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Announcement 2019-093: Smart Series Product Updates

The below Smart Series Product updates are effective immediately.

smart series product updates

The below are effective immediately. The first section applies to all Smart products unless noted and is followed by product specific requirements.

 

updates applicable to all products

The following changes have been made to SmartEdge, SmartSelf, SmartTrac, SmartVest, SmartCondo and SmartFunds, as applicable.

derogatory credit

  • Property taxes that have been reduced to a lien against the property are no longer considered a foreclosure for purposes of derogatory credit seasoning. A letter of explanation is required from the borrower

 

gift funds (not permitted with smartvest and smartfunds)

  • Added fiance as an acceptable donor

 

non-permanent resident aliens (not permitted with smartvest and smartfunds)

  • Added additional eligible visa types and updated remaining visa term to 12 months from note date

 

Unreimbured business expenses (ube) (not applicable to Smartvest and smartfunds)

  • Updated due to 2018 tax law change. Must still consider UBE for 2017, if applicable

 

Vesting 

  • Now allows title vesting in an LLC for all Investor products

 

smartedge updates

Eligibility matrix

  • Updated for primary purchase or rate and term refinances:
    • Added a $3,000,000 loan amount level at 80% LTV with 720 FICO
    • Increased LTV to 75% for $3,000,000 loan amount with 680 FICO

 

interested party contributions (IPC)

  • Added requirements for 3% maximum IPC for >90.01%

 

Smartself updated

eligibility matrix

  • Increased LTV 65% for primary purchase or rate and term refinance with 680 FICO and $3,000,000 loan amount

 

income update

  • Added the ability, when tax returns are provided, to use bank statements in place of tax returns with additional requirements.

 

smartvest updates

prepayment penalty

  • Added that in Pennsylvania, pre-payment penalties are not permitted on 1- or 2-unit properties with a loan amount less than $300,000

 

Please reference the product profiles in the NewRez Lending Library for full details.