correspondent lending application€¦ · vhda correspondent lending application 1 last rev....

VHDA Correspondent Lending Application 1 Last rev. 11/21/2016

Correspondent Lending Application

Instructions Please complete the Virginia Housing Development Authority (VHDA) Correspondent Lending Application in detail and attach documents as necessary from the list attached. Use the Correspondent Application Checklist to determine which documents to include with the Application. Submit the fully completed Application to Dan Kern, Business Development Training Manager. If you have any questions / concerns, please contact Mr. Kern at (804) 343-5992 or [email protected].

Company Information Correspondent Company Legal Name (as registered with NMLS): ___________________________________________________________________________________ Street Address (no P.O. Box #s please): __________________________________________________ City: ____________________________ State: ______________ Zip Code: _____________________ NMLS ID #: _______________________ Tax ID #: ________________ FHA #: ____________________ Years in Business: ____________ Year Commencing Correspondent Operations:_______________ Date that first Virginia Branch was opened (MM/DD/YY): ____________________________________ Note: All Lenders are required to have a “bricks and mortar” commercial office in Virginia operational for

one year to be eligible to originate VHDA loans. We only accept applications with valid commercial office addresses; no P.O. boxes or residential/”virtual” offices.

Primary Contact Information Primary Contact Name: ________________________ Title: _________________________________ Phone #: __________________ Fax #: ___________________ Email: ________________________

Business Entity Type Please check the appropriate business entity type and provide the information in the corresponding section.

☐ Privately Held Owner’s Name Position % Owner NMLS #

☐ Partnership or LLC (please specify) Owners’ Names Position % Owner NMLS #


☐ Publicly Held Lender Name of Primary Contact Position % Owner NMLS #

☐ Bank Held Corporation Name of Primary Contact Position % Owner NMLS #

☐ Credit Union Name of Primary Contact Position % Owner NMLS #

If a Credit Union, please provide the following information:

☐ State Licensed ☐ Federally Licensed Certification #: _________________________ Number of Employees: _______ Number of Branch Offices (attach list of locations): ___________ Federal Tax ID #: ____________________________

Approvals and Licensure Please provide copies of approvals (as applicable).

Yes No ID# Approval/activate date

Fannie Mae ☐ ☐

Freddie Mac ☐ ☐

FHA (Direct Endorsement) ☐ ☐

VA ☐ ☐

USDA ☐ ☐

Please list all states in which the Company is currently licensed to do business:

Affiliated Businesses of Company Please list all affiliated businesses:


Underwriting Methods YES NO

Are you approved as a delegated underwriter with MI companies? ☐ ☐

If yes, please list which companies:

Are you an agency approved – licensed LP or DU user? ☐ ☐

If not, do you have access to other Investors’ LP or DU system? ☐ ☐

Are you a delegated underwriter for other Investors? ☐ ☐

Are you approved with Fannie Mae/Freddie Mac for SSR release? ☐ ☐

Name of Interim or Sub-Servicer:

Name of Loan Origination System (LOS):

Contact Information

Name Years Exp. Phone # Email Address

President/CEO Operations Manager Secondary Marketing Underwriting Closing/Post Closing Shipping (docs/files) Quality Control Accounting (purchase) Service Release Transfer

Authorized Officers This information is required.

Persons Authorized to Lock Loans Name Title Department Phone Number


MERS Authorized Officers Name Title Department Phone Number Warehouse Line Information Entity Name Contact Account # Phone Number

Insurance Information Type Carrier Limit Deductible Exp. Date Errors and Omissions

Fidelity Bond Insurance

General Questions

Yes No

☐ ☐ Does your company have quality control procedures and/or in-house internal audit systems which review the authenticity of the information contained in your Conventional and Government loan documents? If not in-house, name of third-party vendor: _________________________________

☐ ☐ Will your company be able to meet VHDA’s required 120-day deadline from date of closing for submission of all final documents? (E.g. Recorded Documents, Title Policy)

☐ ☐ Do you currently use Mortgage Electronic Registration System (MERS) to transfer beneficial and servicing rights electronically? If yes, please provide Organization ID #: ____________________________________

If you answer “Yes” to any of the following questions, please provide a detailed explanation under separate cover.

Yes No

☐ ☐ Has your company had any adverse findings with HUD or VA or USDA?

☐ ☐ Has your company’s approval with Fannie Mae, Freddie Mac, Ginnie Mae, or dealings with any federally insured financial institution, investor, or Private Mortgage Insurance Company been suspended or withdrawn in the last 5 years?

☐ ☐ Has your company had any adverse change in its financial position since the date of the most recent audited financial statements provided to VHDA?

☐ ☐ Has any officer of your company been involved in any lawsuit pertaining to the origination, sale or servicing of mortgage loans in the past 5 years?

☐ ☐ Has any agency’s or investor’s audit in the last two years shown your company to be out of compliance with any of its guidelines?

☐ ☐ Has your company had any warehouse lines reduced or canceled within the last 5 years?


Yes No

☐ ☐ Has your company received any consumer complaints alleging discrimination on a prohibited basis?

☐ ☐

Are or have any principals or management personnel been under indictment, or been convicted of, an offense that reflects adversely upon the Mortgagee’s integrity, competence, or fitness to meet the responsibilities of an HUD, VA, USDA, Fannie Mae or Freddie Mac – as approved Mortgagees; or have been convicted of or pled guilty or nolo contendere to a felony related to participation in the real estate or mortgage loan industry during the seven-year period preceding the first day of the Certification Period; or who had ever been convicted of or pled guilty or nolo contendere to a felony related to participation in the real estate or mortgage loan industry that involved an act of fraud, dishonesty, a breach of trust, or money laundering.

