Guide Update 24-06
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Small Mortgage Loan PCAs
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HIGHLIGHTS |
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Effective for Small Mortgage Loans registered in DUS Gateway as of June 7, 2024, updated the requirements for Property Condition Assessments and Borrower due diligence in the
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Primary Changes
Updated:
- Part III, Chapter 9: Small Mortgage Loans to:
- modify the Replacement Reserve expense when calculating Underwritten Net Cash Flow;
- eliminate Streamlined PCAs and require a full PCA per Form 4099; and
- require you to verify the Borrower's
- assets, and
- liquidity;
- Part III, Chapter 18: Choice Refinance Loans to eliminate Streamlined PCAs and require a full PCA per Form 4099;
- Part IV, Chapter 7: Variable Rate Conversions and Renewals to require a new full PCA per Form 4099 for any non-MAH Property if the conversion from variable rate to fixed rate extends the term of the
- ARM Loan, or
- SARM Loan; and
- Form 4099 guidance to remove the:
- option to perform a Streamlined PCA; and
- PCA Consultant's ability to complete the MBA Inspection Form for you.
Questions
Please contact Colleen Gurkin at (626) 396-4617, or [email protected], with any questions.