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2/22/2012
FHA Streamline 203(K) Changes and Requirements

Effective with all new applications dated on or after February, 23rd, 2012, all FHA 203(k) loans must disclose the following items on the initial Good Faith Estimate:
* Supplemental Origination Fee: Must be included in Box 1 of the GFE. Fee is the greater of $350.00 or 1.5% of line B10 of the 203(K) Maximum Mortgage Worksheet (MMWS). This fee is also an APR charge and should be reflected in the APR on the Initial Truth In Lending.
* 203(K) Appraisal Final Inspection Fee: Must be included in Box 2 of the GFE in the amount of $100.00. Also, included in line B3 of the 203(K) MMWS. This fee is also an APR charge and should be reflected in the APR on the Initial Truth In Lending.
* 203(K) Title Update Fee: Must be included in Box 4 of the GFE in the amount of $50.00. Also, included in like B3 of the 203(K) MMWS. This fee is also an APR charge and should be reflected in the APR on the Initial Truth In Lending.

Other important reminders in properly setting up and disclosing a 203(K) loan:

* Total of all bids go in line B1 on the MMWS.
* RMC requires a 15% Contingency Reserve on all 203(K) loans. Please see line B2 of the MMWS.
* Total Rehabilitation Cost in line B14 of the MMWS needs to match the letter b (Alterations, improvement, repairs) on the Details of Transaction on the 1003.

All files that do not currently have the above fees properly disclosed must be submitted to RMC no later than Wednesday, February 29th, 2012. These files will also have restrictions in regards to the rate lock. Please contact RMC if you have a file affected by this change.

Effective for all new 203(K) loans submitted to RMC on or after March 1st, 2012, the following documentation must be submitted in order for the file to be Registered and submitted to Underwriting:

* Complete bids from the Contractors the borrowers have chosen to complete the work (no more than 3 contractors per loan).
* Completed 203(K) Maximum Mortgage Worksheet where B1 matches the total of all bids and Total Mortgage Amount with UFMIP, F1, matches the Total Loan amount on the 1003.
* Appraisal that includes BOTH a “subject to” value and an "as-is" value as well as references and includes the bid copies from the Contractors.
* HUD Owned Homes: Must include a copy of the HUD Appraisal, HUD PCR Report and the Lead Based Paint Disclosure

Important reminders for ordering 203(K) appraisals:
* Must indicate on the appraisal order that it is a 203(K) appraisal
* Must indicate the FHA Case Number
* Must include a fully executed copy of the Purchase Agreement
* Must include complete copy of all Contractor Bids
* HUD Owned Homes: Must include a copy of the HUD Appraisal and HUD PCR report
* Be Specific! Use the comments section to include important details about the home or project that may affect the "subject to" value. Ex. If there are rooms or bathrooms being added, please indicate in the comments section "Subject property is currently a 2 bedroom home, bid includes the addition of another bedroom, please be sure appraiser is aware to use 3 bedroom comps".


If you have any questions, please contact your RMC Account Executive.

12/7/2011
USDA- Rural Housing Announcement
Upfront Guarantee Fee Increase on USDA Refinance Transactions

Effective today, Wednesday, December 7, 2011, new Conditional Commitment requests for a refinance transaction will be issued by Rural Development utilizing a 1.5 percent upfront guarantee fee and a 0.3 percent annual fee.

All USDA Refinance transactions that currently have not been obligated by Rural Development must be re-disclosed within 3 business days of this announcement.

The new fee structure for USDA loans for Fiscal Year 2012 is as follows:

* 2 Percent upfront guarantee fee for purchase transactions

* 1.5 Percent upfront guarantee fee for refinance transactions; and

* 0.3 Percent annual fee for both purchase and refinance transactions.

If you have any questions please contact your Account Executive.


12/5/2011
USDA- Rural Housing Announcement
Pricing Adjustment Change

Effective today, Monday, December 5th, all new locks & relocks with a FICO score of 620-639 will be subject to a pricing adjustment of (1.500)

10/11/2011
USDA- Rural Housing Announcement
Funding Update & Form Revisions

Funding Update

Per the Lender Funding Notice issued by the United States Department of Agriculture, Rural Development, on September, 29, 2011, funding for the Single Family Housing Guaranteed Program will not be available for a short period of time at the beginning of Fiscal Year 2012, which began on October 1, 2011.

During the temporary lapse of funding, RD will issue Conditional Commitments "subject to the availability of commitment authority" for both purchase and refinance transactions.

As in prior years, Ross Mortgage Corporation will continue to close and fund USDA Guaranteed Rural Housing Loans on "subject to" Conditional Commitments. Please be advised it is "business as usual" for RD loans!

Form Revisions

The 1980-21 has been revised with an effective date of 10-2011. Any loan that did not receive a Conditional Commitment prior to October 1, 2011 must have the new 1980-21 executed before Ross can send the loan to RD.

