Effective 03/01/2021,

NEW Minimum FICO for FHA is lowered to 620

LLPA for FICO 660-679will be lowered to 0.75 from 1.25

This changes will be effective for all loans with lock date on or after 03/01/2021.

Please see below for details. 

Property type of Manufactured Home will be available starting 03/01/2021.

The manufactured home is legally classified as real property;

• There is no accessory dwelling unit (ADU);
• Subject is located on an individual lot or in a Fannie Mae-Approved Project;
• Have a manufactured date of 10 years or less as of the effective date of the appraisal
• The manufactured home is at least 12 feet wide and has a minimum of 400 square feet of gross living area.
• Fee Simple. (no leasehold)
• No UCC filed.

EFFECTIVE IMMEDIATELY

MK Lending is aligning with FHA INFO #21-04 which announces that individuals classified under the “Deferred Action for Childhood Arrivals” program (DACA) with the U.S. Citizenship & Immigration Service (USCIS) and are legally permitted to work in the U.S. are eligible to apply for mortgages backed by the FHA.

Other FHA requirements remain in effect for all potential borrowers including DACA status recipients.

Please note MK Lending requires all borrowers to have a valid Social Security Number.

See below for details

Should you have any question, feel free to contact Broker Relations or your Account Executives.

MK Lending is constantly looking for ways to improve the client experience and make it easier to do business with us.

Thank you.

Effective immediately,

Our VOE & SI program rate option has been updated.

This changes will be effective for all loans with lock date on or after 01/18/2021.

Please see below for details.

VOE

 SI

Should you have any question, feel free to contact Broker Relations or your Account Executives.

MK Lending is constantly looking for ways to improve the client experience and make it easier to do business with us.

Thank you.

Effective immediately,

Our FHA and Jumbo LLPA is updated.

This changes will be effective for all loans with lock date on or after 01/18/2021.

Please see below for details.

FHA LLPA

JUMBO LLPA

Should you have any question, feel free to contact Broker Relations or your Account Executives.

MK Lending is constantly looking for ways to improve the client experience and make it easier to do business with us.

Thank you.

Redesigned Uniform Residential Loan Application (URLA)

MK Lending Corp will begin accepting the redesigned Uniform Residential Loan Application (URLA) starting February 1, 2021.

All brokers must submit loans with new redesigned URLA for loans with applications on or after March 1, 2021 as announced by Fannie Mae and Freddie Mac.

MK Lending Corp will continue to accept loans delivered using the legacy URLA with applications prior to March 1, 2021.

However, we highly recommend using new redesigned URLA starting February 1, 2021.

 Resources:

Fannie Mae Lender Letter (LL-2020-10)

Freddie Mac Bulletin 2020-26

Fannie Mae Uniform Residential Loan Application Webpage

Freddie Mac Uniform Residential Loan Application & Uniform Loan Application Dataset Webpage

Thank you.

2021 Holiday Schedule

Below is MK Lending’s Holiday Schedule for the year 2021.

MK Lending will be closed on the following dates in observance of each holiday.

"December Holiday Schedule"

* MK Lending Corp. will be closing early on Thursday, December 31, 2020

MK Lending Corp. will be closed on Friday, January 1, 2021 in observance of New Year.

We will reopen on Monday, January 4^th at 8:30 a.m.

Enjoy your holiday 

Effective: 12/17/2020

MK Lending, Corp. is excited to announce that Jumbo loans are back!

Starting tomorrow, 12/17/2020, loans can now be registered or locked under the Jumbo program.

Detailed information about Jumbo loans will be posted on our rate sheet tomorrow, and pricing can be found on page 7.

*Please note that Jumbo loans can only be locked after the file has been Cleared to Docs.

Effective: Monday, 12/14/2020

MK Lending Corp. is excited to introduce a new update in the system that will auto-accept lock requests.

Brokers will be able to request for a lock as usual through the portal; the process in which brokers request for a lock will not change. However, lock requests will be accepted and implemented upon request.

The new update will also send a lock confirmation automatically once accepted. All brokers will receive a lock confirmation directly from the system and will not have to inquire for it.

Programs: Fannie Mae, Freddie Mac, FHA

Reference: Federal Housing Finance Agency (FHFA) News Release Maximum Conforming Loan Limits for 2021.

FHFA recently announced the 2021 Conforming Loan Limits. MK Lending is pleased to announce that beginning December 12, 2020, we will accept conventional loan registrations and rate locks within the 2021 loan limits.

Actual loan limits for certain high-costs areas, as determined by FHFA, may be lower than the maximum high-cost areas loan limits listed above. See FHFA Conforming Loan Limits for county limits.

Rate Locks:

New loan registrations and rate locks for conventional loans, on or after December 12, 2020, will be accepted under the FHFA 2021 loan limits.

Loans with an existing rate lock under a conventional conforming or high balance loan program can be increased up to the new 2021 loan limits.

Contact MK Lending Lock Desk to initiate the loan amount changes at: locks@mklending.com.

Process:

• Fannie Mae

Desktop Underwriter® (DU) will be updated the weekend of December 12, 2020. Registration and rate locks on or after that date will be underwritten with the 2021 loan limits.

See Fannie Mae® Lender Letter LL-2020-14, issued November 24, 2020 for additional information.

• Freddie Mac

Loan Product Advisor® will be updated by December 13, 2020. Registration and rate locks on or after that date will be underwritten with the 2021 loan limits.

See Freddie Mac® Single-Family News Center article, ‘Loan Limits are Increasing by 7.42% in 2021’ published November 24, 2020 for additional information.

• FHA

On December 2, 2020, HUD announced that mortgage limits are increasing for 2021.

In general, the nationwide FHA low-cost area limit (FHA floor) for calendar year 2021 is increasing to $356,362 from $331,760 and high-cost area limit (FHA ceiling) is increasing to $822,375 from $765,600 for a one-unit property,

FHA Loan Eligibility and Insuring: 2021 limits apply to FHA case number assignments on or after January 1, 2021.

Effective 12/08/2020,

Our MK VOE program has been updated.

This changes will be effective for all loans with lock date on or after 12/08/2020.

Please see below for details.

MK Lending is constantly looking for ways to improve the client experience and make it easier to do business with us.

Should you have any question, feel free to contact Broker Relations or your Account Executives.

Thank you.

“December Holiday Schedule”

* MK Lending Corp. will be closing early on Thursday, December 24, 2020.

  MK Lending Corp. will be closed on Friday, December 25, 2020 in observance of Christmas.

We will reopen on Monday, December 28th at 8:30 a.m.

Enjoy your holiday 

2021 Loan Limits

Programs: Fannie Mae, Freddie Mac, FHA

Reference: Federal Housing Finance Agency (FHFA) News Release Maximum Conforming Loan Limits for 2021.

FHFA recently announced the 2021 Conforming Loan Limits. MK Lending is pleased to announce that beginning December 12, 2020, we will accept conventional loan registrations and rate locks within the 2021 loan limits.

Actual loan limits for certain high-costs areas, as determined by FHFA, may be lower than the maximum high-cost areas loan limits listed above. See FHFA Conforming Loan Limits for county limits.

Loan Registration/ Rate Locks:

New loan registrations and rate locks for conventional loans will be accepted under the FHFA 2021 loan limits, starting December 12, 2020 and onwards. Loans with an existing rate lock under a conventional conforming or high balance loan program can be increased up to the new 2021 loan limits. Contact MK Lending Lock Desk to initiate the loan amount changes at: locks@mklending.com.

Process:

• Fannie Mae

Desktop Underwriter® (DU) will be updated the weekend of December 12, 2020. Registration and rate locks on or after that date will be underwritten with the 2021 loan limits. See Fannie Mae® Lender Letter LL-2020-14, issued November 24, 2020 for additional information.

