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Announcement 2019-024: Smart Series Updates

Effective immediately NewRez’s Smart Series now has even more financing opportunities for your customers!

NewRez product enhancements include:

  • Updated areas of eligibility in SmartEdge, SmartSelf, SmartTrac and SmartVest
  • Updated underwriting guidelines in all six of our Smart Products
  • Added 95% financing (no MI) in SmartEdge
  • Added a 40-Year Fixed rate Interest-Only for most products

Below is a summary of some of the changes you can now take advantage of. Changes apply to all products unless noted otherwise.

 

Assets

  • Updated eligible assets to be amortized over 240 months for asset-based income, with the exclusion of SmartFunds and SmartVest
  • Updated requirements for use of business assets to permit use when less than 100% owner of partnership or corporation for SmartSelf

 

Income

  • Updated use of 1007 rent schedule is only needed for investment properties when rental income is used, with the exclusion of SmartVest which always requires.
  • Update to reflect tax transcripts may be used for signature requirements of tax returns, with the exclusion of SmartFunds, SmartSelf and SmartVest
  • Removed requirement for tax returns for borrowers with commission income based upon change in tax law, with the exclusion of SmartFunds, SmartSelf and SmartVest
  • Added use of restricted stock and stock options for qualifying income for SmartEdge
  • Added that one self-employed borrower must earn a majority of their income (51% or more) from their self-employment and utilize their self-employed income for qualification purposes for SmartSelf
  • Added that bank statements reflecting other individuals who are not applicants on the loan are not eligible for SmartSelf

Liabilities

  • Updated to reflect tax payment plans must be documented with six months of payments, with the exclusion of SmartFunds
  • Updated requirements for HELOC payments for qualification, with the exclusion of SmartVest

 

Loan/Borrower Eligibility

  • Minimum loan amount in Connecticut will now align with all other states at $100,000, or $150,000 for SmartCondo
  • Multiple Mortgages to Same Individual has been updated to $3,000,000
  • Added that ARM loans for first time homebuyers are ineligible in Massachusetts, with the exclusion of SmartVest which doesn’t allow first time homebuyers
  • Update allowable amount of financed properties to no more than twenty (20) for SmartVest

 

Property

  • Added properties with oil and gas leases as eligible with additional requirements
  • Updated to reflect detached condos and 2-4-unit condos no longer require project review, with the exclusion of SmartCondo
  • Updated to permit properties with agricultural zoning that meet certain requirements, with the exclusion of SmartCondo
  • Added leasehold properties as eligible with requirements, with the exclusion of SmartCondo

Please reference the Product Profiles page for full details of the changes outlined in this announcement.