Per recently announced agency guideline updates, LoanStream Mortgage (LSM) announces the following:
- All asset statements must be dated within 60 days of the note date.
- For Quarterly statements, the most recent quarterly statement is required (3/31/2020).
- As a reminder, we already require pay stubs, WVOE or YTD P&L to be dated within 10 days of closing (with exception to non-credit qualifying streamlines and IRRRL’s). We also require an independently verified VVOE before docs and at time of funding (on all transactions), including verification that any self-employed business is open and operating. Any change in status or income, the loan must be sent back to underwriting. Please see credit memo dated 3-26-2020 for detailed employment re-verification requirements.
- Expiration Dates for Credit, Title, Appraisals and Retirement and SS Income currently remain unchanged.
- Stocks, Stock Options & Mutual Funds
- When used for down payment or closing costs, evidence of the borrower’s actual receipt of funds realized from the sale or liquidation must be documented in all cases.
- When using for reserves, only 70% of the value of the asset may be considered, and liquidation is not required.
- Currently, LSM is NOT aligning with Fannie Mae and Freddie Mac’s POA flexibility. The following persons connected to the transaction remain ineligible as attorney-in-fact:
- The lender, any affiliate of the lender, any employee of the lender;
- The loan originator, employer of the originator, any employee of the originator;
- The closing agent, the title company or any employee thereof;
- Any real estate agent, employer of the agent, employee of the agency.
- Power of Attorney must be specific to our transaction and fully executed.
- When a Power of Attorney is utilized, the initial application still requires the borrower’s signature and not that of the Attorney in Fact.
- Cash Out Transactions do not allow a Power of Attorney under any circumstance.
- Currently, LSM will not accept the use of remote online notarization. We will continue to monitor our position on this topic.
- We have implemented a new certification form where borrowers must attest to ability to repay prior to funding. This is required to be executed by all borrowers on a transaction. Funding will not commence otherwise. Funders will be required to review all answers. Any negative answers will require the funding be held and the loan go back to underwriting.
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