• Freddie Mac

Loan Product Advisor® will be updated by December 13, 2020. Registration and rate locks on or after that date will be underwritten with the 2021 loan limits. See Freddie Mac® Single-Family News Center article, ‘Loan Limits are Increasing by 7.42% in 2021’ published November 24, 2020 for additional information.

• FHA

FHA has not issued a Mortgagee Letter regarding 2021 loan limits. MK Lending anticipates that 2021 FHA loan limits will be applicable on case numbers assigned on or after January 1, 2021. MK Lending will provide rate lock guidance shortly after FHA publishes the 2021 Loan Limits.

“Thanksgiving Holiday Schedule”

* MK Lending will be closed from Thursday, November 26^th to Sunday, November 29th in observance of Thanksgiving.

We will reopen on Monday, November 30th at 8:30 a.m.

Happy Thanksgiving! Enjoy your holiday J

Effective 11/16/2020,

Our cash out LLPA for conventional loans will be updated, and self-employed adjustment for both conventional and FHA loans will be removed.

This changes will be effective for all loans with lock date on or after 11/16/2020.

Please see below for details.

• Conventional:
              - Self-employed 1% adjustment removed
• FHA:
              - Self-employed 2% adjustment removed

Effective immediately,

Our guideline for Conventional loans and FHA loans has been updated.

Should you have any question, feel free to contact Broker Relations or your Account Executives.

MK Lending is constantly looking for ways to improve the client experience and make it easier to do business with us.

Thank you.

Northern California loans that were temporarily suspended due to the Wildfires may be reinstated.

All loans previously approved with a PIW  AND any new loans will now require an appraisal prior to docs and 1004D prior to funding.

If an appraisal was previously in the loan file, a 1004D Completion will be required prior to funding. 

AEs MUST verify that the loans are still active to reinstate the loans. 

Once status is confirmed, please contact the Account Manager to reactivate the loan file.

The counties impacted are:  Los Angeles, San Bernardino, San Diego, Fresno, Madera, Mendocino, Siskiyou, Trinity, Tulare, Lassen, Santa Clara, Butte, Lake, Yolo, Monterey, Napa, San Mateo, Santa Cruz, Solano, Sonoma, Plumas, Yuba, and Shasta

Columbus Day 2020

In observance of Columbus Day, please note the hours of operation for MK Lending Corp.

• loans will NOT be funded on this day due to the banking holiday

MK Lending is constantly looking for ways to improve the client experience and make it easier to do business with us.

Thank you

Broker Relations

MK LENDING CORP.

11023 McCormick St. #100

N. Hollywood CA, 91601

Tel. (213) 351-9911

Fax. (213) 351-9922

Email:broker@mklending.com

“Providing you with the essential tools and support you can depend on to gain a market edge”

CONFIDENTIALITY NOTICE: This e-mail message, including any attachments, is for the sole use of the intended recipient(s) and may contain confidential or proprietary information. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, immediately contact the sender by reply e-mail and destroy all copies of the original message.

Due to ongoing active wildfires, MK Lending Corp. is temporarily suspending or properties located in the following counties listed below due to active wild fires.

Effective immediately, The counties under temporarily suspensions are:

                               Lake, Napa, San Mateo, Santa Cruz, Solano, Sonoma, Yolo, Fresno, San Bernardino, Butte, Plumas, and Yuba.

(*San Bernardino: Zip Code 92305, 92320, 92399 only) 

We will continue to monitor the situation and add or remove any additional areas as needed.

Should you have any question, feel free to contact Broker Relations or your Account Executives(AE).

Effective immediately,

MK Lending Corp. will resume funding on loans that were previously impacted by CA wildfires disaster policy within Monterey County (Zip code 93908)

Please note property inspection report will be required (dated on or after 09/03/2020).

The counties under temporarily suspensions are:

                               Lake, Napa, San Mateo, Santa Cruz, Solano, Sonoma, Yolo and Fresno.

(*Fresno county was added)

We will continue to monitor the situation and add or remove any additional areas as needed.

Should you have any question, feel free to contact Broker Relations or your Account Executives(AE).

MK Lending is constantly looking for ways to improve the client experience and make it easier to do business with us.

Thank you.

Federal Emergency Management Agency (FEMA) declared California Wildfires (DR-4558-CA) on 08/24/2020, and announced that federal disaster assistance has been made available to the state of California to supplement state and local recovery efforts in the areas affected by wildfires beginning on August 14, 2020 with an ongoing Incident Period.

The counties eligible for Individual Assistance are:

                               Lake, Monterey, Napa, San Mateo, Santa Cruz, Solano, Sonoma and Yolo.

Effective immediately,

MK Lending Corp. will temporarily SUSPEND all loans regardless of the status in mentioned counties until further notice.

Eligibility
 - Loans on or after CTC (Clear to Close) ONLY

If eligible,
- Re-negotiated rate (new rate) must be LOWER than original locked rate by minimum 0.250 

- CURRENT PRICING (15 days pricing) will apply

- Re-negotiation fee of 0.25%

- Lock period of 7 days will be given to close.

New temporarily updated renegotiation policy is for loans on or after CTC, and current renegotiation policy is for all loans before CTC.

Please note that renegotiation is only allowed once.

Thank you.

3^rd party processing charge is not allowed:

• If the loan is Third Party(TPO) loan and is Lender Paid Compensation Plan
  -> 3^rd party processing charge is not allowed anymore.

3^rd party processing charge is allowed:

• If the loan is Third Party (TPO) loan and is Borrower Paid Compensation Plan
  -> 3^rd party processing charge is allowed.

Thank you.

Effective 07/28/2020,

We are temporarily implementing updated overlays for FHA loans as listed below:

Maximum DTI depends on FICO.

If FICO is higher or equal to 700, maximum DTI will be determined upon AUS

If FICO is lower than 700, maximum DTI is 50

Maximum LTV/CLTV for R/T is 97.75%

Maximum LTV/CLTV for Cash Out is 80%

 (* If the borrower is self-employed, adjustment of 2.000% will be applied on pricing.  Updated rate sheet will be available on 07/28/2020)

Thank you.

Effective Immediately,

The following is items that will be required at submission for FHA Streamline Refinances:

1. Current mortgage statement
2. Current payoff demand
3. Copy of current mortgage note
4. 1 month bank statement, unless broker credit showing on page 3 of 1003 covering all costs
5. Current pay-stubs

FHA Streamline must be submitted with complete package by the 8^th and resubmitted with complete conditions by the 20^th to fund in that month.

      MK Lending Program/Price Change

Effective: 7/20/2020

• CF DU/LP is no longer available

We are happy to introduce you to new program called ‘MK DU/LP’ & ‘MK HB DU/LP’
These programs are designed for W2 Only (with 1 REO) with better pricing than our Special Conforming/SHB program.

(* New matrix will be posted)
(* Matrix of SC DU/LP and SHB DU/LP will be changed to replace CF DU/LP and HB DU/LP)

Here is simple 5 step how to change exiting locked loan to MK DU/LP program.

1. If the loan is already in MK’s pipeline and hasn’t been approved yet
2. Please see if the loan qualifies for MK DU/LP program (W2 only w. 1 REO   or  Purchase with departing property)
3. If it qualifies for MK DU/LP, Pease send us (locks@mklending.com) COC form and Manual Lock Request form with today’s pricing
4. Lock desk will change the lock and loan program and notify the brokers with lock confirmation.
5. Please note that new lock request will replace the old lock completely(period, rate, adjustment, and all)

 Do not need to cancel the existing locked loan and submit it brand new.

