Announcement 19-0010: February 2019 Carrington Advantage Program Updates


Effective February 7, 2019, Carrington Mortgage Services, LLC (CMS) is pleased to announce the following guideline improvements for the Carrington Advantage products:

  • Higher LTV’s for CFA Investment cash-out loans
  • More lenient Non-Sufficient Funds (NSF) requirements on bank statement programs

Improved LTV’s for Investment Cash-out (CFA program only)

Improved the Investment Overlay LTV Reduction for Cash-Out refinance transactions by decreasing the LTV adjustment to 5% from 10%. This increases the maximum LTV by 5% for all investment cash-out loans using the Carrington Flexible Advantage program.


Improved Non-Sufficient Funds (NSF) Guidance – Bank Statement Programs

Current NSF guideline:
Up to 3 NSF checks in the most recent 12-month period are allowed with explanation from the borrower.

New NSF guideline:
NSF (non-sufficient funds) is a term used to indicate that a demand for payment can’t be honored due to insufficient funds available in the account. Overdraft protection transfers are not considered an NSF. Excessive NSFs will be highly scrutinized and may cause the loan to be deemed ineligible.

More than 3 NSF checks or overdrafts within the most recent 12 months require explanation, supporting documentation, and underwriter analysis for acceptability. Note: Overdraft Protection Transfers from a linked bank account or line of credit are not considered an NSF. Refer to the CMS Carrington Flexible Advantage Program Underwriting Guidelines available on for additional details.


Please contact with any questions.