Standard Operating Procedure
Effective Date: 7/2/2018
Properly Handling Renovation Loans
TABLE OF CONTENTS
OVERVIEW ............................................................................................................................................................. 3
RESPONSIBILITIES .................................................................................................................................................. 3
DEFINITIONS .......................................................................................................................................................... 3
BACKGROUND ....................................................................................................................................................... 4
SPECIFIC PROCEDURE ............................................................................................................................................. 4
ENCOMPASS SETUP AND TRAINING .................................................................................................................................... 4 CCM RENOVATION/CONSTRUCTION TEAM CONTACT INFORMATION ....................................................................................... 5 INITIATING THE LOAN/MANDATORY FORM COMPLETION ....................................................................................................... 5
Form Completion Best Practices ............................................................................................................................ 5 Form Completion ................................................................................................................................................... 9
SECONDARY MARKETING (LOCK DESK) ............................................................................................................................... 9 UNDERWRITING OVERLAYS ............................................................................................................................................. 10 CONFLICT OF INTEREST .................................................................................................................................................. 11 FASTTRACK CREDIT APPROVAL ........................................................................................................................................ 11 LOAN PRODUCT SETUP .................................................................................................................................................. 11
Useful Reference Materials .................................................................................................................................. 11 Checking (Selecting) the 203(K) Checkbox and Reno Indicator ............................................................................ 11 Non-Required Forms ............................................................................................................................................ 13
QUALITY CONTROL (QC) ................................................................................................................................................ 13 ORDERING THE APPRAISAL ............................................................................................................................................. 13 MAXIMUM MORTGAGE WORKSHEET (MMW) .................................................................................................................. 14 ALLOWABLE/REQUIRED RENOVATION FEES ....................................................................................................................... 14 CONTINGENCY RESERVES................................................................................................................................................ 15 FINANCEABLE MORTGAGE PAYMENT RESERVES .................................................................................................................. 16 ADDITIONAL DOCUMENTATION REQUIREMENTS ................................................................................................................. 16 CONTRACTOR VALIDATION PROCESS ................................................................................................................................. 17
Contractor/Builder Requirements ........................................................................................................................ 18 Owner/Contractors .............................................................................................................................................. 19 Contractor Re-Validation for a New Project ........................................................................................................ 19 Contractor Replacement Requirements ............................................................................................................... 19
CONTRACTOR REJECTED ................................................................................................................................................. 20 PROJECT REVIEW AND APPROVAL REQUIREMENTS .............................................................................................................. 20 CLOSING ..................................................................................................................................................................... 21 GOVERNMENT INSURING ................................................................................................................................................ 22 ACCOUNT SETUP .......................................................................................................................................................... 23 POST-CLOSE ADMINISTRATIVE SETUP AND COMMENCEMENT OF CONSTRUCTION ..................................................................... 23
Making Changes to Borrower Information .......................................................................................................... 23 Commencement of Construction ......................................................................................................................... 23 Customer Service ................................................................................................................................................. 24 Completion of Construction/Extension Information ............................................................................................ 24
DRAW PROCESSING AND FUNDS DISBURSEMENT OVERVIEW ................................................................................................. 25 Permissible Amount of Renovation Draws ........................................................................................................... 25 Draw Holdback .................................................................................................................................................... 25 Draw Processing and Funding ............................................................................................................................. 25
DETAILED DRAW REQUIREMENTS .................................................................................................................................... 26 Draw Disbursement Request/Authorization ........................................................................................................ 26
Properly Handling Renovation Loans
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Contingency/Change Orders ................................................................................................................................ 26 Lien Release Policy ............................................................................................................................................... 27 Title Update Policy ............................................................................................................................................... 27 Suspension of Construction .................................................................................................................................. 27
ESCROW CLOSEOUT/RECOURSE REMOVAL ........................................................................................................................ 28 SERVICING ................................................................................................................................................................... 28 LOAN DELIVERY ............................................................................................................................................................ 29
CONCLUSION ....................................................................................................................................................... 29
REFERENCES ......................................................................................................................................................... 30
INTERNAL REFERENCES .................................................................................................................................................. 30 EXTERNAL REFERENCES .................................................................................................................................................. 30
REVISION HISTORY ............................................................................................................................................... 31
Properly Handling Renovation Loans
Effective Date: 7/2/2018
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OVERVIEW
The renovation loan products offered by CrossCountry Mortgage, Inc. (CCM), which include
HomeStyle® Renovation; 203K Standard; 203K Limited; and U.S. Department of Veterans
Affairs (VA) Rehab, as described within this standard operating procedure (SOP), offer a
convenient and economical means for borrowers considering home improvements for
repairs and renovations. This pertains to a single-close first mortage, rather than a second
mortgage, home equity line of credit (HELOC) or any other more costly method of financing.
CCM renovation loan products entail a single-close loan that enables a borrower to purchase
a home in need of repairs or refinance the mortgage on his or her existing home and include
the necessary funds for renovation in the loan balance.
The loan amount is based on the “as-completed” value of the home rather than the present
value.
All loans must adhere to the standard credit requirements as agency guidelines, and CCM
overlays must be followed (as listed within the Underwriting Overlays section of this SOP). If
an exception is necessary, it must go through the exception request process (see the CCM
Overlays & Exception Process document for further detail – link in the Internal References
section at the end of this SOP).
RESPONSIBILITIES
The content included in this SOP describes the roles and responsibilities of various CCM
employees regarding working renovation loans.
DEFINITIONS
Term Definition Conflict of Interest Any party to the transaction having a direct or indirect
personal, business or financial relationship sufficient to appear that may cause partiality and influence the transaction.
Contractor Acceptance Form A form documenting the review (or validation) of the contractor and reflects that contractor acceptance has been granted.
Home Equity Line of Credit (HELOC) A mortgage loan, usually in a subordinate position, which allows the borrower to obtain cash advances at his or her
discretion, up to an approved amount that represents a specified percentage of the borrower’s equity in a property.
Indemnification and Hold Harmless
Agreement
Agreement between two parties that establishes that the
indemnitee is protected from any liabilities that are unforeseen, as well as losses, claims and damages during involvement in an activity.
Mortgage Payment Reserve Additional funds on hold with the lender to cover a set amount of monthly mortgage payments.
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Term Definition Project Validation Form A form providing a breakdown of amounts to pay out at
closing or to be held by the lender specific to the renovation project.
Recourse The obligation of the lender to cover losses the buyer incurs as a result of a default on the note. Under a whole loan transaction, a lender selling a mortgage to Fannie Mae under the “with recourse” servicing option assumes the entire risk of borrower default, while a lender selling a
mortgage under the “without recourse” servicing option transfers the risk of borrower default to Fannie Mae.
