Seller’s Guide Chapter 1 – Overview ................................................................................................................................... 7 1.1 About this Guide ................................................................................................................................. 7 1.2 Announcements .................................................................................................................................. 7 1.3 Customer Support ............................................................................................................................... 7 Chapter 2 – Participation Requirements ...................................................................................................... 8 2.1 Application Process ............................................................................................................................. 8 2.2 Required Qualifications....................................................................................................................... 8 2.3 Required Documentation.................................................................................................................... 9 2.4 Sellers Using Non-Delegated Underwriting ...................................................................................... 10 2.5 Bonds, Errors & Omissions Insurance, and Directors and Officers Liability ..................................... 10 2.5A Provisions/Rider.......................................................................................................................... 11 2.5B Deductible ................................................................................................................................... 11 2.5C Cancellation ................................................................................................................................ 11 2.6 Approved Property Origination States.............................................................................................. 11 2.7 Internet Access.................................................................................................................................. 12 2.8 Underwriting Programs..................................................................................................................... 12 2.9 Notification of Significant Change..................................................................................................... 12 2.10 Legal Standing ................................................................................................................................. 13 2.11 Fair Lending Commitment .............................................................................................................. 13 2.12 Eligibility Maintenance.................................................................................................................... 13 2.13 Compliance Reporting Requirements ............................................................................................. 13 Exhibit A Contact Information ................................................................................................................ 14 Chapter 3 – Warehouse Lending ................................................................................................................ 15 3.1 Program Guide Matrix ...................................................................................................................... 15 3.2 Competitive Advantages ................................................................................................................... 15 Chapter 4 – Lock Requirements .................................................................................................................. 16 4.1 Lock Policy ......................................................................................................................................... 16 4.1A Policy Directives .......................................................................................................................... 16 4.2 Rate Sheet Availability ...................................................................................................................... 16 4.3 Best Effort Commitments ................................................................................................................. 17 12/11/18 Seller’s Guide Page 1 of 89 2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Seller’s Guide
Chapter 1 – Overview ................................................................................................................................... 7
1.1 About this Guide ................................................................................................................................. 7
1.2 Announcements.................................................................................................................................. 7
1.3 Customer Support............................................................................................................................... 7
Chapter 2 – Participation Requirements ...................................................................................................... 8
2.1 Application Process............................................................................................................................. 8
2.2 Required Qualifications....................................................................................................................... 8
2.3 Required Documentation.................................................................................................................... 9
2.4 Sellers Using Non-Delegated Underwriting ......................................................................................10
2.5 Bonds, Errors & Omissions Insurance, and Directors and Officers Liability .....................................10
2.5A Provisions/Rider..........................................................................................................................11
2.5B Deductible...................................................................................................................................11
2.5C Cancellation ................................................................................................................................11
2.6 Approved Property Origination States..............................................................................................11
2.7 Internet Access..................................................................................................................................12
2.8 Underwriting Programs.....................................................................................................................12
2.9 Notification of Significant Change.....................................................................................................12
2.10 Legal Standing .................................................................................................................................13
2.11 Fair Lending Commitment ..............................................................................................................13
2.12 Eligibility Maintenance....................................................................................................................13
2.13 Compliance Reporting Requirements.............................................................................................13
Exhibit A Contact Information ................................................................................................................14
Chapter 3 – Warehouse Lending ................................................................................................................15
3.1 Program Guide Matrix ......................................................................................................................15
3.2 Competitive Advantages ...................................................................................................................15
Chapter 4 – Lock Requirements..................................................................................................................16
4.1 Lock Policy.........................................................................................................................................16
4.1A Policy Directives..........................................................................................................................16
4.2 Rate Sheet Availability ......................................................................................................................16
4.3 Best Effort Commitments .................................................................................................................17
12/11/18 Seller’s Guide Page 1 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
4.4 Mandatory Commitments – Bulk Bids ..............................................................................................17
4.5 Pair-Off Fee Mandatory Commitments ............................................................................................18
4.6 Seller’s Commitment Management ..................................................................................................18
4.7 Rate Lock Extensions.........................................................................................................................18
4.8 Loans Delivered for Purchase – Purchase Review Period.................................................................19
4.9 Re-Locks ............................................................................................................................................19
Chapter 5 – Register and Upload Process...................................................................................................20
5.1 IMportal ............................................................................................................................................20
5.1A Registering a Loan, 3.2 File and Upload......................................................................................20
5.1B View Loan Disposition.................................................................................................................21
5.1C Delivery Cutoff Times..................................................................................................................21
5.1D Turn Times ..................................................................................................................................21
Chapter 6 – Underwriting ...........................................................................................................................22
6.1 Policy Directives ................................................................................................................................22
6.2 Approved Property Origination States..............................................................................................22
6.3 Mortgage Insurance Companies .......................................................................................................22
6.4 Appraisers on Probation/Restriction ................................................................................................23
6.5 Delegated Underwriting....................................................................................................................23
6.5A Condo Reviews Delegated Sellers...............................................................................................23
6.6 Non-Delegated Underwriting............................................................................................................23
6.6A Rush Request on Non-Delegated Underwriting .........................................................................24
6.6B Condo Reviews Non-Delegated Sellers.......................................................................................24
6.7 Manual Underwriting........................................................................................................................25
6.7A Suspending Loans .......................................................................................................................25
6.8 AUS Findings......................................................................................................................................25
6.9 Fannie Mae’s Collateral Underwriter................................................................................................25
6.10 Freddie Mac’s Loan Collateral Advisor............................................................................................26
6.11 Uniform Collateral Data Portal .......................................................................................................26
6.12 Weather Related Escrow Holdbacks ...............................................................................................26
6.13 Schedule of Fees .............................................................................................................................26
12/11/18 Seller’s Guide Page 2 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
6.14 Underwriting Scenario Questions ...................................................................................................27
6.15 Construction-to-Permanent Financing (Single Closing) ..................................................................27
6.15A Construction Loan Period .........................................................................................................27
6.15B Eligible Loan Purposes ..............................................................................................................27
6.15C Credit/Appraisal Document Age ...............................................................................................28
6.15D Loan Conversion Options..........................................................................................................28
6.16 Condominium Reviews ...................................................................................................................28
6.16A Fannie Mae ...............................................................................................................................28
6.16B Freddie Mac ..............................................................................................................................29
6.16C FHA............................................................................................................................................31
6.16D iQM ...........................................................................................................................................31
6.16 E VA .............................................................................................................................................31
6.16F Condo Review Package Submission ..........................................................................................32
Section 6.17 Special Approvals ...............................................................................................................32
6.17A Quality and Maintenance Expectations..................................................................................32
Section 6.18 Texas Refinances ................................................................................................................33
Chapter 7 – Roles/Responsibilities for FHA/VA Loans Non-Delegated.......................................................34
7.1 Approval and Setup...........................................................................................................................34
7.2 FHA Principal-Authorized Agent Relationship ..................................................................................34
7.2A Principal-Authorized Agent.........................................................................................................34
7.2B Sponsored TPO (Third Party Originator) .....................................................................................34
7.3 VA Loans............................................................................................................................................35
Chapter 8 – Escrow Holdback Policy...........................................................................................................37
8.1 Purpose .............................................................................................................................................37
8.1A Requirements .............................................................................................................................37
8.2 Eligible Property Types......................................................................................................................37
8.3 Ineligible Property Types ..................................................................................................................38
8.4 Loan Program Eligibility ....................................................................................................................38
8.5 Calculating Escrow Holdback Funds..................................................................................................38
8.6 Obtaining Approval for the Escrow Holdback...................................................................................39
12/11/18 Seller’s Guide Page 3 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
8.7 Escrow Holdbacks Newly Constructed Properties ............................................................................39
8.8 Escrow Holdbacks Existing Properties ..............................................................................................39
8.9 Non-Weather Related Improvements/Repairs.................................................................................40
8.10 Weather Related Improvements/Repairs.......................................................................................40
8.11 Non-Allowable Improvements/Repairs ..........................................................................................40
8.12 Escrow Holdback Agreement..........................................................................................................40
8.13 Loan Delivery...................................................................................................................................41
Chapter 9 – Disaster Declarations...............................................................................................................42
9.1 FEMA Disaster Declaration ...............................................................................................................42
9.1A Emergency Declarations .............................................................................................................42
9.1B FEMA Identified Individual Assistance Counties.........................................................................43
9.1C FEMA Identified Public Assistance Counties...............................................................................43
9.2 Re-Inspection Requirements.............................................................................................................43
9.3 Loan Programs without Appraisals ...................................................................................................44
Chapter 10 – Closing, Delivery and Purchase Review.................................................................................45
10.1 Closing Requirements .....................................................................................................................45
10.1A Closing Documents ...................................................................................................................45
10.1B First Payment Date ...................................................................................................................45
10.1C Signing Date on Closing Documents .........................................................................................45
10.1D Pre-paid Interest.......................................................................................................................45
10.1E Post – Payment Interest Charges on FHA Loans .......................................................................46
10.1FHigh Cost/High Fee Testing ........................................................................................................46
10.1G Countersigned Documents .......................................................................................................46
10.1H Power of Attorney ....................................................................................................................46
10.1I Manufactured Home Documents ..............................................................................................48
10.1J Texas Refinances........................................................................................................................48
10.2 Inter Vivos Revocable Trusts...........................................................................................................48
10.2A Important Elements of an Inter Vivos Revocable Trust............................................................49
10.2B Trust Documentation Required ................................................................................................49
10.2C Title and Title Insurance Requirements....................................................................................49
12/11/18 Seller’s Guide Page 4 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
10.2D Signature Requirements on Closing Documents..........................................................................50
10.3 Exception Title Insurance/Attorney’s Opinion of Title ...................................................................50
10.4 Electronic Signatures.......................................................................................................................53
10.5 Impound/Escrow Accounts .............................................................................................................54
10.6 Impac’s Ineligible List ......................................................................................................................54
10.7 File Delivery.....................................................................................................................................55
10.7A Delivery .....................................................................................................................................55
10.7B iQM Closing Requirements .......................................................................................................56
10.7C iQM Compliance Review...........................................................................................................56
10.7D Mortgage Electronic Registration System (MERS) ...................................................................56
10.7E HMDA........................................................................................................................................57
10.7F Property Hazard Insurance Coverage .......................................................................................57
10.7G Flood Insurance ........................................................................................................................61
10.7H Special Flood Hazard Area ........................................................................................................65
10.7I Seller Disbursed Closing Fees.....................................................................................................65
10.7J Mortgage Loan Seasoning .........................................................................................................65
10.7K Wire Instructions.......................................................................................................................65
10.7L Uniform Closing Dataset............................................................................................................66
10.8 Purchase..........................................................................................................................................66
10.8A Purchasable Loans ....................................................................................................................66
10.8B Government Loans....................................................................................................................67
10.8C Principal Balance Purchased .....................................................................................................67
10.8D Post Purchase Obligations ........................................................................................................67
10.9 Payment Reversals ..........................................................................................................................67
10.10 Loan History ..................................................................................................................................68
Chapter 11 – Post Closing ...........................................................................................................................69
11.1 Goodbye Letter ...............................................................................................................................69
11.2 Servicing Contacts...........................................................................................................................69
11.3 Transfer Letters...............................................................................................................................70
11.3A Mortgagee Clause.....................................................................................................................70
12/11/18 Seller’s Guide Page 5 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
11.3B Flood Certificates ......................................................................................................................70
11.3C MERS .........................................................................................................................................70
11.4 Trailing Documents .........................................................................................................................70
11.5 Recast Process.................................................................................................................................71
Chapter 12 - Schedule of Fees ....................................................................................................................72
12.1 Loan Purchase Fees.........................................................................................................................72
12.2 Additional Fees................................................................................................................................72
12.3 Post Closing Fees.............................................................................................................................72
12.3A Document Penalties..................................................................................................................72
12.3B Government Insurance Penalty ................................................................................................73
12.4 Right to Collect................................................................................................................................73
Chapter 13 – IMportal.................................................................................................................................74
13.1 Login................................................................................................................................................74
13.2 Administrator ..................................................................................................................................75
13.3 Menu Toolbar..................................................................................................................................75
13.4 Impac’s Ineligible List ......................................................................................................................76
13.5 Pipeline Views .................................................................................................................................77
13.6 Registering a Loan...........................................................................................................................78
13.7 Submitting a Loan for Underwriting ...............................................................................................80
13.8 Obtaining Loan Disposition and Viewing Conditions ......................................................................81
13.9 Uploading a Closed Loan.................................................................................................................82
13.10 Loan Navigation Menu Status Decoder ........................................................................................84
13.11 Locking Loans in IMportal .............................................................................................................85
13.12 Lock Extensions .............................................................................................................................88
13.13 Quick Pricer ...................................................................................................................................88
Chapter 14 - Expedited Purchase................................................................................................................89
14.1 Seller Process ..................................................................................................................................89
12/11/18 Seller’s Guide Page 6 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
Chapter 1 – Overview
1.1 About this Guide Impac Mortgage Corp.’s (“Impac”) Seller’s Guide (“Guide”) governs certain aspects of the business relationship with Impac’s approved mortgage loan sellers (each a “Seller” and collectively the “Sellers”). The Guide provides information to assist the Seller with transacting business with Impac from loan submission through the purchase of the loan.
Sellers are bound by the requirements of the Guide. Impac may terminate its relationship with the Seller at any time when the Seller fails to meet its obligations within this Guide.
1.2 Announcements Impac will issue periodic updates and announcements when changes are required in the Guide. Announcements will be provided as timely as possible, and will include an effective date of the change. The Seller is responsible to review and comply with any update and/or announcement issued by Impac.
Announcements, revisions or updates to the Guide are available on the Impac’s Correspondent website under Forms and Announcements at https://impaccorrespondent.com/announcements/.
1.3 Customer Support Contact your Relationship Manager and/or Account Executive with questions pertaining to specific loans, Impac’s loan program underwriting guidelines and system tools.
NOTE: Impac’s custom iQM loan program requires custom loan documents which are available at https://impaccorrespondent.com/forms-and-resources/. This website includes other Impac approved general forms for Sellers’ reference.
5/05/17 Seller’s Guide Page 7 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
Chapter 2 – Participation Requirements
2.1 Application Process Applicants interested in obtaining approval to become an Impac Seller should:
Access the Impac Correspondent website at https://impaccorrespondent.com/
Select Become a Seller link and select the Apply Now button
Complete the Correspondent Lender Questionnaire
Upon Impac’s receipt of the information, an Impac representative will contact the requestor to confirm the business channel, and forward the required application forms for completion.
2.2 Required Qualifications A Seller must:
Originate loans directly through their retail and/or wholesale operations.
Loans must be closed in the Seller’s name and use their warehouse line.
NOTE: Financial institutions subject to oversight by the FDIC, NCUA, OTS, Federal Reserve or Comptroller of the Currency are exempt from the warehouse line requirement.
Be properly licensed and authorized to originate and sell loans meeting Impac’s loan program underwriting guideline requirements.
Have been in business for at least two (2) years.
NOTE: Newer firms, the principals should have a minimum of seven years’ experience in mortgage lending.
Have a good reputation in the industry with proven references and a high level of professionalism and strong ethical standards.
Have a minimum tangible and verifiable net worth of $100,000 derived from current financial statements.
o For delegation of underwriting authority, a minimum tangible net worth of $1,000,000 derived from financial statements audited by a Certified Public Accountant is required. Refer to Section 2.4 Sellers Using Non-Delegated Underwriting for net worth requirements and other eligibility standards.
Maintain a current Errors and Omissions Insurance Policy and Fidelity Bond with a minimum coverage of $300,000 per occurrence.
Have a “good standing” rating with all governmental licensing and revenue collection agencies, including a public record clear of any significant civil or criminal judgments.
12/11/18 Seller’s Guide Page 8 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
NOTE: A Seller, whose firm has been suspended, is currently under investigation by governmental agencies or has an open judgment in excess of $25,000 will not be approved.
If a current Seller and if the above applies, the Seller will not be renewed to conduct business with Impac.
All principal officers, owners and/or partners must have an acceptable personal credit profile. In the case of corporations, the entity must have a satisfactory corporate report. Past credit difficulties will be reviewed on a case-by-case basis. A letter from the Seller explaining the derogatory item(s) is required; however, financial institutions subject to oversight by the FDIC, NCUA, OTS, Federal Reserve or Comptroller of the Currency may have the requirement waived.
All key personnel, as well as all names under which the Seller is currently doing business, will be
compared to state and local licensing data, the Freddie Mac Exclusionary List, HUD’s Limited
Denial of Participation List and any other verification deemed necessary to confirm the validity
of the information submitted for approval. An acceptable business credit report may be
required for approval, and will be ordered by Impac.
2.3 Required Documentation Sellers must provide the following documentation to Impac for review:
Completed Correspondent Lending Seller Application, signed and dated
Mortgage Loan Purchase and Sale Agreement, signed and dated
Completed Credit Consent, signed and dated
Corporate Resolution
Completed Loan Fraud Zero Tolerance form, signed and dated
Completed Power of Attorney, signed and notarized
Most recent two years audited and most recent interim unaudited financial statements (within the past five months)
Completed Anti Money Laundering and Suspicious Activity Reporting Attestation form, signed and dated
Current resumes for all principal officers and senior managers addressing mortgage experience
NOTE: Additional resumes may be required dependent upon requests for additional authority levels, e.g., for delegated underwriting approval.
Quality control policies, along with the most recent quality control audit report including management responses
Company’s Appraisal Independence Requirements (AIR) policy Agency approval letters, with approval date and ID number
Three (3) business references currently engaged in business with the Seller, including most recent investor scorecards, if available, from the investors
Proof of current fidelity bond or bankers bond and errors and omissions insurance with coverage meeting agency guidelines with a minimum of $300,000 per occurrence
12/11/18 Seller’s Guide Page 9 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
Copy of the Seller’s Third Party Origination (TPO) Policy and Procedures, if applicable
W-9 Form
Copy of wire instructions for each warehouse provider
Copy of company’s organization chart
Impac will determine the validity of information submitted for approval through state and national licensing search engines, Freddie Mac’s Exclusionary list, HUD’s Limited Denials of Participation list and other verification process deemed necessary. On occasion Impac may also order a current business credit report.
