Effective Monday, August 31st, 2020, Gateway First Bank, Correspondent Lending is making the following Client Guide Updates:

Gateway has reduced its minimum FICO requirement on all newly locked Government loan programs to 620.  This includes:

  • FHA, VA, HUD-184, SETH Goldstar, CAFA Gold 100, and GSFA Open Doors.
  • Conventional loans: must have a minimum of one credit score per borrower.  Borrowers with No Scores and/or non-traditional credit are ineligible
  • Appraisals with higher Collateral Underwriter (CU) Scores:  Gateway requires the CU data to be shared on all CU Scores of 4.0 or higher. Gateway Aggregator ID is AAZ008
  • Verbal Verification of Employment (VVOE) – Gateway has updated our policy to now require a Verbal VOE be completed within 10 business days of the loan closing.  An even shorter VVOE period and/or having the borrower(s)s sign a specific form that they are employed, is recommended at the time of loan closing.

Escrow Funds

As noted in chapter 4 of our client guide, Gateway requires the following closing requirements for Taxes, Hazard and Flood Insurance:

  • Taxes: bills due within sixty (60) days of the settlement date should be paid before or at settlement
  • Hazard & Flood Insurance:  Refinance loans must have a policy term remaining of at least 60 days after closing.  If insurance is due to expire within 60 days of closing, a paid receipt for the next year’s premium must be submitted.  For purchase transactions, first year premium must be paid on the Closing Disclosure or a paid receipt provided if POC

*Clients will be responsible for all tax and insurance (hazard and flood) payments due within 60 days of the purchase date.  Any payments that are due within this time frame, Gateway will require evidence of payment prior to purchase.  For any penalties associated with interest on taxes that are past due, Clients will be billed for any outstanding amounts.  In the event Gateway is required to pay taxes that are past due, Client will be responsible for any shortage amounts.

Please direct any questions to your Regional Sales Manager