Overlay Removals – DU/LP Overlay Matrix Impacts
We're right here making it easier to do business by removing several overlays for Agency loans. From income documentation requirements to appraisals and assets, we continue to act on your feedback.
With credit scores > 700, lenders can:
- Follow AUS findings for self employment and commissioned income documentation
- Follow AUS findings regarding the number of tax returns required
- Follow Agency requirements for business tax returns and when they can be waived
- Removed certified Appraiser overlay - Chase allows for appraisal to be completed by a certified or state licensed Appraiser (see Online Guide for information regarding transactions greater than $1 million or properties considered complex)
- Removed requirement for a copy of the Appraiser's license to be included in the closed loan file
- Removed requirement for a Field Review on Agency High Balance with loan amounts > $625,500 and LTV > 80%
Community Savings and College Accounts are eligible asset types.
For rescindable transactions only, the CD must be signed and dated by all parties required execute based on ownership rights due to title vesting or ownership rights afforded under state law.
Aligned Chapter 13 Bankruptcy seasoning requirement with Agencies when Chapter 13 Bankruptcy was due to financial mismanagement (24 months after discharge date and 48 months from the dismissal date)
- Properties Listed for Sale on No Cash-out Refinance transactions has been aligned with Agency requirements to indicate that listing must be withdrawn or expired as of the Disbursement date (rather than Note date)
- Removed 30-day HOA delinquency limits and updated Co-op HOA delinquency guidelines to align with Agency requirements