Annoucement 2011 11-2 Correspondent Lending
2155 Louisiana Blvd., N.E., Ste 8000 Albuquerque, NM 87110 (800) 640-0635 NMLS# 932430
Superior Performance…Our Commit ment
IN THIS ANNCOUNCEMENT
In an effort to reduce duplicative credit review and improve the overall experience for our customers, we are pleased
to announce changes to our client services levels. Previously we offered three levels of service and corresponding fee structures referred to as StarSelect, StarChoice and StarPlus. Going forward we will offer two services levels with
what we believe will be more clear distinctions between them and will ultimately enhance the ability for our delegated customers to succeed in the ever-changing marketplace.
New Service Levels Effective Wednesday, 11/2/2011, Weststar will transition to a new service level structure for our clients. In the next
few days, you will notice a change in BlitzDocs when you submit a loan to Weststar that represents the two new
options for service level submissions: Delegated and Non-Delegated. Effective on 11/2/2011 our mid-tier service level
(StarChoice) will no longer be available.
Delegated Review Correspondent Delegated Review is a new service level that is granted to our best customers who demonstrate
proficiency in assessing the risk on our product lines and capital capacity to manage the outcomes of their own risk
assessments. We understand that even with this proficiency there are occasions when our clients would prefer to
defer that risk assessment (and its resulting liability) on portions of files they intend to deliver to us. To accommodate
the occasional need to preview those portions of certain loans we have added an option to our Delegated Review
tier: Delegation Exemption(s). Each requested exemption will carry an additional fee of $125 and be limited to a
maximum of two exemptions per file. Delegation Exemptions will modify Seller representation and warrant liability
specific to that portion of the file which has been fully reviewed, conditioned and approved prior to closing by
Weststar.
What are the benefits of a Delegation Exemption? The exemption has been put in place to provide our clients with an
enhanced comfort level that there will be no issues at the time of purchase resulting from a particular portion of the
file. Additionally, a granted exemption allows our clients on an as needed basis to defer to our product and risk
expertise while keeping costs low and mitigating Seller liability to the transaction. We believe that this combination
provides excellent flexibility and a needed efficiency to the loan review and approval process for our valued
customers.
Delegation Exemptions should be requested at file image submission with the attached request form and are
intended to be reviewed prior to loan closing. Exemptions are available for:
Credit
Collateral
Income
Assets
Fee structure: $250 plus $125 per exemption (max of 2 exemptions per request)
2155 Louisiana Blvd., N.E., Ste 8000 Albuquerque, NM 87110 (800) 640-0635 NMLS# 932430
Non-Delegated Underwriting Our Non-Delegated Underwriting service level is exercised on FHA loans via an established Principal Authorized Agent
relationship and allows for Weststar to underwrite an individual file for our all of our correspondent clients.
Principal Authorized Agent Relationship must be established through DU prior to loan submission
The loan closes in the correspondent’s name
Correspondent insures the loan
Available to all correspondents
Fee structure: $850
If you have any questions regarding the new service levels, our line of exceptional loan products or would like to find
out more about how Weststar can help you be more successful in a challenging market please contact your
Correspondent Account Executive. Weststar Mortgage’s Correspondent Lending Division is a boutique mortgage bank
and FNMA/GNMA Seller/Servicer dedicated to delivering niche-based lending products with outstanding customer
service in the following states: CA, OR, AZ, UT, CO, NM, TX, OK, KS, NE, MN, IA, MO, AR, LA, IL, MI, IN, KY, TN, MS, AL,
GA, NC & FL.
Assets Date
Collateral
AUS Manual
State:
LTV: CLTV:
6)7)8)9)
4)5)
YES NO1) 5)2) 6)3) 7)4)
1)2)
Title Commitment Expiration: Appraisal Expiration: Purchase Contract Expiration:1) 3)2) 4)
1) 4)2) 5)3)
Notes
Underwriting Type: (circle one)
Requested by:
Title:
Underwriter Signature: Date Completed:
If more than two exemptions are requested WMC loan review will be conducted and invoiced as a Non-Delegated Review.