The new form has been attached to this announcement. Please also take a moment to review the attached announcement from September 8, 2011 in regards to the Implementation of Annual Fee and Decreased Upfront Fee effective for all loans obligated by RD on or after October 1, 2011.
If you have any questions, please contact your Ross Mortgage Corporation Account Executive.


1980-21 Request for Single Family Housing Loan Guarntee Rev 10.11


USDA- Rural Housing Announcement: Implementation of Annual Fee and Decreased Upfront Fee

If you have any questions, please contact your RMC Wholesale Account Executive.

PLEASE NOTE: Product guidelines are subject to change.

9/9/2011
USDA- Rural Housing Announcement
Implementation of Annual Fee and Decreased Upfront Fee

Per RD Administrative Announcement No. 4551 (AN 4551), an annual fee is being implemented on all loans obligated under the Single Family Housing Guaranteed Loan Programs.

All loans obligated by Rural Development (RD) on or after October 1st, 2011, will be subject to the new annual fee of 0.30 percent of the outstanding principal balance. The up-front USDA Guaranteed Fee for purchase transactions will decrease from 3.5 percent to 2 percent. The up-front USDA Guaranteed Fee for refinance loan transactions will remain at 1 percent.

PLEASE NOTE: Ross Mortgage's LOS system has been modified to accommodate the new annual fee assessed on USDA Loans. The annual fee will be disclosed on RMC's GFE, TIL & HUD1 as a monthly mortgage insurance premium.

RMC recommends continuing to disclose the 3.5% up-front Guaranteed Fee through October 1st, 2011. If the loan is NOT obligated by RD by the October 1st deadline, that is a valid change in circumstance to re-disclose the lower up-front fee and add the annual fee. Adding the annual fee will cause the APR to increase and may cause a delay in closing per MDIA/TILA guidelines.

Follow the below link for a complete copy of this announcement which includes AN 4551, Annual Fee Calculation and FAQ.

USDA- Rural Housing Announcement: Implementation of Annual Fee and Decreased Upfront Fee

If you have any questions, please contact your RMC Wholesale Account Executive


7/12/2011
NEW Product Announcement FNMA HomePath

RMC Wholesale is pleased to announce the introduction of the Fannie Mae HomePath® product to our Broker partners. The HomePath® mortgage provides special financing for loan-to-value (LTV) ratios up to 97% when the borrower is purchasing an eligible Fannie Mae-owned property. Other key features include financing without mortgage insurance with LTVs greater than 80% and no appraisal report or cost.

Follow the below link for a Product Overview and Guidelines.

NEW Product Announcement- FNMA HomePath


5/4/2011
Third Party Processing- For Lender Paid Transactions

Effective with new applications taken on or after Wednesday, May 4th, 2011, RMC Wholesale will accept loans with a Third Party Processing fee properly disclosed on the Good Faith Estimate for Lender Paid transactions.

Follow the below link for complete instructions on how to submit a loan with a bona fide Third Party Processing fee as well as a Third Party Processing agreement that must be executed and returned prior to submitting any loans where a Third Party Processing fee is charged.

Third Party Processing Announcement and Agreement

PLEASE NOTE: Premium Pricing may be used towards the Third Party Processing fee.

If you have any questions, please contact your RMC Wholesale Account Executive.

4/6/2011
Effective Immediately
Reg Z & Broker Compensation Lock Procedures

ALL loans submitted and/ or locked on or after Wednesday, April 6th, 2011 MUST comply with the new Reg Z guidelines.

Please follow the below link for important guidance on submitting, locking and preparing Good Faith Estimates under the new rule:

Broker Compensation Lock Procedures

Please follow the below link for a copy of the original RMC Reg Z announcement with detailed RMC specific guidelines:

Regulation Z/ Loan Originator Compensation Announcement

If you have any questions please contact your Account Executive.

3/29/2011
USDA-RD Appraisals and Appraisal Independence

Effective with all USDA-RD Appraisals ordered on or after Friday, April 1st, 2011, the following requirements must be met:

* All USDA-RD appraisals must now comply with the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 that requires appraisal independence.
* Broker partners must order ALL appraisals via a Ross Mortgage Corporation approved AMC.
--USDA-RD & FHA Appraisals- may use any of the RMC approved AMC's (Dart, ACT, or LandSafe)
--Conventional Appraisals- Must be ordered via LandSafe
--VA Appraisals- Must be ordered via the VA appraisal ordering system with an appraisal type of "IND"- Individual Origination Case
* Any appraisal that is ordered on or after April 1st that is not compliant with the rule will be rejected. A new appraisal must be ordered in a compliant manner to meet the requirements of the rule.
* Please note the criteria for the appraisal is the "order date" of the appraisal NOT the application date, loan registration date, etc; it is the order date of the appraisal itself.