If you have a loan in pipeline (not approved yet, qualifies for MK DU/LP, and locked), please send us an COC form and Lock request form.

Effective 06/19/2020, base rate and pricing for MK VOE/SI will be changed for new lock as below.

New Rate and Pricing:

MK VOE 7/1 ARM

5%          0.250

5.25%     0.000

5.5%      (0.250)

&

SI Program 7/1 ARM

5.25%        0.250

5.5%          0.000

5.75%      (0.250)

Should you have any question, feel free to contact Broker Relations or your Account Executives.

MK Lending is constantly looking for ways to improve the client experience and make it easier to do business with us.

MK VOE/SI Program Base Rate/Base Pricing/Maximum Loan Amount Change

 Effective 06/15/2020, base rate and maximum loan amount for MK VOE/SI will be changed for new lock as below.

• Base Rate Change

• Base Pricing: Par    (Borrower Paid Compensation Plan Only)

• Maximum loan amount: $1,000,000.00

Should you have any question, feel free to contact Broker Relations or your Account Executives.

MK Lending is constantly looking for ways to improve the client experience and make it easier to do business with us.

Effective: Immediately until further notice.

The profit and loss statement, and business bank statement, and other relevant factors will be reviewed to determine the extent to which a business has been impacted by COVID-19.

Updated requirements:

• Income analysis for self-employed borrowers

- Business Income: profit and loss statement reporting business revenue, expenses, and net income.

• An audited year-to-date profit and loss statement up to the most recent month preceding the loan application date

or

• An unaudited year-to-date profit and loss statement signed by the borrower up to the most recent month preceding the loan application date including 2 months of most recent business bank statement.

- Business Stability: Business income, expense and revenue must support financial stability.

As your trusted business partner, we are reaching out to provide further updates to our previous message regarding our response to COVID-19.
All of us at MK Lending feel the weight of our responsibility and want to ensure that we are closely monitoring the impact of COVID-19 and the changes in the economy.

Below is our temporary COVID-19 policy update on CONVENTIONAL CASH OUT LOANS:

CASH OUT ADJUSTMENT IMPROVEMENT 

We improved some of the adjustment on Cash Out loans.
Please refer to information below:

Effective for loans with lock date on or after 6/1/2020:

And, for High Balance loans,
we improved the HB C/O adjustment from 2.000 to 1.000

We understand that numerous changes within the industry have been challenging during the past few weeks.
We apologize for any inconvenience and will continue to strive to provide you with the absolute best service during these uncertain times.
We value your business and remain committed to a mutually sustainable long term partnership.
We pray for your health and the safety of your company and the communities we serve.

Thank you.

As your trusted business partner, we are reaching out to provide further updates to our previous message regarding our response to COVID-19.

All of us at MK Lending feel the weight of our responsibility and want to ensure that we are closely monitoring the impact of COVID-19 and the changes in the economy.

Below is our COVID-19 temporary policy update on purchase and R/T refinance transactions:

Temporary eligibility requirements: purchase and rate/term refinance transactions for existing mortgage loans in forbearance.

Effective: Application dates on or after Jun. 2, 2020. These policies will be effective until further notice.

In response to Fannie Mae and Freddie Mac policy updates, we are addressing eligibility requirements for borrowers impacted by the COVID-19 pandemic.

Due Diligence is required to confirm the status and payment history of any open mortgages showing on the credit report are current as of the note date of the new transaction.

For the purposes of these requirements, “current” means the borrower has made all mortgage payments due in the month prior to the note date of the new loan transaction by no later than the last business day of that month.

Examples of acceptable additional due diligence methods to document the loan file include:

* a loan payment history from the servicer or third-party verification service

* a payoff statement (for mortgages being refinanced)

* the latest mortgage account statement from the borrower

* a verification of mortgage.

Payment History Requirements

• Borrower has made all payments due, prior to subject loan note date, and on time even though the loan was in forbearance.  Please provide the following:

-          Cancellation letter from current servicer or Credit Supplement to show forbearance has been cancelled

-          12-month mortgage payment history from current servicer

• Borrower who is not current and has missed payments on any mortgage loan is eligible for a new mortgage loan if those missed payments were resolved in accordance with the requirements below.

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• Reinstatement

If the borrower resolved missed payments through a reinstatement, they are eligible for a new mortgage loan. The broker must provide a letter from the creditor to state the forbearance has been lifted with the source of funds.  If the reinstatement was completed after the application date of the new transaction, proceeds from the subject refinance transaction may not be used to reinstate any mortgage loan.

• Loss Mitigation Solution

If outstanding payments will be or have been resolved through a loss mitigation solution, the borrower is eligible for a new mortgage loan if they have made at least three timely payments as of the note date of the new transaction as follows:

• For a repayment plan, the borrower must have made either three payments under the repayment plan or completed the repayment plan, whichever occurs first. Note that there is no requirement that the repayment plan be completed.
• For a payment deferral, the borrower must have made three consecutive payments following the effective date of the payment deferral agreement.
• For a modification, the borrower must have completed the three-month trial payment period.
• For any other loss mitigation solution not listed above, the borrower must have successfully completed the program, or made three consecutive full payments in accordance with the program.

Verification that the borrower has made the required three timely payments may include:

• a loan payment history from the servicer or third-party verification service,
• the latest mortgage account statement from the borrower, and
• a verification of mortgage.

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We understand that numerous changes within the industry have been challenging during the past few weeks.

We apologize for any inconvenience and will continue to strive to provide you with the absolute best service during these uncertain times.

Should you have any question, feel free to contact Broker Relations or your Account Executives.

MK Lending is constantly looking for ways to improve the client experience and make it easier to do business with us.

Thank you.

As your trusted business partner, we are reaching out to provide further updates to our previous message regarding our response to COVID-19.

All of us at MK Lending feel the weight of our responsibility and want to ensure that we are closely monitoring the impact of COVID-19 and the changes in the economy.

Below is our COVID-19 policy update on MK VOE/SI programs:

It was unfortunate for us to make difficult decisions due to the ongoing impact of COVID-19.

However, today we have an exciting announcement to share in hopes of bringing light during this dark and tough time.

Effective of 05/18/2020

• We will bring MK VOE/SI Programs back.
• There are some changes in guideline and pricing (please refer to attached rate sheet).
• To minimize any confusion, we will only accept new submission.

We understand that numerous changes within the industry have been challenging during the past few weeks.

We apologize for any inconvenience and will continue to strive to provide you with the absolute best service during these uncertain times.

Should you have any question, feel free to contact Broker Relations or your Account Executives.

MK Lending is constantly looking for ways to improve the client experience and make it easier to do business with us.

As your trusted business partner, we are reaching out to provide further updates to our previous message regarding our response to COVID-19.

All of us at MK Lending feel the weight of our responsibility and want to ensure that we are closely monitoring the impact of COVID-19 and the changes in the economy.

Below is our temporary COVID-19 policy update on INCOME QUALIFICATION:

• Furloughs and Layoffs

Due to the recent increase of furloughed and laid off employees, MK Lending is aligning with the guidance given for borrowers that have been furloughed or laid off.
Income from borrowers who are currently furloughed or laid off is ineligible for qualification regardless of a return to work date has been provided.
Income from furloughed employees will not be considered eligible for qualification until they have actually returned to work

• Unemployment Compensation

MK Lending is aligning with the guidance given for borrowers who are receiving unemployment benefits.
Borrowers who are currently receiving unemployment benefits due to the impacts of COVID-19 are ineligible to use these benefits for qualification as these benefits are not considered stable or likely to continue, and cannot be considered under the temporary leave guidelines.
Unemployment benefits as qualifying income are only considered eligible for borrowers who are seasonal employees and have a documented stable history of receiving unemployment benefits.
Any loans submitted using unemployment benefits to qualify that do not fall under the appropriate guidelines will be considered ineligible for purchase by MK Lending.

