Announcement: Underwriting Updates

The following topics will be covered in this announcement:

  • 4506-C, IVES transcripts
  • Conventional COVID-19 guideline update and reminders
  • Uniform Residential Loan Application
  • Desktop Appraisals

4506-C IVES Transcripts:
Reminder of the IRS announcement regarding the modernization to the IVES transcript ordering system which was to take effect on January 1, 2022 will now be effective March 1, 2022.  The following is effective immediately for all your submitted loans.

  • A separate 4506-C form must be generated and signed for each form type requested for each individual borrower.
  • If the borrowers filed a joint return, only one borrower’s form is required for the 1040.
  • Each 4506-C form should contain only one check mark corresponding with the requested form type in the boxes for lines 6A-7. Do not add extra form types or check extra form type boxes that are not required.
  • The 4506-C should only include the years being requested. PHH will require the number of years required by the AUS recommendation.
  • The 4506-C should be clear of any editing marks and cannot be hand-written.

Conventional COVID-19 guideline Update
Effective immediately, Conventional COVID-19 guidelines for borrowers with qualifying income derived from self-employment will only apply when the most recent federal income tax return in the loan file is older than 2020. Standard Selling Guide polices should be applied when 2020 or 2021 tax returns have been received.

Reminder: Verification that the business is open and operating within 20 business days of the note date is required for the use of self-employment income. This requirement will continue for self-employed loans until further notice.

Income requirement reminders:

  • Age of Income and Asset documentation must be dated within 120 days of the Note date.
  • Verification of Employment is required within 10 days of closing.
  • Furlough/layoff: this does not fall into the temporary income category; it is not an acceptable income type

Uniform Residential Loan Application (URLA)
Any loan using the legacy format of the Uniform Loan Application (URLA), must be closed as of February 28, 2022.  The automated underwriting system (AUS) will not accept resubmissions on the legacy format on or after March 1, 2022.

Desktop Appraisals
PHH Mortgage will be fully adopting the Agency’s updates on Desktop Appraisals. More details will follow in the coming weeks!

If you have any questions, please contact your Regional Sales Executive, or contact us via the support line 1-800-929-4744, Email inquiries can be sent to  PHHCorrSupport@PHHMortgage.com or RateLock@PHHMortgage.com.

Thank you for your continued business.