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

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.