs, appeared last week before the Senate Committee on Banking, Housing, and Urban Affairs, the likelihood that the cut would take effect on Jan. 27 quickly diminished.

At the time, Carson said that the Trump administration plans to “really examine” the Obama administration’s decision to cut FHA premiums before determining a course of action.

Martin Luther King's Day Schedule

JMAC will be open for business on Monday, January 16, 2017.

While we are open on Monday, this day will not count as a business day towards rescission and disbursements.

For example, if the borrower signed the closing documents on Friday, January 13, 2017, the rescission expires midnight on Wednesday, January 18, 2017.

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

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

Annual Client Recertification 2017

Each year JMAC Lending is required by the agencies and our regulators to recertify our wholesale and correspondent lending partners (Third Party Originators). This year, the recertification process will take place in the first quarter with our simple, seamless online recertification application.

Lending partners will have at least one month to complete the process, and can continue to submit loans pending approval.

Updates will follow in a few weeks. If you have any questions, please contact your JMAC Lending Account Executive.

Changes to FHA and VA Approval Matrices

Effective January 3, 2017, JMAC Lending’s FHA and VA matrices have been updated to allow for expanded approval parameters. The updated matrices can be found on the JMAC Lending website: http://www.jmaclending.com/product-list/.

Highlights include:

  • Minimum FICO of 580 for all loan amounts (previously only for conforming). Please note: the maximum LTV for VA cash out limited to 90% for credit scores 580-619 still applies.
  • Removed DTI overlay for credit scores less than 620 on FHA full doc (previously was 43% if credit score was less than 620). Now DTI is per AUS approval for all credit scores 580+.
  • Removed payment shock restriction on all purchases.
  • Added requirement for housing counseling certificate in certain situations (refer to matrices for specifics).
  • Added maximum number of financed properties (4).
  • Removed credit score overlay for 3 to 4 units – now available for all FICO scores 580 and above.
  • Added AVM requirement for VA IRRRL with max LTV/CLTV of 115% for credit scores less than 620.

For questions and additional information, please contact your Account Executive, Account Manager, or call our client support directly at (949) 390-2688 or email info@JMACLending.com.

 

Mercury Appraisal Announcement

Effective Jan. 16, 2017, JMAC Lending requires that all appraisal orders be placed through the Mercury Network platform and will no longer accept appraisals ordered directly with an Appraisal Management Company (AMC).

The Mercury Network platform is a fast and efficient way to order appraisals. It provides brokers with access to a comprehensive suite of appraisal vendor management software and collateral quality control solutions.

Benefits to the program include:

  • Single login to order from your choice of AMC.
  • Client can price out products for each AMC before submitting the order (except Corelogic, which must be manually priced by the JMAC Lending Appraisal Desk).
  • Every order is reviewed for compliance and accuracy to streamline the AMC's ability to process the order more quickly and efficiently.
  • Coming Soon - JMAC Lending plans to add additional AMCs in different states.

For questions and additional information, please contact your Account Executive, Account Manager, or call our client support directly at (949) 390-2688 or email info@JMACLending.com.

MLO Renewal Information

Each state regulator has distinct rules regarding Mortgage Loan Originator (MLOs) license renewals. Below is a helpful list for each state in which JMAC conducts business. Some regulators permit a “grace period” for MLOs who submit their renewal prior to December 31 but who have not yet been approved for originating through 2017. Those regulated by the regulators in white boxes are able to continue to originate if their renewal applications were submitted in a timely manner.

JMAC will require proof of the timely renewal application for any MLO who does not appear as “Approved through 2017” in nmlsconsumeraccess.com before submitting or consummating any transactions, if permitted under a grace period. If your license is not “Approved through 2017” and your regulator is in a colored box in the table below, you cannot submit or consummate any loans until the license is “Approved through 2017.”

This information is intended for informational purposes only. This is not legal advice. Contact your legal counsel or compliance officer for clarification.

Christmas and New Year's Day Schedule

JMAC will be closed for business on Monday, December 26, 2016 and Monday, January 2, 2017 in observance of Christmas Day and New Year's Day.

Although we are closed on these days, these days will be counted as business days towards rescission and disbursements.

For example, if the borrower signed the closing documents on Friday, December 23, 2016, the rescission expires midnight on Tuesday, December 27, 2016.

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

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

2017 Loan Limits- FNMA/FHLMC

We are pleased to announce 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.

We will accept the higher loan limits for both our Adjustable Products as well as our Fixed Rate 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.