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Lock Desk Closure on Wednesday Dec. 5

U.S. financial markets will be closed today Wednesday, Dec. 5, 2018, for a national day of mourning to honor former President George H.W. Bush. Due to the bond market closure, JMAC Lending’s Lock Desk will be closed for locking today. The Lock Desk will reopen at 8:00 A.M. P.S.T. tomorrow Thursday, Dec. 6. 

JMAC Lending will be open for all other business from 8:00 a.m. until 5:00 p.m.

Questions relating to locks should be sent to LockDesk@JMACLending.com.

California Wildfires (DR-4407)

On December 3rd, 2018 the Federal Emergency Management Agency (FEMA) issued an end date of November 25th, 2018 for the California Wildfires Major Disaster Declaration (DR-4407).

Requirements for Properties in Disaster Areas

Conforming loans with an appraisal
If the appraisal is dated on or before Disaster End Date Then a disaster area inspection report (CDAIR) is required or a 1004D
If the appraisal is dated after Disaster Incident End Date Then appraisal must address the recent natural disaster
VA with Appraisal
If the appraisal is dated on or before Disaster End Date Then a disaster area inspection report (CDAIR) is required or a 1004D
If the appraisal is dated after Disaster Incident End Date Then appraisal must address the recent natural disaster
FHA loans with Appraisal
If the appraisal is dated on or before Disaster End/HUD Waiver Date Then a disaster area inspection report (CDAIR) is required or a 1004D by the original FHA appraiser with interior/exterior photos is required (However, if the original Appraiser is not available, another FHA Roster Appraiser in good standing with geographic competence in the affected market may be used). HUD will not allow any re-inspections to be completed until after FEMA/HUD declares an Incident End Date.
If the appraisal is dated after Disaster Incident End/HUD Waiver Date Then appraisal must address the recent natural disaster
Jumbo/Non-Conforming with Appraisal
If the appraisal is dated on or before Disaster End/HUD Waiver Date Then a disaster area inspection report (CDAIR) including interior and exterior photos is required or a 1004D
If the appraisal is dated after Disaster Incident End Date Then appraisal must address the recent natural disaster
Conforming loans without an Appraisal
If Conforming Loan with Property Inspection Waiver (PIW) Then a full appraisal is required
FHA Streamlines and VA IRRRLS
FHA Streamlines and VA IRRRL require CDAIR or a 1004D with interior/exterior photos

Note: In the event that significant damage is shown on the 1004D or CDAIR, additional conditions may be required.

Conventional Loan Limits for 2019

Big news! The Federal Housing Finance Agency (FHFA) announced Nov. 27 that it is increasing the conforming loan limit for Fannie and Freddie mortgages in nearly every part of the U.S.

According the FHFA, conforming loan limits will rise from this year’s total of $453,100 to $484,350 for 2019. That’s an increase of 6.9% from this year’s loan limit to next year’s.

This marks the third straight year that the FHFA has increased the conforming loan limits. 

Effective Dec. 1, 2018, JMAC will now accept the new 2019 Loan Limits on the following products:

  • FHLMC Home One

  • FHLMC Home Possible

  • FHLMC Standard

  • FNMA Home Ready

  • FNMA Standard

For all Fixed-Rate products, loans will require a new DU/LPA ran on or after 12/10/18, and the earliest the loan can close is 12/17/2018.

For all ARM Products, loans will require a new DU/LPA ran on or after 12/10/18, and the earliest the loan can close is 1/2/2019.

Please note that for all FHLMC Products, loan amounts over $1,000,000 will not be eligible until 12/19/2018 when LPA is updated to allow loan amounts above $1,000,000.

Units Continental US Hawaii Units Continental US Hawaii
Conforming Maximum Loan Amount 2019 High Balance Maximum Loan Amount 2019
One $484,650 $726,525 One $726,525 $726,525
Two $620,200 $930,300 Two $930,300 $930,300
Three $749,650 $1,124,475 Three $1,124,475 $1,124,475
Four $931,600 $1,397,400 Four $1,397,400 $1,397,400

California Wildfires Update

The Federal Emergency Management Agency (FEMA) issued a Major Disaster Declaration for the state of California due to Wildfires. JMAC will grant a 3-day lock extension for all loans currently in an impacted area. JMAC will suspend funding’s for all FHA Transactions in Los Angeles, Ventura and Butte counties until an end date or waiver have been granted. For Conventional and Non-Conforming loans, below are the zip codes impacted where a disaster area inspection report (CDAIR) is required or a 1004D in Los Angeles and Ventura counties: 90265, 91301, 91302, 91307, 91320, 91361, 91362, 91377, 93012, 93033, 93065

All of Butte county requires a disaster area inspection report (CDAIR) is required or a 1004D.

