Announcement 19-0073: Updated Lock Policy for Cash-Out VA Loans with LTV Greater than 90%

August 27, 2019

Overview

Effective September 1, 2019: For all unlocked VA >90% Cash Out loans in the pipeline, the maximum lock available will be 15 days. Locks can be extended to September 30, 2019, and must be purchased by September 30, 2019.

As a reminder, Ginnie Mae issued APM 19-05 on August 1, 2019 which requires all Cash Out VA loans in excess of 90% LTV to be placed in special securities pools effective November 1, 2019. To comply with the pooling deadline, Carrington Mortgage Services, LLC (CMS) is implementing the following adjustments to our Lock Policy and Loan approvals:

Effective Dates New Submissions New Locks Lock Extensions
8/15/19 – 8/30/19 Allowed Max 30 Day Lock Term Allowed through 9/30/19
9/1/19 – 9/13/19 Not Allowed Max 15 Day Lock Term Allowed through 9/30/19
9/14/19 – 9/30/19 Not Allowed No new Locks Allowed through 9/30/19

Please note: To ensure all loans are purchased on or before September 30, 2019, Underwriting will add a condition to require that all files are delivered to CMS by September 15, 2019 and purchased by September30, 2019.

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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An Equal Housing Opportunity Lender. Copyright 2007 - 2022 . Carrington Mortgage Services, LLC headquartered at 1600 South Douglass Road, Suites 110 & 200-A, Anaheim, CA 92806. NMLS ID # 2600. Toll Free # 800-561-4567. All rights reserved. Restrictions may apply. All loans are subject to credit, underwriting and property approval guidelines. Nationwide Mortgage Licensing System (NMLS) Consumer Access Web Site: www.nmlsconsumeraccess.com.

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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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