Project Search Tool Job Aid

Transcription

1 The Project Search Tool (PST) allows Correspondent Sellers to look up condominium (condo) projects that have been reviewed by Wells Fargo. The information available in the Project Search Tool is for informational purposes only and should not be used to determine if Loans are eligible for purchase by Wells Fargo Funding. All Loans secured by condominiums must adhere to Agency guidelines for condo project eligibility and approval as well as Wells Fargo guidelines outlined in Seller Guide Section (b). Prior Approval Loans Condo project approvals reflected in the PST may be used by Wells Fargo underwriters to determine project eligibility for Loans submitted to Wells Fargo for Prior Approval underwriting. Delegated Loans The condo project approvals displayed in the PST may not be used by Sellers for Delegated Loans. Sellers may use the PST to determine if a project reviewed by Wells Fargo is NOT eligible. If a DNL (DO NOT LEND) indicator is found for a specific project, then Wells Fargo has reviewed the project and determined it does not meet Agency and/or Wells Fargo eligibility requirements. This Job Aid provides Sellers guidance through the PST data fields: (type) Special Considerations Investor Requirements The project review types are NOT condo project approvals but may display in the PST <REVIEW> field: display in the <> field of PST MI Exception Walls in Coverage Sellers should disregard this message. It does not apply to Correspondent Loans sold to Wells Fargo Funding. Correspondent Sellers should obtain acceptable mortgage insurance when applicable. Wells Fargo reviewed the Master HOA policy for acceptable walls-in coverage. If this field reflects rejected then acceptable HO-6 coverage must be obtained by the borrower. Flood Insurance HOA Cert Wells Fargo reviewed the Master HOA policy for acceptable flood insurance. Sellers should disregard this message and comply with Agency and Wells Fargo flood insurance requirements. If HOA Cert shows approved and no higher review types were required, then a Wells Fargo Form 25 is required for Correspondent Prior Approval Loans. Page 1 of 5

2 <REVIEW> Field The project review types will display in the PST <REVIEW> field: displays in the <> field of PST CPM Fannie Mae s Condo Project Manager TM CPM. This review/approval is issued at the lender level, it is lender-specific. Project certification in CPM does not extend to other lenders. Using CPM may allow for project certification with lower than standard presale levels. When Wells Fargo works with Fannie Mae for a CPM review, it is only displayed within Wells Fargo s PST and not on Fannie Mae s site. Second Level : Outside Lender s PERS Internal Lender Delegated Fannie Mae s Project Eligibility Service (PERS) Second Level indicates that the review for the project was NOT initiated by Wells Fargo, but rather another lender. This means that Wells Fargo has not reviewed any of the project documentation and may need additional documentation to proceed and utilize the approval: o Non-Conforming Loans for units in a project with this review type will also require a completed Wells Fargo Form 25. o Conforming Loans: the <Special Considerations> field and apply any restrictions listed. Wells Fargo performed Full Project based on authority Agencies delegated to Wells Fargo. CVAS Transferring of this Agency waiver is not permitted. Wells Fargo Prior Approval underwriters can submit a request for a CVAS Waiver ( single loan waiver for project eligibility) for the Loan transaction: Upon the Seller s request Upon receipt of requested HOA/Project documentation DELRAP Direct Endorsed Lender Approval Process (DELRAP) Direct endorsement lender (with authority) is able to review/approve the condo project if the project has no exceptions to the current FHA guidelines. HRAP HUD Approval Process (HRAP) This review is used if the project does not qualify for a DELRAP. HUD/FHA reviews/approves the condo project. VA Legal ALL condo projects must be approved by VA Approval Page 2 of 5

3 <SPECIAL CONSIDERATIONS> Field The <SPECIAL CONSIDERATIONS> field Indicates certain project characteristics (if any) that were considered in the project review process. Some of the special considerations that may be displayed include, but are not limited to: display in the <Special Considerations> field of PST MI Exception Request Investor Concentration 30% or Unacceptable Investor Concentration Sellers should disregard this message. It does not apply to Correspondent Loan transactions sold to Wells Fargo Funding. Correspondent Sellers continue to obtain acceptable mortgage insurance when applicable. Investor Concentration requirements/restrictions are not applied to Correspondent Loans. Sellers may disregard this messaging. This message does not constitute a DNL restriction for Correspondent Loans. Litigation Leasehold Legal of Classification HOA Cert Deed Restriction Flood Insurance CVAS Waiver from FNMA required PERS Required These are examples of project characteristics identified within the project review. If a project review was approved and the approval has not expired, then these were considered to be low risk and no additional action is required. The project approval is applied. If a project review was rejected then this identifies a possible reason why the project does not meet Agency requirements. The project is not considered approved. Note: If the characteristic no longer applies (no longer in litigation, for example), then submit documentation to support the update with your Prior Approval Credit. It was determined that the project does not meet Agency requirements and a Credit Variance Administration System (CVAS) Waiver would be required to obtain a loan-level exception from Fannie Mae. A CVAS Waiver is loan specific and cannot be transferred. Therefore, the project is not considered approved. It was determined that the project does not meet requirements for review types less than a PERS. Only a PERS approval will be accepted for this project. Page 3 of 5

