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August 24, 2015

Signs of The Times, Banks Loosen Up

Lenders are removing requirements by the dozen and some of them are doing it on a weekly basis.

Just to give you an idea of what is changing here is just one update last month. There have been three more updates since this one.

An update to the Program Guidelines has been published which is effective immediately. Below is a summary of the updated sections. Please refer to the updated Program Guidelines for complete details.

2.1.2. Non-Permanent Resident Aliens 
Eliminated the visa classification restrictions for non-permanent resident aliens.2.5.1. Employed Income 
Updated with acceptable alternative documentation for a written Verification of Employment.
2.6.1. Asset Requirements 
Updated to allow gift funds to be used in second/vacation home transactions.
2.6.5. Pooled Funds 
Updated to permit pool funds in second/vacation home transactions.
3.12. Secondary/Subordinate Financing 
Eliminated the restriction on secondary/subordinate financing from having a prepayment penalty.
3.13.2. Unacceptable Properties 
Clarified the restriction on properties with a private transfer fee covenant.
3.13.12. Community-Owned or Privately Maintained Streets 
Updated to no longer require a recorded private road maintenance agreement in defined states with laws governing private road maintenance.
3.14.1. Electronic Signatures
New policy section clarifying that electronic signatures are allowed on disclosures and any document where a signature is required.
3.15. Affiliated Business Arrangements 
Clarified that certain Affiliated Business Arrangements may be acceptable depending on the institutions involved.