Security Instrument The instrument (mortgage, deed of trust and deed to secure debt) creating a valid lien on real estate.
Upfront Mortgage Insurance Premium
(UFMIP)
Specific to FHA loans, a borrower is required to either
finance or pay in cash the upfront mortgage insurance premium (UFMIP), which is payable to the Department of
Housing and Urban Development (HUD). These funds are used to protect the government should the borrower default on his or her FHA loan.
WebLGY An online system (portal) established by the VA for lenders to order and review appraisals, issue notices of value (NOVs), submit documents to the VA, insure loans (obtain VA Loan Guaranty) and obtain certificates of eligibility (COEs). Login credentials are obtained by contacting CCM IT Support via Salesforce.
BACKGROUND
In an effort to provide a more productive and streamlined approach to handling renovation
loans at CCM, a centralized Renovation Sales team was created. Benefits of forming this
centralized Renovation Sales team include specialized attention to all CCM renovation loans,
as well as borrower/client and realtor(s) relationships. Additionally, real-time, accurate
information is continuously being pushed out to all parties involved.
SPECIFIC PROCEDURE
ENCOMPASS SETUP AND TRAINING
When handling renovation loans, various CCM employees need access to certain screens
and fields within Encompass. Specific Encompass program setup is completed by a CCM
Renovation Sales team member and processor. See below for items in which the Renovation
Sales team member and processor set up/select:
• Program Name – select the appropriate program with the renovation program listed
• Closing Cost Template – select the closing cost template based on FHA, VA, USDA or
Conventional. There are no separate templates for the renovation programs
For greater, in-depth Encompass setup and process steps, review the Encompass Screens
Renovation Loans Input – Product Selection job aid, available on Salesforce Chatter and
only accessible by the Renovation team members.
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CCM RENOVATION/CONSTRUCTION TEAM CONTACT INFORMATION
Please see link titled “Renovation Department Contact Listing (on Salesforce)” within the
Internal References section at the end of this SOP for a complete contact listing of CCM
Renovation/Construction team members, as well as contact email and mail addresses.
INITIATING THE LOAN/MANDATORY FORM COMPLETION
When a borrower requests pre-approval for a renovation loan or wishes to take the
application as a renovation loan, the CCM branch member completes all sections of the
Renovation Department Submission Form, except for the bottom portion (which states For
Renovation Manager Use Only). See screenshot below.
Note: This mandatory form is completed for all renovation loans (HomeStyle Renovation;
203K Standard; 203K Limited; and VA Rehab). It is also completed when a loan file needs
changed to a renovation product.
From here, the Renovation Sales manager assigns the loan file (as per property location) to
a Renovation Sales team member. The assigned Renovation Sales team member keeps the
originating LO/branch member up to date on the loan file progress.
FORM COMPLETION BEST PRACTICES
When completing the Renovation Department Submission Form, the CCM branch member
follows these best practices:
Properly Handling Renovation Loans
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1. Provide the best borrower contact information by completing (in full) the following
fields:
• Borrower:
• Borrower Email:
• Borrower Home:
• Cell:
2. Complete the Notes: section. Include anything that the Renovation team should
know (i.e., for a HomeStyle Renovation, 203K Standard or 203K Limited loan, list
what the borrower is looking to complete with the renovation, etc.).
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3. Complete the following fields with the proper information:
• Referring Originator:
• Date:
• Phone:
• Email:
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4. Select one of the applicable checkboxes:
• Borrower(s) ready for contact
• Contact referring originator prior to contacting borrower
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Once selected, the Renovation Sales manager gains access to the loan.
FORM COMPLETION
The steps below describe which CCM employee performs which action to complete the form:
1. An originating branch member completes the income, assets and credit information
within Encompass.
2. The Renovation Sales loan officer completes the rest of the loan file by reviewing it
and structuring it according to the type of renovation and costs associated.
3. The originating branch member then informs the borrower/client that the CCM
Renovation Sales loan officer will be contacting him or her.
SECONDARY MARKETING (LOCK DESK)
A CCM Secondary Marketing department (Lock Desk) member prices and locks renovation
loans via Optimal Blue (just the same as any standard loan).
When the file is locked (in Optimal Blue), the employee submitting for the rate lock (usually
the Renovation Sales loan officer) adjusts the sales price (in Optimal Blue) to equal the total
of lines a. and b. of the Details of Transaction section of the 1003 Page 3 within Encompass
(see screenshot below).
Properly Handling Renovation Loans
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Note: Optimal Blue might push back the incorrect value or sales price to Encompass. If this
occurs, the Renovation Sales loan officer and/or Renovation processor will have verified the
accurate information and updates Encompass to reflect the correct value or sales price, prior
to disclosing, re-disclosing and/or closing the loan. The Renovation processor verifies the
system is accurate prior to submitting to the Underwriting department.
Note: Renovation loans are sold directly to the agency, as CCM does not sell to investors.
UNDERWRITING OVERLAYS
All loans must adhere to the standard credit requirements as outlined in the
specific agency guidelines. CCM utilizes the following overlays on renovation loan
products. If exceptions are necessary, the exception request process must be followed (see
the CCM Overlays & Exception Process document for further detail – link in the Internal
References section at the end of this SOP. Also see the CrossCountry Mortgage, Inc. VA
Rehabilitation/Renovation Loan Product Description/Underwriting Guidelines document – link
in the Internal References section at the end of this SOP).
• Minimum total loan amount with renovation amount included is $100,000
• No manual underwrites are permitted
• No “Do it Yourself” or “Self Help” is permitted (i.e., the borrower cannot do work
himself or herself; all work, including labor and materials, must be included in the
renovation bids)
• No more than three contractors per loan are permitted (general contractor and
two specialty contractors)
• Down-payment assistance (DPA) programs are not permitted with this program
• Mortgage Credit Certificate (MCC) programs are not permitted with this program
• There is a minimum of 10 percent contingency on all loans
• No co-op property types are permitted
• No manufactured home property types are permitted
• No conflict of interest is permitted
• A borrower must have a minimum credit score of 620
• The maximum debt-to-income (DTI) ratio is 55 percent
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CONFLICT OF INTEREST
Conflict of interest refers to any party to a transaction who has a direct or indirect personal,
business or financial relationship sufficient to appear that may cause partiality and influence
the transaction. No conflict of interest is permitted to prevent one party from persuading
another party.
The borrower may not have a relationship with the realtor, contractor or seller, and may not
own or be employed by the contractor. The same applies to all parties of the transaction.