If you have any further questions please contact your Account Executive for details.

3/21/2011
Rate Lock Procedures and System Improvements

In an effort to increase accuracy and efficiency, RMC has made changes to the Rate Lock Procedures and systems. Beginning Monday, March 21st, 2011, users will be unable to lock a loan without first registering the loan with RMC Wholesale and receiving a loan number. Please follow the below link for important changes and for instructions on how to register and lock your loan with RMC Wholesale.


Rate Lock Procedures and System Improvements

3/4/2011
USDA Rural Housing Credit Score Adjustments

Effective Monday, March 14th 2011, the following pricing adjustments will apply to all USDA Rural
Housing loans:

Credit Score....... Pricing Adjustments
620 to 639..................... -.750%
640 to 659..................... -.250%
660 to 719................. No Adjustment
720 and above ............. +.125%

Locks must be received by RMC no later than 12pm (EST) on Friday, March 11th, 2011 to ensure the current pricing will be honored. Any locks received after 12pm may be subject to the above pricing adjustments.

Important reminders:
* Minimum credit score for USDA Rural Housing: 620
* All borrowers must have at least two (2) credit scores reporting
* If only two (2) scores are reporting, the lowest of the two (2) must be used for pricing and
qualification
* If three (3) scores are reporting, the lowest middle score for all borrowers must be used for
pricing and qualification

If you have any questions, please contact your Account Executive.

2/28/2011
Regulation Z Amendment- Loan Originator Compensation Announcement

Regardless of the application date, all loans must be received and locked with RMC Wholesale on or before 5pm(EST) Friday, March 25th, 2011 to close under the existing compensation rules. Any loan received or locked, after Friday, March, 25th, will be subject to the new Loan Originator Compensation regulations.

Please follow the below link for the complete announcement that includes:
*Summary of Regulations
*RMC Wholesale Compensation Options (Borrower vs. Lender Paid)
*Sample Rate Sheets including loan scenario example

Regulation Z Amendment- Loan Originator Compensation Announcement

More to Come...
Over the next few weeks, be on the lookout for more RMC Announcements and information, such as:
*Anti-Steering requirements and/or disclosures
*Lender Paid Compensation Selection Agreements

2/15/2011
FHA Annual Mortgage Insurance Premium Changes

Effective for all FHA Case Numbers assigned on or after April 18th, 2010 HUD is implementing a 25 basis point increase to the Annual Mortgage Insurance Premium.

FHA Case Number Assignment Requests must be received by RMC Wholesale no later than 5pm EST, Thursday, April 14th, 2011 to ensure the case number can be assigned prior to the April 18th cut off. Case Number Assignment Requests received after April 14th, may be subject to the new Annual MIP schedule.

Below is a chart of UFMIP and Annual MIP effective for case numbers on or after April 18th, 2011.

*Mortgage Terms Greater than 15 Years:

Loan To Value ... UFMIP ... Annual Premium
>95.00% ............. 1.00% ............ 1.15%
=<95.00% ........... 1.00% ............ 1.10%

*Mortgage Terms Less than or Equal to 15 Years:

Loan To Value ... UFMIP ... Annual Premium
>90.00% ............. 1.00% ............ .50%
=<90.00% ........... 1.00% ............ .25%

Case Number Guidance

Beginning April 18th, 2011, FHA systems will automatically cancel any uninsured case number where there has been no activity for 6 months since the last action except for:
*loans where an appraisal update has been entered, and/or
*loans where the Upfront Mortgage Insurance Premium (UFMIP) has been received

Last action includes:
*case number assigned,
*appraisal information entered,
*firm commitment issued by FHA
*insurance application received and subsequent updates, and
*Notice of Return and resubmissions

This is applicable to case numbers assigned prior to April 18th, 2011. To ensure active Case Numbers are not cancelled, Appraisals should be submitted to RMC as soon as received so they may be logged into FHA Connection.

Please follow the below link for a full copy of the Mortgagee Letter.

Mortgagee Letter 2011-10

2/7/2011
Document Submission Requirements

Effective with submissions on or after Monday, February 7th, 2011, RMC Wholesale will implement new File Submission and Condition Submission requirements.

Please follow the below link for a complete list of document submission requirements and instructions.

Document Submission Requirements and Instructions


1/20/2011
USDA Refinance Announcement

USDA Refinance product now available starting today, January 20th, 2011!

USDA Refinances have great benefits for existing RD loan customers:

Options to refinance with or without an appraisal.
* With an appraisal, roll in closing costs and prepaids up to 100% of the appraised value
* Without an appraisal, new base loan amount is equal to the existing principal balance on the current loan- RD fee can be financed on top

No Monthly MIP!!

For additional information or product details please contact your Account Executive.

