Announcement- COVID Guidelines & Agency Updates

PHH Mortgage will be adhering to the following agency updates:

• Removal of COVID overlays: Both Fannie Mae and Freddie Mac have announced the expiration of the remaining COVID-19 related underwriting guideline, including the verification that the Borrower’s self-employed business is open and operating within 20 business days of the Note Date.
• Reduced Annual Mortgage Insurance Premium: PHH will accept FHA loans using the lower annual MIP rates. Loans using the reduced MIP, may not be endorsed until March 20, 2023 or later.
  • Delegated Loans: If a loan is endorsed prior to March 20, 2023 and utilizing the lower MIP, the loan will be ineligible for purchase. If it is identified after purchase that the loan was endorsed prior to March 20, 2023, the loan will be subject to repurchase.

    Example:
    Loan Closes 3/1/23 with lower MIP
    Loan is Purchased by PHH on 3/15/23
    Loan is submitted for endorsement on 3/17/23
    Loan will be a repurchase due to HUD charging a higher MIP based on endorsement date.

  • Non-Delegated Loans: For loans already submitted to Underwriting, PHH will update the monthly insurance premium when providing the Clear to Close.

• Reduced VA Funding Fee: Effective for VA loans closed on and after April 7^th, 2023, sellers must use the new funding fee tables outline in Exhibit B, Circular 26-23-06 for all non-exempt Veterans.

In addition to these updates, PHH Mortgage has updated our Non-Delegated Government product listing to reflect that we are unable to accept VA loans with dual entitlement.

Fannie Mae: LL 2021-03 Impact of COVID-19 on Originations
Freddie Mac: Bulletin 2023-5 COVID-19 Related Selling Requirements
FHA: FHA Reduces Annual Mortgage Insurance Premiums
VA: Circular 26-23-03 Funding Fee Charge Update
If you have any questions, please contact your your Correspondent Specialist, Sales Executive, or contact us via the support line at 800-929-4744.

Thank you for your continued business.