FASTTRACK CREDIT APPROVAL
FastTrack credit approval is permitted if an applicant knows he or she wants to purchase a
home to rehab. Encompass must be set up correctly so that the underwriter can apply the
correct overlays. The rehab amount is based on the applicant’s estimate. Please follow the
standard process for completing the Renovation Department Submission Form within
Encompass.
LOAN PRODUCT SETUP
USEFUL REFERENCE MATERIALS
A Renovation Sales team member sets up the loan file according to the information located
in the following reference materials, all available via Chatter but only accessible by
Renovation team members:
• Contractor Profile Report (also available in Encompass)
• Encompass Screens for FHA 203(K) Loan Input – Additional Screens
• Encompass Screens for HomeStyle Renovation Input
• Encompass Screens Renovation Loans Input – Fees/Itemization/DOT
• Encompass Screens Renovation Loans Input – Product Selection job aid
• Maximum Mortgage Worksheet (MMW)
• MI Job Aid for Renovation Loans
CHECKING (SELECTING) THE 203(K) CHECKBOX AND RENO INDICATOR
The 203(K) checkbox must be checked for all 203K renovation loans in order to promote
proper reporting and assignment. This checkbox is found on two different screens within
Encompass – the HUD-92900LT FHA Loan Transmittal screen (Mortgage Information
section) and the FHA Management screen. See screenshots below for both location
references.
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Additionally, the Reno Indicator: checkbox must be checked for all renovation loans to
promote proper reporting and assignment.
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NON-REQUIRED FORMS
203K loans do not require the following two forms to be completed:
• HUD 92800-5b (Conditional Commitment of Appraised Value)
• HUD 92300 (Mortgagee Assurance of Completion)
QUALITY CONTROL (QC)
The CCM Quality Control (QC) program provides for reviews of the following:
• Handling of rehabilitation escrow and disbursements
• Rehabilitation Loan Agreements
• Scope of repairs
• Timeliness of repair(s) completion
• Borrower complaints about quality
Also, CCM should conduct physical inspections on sampling of renovation loans.
In addition, the CCM QC Program clearly defines standards for the general contractor’s
performance. These standards must be provided to each contractor in which CCM relies on
in the renovation programs.
CCM evaluates and documents the performance of these general contractors on at least an
annual basis, to include a review of the general contractor’s actual work product. CCM does
not utilize the services of a general contractor who has demonstrated previous inferior
performance. Fraud or malfeasance is to be documented and reported to the individual
agency.
ORDERING THE APPRAISAL
The CCM Renovation processor orders an appraisal from one of the following dedicated
appraisal management companies (AMCs) for CCM renovation loans (note that Dwellworks
is CCM’s dedicated AMC, and the other two listed below are optional and permitted for
certain branches or reasons):
• AMC Settlement Services
• Collateral Management
• Dwellworks
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Note: VA appraisals are only ordered via WebLGY.
The following items are uploaded to Mercury, the online ordering system for appraisals
(accessible via Encompass), for the appraiser’s review:
• Purchase agreement (indicating the loan is being handled as a renovation loan –
specific language is required)
• Construction/renovation bid
• Plans and specifications (specs), along with architectural drawings (as applicable)
• Contact information for the appraiser to access the property
• Credit card authorization or authorization from a manager to invoice
Note: A best practice is to order the appraisal once the bids are final.
MAXIMUM MORTGAGE WORKSHEET (MMW)
The Renovation Sales team member completes the applicable product Maximum Mortgage
Worksheet (MMW) to determine the maximum (max) loan amount.
Note: Currently, the MMW is available on Salesforce Chatter and is only accessible by
Renovation team members.
The renovation cost includes the following:
• Rehab cost
• Contingency reserve
• Title update fee
• Inspection fees
• Permit(s) cost
• Others
These are entered on the MMW. Refer to the MMW for allowable amounts.
Even if items are paid outside of closing, they need to be considered when calculating the
max mortgage amount. Seller- or lender-paid fees are not allowed to be calculated into the
max loan amount.
ALLOWABLE/REQUIRED RENOVATION FEES
The following table lists and describes CCM-allowable/required renovation fees:
Fee Description Title Update This fee is charged by the title company. A title update is necessary for each draw
to verify no mechanics’ liens or any liens were placed on the title between the CCM closing date and the date of final disbursement. The CCM Renovation processor
obtains a quote for the cost from the title company. This is a post-closing charge and will be reflected on the LE and CD. Note: This is part of the MMW calculator when calculating the max mortgage
amount.
Inspection This fee is charged by the appraisal company or consultant if one is used. It is for the inspections to verify all repairs are completed per the bids and that the
property meets minimum property requirements. The CCM Renovation processor obtains the “fee sheet” from the AMC or consultant. Note: This is part of the MMW calculator when calculating the max mortgage amount.
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Fee Description Consultant When a Renovation consultant is utilized, he or she sends a work writeup with a
future inspection fee listed (held in escrow). He or she then provides a paid-in-full receipt for the writeup/initial inspection. This fee gets listed on the LE but will be
marked paid outside of closing (POC) on the CD. A consultant can be found by searching the online HUD site – https://entp.hud.gov/idapp/html/f17cnsltdata.cfm. Note: This is part of the MMW calculator when calculating the max mortgage amount.
Architect/Engineer When an architect/engineer is used, he or she provides an invoice or a paid-in-full receipt. If the cost is estimated and full plans are pending, this fee may be
estimated and held until an invoice is provided after closing. This fee is listed on the LE/CD and is marked POC on the CD if paid in advance. Note: This is part of the MMW calculator when calculating the max mortgage amount.
Permit This fee is charged by the county/city/governing entity for the contractor to begin
repairs and is payable to the contractor and borrower. The contractor lists the cost on the bid for the permit and who is responsible for payment. A permit disclosure may be used to provide the lender with the required information. If the costs are estimated, the funds may be held until requested by the contractor after closing. Note: This is part of the MMW calculator when calculating the max mortgage amount.
Supplemental Loan Origination
This fee is charged to the borrower and disclosed on the LE and CD as a lender charge. This fee (from the lender) accounts for the draw administration of the loan proceeds during renovation. The charge is different based on loan type:
• 203K loans – minimum is $350 and the maximum is $2,000; the calculation is included on the MMW
• HomeStyle Renovation loans – minimum is $500 and the maximum is $1,500; the calculation is included on the MMW
• VA Rehab loans – minimum is $500 and the maximum is $2,000; the calculation is included on the MMW
Note: This is part of the MMW calculator when calculating the max mortgage amount.