1/7/2011
FHA Case Number Assignment Process

For files needing an FHA Case Numbers on or after January 1st, 2011, please follow the steps outlined in the link below:

FHA Case Number Assignment Process

To obtain a copy of the FHA Case Number Request Form use the following link
FHA Case Number Request Form or click on the Documents/Forms tab at the top of the page.

Please also be sure to use the 92900-A (HUD Addendum to URLA) with the revision date of 09/2010:
Form 92900-A

Any questions please contact your Account Executive.

1/4/2011
RMC Wholesale Fee Schedule 2011

The following fee schedule will be applicable on all applications taken on or after Tuesday, January 4th, 2011.

Government Fee Schedule:

Section of GFE..................................Fee Description...............Fee Amount
1. Our Origination Charge..................Underwriting Fee.................$725.00
3. Required Services that we select.....Flood Certificate Fee............$25.00

Conventional Fee Schedule:

Section of GFE..................................Fee Description...............Fee Amount
1. Our Origination Charge..................Underwriting Fee.................$725.00
3. Required Services that we select.....Flood Certificate Fee............$25.00
3. Required Services that we select.....Tax Service Fee..................$75.00
3. Required Services that we select.....Property Inspection Waiver..$75.00

Additional Fees applicable to all loan types with a Repair Escrow:

Section of GFE..................................Fee Description...............Fee Amount
1. Our Origination Charge..................Escrow Administration Fee....$350.00
3. Required Services that we select.....Compliance Inspection Fee...$150.00


RMC Wholesale Fee Schedule 2011


12/17/2010
VA Appraisal Announcement

Effective with all new VA appraisals ordered on or after December 21st, 2010 all VA Appraisals MUST be ordered with an appraisal type of "IND"- Individual Origination Case.

On the VA Appraisal ordering system on question 1, "Select an appraisal type" must be selected as "IND". This way the appraisal will be sent to VA to issue the CRV, Certificate of Reasonable Value. This will ensure the appraisal is reviewed in a timely manner and will be in compliance with all VA guidelines.

Any questions please contact your Account Executive.

12/1/2010
USDA Refinance Announcement

All USDA refinances must be locked and submitted to RMC Wholesale by 5pm on Wednesday, December 15th, 2010 to be eligible to close on a "subject to funding" Conditional Commitment.

Per USDA Announcement on November 29th, 2010, funds under the Fiscal Year 2011 Continuing Resolution for refinance transactions have been exhausted. RD will issue Conditional Commitments "subject to availability of congressionally appropriated funds for refinance transactions".

RMC Wholesale is suspending the USDA Refinance product availability until funding becomes available.

Please contact your Account Executive for details.

11/22/2010
Conditions Submission Process

By popular demand, a "Conditions" bucket has been created to submit all conditions at once. Individual buckets are still available for use. Please either upload condition groups under the appropriate buckets OR ALL conditions at once under the new "Conditions" bucket.

If you choose to upload all conditions at once under the "Conditions" bucket, they MUST be stacked in order of the Commitment Letter. Conditions submitted under the "Conditions" bucket that are not appropriately stacked will be rejected and must be restacked and resubmitted. Your conditions turn time will be affected by not properly submitting conditions.

Please keep in mind, conditions should be held onto until ALL conditions are received and upload at the same time regardless which conditions submission process you choose to use.

IMPORTANT: The following items MUST be uploaded under the appropriate buckets:

* Initial Submission Package
* Change Request- Loan Terms/Fees
* Closing Request
* Appraisals & Appraisal Final Inspections

To expedite the conditions review process, please continue to upload the following items under their individual headings (these are preferred but not required):

* Flood Insurance
* Hazard Insurance
* Invoice(s)
* Payoffs
* Title Commitment

Any questions please contact your Account Executive.

11/22/2010
Unexpired Redemption Periods

Effective with all loan applications taken on or after November 19th, 2010, RMC will no longer accept/close purchases with unexpired redemption periods.

Any loan on a foreclosed property will need to meet the following requirements:

*The redepmtion period must be expired.
*The foreclosure sale must be confirmed.
AND
*Clear and marketable title must be obtained.

If you have any questions please contact your Account Executive.

**The above guideline does not apply to USDA Rural Housing loans at this time.

10/19/2010
Conventional Products Announcement

Starting Tuesday, October 19th, 2010, RMC Wholesale will begin accepting Conventional Loan submissions and Lock Requests.

Please follow the link below for important guidelines, product listings, pricing tips, and LandSafe account set up and appraisal ordering instructions.

