Announcement 19-0076: Illinois and Texas added to CMS Interest-Only ARM Program

September 23, 2019

Overview

Carrington Mortgage Services, LLC (CMS) is pleased to announce the Carrington Flexible Advantage and Investor Advantage guidelines have been updated to add Illinois and Texas as approved states for the CMS Interest-only ARM program.
As a reminder, the CMS Interest-only product has the following features:

  • Terms Available: 5/1 ARM-IO, 7/1 ARM-IO, and 10/1 ARM-IO
  • Doc Types: Full Doc, 1-Year Alt Doc, 12 or 24 Month Bank Statements
  • 5/1 Caps = 2/2/5 (Initial cap at 2%; Interim cap at 2%; Life cap at 5%)
  • 7/1 and 10/1 Caps = 5/2/5 (Initial cap at 5%; Interim cap at 2%; Life cap at 5%)
  • Margin = 3.50% (Flexible Advantage Plus), 5.00% (Flexible Advantage)
    and 6.00% (Investor Advantage)
  • Floor = Start Rate
  • Index = 1 Year LIBOR

Restrictions: Interest Only is not permitted in Massachusetts; North Dakota and West Virginia or for Texas Home Equity (50(a)(6)) or Texas Conversion (refinance of Texas 50(a)(6) loan to a Rate/Term loan) transactions.
As always, please refer to the CMS Underwriting Guidelines and Matrices for qualification parameters.

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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