Income Notes:
Income Calculations:
Credit Notes:
TIL Date: Rate:
GFE Date: Term:
Loan Purpose: New Construction (OTC)
Property Address:
Transfer of Funds Documented
Comments:
Inquiry Letter
Asset Review
Funds Required for closing: Liquid Assets Available:
Divorce Decree (if applicable)
At the request of WMC's Delegated Correspondent Seller WMC has agreed to provide a detailed risk assesment of portions of the subject loan in lieu of the Seller's
delegated credit authority. For those portions WMC's underwriting departmet will therefore require certain documentation to be supplied by the Seller prior to loan
approval and purchase by WMC. Under this exemption and subject to the sufficient provision of required documentation and the subsequent loan approval and purchase
Seller is hereby released from representation and warranty liability under the Correspondent Lending Purchase Agreement to Buyer for any indemnity specifically based
on those indicated elements of risk assesment performed by WMC. Only those sections of the loan file specifically related to the indicated exemptions are subject to this
alteration of Seller's liability. Seller maintains all other representations and warranties to Buyer under the Correspondent Lending Purchase Agreement. Nothing in this
extension of WMC's exemption will alter or otherwise modify any provision of the Correspondent Lending Purchase Agreement.
Delegation Exemptions Requested by Seller ($125.00 each):
Credit
Income
Application Date: Lock Date:Disclosure Sent Date: Expiration Date:
Appraised Value: $ 203(k)HUD Repo
Dates Other
Purchase Price: $ New Construction (End Loan)Base Loan Amount: $ VA IRRLTotal Loan Amount: $ FHA Streamline
Loan Type: (circle one) FHA VA CONV USDA SS#'s:
Property Type:
Delegated Review Exemption Request
General Loan Information
Loan Number: Borrower:
Co-Borrower(s):
Improvements Documented Assessed as Real Property (Existing Homes)Documentation that home is in original
Needs:
Needs:
Manufactured Home Documentation
Form 500 NPW
Asset Notes:
Collateral Review
Tax Cert PayoffWiring Instructions Chain of Title
Expiration Date for Bank Statements:Large DepositsCompleted/Signed Gift Letter
3)
Credit SupplementChild Support (if applicable) LQI DocumentationLOE (if applicable) Address matches 1003/Docs in file
Credit Review
Credit Report Expiration: Credit Report matches most recent AUS findings:
(B) Pay Stubs: Dates Required: Dates In: Expiration:(CB) Pay Stubs: Dates Required: Dates In: Expiration:
2)(B) W-2 20_____ Years in File: 20____ 20_____(B) W-2 20_____ P&L Required: YES NO
