Announcement 2020-132 - Conventional Conforming and Government Guideline Updates

Conventional Conforming and Government Guideline Updates

 

Below are Conforming and Government Guideline updates that are effective immediately.

 

Conventional Conforming Agency Transactions

 

Self-Employed Borrowers

NewRez is removing the quarterly review of the profit and loss statement and the balance sheet overlay. A year-to-date profit and loss statement may be provided without a quarterly breakdown unless needed to support the stability of the business. Two (2) months bank statements are still required when the profit and loss statement is unaudited.

 

Conventional Conforming Agency and Government Transactions

 

IRS Form 4506-T for Self-Employed Borrowers

Effective immediately, for self-employed borrowers whose income is being used to qualify, IRS Form 4506-T for the business must be signed by the appropriate officer of the company prior to closing. See Policies and Procedures for the signature requirements and procedures.

 

Other Updates

  • Removed the verbiage from the Product Profile that stated Power of Attorney must be approved by Underwriting. The Power of Attorney must be approved by Legal.
  • Hybrid Appraisals are not permitted