We understand that numerous changes within the industry have been challenging during the past few weeks.

We apologize for any inconvenience and will continue to strive to provide you with the absolute best service during these uncertain times.

Should you have any question, feel free to contact Broker Relations or your Account Executives.

MK Lending is constantly looking for ways to improve the client experience and make it easier to do business with us.

Thank you.

Effective of today, LLPA for Cash Out of high balance loan program will be changed as blew

We understand that numerous changes within the industry have been challenging during this Covid-19 pandemic.

It was unfortunate for us to make difficult decisions due to the ongoing impact of Covid-19.

However, today we have an exciting announcement to share in hopes of bringing light during this dark and tough time.

Effective immediately, MK Lending is resuming FHA loans.

We are temporarily implementing overlays for FHA loans as listed below:

• Please see the matrix

(https://www.mklending.com/Upload/Special%20FHA%20v4.27.20%20(Temporary%20under%20ovid%2019).pdf)

• This matrix applies to all FHA loans in the pipeline, excluding locked loans.

FHA Guideline under Covid-19

• Minimum FICO                                   660
• Maximum DTI                                    50%
• Maximum LTV

-          Purchase                                  96.5%

-          Rate and Term                          90%

-          Streamline                                90%

-          Cash-out                                  Not Available

• Reserve                                            2 months Pitia for all loans (No Gift)
• Non-Occupant                                  “Immediate Family” Only
                                                             - Parents, Brothers & Sisters
                                                             - Must provide “Proof of Relationship”
• Streamline                                       Must provide “Proof of Income”
• Rental Income                                  Use of rental income to qualify not acceptable
• Self Employed                                   Must provide “Proof of Business Operation
                                                           - Bank Statement, P&L, Contract, etc.
• Manual Underwriting                       Not Accepted

Due to the on-going impact of the COVID-19 and suspension of Piggyback / 2nd TD loan from investors, MK Lending Corp made the decision to suspend our Piggyback / 2nd TD loan program until further notice.

_____________________________________________________________________

Effective immediately,

• Piggyback / 2nd TD loan will be temporarily suspended until further notice
• It will include all loans in pipeline.

_____________________________________________________________________

Not just our industry but the nation is going through difficult times.

We apologize for any inconvenience but we will continue to strive to provide you the absolute best service during this uncertain times.

 We have updated our credit guidelines for All Conventional MI loans.

Please be advised that MK Lending is implementing the following for all Conventional MI loans with Note dated on 4/13/2020 and after.

• LTV > 85 (if LTV is higher than 85)            Maximum DTI is 45
• LTV > 90 (if LTV is higher than 90)           Maximum DTI is 45%with 6 months       PITIA in Reserves
                                                                               (Gift Funds are NOT allowed to meet reserve requirements)

Effective of immediately

•   We will still process all MK VOE/SI loans but unfortunately funding won’t be available until the release of current stay at home order.

•   Submission, Underwriting, Lock and Doc processing is still available.   

Verbal Verification of Employment

Due to additional employment risk created by Covid-19, it is required to document the Verification of Employment within 3 days prior to closing.

Acceptable Methods for Wage Earners:

  1. Verbal Verification of Employment; OR

Written Verification of Employment.  An email directly from the employer’s HR/Payroll department with work email address that identifies the name and title of the verifier.

AND
  2. Most recently issued paystub with proof of payroll deposit must be provided
      (Including FHA Streamline)
  3. Evidence of 2 months pitia in reserves in borrower’s own account
      (FHA Purchase ONLY)

Acceptable Methods for Self-Employed Borrowers:

1. CPA letter dated within 3 days of closing; OR

Active Business License

AND

  2. Most recent business bank statements with transaction history up 3 days within closing; OR

     CPA signed and dated YTD P&L

Continuity of Income

Additional due diligence is needed to ensure that accurate borrower information is obtained and that the borrower’s ability to repay the mortgage is not negatively impacted due to Covid-19.

If documents provided show declining income, further review/analysis will be required.  In addition, if a borrower’s self-employed business is closed due to the pandemic the income may not be used to qualify. 

Attestation Form

For all loans, an Attestation form signed by all borrowers and notarized must be returned with the loan documents.

Effective immediately, Max Loan Amount for MK VOE/SI will be changed to $1,000,000.

As your trusted business partner, we are reaching out to provide further information on new and additional steps we are taking since our previous message regarding our response to the coronavirus (COVID-19).

Ongoing COVID-19 pandemic continues to impact us all in different ways and create substantial disruption in the financial markets and the nation more broadly. Many borrowers may be experiencing financial hardship during this pandemic and we must ensure the borrower’s ability to repay the loan to reduce the risk.

___________________________________________________________________________________________________________________________________________________

• Effective immediately, loans for which the Borrower has been granted or requested forbearance are ineligible.
• Additionally, if the borrower has been granted or requests a forbearance for up to 90 days from loan closing, it may result in a repurchase.

______________________________________________________________________________________________________________

Due to the on-going impact of the COVID-19 virus and jumbo loan suspension from investors, we’ve made the decision to suspend our Jumbo loan programs.

______________________________________________________________________________________________________________

Effective immediately,

• Jumbo Loan will be temporarily suspended until further notice
• It will include all loans in pipeline.

______________________________________________________________________________________________________________

Not just our industry but the nation is going through difficult times.

We apologize for any inconvenience but we will continue to strive to provide you the absolute best service during this uncertain times.

Please take great care of yourself and your loved ones- nothing is more important than your health and safety.

With the industry experiencing a significant shock during the COVID-19 pandemic, we at MK Lending Corp want to continue being your trusted mortgage banker.

We are closely monitoring and responding to current market environment and is dedicated to inform and communicate with you with any updates.

________________________________________________________________________________________________________________

As stay at home order is extended until further notice, we have an update on our policy:  

Effective of 4/6/2020

• We will still process all FHA loans but unfortunately funding won’t be available until the release of current stay at home order.
• Submission, Underwriting, Lock and Doc processing is still available.
• For all locked FHA loans (lock date before 4/6/2020), we will honor the promise and offer grace period for remaining lock period.
• FHA loans that were locked on and after 4/6/2020 won’t have grace period and treated as all other loans.

________________________________________________________________________________________________________________

Not just our industry but the nation is going through difficult times.

We apologize for any inconvenience but we will continue to strive to provide you the absolute best service during this uncertain times.

Please take great care of yourself and your loved ones- nothing is more important than your health and safety.

Thank you.

 Effective immediately, MK Lending Corp will apply the following to all Agency loans currently in process with loan application dates on or before May 17, 2020: 

• Verification of Employment

For wage earners, verbal verification of employment must be completed within 3 days of funding date with Proof of most recent paystubs and payroll deposited into the borrower’s account.           

For self-employed borrowers, if Non-Essential Business, evidence that borrower’s business is currently operating will be required.  Any recent business bank statement, contract, online transaction history  will be acceptable as proof that business is currently operating.

• Tax Transcripts

          For all loans with Note date before 4/01/2020, MK Lending Corp will accept tax transcripts provided by the borrower from the IRS.  Borrowers can create an online account and download the tax transcripts from the website.   https://www.irs.gov/individuals/get-transcript

          For all Loans with Note date on or after 4/01/2020, MK Lending Corp will waive tax transcripts.

• Transferred Appraisals No Longer Permitted for Conventional Loans.

