Update to Agency LLPAs: Temporary Selling Requirements Related to COVID-19
Effective Wednesday, May 6th, 2020, Gateway First Bank, Correspondent Lending is updating the Agency LLPAs for loans in Early Forbearance and all Cash-out Refinance transactions as follows:
Loans in Early Forbearance
Effective for agency loans purchased on or after May 6th, 2020, Gateway First Bank, Correspondent Lending will align its COVID-19 Temporary Credit Policies with Fannie Mae LL-2020-06and Freddie Mac Bulletin 2020-12.
All 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 loan being sold to an agency, will 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
Agency Cash-out LLPAs
Due to current market conditions, effective Wednesday, May 6th, 2020, Gateway First Bank, Correspondent Lending is temporarily making adjustments to the Agency Cash-out LTV/Credit Score LLPA grids as follows:
Cash-out Refinance all terms = (2.000%)
Reminders:
Please note the above mentioned LLPAs are in addition to all other applicable LLPAs, and are not subject to the LLPA cap
Agency Cash-out refinances that enter into forbearance within 14 days of purchase by Gateway are subject to repurchase
Loans that are currently in forbearance are not eligible for purchase by Gateway
Please direct any questions to your Regional Sales Manager