Announcement 20-0044: Updated CMS Conventional Cash-out Refinance Overlay Requirement

July 6, 2020

Overview

As previously announced, Carrington Mortgage Services, LLC (CMS) reintroduced cash-out refinance transactions under the conventional loan program. To clarify, these transactions are subject to the following guideline overlay. This change is effective July 6, 2020.

Maximum Backend DTI 44%

The pricing engine has been updated to manage the overlay requirements beginning with the initial lock.

Please note that any changes after lock to the DTI parameters will be managed by lock monitoring and may require re-pricing if loan still qualifies. Refer to the CMS Correspondent Rate Guide for additional details and current conventional loan program cash-out requirements.

<h3Contacts

Please contact CorrespondentRM@carringtonms.com with any questions.

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Carrington Mortgage Services LLC
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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 - 2023 . 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