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Fee Schedule Changes

Effective with loans delivered on or after Monday, January 8, 2018, the following fee schedule will be in effect.

Fee Non-Delegated Transactions Delegated Transactions
Standard Conventional Administrative Fee $625.00 $295.00
Standard FHA Administrative Fee $825.00 $295.00
Standard VA Administrative Fee $825.00 $295.00
Standard GRH Administrative Fee $825.00 $295.00
Jumbo Administrative Fee $825.00 n/a
Texas Conventional Administrative Fee $490.00 $295.00
Texas GRH Administrative Fee $825.00 $295.00
Tax Service $79.00 $79.00

Conventional and Government Overlay Update

The Conventional Overlay and Government Overlay documents will be updated to include a minimum loan amount of $50,000.

Re-Amortization (Recasting) Policy

Borrowers may request a mortgage loan re-amortization review by submitting the Re-amortization Eligibility Request Form located on flagstar.com or sending an email to SpecialLoans@flagstar.com. Special Loans will review the loan and specific investor guidelines and notify the borrower whether or not their loan is eligible for a re-amortization. If the borrower chooses to proceed, they may submit the applicable documentation, along with the principal reduction payment and a $250 fee. Not all mortgage loans are eligible for a re-amortization. Eligibility is determined at the time of request, valid for 30 days, and is subject to change.

One-Close Construction and Homestyle Renovation Suspensions for Missouri

Effective immediately, Flagstar is temporarily suspending the One-Close Construction and Fannie Mae HomeStyle Renovation for properties located in the state of Missouri. A future communication will be sent when these products become available again.

Texas 50(a)(6) Home Equity Loan

On Thursday, November 7, 2017, voters approved Texas ballot Proposition 2, the Home Equity Loan Amendment relating to the home equity provisions of the Constitution, Article XVI, Section 50(a)(6). The changes include but are not limited to agricultural homesteads, change in point and fees and refinancing a home equity loan. The amendment will take effect on January 1, 2018, and applies to loans with a note date on or after January 13, 2018. Due to the new requirements affecting loans made on or after January 1, 2018, Flagstar Bank will not purchase any Texas A(a)(6) loans closed during the first 12 days of 2018. Below is a summary of the changes.

AGRICULTURAL HOMESTEADS
  • Now allows properties with agricultural exemptions. Working farms remain an ineligible property type
CHANGE IN POINTS AND FEES
A reduction in the fee cap from 3% to 2% and the exception of the following fees:
  • An appraisal performed by a third party appraiser; and
  • A property survey performed by a state registered or licensed surveyor; and
  • A state base premium for a mortgagee policy of title insurance with endorsements established in accordance with state law; OR
  • A title examination report if its cost is less than the state base premium for a mortgagee policy of title insurance without endorsements established in accordance with state law;
REFINANCING A HOME EQUITY LOAN
The option to refinance a TX 50(a)(6) home equity loan into a rate and term non-home equity loan when all the following requirements have been met:
  • The refinanced loan is signed at least a year after the original home equity loan was signed;
  • The refinanced loan cannot provide any additional money to the borrower other than to cover the costs to do the refinancing;
  • The refinanced loan cannot exceed 80% of the fair market value of the house; and
  • The borrower must be provided with Disclosure for refinance of Home Equity Loan to Non-Home Equity loan 12 or more days before the date of refinance.
DISCLOSURES AND DOCUMENTS
The following disclosure/documents are either existing and will require modification to the language to address the changes or are new disclosure/documents to address the changes.
  • The Home Equity Loan Consumer Disclosure
  • The Disclosure for Refinance of Home Equity Loan to Non-Home Equity Loan
  • The Texas Home Equity Affidavit and Agreement
If you have any questions, please contact your sales relationship manager.


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