2.4 Sellers Using Non-Delegated Underwriting Eligibility requirements non-delegated Sellers are as follows:
A minimum tangible net work of $100,000 derived from financial statements audited by a
Certified Public Account is required. If financial statements are unaudited, liquid assets and
income must be supported by thee (3) consecutive month’s bank statements for operating and
investment accounts.
An onsite inspection for non-delegated Sellers must be completed within 30 days of approval. If
the inspection is not completed within the 30 day timeframe, the Seller will be suspended until
the inspection is completed.
At least one (1) year of Seller experience as evidenced by at least one (1) scorecard representing
20 loans purchased over a one (1) year period is required.
2.5 Bonds, Errors & Omissions Insurance, and Directors and Officers Liability Sellers must have a blanket fidelity bond or bankers bond and an errors and omissions insurance policy in effect at all times that satisfy current agency guidelines. These policies must insure the Seller against losses resulting from dishonest or fraudulent acts committed by the Seller’s personnel, any employees of outside firms that provide data processing services for the Seller and temporary contract employees or student interns.
The fidelity bond also should protect against dishonest or fraudulent acts by the Seller’s principal owner, if the Seller’s insurance underwriter provides such coverage. The Seller must also obtain a direct surety bond to cover any officers, including its principal owner, if not covered by the fidelity bond.
Coverage for fidelity bond and errors and omissions, must be based on the Seller’s total servicing portfolio, residential and commercial loans, which the Seller services itself and all other investors, including Impac, during the preceding 12 months. If the Seller does not service any loans it originates, minimum coverage of $300,000 is required.
12/11/18 Seller’s Guide Page 10 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
Calculations are as follows:
Total Portfolio Minimum Coverage Required
$100 million or less $300,000
More than $100 million but no more than $500 million $300,000 + 0.15% of total portfolio exceeding $100 million
More than $500 million but no more than $1 billion $900,000 + 0.125% of total portfolio exceeding $500 million
Over $1 billion $1,525,000 + 0.1% of total portfolio exceeding $1 billion
2.5A Provisions/Rider
Each fidelity bond or errors and omissions insurance policy must include the following provisions in the policy or by separate rider:
The insurer will name Impac Mortgage Corp., as an investor, as loss payee on payment drafts issued by the insurer for losses to Impac resulting from acts or omissions covered by the insurance.
The insurer is to give Impac, as an investor, the right to file a claim directly with the insurer, should the Seller fail to do so, on losses to Impac resulting from acts covered by the insurance.
2.5B Deductible
The policy’s deductible clause may be for any amount up to the greater of $100,000 or 5% of the face amount of the bond.
2.5C Cancellation
The insurance policy must specify the insurer will notify Impac of any cancellation or reduction of coverage within 10 days of such an occurrence.
2.6 Approved Property Origination States Impac purchases closed loans from all states except as follows:
Sellers must be approved to submit closed loans originated under the Texas Section 50(a)(6) Equity Cash Out law. Contact an Impac representative for requirements.
Impac’s iQM loan program is ineligible as follows: o In the State of Ohio o Although Impac is licensed in New York, we are not currently taking applications. Please
check back periodically. o Interest-only feature in the State of Illinois, and o Interest-only feature using the Texas Section 50(a)(6) Equity Cash Out transactions.
Impac’s government loan programs using the Texas Section 50(a)(6) Equity Cash Out transaction are ineligible as follows:
o FHA o VA
12/11/18 Seller’s Guide Page 11 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
2.7 Internet Access Impac’s website https://www.ImpacCorrespondent.com provides Sellers with access to Impac’s Guide, loan program underwriting guidelines and announcements.
NOTE: Sellers must contact their Relationship Manager to request credentials to gain access to Impac’s secure IMportal website to upload Fannie Mae 3.2 files.
2.8 Underwriting Programs Impac offers a Delegated Underwriting program, where the Seller must be approved to
underwrite conventional and government loans prior to submitting the closed loan to Impac for purchase.
o Conventional: There are no specific eligibility requirements on agency loan programs. Impac’s iQM loan program is ineligible as a Delegated loan program.
o Government: Eligibility requirements are as follows: FHA loan transactions - Seller must be an approved HUD lender with an
assigned FHA ID number, and a Direct Endorsement Underwriter on staff, or VA loan transactions - Seller must have an approved Lender Appraisal Processing
Program – Staff Appraisal Reviewer (SAR) approved Underwriter on staff. o Sellers must reflect a tangible net worth of at least $1,000,000 as derived from financial
statements audited by a Certified Public Accountant. Failure to maintain the minimum net worth may result in the suspension of the Seller’s delegated underwriting authority.
Impac offers a Non-Delegated Underwriting program, where Impac provides full underwriting based on Impac’s loan program underwriting guidelines on the following:
FHA
Fannie Mae
Freddie Mac
iQM
VA
All loan approvals are subject to a compliance and closing document review by an Impac due diligence reviewer and an internal Impac Quality Control review.
Refer to Chapter 10, Closing, Delivery and Purchase for more information.
2.9 Notification of Significant Change Seller’s must notify Impac in writing of any contemplated major changes in its organization, including with its notice copies of any filing with, or approvals from, its regulators. Significant changes where notification is required include, but are not limited to:
Any mergers, consolidations or reorganizations Any direct or indirect material change in ownership (15% share or greater) including any change
in ownership of the Seller’s parent, any owner of the parent, or any beneficial owner of the Seller that does not own a direct interest in the Seller.
12/11/18 Seller’s Guide Page 12 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
Any change in corporate name
Any change from a federal charter to a state charter (or vice versa) when the Seller is a savings and loan association or a bank
A material adverse change in financial condition
The sale of a substantial portion of the Seller’s assets or a line of business
Refer to Exhibit A Contact Information.
2.10 Legal Standing Seller must be well-organized, validly existing and in good standing under the laws of the jurisdiction of its organization, and be qualified to transact business in each jurisdiction where it originates and/or service mortgage loans.
Seller must:
Not violate any provisions of the Seller’s articles of incorporation, charter or by-laws, or any other documentation relating to the conduct of the Seller’s business or ownership of its property.
Have a ‘good standing’ rating with all governmental licensing and revenue collection agencies, including a public record clear of any civil or criminal judgments.
2.11 Fair Lending Commitment Impac is fully committed to the principle all credit decisions should be made without regard to race, color, religion, national origin, sex, marital and familial status, military status, disability, age (provided the applicant has the capacity to contract and the applicant is of an age meeting the underwriting requirements for the loan program), or any other basis prohibited by law. Impac fulfills this commitment while maintaining prudent credit discipline and sound business practice.
Impac recognizes affirmative steps must be taken to ensure this principle is applied consistently and continuously throughout all aspects of its credit operation, including product design, sales and marketing, underwriting, training, performance evaluation and servicing practices.
2.12 Eligibility Maintenance Sellers approved for participation in Impac’s Correspondent Lending Program must continue to meet the eligibility requirements outlined in this chapter in order to maintain eligibility and participation approval.
On an annual basis, the Seller must deliver to Impac, audited financial statements for the preceding fiscal year.
2.13 Compliance Reporting Requirements Sellers subject to the jurisdiction of any governmental agency or state or local regulatory agency (e.g., Fannie Mae, Freddie Mac, HUD, VA or FDIC), the Seller must deliver copies of any disciplinary action taken by such agency, including suspension or termination of the Seller’s selling or servicing rights, within three business days of any such action.
12/11/18 Seller’s Guide Page 13 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
Exhibit A Contact Information
Who at Impac to Notify To obtain approval to send closed loans for purchase, use the following primary contact:
Marcus A. Rodriguez National Wholesale Manager 949-475-4913 [email protected]
Send updates on fidelity bond and/or errors and omissions insurance policy to one of the following:
Impac Mortgage Corp. Correspondent 19500 Jamboree Road Irvine, CA 92612 Attn: Client Administration
Via Client Admin’s secured document website: https://submissions.impacmortgage.com/client.administrator
Send an email to [email protected]
Send notification of major changes in ownership, mergers, consolidations, etc. and annual updated financial statements one of the following:
Impac Mortgage Corp. 19500 Jamboree Road Irvine, CA 92612 Attn: General Counsel
Via Client Admin’s secured document website: https://submissions.impacmortgage.com/client.administrator
Email scanned package to: [email protected]
Send notifications received from any governmental agency or quasi-governmental agency (e.g., Fannie Mae, Freddie Mac, HUD, VA, FDIC) within three business days of receipt of notification. Send overnight application packages and any compliance reporting requirements to one of the following:
Impac Mortgage Corp. 19500 Jamboree Road Irvine, CA 92612 Attn: General Counsel
Via Client Admin’s secured document website: https://submissions.impacmortgage.com/client.administrator
Email scanned package to: [email protected]
12/11/18 Seller’s Guide Page 14 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
Chapter 3 – Warehouse Lending
3.1 Program Guide Matrix Program Guide Preferred Premier Platinum
Net Worth $250,000 $750,000-$1,250,000 >$1,250,000
Borrowing Rate Prime + Spread
Eligible Loans Conv, FHA, VA, USDA, Manufactured Homes, Jumbos up to $3mm, 203k, HARP, Open Access and iQM loans
Eligible Investors Refer to Approved Investor List
Advance Rates Impac & Approved Partners iQM Other Investors
100% 95% - 97%
98%
100% 95% - 97%
98%
100% 95% - 97%
98%
E&O Fidelity Bonds $300,000 $300,000 $300,000
Reserve Account 1% of line amount
Operating Account Minimum balance $5,000
3.2 Competitive Advantages $2mm - $25mm Warehouse Lines
Streamlined approval process with daily reviews
National Lending Platform (Wet & Dry fundings)
Dedicated Team: fast, efficient, committed
Products include: iQM, FHA, 203(k), USDA, HARP, VA, Manufactured Homes, Conventional
Jumbos up to $3mm
Non Captive Warehouse lines
Same Day Fundings up to 4:00 PM EST
Robust list of Investors
Ask about 0 Haircut
Easy to accommodate Bulge Needs
Visit Warehouse Lending at: www.Impacwarehouse.com
Have a question? Warehouse Lending is always here to help. [email protected]
866-673-7926 Kathy Hancock
03/22/18 Seller’s Guide Page 15 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
Chapter 4 – Lock Requirements
4.1 Lock Policy This policy addresses the Seller’s pricing and lock requirements including rate lock and delivery options for Best Effort and Mandatory bulk commitments. Impac delivers a Best Effort Rate Sheet on a daily basis to approved Sellers.
4.1A Policy Directives
Pricing reflected on Impac’s Best Effort Rate Sheet is indicative of specific market conditions and is subject to changes throughout the business day without prior notice. Rate and prices are valid until 4:30 PM PST on the same day.
The rate sheet includes loan level price adjustments (LLPAs) as applicable to specific loan features.
NOTE: Product eligibility is not determined by LLPAs; refer to loan program underwriting guidelines for available agency and government programs.
Pricing for both Best Effort and Mandatory bulk commitment options include the service released premium (SRP).
Mandatory pricing options available:
Refer to Impac’s ratesheet pricing for Mandatory lock pricing.
Bulk bid commitments subject to market movement at time of execution.
All closed loans with complete Collateral packages must be delivered by 3:00 PM PST on or before the lock expiration date. The loan must be in purchasable condition. Refer to the Chapter 10 – Closing, Delivery and Purchase Review for specific information.
Excessive cancellations, fallout, or pair-offs will be grounds for review and reconsideration of Seller approval. Impac will research cancelled Best Effort commitments; should Impac determine the loan did close, the Seller will be assessed a pair-off fee for the delivery commitment amount, refer to Section 2.6 Approved Property States.
Impac reserves the right to charge an upfront fee for delivery commitments to Sellers with excessive fall-out. Confirmed double Best Effort commitments will be subject to a pair-off fee. Renegotiation of loan terms and pricing of any existing delivery commitment is not allowed.
4.2 Rate Sheet Availability Rate sheets are emailed to the Seller daily and may also be made available through a variety of pricing engine companies, such as, Encompass, MCT Trading, MIAC, MorTech/Marksman, Nylex/Loan Decisions, Optimal Blue (formerly known as Loan Sifter), Price my Loan (aka Lending QB, and Price Weaver).
05/05/17 Seller’s Guide Page 16 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
4.3 Best Effort Commitments Sellers commit to deliver an individual mortgage loan of a specified principal amount and quality to Impac. The Seller makes a best effort to deliver the loan to Impac on or before the expiration date.
Locks for an individual loan are available for a period of 15, 30, 45 or 60 days. Individual loan details are required at the time of the lock.
Loan locks follow the subject property, therefore, are non-transferrable.
Loan must be locked between the hours of 7:30 AM PST and 4:30 PM PST.
NOTE: Impac will provide a Lock Confirmation for each lock to the Seller.
Incomplete and/or inaccurate locks will not be processed.
Not available for loans aged more than 60 days; aged loans must be reviewed with all conditions cleared before being priced.
Loans are subject to a 100% due diligence review.
Purchase Reviews are conducted to ensure data file populated at time of registration and closed loan package do not have disparities. Sellers are notified of any pricing adjustments needed at time of loan purchase if the pricing is not correct.
Closed loans should reflect terms of the original lock commitment. o Forward locking is not allowed on the iQM loan product. The iQM loans cannot be
locked until the loan is approved in the system.
4.4 Mandatory Commitments – Bulk Bids Sellers may lock in rates and prices for periods of 15, 30, 45 or 60 days. Mandatory pricing is live and subject to market movement:
Pricing for bulk commitments must be requested by 11:45 AM PST. o Unless otherwise requested, all bids are indicative pricing and are subject to due
diligence review and market movement. All of Impac loan products are available for bulk bids.
o The request for bulk bid must be sent to [email protected].
Once the Seller agrees to the terms of the bulk commitment, Impac provides a Trade Confirmation.
o Sellers must provide the Fannie Mae 3.2 data file on each loan to Impac on the trade date by 2:00 PM PST.
Loan substitutions are not allowed.
Individual loan deliveries are acceptable throughout the term of the commitment period.
Loans must be acceptable to Impac’s underwriting guidelines and any overlays for all conventional fixed/ARM and government fixed loans.
Loans are subject to 100% purchase review.
05/05/17 Seller’s Guide Page 17 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
A purchase review is conducted to ensure data file populated at time of registration and closed loan package do not have any disparities. Corrections to pricing will be made if priced incorrectly by the Seller. Corrections favoring the Seller will not be made.
o If the loan is not purchased, a pair-off fee will be assessed.
For additional programs and incentives available, consult with your assigned Impac Account Executive for details.
4.5 Pair-Off Fee Mandatory Commitments Pair-off fees are calculated using a benchmark hedge instrument, the price of the instrument in effect on the day of the lock vs. the price on the day of the loan cancellation/withdrawal or the day after lock expiration, whichever comes first. The minimum pair-off fee is 12.5 basis points. If pair-off fee is not received within 90 days of invoicing, Impac reserves the right to offset fees due from any proceeds owed to Impac.
The example below compares benchmark pricing between the original lock terms to the current lock terms:
Based on $300,000 loan Current Market Worse Current Market Better Benchmark price day of lock 103.500 103.500
Current benchmark price 102.750 104.00
Price Spread 0.000 0.500
Pair-off fee (minimum) 0.125 0.000
New pair-off fee (minimum net pair-off of 0.125%) 0.125 0.500
4.6 Seller’s Commitment Management The Seller is solely responsible to ensure only authorized persons enter into commitments with Impac.
NOTE: Lists of authorized employees for the Seller are not maintained by Impac.
Impac relies on the Seller to provide accurate data with all commitment requests. Loans locked with inaccurate information are subject to a pair-off fee if the loan cannot be
purchased by Impac.
4.7 Rate Lock Extensions Rate lock extensions are calculated in calendar days and must be continuous. An initial lock request landing on a holiday or weekend will automatically extend to the next business day. Any extension requests falling on a holiday or weekend will receive communication from the LockDesk for the Seller to direct whether to roll the lock back or forward to an appropriate business day.
Extensions are available for loans that have not been received for purchase with the following restrictions:
The loan program and rates must be available and posted on the Impac Rate Sheet.
05/05/17 Seller’s Guide Page 18 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
Applicable extension fees will be posted on the daily rate sheet.
Extension requests must be submitted to the Impac Lock Desk any time before the lock expires and prior to delivery of the closed loan package.
The lock expiration date may be extended for a total lock period of 60 days, subject to the extension price adjustments outlined on the rate sheet in effect as of the extension date and time.
Refer to the following Section for restrictions on loans already delivered for purchase.
4.8 Loans Delivered for Purchase – Purchase Review Period Impac only purchases loans that are 1) in a purchasable condition, and 2) submitted with complete credit and funding documentation. Any missing documents or deficiencies must be resolved and provided to Impac before purchasing.
Loans delivered to Impac for purchase must have a valid lock date and loan package must be delivered for purchase on or before lock expiration date by 3:00 PM PST.
NOTE: If the loan is not locked at the time of loan delivery, Impac will require a lock prior to purchase and the above Purchase Review Period parameters will apply.
4.9 Re-Locks Sellers have the option to re- lock a commitment after the expiration date on Best Effort commitments only. A loan that has not been purchased by lock expiration date and is not extended is subject to worst case pricing and a .125% re-lock fee will be applied:
Additional restrictions apply to loan programs and may not be eligible under terms for re-locks or subject to additional fees.
Loans re-locked within 30 days of the lock expiration will use worst case pricing and be priced off the term of the original lock.
o Worst case pricing is calculated by comparing the base price from the original lock date to the current market base price, and use the lower price.
o Re-lock is available for a15 day period. o Loans are allowed a maximum of two (2) re-lock periods.
Loans re-locked more than 30 days after the lock expiration will be re-locked at current market price.
o Relock fee will apply. o LLPAs applied to the pricing at the time of relock will be used to calculate the new
pricing structure of the re-lock. o Loans are allowed a maximum of two (2) re-lock periods.