3)(CB) W-2 20_____(CB) W-2 20_____
Income Review
1)(B) WVOE Tax Transcripts Required: YES NO(CB) WVOE Years Required: ONE TWO
1234567890 Delegation Exemptions (2 max)
1234567890 Credit - Income - Assets - Collateral
1234567890 See attached rider for each.
# Application Document(s) Agency FHA VA Stack
1 Loan Application 1003 (Initial)
2 Loan Originator License Verification N/A
3 NMLS Unique Identifyier Displayed N/A
4 Good Faith Estimate(s)
5 GFE Acknowledgement
6 GFE Change of Circumstance Disc.
6 List of Settlement Service Providers
7 Borrower Attestation of Intent to Proceed
8 Truth in Lending (Initial)
9 MDIA Cert
10 Application Date Validated N/A
11 Disclosures Sent Date Validated N/A
12 Confirm Delivery of Disclosures N/A
13 Fraud Guard (Interthinx) N/A
14 Property Type Validated N/A
15 Borrower Cert & Authorization
16 Notice to Home Loan Applicant
17 Disclosure Notices
18 Servicing Disclosure Statement
19 FACT Act Notice
20 Rate Lock/Float Agreement
21 Borrower Appraiser Acknowldegement
22IRS Form 4506-T Request for Transcript of
Tax Return (Initial)
23 LDP and GSA printouts N/A N/A
24Addendum to the URLA (Initial) HUD
92900AN/A N/A
25 FHA Purchase Agreement Addendum N/A N/A
26 FHA Informed Consumer Choice Disc. N/A N/A
27 FHA Get a Home Inspection Disc. N/A N/A
28 Assumption Notice to Homeowner N/A N/A
29 Important Notice to Homebuyer N/A N/A
30 VA Federal Collection Policy Notice N/A N/A
31 VA Nearest Living Relative N/A N/A
32Counseling Checklist for Military
HomebuyerN/A N/A
33 Origination Statement Itemization N/A N/A
34 VA Debt Questionnaire N/A N/A
35VA Important Notice - Rights of VA
BorrowerN/A N/A
36 OTC Floating Rate Agreement N/A N/A
37 OTC Spending Authorization Form N/A N/A
38OTC Important Notice (1st Payment Due
Date)N/A
39 OTC Manufactured Home Info Sheet N/A
40 Alive and Well Statement N/A N/A
41Appraisal, all pages and all exhibits
including legible photos
42 Asset Documents
43 AUS Findings Document
44 Borrower Letters of Explanation
45 CAIVRS Printout N/A
46 Certificate of Reasonable Value N/A N/A
47 Child Care Letter N/A N/A
48 Comparison Statement of VA IRRRL N/A N/AVA Interest Rate Reduction Refinance Loan only
Notes
WMC to perform: pull report, analyze & flag for u/w as needed
WMC to perform: use Check Loan Feature
Completed and accurate
WMC to perform: registration screen vs. disclosures
WMC to perform: registration screen vs. disclosures
Email receipt, etc.
WMC to perform: both company and originator listed on 1003
Final results; All Pages
If applicable
Required only if not evidenced on 92900LT
If applicable
WMC to perform: system vs. application, lock & AUS
Includes Credit Score Disclosure
Must evidence that it was sent within 3 business days from HOEPA
application date
Including any documentation to support changes as a result of changed
circumstances and the Settlement Service Provider List (if applicable).
Initial Good Faith Estimate must evidence that it was sent within 3
business day from HOEPA application date.
Pages 1-2 must be completed, signed and dated.
Required only if not evidenced on 92900LT
If applicable
For FHA loans, first page must show FHA Case Number. For Agency
loans, must include copy of the Appraiser's license and interior photos
for appraisals with interior and exterior inspections.
Verifying all funds needed to close
N/A for Construction Loans
Appraiser Independence Provision
If applicable
One-Time Close Only
One-Time Close Only
One-Time Close & Manufactured Home Only
One-Time Close Only
Initial Review:
Completed Date:
1234567890
1234567890
Delegated Review Checklist
Weststar Mortgage Correspondent Lending
Client ID:
Borrower (Primary Last Name):
WMC Reviewer Name:
If applicable, requires supporting documentation/explanation
Completed and signed by all qualifying borrowers at closing; not
required on non qualifying VA IRRRLs
49 Condo Approval
# Application Document(s) Agency FHA VA Stack
50 Credit Report
51 Document to Clear Conditions
52 Final or Repair Inspection
53Builder's Certification or 10 yr. warranty
HUD 92541N/A N/A
54 HUD Warranty of Completion HUD 92544 N/A N/A
55 Conditional Commitment HUD 92800-5b N/A N/A
56Underwriting and Transmittal Summary