Product highlights:

* Fixed rate terms of 15, 20, 25, and 30 years.
* Purchase, Rate and Term, Cash Out and Fannie Mae DU Refi Plus programs available.
* Minimum FICO: 680 for all conventional programs.
* UW Fee to RMC: $950 (all inclusive)
* Max LTV for Purchase, R/T, and C/O: 80%; Max LTV for DU Refi Plus: 105%
* Owner Occupied, Single Family Residence Only (NO Condo's; Site Condo's are allowed).
* All Appraisals must be ordered through LandSafe.
* DU Findings: Must be Appove/Eligible
* Additional guidelines and overlays will apply.
* COMING SOON: RMC Conventional Product Matrix


RMC Wholesale Conventional Product Announcement

Please contact your Account Executive for additional details or if you should have any questions.

10/8/2010
New Repair Escrow Guidelines

Effective for all loan applications taken on or after October 8th, 2010

Please follow the link below for important guideline updates in effect for all USDA and FHA 203(b) loans with Repair Escrows submitted to RMC Wholesale.


RMC Wholesale Repair Escrow Guidelines


Broker Repair Escrow Agreement


Please contact your Account Executive if you should have any questions.

10/8/2010
We are making changes to better serve you!

Ross Mortgage Corporation has recently made improvements to address the needs of our Wholesale clients. Each Account Executive has been assigned a Broker Coordinator to assist their expanding client base.

If you are unable to get a hold of your assigned Account Executive please contact your Broker Coordinator for assistance. Your Broker Coordinator will be your "In House" representative when your AE is on the road.

Please continue to contact your AE for scenario related questions, username and password set up or new Loan Officer set up. Your Broker Coordinator will be able to assist in file status, general questions, clearing minor conditions, scheduling closings, etc.

Broker Coordinator ... Account Executive

Kim Haener............ Al Wootton
.............................. Mike Tackett

Josie Jurczak.......... Jim Smith
............................... Ryan Kulinec

Dawn DiPonio.......... Rod Sutherlund
................................ Robert Hudson

Please follow the below link for a complete list of Contacts.

Contact Us

10/4/2010
New FHA Connection Enhancements
Effective for all Case Numbers ordered on or after October 4th, 2010

The FHA Case Number Assignment screen as recently been upgraded to support Sponsored Third Party Originations. The enhancement calls for an additional question to be answered prior to completing the case number assignment.

Current FHA Approved originator's doing business with RMC Wholesale should answer the question as follows:
Is this a Sponsored Originator Case? NO

The broker should then enter their FHA Originator ID as usual and enter RMC's FHA ID under Sponsor/Agent ID as usual.

If you have any questions please contact your Account Executive or Broker Coordinator.

9/27/2010
FHA New minimum FICO score requirement
Effective for all Case Numbers ordered on or after October 4th, 2010 Ross Mortgage will require a minimum credit score of 640 on all FHA loans

*** Updated**** All FHA loans with a FICO below 640 must be locked by 12pm EST on October 1st, 2010.

No NEW submissions with a FICO score below 640 will be accepted after October 1st, 2010 without a valid lock confirmation from RMC.

All existing FHA loans with a FICO below 640 and a valid lock confirmation must close on or before November 19th, 2010.

Closing deadline is subject to change. Please contact your Account Executive for more details.

9/22/2010
FHA New UFMIP and Annual Mortgage Insurance Premium
Effective for all Case Numbers ordered on or after October 4th, 2010

Please see below chart summarizing the changes to the UFMIP and Annual MIP.

*Mortgage Terms Greater than 15 Years:

Loan To Value ... UFMIP ... Annual Premium
>95.00% ............. 1.00% ............ .90%
=<95.00% ........... 1.00% ............ .85%

*Mortgage Terms Less than or Equal to 15 Years:

Loan To Value ... UFMIP ... Annual Premium
>90.00% ............. 1.00% ............ .25%
=<90.00% ........... 1.00% ............ None


Please follow the below link for a full copy of the Mortgagee Letter.

Mortgagee Letter 2010-28

8/6/2010
FHA New CLTV Requirements for Refinance Transactions
Effective for all Case Numbers assigned on or after September 7, 2010

With the exception of streamline refinance transactions, the combined amount of the FHA-insured first mortgage and any subordinate lien may not exceed the:
*applicable FHA loan-to-value ratio AND
*geographical maximum mortgage amount

The chart below provides the applicable CLTV for refinance transactions.
Maximum CLTV for Refinance Transactions
*Rate and Term (or No Cash Out) Refinances: 97.75%
*FHA-to-FHA Streamline Refinances With or Without Appraisals: 125%
*Cash-out Refinances: 85%

Please follow the below link for a full copy of the Mortgagee Letter.

Mortgagee Letter 2010-24

**Please note: the mortgagee letter references Refinances for Borrower in Negative Equity Positions (ML 2010-23)- this product is NOT currently offered by RMC.

7/16/2010
Please Read: Effective Immediately on all OHIO loans

All Ohio closings must be scheduled a MINIMUM of 48 HOURS in advance of closing.