05/05/17 Seller’s Guide Page 19 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
Chapter 5 – Register and Upload Process
5.1 IMportal The Impac Correspondent IMportal is available as a single place for the Seller to:
Register loans
Lock loans
Deliver loans
Upload conditions for review and purchase
Retrieve Purchase Advice
The IMportal site is a proprietary front end portal communicating directly with Impac’s Loan Origination System, Ellie Mae’s Encompass. A single login credential is provided to each Seller user, with one user designated as the Administrator. The IMportal landing page has several dropdown options at the top of the page:
Dashboard snapshot providing loan status and locks expiring
Review Impac’s Ineligible List
Pipeline list of all the Seller’s loans (Active and Archived)
Loan Search capability to search for an individual loan
Register Loan capability to create an Impac loan number
Administrator capability to manage notifications
5.1A Registering a Loan, 3.2 File and Upload
Select Register Loan from the initial landing page. There are two options when registering a loan:
Manual Data Entry or
Upload of the 3.2 file – preferred method o Step 1 - Select Organization o Step 2 – Select the Loan Contact on the Correspondent Non-Delegated loans o Step 3 – Select Product Code o Step 4 – Click Browse to upload the 3.2 file o Step 5 - Select Citizenship Status o Step 6 - Enter Credit Score (lower of the mid-scores used if there are multiple
borrowers) o Step 7 - Enter loan number from Seller’s LOS (not a required field) o Step 8 – Once all fields are completed, click the Save button.
A pop-up will appear. Select Save for later to complete registration and create an Impac loan number. Select Submit to Impac to place the loan in queue for an underwriter or
purchaser to review if submission package was also uploaded using the 2nd
Browse button at time of registration. Otherwise disregard this step.
05/05/17 Seller’s Guide Page 20 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
Once all fields are completed, click the Save button. A pop-up will appear. Select Save for later to complete registration and create an Impac loan number.
Upload files using IMportal – Refer to Instructions for Accessing and Using the IMportal at: https://submissions.impaccorrespondent.com/
Select Forms and Resources
Select Instructions for Accessing and Using IMportal
Once the closed loan package has been uploaded, deliver the collateral package containing original documents via insured courier or overnight mail within 48 hours.
Refer to the Collateral Package Checklist for required documentation and delivery instructions at https://impaccorrespondent.com/forms-and-resources-2/
5.1B View Loan Disposition
To view the Loan Disposition:
Login to IMportal
Access the Loan Navigation Menu
Navigate to the Cond. Approval or Clear to Close milestone
Select Document Type
Select Loan Disposition
Select View Document
5.1C Delivery Cutoff Times
Credit packages and closed loan packages must be uploaded to IMportal by 3:00 pm PST to be considered delivered as the same day.
5.1D Turn Times
Refer to the Correspondent website for turn times at: https://impaccorrespondent.com/current-turn-times/
05/05/17 Seller’s Guide Page 21 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
Chapter 6 – Underwriting
6.1 Policy Directives The Seller must:
Originate loans directly through the Seller’s retail/wholesale operations.
Refer to Impac’s Product Matrices at: https://impaccorrespondent.com/products/# o Impac’s Loan Program and Underwriting Guidelines detail specific on loan programs offered.
Protect the integrity of the loans delivered and purchased by Impac, Sellers must use Impac’s Ineligible List as described in Section 10.6 Impac’s Ineligible List.
Loans are to be closed in the Seller’s name using the Seller’s warehouse line.
NOTE: Impac Warehouse Lending, Inc. provides financing on approved products.
6.2 Approved Property Origination States Geographical locations and restrictions are as follows:
Properties located in all states, including Washington D.C.
Exceptions: o iQM loans in the State of Ohio o Although Impac is licensed in New York, we are not currently taking applications. Please
check back periodically. o iQM interest-only loan program feature in the State of Illinois, and o iQM Interest-only feature using the Texas Section 50(a)(6) Equity Cash Out transactions, and o Impac’s government loan programs using the Texas Section 50(a)(6) Equity Cash Out
transactions as follows: FHA VA
6.3 Mortgage Insurance Companies Approved mortgage insurance companies include:
Arch Mortgage Insurance Company (formally CMG)
Essent Guaranty, Inc.
Genworth Mortgage Insurance
Mortgage Guaranty Insurance Company (MGIC)
National Mortgage Insurance
PMI (HARP loans only)
Radian
Republic Mortgage Insurance Company (HARP loans only)
United Guaranty
12/11/18 Seller’s Guide Page 22 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
Refer to individual Loan Program Underwriting Guidelines for eligible types of mortgage insurance coverage at: https://impaccorrespondent.com/products/#
6.4 Appraisers on Probation/Restriction Appraisals completed for a conventional or an iQM loan by an appraiser who has been placed on
probation or restriction by any state licensing bureau or regulatory agencies are not acceptable.
This requirement applies only to conventional and iQM loan products. Appraisers assigned by FHA and
VA are acceptable.
Sellers should review this requirement with all appraisal management companies to ensure they
determine if an appraiser is on probation or restrictions before assigning the appraiser to an appraisal
request.
6.5 Delegated Underwriting Sellers must be approved by Impac’s Client Administration in order to participate in Impac’s Delegated Underwriting program. Delegated underwriting is eligible on all of Impac’s loan programs, with the exception of the iQM loan programs which Impac’s prior approval is required.
Refer to Section 5 Register and Upload for specifics for registering and uploading loan files.
6.5A Condo Reviews Delegated Sellers
Delegated Sellers are responsible for obtaining a limited review and approval from agencies as follows:
Fannie Mae eligible loans – Limited Review
Freddie Mac eligible loans – Streamlined Review
Delegated Seller’s may certify an established condominium project meets all applicable Fannie Mae eligibility requirements, provided the Seller is approved with Fannie Mae using CPM.
If not approved with Fannie Mae, Impac’s Condo Review Desk must review the condominium package.
Refer to Impac’s Correspondent website to review the Correspondent Lending Condo Review Guide at: https://impaccorrespondent.com/uploads/pages/Correspondent/Forms/Condo%20Review%20Guide.pdf
6.6 Non-Delegated Underwriting Impac provides full underwriting on the following loan programs:
All Fannie Mae and Freddie Mac loan products
iQM o Loan cannot be locked until the loan is approved by Impac o Appraisal has been received by Impac o A clear-to-close has been issued
12/11/18 Seller’s Guide Page 23 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
FHA and VA o Impac’s FHA ID: 3086500000 o Impac’s VA ID: 902544-00-00 o
Refer to Section 7 Roles and Responsibilities for FHA and VA Loans detailing approval process through Impac for Sellers submitting FHA and/or VA loans for underwriting.
Loan approvals when issued are subject to conditions:
Impac’s review of all prior to purchase conditions, and Impac’s review of compliance and Quality Control on loan closing documents.
Loans re-submitted to underwriting more than two (2) times, after the initial submission, are ineligible for purchase by Impac.
6.6A Rush Request on Non-Delegated Underwriting
Non-delegated rush requests are available and requirements include:
A complete loan file must be submitted to Impac with the initial package. o A Loan Rush Request Form must accompany the loan package.
Rush Submission form is available at: https://impaccorrespondent.com/forms-and-resources/
o A copy of the Loan Rush Request Form must be emailed to the Seller’s designated Relationship Manager.
Rush turn times will be less than regular posted turn times and eligibility is determined by the Underwriting Manager and Vice President Client Management.
Rush requests are valid for the initial underwriting of the loan and clearing conditions associated with the loan file.
Rush requests submitted the last week of the month are not granted.
A $200 Rush Request fee is deducted from the loan proceeds at time Impac purchases the loan.
6.6B Condo Reviews Non-Delegated Sellers
Impac will obtain the following using Fannie Mae’s CPM:
Limited review approvals for Fannie Mae eligible loans
Streamlined review for Freddie Mac eligible loans
The Seller must receive a clear-to-close.
NOTE: Impac’s Condo Review Desk will review the condo package to certify an established condominium project.
Refer to Impac’s Correspondent website to review the Correspondent Lending Condo Review Guide at: https://impaccorrespondent.com/uploads/pages/Correspondent/Forms/Condo%20Review%20Guide.pdf
12/11/18 Seller’s Guide Page 24 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
6.7 Manual Underwriting Impac requires manual underwriting on the Impac iQM loan program.
6.7A Suspending Loans
On non-delegated loan submissions, Impac is charged with conducting a thorough and complete analysis of all loan packages submitted to underwriting. When additional information is needed before any type of decision can be issued, the loan status designation is suspended. All underwriting conditions are entered into Impac’s LOS, along with the reason for suspending the loan transaction. An auto-notification is sent to the Seller indicating: Please be advised your loan is currently in suspense status. Please log onto the IMportal for the list of your Prior to Approval conditions and download your Suspense Notice. Please note these conditions are due by (date auto-populates with a 7-business day timeframe).
The Suspense Notice and timeframe provides the non-delegated Seller time to respond with the information pertaining to the suspension. The IMportal Suspense Condition tab will be uploaded with the Suspense Notification. Both Impac Underwriter and the Seller will receive a reminder notification on business day 5 and business day 7 to follow-up; the Seller’s notification is found in the IMportal Suspense Condition tab. Suspended loans will be declined on the 8th business day. Once the loan is declined, the Seller must resubmit the loan as a new loan application.
6.8 AUS Findings Fannie Mae DU findings requirements must be met as follows:
All loan packages must contain the most recent dated DU finding. o DU findings dated after the Note Date requires Impac’s approval prior to purchase. o The initial DU findings cannot be dated after the Note date.
Property type on the DU finding is consistent with the property type in the loan file submitted for underwriting or purchase.
Freddie Mac LP findings require Impac’s Sellers to be a Third Party Originator:
A Seller is ineligible to submit a loan to LP after the Note Date. o All resubmissions must occur on or before the Note Date.
An Open Access loan, resubmitted after the Note Date and with the former mortgage paid off, may render Open Access as unavailable.
Additional conditions may be required when Impac obtains the results from the following prior to purchase:
Fannie Mae Early Check
Freddie Mac Loan Quality Advisor
6.9 Fannie Mae’s Collateral Underwriter Fannie Mae’s Collateral Underwriter (CU) identifies appraisals with heightened risk pertaining to property eligibility or policy as follows:
12/11/18 Seller’s Guide Page 25 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
Compliance violations
Overvaluation
Appraisal quality issues
6.10 Freddie Mac’s Loan Collateral Advisor Freddie Mac’s Loan Collateral Advice (LCA) returns two independent risk scores pertaining to property
eligibility or policy as follows:
Valuation Risk Score assessment of overvaluation or undervaluation relative to Freddie Mac’s
Home Value Explorer.
Appraisal Quality Risk Score assess multiple components of the appraisal, including quality, data
accuracy and completeness of the appraisal report.
6.11 Uniform Collateral Data Portal An automated risk assessment of the appraisal submitted to the Uniform Collateral Data Portal returns:
Risk score
Flags
Message to the submitting individual
6.12 Weather Related Escrow Holdbacks Impac expects property to be 100% complete when the loan is delivered to Impac for purchase; however, on occasion an exception is made. Impac has established requirements for the purchase of a loan subject to funds held in escrow for the completion of improvements post-closing.
Refer to Section 8 Escrow Holdback Policy of this Guide for detailed specifics.
Closed loans with an escrow holdback are limited to only purchase transactions and are eligible as follows:
Fannie Mae, Freddie Mac and FHA loan programs, and
Owner-occupied, second home and non-owner occupied property, and
Prior approval of the Escrow Holdback by Impac, and
Marketability of the property is not affected by the incomplete property, and
Postponed improvements do not affect the livability, soundness or structural integrity of the property.
The Seller on Fannie Mae and Freddie Mac loans must ensure sufficient funds are withheld by the closing agent for the escrow completion and the funds are documented on the Closing Disclosure.
To comply with Ginnie Mae (FHA loans), Impac must hold and authorize disbursement of the funds held for the purpose of the escrow hold back and the funds must be documented on the Closing Disclosure.
6.13 Schedule of Fees Refer to Chapter 12 Schedule of Fees for detailed underwriting fees.
12/11/18 Seller’s Guide Page 26 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
At the time of wire, any Underwriting fee(s) will be deducted from the net proceeds wired at the time of loan purchase.
A Cancellation Fee will be billed to the Seller, if the loan is underwritten and approved by Impac and is subsequently cancelled.
If a loan is underwritten and approved by an Impac Underwriter, and is not cancelled, but remains inactive, the Underwriting fee will be billed to the Seller after 45 days have lapsed from the loan approval date.
6.14 Underwriting Scenario Questions Regardless of the underwriting option being used, Impac welcomes all questions pertaining to a particular loan scenario, or Impac’s Loan Program and Underwriting Guidelines.
Questions may be directed to Impac at the Correspondent Underwriting email address at: [email protected]
6.15 Construction-to-Permanent Financing (Single Closing) Single-closing transactions may be used for both the construction and the permanent finance if the
borrower chooses to close on both the construction loan and the permanent financing at the same time.
Impac will not purchase the loan until the construction is completed and the terms of the
construction loan have converted to the permanent financing.
6.15A Construction Loan Period
The loan must be structured as a temporary loan exempt from the ability to repay requirements under
Regulation Z. The construction loan period for a single-closing construction-to-permanent transaction
may have no single period of more than 12 months, and the total period may not exceed 18 months and
the maximum term of the loan may not exceed 30 years, disregarding the construction period.
6.15B Eligible Loan Purposes
A single-closing construction to permanent transaction may be closed as one of the following:
Purchase
Limited cash-out refinance
When a limited cash-out refinance transaction is used, the borrower must have held legal title to the lot
before he/she applied for the interim construction financing.
The borrower is using the proceeds from the construction financing to pay off any existing liens
on the lot and finance the construction of the property.
This type of transaction is not a “true” limited cash-out refinance whereby the borrower
refinances a loan(s) that was used to purchase a completed property; however, all other
requirements for limited cash-out refinances apply.
12/11/18 Seller’s Guide Page 27 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
NOTE: Cash-out refinance transaction are not eligible for single-closing construction-to-permanent
mortgages.
6.15C Credit/Appraisal Document Age
Single-closing transactions with credit and appraisal documents dated more than 4 months but not
exceeding 18 months old at the time of the conversion to permanent financing are eligible for delivery if
all of the following conditions are met at the time of the original closing of the construction loan:
The documents were dated within 120 days of the original closing date of the construction loan.
The LTV, CLTV and HCLTV do not exceed the requirements detailed in the Fannie Mae Selling
Guide (B5-3.1-02).
The borrower meets the minimum credit score detailed in the Fannie Mae Selling Guide (B5-3.1-02).
The loan casefile was underwritten through DU and received an Approve/Eligible
recommendation. Manual underwriting is ineligible.
If any one of the above conditions was not met or an eligible loan term was modified subsequent to the
last DU submission, the Seller must do the following:
Obtain updated credit documents and an appraisal update completed and on an Appraisal
Update and/or Completion Report (Form 1004D), and
Re-qualify the borrowers before the mortgage loan is delivered to Impac.
6.15D Loan Conversion Options
The construction loan may be converted into a permanent mortgage loan as detailed in the Fannie Mae
Selling Guide (B5-3.1-02.
6.16 Condominium Reviews Condominium review requirements vary depending on the investor and whether the loan is Delegated
or Non-Delegated Underwriting.
6.16A Fannie Mae
The DU findings indicate the type of condominium review required. The following information is eligible
on ARM and Fixed Rate Fannie Mae loan products on attached and condominiums in established
condominium project.
DU review requirements for owner occupied and second homes outside of Florida are as follows:
Limited Review if: o LTV is less than 90% for owner occupied o LTV is less than 75% LTV for Second Homes
Condo Project Manager (CPM) Expedited Full Review required on all Investment properties
Requirements for Florida properties are eligible only as an owner occupied or second home as follows:
12/11/18 Seller’s Guide Page 28 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
LTV must be 75% or lower for owner occupied
LTV must be 70% for Second Homes
DU Limited Review for Non-Delegated Sellers to include a completed Limited Review Condo Package and include
the following with the underwriting loan submission:
Appraisal report
Completed Limited Review Questionnaire
DU findings indicating the property type is a condominium
Flood Certification
Master Insurance policy and evidence of HO-6 coverage
Preliminary title report
Verify the Project Classification is completed on the 1008
Delegated Sellers are to include approvals with supporting documentation on limited reviews for Fannie
Mae eligible condos at the time the loan file is submitted for purchase.
On a CPM Expedited Full Review sellers are to upload to IMportal a completed Condo Review Request
and the following with an email to the Condo Review Department and the assigned Relationship
Manager.
Current year’s budget
Appraisal report
DU findings showing the property type is a condominium
Flood Cert
Full Review of Established Condominium Project Questionnaire completed by the HOA
Master Insurance policy and evidence of HO-6 coverage
Preliminary title report
Verify the Project Classification is completed on the 1008
Covenants, Conditions and Restrictions (CCRs) and By-laws
Delegated Sellers who are Fannie Mae approved Sellers may certify an established condominium project
meets Fannie Mae eligibility requirements.
DU Refi Plus does not require a project review; confirm the Master Insurance policy and the HO-6
insurance coverage have not expired.
6.16B Freddie Mac
The LP findings will indicate the type of condominium review required. The following information is
eligible on ARM and Fixed Rate Freddie Mac loan programs on attached and detached condominiums.
LP Findings are to be reviewed for occupancy and LTV to determine if a CPM is required. Requirements
for owner occupied and second homes outside of Florida are as follows:
12/11/18 Seller’s Guide Page 29 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
Streamlined Review if: o LTV is less than 90% for owner occupied
LTV is less than 75% for second home
A CPM Expedited Full Review is required if the LTV is greater than 90%
Requirements for Florida properties are eligible only as an owner occupied or second home as follows:
LTV must 75% or lower for owner occupied
LTV must 70% for Second Homes
For an Expedited Full Review Sellers are to upload to IMportal a completed Condo Review Request and
the following with an email to the Condo Review Department and the assigned Relationship Manager.
Current year’s budget Appraisal report
CCRs and By-Laws
Flood Certification
Full Review of Established Condominium Project Questionnaire completed by the HOA
LP findings indicating the property type is a condominium
Master Insurance policy and evidence of HO-6 coverage
Preliminary title report
Verify the Project Classification is completed on the 1008
Freddie Mac accepts Fannie Mae’s CPM approval as follows:
Access https://www.fanniemae.com/singlefamily/condo-project-manager to determine if the condominium project is on the approved list.
Upload to IMportal the completed Condo Review Request and the following to Impac and email the Condo Review Department and the assigned Relationship Manager.
Current year’s budget Appraisal report
AUS finding indicating the property type as a condominium
CCRs and By-Laws
Flood Certification
Full Condo Questionnaire
Master Insurance policy and evidence of HO-6 coverage
Preliminary Title Report
LPA Open Access project review is not required; confirm the Master Insurance policy and the HO-6
insurance coverage have not expired.