HUD 92900LTN/A N/A
57Addendum to the URLA (Final) HUD
92900AN/A N/A
58 Income Documents
59IRS Form 4506-T Request for Transcript of
Tax Return (Final)
60 Lender's Quality Certification N/A N/A
61 Loan Application 1003 (Final)
62 MI Proof of Payment N/A
63 Mortgage Insurance Certificate N/A N/A
64 Notice of Value and all NOV requirements N/A N/A
65 Payoff Statement N/A
66 Power of Attorney
67 Prior Loan Validation for IRRRL N/A N/A
68 Property Certifications N/A
69 Sales Contract
70 Social Security Number Verification
71 Tax Transcripts
72 Truth in Lending (Final)
73 Underwriting Approval Document N/A N/A
74Report and Certification of Loan
Disbursement VA 26-1820N/A N/A
75Warranty of Completion of Construction
VA 26-1859N/A N/A
76 VA 26-1880 Certificate of Eligibility N/A N/A
77 Loan Analysis VA 26-6393 N/A N/A
78Verification of VA Benefit Related
IndebtednessN/A N/A
79Addendum to URLA (Final) VA Form 26-
1802aN/A N/A
80 IRRRL Worksheet VA Form 26-8923 N/A N/A
81
Verbal Verification of Employment or
acceptable verification for self employed
borrower
# Closing Document(s) Agency FHA VA Stack
82 Assignment of Mortgage N/A N/A
83 MERS Assignment to Correspondent
84 Verbal VOE
85 Fraud Guard Report (Interthinx) N/A
86 FHA Case File Assignment N/A N/A
87 LQI Certification N/A N/A
88 Buydown Agreement and Schedule
89 Escrow Holdback Documentation
90 Escrow Waiver Letter
91 First Payment Letter
92 Flood Insurance Policy
93 Flood Zone Certification
94 Hazard Insurance Policy
95 HOEPA/HMDA Required Information
Performed within 10 days of loan closing.
Must be assigned to Correspondent
WMC to provide
Qual Score: Required Score:
If applicable
Completed and signed by all qualifying borrowers at closing; not
required on non qualifying VA IRRRLs
Must be signed and dated
If applicable
New Construction Only
New Construction Only
Form must be complete and accurate and the Commitment Terms
Section must include Underwriter's Name, Signature & Date and
Must be complete and include CAIVRS#, LDP/GSA box checked for each
borrower and CHUMS ID for Underwriter or Reviewer of Appraiser, if
applicable. Note: If 92900LT does not include CAIVR's or LDP/GSA
checkboxes, copies of CAIVRS and LDP/GSA printouts are required
Pages 1-4 must be complete and include all appropriate signatures and
dates
Based on Employment or Other Types of Income
If VA & Tax Returns are used, must be signed.
If Conv or FHA & Tax Returns, don't have to be signed
Required on all Non-IRRRL loans
For refinance loans
If applicable
Print out from VA portal or Certificate of Eligibility
Veteran's name must match 1003
(Well, Septic, Roof, if applicable)
Purchase Transactions, all pages
For FHA loans, only; if Amendatory Clause is not contained in Sales
Contract, must be provided seperately
Copy of Social Security Card, W-2's, etc
Must match SS# on 1003
Required on all transactions except non credit qualifying VA IRRRLs
Must be complete and include Underwriter's Signature and Date
Must include CAIVRS # in box 46 or 47 or printouts will be needed
Required only if borrower is EXEMPT from paying a Funding Fee
Pages 1-2 must be complete and include all appropriate signatures and
date signed
VA Interest Rate Reduction Loan Only
Required on all loan types except non-credit qualifying VA IRRRLs
Final Truth in Lending must be signed at closing
1008 or equivalent document
Must be signed and dated by the Lender and the Borrower
New Construction Only
Notes
Notes
If not using MERS
Single Premium only
With Transfer Letter
With Transfer Letter
If applicable
If applicable
If applicable
96 HUD-1 (Final)
# Closing Document(s) Agency FHA VA Stack
97 Loan Payment History
98 Mortgage/Deed of Trust
99 Name Affidavit
100 Note
101 Notice of Assignment, Sale or Transfer
102 Riders
103 Right of Rescission Notice
104 Subordination Agreement
105 Survey
106 Tax Information Sheet
107 Termite Report
108 Title Commitment
109W-9/W-8 Request for Taxpayer
Identification Number and Certification
110 Wiring Instructions or Bailee Agreement
If applicable
If applicable
Original with appropriate endorsement
Notes
Date
Notes:
WMC Reviewer Signature:
If Applicable
Signed by Primary Borrower
If Applicable
If Applicable
If Applicable