• Appraisal Flexibilities

MK Lending Corp will align with Fannie Mae and Freddie Mac’s appraisal flexibilities as listed in the chart below for Purchase and Limited Cash Out transactions. 

*** ALL Cash Out Refinances MUST have Traditional Appraisal Report in file.  (Alternative flexibility not eligible)

On behalf of everyone at MK LENDING CORP, our hearts go out to all those impacted by COVID-19—

this includes not only those diagnosed with the virus, but also their friends and family, those whose jobs and schools have been impacted and so many more.

Our focus is, as always, on the health and safety of our employees, business partners and communities.

To provide you with the flexibility that you need during these uncertain times, we made few changes to our procedure as following :

Announcement

• Verification of Employment is Required

Effective immediately, MK Lending Corp will apply the following for all loans regarding verification of employment. 

For wage earners, verbal verification of employment must be completed within 3 days of funding date with Proof of most recent paystubs and payroll deposited into the borrower’s account.

For self-employed borrowers, if it not an essential business, evidence that borrower’s business is currently operating will be required.  Any recent business bank statement, contract, online transaction history will be acceptable as proof that business is operating.

Reminders

• Early Payment Default

To all brokers, Early Payment Default (EPD) policy is still in place as stated in the MK Lending Corp Broker Agreement.

If, during the first six (6) months for Conventional/Jumbo/Fha and twelve (12) months for Non-QM from the first Monthly Payment date, any Mortgage Loan becomes more than thirty (30) days delinquent, or if debtor files voluntary of involuntary bankruptcy proceedings, the Broker will repurchase the loan.

There is no question this is a time of great uncertainty.

While we don't know exactly what the future may hold, we feel confident that by sticking together and supporting each other, we'll emerge from this stronger than before.

As your trusted business partner, We are reaching out to provide further information on new and additional steps we are taking since our previous message regarding our response to the coronavirus (COVID-19).

COVID-19 continues to affect us all in different ways and create substantial disruption in the financial markets and the nation more broadly.

As we continue to monitor the rapidly changing economic landscape and evaluate credit risk in response to the COVID-19 pandemic,

MK Lending is announcing the following updates on FHA programs due to market changes.

Effective Immediately,

Minimum FICO for the FHA Loan Program is 640

In addition, all locked FHA Loans with FICO score under 680 will be subjected to rate re-negotiation with current market pricing

As we continue to monitor the rapidly changing economic landscape and evaluate credit risk in response to the COVID-19 pandemic,

MK Lending is announcing the following updates for FHA programs due to market changes.

Effective Immediately, Alt FHA is suspended.

It will be applied all loans in pipeline including locked loans.

We are living through an unprecedented and consequential time in our country, as the threat of COVID-19 pandemic becomes more pronounced.

Due to the ongoing impact of COVID-19 and continued disruption of many credit and government services, we are experiencing a delay of receiving tax transcript (4506).

Current estimated time of delivery is 2 weeks.

To avoid delays at funding, MK Lending Corp will temporarily accept the tax transcript (4506) ordered directly by borrower.

The borrowers can create an online account through the IRS website and download the tax transcripts.

Once the borrower obtains their transcripts, then the borrower must email them to MK Lending directly (Please email to the account manager’s Email).

Please see next for IRS Website to get tax transcript (4506).

• https://www.irs.gov/individuals/get-transcript

3/19/2020,

Due to the market condition,

PRICING will be

SUSPENDED until

further notice.

Due to current market status, lock extension and relock policy will be applied strictly.

- Lock extension will be allowed 2 timesonly. 

- For Lock Expired loans, you can do Re-lock only (No Extension is allowed)

* No Exception on lock extension and relock policy

Effective 03/23/2020, base rate for MK VOE/SI will be changed for new lock as below and MK VOE Expanded will be retired.

• Base Rate Change

• To keep current rate, lock request must be received by Friday, March 20th, 2 PM PST

Effective immediately, all NonQm programs will be suspended. It will include all loans in pipeline and no NonQM loans will be closed.

Only MK VOE/MK SI/MKVOE Expanded will not be suspended

Suspended Programs

• Prime Full / Prime BKST 100 series programs
• Alt Full / Alt BKST / Alt Doc 200 & 300 series programs
• DSCR – Investment programs
• ITIN Programs

New Procedure for Condition Upload

MK lending has changed the procedure of uploading conditions to make the process more efficient and minimize turn time.

• Please see Manual- Condition Upload about new procedure. It is available on MK lending Website (Menu: Forms and Matrix – Form)

      * It is extremely important to follow manual to upload conditions

      * Manual for new loan submission is also attached

• It will be applied for new loans on and after 3/6/2020 6 PM.

       * If you cannot find folder to upload in UW Condition, please send your conditions to your AE or upload it to unassigned folder in New Loan Submission as you did.

Should you have any question, feel free to contact Broker Relations, Account Manager or your Account Executives.

FHA 203(k) Limited Program Retired

Effective immediately, FHA 203 (k) Limited Program will be no longer available.

Funding Schedule on 12/24/2019

Due to the banking holiday schedule, only wire out will be available on 12/24/2019.

Please see below for your funding plan!

Below is information regarding each holiday that is observed by MK Lending in 2020 and the dates that MK Lending office will be closed in observance of each holiday

Alt FHA Program Minimum FICO Guideline Change

 Effective 12/16/2019, minimum FICO for Alt FHAprogram will changed from 550 to 580.

-  New loan files under 580 FICO for alt FHA can be submitted by end of this week

-  Current Loans and new loans in pipeline must be closed by 12/31/2019

2020 FHA Loan Limit Increase

FHA Mortgagee Letter 19-19 announced the 2020 Nationwide Forward Mortgage Limits.

The 2019 FHA county limits are applicable for case numbers assigned on or after January 1, 2020.

• The case number MUST be assigned on or after January 1, 2020 to be eligible for the 2020 loan limits.
• It is not permissible to increase loan amounts on 2019 case number or to cancel a 2019 case number for the purpose of using the new limits

2020 Conventional Loan Limit Increase

Beginning of 12/9/2019 Monday for new submitted loans,

MK Lending is aligning with the conforming loan limit increases for standard and high balance loans, as outlined in the following table:

Loan amounts vary by area and unit, with complete details located here. 

MK VOE/SI Program base rate change

Effective 12/01/2019, base rate for MK VOE/SI (Including MK VOE/SI Expanded program) will changed for new locks as below.

• Base Rate Change

Should you have any question, feel free to contact Broker Relations or your Account Executives.

MK Lending is constantly looking for ways to improve the client experience and make it easier to do business with us.

Please see next for MK Lending holiday schedule for November

* Normal business hours will resume on Monday, Dec 2nd after thanksgiving holiday.
   Therefore, please note that last available funding date on this November is 11/27/2019 Wednesday.

Appreciate your continued partnership with MK Lending.

Columbus Day

In observance of Columbus Day, please note the hours of operation for MK Lending

 * No loans will be funded this day due to the banking holiday

MK Lending is constantly looking for ways to improve the client experience and make it easier to do business with us.

Thank you

MK VOE/SI Expanded Program (Up to 80% LTV)

Effective 10/03/2019, we will add MK VOE / SI Expanded Program which allow LTV up to 80%.

Minimum FICO requirements are generally lowered as well. Please see ratesheet for detailed information

• New Program at glance

Should you have any question, feel free to contact Broker Relations or your Account Executives.

MK Lending is constantly looking for ways to improve the client experience and make it easier to do business with us.

Jumbo Loan Program LLPA Update

Effective of 10/3/2019, LLPA for Jumbo loan has been updated.

Please see the next for changes.