12/11/18 Seller’s Guide Page 30 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
6.16C FHA
Property located in a condominium project using FHA loan programs, the condo project must be on the
FHA approved list and not expired. To determine if the condo is on the FHA approved list, access the
FHA Condo list at: https://entp.hud.gov/idapp/html/condlook.cfm
A condo review is not required as follows:
Owner-occupied streamline refinance
HUD REO loans
6.16D iQM
Condominium project requirements are as follows:
Condominium project must be Fannie Mae eligible
CPM eligible
Limited Review eligible
o Attached units eligibility are as follows:
Less than or equal to 80% LTV owner-occupied
Less than or equal to 80% LTV second Homes
Note: An attached condo in a new condo project is ineligible for Limited Review.
o Detached units are eligible for Limited Review per Fannie Mae guidelines.
iQM loans require manual underwriting and must include the following at the time of underwriting
loan submission:
Appraisal report
Completed Limited Review Condo Package
DU findings showing the property type as an condominium
Flood Certification
Master insurance policy and evidence of HO-6 coverage
Preliminary title report
Verify the Project Classification is completed on the 1008 Transmittal form
6.16 E VA
Property located in a condominium project using VA loan programs, the condo project must be on the
VA approved list. To determine if the condo is on the VA approved list, access the VA Condo listing at:
https://vip.vba.va.gov/portal/VBAH/VBAHome/condopudsearch
12/11/18 Seller’s Guide Page 31 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
6.16F Condo Review Package Submission
Send an email to [email protected] and the assigned Relationship Manager. Ensure the
Condo Review Request with the Full Review of Established Condominiums Project Questionnaire is
completed and upload to IMportal the following:
Current year’s budget Appraisal report
Condo Review Request with the Full Review of Established Condominium Project Questionnaire completed by the HOA, access the form at: https://impaccorrespondent.com/uploads/pages/Correspondent/Forms/Full%20Condo%20Revi ew%20Questionnaire_06-2015.pdf
CCRs and By-Laws
Flood Certification
Master Insurance policy and evidence of HO-6 coverage
Preliminary Title Report
NOTE: Ensure the Project Classification is completed on the Uniform Underwriting and Transmittal Summary Fannie Mae (Form 1008).
Section 6.17 Special Approvals Impac offers an option for Sellers who are delegated to underwrite eligible loans for Impac to submit
loans to Impac for underwriting when the Seller’s ability to underwrite loans is impacted by the
following:
Loss of an underwriter
The Seller has FHA approval, but has not yet begun their FHA test cases. Impac will not
underwrite test cases; however, Impac can act as a Sponsor for the Seller to underwrite FHA
loans.
The Seller is still working through FHA test cases. Impac can assist with underwriting loans not
included in the test case offering until the correspondent is a Full-Eagle lender. Impac will not
underwrite test cases.
VA loans for Non-supervised Lenders.
The Seller does not have a staff FHA or VA underwriter.
At the discretion of the VP of Client Management.
6.17A Quality and Maintenance Expectations
Requirements for the delegated Seller to participate in the Dual Channel option include:
For non-delegated underwriting services, the Seller must maintain a pull through of at
least 65%.
12/11/18 Seller’s Guide Page 32 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
The Seller must deliver loans using both delegated and non-delegated channels on a
rolling 90 day basis.
Sellers not maintaining dual channel submissions on a 90 day rolling basis will be moved
back to the channel being used for submitting loans.
Section 6.18 Texas Refinances Impac requires a copy of the Deed of Trust from the previous loan on any Texas Rate & Term Refinance
loan submitted for purchase.
If the loan is a 50(a)(6) being refinanced as a 50(a)(4) loan, Impac will also require an Affidavit Regarding
Conventional Refinance of a Home Equity loan signed by the borrower(s).
12/11/18 Seller’s Guide Page 33 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
Chapter 7 – Roles/Responsibilities for FHA/VA Loans Non-Delegated
7.1 Approval and Setup Seller must participate in an approval process through Impac’s Client Administration Department prior to being allowed to submit FHA and/or VA loans for non-delegated underwriting.
Impac reviews the Sellers process to be sure it complies with FHA and/or VA lending requirements and to ensure appraisals are ordered correctly.
Seller will be differentiated as either an “Approved Lender” or a “Non-Supervised VA Automatic Lender” for VA loans.
7.2 FHA Principal-Authorized Agent Relationship FHA provides for two relationship categories in “LEAP” (Lenders Electronic Assessment Portal) in FHA Connection. Impac’s Client Administration Department may set up the Seller in a Principal-Authorized Agent relationship for FHA loans. The Seller is designated as the Principal Lender and Impac is designated as the Authorized Agent.
7.2A Principal-Authorized Agent
This is only established between two Unconditional DE Approved Lenders. Responsibilities of the lender and agent are as follows:
Seller Lender (Principal Lender) Impac (Authorized Agent) Originate the loan
Obtain FHA Case Number reflecting both the Principal (Seller) and Agent (Impac’s lender FHA ID #)
Obtain CAIVRS
Upload FHA appraisal in EAD and review FHAC logging
Prepare closing documents
Close and fund loan
Responsible for paying the upfront MIP
Underwrite the loan
Update FHAC appraisal logging
Submit the loan to HUD for insuring
Loan will be insured in Impac’s name
7.2B Sponsored TPO (Third Party Originator)
This is established between Impac Mortgage Corp. as the unconditional DE Approved Lender, and an FHA Approved Lender who has not yet begun or completed their test cases. These are retail originations by the FHA Approved lender. Impac will not underwrite test cases. The Seller must assign the loan to Impac as a Sponsor when the case number is obtained. Responsibilities for the lender and Sponsored TPO are as follows:
Seller Lender (Sponsored TPO) Impac (DE Lender) Originate the loan
Obtain FHA Case Number with Impac shown as Sponsor
Obtain CAIVRS
Upload FHA appraisal in EAD and review FHAC logging
Complete Appraisal Logging
Prepare closing documents
Close and fund loan
Responsible for paying the upfront MIP
Underwrite the loan
Update FHAC appraisal logging
Submit the loan to HUD for insuring
Loan will be insured in Impac’s name
10/27/17 Seller’s Guide Page 34 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
7.3 VA Loans Impac may appoint (“sponsor”) any other lender with a VA number, without restrictions, to be Impac’s agent. This process requires specific approval and registration with VA. Loans may close in the lender’s name, providing Impac notifies VA of the agency relationship authorizing loan closing, and the VA loan is underwritten by Impac. Examples of different scenarios are outlined below.
A non-supervised automatic lender that has lost its VA underwriter and does not have a VA underwriter on staff may become an agent for Impac and close the loans in the lender’s name, providing the VA loan is underwritten by Impac, using Impac’s automatic closing authority. However, the lender must be proactive in replace their VA underwriter within a short period of time. VA approval of an underwriter is automatically terminated (without notice) if the underwriter is no longer employed by the same lender. The lender must report any such circumstances to VA. Further, the lender may not continue to close loans automatically without a VA-approved underwriter.
A non-supervised automatic lender in its probation period with VA may be an agent for Impac and close loans in their name, providing the VA loan is underwritten by Impac, using Impac’s automatic closing authority.
A supervised lender (e.g., bank) with a VA number, but no actual VA experience, may become an agent for Impac and close the loan in their name, providing the VA is underwritten by Impac, using Impac’s automatic closing authority.
VA defines a lender status as follows:
Lender Type Definition Supervised Lender Refers to banks and credit unions supervised by other government regulators. VA
approval is not needed. A supervised lender has the authority to close VA loans on an automatic basis.
Non-Supervised Lender
Refers to lenders that are not a supervised lender. A non-supervised lender must apply to VA for authority to close loans on an automatic basis. All loans must be reviewed by a VA-approved underwriter.
Prior Approval Lenders Refers to lenders that do not have a VA underwriter on staff and therefore, do not have automatic closing authority. The lender must send VA loans to VA for underwriting prior to closing the loan.
NOTE: Only a sponsoring lender/agent relationship would be allowed if the Seller wants to close VA loans using Impac’s underwriting authority.
If Impac is acting as a sponsoring lender for a Seller, Impac must submit a request for recognition of the agency relationship with Impac to the VA Regional Office that supervises Impac, by providing the following documentation to the VA Regional Office:
Impac’s Corporate Resolution, in a format acceptable to VA
Sponsorship application, available on the Impac Correspondent website, Exhibit A at the end of the section
10/27/17 Seller’s Guide Page 35 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
$100 fee payable to VA (paid by the Seller) NOTE: Prior to submitting a loan for underwriting the Seller must provide a copy of the VA Approval
letter designating the Seller as an approved agent, prior to submitting a loan for underwriting, to:
Impac’s Client Administration Department at: [email protected], and
Designated Relationship Manager
Reference: VA Lenders Handbook – Chapter 1: The Lender
http://www.benefits.va.gov/warms/pam26_7.asp
10/27/17 Seller’s Guide Page 36 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
Chapter 8 – Escrow Holdback Policy
8.1 Purpose Impac provides guidance for permitting loans to be purchased from a Seller with an escrow holdback.
Impac will purchase closed loans subject to completion of improvements/repairs to be completed post-purchase, provided the escrow holdback satisfies Impac’s requirements.
8.1A Requirements
The ability to close loans with escrow holdbacks are limited only to purchase transactions for
conventional and iQM loans. Impac must prior approve all requests for escrow holdbacks.
Escrowed funds must be held by the closing agent associated with the loan transaction.
Escrow holdbacks are eligible as follows:
Occupancy types: o Owner-occupied o Second homes o Non-owner occupied
No adverse effect to marketability due to the incomplete items noted on the appraisal
Postponed improvements do not affect the livability, soundness or structural integrity of the property.
The appraisal must indicate “as is” condition or “subject to improvements and/or repairs” and the repairs do not affect the safety, soundness, or structural integrity of the property.
NOTE: An escrow repair to existing property to facilitate a quick close is ineligible.
The Seller must ensure sufficient funds are withheld by the closing agent and the escrow completion funds are correctly documented on the Closing Disclosure.
8.2 Eligible Property Types Eligible property types include:
Newly constructed and existing o 1-4 units, detached o PUD, detached o Manufactured home (only allowed on Freddie Mac Conforming Loans)
Existing properties will be considered on a case-by-case basis as follows: o 1-4 units, detached o PUD, detached o Manufactured home (only allowed on Freddie Mac Conforming Loans)
05/22/18 Seller’s Guide Page 37 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
8.3 Ineligible Property Types Ineligible property types include:
Condominiums, attached
PUD, attached
8.4 Loan Program Eligibility Escrow holdbacks are eligible as follows:
Fannie Mae, Freddie Mac, and Impac’s iQM loan programs
Escrow holdback funds are not required when the following occurs:
Incomplete work is limited to the installation of landscaping features (e.g., lawns, shrubbery),
Estimate of the cost to complete the work is $500 or less, and
Work is expected to be completed within 90 to 120 days.
Fannie Mae and Freddie Mac’s escrow holdback minimum/maximum dollar amounts are as follows:
Minimum amount $500
Maximum amount $10,000, excluding the contingency reserve
The maximum amount repair/improvement on a Fannie Mae and Freddie Mac’s loan programs is 10% of
the property’s value (based on the lower of the purchase price or appraised value) or $10,000 which is
less.
iQM escrow holdback minimum/maximum dollar amounts are as follows:
Allowed for weather related repairs on purchase transactions only
Minimum amount $500
Allowable repairs are 5% of the property’s value (based on the lesser of the purchase price or
appraised value) or $10,000, whichever is less (excluding the contingency reserve)
o Maximum escrow holdback amount $15,000 – see example in Section 8.5
8.5 Calculating Escrow Holdback Funds The matrix below illustrates the calculation used on loan programs eligible for the Escrow Holdbacks.
Loan Program Required Escrow Holdback = 150% of the repair/improvement cost
Conventional Loan Example
(Fannie/Freddie)
Appraised Value/Purchase Price $150,000
Maximum Amount allowed for repairs $ 10,000
Required Escrow Holdback $ 15,000
iQM Loan Example Appraised Value/Purchase Price $2,000,000
Maximum Amount allowed for repairs $ 10,000*
Required Escrow Holdback $ 15,000
Allowable repairs are the lesser of 5% of the appraised value (based on the lesser of the purchase price or appraised value) or $10,000, excluding the contingency reserve
05/22/18 Seller’s Guide Page 38 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
8.6 Obtaining Approval for the Escrow Holdback Prior approval from the Escrow Holdback Team must be obtained before the closing documents are
signed. Upload the following documents to the IMPortal:
Copy of the appraisal describing incomplete items
Completed Request for Escrow Holdback
Itemized bid from a licensed contractor clearly identifying each item to be completed along with
an itemized estimate of cost for the repair/improvement
Copy of Contractor’s license and liability insurance
A letter of explanation if extra time is needed to complete exterior improvements because of
adverse weather-related conditions.
Purchase Contract
Upon receipt of all the above documents, Impac completes a thorough review of the package submitted.
Any missing documents will be conditioned; and upon receipt of the documentation and signoff of the
condition, Impac will clear the loan to close.
8.7 Escrow Holdbacks Newly Constructed Properties Exterior weather related items are eligible as follows:
Concrete flatwork
Driveways
Grading
Landscaping
Touch-up painting Other new construction items delayed due to adverse weather conditions are eligible as follows:
Extenuating circumstances (e.g., exterior cement work, excessive snow or cold weather below 55 degrees prevents the ability to paint and finish outside walls of the property.)
Shortage of building materials
8.8 Escrow Holdbacks Existing Properties An escrow holdback is only considered on dwelling related repairs for existing properties on a case-by-case basis.
Incomplete items must be minor in nature and must not affect the borrower’s safety or ability to live in the home, and
The dwelling must be habitable, safe and essentially complete.
Improvements/repairs are limited to items considered minor and are eligible as follows:
Cracked glass
Electrical repairs
05/22/18 Seller’s Guide Page 39 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
Minor plumbing
Minor painting
Screen replacement
8.9 Non-Weather Related Improvements/Repairs The improvements/repairs for the escrow holdback must be 100% complete with funds disbursed
before the loan will be purchased by Impac.
8.10 Weather Related Improvements/Repairs Impac will purchase closed loans prior to the improvements/repairs being completed only if the
improvements/repairs are weather related.
8.11 Non-Allowable Improvements/Repairs Improvements/repairs affecting the livability or marketability of a property are ineligible. Ineligible examples include, but are not limited to:
Any item negatively affecting the habitability of the property
Any items preventing the issuing of a Certificate of Occupancy
Any structural item (i.e., foundation, improvements to change the footprint or square footage of the property, etc.)
Clean-up and/or correcting environmental hazards
Heating, furnace installation/repair
Hot water heater
Roof repairs
Swimming pool
Termite infestation repair
Well/Septic (exceptions may be granted on property in Massachusetts to comply with Massachusetts Title V standards)
Escrow holdbacks are ineligible for future payment of property taxes, HOA dues, supplemental taxes, or fixtures (i.e., cabinets, kitchen center island; exclusive of bathroom fixtures).
8.12 Escrow Holdback Agreement All parties to the transaction must sign the Escrow holdback Agreement, including the seller(s),
borrower(s), closing agent and the Seller. The Agreement must address the following:
Amount of the holdback,
A thorough description of the work to be completed,
Specify a date for completion,
A statement indicating the work shall be satisfactorily completed and subject to a final
inspection, and
Specify who is responsible for the amount of the escrow holdback.
05/22/18 Seller’s Guide Page 40 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
Escrow holdback funds must be held by the closing agent/settlement agent/escrow officer. In no even
may the funds be held by the builder, contractor, seller or borrower.
8.13 Loan Delivery Closed loan packages submitted for purchase must include the following documentation evidencing the
improvements/repairs are 100% complete and the funds held by the closing agent/settlement
agent/escrow officer were released to the appropriate parties on closed loans submitted for purchase
when the improvements/repairs were non-weather related.
For loans with weather-related escrow holdbacks, Impac will purchase the closed loan prior to the
improvements/repairs being completed.
Copy of the final Closing Disclosure
Applicable final inspection reports (Fannie Mae 1004D) completed by the original appraiser with
photos. Appraiser must include statement that improvements comply with requirements and
conditions in the original appraisal report.
Final title policy evidencing no outstanding mechanic’s liens and no exceptions to the postponed
improvements/repairs. If the final title policy was issued before the completion of the
improvements/repairs, either an endorsement/title update ensuring the mortgagee’s first lien
priority or a lien waiver provided by the contractor is required.
Impac’s Escrow Holdback Team reviews the documentation to ensure the documentation provided
evidences the improvements/repairs were satisfactorily completed and done so within the agreed-upon
timeframe.
05/22/18 Seller’s Guide Page 41 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
Chapter 9 – Disaster Declarations
9.1 FEMA Disaster Declaration The Federal Emergency Management Agency (FEMA) declares disaster areas seriously impacted by natural or sociological hazards and/or catastrophes. FEMA identifies disaster declarations as follows:
Major Disaster Declarations
Emergency Declarations
Fire Management Assistance Declarations
Whenever an area is declared as a major disaster area, FEMA releases declaration announcements.
FEMA designates the type of assistance available as individual or public.
Impac monitors notifications received from FEMA and may delay purchasing loans from any designated major disaster area.
9.1A Emergency Declarations
FEMA designates Emergency Declarations and Fire Management Assistance Declarations on the Disaster Declarations page, however these are not federally declared disasters.
If a loan is secured by property located in an Emergency Declaration or Fire Management Assistance Declaration are on the FEMA website, the Seller is advised to exercise caution to ensure the proximity of the disaster to the location of the property results in the property being
free from damage and the disaster had no effect on the property value and marketability. For the latest disaster information go to: https://www.fema.gov/disasters
Impac will post FEMA notification on the Correspondent website at: https://impaccorrespondent.com/announcements/
The following Disaster Scenario Matrix indicates action required related to disasters types.
Disaster Scenario FEMA Designated Assistance Re-Inspection Requirements
FEMA declared disaster areas
Individual Loans with Appraisals: Subject to re-inspection described in Section 9.2 below
Loans without Appraisals: o When a non-catastrophic disaster is identified, a re-
certification is not required, as described in Section 9.3 below.
o When a catastrophic disaster is identified, Impac will determine requirements at that time, and will notify Sellers of requirements through an Announcement.