4 displays in the <Investor Requirements> field of PST The project FNMA guidelines/the project FHLMC guidelines DNL (aka DO NOT LEND) <Investor Requirements> Field This message should be disregarded. It is a default message. If the project does not meet one or both of the Agencies requirements, then it will be detailed in the <Special Considerations> and/or<investor Requirements> field. A DNL (DO NOT LEND) indictor is used to caution users that Wells Fargo has found criteria that does not meet Agency and/or Wells Fargo requirements, thus, Wells Fargo determined the project to be ineligible. The DNL will be displayed with an explanation. Examples include, but are not limited to: DNL was set for Wells Fargo loans. The project has been marked DNL for one of the reasons: Excess Com'l Space, One entity owns more than 10% of the project, Insufficient budgeted reserves. Not allowable conforming loans, Not allowable non-conforming loans. The project does not meet Fannie Mae guidelines. The project does not meet Freddie Mac guidelines. DNL was set for Wells Fargo loans.the project has been marked DNL for one of the reasons: leased amenities, excess commercial, budget, single entity ownership, presales less than 50% and excess commercial., The project does not meet Fannie Mae guidelines. The project does not meet Freddie Mac guidelines. Valid DNL Indicator: It should be assumed that the DNL indicator is valid and the project is not acceptable. Prior Approval Loans - Sellers should not submit the Loan for consideration because the Loan is not eligible for approval Delegated Loans - Sellers should not submit the Loan for purchase because the Loan is not eligible for purchase by Wells Fargo However, in certain cases, where additional information is known The DNL Indicator may no longer be valid. See next page for additional guidance. Page 4 of 5

5 When DNL, continued (aka DO NOT LEND) <Investor Requirements> Field, continued DNL Indicator Not or No Longer Valid: There may be instances when the reason for the DNL is no longer valid and the project status may be reconsidered. Wells Fargo may not be aware of the change in project status; in which case, the actions should be taken: Underwriting Option Prior Approval Delegated Action when the DNL may no longer be valid 1 Seller should submit documentation supporting the change in project status with the Credit Package. Wells Fargo underwriter will review and determine if DNL can be reconsidered. Sellers should: Contact a member of their Wells Fargo Funding Client Services Consultant to discuss, and Gather the supporting documentation to dispute the DNL and submit per the instruction of their regional Sales Team member. (The Wells Fargo team member will work to have the DNL reconsidered based on the new documentation provided). 1 Examples of DNL reasons that may be available for reconsideration: Litigation - Project was in litigation at the time of the Wells Fargo review; therefore, project was not approved. The DNL indicator displays with a reason of litigation. Seller has learned that the project is no longer in litigation and is able to provide supporting documentation to validate. Investor Concentration - Investor concentration limits are not applied to Correspondent Loans. When Seller observes this DNL reason, they should contact a member of their Regional Sales Team to discuss necessary steps to have the loan considered for purchase by Wells Fargo Funding. DNL indicators limited to certain transaction types: Some DNL indicators are only limited to certain transaction types. In this case, Wells Fargo will consider Loans eligible for purchase when they do not meet criteria specific to the DNL indicator. Examples: DNL with comments restricting occupancy type, such as secondary home or investment property In this case, Wells Fargo will only consider Loans in this project when the occupancy type is a primary residence. DNL with comments that the project is not Freddie Mac eligible In this case, Wells Fargo will only consider Loans in this project with acceptable DU findings. Condo Project Manager and CPM are trademarks of Fannie Mae. DU is a trademark of Fannie Mae. LP is a registered trademark of Freddie Mac. Information in this job aid is a summary and is not complete. Refer to the Wells Fargo Funding Seller Guide for additional guidelines. This information is for use by mortgage professionals only and should not be distributed to or used by consumers or other third-parties. Information is accurate as of date of printing and is subject to change without notice. Wells Fargo Funding is a division of Wells Fargo Bank, N.A Wells Fargo Bank, N.A. All Rights Reserved. NMLSR ID /22/12 Page 5 of 5