03/27/2020
I hope you and your families are all well and adapting to the many changes COVID-19 has brought upon us.
I wanted to give you an update on how loanDepot is responding to these changes, and provide you with some insight into the changes we have seen in the industry during the past week. Here at loanDepot, 100% of our staff is working (mostly from home), and we continue to take applications, process, and close loans!
Our industry-leading technology has never been more important. Our use of digital income and asset verification dramatically reduces the documentation requirements, allowing us to move quickly from application to closing!
Below is a summary of some of the changes we have seen in the past few weeks:
Appraisals
loanDepot is utilizing the revised guidelines that Fannie Mae and Freddie Mac have implemented. This includes the usage of Desktop and Drive-by Appraisals for most transactions*
PIW (Property Inspection Waivers) – We have always utilized these. PIW parameters are expanding this weekend for Freddie Mac. We will be rechecking all files to see if we get a waiver for Appraisals on Monday. PIW means NO APPRAISAL REQUIRED!
Dual AUS- by utilizing both Fannie and Freddie, the chances for a PIW increase considerably (many companies use only Fannie Mae). We run all of our loans with both Agencies, then select the one which allows for a PIW, and requires the least documentation. This not only results in more PIW’s, but can substantially reduce the documentation needed from the borrower.
Desktop Appraisal & Drive By Appraisal --We have a dedicated Appraisal dept who will be ordering and allowing for such adjustments. We do NOT use an AMC so this will be easy & seamless. We will use these Appraisal methods where allowable in lieu of a Full Appraisal.
*FHA & Non Traditional Mortgages are still requiring Full Interior and Exterior Appraisals.
*Appraiser will use MLS and may have the home buyer assist by providing photos of the property
Verification Of Employment
We have a new and less stringent Verification of Employment Policy
The Buyer must be an Active employee but the requirements of how we verify allow more flexibility due to Covid-19
Settlements
Hybrid eSign – For all Conventional & FHA loans. 90% of the documents can be electronically signed 1-2 days before settlement. Clients wet / hand sign only a handful of documents. Ideal for Park & Sign.
I personally review ALL Closing docs ( eSign and Wet Sign) over the phone or WebEx with our clients
loanDepot is close to rolling out 100% Electronic REMOTE Settlement capabilities. Stay tuned!
Please feel free to reach out with any questions on the above changes. I am always available for pre-approvals and any questions that you have as move through these challenging times. Stay safe-
