Based upon an ongoing evaluation of our guidelines, New Penn Financial has updated Conventional guidelines to remove or modify current overlays, and add further guidance.
Changes are effective immediately for all pipeline and new registrations/locks.
The updates are as follows:
- Continuity of obligation requirements for Rate/Term Refinances have been removed for DU scored loans
- Non-occupant co-borrowers are no longer limited to family members
- Added additional options for income commencing after the Note date. Added FNMA Option 1, and FHLMC Option 2 as additional alternatives. This allows the borrower to start work after closing with the start date before the loan is delivered, with expanded guidelines. NPF will require the start date to be within 90 days of the Note date
- Tax transcript requirements have been updated to no longer require transcripts when borrower receives >25% commission. Additionally, guidance has been added for borrower provided transcripts
- Maximum NPF lender exposure of 25% has been removed for condominiums
- Extenuating circumstances for major derogatory credit is now permitted for DU scored loans only
- E-signatures are allowed for all documents except final closing documents (i.e. Note, Mortgage, final 1003)
- Escrow holdbacks now align with Agency guidelines
- Removed section 3.10 Multiple Mortgages to the Same Borrower as the following requirements no longer apply:
- New Penn exposure not to exceed $3M per individual loan or in aggregate with a maximum of four (4) financed properties
- Maximum of two (2) financed units in a single condo project or PUD
- Ineligible Borrowers has been updated to add borrowers with Deferred Action for Childhood (DACA) approval
- Ineligible Assets has been updated to include Cryptocurrency (i.e. Bitcoin)
- Ineligible Programs has been updated to add FNMA’s MH Advantage. While NPF is working toward supporting this, it is not currently offered at this time
Please reference the Product Matrices page for full details of the changes outlined in this announcement.