LoanStream Announces the following changes:

Wage Earners:

• A Verbal Verification will remain a requirement before docs and at time of funding.
• In those instances where a traditional VVOE is unable to be completed, an email from the employer as an alternative will suffice, with the following restriction.
o Be from the borrower’s direct Supervisor/Manager or the employer’s HR Department; and
▪ be from the employer’s email address directly to LoanStream; and
▪ contain all the standard information required on a verbal verification of employment, include the name, title and phone number of the person providing the verification.
• As an additional step, the following questions are being added to our Verbal Verification of Employment form.
o Is the company still open and in operations?
o Is the borrower still employed?
o Is the borrower on a leave of absence or furloughed?
o Has the borrowers income been affected?
• We will also be requiring a paystub (immediately preceding the closing date) or Written Verification of Employment dated within 10 calendar days of closing.
o Underwriter will add this as a PTD condition.
• If hours worked are reduced, the reduced hours will be utilized for qualifying purposes.
• If a borrower is on temporary leave, we can follow the temporary leave guidelines per program.

Self Employed:

• A Borrower prepared YTD P&L is required confirming income is in line with the income being utilized for qualifying purposes.
o YTD P&L must be signed and dated within 10 days of closing.
o Underwriter will add this as a PTD condition.
• If 2019 1040s have not been provided and validated per guidelines, a 2019 Borrower prepared P&L signed and dated must also be provided.
o Income must be in line with income being used for qualifying purposes.
o Underwriter will add this as a PTD condition.

Rental Income:

• If rental income is being utilized for qualification purposes and the most recent tax returns were used to calculate income the following is required.
o Copy of current fully executed lease
o Underwriter will add this as a PTD condition.
 

Note: When utilizing 2019 tax returns for qualifying purposes, we will require one of the following:

• 2019 1040 Tax Transcripts
• Evidence of E-filing, signed 1040s, proof of refund received or amount owed to IRS clearing borrowers account
 
If you have questions please contact your Account Executive.

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Recent News & Announcements

FEMA Disaster Declaration – Tennessee

On August 23, the Federal Emergency Management Agency (FEMA) has issued a major disaster declaration for the State of
Tennessee to Severe Storms and Flooding on August 21, 2021.
Impacted Counties FEMA Link FEMA Notice Date
Humphreys https://www.fema.gov/disaster/4609 8/24/2021
If the subject property is in one of the designated counties above and appraisal was completed on or before FEMA Declaration
Date, please refer to LSM Disaster Policy for full requirements.
LSM will continue to monitor the impacted areas and we may add or remove counties on the list above as necessary.
Please contact your Sales Representative if you have any questions.

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