Two-Trip Survey This survey is required when there is any extension to be built onto the house that will exceed the original footprint. A two-trip survey occurs when one is done at
closing to verify the current footprint and no work is started; and then a second trip is completed after the foundation or footprint changes have occurred (this is typically done at first draw when the foundation is complete for the addition). The Renovation processor confirms with the title insuring agent for local requirements.
If fees are not disclosed correctly or are changed, there could be a cost to cure if not
completed as a proper change in circumstance. Any time the fees listed in the table above
change, the MMW needs updated, the max mortgage may change, and the need for re-
disclosure of fees may occur. Additionally, some fees are permissible, while others are not
(based on program type). Refer to the MMW as applicable to the product/program.
CONTINGENCY RESERVES
Contingency reserves refer to funds that are set aside to cover unforeseen project costs.
Please see the following concerning contingency reserves:
• 10 percent is the minimum required contingency on all renovation loans
• FHA 203K loans require a minimum of 15 percent contingency when utilities are
not on and not verified as functional
• May apply up to 15 percent contingency based on project review for HomeStyle
and VA Rehab loans
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• May apply up to 20 percent contingency based on project review for 203K loans
• Contingency may be financed or non-financed (paid by borrower)
FINANCEABLE MORTGAGE PAYMENT RESERVES
A mortgage payment reserve refers to an amount set aside to make mortgage payments
when the property cannot be occupied during rehabilitation. A mortgagee may establish a
financeable mortgage payment reserve, so as to not exceed six months of mortgage
payments.
The mortgage payment reserve may include mortgage payments only for the period during
which the property cannot be occupied. To document the time the property will be
uninhabitable, the consultant and/or contractor provides the lender with a certification of
the property being uninhabitable and the estimated timeframe that it will remain as such.
The number of mortgage payments cannot exceed the completion timeframe required in the
Rehabilitation Loan Agreement, and never more than six months.
For multi-unit properties, if one or more units are occupied, the mortgage payment reserve
may only include the portion of the mortgage payment attributable to the units that cannot
be occupied. To calculate the amount that can be included in the mortgage payment
reserve, the mortgagee divides the monthly mortgage payment by the number of units in
the property and multiplies that figure by the number of units that cannot be occupied. The
resulting figure is the amount of the mortgage payment that will be paid through the
mortgage payment reserve. The borrower is responsible for paying the servicing mortgagee
the portion of the mortgage not covered by the mortgage payment reserve.
The Renovation specialist monitors all loans with mortgage payment reserves and requests
a draw to make the payment each month. Upon verification that the property can be
occupied, the remainder of the funds held are done so until completion and are to be used
to reduce the principal of the loan. The Renovation specialist notifies the borrower when
funds run out or if funds may no longer be used for payments.
The borrower is required to sign the Renovation Mortgage Payment Reserve Disclosure,
located within Encompass, which authorizes the establishment of the additional financed
escrow.
Note: This is only permitted on Fannie Mae HomeStyle Renovation and 203K Standard loan
programs.
ADDITIONAL DOCUMENTATION REQUIREMENTS
In addition to the standard disclosure package, the disclosures listed in the following table
are sent out on a renovation loan at various stages of the process. Also listed is when the
closure is provided, as well as any additional instructions.
Disclosure When Provided/Additional Instructions Welcome Letter for Borrower Initial disclosure package
Fannie Mae HomeStyle Renovation Consumer Tips (Form 1204)
Initial disclosure package (HomeStyle Renovation Loan Program only; borrower and loan officer must sign and
date)
203K Borrower’s Acknowledgement – HUD 92700A
Initial disclosure package (203K Loan Program only; borrower and loan officer must sign and date)
Renovation Loan Borrower Disclosure Initial disclosure package (borrower to sign and date)
Mortgage Payment Disclosure Once financed mortgage payments are determined, included in the hold (borrower and loan officer to sign and date)
Consultant Identity of Interest/Conflict of Interest Certification
Once consultant is assigned (consultant to complete, sign and date)
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Disclosure When Provided/Additional Instructions W-9 for Consultant Once consultant is assigned (consultant to complete, sign
and date)
Welcome Letter to the Contractor Once contractor is selected
Contractor Conflict of Interest Certification (FHA Only)
Once contractor is selected (contractor to complete, sign and date) for 203K loans only
Contractor Acknowledgement Once contractor is selected (contractor to complete, sign
and date)
W-9 for Contractor Once contractor is selected (contractor to complete, sign and date)
Contractor Profile Report Once contractor is selected (contractor to complete, sign
and date)
Important Notice Regarding Contingency Funds
Once contractor is selected (contractor and borrower to sign and date)
Attestation Letter Once contractor is selected (contractor to complete, sign and date)
Permit Disclosure Once contractor is selected (contractor and borrower to complete, sign and date)
Homeowner/Contractor Agreement Once appraisal, contractor and bids are “acceptable” (contractor and borrower to complete, sign and date)
Rehabilitation Loan Agreement At or prior to closing (to be signed by borrower, contractor and lender) Note: All final numbers must be established to print form
Renovation Loan Rider At closing (signed by borrower and recorded with the security instrument)
Draw Request Form Once repairs are completed or for progress draws (post-closing)
Contingency Release Letter At time of final draw for 203K loans (post-closing)
Completion Certification/Mortgagor’s Letter of Completion
At time of final draw (post-closing)
Final Release Notice At time of final draw (post-closing)
HUD Form 9548-G “Property Disposition Program – 203K Rehabilitation
Financing Lead Agreement” (if applicable)
HUD REO properties (required prior to docs if applicable)
Hold Harmless Agreement (if required and exception approved by management)
If contractor does not meet CCM qualification and management grants an exception to use a specific contractor
CONTRACTOR VALIDATION PROCESS
The plans and specifications of the renovation project must be prepared by a registered,
licensed or certified general contractor, renovation consultant (i.e., registered 203K
consultant) or architect. Due to the complex nature of these loans, CCM only allows one
general contractor, renovation consultant or architect.
Note: CCM may allow up to one general contractor and two specialty contractors.
A borrower must choose his or her own general contractor to perform the necessary
renovations, subject to the lender’s determination that the contractor:
• Is qualified and experienced
• Has all appropriate credentials required by the state
• Is financially able to perform the duties necessary to complete the renovation
work in a timely manner
• Agrees to indemnify the borrower for all property losses or damage caused by its
employees or sub-contractors
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The lender may not choose the contractor or refer the borrower to any one specific
contractor.
