September Monthly Newsletter

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Investors: Wells Fargo Multiple Updates

As a reminder, Wells Fargo announcements apply to FNMA, FHA, and VA ARM loans only.

  • Wells Fargo issued a reminder for BMPI for two- to four-unit and Investment properties because cancellation/termination requirements for PMI on loans secured by two- to four-unit or investment properties are different from requirements for PMI for single family dwellings. 
    • Loans secured by two- to four-unit or investment properties:
      • Are not covered by the Homeowner's Protection Act (HPA) and must not disclose the PMI cancellation/termination requirements for single family dwellings used as a primary residence.
      • Must disclose applicable state requirements and Agency polices for an PMI cancellation/termination disclosures.
    • When disclosing cancellation/termination requirements for two- to four-unit or investment properties, the Private Mortgage Insurance Disclosure and the Closing Disclosure (CD) must be accurate for Loans that contain borrower-paid single-premium or monthly premium PMI.
    • Note: Loans where BPMI is disclosed incorrectly on two- to four-unit or investment properties must have BPMI replaces with lender-paid single premium mortgage insurance, or they are ineligible for purchase with Wells Fargo.
  • The Wells Fargo Funding Validation List has been updated and available in KnowledgeOwl.

For CP synopsis see: CP Newsletter 09/12/2018

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