Correspondent Q&A Session

Our team of correspondent account managers wanted to answer a few questions that have been asked by multiple partners in recent weeks. We hope you find this Q&A useful if you’re a correspondent partner and maybe even if you aren't! 

If you want to learn more about the different partnership channels offered by Servion mortgage, you can find it here.

Topic: FHA Case Numbers

Question: I believe the current FHA case number is expiring soon. I’m not sure how to make sure it is still active and not expired. How does this work?

Answer: FHA case numbers automatically expire and get cancelled after six months if one of the following is not performed as a last action:

• Appraisal information entered
• Firm Commitment issued by FHA
• Insurance application received and subsequent updates
• Notice of Return or resubmissions

Topic: Updated clear-to-close

Question: This file is cleared to close, but we need to decrease the loan amount. Do we need a change of circumstances and how long until we can get an updated clear-to-close?

Answer: If a file is cleared to close and the loan amount is decreased, the partner does not need to provide a change of circumstances. They also do not need an updated clear-to-close. However, if the loan amount were to increase, then we would need a change of circumstances and an updated clear to close. Updating an already existing clear-to-close does not follow our normal 1 business day turn time, it can take longer.

Topic: Waiving MI

Question: I see there is a new Portfolio Agreement that allows us to mark if mortgage insurance is being waived. In what scenario does Fannie Mae let us waive mortgage insurance on a loan with LTV greater than 80%?

Answer: Fannie Mae will not purchase a loan that waives mortgage insurance on a loan with LTV greater than 80%. The only time mortgage insurance can be waived, is when it is a non-saleable portfolio and the lender chooses to waive it for whatever reason they deem fit.

Questions for the correspondent team?

If you are a correspondent partner and have any questions at all, feel free to contact your account executive or send an email to correspondentteam@myservion.com.