Note: The Contractor Profile Report (located within Encompass and on Salesforce Chatter,
only accessible to the Renovation Sales team) will be reviewed and accepted prior to
closing. The general contractor, renovation consultant or architect must provide the
following for review:
• The Contractor Profile Report (as mentioned in the above note) – must be
completed and signed by the general contractor and submitted to
[email protected] at the time of the loan application
• W9 Form – completed and signed
• Licensing and certifications – current contractor license information and, if state
license is not online, a copy of the current general contractor’s license, including
the expiration date and a satisfactory clearance from the appropriate licensing
authority (if required)
Note: If a contractor is in a local area that does not require licensing, the
homeowner, sub-contractor or supplier references must be checked. In addition,
any certifications the contractor has acquired should be provided.
• Special licensing requirement for lead-based paint – an automatic correction is
required to all defective paint surfaces in or on structures and/or property
improvements built before Jan. 1, 1978. Contractors performing the repair must
be certified and follow specific work practices to prevent lead contamination. A
copy of the EPA or state-lead training certificate in the name of the party who
performed the work must be provided
• Insurance – General Liability Certificate for at least $500,000; the coverage must
cover the loan amount
• Insurance – Worker’s Compensation insurance: evidence of Worker’s
Compensation insurance if the contractor has employees. If there are no
employees, a Certificate of Exemption (depending on state) or a letter from the
contractor stating he or she has no employees is required
CONTRACTOR/BUILDER REQUIREMENTS
The qualifications of the renovation contractor are evaluated to determine if he or she has
the requisite experience to perform and complete the proposed renovation work, as well as
the credit worthiness to pay his or her obligations and deliver the home free of mechanics’
or materialmans’ liens. The contractor information is gathered through a completed
Contractor Profile Report. The contractor’s determination of qualification is evidenced by a
completed Contractor Acceptance Form.
If the contractor is a recognized national or regional home improvement retailer providing
installation services (i.e., Home Depot, Lowes, Sears, 84 Lumber, Orchard Supply &
Hardware, etc.), no validation process is required. However, funding and documentation is
reviewed as follows:
• The store contract is used in lieu of a Homeowner/Contractor Agreement Form
• No draw at close is permitted on the amount pertaining to these contractors;
funding is a reimbursement draw for the amount evidenced in paid receipts and
work completed, and is reimbursed directly to the borrower
• The borrower is informed up front of the difference in procedures when using
these types of contractors, and is explained that the borrower is required to pay
any up-front costs required by retailers and/or their installers
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• No contractor questionnaire is necessary unless required by secondary market
investors
The completed Contractor Profile Report and accompanying support garners the following
information:
Experience
• Number of years in the home renovation/construction business. Contractors
should have a minimum of two years in the business
• Required license or registration of the certificate per city, county or state level. If
unable to obtain this or if it was revoked, the contractor may be “rejected”
• Certificate of Good Standing is obtained from the state in which the contractor is
located
Credit
• A Better Business Bureau (BBB) review is obtained, and Internet searches (i.e.,
Angie’s List, Porch and BuildZoom) are conducted to determine any “red flags”
• A Lexis Nexis business report is pulled to determine creditworthiness. In the
event there are unresolved liens or judgements, the contractor is declined
OWNER/CONTRACTORS
The CCM renovation loan program does not allow “self-help;” meaning, the borrower cannot
perform repairs himself or herself (see overlays).
The program also does not permit any relationship between the borrower and the contractor
(see overlays).
CONTRACTOR RE-VALIDATION FOR A NEW PROJECT
Contractor re-validation is performed when he or she is selected (resubmitted) by a
borrower for a new project.
In addition, at any point during the rehabilitation process, if information is obtained that
indicates the viability of the project could be compromised by the contractor, a contractor
re-validation may be performed.
The following criterion applies, but is not limited to:
• A written request of re-validation, indicating the reason for the re-validation
• An updated Contractor Profile Report is not required unless information that
causes concern has been obtained, or the report is more than one year old
• No references are checked unless information that causes concern is obtained
• Liability and worker’s compensation insurance is current and in place
• The contractor's license is current (and any specialty license)
CONTRACTOR REPLACEMENT REQUIREMENTS
In the event a contractor needs replaced, the following is required:
• A written letter from the borrower requesting that the existing contractor be
replaced, including the reason(s) for the replacement and a list of all known
recorded or pending liens
• A letter of termination from the borrower to the existing contractor
• A fully executed state-specific Indemnification and Hold Harmless Agreement
from the borrower(s)
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• A fully completed Contractor Profile Report with all required attachments from the
new general contractor
• A copy of his or her license as required
• A fully executed renovation contract from the new general contractor to complete
the project, and verification that the remaining funds are sufficient to complete
the project. The contractor is required to be compliant with the requirements
• An inspection to determine work which is completed and work that still needs
done. The borrower is responsible for the inspection fee
• A new plan and specs from the new general contractor matching the amount left
on the loan. If the new work plan is greater than the amount left on the loan,
arrangements or other alternative steps must be made for the borrower’s equity
contribution to be added to the escrow account. Such funds are provided to the
lender for deposit into the escrow account
Note: It is possible for these additional funds to come from the existing
contingency account as long as the contingency funds are still adequate to meet
the requirements of its purpose.
• A final lien waiver executed by the original contractor
• A current title update/bringdown
• All other contractor validation requirements apply
CONTRACTOR REJECTED
If a contractor is rejected, a Renovation Sales team member informs him or her that he or
she does not meet CCM requirements. No “rebut” process occurs.
PROJECT REVIEW AND APPROVAL REQUIREMENTS
The general contractor provides the bid and plans/specs which include, but are not limited
to, the following:
• It must be on the general contractor’s company letterhead (including name,
address and phone number)
• Borrower’s name(s)
• Subject property address (actual street address)
• Total cost of repairs, including a breakdown of labor and material with specs of
material and plans (if applicable)
• Permits and who is responsible to pay them (this may be placed on the Permit
Disclosure)
• The projected start and completion date
• The indicated timeframe and how many draws are necessary to complete the job
(so as to not exceed five draws)
• For specialty items such as electrical or plumbing, the contractor provides his or
her license if required by a governing authority, even if it is a sub-contractor
completing work
• If the floor plan is changing, the new floor layout and scope of work
• How mold issues are to be addressed (if applicable); governing authority
guidelines are followed
• A signed construction/rehabilitation agreement between the borrower and
general contractor once the terms are agreed upon
Once plans and specs are acceptable, the Renovation processor orders the appraisal by
submitting bids and the purchase agreement to the appraiser. Once the appraisal is back,
the CCM underwriter and Renovation processor review it ensure there are no additional
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repairs required by the appraiser. If such repairs are necessary, the Renovation processor
works with the contractor to get the bids revised and the branch will inform the borrower(s).
