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

Approval vs. Pre-Qual Letters

I would like to take a moment to discuss sending pre-qualification and approval letter on borrowers. Please note that according to Florida Statue 494 approval letter can only be generated after the borrowers file has been approved thru a lenders underwriter and they have issued an approval. The approval letter must state the terms of the approval and any/all outstanding underwriting items. Pre-Qualification letters can be generated on borrowers prior to underwriting approval, but all outstanding conditions (such a underwriting verification, appraisal, ect) need to be reflected on the letter. The 2 examples approved by Innovative Mortgage can be found @ www.TheMortgageIsRight.com/Disclosures. It is imperative that you utilize the appropriate forms when an approval letter is requested. Please contact me should you have any questions regarding these forms. Failure to follow the above policy is a violation of Florida Statue 494.

New Lender- 95% conventional!!

I am pleased to announce that we are now approved with Sierra Pacific Mortgage.
Please contact Vicky with any questions and scenarios

Vicky JednakAccount Executive
Sierra Pacific Mortgage - Agency,FHA/VA & Jumbo
941-448-5682

95% conventional-
§ Great Pricing § SFR 1 Unit § Max loan amount $417k §
§ 680 FICO (with BPMI) § DU or LP approval OK §
§ Up to 55% DTI (with AU approval and comp factors) §
§ Multiple MI options available! (see below) §
MORTGAGE INSURANCE OPTIONS AVAILABLE
Retaining Current Residence: NO rental income can be used. Borrower must qualify with both
payments AND have 6 months reserves for both properties verified.
Credit:
· NO mortgage lates in the last 12 months
· NO more than 2x30 in the last 12 months revolving
· NO more than 1x30 in the last 12 months installments; NO major adverse in the last 12 months
(judgments, collections), BK’s/Foreclosures 48 months from “discharge” date.
Housing History: Housing history is required. VORS must be from major rental company.
Private party rent history must be 12 or 24 months cancelled checks based on tradelines.
Tradelines:
· 24 month + Housing = 2 tradelines open and active for 12 months
· 23 or less month housing = 3 tradelines open and active for 24 months
· Less than 12 months housing; exception basis only (most likely no).
Debt to Income: 55% must
have compensating factors.




Vicky JednakAccount ExecutiveSierra Pacific Mortgage - www.spm1.comWholesale Division - Agency,FHA/VA & Jumbo 941-448-5682