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Manhattan Updates Effective for Loans Registered On or After 06/15/17 - REVISED

The following changes have been made to the Manhattan Product Guidelines:

  1. Acreage increase 10 to 15.
  2. Rent back increase from 30 to 60 days.
  3. Reserves: For Loan Amounts <= $1 million and DTI <=35%, we have lowered the reserve requirement to 6 months. For any loan amounts <= $1 million and DTI > 35%, the current requirement of 9 months is still applicable.
  4. Appraisals: For Loan Amounts <= $1.5 million on purchase and rate/term refinances (in all states except for Florida), we will require 1 full appraisal. Florida will continue with the current requirement of 2 appraisals for loan amounts > $1 million.
        • A CDA and/or field review, as applicable, which meets valuation thresholds, will
           still be required to be in the file.
  5. LTV Adjustors: Removing the LTV adjustors for Arizona. Florida’s current LTV adjustor of 5.0 will still apply.

Please click here for the complete Manhattan Product Guidelines.

Newport and Home Possible Guidelines Update

Newport

The following additions have been made to the Newport Guidelines:

  • Multiple BK’s and Foreclosures are not allowed regardless of time frame of when it was discharged
  • Stocks/bonds/mutual funds: 70% can now be used

Please click here for the complete Newport Guidelines.

Home Possible

The following additions have been made to the Home Possible Guidelines: 

  • For 3-4 unit, limited to 80% LTV/CLTV
  • Revised % of use for assets for 401k, stock, bonds and mutual funds
  • Added non-traditional credit

Please click here for the complete Home Possible Guidelines

New Automated Initial Disclosures Generator

Beginning June 13, 2017, JMAC Broker Partners will be able to generate initial disclosures packages at your convenience, complete with e-sign expediency.

Our innovative new system empowers you to generate and send complete, compliant mortgage disclosures in minutes. Your clients receive their loan package via email to sign electronically. Once all parties have signed the package is automatically uploaded to JMAC. The process is simple and easy, allowing you to focus more time on your business while letting JMAC manage the process.

  • Get complete control over the timing of disclosures
  • One package to submit and review disclosure docs
  • Streamlined process reduces submission time
  • Rest easy with guaranteed compliance

AMC Appraisal Fees

The various AMC Appraisal Fee Lists have been removed from our website and replaced with a condensed Appraisal Fee Worksheet.  The document is designed as a quick reference guide to make it easier to determine the “maximum” fees (varied by states) for different appraisal types.  Please note the fees do not reflect any additional costs that may occur due to unforeseen circumstances, such as: complexities, rushes, etc. where a change of circumstance is allowed. 

The fees are subject to change; however, a detailed breakdown or confirmation of appraisal fees will be verified by Appraisal Desk once the appraisal order is made.  Brokers can always request a detailed breakdown prior to disclosing.

https://www.jmaclending.com/appraisals/

Manhattan Updates Effective for Loans Registered
On or After 6/15/2017

  1. Reserves: For Loan Amounts <= $1 million and DTI <= 35%, we have lowered the reserve requirement to 6 months. For any loan amounts <= $1 million and DTI > 35%, the current requirement of 9 months is still applicable
  2. Appraisals: For Loan Amounts <= $1.5 million on purchase and rate/term refinances (in all states except for Florida), we will require 1 full appraisal. Florida will continue with the current requirement of 2 appraisals for loan amounts > $1 million
    •  A CDA and/or field review, as applicable, which meets valuation thresholds, will
        still be required to be in the file
  3. LTV Adjustors: Removing the LTV adjustors for Nevada and Arizona. Florida’s current LTV adjustor of 5.0 will still apply

For more details on Manhattan please see the product guidelines.

Joint Credit Report

JMAC now accepts joint applications and joint credit reports for unmarried individuals. JMAC no longer needs to split the credit report or loan information.   However,  if a broker delivers their 3.2 – splitting the individual borrowers –  separate credit (if applicable) is required. Upon reviewing the initial 1003, please ensure all borrowers sign wherever there is a place for a signature.

Example:  Two Unmarried Borrowers

Initial Application shows both borrowers on same application
LQB reflects borrowers separated
Credit Reports should be ran individually

Example:  Two Unmarried Borrowers

Initial Application shows borrowers on same application
LQB reflects borrowers jointly
Credit can be ran jointly as well

Revised Credit Policy

Conventional and Government

The restriction permitting rescores on all conventional and government loans (re-submission is required) has been removed. JMAC will now allow the use of a broker’s credit report if it determined (right after initial approval) that the credit score on the credit report pulled by JMAC dropped due to inquiries only.  Please note that the broker’s credit report must be dated prior to the loan submission date.
 

Jumbo and Non-Agency

JMAC will now allow the use of the broker’s credit report if the report is from Credco and dated within 30 days of submission.  There are no exceptions to allow any other bureau or an older report.

Memorial Day Schedule

JMAC will be closed for business on Monday, May 29, 2017 in observance of Memorial Day.

Please be advised that Monday, May 29, 2017 will not count as a business day towards rescission and disbursements.

For example, if the borrower signed the closing documents on Friday, May 26, 2017, the rescission expires midnight on Wednesday, May 31, 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 market pricing.

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

Loan-Level Price Adjustments for May 1

The following Loan-Level Price Adjustments (LLPAs) will go into effect on May 1, 2017.  To take advantage of existing price improvements, rates must be locked by 4:00 p.m. PST April 28, 2017.

Correspondent

“$180K-$299,999K – 30-Year Fixed Only” 
Improvement of 0.125 to pricing will be removed from the correspondent rate sheet.

State Adjuster for 30-year Fixed Rates <= Conforming Limits (Does not Apply to Home Ready)

Virginia, Hawaii, District of Columbia, Oregon, Tennessee, Ohio and North Carolina receive a price improvement of 0.125.
Georgia and Florida will receive a price improvement of 0.250.
Texas will receive a price improvement of 0.375.

The price improvement for Washington and Arizona will be removed from the current rate sheet.

State Adjuster For VA/FHA Fixed Rates

Washington, Virginia, District of Columbia, Tennessee, Ohio, North Carolina, Hawaii and Texas receive a price improvement of 0.125.

The current price improvement for Washington and Hawaii will be replaced by the above.

Wholesale

State Adjuster for 30 years Fixed Rates <= Conforming Limits (Does not Apply to Home Ready)

Virginia, Hawaii, District of Columbia, Oregon, Tennessee, Ohio and North Carolina will receive a price improvement of 0.125.
Georgia and Florida receive a price improvement of 0.250.
Texas will receive an improvement of 0.375.

The price improvement for Washington and Arizona will be removed from the current rate sheet.

State Adjuster For VA/FHA Fixed Rates

Washington, Virginia, District of Columbia, Tennessee, Ohio, North Carolina, Hawaii and Texas receive a price improvement of 0.125.

The current price improvement for Washington and Hawaii will be replaced by the above.

For additional information, please contact your Account Executive or visit JMACLending.com.

New AMC Added to Mercury Appraisals System

JMAC brokers and loan officers now have an additional Appraisal Management Company (AMC) to select via the Mercury Appraisal Platform – PCV Murcor. Founded in 1981, PCV Murcor is located in Pomona, CA, and has more than 200 employees. Open daily from 6:00 a.m. to 6:00 p.m. PST, PCV Murcor appraises in all states where JMAC is licensed. Visit http://www.pcvmurcor.com for more information. 

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 market 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.