Once the bids and appraisal are acceptable, the Renovation manager and/or underwriter
completes the Project Validation Form and uploads it to the correct Encompass eFolder
(either FHA – 203K Contractor Acceptance or HomeStyle: Contactor Acceptance).
CLOSING
CCM closers follow the normal closing process for renovation loans, in addition to
verification of the following (within Encompass):
• The CD has the initial draw listed, payable to the contractor and borrower if
approved by the CCM underwriter
Important Note: At the time of closing, a two-party check is made out to
the borrower and contractor and mailed to the borrower if not given at
the time of signing.
• The MMW and underwriting conditions match the disbursement amounts on the
CD prior to closing. If they do not match, he or she contacts the CCM Renovation
processor and/or the underwriter
• The Renovation Loan Rider is signed and recorded with the security instrument
• Post-closing title update fees are held by CCM
• The balance of renovation funds; contingency funds; post-closing inspection fee;
and mortgage payment reserves are held in escrow by CCM. He or she confirms
this setup matches the underwriting conditions and MMW
• Additional renovation charges are either disbursed or held in escrow by CCM as
per the lender instructions (i.e., architectural/engineering fees and permits
[underwriting conditions])
• The mortgage insurance (MI) is accurate. He or she is to NOT click the Get MI
button, as it will not populate correct information on a renovation loan (see below
screenshot). Instead, refer to the MI Job Aid for Renovation Loans (currently
available on Salesforce Chatter and is only accessible by Renovation team
members) for accurate input and the underwriting conditions
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• The loan-to-value ratio (LTV) matches the CCM underwriter’s LTV on the
transmittal (Optimal Blue may push back incorrect information for the LTV and
sales price, which then requires underwriter correction prior to proceeding)
• Additional riders are signed at closing and are recorded if the subject is a two-to-
four-unit primary, investment or second home
Note: Record riders with the security instrument.
• The correct template is used for the Funding Worksheet; he or she adjusts this if
necessary to ensure items in escrow remain with CCM
GOVERNMENT INSURING
A CCM Insuring department member pays the upfront mortgage insurance premium
(UFMIP) on FHA loans within 10 business days of the loan closing and pays the VA funding
fee within three days of the loan closing. The same process for insuring FHA loans occurs
with renovation loans. For VA loans, an Insuring department member sets up a pipeline
view to monitor the progress of the file. Upon completion, the Renovation specialist enters
the completion date into Encompass, and then an Insuring department member insures the
VA renovation loans.
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ACCOUNT SETUP
A CCM Closing department member net funds the renovation hold, and then an Accounting
department member sets up the account.
When a renovation loan closes:
1. ALL escrow funds are initially deposited into an interest-bearing account.
2. Upon receipt of the Final Allocation Notice, the escrowed funds are transferred to the
appropriate agency custodial escrow account.
POST-CLOSE ADMINISTRATIVE SETUP AND COMMENCEMENT OF
CONSTRUCTION
MAKING CHANGES TO BORROWER INFORMATION
It is important that any changes made to the borrower information initially submitted on the
application be tracked throughout the term of construction by sending an email to
[email protected]. This applies to all CCM employees working renovation
loans.
Some examples of these changes include the following:
• Borrower occupying the property
• Borrower moving to a temporary residence
• Telephone number changes
• Contractor changes
• Any other material matter
Accurate borrower information is required to properly administer the repair escrow and
service the loan. In many cases, the borrower’s telephone number(s) or mailing address will
change from the information on the application before the property is occupied. Reporting
this information is necessary for the borrower to properly receive his or her draw
disbursements.
COMMENCEMENT OF CONSTRUCTION
Construction on a project must commence within 30 days of the note date. Rehabilitation
progress is monitored for compliance, per protocol below:
A CCM Renovation team member reaches out to the borrower and contractor, 30 days from
the note closing date, to:
• Confirm work was started
• Obtain copies of permits (if they were needed)
• Explain the draw submission forms (if necessary)
The borrower and contractor are informed that any changes to the original plan must be
approved prior to work being done to avoid the risk of having disbursements delayed or
withheld. They must complete either the HomeStyle Change Order Request (Fannie Mae
Form 1200) or the HUD Request for Acceptance of Changes in Approved Drawings (HUD
Form 92577), which is submitted to the appraiser to verify it will not change value (if a
reduction of repairs is noted). It is then approved by the CCM Renovation manager or
Renovation underwriter prior to starting any work.
Every 30 days after the initial 30 days, a Renovation team member reaches out to the
contractor and borrower to confirm the status of work. A letter is mailed to the borrower at
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30, 60 and 90 days after closing, providing additional information for obtaining completion
of work in a timely manner.
CUSTOMER SERVICE
Throughout the renovation period, a Renovation team member, in conjunction with a branch
member, performs the following:
1. Manages the draw process.
2. Addresses inquiries by all parties of interest.
3. Manages inspections, draws and related support.
Detailed customer service phone logs and emails are maintained for support and auditing
purposes, and all correspondence is uploaded into the Land Gorilla Construction Loan
Manager system (at final closeout, the documentation will be transferred to Encompass).
As stated in the Rehabilitation Loan Agreement, the mortgagee may consider the mortgage
to be in default if work:
• Has not begun within 30 days of the disbursement date
• Ceases for more than 30 consecutive days
• Has not been completed within the established timeframe or an extended
timeframe (as approved by the mortgagee/lender)
If the mortgagee considers the mortgage to be in default for failure to begin or complete
work, and the mortgage is not in payment default, the mortgagee must apply any unused
rehab funds toward the principal amount after all attempts to mediate the issue.
COMPLETION OF CONSTRUCTION/EXTENSION INFORMATION
The renovation period begins when the mortgage is funded. Renovation on a project must
be completed within 12 months of the note date (or as indicated in the Rehabilitation Loan
Agreement).
The initial renovation period is as follows:
• Six months on 203K financing
• Nine months for HomeStyle
• Two months for VA Rehab
If the work is not completed within the specified renovation period, the borrower/contractor
may request an extension of the time and must submit a request with adequate
documentation to justify the extension. The mortgagee/lender may grant an extension at its
discretion only if the mortgage payment is current.
Important Note: Only one extension is permitted.
At no time is the extended timeframe to exceed 12 months from funding of the loan. If
renovation is not complete, the loan is considered in technical default for “suspension of
construction.” Please refer to the Suspension of Construction section of this SOP for
additional information.
The Renovation specialist then obtains the following:
• Evidence that the mortgage is current
• An explanation for the delay from the borrower, contractor and/or consultant
• A new estimated completion date (from the borrower and/or contractor)
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On the Escrow Closeout Certification screen in FHA Connection, the Renovation specialist
then completes the required fields to document the approval of the extension request for
the renovation period on FHA loans.