• JUMBO

Hello,

On Aug 1st, the Federal Housing Administration (FHA) published Mortgagee Letter (ML) 2019-11, “Maximum Loan-to-Value and Combined Loan-to-Value Percentages for Cash-out Refinance Mortgages,”

which announces the reduction of its current maximum loan-to-value (LTV) and combined loan-to-value (CLTV) percentages for cash-out refinance mortgages from 85 percent to 80 percent.

The cash-out refinance guidance is effective for mortgages with case numbers assigned on or after September 1, 2019.

MK Lending Crop will be aligning with updated Policy.

• View Mortgagee Letter 2019-11 and all other archived Mortgagee Letters at: https://www.hud.gov/program_offices/administration/hudclips/letters/mortgagee

MK Lending is constantly looking for ways to improve the client experience and make it easier to do business with us.

MK VOE/SI Loan Program Guideline Update (Rate changed & Rebate Added)

Effective 9/16/2019, any file with initial application date of today and going forward would following next pricing

• The starting rate will be changed for MK VOE 7/1 ARM to 4.750% and MK SI 7/1 ARM to 5.000%.

• Rebate for rate increase.

Should you have any question, feel free to contact Broker Relations or your Account Executives.

MK Lending is constantly looking for ways to improve the client experience and make it easier to do business with us.

Jumbo Loan Program LLPA Update

Effective 9/20/2019, LLPA for Jumbo loan has been updated.

• JUMBO

Should you have any question, feel free to contact Broker Relations or your Account Executives.

MK Lending is constantly looking for ways to improve the client experience and make it easier to do business with us.

Effective 8/13/2019, Please be noted that there are changes in MK VOE/SI loan program as below.

• The starting rate will be changed for MK VOE 7/1 ARM to 5.000% and MK SI 7/1 ARM to 5.250%.

• From now on, there will be a rebate for rate increase.

Should you have any question, feel free to contact Broker Relations or your Account Executives.

MK Lending is constantly looking for ways to improve the client experience and make it easier to do business with us.

Hello, MK Lending Brokers

Effective on 6/10/2019, please be advised there will be an increase of $77 in underwriting fee for conventional, FHA and jumbo loans

MK Lending Corp will start to collect flood certification fee ($14) and tax service fee ($63) due to increased costs.

* New Underwriting Fee

* New forms (Submission Form, Doc Request Form) also has been uploaded to MK Lending Website (https://www.mklending.com/Forms/Forms.cshtml)

MK Lending is constantly looking for ways to improve our relationships with all our clients and make it easier to do business with us.

MK VOE/SI Loan Program Guideline Update

Effective 6/3/2019, Please be noted with there are changes in loan program as below.

1. New Application on and after 6/3/2019

• Due to Investor and Regulator recommendations, we are retiring the LIBOR index and changing our program to the 1 Year CMT better match full doc products provided by FNMA
• The Margin will change from 2.250% to 2.500%.
• The payment Caps will be changed to a 5/2/5 from a 2/2/6.
• New Program code will be provided.

1. Current Loans in Pipeline

• Current loans in pipeline should be closed by 6/10/2019 to be eligible MK VOE/SI program.
• Any loans not closed by 6/10/2019 will be converted new program with new index, margin and caps as stated above.

Should you have any question, feel free to contact Broker Relations or your Account Executives.

MK Lending is constantly looking for ways to improve the client experience and make it easier to do business with us.

Hello,

MK Lending will no longer mail the “Goodbye Letter” to borrower(s) after loan get purchased by the investor.

Starting from May 13, 2019 we will email the “Goodbye Letter” to borrower(s) and broker.

Should you have any question, feel free to contact Broker Relations or your Account Executives

MK Lending is constantly looking for ways to improve the client experience and make it easier to do business with us.

MK VOE/SI Loan Program Guideline Update

Effective 5/1/2019, Please be noted with there are changes in loan program (MK VOE and MK SI)

• The rate will be changed for MK VOE 7/1 ARM to 5.125%and MK SI 7/1 ARM to 5.375%

• MK VOE 5/1 ARM and MK SI 5/1 ARM programs will be suspended

• Maximum Loan Amount increased to $3M.

• Max LTV upon loan amount for 1 Unit SFR & PUD will be changed as below

Should you have any question, feel free to contact Broker Relations or your Account Executives.

MK Lending is constantly looking for ways to improve the client experience and make it easier to do business with us.

MK Lending improved the pricing of HomeReady / HomePossible Loan Program as of 2/15/2019.

Check out MK Lending Ratesheet today (On Page 6) and Pricing Engine!!

Should you have any question, feel free to contact Broker Relations or your Account Executives

MK Lending is constantly looking for ways to improve the client experience and make it easier to do business with us.

No More Escrow Waiver (No Impound) Fee

Please be note that MK Lending has removed escrow waiver (No Impound) Fee on Conventional loan programs of 2/14/2019.

* Conventional ARM Program (Non-CA): Escrow waiver fee is lowered from 0.250 to 0.125

* It will be applying to the loans to be locked on 2/14/2019 or after

Should you have any question, feel free to contact Broker Relations or your Account Executives

MK Lending is constantly looking for ways to improve the client experience and make it easier to do business with us.

Presidents’ Day

In observance of President Day, our office will be closed Monday February 18th, 2019.

Date                                        Hours of Operation            Remarks

2/18/2019 (Monday)          Closed                                   President’s Day

We hope you enjoy Presidents’ Day and appreciate your continued partnership with MK Lending

There are updates on Fannie Mae / Freddie Mac Income Policy.

Effective immediately, MK Lending Corp is aligning with updated Income Policy.

Fannie Mae Commission Income Update

Previously, W2 wage earners with more than 25% commission income were required to provide tax returns and include 2106 expenses in the income calculation, 

Effective immediately, MK Lending Corp is aligning with Fannie Mae regarding income documentation required for a W2 wage earner with commission income, and Tax Returns will NO longer be required due to changes in IRS tax forms and reporting regardless of the percentage of commission income.

Freddie Mac Rental Income Update

Effective immediately, MK Lending Corp is aligning with Freddie Mac’s Rental Income Policy:

• To support sustainable homeownership through responsible lending practices, we are adding the requirements:

 -  The Borrower MUST own a Primary Residence to use rental income to qualify when purchasing a new rental property; AND

 - Whether purchasing a new rental property or converting a Primary Residence to a rental property, if the Borrower does not have a minimum of one-year investment property management experience:

 o The rental income can only offset the principal, interest, taxes and insurance (PITI) of the rental property;AND

 o Rental income exceeding the PITI cannot no added to the Borrower's gross monthly income to qualify

Below is information regarding each holiday that is observed by MK lending in 2019 and the dates that MK lending office will be closed in observance of each holiday

Monday, January 1, 2019 – New Year’s Day

Monday, February 18, 2019 - President's Day

Monday, May 27, 2019 – Memorial Day

Thursday, July 4, 2019 – Independence Day

Monday, September 2, 2019 – Labor Day

Monday, November 11, 2019 – Veterans Day

Thursday, November 28, 2019 – Thanksgiving Day

Wednesday, December 25, 2019 – Christmas Day

Wednesday, January 1, 2020 – New Year's Day (2020)

Announcement: 2019 FHA Loan Limit Increase

FHA Mortgagee Letter 2018-11 announced the 2019 Nationwide Forward Mortgage Limits.

The 2019 FHA county limits are applicable for case numbers assigned on or after January 1, 2019. Reference the FHA website for 2019 county limits.

