Back to top

Lender Alerts

Home
Lender Alerts


Sun West Logo

Update to Conventional (FNMA and FHLMC) Loan Programs



Dear Valued Partner,

In accordance to FNMA Lender Letters LL-2020-03 & LL-2020-04 and FHLMC Bulletin 2020-5 offering temporary flexibilities to loan applications on or before May 17, 2020 amid COVID-19 national emergency, Sun West Mortgage Company, Inc. has updated its policy for conventional programs to align with the FNMA and FHLMC guide as given below:


  • Verbal Verification of Employment for Wage Earners (10-days pre-closing verification): Sun West will accept one of the following documentation in lieu of verbal verification:
    • Written Confirmation: An e-mail directly from the employer’s work e-mail address that identifies the name and title of the verifier and the Borrower’s name and current employment status, or
    • Paystub: Most recent year-to-date (YTD) paystub from the pay period that immediately precedes the Note Date, or
    • Bank Statement: Borrower’s bank statement evidencing the payroll deposit from the pay period that immediately precedes the Note Date.

  • Verbal Verification of Employment for Self Employed Borrower: As directed by Fannie/Freddie, Sun West will be completing additional due diligence for self employed borrowers regarding continuity of employment and income. Example of additional due diligence for a self-employed borrower would be verifying that borrower’s business is operational within 15 days from the Note date.

  • Temporary Appraisal Requirements Flexibility: Effective immediately, Sun West will be allowing temporary flexibility to appraisal inspection and reporting requirements. Sun West will allow either a desktop appraisal or an exterior-only inspection appraisal in lieu of the interior and exterior inspection appraisal (i.e. traditional appraisal) as long as there is sufficient information for the appraiser to complete the assignment. Refer below table which provides breakdown for which appraisal is acceptable.

Fannie Mae Loans:

Loan Purpose LTV Ratio Occupancy Ownership of loan being refinanced Permissible appraisals (in order of preference)
Purchase Per Eligibility Matrix Principal Residence NA Traditional Appraisal, Desktop Appraisal, Exterior only Appraisal
≤85% Second Home and Investment Traditional Appraisal, Desktop Appraisal, Exterior only Appraisal
>85% Second Home Traditional Appraisal
Limited Cash-Out Refinance Per Eligibility Matrix All Fannie Mae Owned Traditional Appraisal, Exterior only Appraisal
Not Fannie Mae Owned Traditional Appraisal
Cash-Out Refinance Fannie Mae or Not Fannie Mae Owned Traditional Appraisal

Freddie Mac Loans:

Loan Purpose LTV Ratio Occupancy Ownership of loan being refinanced Permissible appraisals (in order of preference)
Purchase Per Eligibility Matrix Principal Residence NA Traditional Appraisal, Desktop Appraisal, Exterior only Appraisal
≤85% Second Home and Investment Traditional Appraisal, Desktop Appraisal, Exterior only Appraisal
>85% Second Home Traditional Appraisal
Limited Cash-Out Refinance Per Eligibility Matrix All Freddie Mac Owned Traditional Appraisal, Exterior only Appraisal
Not Freddie Mac Owned Traditional Appraisal
Cash-Out Refinance Freddie Mac or Not Freddie Mac Owned Traditional Appraisal
  • On loans where mortgage insurance is required, Sun West will follow the above guidance as long as the same is acceptable to the mortgage insurance company. This flexibility is NOT applicable to Homestyle Renovation loans.

    Click here to verify whether the current loan being refinanced is owned by Fannie Mae.
    Click here to verify whether the current loan being refinanced is owned by Freddie Mac.

  • Completion Reports (1004D): For all loans for which a completion certification is not available due to issues related to COVID-19, with the exception of HomeStyle® Renovation and HomeStyle Energy loans, Sun West will permit a letter signed by the borrower confirming that the work was completed along with photographs of the completed work, paid invoices indicating completion or other substantially similar documentation.

  • Gap Endorsement: Sun West will accept GAP coverage endorsement on Title reports if the Title Company could not do date down research because of difficulties in accessing recorded information.

VA, FHA and USDA HAVE NOT ISSUED ANY POLICY CHANGES:

*Existing full interior/exterior appraisal requirements remain.
*Existing requirements for 10 day verbal verification of employment remain.

If you have any questions, please contact your Client Relations Manager at (855) AT-SUNWEST or (855) 287-8693.


Sincerely,

Sun West Mortgage Company, Inc.

6131 Orangethorpe Avenue, Suite 500
Buena Park, CA 90620
Phone: (800) 453-7884



SW-1: Our No Overlays Program

This information is provided to licensed mortgage professionals only and not for distribution to consumers. Please visit https://www.swmc.com/disclaimer.php or refer to www.nmlsconsumeraccess.org to see where Sun West Mortgage Company, Inc. (NMLS ID 3277) is a licensed lender and servicer. All Rights Reserved. We are not accepting applications from Georgia or Massachusetts residents. We are purchasing mortgages secured by Massachusetts properties but not Georgia. Sun West Mortgage Company, Inc. (NMLS ID 3277) holds a Financing Law License (#6030119) [Loans made or arranged pursuant to a California Financing Law license], licensed by the California Department of Business Oversight, Phone: (866) ASK-CORP and has a DRE Real Estate Corporation License Endorsement (#00793885), licensed by the California Department of Real Estate, Phone: (877) 373-4542.

Equal Housing Opportunity