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Information for Single-Family
Lending and
Real Estate Professionals
Program Announcement
October 5, 2016
Lakeview Loan Servicing Program Matrix –
Suspension of Manufactured Home Reservations
In anticipation of the roll out of Lakeview Loan Servicing “LLS” for
FHA, VA and USDA Home Advantage products, we wanted to ensure awareness
of the new product matrix. Although
LLS’s have the same fees, LTVs, CLTVs, credit score, and total debt
to income ratio as in our current program, we wanted to point out some
notable differences.
All borrowers must have a 620 credit score:
LLS follows the specific investor guidelines with respect to
calculation of the Minimum Qualifying Credit Score or also referred to
as the Minimum Decision Credit Score. The Minimum Decision Credit
Score (MDCS) refers to the credit score reported on the Borrower’s
credit report when all reported scores are the same. Where three
differing scores are reported, the middle score is the MDCS. Where
two differing scores are reported, the MDCS is the lowest score.
Where only one score is reported, that score is the MDCS. An MDCS is
determined for each Borrower. Where the Mortgage involves multiple
Borrowers, the Mortgagee must determine the MDCS for each Borrower, and
then select the lowest MDCS for all Borrowers. Where the Mortgage
involves multiple Borrowers and one or more of the Borrowers do not have
a credit score (non-traditional or insufficient credit), the Mortgagee
must select the lowest MDCS of the Borrower(s) with credit score(s).
Manual Underwriting for FHA only:
Manual underwriting is only permitted in cases where the loan received an ‘Approve/Eligible’ finding but requires a manual downgrade due to additional information not considered in the AUS decision that affects the overall insurability or eligibility of the loan subject to the following requirements: Minimum 660 FICO & Maximum 43% DTI.
Limited 203K Loans:
Lender to administer repairs and must be completed prior to loan
purchase.
Manufactured Homes – Suspension of New Reservations - Please
note LLS currently does not purchase loans secured by manufactured
housing. All reservations for FHA, VA, and USDA Home Advantage
programs for manufactured housing need to be reserved on or before
October 14, 2016. The Commission will no longer accept future
reservations after October 14 for FHA, VA, and USDA Home Advantage loans
with manufactured homes. If you have a loan under contract prior
to this announcement that cannot be reserved prior to October 14, please
contact Corinna Obar at
corinna.obar@wshfc.org. These loans will be considered on a
case by case basis. The Commission is still negotiating with LLS
in regards to future guidelines regarding manufactured housing and will
keep you posted.
Please see link to matrix for
program guidelines from LLS. Please see link for
program guidelines from
ServiSolutions for comparison. New Sections 2, 10, and 12 of
Home Advantage manual will follow.
Training dates and start date will be announced soon.
As a reminder, LLS will service all FHA, VA, and USDA Home Advantage
loans. ServiSolutions will continue to service Home Advantage
Conventional loans and all House Key loans.