LoanScoreCard 4.1 Release Notes

Transcription

1 Table of Contents Release Item 1. New/updated FHA Messages for the following topics: a. Other Income Type b. Missing FHA Case Number c. Earnest Money d. Citizenship i. Permanent Resident Alien ii. Non-Permanent Resident Alien e. 203(k) f. Seller Contributions g. Sales Contract h. Identity-of-Interest i. Building on Own Land 2. Inclusion of all borrowers from all 1003 s in header section of Findings Report 3. Handling of unmatched/mismatched mortgage and HELOC liabilities Page Changes to the Income Information grid on the Findings Report 5 5. FHA Case Run # 5 Page 1 June 17, 2013

2 1. New/updated FHA Messages for the following topics: Condition Other Income Type Message Other Income in the amount of $xxx.xx for John Smith was entered on this loan. It s the lender s responsibility to ascertain all income for risk assessment purposes to meet FHA s requirements for qualifying income. Missing FHA Case Number An FHA Case Number has not been entered. Unless the loan is scored at least once with a case number, FHA does not recognize the risk assessment nor can information be carried from TOTAL to FHA Connection for endorsement processing. Earnest Money ( Cash Deposit on sales contract in Details of Transaction) If the amount of the earnest money deposit exceeds 2% of the sales price or appears excessive based on the borrower s history of accumulating savings, the lender must verify and document the deposit amount and source of funds. Satisfactory documentation includes a copy of the borrower s cancelled check, certification from the deposit-holder acknowledging receipt of funds, or separate evidence of the source of funds. Separate evidence includes a verification of deposit (VOD) or bank statement showing that the average balance was sufficient to cover the amount of the earnest money deposit at the time of the deposit. Citizenship Permanent Resident Alien John Smith was declared as a Permanent Resident-Alien. FHA insures mortgages for borrowers with a lawful permanent resident alien status using the same terms and conditions as those for U.S. citizens. The mortgage file must include evidence of the permanent residency. The U.S. Citizenship and Immigration Services (USCIS) within the Department of Homeland Security provide evidence of lawful, permanent residency status. Non-U.S. citizens who do not have lawful residency in the U.S. are not eligible for FHA-insured mortgages. Page 2 June 17, 2013

3 Citizenship Non- Permanent Resident Alien Susan Smith was declared as a Non-Permanent Resident- Alien. FHA insures mortgages made to non-permanent resident aliens provided that the property will be the borrower s principal residence, Susan Smith has a valid Social Security Number (SSN), and is eligible to work in the United States, as evidenced by an Employment Authorization Document (EAD) issued by the USCIS. Non-U.S. citizens who do not have lawful residency in the U.S. are not eligible for FHA-insured mortgages. 203(k) Seller Contributions Sales Contract The Section of the Act for this loan is 203(k) and $ was indicated as Alterations, Improvements and Repairs in the Details of Transaction. Please ensure that the loan meets all FHA 203(k) guidelines, including property eligibility, eligible and required improvements, appraisal requirements, maximum mortgage amount, and maximum charges and fees. This loan has $ identified as being paid by the Seller. The seller and/or third party may contribute up to six percent of the lesser of the property s sales price or the appraised value toward the buyer s closing cost, prepaid expenses, discount points and other financing concessions. Contributions exceeding six percent are considered inducements to purchase. Lenders may pay a borrower s closing costs, and/or prepaid items by premium pricing. Closing costs paid in this manner do not need to be included as part of the seller contribution limitation. The lender must obtain the fully executed sales contract and any amendments or other agreements and certifications. Identity-of-Interest If the loan is an identity-of-interest transaction on a principal residence, the maximum LTV is restricted to 85%, except where permitted under certain circumstances as described in the HUD Handbook Building on Own Land The borrower is eligible for maximum financing if he/she acts as a licensed general contractor and is building a home on land that he/she already owns or acquires separately. However, they may not receive any cash back at closing. Page 3 June 17, 2013

4 2. Inclusion of all borrowers from all 1003 s in header section of Findings Report The names and FICO scores of all borrowers from all 1003 s are now included in the top header section of the Findings Report. 3. Handling of unmatched/mismatched mortgage and HELOC liabilities When you first import a file into LSC and there are unmatched mortgage or HELOC liabilities, and exactly one REO, the system will automatically match them together. Before rendering a Findings Report, if there are any unmatched or mismatched mortgage/heloc liabilities remaining, the system will return the following error message, depending on your method of access. LSC.com: Unmatched/Mismatched mortgage liabilities detected. Correct this in the 1003 by matching all Mortgages and HELOC Liabilities to an REO. LSC web service API: Unmatched/Mismatched mortgage liabilities detected. Return to the source system to match all Mortgages and HELOC Liabilities to an REO. Page 4 June 17, 2013

5 4. Changes to the Income Information grid on the Findings Report The column headings will now reflect the two borrowers names from the first 1003, with the 3 rd column showing the total from all other 1003 s, followed by the Grand Total in the 4 th column. A Subtotal row separates out the Net Rental and Subject Net Cash below it. When the Grand Total of the Net Rental is positive, that gets included in Total Income at the bottom. Likewise, when the Grand Total of the Subject Net Cash is positive, that gets included in the Total Income at the bottom as well. However, if either one is negative, a notation appears indicating that that negative Grand Total is Not included in Total Income. 5. FHA Case Run # The FHA TOTAL Scorecard section of the Findings Report has been updated. A new field has been added FHA Case Run #. This counter is incremented whenever the provided FHA Case Number is successfully received by TOTAL, reflecting the number of times FHA has received loan data for that FHA Case Number through LSC. This counter shows blank whenever there is no FHA Case Number. Page 5 June 17, 2013