FHA allowable cost REVISED

FHA loans restrict the fees payable by the borrower to a combined Broker Fee and Origination Fee to 1% of the loan, which also MUST include the Third Party Processing Fee. The borrower may not pay any fees other than a ‘Broker Fee” and an ‘Origination Fee’ and their combined amount may not exceed 1% of the loan amount. Therefore, any and ALL broker/origination fees charged to and paid by the borrower in excess of a total of 1% on an FHA loan will be refunded to the borrower. This includes FHA Refinance transactions in addition to purchase transactions. The fee of 1% may be exceeded only if the GFE, the purchase contract, and the settlement statement identify broker fees in excess of 1% as having been paid by a party other than the buyer, i.e. the seller. The third party processing fee may be itemized as payable to the third party only under the same circumstances (i.e. paid by the seller). Otherwise, the processing fee must not be itemized separately and must be included in the total 1% charged to the borrower. If the contract processing fee is not paid by a party other than the buyer, Innovative will deduct the fee from the Originator’s total commission and pay it directly to the contract processor.

CLOSING PACKAGES NEW ADDRESS

EFFECTIVE Friday June 19th
All closed loan processed files, all title documents,and all checks must be delivered to the following address:
Attention: Suzanne or Bryan Ehrlich
1195 Watauga River Road
Sugar Grove, NC 28679

ALL PACKAGES MAY BE SENT VIA USPS, UPS, FED EX OR ANY OTHER DELIVERY VENDOR THAT DELIVERS TO THIS ADDRESS.

PLEASE NOTE THAT ALL PACKAGES SHOULD BE SENT WITHOUT SIGNATURE REQUIRED.

REGARDLESS OF CLOSING DATE ALL CLOSED LOANS AND CHECKS MUST BE DELIVERED TO THE ABOVE ADDRESS BEGINNING JUNE 19TH, THIS FRIDAY.
WE WILL ADVISE YOU WHEN TO RESUME SENDING CLOSED LOANS TO THE CORPORATE ADDRESS. UNTIL THEN, THE ABOVE ADDRESS SHALL REMAIN IN EFFECT UNTIL FURTHER NOTICE.

Appraisal and Third party fees

Please note the policy clarification below:

Conventional, FHA, Reverse Mortgages, Commercial Loans, and HELOCS:

Third Party Fees (appraisal, survey, home inspection, termite, credit report, etc.) are NOT to be payable to Innovative Mortgage under any circumstances. If you collect a Third Party Fee Innovative is required to refund the amount in full to the borrower(s). Innovative does not maintain a Third Party Account, therefore, Third Party Fees must be directly payable to the applicable Third Party by the borrower(s). Additionally, please note that Third Party Fees must be mailed or delivered directly by the borrower. Under NO CIRCUMSTANCES are Loan Originators to deliver Third Party Fees to a vendor. Furthermore, all Third Parties must be paid in advance of completing their service. A loan originator may pay for a Third Party Fee on behalf of the borrower, but must do so in advance of the service (in other words if you want to pay for your borrower you must do it up front). Otherwise, the borrower must pay in advance of the service. A Third Party Vendor may proceed at their own discretion without advance payment if, and only if, they sign the ‘Vendor Release of Liability’ form. Otherwise, the Loan Originator will be held responsible for paying the Third Party Fee in its entirety. This form can be found @ www.TheMortgageIsRight.com/disclosures

VA LOANS:

‘Application Fees’ may NOT be collected on any loans, except VA loans. If you collect an Application Fee on a VA loan, it must be payable to ‘Innovative Mortgage Services, Inc.’ and must be immediately remitted to our corporate office. Since VA does not permit the borrower to pay for the appraisal directly, the Loan Originator must make payment to the VA appraiser in advance of the service, or Innovative will cut a check to the appraiser if an Application Fee was collected. This policy applies ONLY to VA LOANS.

FHA Policy Notification

THIS CAN EFFECT YOUR PAY- PLEASE READ

Dear Loan Associates,

We have recently been made aware of a FHA policy regarding fees collected at closing by mortgage brokers. Mortgage brokers can only charge an origination fee (capped at 1%) OR ancillary fees (capped by the wholesale mortgage lender) to a borrower. The ancillary fees are defined as any fees payable to the mortgage broker (Innovative Mortgage). You cannot charge your borrower an origination fee and any additional fees (broker, admin, ect). If you elect to charge your borrower a broker fee, you cannot charge an origination fee. You CAN charge your borrower an origination and the SELLER any additional mortgage broker fees. FHA has indicated that the payment by the BORROWER of both an origination and mortgage broker fee is “double dipping”. All processing fees must be paid DIRECTLY to the processing companies as FHA has indicated that they consider this an “ancillary fee” and should be covered in broker fees. If you have any questions, please contact me directly. Please note that this ONLY applies to FHA mortgages. Failure to follow this policy will result in funds refunded to the borrower. Thank you.

Approved Contract Processors

Please find link below to our latest “Approved Contract Processor List”. As a reminder, you must use a company APPROVED contract processor for any and all loans originated on your behalf. Failure to do so shall be cause for termination and definite forfeiture of commissions. We will continue to add processors as the need and opportunity arises. We are confident in the ability of our existing contract processors to provide excellent service and outstanding processing. Please do not hesitate to contact us if we can be of assistance with any processing challenges.

You may find an updated list by selecting this link as well
http://www.themortgageisright.com/processing

Please note that Accredited Processing has been removed from the list because they are no longer accepting new Loan Originators.

Red Flag Reports

It is important that when you order credit for your borrowers you input the additional data as well
*Date of Birth for both borrower and co-borrower
*Phone Number for both borrower and co-borrower
*Drivers License for both borrower and co-borrower
I have been receiving Red Flags reports that do not contain this information. The purpose of the Red Flags report is to verify your borrower’s identity so the more information the system receives a more accurate report will be generated.

NEW FHA LENDER!!!

I am pleased to announce that we have been approved with American Financial Resources. They offer manual FHA below 620 as well as 203K loans. Please contact our account executive below for additional information.

Bill Cannova
Wholesale Loan Consultant
American Financial Resources, Inc.
561.337.5888 Office
954.444.9991 Cell
561.491.6888 PREQUAL FAX
www.afrwholesale.com