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

May 5, 2020

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%)


  • 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

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