☐ ☐ Is your company involved in any litigation or is any litigation threatened between your company and any investor, correspondent or government agency?

☐ ☐ Are any officers or employees excluded from Fidelity Bond Insurance or Errors and Omissions coverage?

☐ ☐ Has your company had to repurchase loans in the past 12 months? If so, explain the reason.

Origination History for Virginia and U.S

# Loans Conv. ($) # Loans Govt. ($) # Loans Jumbos

Nationwide Last Year: 20___

Virginia Last Year: 20___

Projected: 20___

Est. to be Sold to VHDA: 20____

If your Company has a servicing portfolio of loans originated in-house, please provide the following month and delinquency information for the most current month available: Total # of Loans Serviced: ________ Total $ Amount: $ ____________ Book Value _____________

30 Day (%) 60 Day (%) 90 Day % Bankruptcy & Foreclosure (%)

National Overall Residential Delinquency*

Virginia Residential Delinquency*

* Must be supported by scorecards or other documentation. Lender Compare Ratio on Neighborhood Watch will be reviewed by VHDA to determine eligibility status of Lender.


Investor References Please provide a minimum of three investor references. (HFA references acceptable)

1. Investor: _________________________ Contact Person: ______________________________ Phone #: _________________________ Email Address: ______________________________

2. Investor: ________________________ Contact Person: ______________________________

Phone #: ________________________ Email Address: ______________________________

3. Investor: _________________________ Contact Person: ______________________________

Phone #: _________________________ Email Address: ______________________________

Business Model In an effort to understand your company’s Business Model with regard to Loan Originations, please describe your company’s Loan Manufacturing process (e.g. Loan Originators originate loans, use internet for leads, use the internet for loan originations, etc.).

Disclosure I/we certify that, to the best of my knowledge, all information being submitted is true and correct. I/we further certify that: ________________________________________________________________

(Company Name) 1. Company has fully complied with all federal, state, and local laws and regulations applicable to

loans originated by the Company. 2. All owners and employees are checked against all applicable exclusionary lists, specifically

SAM,OFAC, FMEL, FHFA, LDP/GSA, and any other investor exclusionary list, and that no persons appearing on any exclusionary list are employed by or involved in any activities of the Company, and the compensation Company pays its loan originators complies in all respects with the loan originator compensation provisions of the Truth in Lending Act, Regulation Z, and federal and state consumer protection law.

3. All employees involved in the origination of mortgage loans have undergone and passed (typically upon hiring or licensure) a background check, in accordance with all applicable local, state and federal laws. Further, there have been no material changes in the status of any employee’s relative to their background and/or background check(s).

4. Company has implemented and will maintain a satisfactory Anti-Money Laundering (“AML”) Program as required by 31 CFR Parts 1010 and 1029, including without limitation the following: (A) The development of effective internal policies, procedures, and controls; (B) The designation of a qualified compliance officer; (C) An ongoing AML employee training program; and (D) An independent audit functions to test the AML Program.

5. Company will ensure that the above certifications remain true and accurate for so long as Company

has any dealings with VHDA and will promptly notify VHDA in the event that any of the above certifications cease to be true and accurate at any time.

6. Company will make any information and records regarding any of the above matters available to

VHDA upon request


Company: Principal Signature: __________________________________________________________________

Name (Print): __________________________________________________________________

Title: __________________________________________________________________

Company Name: __________________________________________________________________

Mailing Address: __________________________________________________________________

Phone Number: __________________________________________________________________


Documents to be submitted with Correspondent Lender Application Included in Submission Packet Yes No

☐ ☐ Provide a list of all branch offices that will originate loans on behalf of VHDA, the month and year each branch was established, and the geographical areas in which all loans are originated

☐ ☐ Provide address, email, phone number, number of underwriters and branch managers’ names. Note: Only offices located in the State of Virginia may originate VHDA loans

☐ ☐ Provide a copy of your current office lease to prove that branch has been open for at least 12 months

☐ ☐ Provide audited year-end financial statements, certified by an independent public accountant, for the most recent two years

☐ ☐ Provide explanations of any adverse findings, including a statement of explanation and resolution of said findings

☐ ☐ Provide disclosure of adverse change in financial position since the most recent audited financial statements provided to VHDA

☐ ☐ Provide a copy of the results of audit or examination within the past three years by Fannie Mae, Freddie Mac, HUD/FHA, VA or USDA, including any unfavorable findings

☐ ☐ Provide a copy of declaration pages (and endorsements if applicable) to substitute current policy limits and deductibles for your Fidelity Bond Insurance and mortgage Errors and Omissions coverage. Provide the named insurer rider if policy is in another name.

☐ ☐ Provide a copy of your Fannie Mae/Freddie Mac approval letter

☐ ☐ Provide a copy of your FHA Direct Endorsed (DE) Approval, VA LAPP Approval, and USDA Approval (if applicable)

☐ ☐ Provide a copy of Quality Control Plan and Appraisal Independence Requirements

☐ ☐ Provide Quality Control Reports for the past quarter, including trending reports

☐ ☐ Provide a copy of hiring procedures for checking all employees, including management, involved in the origination of mortgage loans, against the GSA Exclusionary list and HUD LDP list

☐ ☐ Provide a copy of your Information Security Policy

☐ ☐ Provide a copy of your Company Vendor Management Policy

☐ ☐ Provide a copy of your Company Training Policy

☐ ☐ Provide a copy of Acceptable Appraisal Independence Standards

☐ ☐ Provide a copy of your Anti-Money Laundering (AML) Policy