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COVID-19 Info Center

March 30, 2020 Blog No Comments

Freedom Mortgage COVID-19 Info Center

COVID-19 Reference Guide
Updated November 23, 2020

1. From the Desk of Keith Bilodeau, Senior Vice President

Thank You for Your Partnership and Your Patience
June 2, 2020
As We Grow, Setting Expectations Together is Key

  • Underwriting Turn Times Extended
  • Best Practices for an Efficient Experience

A Note to Our Valued Partners
March 18, 2020
From the Desk of:
Les Acree, Executive Vice President
Keith Bilodeau, Senior Vice President

2. Important Broker Originated Refinance Loan Status Reminders
Updated: December 1, 2020

  • Loans with Final Approval Status by December 4th are Projected to Close and Fund in December
  • Refinance loans must have a CD Acknowledged by December 21st to be Eligible to Fund in December. Click here for additional refinance deadlines for December fundings/closings.
  • Please see Guidance and Support Options for Loans Submitted but not Closing or Disbursing in December

About Loans Submitted, But Not Disbursing until January:

  • Verify mortgage payments have been made and payoffs and payment histories have been updated and uploaded to your files. Loans disbursing in January should show borrower’s next mortgage payment is due in January or after.
  • Free and Automatic Lock Extensions Are Available for FHA Streamlines and VA IRRRLs

FHA Streamline and VA IRRRL Criteria:

  • Loan has been active/in process within the last 30 days
  • Lock is expiring within seven days
  • Note rate must be less than or equal to 3.75
  • Extension is automatic; no requests required
  • A maximum of two free extensions permitted

Note: Loans that have not satisfied refinance seasoning requirements are not eligible for free and automatic lock extensions.

3. Agency (FHA, VA, USDA, FHLMC and FNMA) Guidance
Updated November 23, 2020

Updated Conventional Guidance

Applies to ALL income-qualifying Fannie Mae, Freddie Mac, VA, FHA, and USDA loans unless otherwise noted.

  • Removed the mandated three (3) month reserves requirement for all Conventional primary residence transactions.

Click here to review all COVID-related Freedom Mortgage Conventional Guideline Requirements
Updated November 23, 2020

Click here to review a detailed printable summary of new changes
Updated November 23, 2020

Credit Policy Announcement 20-07: Coronavirus Pandemic - Guidance
Updated November 23, 2020

4. Freedom Mortgage Product Updates

FHA and VA Product Updates and Reminders - Refinances
Updated June 29, 2020

  • For FHA Transactions:
    • Purchases and Cash Out Refinances require a minimum credit score of 600 for each borrower for both Standard and Jumbo transactions.
    • For Non Freedom-to-Freedom Rate/Term or Simple Refinances: Minimum risk score of 600 for each borrower for both Standard and Jumbo transactions
    • For Freedom-to-Freedom Rate/Term or Simple Refinances:
      • Minimum risk score of 550 for each borrower for both Standard and Jumbo transactions

      • LTV may not exceed 90% for Borrowers with credit scores below 580
    • For Streamline Refinances:
      • For Freedom-to-Freedom Non-Credit Qualifying transactions, as always, clients may elect a mortgage-only tri-merged credit report with or without scores. Please see the rate sheet for applicable LLPAs. Note: This guideline is unchanged but listed here for clarity.
      • For Freedom-to-Freedom Credit Qualifying transactions, a minimum 550 representative credit score is required for each borrower.
      • For all non Freedom-to-Freedom Non-Credit and Credit Qualifying Streamlines, a minimum 640 representative credit score for each borrower is required on both Standard and Jumbo transactions.
    • Minimum risk score remains at 640 for all Manufactured Housing scenarios.
       
  • For VA Transactions:
    • Purchases and Cash Out Refinances require a minimum credit score of 600 for each borrower for both Standard and Jumbo transactions.
    • For IRRRL Refinances:
      • For Freedom-to-Freedom transactions, a minimum 550 representative credit score is required for all borrowers.
      • For non Freedom-to-Freedom transactions, a minimum 600 representative credit score is required for all borrowers.
    • For Manufactured Housing:
      • A minimum 640 representative credit score remains for all borrowers for Manufactured Housing
         
  • For USDA Transactions:
    • The minimum credit score is being increased from 640 to 600 for full documentation and streamline transactions.

6. Lock Policy Updates

 

Rate Lock Option Expansion & Rate Lock Extension Policy Update

Effective November 30, 2020

  • New: 30/45 Day Lock Options Available for all Conventional, FHA and USDA
  • Update: Free Rate Lock Extensions Now Available Only for FHA Streamlines and VA IRRRLs (only available for files with original 60 day locks).

Note: Wholesale Correspondent loans where Freedom Mortgage draws the closing documents continues to be eligible for a free lock extension. Clients drawing their own docs are no longer eligible. 
 

New Lock Options Available November 30th
 Updated Free Lock Extension Policy Effective for
Loans Expiring on or after Monday, November 30th

 

Committed to You
Freedom Mortgage is committed to providing you with the products and services you need to compete in this dynamic market.  As our business has grown this year, we’ve invested in solutions and teams designed to expand our product offerings while enhancing the service expectations of you and your borrower.

New: 30/45 Day Lock Options Available for all Conventional, FHA and USDA
Available November 30th

Update: Free Rate Lock Extensions Now Available Only for FHA Streamlines, VA IRRRLs
(only available for files with original 60 day locks) and Wholesale Correspondent Loans where Freedom Mortgage Draws the Closing Documents. Clients drawing their own docs are no longer eligible for a free rate lock extension.
Effective for Loans Expiring on or after Monday, November 30th

As a reminder, the free lock extension criteria continues to applies:

  • Loan has been active/in process within the last 30 days

  • Lock is expiring within seven days

  • A maximum of two free extensions permitted

  • VA IRRRL loans must have satisfied seasoning requirements

 

7. Approved Title Insurance Companies

 

 

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