ZUMA NON-QM Guideline Updates

ZUMA Prime

  • Simplified the LTV/Loan matrix by removing the separate 12-month income documentation columns, the max LTV for 12-month now displayed under Program Restrictions.

  • WVOE – max 80% LTV Purchase & Rate/Term, max 70% LTV cash out, use 24-month LTV/Loan matrix.

  • Under the 95% LTV restrictions, increased the max DTI to 43%.

 

ZUMA Credit Flex

  • Simplified the LTV/Loan matrix by removing the separate 12-month income documentation columns, the max LTV for 12-month now displayed under Program Restrictions.

  • WVOE – max 80% LTV Purchase & Rate/Term, max 70% LTV cash out, use 24-month LTV/Loan matrix.

ZUMA Prime and Credit Flex

  • Interested Party Contributions – increased LTV tier from 75% to 80%.

  • Appraisal Review - Added the ARA product from Computershare as an eligible review option.

  • Ineligible Property Types – Added properties involved with the sale of banned federal substance.

  • Property Flipping – Decreased the time period for defining a flip transaction from 12-months to 6-months.

Non-Warrantable Condos

  • Increased max single owner concentration to 25%.

  • Increased max allowable commercial space to 50%.

 Cash-Out

  • Defined cash-out to include any transaction on a property owned free and clear.

  • Clarified the payoff of delinquent real estate taxes is considered cash out.

  • A letter of explanation required for cash out exceeding $250,000.

  • Cash-out proceeds eligible for reserve requirements.

 Additional changes:

  • Changed of Fico from 580 to 620 on Credit Flex and Investor Solutions;

  • Cut off to close out current loans in pipeline is by November 30th.  

  • Non-Occupant Co-borrower – increased max DTI for occupying borrower to 60%.

  • Housing History – borrower living rent free, expanded eligible income documentation types and removed additional reserve requirements.

  • Consumer Credit – clarified the treatment of charge-offed 2nd lien.

  • Reserves

  • Clarified for an ARM loan, reserves are based on the initial PITIA.

  • Cash-out proceeds eligible for reserve requirements.

  • Full Income Documentation – Self-employed borrowers, removed the requirement for business tax transcripts and a balance sheet.

  • Written Verification of Employment – added an income documentation option utilizing a WVOE.

Self-Employed Solutions

  • Business bank statements now eligible for 12-month bank statement option.

  • Combined the 24-month and 12-month business bank statement qualifying options.

  • Personal Bank Accounts – reduced the minimum ownership percentage to 20% for eligibility.

  • Business Bank Accounts – reduced the minimum ownership percentage to 50% for eligibility.

  • Added clarification on how to document ownership percentage.

Asset Utilization – Added an option to determination loan qualification based upon total assets (No DTI calculation).

Investor Solutions

  • For Business Purpose transactions:

  • ARM qualifying based upon note rate.

  • Loans with an interest only feature qualified using interest only payment.

 CHECK OUT THE COMPLETE ZUMA NON-QM GUIDELINES

FEMA Disaster Declaration for Homes Affected by Hurricane Florence

The Federal Emergency Management Agency (FEMA) issued a Disaster Declaration for the state of North Carolina and South Carolina due to Hurricane Florence. 

Declaration Date: Sept. 14, 2018 (NC); Sept. 16, 2018 (SC)
Incident Period: Sept. 7, 2018 (NC); Sept. 8, 2018 (SC)

For information on affected counties in North Carolina and South Carolina as well as Requirements for Properties in the Disaster Areas, please click here.

Introducing ZUMA: The Ultimate Non-QM Program

JMAC_Zuma Email image.jpg

ZUMA is JMAC's new flexible, non-QM lending option that can help your hard-to-qualify clients get approved with 12- or 24-months bank statements or 12- or 24-months full documents. The ZUMA program is available in three levels: ZUMA Prime, ZUMA Credit Flex and ZUMA Investment.

  • No seasoning requirement on settled derogatory credit, such as deed-in-lieu, bankruptcy, foreclosures and short sales
  • Minimum of 2-months reserve on subject and 2-months reserve on each additional up to 12 months
  • Cash in hand may be used to meet reserve requirements (restrictions apply)
  • 5/1 & 7/1 ARM, 15- & 30-year fixed, with 30- and 40-year interest-only
  • Max DTI up to 55%
  • 1x30 mortgage late payments allowed within 12 months
  • Non-occupant co-borrower allowed
  • Up to 20 financed properties (max 10 acres)
  • Loan amounts $75K to $5M

ZUMA Prime

  • Up to 95% LTV to $1.5M on Purchase and R&T
  • FICOs from 660

ZUMA Credit Flex

  • Up to 90% LTV on Purchase and R&T
  • FICOS from 580
  • Pricing on Grade A, B, B-, C based on credit

ZUMA Investment

  • Up to 80% LTV to $1M
  • FICOs from 580