DRAW PROCESSING AND FUNDS DISBURSEMENT OVERVIEW
PERMISSIBLE AMOUNT OF RENOVATION DRAWS
CCM allows up to five draws based on either the general contractor for HomeStyle
Renovation loans or the work writeup per the HUD consultant. The 203K Limited program
limits the draws to one at closing and one at final.
Closing draws are non-standard for any loan program and must be requested and meet
agency guidelines. The CCM underwriter reviews and approves the draw at closing.
Any draws greater than the funds held, the cost of the reinspection and title update are
charged to the borrower (the borrower may request a change order to use the contingency
funds to cover additional inspection fees and title updates).
DRAW HOLDBACK
Regarding draw holdbacks:
• 203K Renovation Loan – 10 percent is held back on each draw until all work is
completed and it is determined that no mechanics’ or materialmans’ liens have
been placed on the property
• HomeStyle Renovation Loan – no holdback to the draw is required; however, the
lender may hold back up to 10 percent on each draw
• VA Rehab Loan – no holdback to the draw is required; however, the lender may
hold back up to 10 percent on each draw
Holdback from draws are released after the final draw once verification of the title shows no
lien issues. The release may occur 30-45 days after the final draw, depending on local/state
mechanic lien requirements.
DRAW PROCESSING AND FUNDING
When the general contractor is ready for a draw, he or she contacts the CCM Renovation
department (if a HUD consultant is used, the general contractor contacts the HUD
consultant for forms and inspections). The general contractor then submits the Draw
Request Form to the CCM Renovation department by emailing
[email protected] for work completed and items installed. As documents
are received, they are uploaded into the Land Gorilla Construction Loan Manager system.
The Renovation specialist completes the following steps:
1. Reviews the Draw Request Forms, and, if all are acceptable, proceeds with ordering
the inspection and title update.
2. Reviews any additional required documents per draw (i.e., permits, lien waivers,
borrower satisfaction letter, etc.).
3. Orders the inspection from the AMC or appraiser (unless one is provided by the HUD
consultant).
4. Provides a copy of the budget items being requested to AMC.
5. Orders the title update from the title company.
6. Confirms in the Dovenmuehle Mortgage, Inc. (DMI) portal that the mortgage
payment is current and not past due. DMI is CCM’s mortgage subservicing company.
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Note: If servicing is transferred to another lender, confirms with the contact at the
new lending agency for payment status.
7. Requests a check from the CCM Accounting department for the approved request
amount once the title update and inspections are back and acceptable. A CCM
Accounting department member then issues a two-party check to the borrower and
contractor.
Note: A check payable directly to the contractor is permissible with written
authorization from the borrower on a per-draw basis.
8. Confirms the amount (on the two-party check issued by the Accounting department)
matches the approved amount and confirms the borrower’s (borrowers’) current
address prior to sending it to the borrower.
Note: The above process is repeated (not to exceed allocated draws) until the project is
completed.
Once final disbursement is completed, any renovation/construction budget funds and/or
contingency reserve funds – remaining and undisbursed – along with any interest earned
calculated by the CCM Accounting department, is applied to the outstanding principal
balance of the renovation loan. A Renovation department member then informs an
Accounting department member as to when to apply these funds to the principal balance.
Once completed, the Accounting department member provides his or her spreadsheet to the
Renovation department member. The spreadsheet includes interest earned, number of days
in escrow and disbursement(s) history.
DETAILED DRAW REQUIREMENTS
DRAW DISBURSEMENT REQUEST/AUTHORIZATION
The general contractor/HUD consultant submits the draw request forms as applicable via
email, fax or mail to the CCM Renovation department.
Note: The U.S. Department of Housing and Urban Development Draw Request Section 203K
form (form HUD-9746-A), also referred to as the Draw Request Form, is required on 203K
loans and the CCM Request for Payment is required on all other renovation loans.
It is required that the draw be applied to specific budget line items. Individual line items
cannot be overdrawn. The amounts allocated to individual lines, and the total of the draw,
must reconcile.
All product-specific required forms are utilized and executed electronically or by hand by the
required parties prior to disbursement of requested funds.
The expiration dates for the contractor’s license and insurance, as well as the rehabilitation
expiration date, are tracked. If the contractor’s insurance or license has expired, proof of
renewal is obtained prior to any draws. With respect to the expiration date of the
rehabilitation period, no draw is paid past this date without the proper extensions being
obtained.
CONTINGENCY/CHANGE ORDERS
Regarding contingency/change orders, please see information below:
• Use of construction/renovation contingency funds to pay for change orders are
supported by the appropriate product complaint forms and only for product-
specific approved usage
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©2018 CrossCountry Mortgage, Inc. Page 27 of 31
• All contingency requests are reviewed in regard to the appropriateness of amount
and timing. If the change order is deemed acceptable by the Renovation
department manager or underwriter, the request is approved, or, if deemed
unacceptable, the amount may be adjusted accordingly
o If changes requested may affect value, the underwriter and/or appraiser
reviews the Change Order Request to deem whether it is acceptable
• If items on the Change Order Request need a special license or new contractor,
they must go through the standard process listed above
• If the change order is approved, the proof of payment or receipt is required to
process draws from the contingency (or payment is made directly to the
contractor)
• Contingency funds may only be used to provide for cost overruns and additional
related changes associated with the work items as detailed in the work
writeup/bid. If all work is complete, the borrower may elect to use the
contingency funds for additional renovation work the program allows
• The cost of a change order is paid out of the contingency fund. If the contingency
fund is inadequate, the fee is paid by the borrower and documented within the
loan file
• Unused contingency funds are applied as a principal reduction when financed into
the loan. If the borrower elected to not finance the contingency funds, the funds
may be refunded back to the borrower after all items are verified complete
LIEN RELEASE POLICY
State lien laws have placed the burden on the borrower to ensure sub-contractors and
suppliers are paid for their materials and labor. To protect the collateral value of the home,
the contractor and borrower sign the applicable draw forms and lien waivers, stating he or
she has or will pay his or her sub-contractor(s) and/or supplier(s).
Some states require a state-specific lien release be used. In those states, the required
state-specific form must be used; otherwise, the standard Waiver of Lien or CCM Request
for Payment Form is signed and notarized.
Note: Please contact the Renovation manager at [email protected] for
access to the above-two mentioned lien forms.
TITLE UPDATE POLICY
Draws are funded only if the title update reflects there are no mechanics’ or tax liens
encumbering the property.
