Announcement 19-0004: Carrington Seller Guide Updates and Prepayment Fees


The Carrington Mortgage Services, LLC (CMS) Seller Guide has been revised to include the following requirements:

Section 6.1 Non-Delegated Responsibilities for FHA/VA Loans – has been revised to clarify the Principal-Authorized Agent relationship will utilize the FHA Lender ID for both the Correspondent as Originator and Carrington as Authorized Agent in FHA Connection.

In addition, Sponsored TPO requirements have been added to establish the relationship between CMS as the unconditional DE Approved Lender, and an FHA Approved Lender who has not yet begun or completed their test cases. These are retail originations by the FHA Approved Lender. Correspondent must assign the loan to CMS as a Sponsor when the case number is obtained. The Sponsored Originator relationship will use the Correspondent’s EIN as Sponsored Originator and Carrington’s FHA Lender ID as Sponsor in FHA Connection. Refer to the Seller Guide for additional details regarding roles and responsibilities.

Section 10.16 Home Mortgage Disclosure Act (HMDA) to clarify the Correspondent must provide a HMDA Universal Loan Identifier (ULI) and Lender Identity Identifier (LEI) at the time of submission acceptance.

Section 11.22 Impound/Escrow Accounts has been revised to add requirement that Correspondent must follow CMS aggregate escrow cushion guidelines and CMS property tax due dates. Refer to the Seller guide for CMS aggregate escrow requirements and the Resources page on for the Property Tax Payee Table.

Prepayment Fees

Beginning Thursday, January 17, 2019, CMS will permit prepayment penalties to be charged on Investor Advantage, Carrington Flexible Advantage and Carrington Flexible Advantage Plus non-owner-occupied, investment property loan transactions. Prepayment penalties may only be charged when permissible by State law and a Business Purpose Affidavit must be executed at closing if a prepayment penalty is charged.


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