Announcement 19-0014: VA Refinance Transactions with DU Refer Recommendation

February 20, 2019

Overview

During the weekend of Feb. 16, 2019 Desktop Underwriter (DU) for government loans was updated to support the new LTV calculation required by Veteran Affairs (VA) Circular 26-18-30. Specifically, VA refinance loans where the total LTV exceeds 100% of the appraised value due to financing the VA Funding Fee will now receive a Refer recommendation.

Loans with applications dated prior to Feb. 15, 2019 remain eligible to finance the Funding Fee in excess of the appraised value; however, this may result in the DU rescoring to Refer findings due to the DU update. Loans with Refer findings must be manually underwritten and meet the requirements for VA manual underwriting, including, but not limited to, providing explanations for derogatory credit. It is anticipated that any loan previously approved using DU Approve findings will remain eligible for manual underwriting without requiring a change to the loan amount, subject to meeting the manual underwriting documentation requirements.

Loans with applications dated on or after Feb. 15, 2019 must meet the LTV calculation set forth in VA Circular 26-18-30. The total LTV including any financed Funding Fee may not exceed 100% of the appraised value of the subject property.

Contacts

Please contact CorrespondentRM@carringtonms.com with any questions.

Carrington thanks you for your business.

 

Government Agency Approvals

FHA Non-Supervised Mortgagee Approval #:
24751-0000-5
VA Automatic Lender Approval #:
902324-00-00

Mortgagee/Loss Payee Clause

Carrington Mortgage Services LLC
ISAOA/ATIMA
P.O. Box 692408
San Antonio, TX 78269-2408

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This information is provided for your convenience and Carrington Mortgage Services, LLC makes no warranties concerning the accuracy or completeness of any of the information. This is not financial or legal advice and should not be taken as such. This information is for mortgage professionals only and is not intended for distribution to consumers.
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Government Agency Approval | FHA Non-Supervised Mortgage Approval #: 24751-0000-5 | VA Automatic Lender Approval #: 902324-00-00

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