• If a lien is filed on the project, the loan is suspended until the issue is resolved
satisfactorily
• All specific statutory pre-lien notices, lien notices or communications regarding
non-payment of sub-contractors or suppliers should be forwarded to the CCM
Renovation department
SUSPENSION OF CONSTRUCTION
A project may be suspended by the CCM Renovation team for the following reasons, but is
not limited to:
• Inability to complete rehabilitation work in the required timeframe
• Refusal to complete minimum property repairs
• Expanding improvements without prior written approval
• Absence of occupancy by borrower(s) in the required timeframe
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• Liens filed on the property and are not cleared
• Changing contractors without prior written approval
• Renovation/construction ceases on the property for more than 30 days
When this occurs, loans require further action by the CCM Legal department. A CCM Legal
department member provides all relevant documentation and a recommendation as to how
to proceed to the Renovation manager when determining the appropriate course of action
and the appropriate steps to close out an incomplete project.
Refer to the appropriate agency guidelines under servicing for non-performing loans during
the rehab period. No further draws from the rehabilitation escrow account are permitted.
ESCROW CLOSEOUT/RECOURSE REMOVAL
The CCM Renovation specialist performs the following when dealing which each individual
loan type:
• FHA Loan – completes the escrow closeout in FHA Connection. He or she ensures
all information is accurate and all supporting documents are uploaded into
Encompass
• VA Loan – provides all related completion documents in PDF format to be
uploaded by the Renovation manager to WebLGY (the VA online application) for
final VA clearance and insuring; emails the Insuring department to issue the VA
Loan Guaranty
• Fannie Mae Conventional Loan – handles the removal of recourse. Instructions on
this are provided in the Fannie Mae Seller Guide, part B, sub-part 5, chapter 3,
HomeStyle Renovation Mortgage – Removal of Recourse. He or she emails the
required documents after the project is completed to Fannie Mae at
[email protected] (see below for required
documentation). He or she then ensures the information is accurate and that
supporting documents are uploaded into Encompass
Required documentation includes one of the following:
• Appraisal updated and/or Completion Report (form 1004D)
• HomeStyle Completion Certificate (form 1036)
Submissions must include the following:
• Fannie Mae loan number(s) must be identified in the email request and attached
documents must have the loan numbers in the title
• Documents must be clear and complete (i.e., it is a best practice to include
photos of completed renovations with all submissions)
• Manage email and attachment size to ensure delivery by:
o Submitting no more than five-to-seven attachments per message
o Properly numbering emails if there are multiple emails for the same
submission on the same day. For example, 1 of 3 emails, 2 of 3 emails, 3 of
3 emails
SERVICING
The CCM Servicing department follows the same process as with any other loan. Agency
loan delivery is the only option; no investors. Servicing cannot be sold or transferred to any
investor until the renovation is completed.
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Effective Date: 7/2/2018
©2018 CrossCountry Mortgage, Inc. Page 29 of 31
LOAN DELIVERY
A CCM Loan Delivery analyst updates the sales price when electronically delivering a loan to
Fannie Mae. The Purchase Price field (field ID 136) on the ULDD/PDD screen within
Encompass is updated (see below screenshot).
The Purchase Price field defaults to only the purchase price of the subject property and for
delivery purposes includes the financed renovations as noted on the Details of Transaction
screen.
The Loan Delivery analyst then adds lines a. and b. of the Details of Transaction screen and
manually overrides the electronic upload to Fannie Mae for loan delivery. The Loan Delivery
analyst may also refer to the AUS findings and use the purchase price as submitted to DU,
which is the total of lines a. and b. of the Details of Transaction screen.
Note: The underwriter enters special feature code 215 into the Investor Feature ID Pool
field on the ULDD/PDD screen within Encompass for Fannie Mae loan delivery. Using special
feature code SFC 279 is not permitted due to recourse and timing requirements from Fannie
Mae.
CONCLUSION
To conclude, CCM currently offers four renovation loan products (programs), which include
HomeStyle® Renovation; 203K Standard; 203K Limited; and VA Rehab. These products
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Effective Date: 7/2/2018
©2018 CrossCountry Mortgage, Inc. Page 30 of 31
have been discussed within this SOP, including which CCM employee performs what action
in handling these renovation loans.
As mentioned throughout this SOP, all loans must adhere to the standard credit
requirements as agency guidelines, and CCM overlays must be followed. All exceptions must
go through the exception request process.
Please reference the Definitions section at the beginning of the SOP for guidance on key
terms listed throughout this SOP, as well as the link in the Internal References section
below titled “Renovation Department Contact Listing (on Salesforce)” for all key contacts in
the CCM Renovation department.
See the References section below also for further valuable reference materials.
REFERENCES
INTERNAL REFERENCES
Internal References CCM Overlays & Exception Process
CrossCountry Mortgage, Inc. VA Rehabilitation/Renovation Loan Product Description/Underwriting Guidelines
Renovation Department Contact Listing (on Salesforce)
Renovation Department Page (on Salesforce)
EXTERNAL REFERENCES
External References 203K Consultants (HUD consultant lookup)
Fannie Mae Guidelines (AllRegs Online site)
HUD Handbook
Land Gorilla Construction Loan Manager Login
Lien and Notice Forms (FAQs on mechanic lien laws/requirements)
U.S. Department of Housing and Urban Development Draw Request Section 203K Form (form HUD-9746-A) (also referred to as Draw Request Form)
Veterans Information Portal (VA WebLGY)
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Effective Date: 7/2/2018
©2018 CrossCountry Mortgage, Inc. Page 31 of 31
REVISION HISTORY
Revision/
Publish
Date
Revision
Number
Description of
Revision(s)
Document
Owner
Reviewer(s) Approver(s)
12/17/2018 1.2 “(FHA Only)” added to the Contractor Conflict of Interest Certification field in the Disclosure column of the table under the Additional
Documentation Requirements section. Also, under the “When
Provided/Additional Instructions” column, “for 203K loans only”
was added to existing content in the field (next to above-mentioned field).
Theresa Baumgartner
Theresa Baumgartner
Theresa Baumgartner
12/4/2018 1.1 Reno indicator
information added to the Checking (Selecting) the 203(K) Checkbox and Reno Indicator section, in addition to new screenshot; AMC
information added to
the Ordering the Appraisal section; Various other content added to this SOP, including Land Gorilla information and
holdback content; The Salesforce Renovation department page link was added to the Internal References
section, which eliminated the former Appendix A, which listed all CCM
Renovation department contacts. Other external links
were added also to the External References section.
Theresa
Baumgartner
Theresa
Baumgartner
Theresa
Baumgartner
6/29/2018 1.0 Initial publish. Theresa Baumgartner
Theresa Baumgartner
Theresa Baumgartner