Update 17-10

Revised 03/30/2017

Program Update

All Conforming Programs

Due to increased compliance issues with smaller loan amounts, all conforming products, conventional and government, except for the HECM are required to have a “Minimum Loan Amount of $75,000 for properties located in NY and TX.”  

This guide is active as of today 03/30/2017, and guidelines have been amended to reflect this.

USDA-Guaranteed Rural Housing Progam

Hazard Insurance Deductible Change:

  • Properties should have replacement cost coverage in an amount equal to the insured value of the improvements or the unpaid principle balance with deductible(s) which does not exceed the greater of either $1000 or 1% of policy coverage.

Flood Insurance Deductible Change:

  • RD now allows for Flood Insurance deductibles higher than $1000 or 1% of face value as the minimum deductible, if allowed by state or federal laws.

Power of Attorney Update:

A Power of Attorney (POA) may be used when the Mortgagee verifies and documents that all of the following requirements have been satisfied:

  • For military personnel, a POA may only be used for one of the applications (Initial or final), but not both:
    • When the service member is on overseas duty or on an unaccompanied tour;
    • When the Mortgagee is unable to obtain the absent Borrower’s signature on the application by mail, via fax, and
    • Where the attorny-in-fact has specific authority to encumber the Property and to obligate the Borrower. Acceptable evidence includes a durable POA specifically designed to survive incapacity and avoid the need for court proceedings.
  • For Incapcitated Borrowers, a POA may only be used where:
    • A Borrower is incapcitated and unable to sign the mortgage application;
    • The incapacitated individual will occupy the Property to be insured; and
    • Where the attorney-in-fact has specific authority to encumber the Property and to obligate the Borrower. Acceptable evidence includes durable POA specifically designed to survive incapacity and avoid the need for court proceedings.

Please contact your Account Executive with any questions.