Announcement: Seller Guide Updates & New Non-Agency Addendum

PHH Mortgage has made several modifications to the Seller Guide. In addition to this list of revised topics, all content specific to Non-Agency lending was replaced with references to the new Non-Agency Addendum (see details about this new feature below).

• Section 1.2 Contact Information: Updated PHH Lock Desk hours 
• Section 1.3 Fee Schedule: Revised the fee schedule
• Section 2.9.1 Representations and Warranties Regarding Loans: 
  • Added condominium charges to the list for required fee payment validation
  • Expanded the events for total or partial condemnation proceedings to include vandalism, hurricane, earthquake or earth movement, windstorm, and tornado
  • Additional line items incorporated regarding FIRREA appraisal requirements, qualifying documentation validation, payments on behalf of the borrower, and qualified mortgage regulations
• Section 4.1.1 Requesting a Commitment: Updated PHH Lock Desk hours for Best Efforts, added instructions for lock errors
• Section 4.1.2 Key Registration Data Fields: Clarified credit score requirements 
• Section 4.2.3 Best Efforts Commitment: Revised the pair-off language
• Section 4.5.4 Late Delivery: Updated to remove Best Efforts reference
• Section 4.7.6 Calculation of Pair Off and Delivery Fees: Removed Best Efforts from calculation table and updated to include case-by-case language for Best Efforts pair off
• Section 4.9.1 Repurchase Obligation: Added material misrepresentation, material error, gross negligence to the Loan File quality list
• Section 5.2.3 Credit Exceptions: Removed outdated process details
• Section 8.5 Original Mortgage Note: Revised language to specify that Non-Agency loans with a prepayment penalty are allowed as both Delegated and Non-Delegated 
• Section 8.26 Change of Servicer/Loan Transfer: Corrected the PHH mailing address to align with a previous update
• Section 10 Loan Purchase:  Corrected the PHH overnight mailing address to align with a previous update
• Section 13.5 Anti-Predatory Lending: Added ability-to-repay language
• Section 13.14 TILA-RESPA Integrated Disclosures (TRID) Rule: Updated to indicate Debt Service Coverage Ratio (DSCR) business purpose loans as exempt from the rule
• Section 15 Glossary: Added new Business Purpose Loan and Personal Use Loan definitions

The NEW Correspondent Seller Guide Non-Agency Addendum (Appendix A) was developed to outline topics specific to Non-Agency lending. For matters not addressed by the Addendum, the Seller Guide details continue to apply. Please review the addendum in its entirety. Some highlights of the Non-Agency policy changes include, but are not limited to:

• Section A4.1.1 Lock Desk Information: Expanded Lock hours to 9 pm ET (previously 5 pm ET)
• Section A5.1.1 Non-Delegated Program Net Worth/Liquidity Requirements: Adjusted tangible net worth reduced to $750,000 with 20% liquidity (previously $1.5M)
• Section A6.2 Non-Agency Underwriting Exceptions: New FlexIQ exception request details

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

Thank you for your continued business!