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

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:

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.