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Correspondent Lending Guide Update - February 3, 2017

AIG Correspondent Lending would like to announce the following regulatory and guideline updates.

These updates will be effective for all loans locked on or after March 1, 2017.

Should you have questions, please contact your Account Vice President.

Appraisals

AIG will require all versions of the appraisal report and any other evaluation documentation obtained during the loan process, to be included in the closed loan package submitted to AIG for review. The appraiser must provide comments as to who made the change request, why the request was made, what was changed, and whether the value was impacted as a result. The borrower must have received all versions of each evaluation document within the required time frame prior to the loan closing.

Seller Paid Fee Disclosure

The borrower’s CD must disclose the seller’s fees as stated in Reg. Z § 1026.38(g)(4). Creditors must disclose on Page 2, Section H (“Other”) of the CD the amounts for “charges in connection with the transaction that are…required or obtained in the real estate closing by the consumer, the seller, or other party.

TRID Clerical Error Remediation

All TRID clerical violations must be remediated within 60 days of consummation.

Documentation Requirements for Schedule C Sole Proprietorships

A balance sheet and Profit and Loss statement must be provided on all self-employed borrowers, including those qualifying with Schedule C/Sole Proprietorship income. This information will be updated in our next Jumbo Underwriting Guide release and is in alignment with Appendix Q.

Service Provider List

The Service Provider List must be provided to all borrowers within the required timeframe, documenting all providers and the services they provide. The only allowable exception to this requirement is when there are no fees in Section C of the Loan Estimate, and all fees in Section B of the CD are treated as zero tolerance fees.

Credit Report Repository Requirements

Regardless of the type of findings provided in the loan file (DU or LP), it is required that each file contain a tri-merge credit report.

Irrevocable Employment Contracts

All future income sources must be documented with a non-revocable contract in accordance with Appendix Q.