Public assistance or hazard mitigation assistance
Fannie, Freddie, FHA, and VA loan programs no action is required, and notification is not provided.
iQM loan programs are subject to re-inspection described in Section 9.2 below, and a notification is provided.
NOTE: Notification of catastrophic disasters (e.g., earthquakes, wildfires, major flooding) from different media sources may be communicated by Impac prior to FEMA issuing a disaster declaration, to address any potential property damage to loans in the existing pipeline.
10/02/17 Seller’s Guide Page 42 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
9.1B FEMA Identified Individual Assistance Counties
When FEMA has designated a county as eligible for Individual Assistance, Impac requires an interior and exterior re-inspection, with photos. Impac will allow the use of the following re-inspection documentation:
a Catastrophic Disaster Area Property Inspection Report (CDAIR), or
an Appraisal Update and/or Completion Report (Fannie Mae Form 1004D/Freddie Mac 442)
Preferably, the original appraiser will provide the CDAIR or Fannie Mae Form 1004D/Freddie Mac 442; however, Impac will accept the report from a substitute appraiser.
Regardless of the re-inspection document used, the appraiser must comment on the effect the disaster had on the value and marketability of the subject property. In the event significant damage is noted on the re-inspection, additional conditions may apply.
9.1C FEMA Identified Public Assistance Counties
When FEMA has designated a county as eligible for Public Assistance, Impac requires an exterior re-
inspection, with photos on all iQM loan programs. Impac will allow the use of the following re-
inspection documentation:
a CDAIR,
a Fannie Mae Form 1004D/Freddie Mac 442, or
a Property Inspection Report Fannie Mae Form 2075.
Regardless of the re-inspection form used, the appraiser must comment on the effect the disaster had
on the value and marketability of the subject property. In the event significant damage is noted on the
re-inspection, additional conditions may apply.
Impac reserves the right to request additional requirements depending on the extent of the disaster.
9.2 Re-Inspection Requirements The matrix below specifies the types of disasters where the Seller is to obtain the re-inspection on the subject property.
Disaster Type Required Inspection
Exterior Interior Earthquake X
Fire X
Tornado X
Flood X X
Hurricane X X*
*Due to the possibility of flooding
10/02/17 Seller’s Guide Page 43 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
A re-inspection is required for appraisals issued prior to the date of the last received FEMA disaster
declaration update for that particular county, to acknowledge the property is free from damage.
9.3 Loan Programs without Appraisals Generally, streamline loan programs are not affected when the property is located in an identified FEMA disaster declaration. However, when FEMA considers the disaster as catastrophic (e.g., Hurricanes Harvey and Irma), Impac will require an exterior re-inspection with photos, using a CDAIR or a Property Inspection Report (Fannie Mae Form 2075) on the following loan programs:
DU Refi Plus transaction with a Property Inspection Waiver (PIW),
LP Open Access, only a CDAIR form may be used,
FHA Streamline without an appraisal, or
VA IRRRL.
Note: Since there was not an original appraisal completed, a 1004D is not acceptable.
Impac may delay the purchase of a loan for any areas designated as a “disaster area” until Impac is certain the related property is free from damage.
Should you have any questions and/or concerns, contact your Relationship Manager.
10/02/17 Seller’s Guide Page 44 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
Chapter 10 – Closing, Delivery and Purchase Review
10.1 Closing Requirements Impac must receive the complete, true and accurate closed Mortgage Loan File from a Seller with the Loan Submission form no later than the Delivery Date reflected on the lock confirmation. Impac’s IMportal is available as a single place for registering, locking, and delivering loans for review and purchase.
Sellers must also provide originals of all documents required for the Collateral package to Impac via insured courier or overnight mail, for tracking purposes.
10.1A Closing Documents
The Seller must adhere to the following:
All Seller closing documents must meet the requirements set forth in specific Fannie Mae, Freddie Mac, FHA, and VA guidelines as available on individual websites or as otherwise specified by Impac.
Per diem interest calculations are based on the following: o 365-day year on FHA and VA loans o 360- or 365-day year on conventional loans, including iQM loan programs, unless
otherwise provided by specific state law or usury provisions.
The Seller’s Mortgage Electronic Registration System (MERS) registered loan Mortgage Identification Number (MIN) is required on each loans security instrument.
10.1B First Payment Date
The first payment date shown on closing documents must always show the first of the month.
10.1C Signing Date on Closing Documents
Impac will not purchase loans signed by the borrower(s) before the date on the closing documents.
10.1D Pre-paid Interest
When a loan closes in one month and the first payment is due the first of the following month a per diem interest credit is given for each day elapsed before the loan closing. Interest credits are allowed, unless otherwise stated in the loan program underwriting guidelines and a hardship letter is required to be signed by the borrower.
Conventional, Impac’s iQM and VA loans must fund and record by the 11th calendar day of the month preceding the month of the first payment date.
FHA loans must fund and record by the 8th calendar day of the month preceding the month of the first payment date.
NOTE: Impac will purchase loans with 62 days between the Note date and the first payment date when the loan is a Freddie Mac or iQM loan.
05/22/18 Seller’s Guide Page 45 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
Any FHA loan being paid off that closed before January 21, 2015, the payoff received from the current servicer requires careful review to determine if prepayment of interest other than the installment due date is required. Interest is calculated based on the actual payoff statement received from the servicer.
10.1E Post – Payment Interest Charges on FHA Loans
Impac requires the Seller adheres to FHA’s regulations for Handling Prepayments: Eliminating Post-Payment Interest Charges depending on when the FHA loan being paid off was closed. See FHA’s Information #14-74 (December 15, 2014) Newly Revised Form and Model Documents to Align with Eliminating Post-Payment Interest Charges and Changes to the Adjustable Rate Mortgage “Look-Back” Period Rules.
When the payoff statement includes the prepayment of interest other than the installment due date, the new refinance loan transaction must close and fund no later than the last day of the month.
If the payoff statement does not include the prepayment of interest on the payoff statement, the monthly interest must be calculated on the actual unpaid principal balance of the loan as of the date the payoff funds are received by the current servicer.
Any FHA loan being paid off closed on or after January 21, 2015, the monthly interest must be calculated on the actual unpaid principal balance of the loan as of the date the payoff funds are received by the current servicer; not as of the next installment due date.
10.1FHigh Cost/High Fee Testing
The Seller must represent and warrant the following:
The loan is not a high cost loan, as defined under Section 32 of the Home Ownership and Equity Protection Act of 1994 (HOEPA), and as defined by the state or municipal statute or regulation applicable to the loans property location.
The loan complies with the APR testing required by Section 35 of Regulation Z for Higher Priced Mortgage Loans (HPML).
NOTE: Impac will not recognize federal preemption of any predatory lending regulation or high cost regulation by federally-chartered entities. Impac reserves the right to perform high cost and/or high fee testing on any loan and reserves the right to refuse the purchase of any loan that exceeds federal, state or local high cost and/or high fee thresholds.
10.1G Countersigned Documents
Loans with borrower signatures on two separate pages of the same document are ineligible for purchase by Impac.
10.1H Power of Attorney
The Power of Attorney (POA) must be executed prior to the date of the Note. Impac will not accept a POA executed after the Note date, regardless of the state the loan document signing takes place (wet/dry states).
Additional requirements for using a POA at closing include the following:
05/22/18 Seller’s Guide Page 46 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
_____________________________________ _____________________
Seller’s Guide
Borrower’s signature is required on both the sales contract and the initial application to indicate the borrower’s intention to obtain a loan on the specified property.
The closing agent must approve the POA, ensuring the POA is recordable, meets any state specific acknowledgment/witness requirements and ensure the lien position is without exception to the POA.
The POA must state the purpose (e.g., the right to purchase or refinance real property).
The POA must be specific to the property, comply with state law and allow for the Mortgage Note to be enforced in the jurisdiction.
The POA must be notarized and include any state required notary acknowledgements, state specific witness requirements and any state/county specific recordation requirements.
A POA from someone in the military requires additional considerations as follows:
A borrower in military service and deployed outside the United States, Impac prefers a Military Power of Attorney be used. A specific POA is allowed, providing a letter of explanation is provided with the POA signer addressing the borrower’s military status.
VA loans: An “Alive and Well” statement is required at the time of the loan closing if a POA is used, whether or not the veteran is still in the military.
o An active duty veteran, the veterans Commanding Officer must complete the “Alive and Well” statement.
o When the “Alive and Well” certification is unable to be obtained, request assistance from the local CA office. It is not sufficient to document “…the spouse of the veteran said that the veteran cannot be contacted.” An “Alive and Well” statement is not required when using the VA IRRRL loan programs.
Correct signature lines on all loan closing documents must read as follows unless state requirements dictate otherwise. Ensure the settlement agent provides any state requirements.
John N. Doe by Jane M. Doe, his attorney in fact Date
NOTE: The borrower’s and attorney in fact’s names must appear on the loan documents exactly as the names are show on the Power of Attorney. The signature indicates that Jane M. Doe is executing the documents under a POA from John N. Doe.
A POA may not be used to sign documents when:
The vesting of the loan is held in an Inter Vivos Revocable Trust.
No other borrower executes the closing documents in the presence of a notary public. o An exception is when a POA may be used to sign closing documents, as long as the
attorney in fact is either the borrower’s attorney at law or the borrower’s relative. A Fannie Mae, Freddie Mac or iQM conventional loan as a cash-out transaction.
Unless the attorney in fact is the borrower’s relative, the following individuals to the transaction are ineligible to sign the closing documents as the attorney in fact:
Any employee of the Seller or any affiliate of the Seller,
05/22/18 Seller’s Guide Page 47 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
The loan officer or mortgage broker,
Any employee of the title insurance company providing the title insurance policy or any affiliate of such title insurance company, or
Any real estate agent with a financial interest in the transaction or any person affiliated with the real estate agent.
A borrower’s relative is eligible to sign as the attorney in fact and includes: any individual defined as the borrower’s spouse, child, fiancée, domestic partner, other dependent or any other individual who is related to the borrower by adoption, blood, marriage, or legal guardianship.
10.1I Manufactured Home Documents
When submitting collateral documents on a property secured by a manufactured home, the Seller must
ensure the security instrument indicates the manufactured home is secured by real property.
Refer to section 10.3 Exception Title Insurance/Attorney’s Option of Title to ensure the required ALTA
endorsements are included in the title policy.
10.1J Texas Refinances
The Seller must provide a copy of the Deed of Trust from the previous loan on any Texas Rate & Term
Refinance loan submitted for purchase.
If the loan is a 50(a)(6) being refinanced as a 50(a)(4) loan, the Seller must provide an Affidavit Regarding
Conventional Refinance of a Home Equity loan signed by the borrower(s).
10.2 Inter Vivos Revocable Trusts The Seller is responsible for ensuring loans with an Inter Vivos Revocable Trust the borrower satisfy agency requirements as summarized below:
A Living Trust is an inter vivos revocable trust meeting the following requirements:
The trust is created by one or more Settlors during his or her lifetime;
The trust becomes effective during the Settlor(s) lifetime (the Settlor is the primary beneficiary of the trust); and
Each Settlor retains the right during his or her lifetime to revoke or amend the trust.
Refer to Impac’s loan program underwriting guidelines for trust eligibility; any eligibility requirements specified for a trust in the guidelines must be met; and a Power of Attorney may not be used on an Inter Vivos Revocable Trust.
Dispensing legal advice to borrowers to deed the subject property out of the borrower’s trust to their individual names for purposes of obtaining financing is not recommended. Borrowers should be advised to consult a trust attorney regarding potential exposure for changing the title on the subject property.
05/22/18 Seller’s Guide Page 48 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
10.2A Important Elements of an Inter Vivos Revocable Trust
One of the Borrowers must be the creator of the trust. The creator of the trust is usually called the Grantor, Settlor or Trustor.
One of the Borrowers must be the trustee of the trust, or be an approved institutional trustee authorized to act as trustee under the laws of the applicable state.
One Borrower must be a primary beneficiary of the trust and this borrower’s income and assets are used to qualify.
The trustee(s) must have the authority to borrower money and pledge the trust property as security for the loan.
Abbreviated trust documents, such as a Trust Certification or Trust Abstract, may be submitted in lieu of the entire Trust Agreement provided all of the elements addressed above are satisfied or state law prohibits the entire Trust Agreement being provided.
The following terms are ineligible to be present in the Trust Agreement/Trust Certification:
Corporate Trust
Institutional Trust (not to be confused with institutional trustee)
Irrevocable Trust
Notification one of the Settlors has died (results in the trust becoming irrevocable)
Qualified Personal Residential Trust
Trusts established outside of the United States
10.2B Trust Documentation Required
The complete copy of the Trust Agreement or Trust Certification must be provided when the loan package is submitted for purchase. The Seller is responsible for ensuring the trust satisfies the following:
The trust was validly created and is duly existing under applicable law
The trust is revocable
The borrower is the person who created the trust and the beneficiary of the trust
The trust assets may be used as collateral for the loan
The trustee: o Is duly qualified under applicable law to serve as trustee o Is the borrower o Is the person who created the trust o Is fully authorized under the trust documents and applicable law to pledge or encumber
the trust assets
In lieu of the trust documents, the title company Trust Certification is acceptable for the following states: AL, AZ, CA, FL, ID, IN, IA, KS, MI, MN, MS, NE, NV, NM, NC, ND, OR, SC, SD, TX, UT, VA, VT and WV.
10.2C Title and Title Insurance Requirements
Title to the property must be vested in the name of the trustee(s) on behalf of the trust. The title insurance policy must not list any exceptions arising from the trust ownership of the property and provide full title protection to the appropriate agency.
05/22/18 Seller’s Guide Page 49 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
NOTE: Title is vested in the name of the trust. Property must only be vested to one trust.
10.2D Signature Requirements on Closing Documents Each trustee and each individual establishing an inter vivos revocable trust whose income and assets are used to qualify for the mortgage must separately execute the Note and any necessary addendum. Vesting language provided on the preliminary title report provides the verbiage for the closing documents.
Each trustee of the inter vivos revocable trust must execute the Security Instrument and any applicable rider. Each individual establishing the trust whose income and assets are used to qualify for the mortgage must sign a statement of acknowledgement on the Security Instrument and any applicable rider.
Each trustee of the inter vivos revocable trust must execute a revocable Trust Rider. Each individual establishing the trust whose income and assets are used to qualify for the mortgage must sign a statement of acknowledgement on the Revocable Trust Rider.
California properties: Use of Fannie Mae’s sample Rider is required. Reference: Fannie Mae Selling Guide E-2-05 o Other States: The Seller is responsible for verifying with the title company the Rider used
reflects the requirements of the state.
Each trustee and each individual establishing an inter vivos revocable trust whose income and assets are used to qualify for the mortgage on a refinance transaction must separately execute the Notice of Right to Cancel.
Examples of the signature lines to be used are as follows:
Closing Document Signature line requirements for California mortgages Mortgage Note for an individual trustee who is both a settlor and borrower:
________, individually and as Trustee of the (insert complete legal name of trust) Trust under trust instruments dated_______________.
Mortgage Note for an individual trustee who is not both a settlor and borrower:
________, as Trustee of the (insert complete legal name of trust) Trust under trust instrument dated _________.
Security Instrument for all trustees: ________, as Trustee of the (insert complete legal name of trust) Trust under trust instrument dated _________.
Inter Vivos Revocable Trust as Borrower Acknowledgment (may be a separate page signed by the borrowers individually and will apply to the Security Instrument and any riders, including the Inter Vivos Revocable Trust Rider).
BY SIGNING BELOW, the undersigned, Settlor(s) of the (insert complete legal name of trust) Trust under trust instrument dated ________, acknowledges all of the terms and covenants contained in this Security Instrument and any rider(s) thereto and agrees to be bound thereby. ________(Seal) Trust Settlor
Inter Vivos Revocable Trust Rider ________, as Trustee of the (insert complete legal name of trust) Trust under trust instrument dated _________.
Notice of Right to Cancel for an individual who is both a settlor and borrower.
________, individually and as Trustee of the (insert complete legal name of trust) Trust under trust instrument dated _________.
10.3 Exception Title Insurance/Attorney’s Opinion of Title Customary public utility subsurface easement exceptions for public utility subsurface easements for
local residential distribution, such as lines for gas and water, and cable for electric, telephone or
television utilities, are acceptable provided that the location of the easements were in place and
05/22/18 Seller’s Guide Page 50 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
completely covered when the mortgage was originated, as long as they do not extend under any
buildings or other improvements.
On above-surface public utility easement exceptions that extend along one or more of the property
lines for distribution purposes or along the rear property line for drainage purposes are acceptable,
providing:
The easement does not extend more than 12 feet from the property lines.
The easement does not interfere with any of the buildings or improvements or with the use of the property itself.
Restrictive agreement exceptions or restrictive covenants of record related to cost, use, minimum
dwelling size, or set back restrictions, are acceptable providing:
The easement violation will not result in a forfeiture or reversion of title or a lien of any kind for damages, or
Have an adverse effect on the fair market value of the property.
Mutual easement agreement exceptions for mutual easement agreements of record that establish a
joint driveway or party walls constructed on the security property and on an adjoining property are
acceptable as long as all future owners have unlimited and unrestricted use of them.
Encroachments on adjoining property exceptions of one foot or less by eaves or other overhanging
projections or by driveways are acceptable , as long as there is at least a ten-foot clearance between
the buildings on the security property and the property line affected by the encroachment.
Encroachments consisting only of hedges or removable fences on adjoining property are acceptable.
Oil, gas, water and mineral right exceptions for outstanding oil, gas, water or mineral rights are
acceptable if commonly granted by other lenders, as long as they do not materially alter the contour of
the property or impair its value or usefulness for its intended purposes.
Property line variations between the appraisal report and the records of possession regarding the
length of the property lines are acceptable, as long as the variations do not interfere with the current
use of the improvements and are within an acceptable range. (For front property lines, a 2% variation
is acceptable; for all other property lines, 5% is acceptable.)
Rights of lawful parties in possession are acceptable, as long as such rights do not include the right of
first refusal to purchase the property. (No rights of parties in possession, including the term of a
tenant’s lease, may have duration of more than two years.)
05/22/18 Seller’s Guide Page 51 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
Minor discrepancies in the description of the area are acceptable, as long as a survey and affirmative
title insurance against all loss or damage resulting from the discrepancies are provided.