New disclosures will be attached to the Clear to Close- all disclosures must be executed properly and returned with the Closing Request form. The Notice of Escrow of Taxes & Regular Monthly Payment must be executed at least 24 hours prior to close (but no more than 3 business days prior to close). Any changes to the payment (including taxes and insurance) will require the disclosure to be resigned by the borrower(s)and the closing may be delayed up to 24 hours.

Please be sure to read the documents in the CTC carefully. If you see any loan data that appears to be incorrect, please contact RMC asap in order to get new disclosures generated and to avoid delays in closing.

Any questions please contact your Account Executive.

6/24/2010
Please note: RMC Wholesale will be closed on Monday, July 5th, 2010 in observation of Independence Day.

Have a happy and safe 4th of July from your RMC Wholesale Team!

6/16/2010
Please Read: First Time Homebuyer/ Tax Credit Loans

RMC is no longer accepting new submissions that must close by June 30th, 2010 for Tax Credit purposes.

For Tax Credit loans currently in process with RMC, all FINAL conditions MUST be submitted by 5pm on Wednesday, June 23rd, 2010.

All USDA loans eligible for the Tax Credit, must be submitted to RD no later than 4:30pm on Monday, June 21st, 2010. RMC cannot control RD turn times- please get conditions submitted early in order to allow ample time for RD processing.

6/7/2010
Please Read: Appraisal Fees paid via Dart

Appraisal Fees paid via Dart may NOT be given back to the borrower at closing without proper documentation.

If the broker wants to give the borrower credit for the appraisal fee on the HUD1, the broker must submit an updated bank statement WITH the closing set up sheet showing the appraisal fee to Dart coming out of their bank account.

If the appraisal is paid via Credit Card they can NOT under any circumstance get credit towards their down payment or get cash back for the appraisal fee at close.

Please note: if an updated bank statement is provided, we will also adjust their cash to close availability based on the updated bank statement and any large deposits must be sourced.

This documentation will NOT be accepted after the closing package has been prepared.

6/1/2010
Documents Required for Complete File Submissions

In order to better improve turn times, RMC has implemented the following policy in regards to complete file submissions.

Effective with submissions on or after Wednesday, June 2nd 2010, RMC Wholesale will reject any submissions missing the following items. In addition, all submissions must follow the attached stacking order or can be uploaded under the appropriate individual document codes.
Document Stacking Order


Submissions will also be rejected for PDF’s uploaded with the incorrect page orientation, documents not in sequential order, etc.

*1003- Complete/accurate- must be signed and dated by both borrower(s) and Loan Officer
*Broker Issued GFE- Must be dated w/in 3 business days of original application date (and provide any subsequent GFE’s issued prior to submission)
*Broker Issued TIL- Must be dated w/in 3 business days of original application date
*Intent to Proceed- Can be filled out by either the broker or the borrower(s)
*FHA Case Number Assignment- Broker must be listed as the originator and RMC must be listed as the sponsor
*Credit Report- Must ordered within 60 days of the submission date to RMC
*DU Findings- Findings must be released to RMC at the time of submission and a copy must be provided in the submission
*Assets- 1 months (30 days) current bank statements- must be dated w/in 60 days of submission date to RMC
*Income-
oPaystubs- 1 months (30 days) current paystubs- must be dated w/in 60 days of submission date to RMC
oW2's- past 2 years
*Purchases- Must have an executed legible copy of the Purchase Agreement

5/6/2010
Effective for loans submitted on or after 5/6/2010 the following DTI requirements will apply:

Purchase Transactions with FICO scores between 620 and 639 will have a max DTI of 45%

Purchase Transactions with FICO scores 640 and above will have a max DTI of 50%

FICO requirements are based on the lowest midscore of all borrowers on the transaction

4/12/2010
Effective 4/12/2010- Invoices Required prior to CTC

In order to better serve our broker community and expedite closing documents, RMC will now require all invoices to be submitted prior to the issuance of a Clear to Close.

New or Updated invoices will no longer be accepted at closing. If an invoice needs to be updated once the closing documents have been drawn, a Redraw Fee will be deducted from the broker's compensation. The loan may also be subject to rescheduling.

1/8/2010
All loan applications taken on or after January 1st, 2010 MUST meet the new RESPA/ GFE requirements or we will be unable to accept into underwriting.

Please follow the below links for RMC's official policy, updated disclosures, and required document checklists.


RMC RESPA/ Regulation X Guidelines


Updated Required Documents Checklist


Receipt of GFE and Intent to Proceed Form


Mortgage Broker Fee Agreement


Blank GFE


Request for Change in Loan Terms/ Fees


Link to HUDs RESPA Rule FAQs

If you have any questions please contact your Account Executive for more details.

12/28/2009
All loan applications taken on or after January 1st, 2010 MUST meet the new RESPA/ GFE requirements or we will be unable to accept into underwriting.

