PCF Wholesale COVID-19 Update

June 18, 2020

Suspended products

  • Non-QM is suspended
  •  Jumbo loans are suspended
  •  VA Cash out with an LTV greater than 90% is suspended regardless of FICO
  • No Odd terms allowed
  • Manufactured Homes

Guideline updates

  •  Conventional Mortgage Insurance is currently suspended on investment transactions.
  • Bank statements must be dated within 60 days of the note date – no exceptions.
  • Paystubs must be dated within 60 days of the note date – no exceptions.
  • Student loans that are currently in forbearance. There will be a 1% payment added to the liabilities on FNMA and a .50% on Freddie Mac
  • Tax transcripts are waived at this time, but the file will need the most recent P&L (2019 and/or 2020 YTD) along with all pages of the 1040’s (if possible try to have the borrower create an account online to obtain transcripts).
  • Mortgage Statements are required for all other properties listed on the 1003 to verify that payment(s) were made on time (cannot use credit report)
  • If using rental income to qualify, you must provide 2 months rental receipts.
  • No rental income can be used to qualify on departing properties.
  • SBA loan inquiries – Borrower to provide a LOE and state if a loan was taken or note. If funds were received, then the borrower cannot use the loan proceeds to qualify for closing costs. LOE must also notate if the business is in good standing.
  • Verbal VOE must be dated within 7 days of the note date but prior to funding.
  • All Streamline’s and IRRRL’s must have employment listed on the initial and final 1003. Employment must be verified to show sufficient income to cover the mortgage payment. If the borrower is retired or disabled, you must obtain documentation to support the payment of the mortgage.
  • COVID-19 Attestation form is required to be signed prior to funding.
  • If using an employer email, it must reflect all information listed on the COVID-19 PCF verbal VOE form.
  • GAP coverage is not accepted nor are Title Indemnification Letters. The County Recorder’s Office must be open at time of funding and/or can e-record & e-file.
  • No COVID-19 indemnification clauses allowed on prelims.
  • 660 FHA and VA min FICO.
  • 620 Conventional min FICO.

Eligibility for borrowers in forbearance:

  • Borrower in forbearance with no missed payments:
    • Eligible for new mortgage loan with no additional eligibility requirements.
  • Borrower in forbearance with missed payments resolved through a reinstatement:
    • Eligible for new mortgage loan with no additional eligibility requirements.
    • Reinstatement after the application date: Document source of funds in accordance with Agency selling requirements. Proceeds from refinance may not be used to reinstate any mortgage loan.
  • Borrower in forbearance with missed payments resolved through a loss mitigation solution:
    • The Seller must verify that the borrower has made at least three timely payments in accordance with the requirements in the Agency announcement.

Have questions? Contact your AE or have an AE contact you: Marketing@pcfwholesale.com

Thank you!

We received your scenario. Our current response time is 2 to 6 hours, and may carry over to the next business day depending on the time submitted.

For more immediate answers, please contact your AE.