Exceptions to Indian claims are acceptable, as long as the lender is insured against all loss and damage
from such claims.
Exceptions for liens for real estate or ad valorem taxes and assessments that specifically state that
such liens are not yet due and payable are acceptable.
Certain state laws provide a “redemption period” after a foreclosure or tax sale has occurred, during
which time the property may be reclaimed by the prior mortgagor or other party upon payment of all
amounts owed. Properties with an unexpired right of redemption are generally not eligible for
financing through Impac.
Endorsements are used to extend or make policy coverage more comprehensive for a particular title
issue. Some of the more commonly used endorsements are shown below; each endorsement is
subject to approval in the state where it will be issued or used.
Endorsement Required or its ALTA equivalent Required on All Loans
CLTA Form 110.9, ALTA 8.1 Provides insurance against loss of priority of Environmental Protection Liens recorded at date of policy.
CLTA Form 100 (or 102.4, 102.5)
Provides insurance against loss of present or future violations of CC&R’s, encroachment of improvements, and the rights to use the land surface for mineral development.
CLTA Form 116, ALTA 22-06 CLTA 116.2 (Condos) Designation of improvements, common address, location and dimensions.
CLTA 111.5, aka ALTA Form 6 or 6.1
All Adjustable Rate Mortgages
CLTA Form 115.1 ALTA 4 and 4.1
All Condominiums
CLTA Form 115.2 ALTA Form 5 or 5.1
All PUDs
CLTA Form 116.5, 116.6 ALTA Form 7, 7.1, or 7.2 ALTA Form 7.06 Manufactured Housing Unit ALTA 7.1-06 Manufactured Housing Unit-Conversion –Loan Policy ALTA 7.2-06 Manufactured Housing Unit-Conversion – Owner’s Policy
All Manufactured Homes
CLTA Form 119.6 ALTA Form 13.1-06
All Leasehold properties
ALTA 9 If surveys are not commonly required in particular jurisdictions, an ALTA 9 endorsement must be provided. If it is not customary in a particular area to supply either the survey or an endorsement, the title policy must not have a survey exception. However, if a title policy was issued without a survey exception, Fannie Mae will purchase or securitize a second mortgage secured by the same property even though it has a survey exception.
CLTA Form 100.23 Provides coverage against loss by reason of the exercise of surface rights for the extraction or redevelopment of minerals leased under an oil gas lease.
05/22/18 Seller’s Guide Page 52 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
Verification needed with title company for states outside of CA.
CLTA Form 103.5 For outstanding water rights: Insures against damage to improvements because of use of the surface for development of excepted water. Typically needed for rural properties without a municipal water supply. ALTA 9-06 only covers subsurface water. Verification needed with title company for states outside of CA.
CLTA Form 103.7 Provides assurance that the land abuts a specific, physically open public street. Verification needed with title company for states outside of CA.
CLTA Form 109 Provides insurance concerning assignments of the lessor’s interest under community oil and gas lease. Verification needed with title company for states outside of CA.
10.4 Electronic Signatures Electronic signatures on closing documents are ineligible.
Third party documents, such as a sale contract, are originated and signed outside of Sellers control. An electronically executed sales contract is considered valid when the signatures are by the correct parties and signed in all the required places; this is the same for non-electronic sales contracts. An indication of the electronic signature and date should be clearly visible when viewed as electronically or non-electronic.
Electronic signatures on sales contracts are not acceptable when:
A Power of Attorney (POA) is involved, or
A sales contract requires a notary.
FHA will now accept electronic signatures on documents included in the case binder for mortgage insurance. This does not pertain to closing documents. Documents this applies to include, but are not limited to:
Compliance Inspection Report
HUD’s Real Estate Owned (REO) Sales contract and related addenda
Real Estate Certification, Amendatory Clause, For Your Protection: Get a Home Inspection
New Construction exhibits (Builders Certification, Builder’s Warranty of Completion, Termite Reports)
Loan Application (URLA) and HUD/VA Addendum to the URLA 92900-A
Income verification documentation
Asset verification documentation, including gift letter
Fannie Mae/Freddie Mac/iQM/VA loan programs: The use of electronic signatures is acceptable on initial disclosure documents, including the loan application.
Initial disclosures are eligible to be electronically delivered on all loans. Once the borrower has e-consented to the electronic delivery and downloads all disclosures, a confirmation email must be generated to satisfy regulatory e-disclosure delivery requirements. The confirmation email must be included in the loan package at the time the loan is submitted for purchase.
05/22/18 Seller’s Guide Page 53 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
10.5 Impound/Escrow Accounts Escrow accounts must be established at closing for all first lien transactions, except where prohibited by state law or allowed by Impac. Refer to Impac’s loan program underwriting guidelines for loan-specific escrow waiver policies.
All payments of real property taxes, and special or supplemental assessment, hazard insurance and mortgage insurance must be paid current prior to loan purchase. Adequate escrowed funds, when required, must be collected and comply with all applicable laws for payment in full by the due date.
o Impac confirms the initial deposit for escrows shown on the final Closing Disclosure. Any discrepancies must be resolved prior to loan purchase.
The Seller is responsible for the payment of taxes and hazard insurance prior to Impac’s loan purchase date. Any undisbursed escrow funds will be netted form the Purchase Advice.
If Impac determines insufficient funds were collected for taxes or insurance, the correct amount will be netted from the Purchase Advice. The Seller is responsible for any penalties assessed on payments due prior to Impac’s purchase date.
Because Impac begins actively servicing the loan within 10 business days from the purchase date, the Seller is responsible for notifying the current servicer, as appropriate, to place Stops and/or Flags on their system to prevent further disbursements on the loan as of the sale date. Disbursements already made reflected on the loan history must be documented with proof of disbursement by providing a copy of the check and the invoice.
Refund requests for overpayment of an escrow account must be initiated by the Seller within 180 days of the purchase of the loan by Impac, which is consistent with the industry standard requirement.
10.6 Impac’s Ineligible List Impac may provide the Seller with information and documentation that Impac has identified as “confidential information.” The Impac Ineligible List is “confidential information,” and the Seller must not release or disclose or permit the release or disclosure of this confidential information, or any portion thereof, for any purpose at any time except to the extent:
Allowed in this section,
Expressly required or consented to by Impac in writing, or
Ordered by court of administrative agency.
Impac disseminates its Ineligible List as part of its Correspondent Lending program on an as-needed basis. Individuals and entities are placed on the Ineligible List as a result of an internal business decision by Impac that it does not wish to purchase any loans involving the individuals or entitles identified on the Ineligible List.
Impac’s Ineligible List is available using Impac’s IMportal. Screen parties involved in the origination of the loan before the loan is submitted to Impac. The Seller must use the Ineligible List on delegated and non-delegated loans submitted for purchase, to determine whether a person or entity was a party to
05/22/18 Seller’s Guide Page 54 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
the origination or delivery of the loan or in the underlying real estate transaction and appears on Impac’s Ineligible List.
Parties to the transaction include the following:
Borrower, Co-Borrower (s), Loan Originator’s Loan Officer, Loan Originator’s Company, Loan Originator’s Processor, Property Seller(s), Listing Agent Company, Listing Agent, Seller Agent’s Company, Sellers Agent, Buyers Agent’s Company, Buyers Agent, Appraisal Company, Appraiser, Escrow Company, Escrow Officer, Title Company, Title Officer and any AKAs (also known as), and
Any employee of the Seller involved in the origination, funding and delivery process of the loan to Impac.
Parties to the loan as described above are to be screened against the names listed on each of the tabs located on Impac’s Ineligible List. The tabs include:
Usage (describes list use and using it for other than intended purpose is expressly prohibited)
Additions
Updates
Removals
Individuals
Companies
Appraisers
Federal Housing Finance Agency Suspended Counterparty Program List
Other
Any findings identifying the borrower, co-borrower(s) or other individual or entity listed on Impac’s Ineligible List will render the loan as ineligible for delivery or purchase by Impac. Prior to the delivery of each loan submitted for purchase, both delegated and non-delegated Sellers must review the Ineligible List and ensure no person or entity whose name is listed played a role in the origination, funding or sale of a loan to Impac, or in the underlying real estate transaction.
The Ineligible List is not designed or intended to reflect upon the credit worthiness, business practices or integrity of the individuals and entities on the Ineligible List nor is it business practices or integrity of the individuals and entities on the Ineligible List nor is it meant to attribute any action, inaction, quality, characteristic or trait to those individuals and entities. Sellers are not prohibited from transacting business with the entities on the Ineligible List and may fund or sell any loan involving ineligible individuals and entities to any other lender or investor.
10.7 File Delivery
10.7A Delivery
Impac must receive the complete, true and accurate closed Mortgage Loan File from a Seller with the Loan Submission form no later than the rate lock expiration date reflected on the lock confirmation. Use of the IMportal is available as a single place for registering, locking, and delivering loans to Impac for review and purchase.
05/22/18 Seller’s Guide Page 55 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
Sellers must also provide originals of all documents required for the Collateral package to Impac via insured courier or overnight mail, for tracking purposes, no later than 48 hours prior to purchase or lock expiration date, whichever occurs first. Refer to the Collateral Package Checklist for required documentation and delivery instructions at: https://impaccorrespondent.com/uploads/pages/Correspondent/Forms/Collateral-Package-Checklist.pdf
The Seller is responsible for ensuring files containing the mortgage loan file package and collateral package satisfy Impac’s content requirements as described in the Loan Submission form. All mortgage loan file packages are typically reviewed within 72 hours of receipt, or as per the latest communication from Impac. The mortgage loan file package and collateral package are reviewed to confirm:
Correct document usage
Information on the documents are accurate, consistent, complete and executed properly
All necessary original documents are included
All Underwriting conditions are included
Should Impac fail to review or discover any deficiency or error in a mortgage loan file, the Seller remains responsible for providing any required documentation or correcting any errors.
If a mortgage loan file substantially conforms to Impac’s policies, but does not satisfy all underwriting, closing or delivery requirements, the loan will be suspended. Any suspended mortgage loan file not moved to an approved for purchase status by the lock expiration date is subject to extension, relock and/or to a pair-off fee, as detailed in Section 4 Lock Requirements of this Guide.
10.7B iQM Closing Requirements
Proof the Security Instrument has been recorded and the final Title Policy has been issued must be furnished prior to Impac’s purchase of the loan. The Seller’s closing instructions may include the following verbiage if this requirement cannot be met:
“After closing, agent will provide evidence of properly executed and recorded, or in process recording of all necessary instruments to assure the issuance of an ALTA Tile Policy.”
10.7C iQM Compliance Review
In addition to the manual underwriting requirement on all iQM loans, a compliance review by a third party vendor is conducted once the loan has been approved by underwriting. A second compliance review is required once the closing package and final closing conditions are received. The third party vendor must indicate the iQM loan is “cleared for purchase” before the loan is purchased by Impac.
10.7D Mortgage Electronic Registration System (MERS)
The following requirements apply to Seller access to MERS:
Seller agrees to maintain an active account with MERS and execute all closing documents with a valid MIN.
05/22/18 Seller’s Guide Page 56 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
The Mortgage Instrument must contain the MIN, which is obtainable by registering the loan in the MERS system.
Beneficial and Servicing rights to the loan should be transferred to Impac within the MERS system within 48 hours of the loan purchase, using the Impac Originator ID #1008597.
10.7E HMDA
The Home Mortgage Disclosure Act, Regulation C requires a Type of Purchaser Code to be identified on
an originated loan or a purchased loan. Impac’s Type of Purchaser Code is Code 71, and is identified as
Life Insurance Company, credit union, mortgage bank or insurance company.
10.7F Property Hazard Insurance Coverage
Property insurance for properties securing loans delivered to Impac must protect against loss or damage
from fire and other hazards covered by the standard extended coverage endorsement. The coverage
must provide for claims to be settled on a replacement cost basis. Extended coverage must include, at a
minimum, wind, civil commotion (including riots), smoke, hail, and damages caused by aircraft, vehicle,
or explosion.
Impac does not accept property insurance policies that limit or exclude from coverage, in whole or in
part, windstorm, hurricane, hail damages, or any other perils that normally are included under an
extended coverage endorsement.
Sellers should advise borrowers that they may not obtain property insurance policies that include such
limitations or exclusions, unless they are able to obtain a separate policy or endorsement from another
commercial insurer that provides adequate coverage for the limited or excluded peril or from an
insurance pool that the state has established to cover the limitations or exclusions.
Additional requirements apply to properties with solar panels that are leased from or owned by a third
party under a power purchase agreement or other similar arrangement. Refer to Fannie Mae’s Selling
Guide Chapter B2-3-04, Special Property Eligibility Considerations, for additional requirements. The
aforementioned is a completely separate arrangement than PACE loans, which Impac does not allow.
A first mortgage secured by a property on which an individually held insurance policy is maintained,
Impac requires coverage equal to the lesser of the following:
100% of the insurable value of the improvements, as established by the property insurer; or the unpaid principal balance of the mortgage, as long as it at least equals the minimum amount
80% of the insurable value of the improvements required to compensate for damage or loss on a replacement cost basis. If it does not, then coverage that does provide the minimum required amount must be obtained.
05/22/18 Seller’s Guide Page 57 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
Construction-to-Permanent Mortgages
Property insurance coverage is not required for some construction-to-permanent mortgages that are
covered by builder’s risk insurance during the construction period, although Impac’s standard property
insurance requirements apply for construction-to-permanent mortgages as soon as the borrower
occupies the property or the construction is completed.
Although the property insurance requirement for most home renovation or construction mortgage loans
initially is based on the “as is” value of the property, the amount of coverage must be increased, if
necessary, following the completion of the renovation or construction work to ensure that Impac’s
standard coverage requirement is satisfied.
Deductible Amount
The maximum allowable deductible for insurance covering a property, including common elements in a
PUD, condo, or co-op project, securing a first mortgage loan is 5% of the face amount of the policy.
When a policy provides for a separate wind-loss deductible, either in the policy itself or in a separate
endorsement, that deductible must be no greater than 5% of the face amount of the policy.
Coverage for Units in Project Developments
Impac generally does not require individual insurance policies for a condo unit that secures a first
mortgage loan. However, if the legal documents for the project allow for unit insurance policies for each
first mortgage in a condo project, Impac will accept the individual unit insurance policies that meet the
requirements in Fannie Mae’s Selling Guide Chapter B7–3, Property and Flood Insurance.
Required Coverage for Condo or PUD Projects
This section covers property insurance requirements for insurance policies covering the common
elements of condo and PUD projects, the project’s blanket or master policy.
Acceptable policies must provide coverage for either an individual project or multiple affiliated projects.
The insurance policy must at a minimum protect against fire and all other hazards that are normally
covered by the standard extended coverage endorsement, and all other perils customarily covered for
similar types of projects, including those covered by the standard “all risk” or “special form” endorsement. If the policy does not include an “all risk” or “special form” endorsement, Impac will
accept a policy that includes the “broad form” covered causes of loss. The applicable requirements are:
PUD Requirements — the HOA must maintain a property insurance policy, with premiums being paid as a common expense. The policy must cover all of the common elements except for those that are normally excluded from coverage, such as land, foundation, and excavations. Fixtures and building service equipment that are considered part of the common elements, as well as common personal property and supplies, should be covered.
05/22/18 Seller’s Guide Page 58 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
Individual insurance policies are also required for each unit mortgage that Impac purchases in a
PUD project. If the project’s legal documents allow for blanket insurance policies to cover both
the individual units and the common elements, Impac will accept the blanket policies in
satisfaction of its insurance requirements for the units.
Condo Requirements — the lender must review the entire condo project insurance policy to ensure the HOA maintains a master or blanket type of insurance policy, with premiums being paid as a common expense. The insurance requirements vary based on the type of HOA master or blanket insurance policy as follows:
o “Single Entity” policy: The policy must cover all of the general and limited common elements that are normally included in coverage. These include fixtures, building service equipment, and common personal property and supplies belonging to the HOA. The policy also must cover fixtures, equipment, and replacement of improvements and betterments that have been made inside the individual unit being financed. The amount of coverage must be sufficient to restore the condo unit to its condition prior to a loss claim event. If the unit interior improvements are not included under the terms of this policy type, the borrower is required to have an HO-6 policy with coverage, as determined by the insurer, which is sufficient to repair the condo unit to its condition prior to a loss claim event.
o “All-In” (sometimes known as an “all-inclusive”) policy: The policy must cover all of the general and limited common elements that are normally included in coverage. These include fixtures, building service equipment, and common personal property and supplies belonging to the HOA. The policy also must cover fixtures, equipment, and replacement of improvements and betterments that have been made inside the individual unit being financed. If the unit interior improvements are not included under the terms of this policy type, the borrower is required to have an HO-6 policy with coverage, as determined by the insurer, which is sufficient to repair the condo unit to its condition prior to a loss claim event.
o “Bare Walls” policy: This policy typically provides no coverage for the unit interior, which includes fixtures, equipment, and replacement of interior improvements and betterments. As a result, the borrower must obtain an individual HO-6 policy that provides coverage sufficient to repair the condo unit to its condition prior to a loss claim event, as determined by the insurer.
Amount of Coverage
Insurance must cover 100% of the insurable replacement cost of the project improvements, including
the individual units in the project. An insurance policy that includes any of the following coverage, either
in the policy language or in a specific endorsement to the policy, is acceptable:
Guaranteed Replacement Cost–the insurer agrees to replace the insurable property regardless of the cost,
Extended Replacement Cost–the insurer agrees to pay more than the property’s insurable replacement cost, or
Replacement Cost–the insurer agrees to pay up to 100% of the property’s insurable replacement cost.
05/22/18 Seller’s Guide Page 59 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
Policies with Coinsurance
Policies with coinsurance provisions can create additional risk for an HOA in the event of a loss if the
amount of insurance coverage is less than the full insurable value. Master property policies that provide
coverage at 100% of the insurable replacement cost of the project improvements, including the
individual units, alleviate the risk of a coinsurance penalty being applied in the event of a loss.
If the policy has a coinsurance clause, inclusion of an Agreed Amount Endorsement or selection of the
Agreed Value Option (which waives the requirement for coinsurance) is considered acceptable evidence
that the 100% insurable replacement cost requirement has been met. If an Agreed Amount/Agreed
Value provision is used, the Agreed Amount must be no less than the estimated replacement cost.