* Please see the attached file (FHA Mortgagee Letter 2018-11) for Announcement of 2019 Nationwide Forward Mortgage Limits

Beginning of 1/2/2019, MK Lending will accept new loan registrations and rate locks for FHA loans under the 2019 limits

• The case number MUST be assigned on or after January 1, 2019 to be eligible for the 2019 loan limits.
• It is not permissible to increase loan amounts on 2018 case number or to cancel a 2018 case number for the purpose of using the new limits

Please contact your Account Executive with any questions.

Thank you

Broker Relations

MK LENDING CORP.

11023 McCormick St. #100

N. Hollywood CA, 91601

Tel. (213) 351-9911

Fax. (213) 351-9922

Email:broker@mklending.com

“Providing you with the essential tools and support you can depend on to gain a market edge”

CONFIDENTIALITY NOTICE: This e-mail message, including any attachments, is for the sole use of the intended recipient(s) and may contain confidential or proprietary information. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, immediately contact the sender by reply e-mail and destroy all copies of the original message.

New Year Promotion!

- Submit your loan and get $300 refund-

(Limited Time Only: 1/2/2019 ~ 1/11/2019)

All loans submitted during 1/2/19 to 1/11/19 will be eligible for a $300 Refund from our vendor, Accurate Appraisal Services upon closing of the loan.

All loans submitted must have an appraisal ordered with Accurate Appraisal Services to get this promotional refund.

* Refund will be applied after loan is funded and closed
* Submitted loan must be closed by 2/28/2019 for a $300 refund

In observance of Christmas and New Year Holiday, please note the hours of operation for MK Lending

We hope you enjoy Merry Christmas and Happy New Year!

We appreciate your continued partnership with MK Lending

Announcement

2019 Conventional Loan Limit Increase

 The Housing and Economic Recovery Act of 2008 (HERA) established the baseline loan limit of $417,000 and requires this limit to be adjusted each year to reflect the changes in the national average home price.

 Beginning of 12/3/2018 Monday for new submitted loans, MK Lending is aligning with the conforming loan limit increases for standard and high balance loans, as announced by Fannie Mae and Freddie Mac. In most areas, the 1-unit standard balance limit is increasing from $453,100 to $484,350 and the 1-unit high balance limit is increasing from $679,650 to $726,525. Loan amounts vary by area and unit, with complete details located at:

http://www.fhfa.gov/DataTools/Downloads/Pages/Conforming-Loan-Limits.aspx

 MK Lending will accept DU or LPA Approve/Ineligible decisions, when the “ineligible” result is

solely due to the loan amount being in excess of the 2018 limits, but is within the 2019 limits.

LPA will be updated December 1st, and DU will be updated the weekend of December 8th with

the new loan limits.

 In addition, the minimum loan amount for Jumbo Loans is being increased to $1 above the

standard balance loan limit, or $484,351.

 Please contact your Account Executive with any questions.

In observance of Thanksgiving Day, please note the hours of operation for MK Lending

We hope you enjoy Happy Thanksgiving Day and appreciate your continued partnership with MK Lending

.

Thank you

Due to the recent active fires, MK Lending is suspending funding for properties located in the following counties. We will continue to monitor and update the counties as necessary. Once funding has resumed, a re-inspection may be required in the counties identified.

New Loan Program Introduction

WRITTEN VERIFICATION OF EMPLOYMENT

with Prime Accent & Credit Accent

(Broker Rebate up to 2%)

A written Verification of Employment may be utilized when the only source of earnings is wages/salary.

* Max LTV for C/O and FTHB: 70%

More Details

• Two-year history with same employer is required.

• Completed FNMA Form 1005

• Minimum credit score:

o Prime Ascent – 660

o Credit Ascent – 620 (Minimum credit grade “A”).

• 24-month 0x30 housing history required.

• Paystubs, Tax Returns, 4506-T, or W-2’s not required.

• Max LTV 80% for purchase/R&T of owner occupied home only. Max LTV for C/O is 70%.

• Must be completed by Human Resource, Payroll Department or Officer of the Company.

• 2 Months Personal Bank Statements required to support the WVOE. Monthly deposits must support at least 65% of reported income is deposited into borrower’s account after accounting for tax and insurance withholdings.

• FTHB maximum LTV 70%, no gift funds allowed.

• An internet search of the business is required with documentation to be included in the credit file to support existence of the business.

• Term:         5/1 ARM,     7/1 ARM,     15 Year Fixed,         30 Year Fixed

The new guideline apply with application date on 05/23/2018 or after.

• 100% Gift allowed with all Occupancy for Down Payment & Closing Cost
• Loan Modification require 5 year season (previously 2 year season) 

2. Guideline Change – All Cash Out Refinance Transactions will require 12 months P&I in reserves regardless of LTV with Applications dated 3/1/18 or after.

"NEW" Guideline Dept.

Our Guideline team will assist you with guideline questions. Please email your guideline questions to guideline@mklending.com

Our office will open regular business hours on Monday, January 15, 2018.

Lock desk will be closed on Monday, January 15, 2018.

Loan Program update 01-05-2018

Loan program Piggyback has been retired due to lack of demand. Effective immediately.

If you have any question please contact locks@mklending.com

Scenario Helpline

Scenario@mklending.com

Our Scenario Helpline team will assist you with underwriting scenarios, product and program questions, and MK Lending CORP Funding guideline clarification.

HOLIDAY SCHEDULE

Days Closed

Monday, January 1, 2018 – New Year’s Day

Monday, February 19, 2018 - President's Day

Monday, May 28, 2018 – Memorial Day

Wednesday, July 4, 2018 – Independence Day

Monday, September 3, 2018 – Labor Day

Monday, November 12, 2018 – Veterans Day

Thursday, November 22, 2018 – Thanksgiving Day

Tuesday, December 25, 2018 – Christmas Day

Holiday Schedule

The Lock Desk will close 12:00PM on Friday, December 22nd 2017.

MK Lending Corp will be closed on Christmas Day (Monday, December 25) and

New Year's Day (Monday, January 1st, 2018).

Regular business hours will resume Tuesday, December 26 through December 29 and

again on Tuesday, January 2nd, 2018.

If you have any questions please contact locks@mklending.com

2018 Conventional Loan Limit Pricing

Effective: New application date after December 1^st 2017

2018 Conventional Loan Limit pricing

We are currently working on new loan limit pricing and will further notice the availability. New application submitted before December 1^st 2017 will not be eligible for new pricing.

Please contact your AE with any questions.

Effective: New application date after December 1^st 2017

2018 Conventional Loan Limit Increase

The Housing and Economic Recovery Act of 2008 (HERA) established the baseline loan limit of $417,000 and requires this limit to be adjusted each year to reflect the changes in the national average home price. 

Effective immediately, MK Lending Corp is aligning with the conforming loan limit increases for standard and high balance loans, as announced by Fannie Mae and Freddie Mac.  In most areas, the 1-unit standard balance limit is increasing from $424,100 to $453,100, and the 1-unit high balance limit is increasing from $636,150 to $679,650.  Loan amounts vary by area and unit, with complete details located at: http://www.fhfa.gov/DataTools/Downloads/Pages/Conforming-Loan-Limits.aspx 

MK Lending Corp will accept DU or LPA Approve/Ineligible decisions, when the “ineligible” result is solely due to the loan amount being in excess of the 2017 limits, but is within the 2018 limits. 

LPA will be updated December 3^rd, and DU will be updated the weekend of December 9 with the new loan limits. 

In addition, the minimum loan amount for Jumbo Loans is being increased to $1 above the standard balance loan limit, or $453,101. 

 Please contact your AE with any questions.

We will be posting rate sheet, if you need to lock rate please email to locks@mklending.com

Thank you

MK Lending Corp.