11/18/2009
In an effort to provide the borrower with final closing numbers in a timely and accurate fashion, give the closing and secondary marketing departments sufficient time prepare the package, review the final HUD and wire the correct amount to the closing table, the following change will go into effect for all Purchase closings.

**Ross will now require two business days from the document preparation date to the actual closing date on ALL purchase transactions.

We're experiencing too many instances where closing packages are being drawn or redrawn the day of the closing. This not only creates problems and uncertainty for the borrower(s), but is also creating far too many errors for the closing and secondary marketing departments.

11/17/2009
Effective November 16th, 2009 any FHA Streamline Refinance that is locked with a credit score of 620 - 639 will have a price decrease of 75 basis points.

Loans with a credit score between 620 639 must be closed by December 31, 2009.

Effective with case numbers ordered on or after November 18th, 2009 Ross will require a minimum credit score of 640 and loan must meet HUD's new streamline guidelines published in mortgagee letter 2009 - 32 (Refer to Ross Announcement 9/29/09).

10/20/2009

**USDA-RURAL DEVELOPMENT UPDATE**

October 19, 2009

Updated Recommendations on Conditional Commitments: Increasing Loan Amounts and/or Interest Rates Prior to Loan Closing and Changes to the Commitment

Due to the tremendous volume of new Single Family Housing Guaranteed Loan Program (SFHGLP) requests, Rural Development has identified key processing issues that must be addressed. In order to process new SFHGLP requests in a timely manner the following recommendations are issued.

Approved lenders are responsible for submitting complete and underwritten loan packages to Rural Development when requesting a Conditional Commitment for Loan Note Guarantee. Lenders must ensure loan files include properly verified closing costs, lender fees, real estate taxes and homeowners insurance escrows, etc. in order to arrive at the correct requested loan amount for guarantee. When these loan parameters change prior to loan closing it results in requests from lenders to modify loan terms and Conditional Commitments in a very short timeframe. This additional processing burden slows down the loan approval process, often times results in multiple requests, and is avoidable with planning.

Planning to Avoid Requests to Increase Conditional Commitments:
Approved lenders are encouraged to underwrite SFHGLP applications and submit Form RD 1980-21 "Request for Single Family Housing Loan Guarantee" to reflect the highest allowable interest rate (if floating) and the maximum loan amount (100% of the appraised value plus the one time guarantee fee) to ensure an increase request will never be required. Lenders will then have the option to close the loan for the loan amount and interest rate noted on the issued Conditional Commitment, or any lower amount. This practice applies to all manually underwritten loan files and those submitted through the Guaranteed Underwriting System (GUS).

Increase in Loan Amounts/Interest Rates After Issuance of Conditional Commitment:
Increasing loan amounts and/or interest rates in Rural Development's Guaranteed Loan System (GLS) can take up to 3 business days to complete, which may affect closing dates. The steps involved and the burden to the Rural Development field staff along with the new loan volume becomes a difficult responsibility to meet especially when multiple requests are received. In order to deliver the SFHGLP more efficiently and respond to approved lender requests, effective immediately requests to increase loan amounts on issued Conditional Commitments for $500 and below will not be processed by the Agency. Increase requests will not be given priority over SFHGLP application packages in process.

Loans submitted through GUS: Changes in loan terms (i.e. increase in loan amount above $500/interest rate, decrease in income, decrease in assets, etc.) that may adversely impact the underwriting recommendation received in GUS will be released back to the lender for correction and resubmission through GUS. This will ensure an accurate underwriting recommendation which may possibly change or require a full documentation loan file be submitted to Rural Development.

When approved lenders request increases of the loan amount and/or interest rate prior to loan closing, they must submit:

1. An updated Form RD 1980-21 "Request for Single Family Housing Loan Guarantee" executed by the lender and the applicant(s).
2. An updated Underwriting Transmittal Summary (FNMA 1008/FHMLC 1077) or similar underwriting document executed by the underwriter. GUS loan files that receive an "Accept" recommendation do not need to include this document as the underwriting recommendation and GUS Underwriting Findings Report serve as acceptable evidence.
3. An updated Uniform Residential Loan Application (URLA) executed by the applicant. (The final URLA may be conditioned for in the closing package to meet this requirement.)

Decreases in Loan Amount and/or Interest Rate Prior to Loan Closing:
Decreases in loan amount and/or interest rate prior to loan closing do not require concurrence from the Agency. Lenders may proceed to close such loans and should not request a revised Conditional Commitment. Requests from lenders to decrease the loan amount and/or interest rate by issuance of a modified Conditional Commitment will not be processed, as the previously issued Conditional Commitment remains valid. This applies to both manually underwritten loans and loans submitted through GUS.