If the policy includes a coinsurance clause, but the coinsurance provision is not waived, the policy is still
eligible if evidence acceptable to the lender confirms that the amount of coverage is at least equal to
100% of the insurable replacement cost of the project improvements. This evidence (documentation)
must be maintained by the lender.
Maximum Deductible Amounts
For policies covering the common elements in a PUD project and for policies covering condo or co-op
projects, the maximum deductible amount must be no greater than 5% of the face amount of the policy.
For losses related to individual units in a co-op project or for individual PUD units that are covered by
the blanket policy for the project, the maximum deductible amount related to the individual unit should
be no greater than 5% of the replacement cost of the unit. If, however, the policy provides for a wind-
loss deductible (either in the policy itself or in a separate endorsement), that deductible must be no
greater than 5% of the face amount of the policy.
For blanket insurance policies that cover both the individual units and the common elements, the
maximum deductible amount related to the individual unit should be no greater than 5% of the
replacement cost of the unit.
Special Endorsements
The requirements for endorsements for condo and PUD projects are as follows:
Inflation Guard Endorsement, when it can be obtained; Building Ordinance or Law Endorsement, if the enforcement of any building, zoning, or land-use
law would result in loss or damage, increased cost of repairs or reconstruction, or additional demolition and removal costs to rebuild after a covered loss event occurs. The endorsement must provide for contingent liability from the operation of building laws, demolition costs, and increased costs of reconstruction. The endorsement is not required if it is not applicable or the coverage is not obtainable in the insurance market available to the association; and
Boiler and Machinery/Equipment Breakdown Endorsement, if the project has central heating or cooling. This endorsement should provide for the insurer’s minimum liability per accident to at least equal the lesser of $2 million or the insurable value of the building(s) housing the boiler or
05/22/18 Seller’s Guide Page 60 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
machinery. In lieu of obtaining this as an endorsement to the commercial package policy, the project may purchase separate standalone boiler and machinery coverage.
Special Requirements for Condo Projects
Additional insurance policy requirements for condo projects are as follows:
Any Insurance Trust Agreement is recognized. The right of subrogation against unit owners is waived. The insurance is not prejudiced by any acts or omissions of individual unit owners that are not
under the control of HOA. The policy must be primary, even if a unit owner has other insurance that covers the same loss.
Named Insured
The table below provides the requirements regarding the name of the insured entity.
Coverage Type Requirements for Named Insured Condo Projects The policy must show the HOA as the named insured. If the condo’s legal documents permit it, the
policy can specify an authorized representative of the HOA, including its insurance trustee, as the named insured. The “loss payable” clause should show the HOA or the insurance trustee as a trustee for each unit owner and the holder of each unit’s mortgage loan.
PUD Projects The policy must show the HOA as the named insured.
Notices of Changes or Cancellation
The table below provides the notification requirements for notices of policy changes or cancellations.
Project Type Requirement Condo Projects The policy must require the insurer to notify in writing the HOA (or insurance trustee) at least 10 days
before it cancels or substantially changes a condo project’s coverage.
10.7G Flood Insurance
General Requirements
Sellers must ensure that any flood insurance required for the security property is in place. Impac
requires flood insurance for any property that has a residential building, dwelling, structure, or
improvement situated in a Special Flood Hazard Area (SFHA) that
has federally mandated flood insurance purchase requirements, or is located in the Coastal Barrier Resources System or Otherwise Protected Area. (See Properties
Located in the Coastal Barrier Resources System or in an Otherwise Protected Area below for further detail.)
Flood insurance coverage is required for all residential buildings on the mortgaged premises if any part
of the structure is located within an SFHA. If two or more residential structures are located on a security
property (for example, a principal structure and a guest house), all structures with any part in an SFHA
must be covered by adequate flood insurance. Flood insurance requirement is the “principal structure”
is the primary residential structure on the security property.
05/22/18 Seller’s Guide Page 61 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
The matrix below describes when flood insurance is required.
If... Then flood insurance... any part of the principal structure on a property securing the mortgage loan is located in an SFHA,
Is required on the principal structure.
a non-residential detached structure attached to the land on a property securing the mortgage loan has any part located in an SFHA,
Is not require don the non-residential detached structure.
a residential detached structure on a property securing the mortgage loan has any part located in an SFHA,
is required on the residential detached structure.
The Seller must determine whether or not the structures on the security property are located in an SFHA
by using the Standard Flood Hazard Determination form endorsed by FEMA as mandated by federal
flood insurance purchase requirements. SFHAs are shaded on a Flood Hazard Boundary Map and
designated on a Flood Insurance Rate Map (FIRM). All flood zones beginning with the letter “A” or “V”
are considered SFHAs.
If it is determined that a principal and/or residential detached structure is located in an SFHA but the
community does not participate in the National Flood Insurance Program (NFIP), the mortgage is not
eligible for purchase by Impac.
For communities that participate in the Emergency Program of the NFIP, mortgage loans secured by
properties in those communities are eligible for purchase, provided that the flood insurance coverage
meets the higher NFIP Regular Program limits, available on FEMA’s website. Because the NFIP Emergency Program provides only limited coverage, the borrower must obtain private insurance or a
supplemental private policy in conjunction with an NFIP Emergency Program policy that fully meets
flood insurance coverage requirements described below.
Flood insurance will not be on a principal or residential detached structure if the borrower obtains a
letter from FEMA stating that its maps have been amended so that the structure is no longer in an SFHA.
Acceptable Flood Insurance Policies
Flood insurance should be in the form of the standard policy issued under the NFIP or by a private
insurer. The terms and conditions of the flood insurance coverage must be at least equivalent to the
terms and conditions of coverage provided under the standard policy of the NFIP for the appropriate
property type. The Policy Declaration page of a policy is acceptable evidence of coverage.
The amount of flood insurance provided by the NFIP or by a private insurer must meet Fannie Mae's
minimum coverage requirements for the appropriate property type. In addition, private carriers must
meet Fannie Mae's minimum rating requirements for insurance underwriters described in Fannie Mae’s
Selling Guide Chapter B7-3-01, Property Insurance Requirements for Insurers.
05/22/18 Seller’s Guide Page 62 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
Coverage for First Mortgages
The minimum amount of flood insurance required for most first mortgages secured by one- to four-unit
properties, individual PUD units, and certain individual condo units, such as those in detached condos,
townhouses, or rowhouses is the lowest of:
100% of the replacement cost of the insurable value of the improvements; the maximum insurance available from the NFIP, which is currently $250,000 per dwelling; or the unpaid principal balance of the mortgage.
Additional requirements for units in attached condo projects and PUDs are detailed in Requirements for
Project Developments below.
Requirements for Project Developments
If a first mortgage is secured by a unit in an attached condo and any part of the improvements are in an
SFHA, the Seller must verify that the HOA maintains a master or blanket policy of flood insurance and
provides for premiums to be paid as a common expense. See Coverage Requirements on the following
page.
Coverage Requirements
Property Type Coverage Requirements Individual Condo Units Stand-alone flood insurance dwelling policies for an attached individual condo unit are not
acceptable. A master condo flood insurance policy must be maintained by the HOA, subject to the coverage requirements below. (For detached units, refer to the requirements described in Coverage for First Mortgages above.)
05/22/18 Seller’s Guide Page 63 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
Condo Projects The lender must verify that the HOA maintains a Residential Condominium Building Association Policy or equivalent private flood insurance coverage for the subject unit’s building if it is located in an SFHA. The policy must cover all of the common elements and property (including machinery and equipment that are part of the building), as well as each of the individual units in the building. The master flood insurance policy must be at least equal to the lower of :
80% of the replacement cost, or
the maximum insurance available from NFIP per unit (which is currently $250,000).
If the condo project master policy meets the minimum coverage requirements above but does not meet the one- to four-unit coverage requirements (described in Coverage for First Mortgages), a supplemental policy may be maintained by the unit owner for the difference.
If the condo project master policy meets the minimum coverage requirements above but does not meet the one- to four-unit coverage requirements (described in Coverage for First Mortgages), a supplemental policy may be maintained by the unit owner for the difference.
The contents coverage for the building should equal 100% of the insurable value of all contents owned in common by association members.
If the condo project has no master flood insurance policy or if the master flood insurance policy does not meet the requirements above, mortgages securing units in that project are not eligible for purchase by Impac.
NOTE: DU Refi Plus and Refi Plus loans secured by units in a condo project are not required to meet the flood insurance requirements for master flood insurance policies stated in this section. Rather, if no master policy is in place, a stand-alone dwelling policy may be maintained by the unit owner to meet the full one- to four-unit requirements. If the master policy is deficient (by any amount), a supplemental policy may be maintained by the unit owner for the difference between the master policy and the one- to four-unit requirements.
PUD The same flood insurance for individual PUD units that is required for other one-to-four unit properties, described in Coverage for First Mortgages above. A stand- alone dwelling policy may be maintained to meet these requirements.
Properties Located in the Coastal Barrier Resources System or in an Otherwise Protected Area
When the Seller or a flood zone determination company determines that a property is located in the
Coastal Barrier Resources System (CBRS) or in an Otherwise Protected Area (OPA), flood insurance is
required and the Seller must verify that the flood insurance policy meets Impac's requirements. A
mortgage in a non-participating CBRS or OPA community is eligible only if the unit is not located in an
SFHA and will require flood insurance to be eligible for purchase by Impac.
Impac will accept flood insurance policies from either private insurance carriers or from the NFIP. The
amount of flood insurance required must meet Fannie Mae’s minimum coverage requirements for the
appropriate property type. The carrier must meet Fannie Mae’s minimum rating requirements for
insurance underwriters detailed in Fannie Mae’s Selling Guide described in Fannie Mae Chapter B7-3-01,
Property Insurance Requirements for Insurers.
05/22/18 Seller’s Guide Page 64 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
Maximum Allowable Deductibles
Deductibles for master project and individual dwelling flood insurance policies must meet NFIP
requirements for the type of improvements insured unless state law requires a higher maximum
deductible amount. This requirement applies to both NFIP and private policies.
10.7H Special Flood Hazard Area
The National Flood Insurance Program requires that a Notice of Special Flood Hazards and Availability of Federal Disaster Assistance be provided to the borrower for signature at least 10 days prior to signing the loan closing documents. Electronic signatures that comply with the ESIGN Act are eligible.
10.7I Seller Disbursed Closing Fees
Fees described below, are collected at closing and must be paid to the appropriate payee by the Seller. Provide documentation supporting evidence of payment on the following:
FHA Upfront MIP
First year premium for Standard Annual Mortgage Insurance
Single Premium Lender Paid Mortgage Insurance
Single Premium Mortgage Insurance
Upfront Mortgage Insurance premium
VA Funding Fee
10.7J Mortgage Loan Seasoning
If the loan is electronically delivered more than 60 days after the date on the Note, the Seller must provide an explanation for the length of the seasoning and a pay history if any payments have been made by the borrower. The loan will be subject to a full quality control review prior to purchase.
Proof of the required insurance (MIC, LNG, LGC) must be provided with government loans submitted for purchase seasoned over 90 days from the Note date prior to purchase.
Refer to the following for additional documentation requirements for seasoned loans. These requirements apply to loans that are delivered seasoned or become seasoned because the loan was suspended from purchase:
Loan Type Additional Appraisal Requirements Maximum Seasoning Government
FHA/VA Loans delivered greater than 4 months from
the date on the Note an AVM 4 months**
Conventional Fannie Mae/Freddie Mac
Loans delivered greater than 2 months from the date on the Note a Drive By
4 months**
Any loan seasoned > 4 months, but <= 10 months may be considered on an exception basis after review by the Chief Credit Officer.
10.7K Wire Instructions
Provide wiring instructions or a Bailee letter on each mortgage loan to avoid delays in wiring purchase proceeds. Include the following information:
Warehouse bank name, street address, city, state, zip code
05/22/18 Seller’s Guide Page 65 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
Bank contact name and phone number
ABA routing number (9 digits)
Name on the Account
Account number
Steps to follow prior to sending a loan under a Reverse Bailee:
Obtain reverse Bailee approval from an Impac Relationship Manager
Provide reverse Bailee wiring instructions to the Impac Purchaser
Ship original Note to Impac within 24-48 hours of receiving the purchase wire
Impac must receive the original note within 48 hours of purchase
NOTE: A $100 per day WET fee penalty will be assessed for each day the original Note has not been received past the 48 hours from the purchase date.
10.7L Uniform Closing Dataset
Impac requires compliance with Fannie Mae and Freddie’s Uniform Closing Dataset (UCD) mandate and
requires Sellers to:
Submit their UCD files directly to both Fannie Mae and Freddie Mac.
Provide proof of a successful submission by including a copy of the UCD Feedback Certificate
from both Fannie Mae and Freddie Mac in the closed loan package.
o All pages of the UCD Feedback Certificate must be provided, including all edit messages
received.
Closed loan files may not be submitted to Impac when the UCD Feedback Certification includes
fatal edits.
Impac will accept Assignments from Sellers for the UCD. Refer to the Fannie Mae website for UCD
information at: https://www.fanniemae.com/singlefamily/uniform-closing-dataset-collection-solution
10.8 Purchase
10.8A Purchasable Loans
All loan files received by Impac must be delivered in a purchasable condition. The file must meet all of the requirements of:
Product and loan program parameters,
Federal, state and local laws and regulations,
Industry standards and the standards of any applicable Guarantor, Insurer or Investor,
The Guide, including any updates,
Impac specific loan documentation based on loan program,
Loans must be current at the time of purchase, and
Appraisal photos must be in color and include the subject and comparable properties.
05/22/18 Seller’s Guide Page 66 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
10.8B Government Loans
The following applies to FHA and VA government loans:
The Seller is required to provide proof of upfront Mortgage Insurance Premium (MIP), orVeterans Affairs Funding Fee (VAFF), has been paid before the closed loan is purchased.
Impac requires email delivery of insuring documents within 60 days of loan purchase [email protected], if not included in the submitted loan file.
10.8C Principal Balance Purchased
The Seller must collect the monthly mortgage payment from the borrower and payment of any escrow disbursement that become due prior to loan purchase. When the loan is approved for purchase, the Seller must provide a loan payment history reflecting all disbursements and loan servicing activity during the interim period.
Should the Seller receive funds from the borrower for a principal reduction following Impac’spurchase of the loan, but prior to the first payment date due Impac, the Seller must forwardfunds to Impac within five days of receipt.
Impac will not purchase a loan past the 15th calendar day of the month when the next paymentdue would be the following month. However, a loan could be purchased based on the unpaidprincipal balance deducting the following month’s payment. No exceptions allowed.Example: Loan scheduled for purchase on 1-13-2016
o Loan can be purchased with the next payment due to Impac on 3-1-2016o Loan will not be purchased with the next payment due to Impac on 2-1-2016
For fees collected at purchase refer to Chapter 12 Schedule of Fees.
10.8D Post Purchase Obligations Refer to the Correspondent Seller Post Purchase Obligations Checklist for specifics at:
Loans with an outstanding MIC, LNG or LGC after 120 days of Loan Purchase the Seller mustprovide a detailed explanation regarding the reason why the loan is not insured and todetermine the likelihood of obtaining the necessary insurance. Should Impac determine theloan is uninsurable; the repurchase process may begin prior to 180 days.
Fees collected for untimely delivery of final documents refer to Schedule of Fees in Chapter 12 Schedule of Fees.
10.9 Payment Reversals When a payment is received by Impac or Impac’s Servicer and the Seller believes the payment belongs
to the Seller, the Seller needs to provide the following electronically:
Provide an email with a written explanation, including the payment amount, payment due date
belonging to the Seller,
Seller’s loan history, and
Impac’s loan number, and if available, a copy of the Purchase Schedule/Advice, and
05/22/18 Seller’s Guide Page 67 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
https://impaccorrespondent.com/wp-content/uploads/2019/08/Post-Purchase-Obligations-Checklist-1.pdf
Seller’s Guide
Email the request for payment reversal to Impac at: [email protected]
The electronic request must be received no later than 60 days from the date of the loan purchase.
NOTE: If the loan is not paid ahead, the request will be denied. Paid ahead, meaning a reversal of the
requested payment will not make the loan past due.
Example: Loan payments are due on the 1st of each month. Using the current month as
January 2017, based on a Purchase Advise outlining the Seller will be due the
12/01/16 payment, Impac’s first payment due is 1/01/2017.
Seller reversal request is submitted/received 1/10/17, in reviewing the loan has
a current date with Impac 02/01/2017, this request would be declined, the
account is not considered a “paid ahead” loan, as it’s paid to the current month.
An acceptable scenario; reversal request is submitted/received 1/10/17, in
reviewing the loan has a current due date of 3/01/2017. This request would be
approved as the account is considered “paid ahead”; changing the due date to
2/01/17, keeping the loan current without any immediate default concerns.
10.10 Loan History Impac will require a copy of the loan history in the loan file, no exceptions, when the Seller is requesting
the following:
An escrow account refund,
Payment reversal,
The first loan payment has been received and applied to the loan, or
Any adjustment has been applied to the loan.
The loan history must be prepared by the Seller’s Servicer and must include the following:
Seller’s company name,
Borrower name, and
Seller’s loan number.
05/22/18 Seller’s Guide Page 68 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
Chapter 11 – Post Closing This chapter details the post-closing delivery requirements.
11.1 Goodbye Letter Sellers are required to deliver notification of loan sale and change of servicer to borrower at least 15 days prior to the first payment due to Impac Mortgage Corp. c/o Loan Care, LLC or c/o Select Portfolio Servicing, Inc.
Simultaneously, email a copy of the Goodbye Letter to [email protected]
Refer to the Correspondent website at: https://impaccorrespondent.com/forms-and-resources-2/ for a
copy of the Sample Goodbye Letter and NY State Goodbye Letter.
