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LLPA Updates

Effective with new LendingSpace Best Efforts locks as of Monday, January 22, 2018, Flagstar Bank will be posting an updated Loan Level Price Adjustment Schedule. Highlights include the following:
  • Removing conventional and government LLPAs for loan amounts < $120,000
  • Consolidated separate Fannie Mae and Freddie Mac grids into one
  • Decreasing government LLPAs for lower FICOs
  • New conventional and government state LLPAs
Please see the updated schedule here.

Pooling Restrictions

Due to a change in Ginnie Mae pooling requirements, effective immediately VA cash-out refinance, VA IRRRL, FHA streamline, FHA cash-out, and USDA streamline assist loans must meet the following requirements:
  • The borrower must have made at least six consecutive monthly payments on the loan being refinanced, referred to hereinafter as the Initial Loan, beginning with the payment made on the first payment due date; and
  • The first payment due date of the refinance loan occurs no earlier than 210 days after the first payment due date of the Initial Loan.
Accordingly, loans where the borrower does not meet the above requirements are no longer eligible. The borrower cannot prepay payments to satisfy the six consecutive monthly payments requirement. Underwriters, including VA delegated and bulk customers, must ensure the above requirements are met.

Delegated loans delivered to Flagstar with a File Delivered status after February 15, 2018 must meet the above requirements.

Pipeline Loans

All originators with impacted pipeline loans may be contacted to help ensure the loans meet the following deadlines:

  • All correspondent loans must have a closing/credit package received by February 15, 2018, and must be purchased by Flagstar by February 28, 2018.
  • Delegated correspondent loans must also be insured by the correspondent by February 28, 2018. Proof of insurance must be provided prior to purchase.
  • Table funded loans must close and fund by February 15, 2018.
Non-Delegated Loans

Loans submitted to underwriting via Loantrac with an Image Package Received status after January 15, 2018 must meet the above requirements. Flagstar is currently identifying the loans submitted to underwriting and that have received an Image Package Received status prior to January 15, 2018 that do not meet the above requirements.

Supporting Documentation
Holiday Schedule

Below is information regarding each holiday that is observed by Flagstar in 2018 and the dates that all Flagstar offices will be closed in observance of each holiday.

Holiday Flagstar Offices Closed
Martin Luther King Jr. Day - January 15, 2018 Monday, January 15, 2018
Presidentís Day - February 19, 2018 Monday, February 19, 2018
Memorial Day - May 28, 2018 Monday, May 28, 2018
Independence Day - July 4, 2018 Wednesday, July 4, 2018
Labor Day - September 3, 2018 Monday, September 3, 2018
Columbus Day - October 8, 2018 Monday, October 8, 2018
Veterans Day - November 11, 2018 Monday, November 12, 2018
Thanksgiving - November 22, 2018 Thursday, November 22, 2018
Christmas Day - December 25, 2018 Tuesday, December 25, 2018
New Yearís Day - January 1, 2019 Tuesday, January 1, 2019

If you have any questions, please contact your sales relationship manager.

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