Closing GRH Loans In Amounts Above An Issued Conditional Commitment/ Closing Without a Conditional Commitment:
Lenders who close a SFHGLP loan for any amount greater than the Conditional Commitment issued, or with no Conditional Commitment issued at all is not advised and dangerous. The lender will be acting at their own risk. The Agency is only obligated to issue a Loan Note Guarantee for the loan amount indicated on the Conditional Commitment. Loans that close without an issued Conditional Commitment have no funds reserved in the Agency's GLS tracking system and no indication from the Agency regarding loan approval. The Agency will not be able to issue a Loan Note Guarantee for such an example.


10/6/2009
Interest Rate Lock-in Procedure

All loans must be registered and assigned a RMC loan number in order to request a rate lock. Interest rates and programs may be guaranteed on behalf of the customer through Ross Mortgage Corporation’s wholesale based loan locking and registration system (Optimal Blue). Rate lock requests may be made via any device that provides web access to www.rmcwholesale.com.

9/29/2009
Revised Streamline Refinance Guidelines

HUD has issued a new mortgagee letter 2009‐32 which gives revised guidelines for originating/underwriting FHA Streamline Refinances. These changes will go into effect with case numbers ordered on or after November 17, 2009. Please review the mortgagee letter, but here are a few of the revisions:
Seasoning: At least 6 payments on the FHA‐insured mortgage must have been made.
Payment History: Mortgages between 6 and 12 months history must have made all payments within the
month due. For mortgages with a 12 month or greater history, the borrower may not have more than one 30
day late payment in the preceding 12 months AND made all mortgage payments within the month due for the
three months prior to the date of the loan application.
Net Tangible Benefit: there must be a net tangible benefit to the borrower as a result of the streamline
refinance:
** Reduction in total mortgage payment: If streamlining a Fixed Rate to Fixed Rate or Arm to Arm there
must be a 5% reduction in the total mortgage payment, included principle, interest, taxes, insurance
(both homeowners and flood), HOA dues, special assessments and subordination liens.
**Fixed Rate to ARM: Fixed rates to a one year ARM require a 2% points below the interest rate of the
current mortgage.
**ARM to Fixed: The interest rate on the new fixed rate mortgage will be no greater than 2% points
above the current rate of a one year ARM. For Hybrid ARMs the total mortgage payment on the new
fixed rate mortgage may not increase by more than 20%.
** Reduction in Term: May not be streamlined they must be underwritten and closed as a rate and term
refinance.
Verification of Income and Assets: Verification (verbal) that the borrower is employed and the collection of one current paystub to confirm income prior to closing. If assets are needed lender must verify and document
those assets.
Combined Loan to Value: Maximum combined loan to value when subordinate financing remains in place is
125%.
Discount Points: Discount points are NOT allowed to be rolled into the new mortgage.
Streamline without an Appraisal: new loan amount is limited to the UPB plus interest minus the applicable
refund of the UFMIP plus the new UFMIP. (You can no longer roll in any costs)

As a reminder, NEVER run your streamline refinance through DU – TOTAL SCORECARD, otherwise you will have to follow all DU guidelines and underwrite and close as a rate and term refinance. FHA Connection will know (by the case number) if your loan was run through DU at time of insuring and it will become uninsurable if a full underwrite has not been completed.

7/30/2009


Effective Thursday, July 30th, 2009 new MDIA and TILA regulations come into effect. All Submissions received by RMC on or after July 30th 2009 are subject to these new requirements. Please see your RMC Account Executive for more details or visit our FAQ section for examples and helpful information.

Key points:

Seven Business Days Prior to Consummation
Lenders must allow applicants to have a 7 business day waiting period after mailing or delivering the TIL prior to closing of the loan. RMC will mail out the initial GFE and TIL upon loan registration. This timing is not based on receipt date (or assumed receipt date) by the consumer- the timing begins with the mailing or delivery by the lender.

Revised APR Three Business Day Notice
If the APR is out of tolerance (+/-.125% from previously disclosed APR), lenders (RMC) must re-disclosure three business days prior to consummation. The loan may not close until 3 business days after the borrower has received the re-disclosure. If disclosures are sent via US Mail they are considered received 3 business days from the day they are mailed.

RMC will disclose initial disclosures and re-disclosures directly to the borrower.

The new regulations also effects when fees can be collected from the borrower. Please see the FAQ section or your RMC Account Executive for complete details.

6/25/2009
Effective 5/21/09 all loans submitted with a TBD PROPERTY are ineligible for an underwrite.

Any loan submitted on or after 5/21/09 with a TBD property will not be honored. Any TBD property submitted prior to 5/21/09 will not be reviewed until the week of 6/1/09.

In addition, any loan where the subject property has changed from the initial submission of said loan, it will be considered a "new" submission NOT a current loan in process. Any loan where the subject property has been changed that loan will go back into the rotation as a new submission.

Any further questions contact your Account Executive.