# Update to Agency LLPAs:  Temporary Selling Requirements Related to COVID-19

Source: https://www.gatewaycorrespondent.com/announcements/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-2020-06](https://share.plazahomemortgage.com/e2t/c/*W4mCcjP17f_XYW2PSt_q35kMxv0/*W30R-7B29WbBqVCm4tR8J0Z1Y0/5/f18dQhb0S3j46XvPVTM1x6QQC43JXW4-pTrs4_4v_sW5rhdd099Z9jkW5zkHnF7ZnFXwW8KtQZr8J8nQWVn9KWr5WWS2BW4JJhVC2Vl2BxW2SYNjb6H0l7fW4Fz4BX8KX_40N2kNG90fKggkW5F35pc3dtbydM5ls9kkjZ4kW5CG9Cd8tR6fKW5sg4WW30V4sxW5kqYCx4NnwLnV1h-zg8s8m6TW1Fqdf66vDrL2N4-zG955GXG2VXnWFJ7r29sHW2wvJD-1dGkCkW8nMtf26XRK-2VPvvrf4fd78yW33_hb-6mfDlKW2h4yHC7GK608W4NDql93TTCLHW6NBH0m1NQ-Q1W1Tk3-G6K7CCqW56BXTJ5gfjk_W6jKddy3KCDhsW21pdYL471g6hW1C1t6t1zKd3GW40Mq8J1mHRLRW6ypPF86kdNbHW32XX846kzDsBW92Y2nx2fW_pvW5XbbF16MqWDNN3-k8Gx1vxp1W2SFjdf8r4xnXW7GzP6T7fSH4SW2GJnLW1frdbmN7TVYGtK14_bN245l8VMDmS5W4xDz2V5SmQc9W5SfH1p1vTYMNW38wRDj6ZmqhdW87TQ-w8LRPCvW60T42d8Xvy-sf51Dqj102)and [Freddie Mac Bulletin 2020-12](https://share.plazahomemortgage.com/e2t/c/*W4mCcjP17f_XYW2PSt_q35kMxv0/*W1Ltjcj7SCTxsW482zvt6h7rSD0/5/f18dQhb0SfHq4y9_Z-W4Rq_Kb4T_wynW8qSQBM64R5NCVscQWH1SddPTW53DQ4N7KWBkDW31J62z30rtW6W32Gf4B8-y10rW8ZyPkH8Y6qlwW8v3mGX5tg24_W8v3jL565kj3jVVym635GyxP2W8mp2bw8p-Vr0N65kbg2Ndwr1N1nPcL4YlFd4W1lbmL06fP88cVNfj-q1nj43nVM_MQG7v4vH3VMBCtB2StQ5cW6FgYHn58_mntW5LL6VG1GgGq8W1YYV5x72nt_yW6sxxZJ86p750W1hn7fy1L43lfW5ZVy6S1MszZsW83snd07DRZsfW68S5FK1Ydyn1W6jV1BJ7p1GcJW1W5T_F7n78KqW1YWvDg6WFBbxW7m5nm982yXkGW7WBCqt1R-WrsW7HJypH2d0tfYW2hZmPr1WYQhKW76qkDk7CKnbmW1R393Y78nfKtN7XHbYMX6cCWW2PGKpw17rmYMN11rnNb4VjmlW6Mb7Tl1SyBcPW1KkM5L2XbYCCW7k9YsP7v31RtW7x3pFF2HFVZ1V9X2s04QDgwJVWWdpy7Lg8D9W9k51wZ5_5fgzW7T8Kjr4j4sXQW1tQ3N75FRm1YMLG01PrTzpYV1ltL56sf0-j103).

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***](https://www.gatewaycorrespondent.com/contact/sales/)