MK Lending will be closed on Thursday, November 23, 2017 in observation of Thanksgiving. We will resume our business hours of 9 AM - 2 PM on Friday, November 24 2017. Have a safe and wonderful Thanksgiving!

CALIFORNIA WILDFIRES

Due to the current California wildfires, MK Lending Corp. will require a 442 Re-Inspection for All active loans for properties located in the below listed counties and/or cities. During this time PIW offers will not be exercised regardless of AUS Findings.  Further notice will be sent as we monitor the situation.

borrowers to begin employment after close for one unit owner occupied properties when the borrower has a non-contingent signed offer letter and additional 3 months PITIA reserves.

with the following requirements:

• One unit, primary residence purchase
• Borrower is not employed by family members
• The offer letter must be included in the loan file at time of close
  • clearly identify the employer and the borrower, be signed by the employer, and be accepted and signed by the borrower;
  • clearly identify the terms of employment, including position, type and rate of pay, and start date; and
  • be non-contingent
• Employment must start within 90 days of the note date

• If a monthly student loan payment is provided on the credit report, the lender may use that amount for qualifying purposes. If the credit report does not reflect the correct monthly payment, the lender may use the monthly payment that is on the student loan documentation (the most recent student loan statement) to qualify the borrower.
• If the credit report does not provide a monthly payment for the student loan, or if the credit report shows $0 as the monthly payment, the lender must determine the qualifying monthly payment using one of the options below.
  • If the borrower is on anincome-driven payment plan, the lender may obtain student loan documentation to verify the actual monthly payment is $0. The lender may then qualify the borrower with a $0 payment.
  • Fordeferred loans or loans in forbearance, the lender may calculate
    • a payment equal to 1% of the outstanding student loan balance (even if this amount is lower than the actual fully amortizing payment), or
    • a fully amortizing payment using the documented loan repayment terms.

Previously, alimony was always treated as a liability and included in the borrower’s DTI for qualifying purposes.

Effective immediately, MK Lending is aligning with Fannie Mae’s update and allowing alimony to be either deducted from the borrower’s income or included in the borrower’s liability. 

When using the option of reducing the borrower's monthly qualifying income by the monthly alimony payment, enter the adjusted income figure as the income amount in DU.  Lenders can disregard the DU message requiring inclusion of the alimony obligation as a monthly liability that is issued whenever the borrower declares on the loan application that they are obligated to pay alimony. However, Lenders must still obtain documentation confirming the amount of the alimony obligation.

Effective with DU version 10.1 runs dated on or after July 29, MK Lending is pleased to announce that the cash-out LLPA can now be waived on loans using Fannie Mae’s Student Loan Refinance program.

Loans may be locked on or after August 7 as standard cash-out transactions.  MK Lending will review and adjust the pricing once the loan is closed.  Loans must have the special feature code (SFC) 841 on the DU in order to be eligible for the LLPA waiver.

Loans must meet MK Lending's and Fannie Mae’s requirements for waiving the cash-out LLPA, including all of the following guidelines:

• Only student loans may be paid off
• DU must return the Student Loan Cash-out messaging and SFC 841
• Standard cash-out LTV/CLTV/HCLTV ratios apply
• At least one student loan must be paid off with loan proceeds, meeting all of the following requirements:
  • proceeds are paid directly to the student loan provider,
  • at least one borrower must be obligated on the student loan being paid off, and
  • the student loan must be paid in full

Effective Immediately for Freddie Mac Loans, MK Lending, Corp. will align with Freddie Mac’s updates to income and assets as announced in Freddie Mac Bulletins 2016-19 and 2016-23.

Brokers may submit loans under the current guidelines until 04/30/2017 and must close these loans by 05/15/2017.  Brokers must follow Freddie Mac’s new income and asset requirements for all Freddie Mac Loans submitted on or after 05/01/2017.

If there are any changes, we will post it immediately.

FHA Mortgagee Letter 2017-01 Reduction of FHA Annual Mortgage Insurance Premium Rate Suspended Effective Immediately.  More detail look under Matrix with Government Loans.

HOLIDAY SCHEDULE

Days Closed

• Friday January 1, 2016 - New Year Day
• Monday May 30, 2016 - Memorial Day
• Monday July 4, 2016 - Independence Day
• Monday September 5, 2016 - Labor Day
• Friday November 11, 2016 - Veteran' Day
• Thursday November 24, 2016 - Thanksgiving Day
• Monday December 26, 2016 - Day After Christmas

PAYING OFF PROPERTY ASSESED CLEAN ENERGY (PACE) LOAN

CAN BE CONSIDERED AS  

LIMITED CASH-OUT

Eligibility Requirements

Limited cash-out refinance transactions must meet the following requirements:

• The transaction is being used to pay off an existing first mortgage loan (including an existing HELOC in first-lien position) by obtaining a new first mortgage loan secured by the same property; or for single-closing construction-to-permanent loans to pay for construction costs to build the home, which may include paying off an existing lot lien.

• Only subordinate liens used to purchase the property may be paid off and included in the new mortgage. Exceptions are allowed for paying off a Property Assessed Clean Energy (PACE) loan or other debt (secured or unsecured) that was used solely for energy improvements.

  • For a PACE loan originated prior to July 6, 2010, there is no limit on how much of the limited cash-out refinance loan amount may be used to pay off the PACE loan. See B5-3.4-01, Property Assessed Clean Energy Loans (12/01/2010), for additional information.

  • For a PACE loan originated on or after July 6, 2010, or other debt used for energy improvements, the payoff amount included in the limited cash-out refinance is limited to 15% of the appraised value of the property. See B5-3.3-01, HomeStyle Energy for Energy Improvements on Existing Properties (05/31/2016) , for additional information.

• The subject property must not be currently listed for sale. It must be taken off the market on or before the disbursement date of the new mortgage loan, and the borrowers must confirm their intent to occupy the subject property (for principal residence transactions).

Wishing you a peaceful, blessed Memorial Day weekend as we express our gratitude and honor to the Hero's that fought for us or are in service now.

Monday May 30th, 2016, our office will be closed all day in observance of the holiday. We will go back to Normal operating hours of 9am to 6pm on Tuesday, May 31st.

THANK YOU

Good afternoon Everyone!

In observance of Good Friday, MK LENDING LOCK DESK will be closing at 12PM March 25th, 2016. Our normal LOCK DESK hours will resume Monday, March 28th of 9AM through 2PM.

Let's get our lock request in early!

On behalf of our team, we would like to wish a Good Friday and a Happy Easter. 

Respectfully,

MKLC Management 

Hello, we will be closing at 1 PM on December 31st, 2015 and will be closed on Friday, January 1, 2016. We will resume normal business hours starting on Monday, January 4, 2016.

In honor of the holiday season, MK Lending will be closing at 1 PM on Christmas Eve, December 24th, 2015.

We will be closed on Christmas Day, December 25th, 2015.

We will resume normal business hours on Monday, December 28th, 2015.

Please be advise our Lock Department will be closed December 24th, and 25th in observation of the Holidays. We will open for normal business hours Monday, December 28th, 2015.

Our website has been optimized to display on mobile devices and smart phones.

This upgrade enables you to navigate and view our content effortlessly on your mobile device.

MK Lending will be closed on Thursday, November 26, 2015 in observation of Thanksgiving. We will resume our normal business hours of 9 AM - 6 PM on Friday, November 27, 2015. Have a safe and wonderful Thanksgiving!

<p>September 7, 2015 is Labor Day and a federal holiday.&amp;nbsp; MK Lending, Corp will be closed for business on that day.</p><ul><li>The Lock Desk will be open normal hours on Friday, September 4, 2015</li><li>Monday, September 7, 2015 cannot be included in the rescission period for rescindable loans</li></ul>