11.2 Servicing Contacts
Addresses and phone number for correspondence, payments and customer service questions for
LoanCare, LLC (Conforming Loans) and Select Portfolio Servicing (Non-QM Loans) are as follows:
LoanCare, LLC (Conforming Loans) Loan Inquiries Payments (East Coast) Payments (West Coast)
LoanCare Attn: Mortgage Resolution PO Box 8068 Virginia Beach, VA 23450
LoanCare, LLC PO Box 37628 Philadelphia, PA 19101-0628
LoanCare, LLC PO Box 60509 City of Industry, CA 91716-0509
Overnight Address Customer Service Hours Phone Number LoanCare, LLC 3637 Sentara Way Virginia Beach, VA 23452
Monday – Friday 8:00 AM – 10:00 PM ET Saturday 8:30 AM – 3:00 PM ET
Customer Service: 800-274-6600
An automated line is available 24/7 for inquires. The borrower may use the following website:
www.myloancare.com
Seller’s using DocMagic to prepare loan closing documents, provide the following codes to ensure the
appropriate payment address populates into the letter:
IMP3: East Coast Payments
IMP4: West Coast Payments
Select Portfolio Servicing (Non-QM Loans) Loan Inquiries Payments (East Coast) Payments (West Coast)
Select Portfolio Servicing, Inc. PO Box 65277 Salt Lake City, UT 84165
Select Portfolio Servicing PO Box 65450 Salt Lake City, UT 84165-0450
Select Portfolio Servicing PO Box 65450 Salt Lake City, UT 84165-0450
Overnight Address Customer Service Hours Phone Number | Website Select Portfolio Servicing 3217 S. Decker Lake Dr. Salt Lake City, UT 84119-3284
Monday – Thursday 8:00 AM – 11:00 PM ET Friday 8:00 AM - 9:00 PM ET Saturday 8:00 AM – 2:00 PM EST
Customer Service: 800-258-8602 www.spservicing.com
08/15/19 Seller’s Guide Page 69 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
11.3 Transfer Letters
11.3A Mortgagee Clause
The following Mortgagee Clause is used for Hazard Insurance, Flood, Wind, Quake and Volcano:
LoanCare Mortgagee ClauseLoanCare, LLC ISAOA P. O. Box 202049 Florence, SC 29502-2049
Insurance companies must be rated "B" or better.
SPS Mortgagee Clause
Select Portfolio Servicing Inc. ISAOA P.O. Box 7277 Springfield, OH 45501-7277
The following Mortgagee Clause is used for New York properties for Hazard, Flood, Quake and Volcano:
LoanCare NY Mortgagee ClauseIMPAC MORTGAGE CORP. d/b/a EXCEL MORTGAGE c/o LoanCare ISAOA P.O. Box 202049 Florence, SC 29502-2049
SPS NY Mortgagee ClauseIMPAC MORTGAGE CORP. d/b/a EXCEL MORTGAGE C/O Select Portfolio Servicing, Inc., ISAOA PO Box 7277 Springfield, OH 45501-7277
11.3B Flood Certificates
Flood Certificates are to be ordered from CoreLogic or ServiceLink National Flood. The certificate must
be a Life of Loan and fully transferrable to Impac Mortgage Corp.
Flood certificates not ordered from CoreLogic or ServiceLink National Flood, Impac will order the
Life of Loan flood certificate and charge $8.00 to the Seller at the time of loan purchase.
11.3C MERS
All loans must be registered on MERS.
Initiate all Transfer of Beneficial Rights Option 2 transactions within 48 hours of the loan purchase to:
Investor: MERS Org ID 1008597
Interim Funder: MERS Org ID will be provided by the Servicing Liaison
Initiate all Transfer of Servicing Rights transactions within 48 hours of the loan purchase to release the loan from the existing servicing system to:
Servicer: MERS Org ID 1008597 (Impac is responsible for the sub-servicer transfer)
Provide batch numbers via email to [email protected]
11.4 Trailing Documents
Provide the following final documents to Impac within 90 days of loan purchase:
Recorded Deed of Trust/Mortgage and all applicable Riders/Schedules and Addenda
Final Title Policy, with all appropriate Endorsements
If the government insuring certificate (as indicated below) is not included in the loan file at timeof delivery, email a copy of the following to [email protected]:
o FHA Mortgage Insurance Certificate (MIC)o VA Loan Guarantee Certificate (LGC)
A copy of the FHA Mortgage Record Change (Form HUD -92080) sent to HUD after the loan isinsured indicating Impac as the Holding Lender and Impac’s Servicing Lender information asfollows:
04/25/18 Seller’s Guide Page 70 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
Holding Lender as follows: Impac Mortgage Corp. 19500 Jamboree Road Irvine, CA 92612 FHA Lender ID is 3086500000
Servicing Lender as follows: LoanCare, LLC 3637 Sentara Way Virginia Beach, VA 23452 FHA Lender ID is 3086500000
Updated payment history for any payments received by the Seller after the loan purchase prior to the first scheduled payment due to Impac.
o History must include any required mortgage insurance, escrow payments, and/or disbursements made during the time of servicing.
Forward all final documents to the following address using the Final Document Transmittal: Impac Mortgage Corp. Correspondent Lending 19500 Jamboree Road Irvine, CA 92612 Attn: Post Close / Trailing Documents
Direct any questions regarding post purchase obligations and trailing documents via email to:
11.5 Recast Process Impac defines a recast loan as, a loan with a minimum 10% principal payment applied to reduce the
unpaid principal balance, the monthly payment will be recast based on the reduced unpaid principal
balance; however, the maturity date and interest rate are unchanged.
NOTE: The recast process is only applicable to a Fannie Mae or Freddie Mac loan.
Impac will allow a loan to be recast and the process is as follows:
Borrower Must: Servicer Must: The Borrower must make a request in writing to
LoanCare prior to sending in a principal curtailment.
Request LoanCare to advise the minimum dollar amount required for the principal curtailment.
Pay a $300 fee for the service provided by LoanCare.
Upon receipt of documents, sign and have signature(s) notarized and return documents to LoanCare.
Communicate to the borrower the minimum dollar amount of principal curtailment required to recast the loan.
Prepare the applicable documents for the borrower’s signature.
Recast the payment over the remaining term of the loan at the current interest rate.
Collect a $300 fee for the service provided.
04/25/18 Seller’s Guide Page 71 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
Chapter 12 - Schedule of Fees This Chapter details the fees associated with loans purchased by Impac.
12.1 Loan Purchase Fees Fees charged and due at time of loan purchase, as applicable.
All Loans Purchased Current Fee CLD Investor Fee $350
Tax Service Fee $95
Non-Delegated Underwriting Fees
Current Fee
iQM $995
Conventional $400
Government $450
Rush Underwriting Fee $200
Refer to Section 6.6A Rush Request on Non-Delegated Underwriting
for information on requesting a Rush.
12.2 Additional Fees The following fees are charged as applicable.
Additional Fees, as applicable Fee Requirement Flood Certification $8 Charged if flood cert was not obtained from CoreLogic
or Service Link National Flood (LPS) Services
VA IRRRL AVM $7 - $8.50 Ordered on all VA IRRRL loans
12.3 Post Closing Fees Impac has established post-closing fees that are detailed in this chapter.
12.3A Document Penalties
Fees for outstanding closing documents are as follows:
Final Closing Documents Penalty1 Current Fee Final closing documents outstanding over 180 days $500 per document
Additional monthly charge after 210 days $250 per document
Final closing documents outstanding for 240 days Possible repurchase
1 Final closing documents include, but are not limited to, title policy and Security
Instrument.
04/25/18 Seller’s Guide Page 72 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
12.3B Government Insurance Penalty
Fees for government loans not being insured (MIC/LNG/LGC) in a timely manner as described below:
Government Insurance (MIC / LNG/ LGC) Penalty Current Fee Insurance outstanding 90 to 120 days $100
Insurance outstanding 121 days to 150 days $250
Insurance outstanding 151 to 180 days $500
Insurance outstanding over 181 days $1,000 and/or possible repurchase
12.4 Right to Collect Impac reserves the right to collect any outstanding fees from the Seller; including pair-off fees, early
payoff premiums, repurchases, outstanding final closing documents, attorney’s fees, and any other fees
or expenses identified by Impac. Impac reserves the right to collect monies in any lawful manner
including, but not limited to, deducting the amount from the purchase or other payment due to the
Seller.
04/25/18 Seller’s Guide Page 73 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
Chapter 13 – IMportal IMportal is a proprietary front end portal that communicates with Ellie Mae’s Encompass LOS. One login credential is provided to each user within the Seller’s company with one user designated as the administrator. These credentials will be released based on the information provided on the Who Do We Call Contact form. Access IMportal from Impac’s Correspondent website landing page at: https://impaccorrespondent.com/
This chapter details how to use Impac’s IMportal to:
Register loans
Lock loans
Deliver loans
Upload conditions for review and purchase
Retrieve Purchase Advise
13.1 Login Select Seller Login on the landing page and enter your sign on information.
07/13/18 Seller’s Guide Page 74 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
13.2 Administrator Upon receipt of your credentials for accessing IMportal, the Seller’s Administrator(s) should access the Administration view to set up notification emails and reset passwords.
Notification emails are generated as the status of your loan changes and moves through locking in the loan, submitting the loan to underwriting, receiving conditions, and the purchase of the loan.
o Multiple emails can be provided; just separate the email addresses by a semicolon. o Check the Activate box to request emails be sent to the emails listed
13.3 Menu Toolbar The initial landing page displays the Dashboard. Other dropdowns available include Pipeline, Loan Search, Register Loan, and Administration. The header options at the top of the portal link back to the main pages on the site. To remain signed in
on the portal, right-click on the available dropdowns and open in a new tab so you can still access the
information within the portal.
07/13/18 Seller’s Guide Page 75 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
13.4 Impac’s Ineligible List Impac’s Ineligible List is available under the Dashboard. This list is posted on an as needed basis and
notification of the updated list is sent out to contacts listed on the Who Do We Call Contact list.
All loans submitted for purchase, Sellers must review the Ineligible List to ensure no person or entity
involved with the origination, funding or sale of the loan to Impac, or in the underlying real estate
transaction is named on this List.
Any findings identifying the borrower, co-borrower, or other individual or entity listed on the Ineligible
List will render the loan as ineligible for delivery or purchase by Impac.
Providing Impac’s Ineligible List to any person that is not in their employ or that is not involved in the
origination, approval, funding or delivery process is not permitted.
Refer to Section 10.6 Impac’s Ineligible List for additional information.
07/13/18 Seller’s Guide Page 76 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
13.5 Pipeline Views The Pipeline view shows a list of all of your loans:
A Loan Status Summary on the left side allows you to look for loans in a particular status
Use the filtering/sorting options to move through the loans as needed
You also have the ability to download your pipeline into an excel spreadsheet
When you select the Archive Loan button, the loan will be moved into the Archived tab and will no
longer appear on your Active pipeline. If you have moved the loan in error, please contact your
Relationship Manager to move the loan back into an Active status.
The Loan Search view allows you to access a specific loan by entering the Impac loan number.
07/13/18 Seller’s Guide Page 77 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
13.6 Registering a Loan When ready to create an Impac loan number, click Register Loan. Two options appear when registering a loan:
Manual Data Entry
Upload of the 3.2 file – preferred method
Step 1: Select Organization – in most cases, only one option will be provided, unless you are a parent company with multiple locations.
Step 2: Select Underwriter Contact – the main point of contact for all communication while your file is in underwriting.
Step 3: Select Product Code – due to the vast array of programs offered by Impac, users can click the Product Code Key button to ensure the loan is registered with the correct Product Code.
NOTE: Pricing is sensitive to AUS Type
Step 4: Browse to upload the 3.2 file
Step 5: Select Citizenship
07/13/18 Seller’s Guide Page 78 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
Step 6: Input Credit Score
Step 7:
Step 8:
Input the loan number from the Seller’s LOS – Not a required field
To register a loan and submit in one step, click the Browse button to add the credit package. Otherwise, disregard this step.
NOTE: This is only required if when registering and submitting the loan for underwriting in one step.
Once all fields are completed, click the Save button. A Pop-up will appear.
Select Register to complete registration and create an Impac loan number.
Select Submit to place the loan in the queue for an underwriter to review (only if you completed Step 8 and added the credit package).
07/13/18 Seller’s Guide Page 79 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
13.7 Submitting a Loan for Underwriting Navigate to the Submitted stage under the Loan Navigation panel.
If the loan is manually registered, a 3.2 Import is required before enabling the Upload button.
SelectUpload to connect to your desktop and upload the credit package for review.
The Stacking Order and items required for submission are displayed.
NOTE: Submission on packages can be up to 100MB, which is approximately 400 pages.
Once Upload is selected, a pop-up will appear.
Select HOLD if you are not ready to submit for review.
To place the loan in the queue for review, select SUBMIT.
Once submitted, a GREEN checkmark appears next to the Submitted stage and a Completed Date is
reflected in the portal. At this time, you will be locked out from uploading additional items.
07/13/18 Seller’s Guide Page 80 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
13.8 Obtaining Loan Disposition and Viewing Conditions Two statuses allow viewing of the Loan Disposition, 1003 and 1008 or applicable loan transmittal:
Cond. Approval
Clear to Close
To view conditions directly in the IMportal or to view real time updates, navigate to the Cond. Submitted
milestone.
Select Browse to upload all Critical Condition documents to each condition.
If no Critical Conditions are present on the loan, Browse to upload all documents to each respective condition.
The Uploaded Date will populate, the Browse button will clear and the Submit button will be enabled.
Select Submit to deliver loan into Impac’s queue for review.
If a document does not satisfy the condition, the condition will be updated and marked as Rejected. The
file will be moved back into your queue for upload of outstanding items.
07/13/18 Seller’s Guide Page 81 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
If the document provided satisfies the condition, it will move to the Cleared Cond. Tab and will be
marked as Cleared or Waived.
13.9 Uploading a Closed Loan
Click Browse to upload documents from your desktop.
Once all documents are uploaded, click Save.
Submission pages can be up to 100MB, approximately 400 pages.
Navigate to the Submitted stage:
To upload additional documents, click on Add More Documents.
07/13/18 Seller’s Guide Page 82 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
Final Purchase Advice
When a loan is purchased, it will fall off the active pipeline. Use Loan Search to pull up the loan.
Once the file has been purchased, your company will receive notification that the Purchase Advice is available for viewing in the IMportal.
07/13/18 Seller’s Guide Page 83 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
13.10 Loan Navigation Menu Status Decoder The green checkmark reflects that the status has been completed.
Registration: Loan has been registered and an Impac loan number assigned
Rate Lock: Padlock will be closed once loan is locked Submitted: Credit package has been submitted for review Received: File is in line with an underwriter Cond Approval: File has been approved and Loan
Disposition released Cond Submitted: PTDs have been placed in line for review Cond Review: File has been placed in underwriter queue
for review Clear to Close: File has cleared QC credit review and CTC
issued Submitted: Closing docs and any PTPs have been placed in
line for review Closing Doc Review: File has cleared Pre Purchase Review: Purchase Review has been
completed Cond Submitted: Any outstanding items required for
purchase have been placed in line for review Cond Review: Conditions have been reviewed and cleared Final Purchase Advice: File has been purchased and PA
available to pull for your records.
07/13/18 Seller’s Guide Page 84 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
13.11 Locking Loans in IMportal
When you are ready to lock, click on the Rate Lock stage on the Loan Navigation menu to navigate to the Optimal Blue pricing portal. As long as the padlock is open, you have the ability to lock.
As long as a 3.2 file has been uploaded, all fields should populate with the exception of Freddie Mac 5-6 financed properties
Optional filters narrow search for pricing
You have the option to lock for 15, 30, 45, and 60 days with a 7 day grace period.
07/13/18 Seller’s Guide Page 85 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
If the desired program does not appear, click on the program under Ineligible Product to see a note on the Disqualifier or click on the Links Page to go directly to the guidelines:
Click Links to access Guidelines
Click on the program that you are looking to lock:
Click on the price
07/13/18 Seller’s Guide Page 86 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
Review the breakdown of pricing that appears before locking in the loan.
Click on Request Lock to lock in pricing.
Once the lock requested has been submitted, the LockDesk will process the request and post a Lock
Confirmation to the IMportal.
NOTE: As long as the administrator has set up an email to receive notifications, the designated
contact will receive an email and have the ability to retrieve the confirmation for your records.
The Lock Confirmation will display the Lock Information box in the upper right hand corner. In this
example:
60 day term was requested with a 7 day grace period
Lock Period and Lock Expires Date reflect 67 days
Closing docs must be delivered on or before the Delivery Date
07/13/18 Seller’s Guide Page 87 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
13.12 Lock Extensions Regardless of when a closing package is delivered, you are responsible for monitoring your own pipeline.
The Lock Expiration date must be good through the date of the purchase.
As a courtesy, we monitor and send out a notification 5 days prior to the expiration. Your relationship manager also reviews expiring locks on a daily basis so that a lock does not expire.
To extend, email the LockDesk and copy your relationship manager prior to 4:30 PM PST on or before the lock expiration date.
You can extend for a total lock period of 90 days at 2 bps per diem.
13.13 Quick Pricer Use the Quick Pricer tool on the menu toolbar to run scenario.
07/13/18 Seller’s Guide Page 88 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Seller’s Guide
Chapter 14 - Expedited Purchase Impac offers an expedited loan purchase service for qualified Sellers who satisfy due diligence
requirements.
Sellers who have demonstrated an exemplary performance with Impac may be considered for an
expedited purchase of closed loans. Only those documents deemed essential to the purchase will be
reviewed. The loan will be reviewed within 3 business days from receipt of the closed loan package. To
designate the correspondent for expedited closed loan purchases, Impac will consider the following
criteria:
Seller must be a delegated underwriter for the eligible loan products
Impac must have purchased a minimum of 20 loans within the past 6 month period
Seller must maintain an average of 15 loans purchased in a rolling 90 day period
None of the loans purchased can have an early payment default or be subject to repurchase
Prior to purchase conditions should be consistent with the Company standard.
Review turnaround times for loans previously purchased
Review performance for providing trailing documents
Determine if any uninsured loans appear in FHA Connection
The expedited loan purchase process is ineligible for loan types as follows:
iQM loan programs
Loan with escrow holdbacks
VA IRRRLs
14.1 Seller Process Impac’s Relationship Managers will conduct a call with a Seller that has been approved to use the
expedited loan purchase process.
The Seller is to ensure the closed loan packages submitted for purchase clearly indicate your
request for an expedited loan purchase.
Verify the loan type is eligible for an expedited loan purchase.
Maintain an average of 15 loans purchased by Impac in a rolling 90 day period.
# # #
12/11/18 Seller’s Guide Page 89 of 89
2017 by Impac Mortgage Corp. All rights reserved. This manual is provided on a confidential basis for the use of the recipient only. Any reproduction, distribution or disclosure of the contents of this manual without the advance written consent of Impac Mortgage Corp. is strictly prohibited.
Related Documents
