Revision:  Temporary Selling Requirements Related to COVID-19

May 13, 2020

Gateway First Bank, Correspondent Lending is amending its May 5th, 2020 announcement titled Update to Agency LLPAs:  Temporary Selling Requirements Related to COVID-19

Loans in Early Forbearance

Effective immediately, agency purchase or no cash-out refinance transactions entering into a forbearance period (as defined by Fannie Mae and Freddie Mac) after purchase by Gateway but prior to the loans being sold to an agency, will not be assessed the following LLPAs:

  • 500 basis points (5.000%) for first-time home buyers, or
  • 700 basis points (7.000%) for all other transactions

Reminders

  • Loans that are currently in forbearance are not eligible for purchase by Gateway
  • Agency Cash-out refinances that enter into forbearance after purchase by Gateway and prior to being federally backed may result in a repurchase.
  • Purchase and no cash-out refinance transactions that enter into a forbearance period (as defined by Fannie Mae and Freddie Mac) after purchase by Gateway, remain eligible in accordance with agency salability and clients loan purchase and sale agreement

Resources

 

Please direct any questions to your Regional Sales Manager

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