Industry News and Notes – Mortgage Lender LLPA and SRP Updates
The Money Source
In an email sent out on January 27, 2022, The Money Source (“TMS”) announced an improvement of Gov LLPAs and Update of SRP Values effective for locks taken on or after Monday, January 31, 2022 whereby TMS will implement updates to below LLPA and SRP values on the rate sheet. as follows:
• ‘203(k) – Admin by TMS’ adjustment on page 1 of the rate sheet
• ‘203(k) – Admin by Client (Approval req)’ adjustment on page 1 of the rate sheet
• ‘Non-Owner Occ. (SL only)’ adjustment on page 1 of the rate sheet
• ‘FHA/USDA FICO Adjustments’ section for both the ‘Full Doc’ and ‘Streamline’ product columns on page 1 of the rate sheet
• ‘Non-Owner Occ. (IRRRL only)’ adjustment on page 2 of the rate sheet
• ‘VA IRRRL CLTV 105.01-125%’ adjustment on page 2 of the rate sheet
• ‘VA FICO Adjustments’ section for both the ‘Full Doc’ and ‘IRRRL’ product columns on page 2 of the rate sheet
• ‘FHA/USDA Advantage FICO Adjustments’ section on page 3 of the rate sheet
• ‘VA Advantage FICO Adjustments’ section on page 3 of the rate sheet
• All ‘CONVENTIONAL SRP’ and ‘GOVERNMENT SRP’ grids on pages 5 and 6 of the rate sheet
Towne Mortgage Company
As a result of the announcement and the effective date for loans purchased by Fannie Mae and Freddie Mac, effective January 18, 2022, Towne Mortgage Family of Companies (“Towne Mortgage”) announced the following LLPA guidance for their Wholesale, Mini-Correspondent, and their Delegated Correspondent channels:
1) Apply the new LLPAs to new 2nd Homes and High Balance loans with a lock expiration dates 45 days or greater
2) Apply the new LLPAs to 2nd Home and High Balance locks that are extended to 3/15/22 and beyond
3) Reverse any imposed LLPAs on 2nd Home and High Balance locks that are funded by 3/15/22 for Wholesale transactions
4) Reverse any imposed LLPAs on 2nd Home and High Balance locks that are funded and delivered by 3/15/22 for Mini-Correspondent transactions
5) Reverse any imposed LLPAs on 2nd Home and High Balance locks that are purchased by 3/15/22 for Delegated Correspondent transactions.
In the event the lock extends past 3/15/2022 the LLPA will apply, any changes not automatically applied, will be completed by our secondary team the following business day.
Flagstar Bank
In an email sent out on January 13, 2022, Flagstar announced new Agency Second Home and High Balance/Super Conforming LLPAs adjustments. Starting with new locks as of Friday, January 14, 2022, Flagstar will be implementing FHFA’s new Agency Second Home and High Balance/Super Conforming loan level price adjustments for locks 60 day and greater. Locks less than 60 day will be subject to the existing LLPAs until further notice.
Sean A. Stephens, Esq., CMB®
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