Announcement 19-0016: Documenting Business Bank Statements for Carrington Flexible Advantage Loans

March 7, 2019

Overview

Carrington Mortgage Services is pleased to announce new guidelines to make documenting business bank account ownership more straightforward and reduce exceptions for Carrington Flexible Advantage (CFA and CFA Plus) Bank Statement loans.

Old Requirements

New Requirements

All parties listed on each bank account must be included as borrowers on the loan.

If the borrower is not 100% owner of the business, or multiple parties appear on a business bank account but are not borrowers on the loan, business records must be provided to prove the borrower’s percentage of ownership and entitlement to profits. Examples of acceptable documentation include:

·      Articles of Incorporation with stock ownership breakdown,

·      the business’s Operating Agreement,

·      a Corporate Resolution,

·      or letter from the company’s tax preparer.

Qualifying income must be multiplied by the percentage of profits that the borrower is entitled to.

Note: these changes apply to business bank statements only and personal bank statements requirements remain unchanged.

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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