Ocwen Loan Servicing, LLC

Announcements

LGA 17-27 CS - Issued 6/19/2017: The Lender's Underwriting Guide and FHA Overlay have been updated to reflect the changes listed below. Click here to download LGA 17-27 CS for details. These documents may be viewed in their entirety through MortgageBotLOS or the Homeward Residential website (HomewardFunding.com).

LGA 17-23 CS - Issued 6/23/2017: Effective June 9, 2017, Ocwen will be offering the FHA Simple Refinance. Click here to download LGA 17-23 CS for details. These documents may be viewed in their entirety through MortgageBotLOS or the Ocwen Funding website (OcwenFunding.com).

LGA 17-21 CS - Issued 5/24/2017: The Lender's Underwriting Guide, LP Open Access Matrix and the Conventional Overlay Sheet have been updated to reflect changes with the NEW Freddie Guidelines. Click here to download LGA 17-21 CS for details. These documents may be viewed in their entirety through MortgageBotLOS or the Ocwen Funding website (OcwenFunding.com).

LGA 17-20 CS - Issued 5/8/2017:strong> The Lender's Underwriting Guide, FHA Overlay Sheet and HomeReady Fixed Product Matrix have been updated to reflect the changes in the lending guide. Click here to download LGA 17-20 CS for details. These documents may be viewed in their entirety through MortgageBotLOS or the OcwenFunding.com website.

LGA 17-19 CS - Issued 5/1/2017: The Lender's Underwriting Guide has been updated to reflect changes in the lending guide. Click here to download LGA 17-19 CS for details. The documents may be viewed in their entirety on OcwenFunding.com.

LGA 17-18 CS - Issued 4/15/2017: The Lender's Underwriting Guide and Product Overlay Sheets have been updated to reflect changes in the lending guide. Click here to download LGA 17-18 CS for details. The documents may be viewed in their entirety on OcwenFunding.com.

LGA 17-17 CS - Issued 4/15/2017: The April 15, 2017 Version of the Lender's Underwriting Guide (click here) and Overlay Sheets should be used for all loans that are run through LPA for the first-time on or after to March 6, 2017 or DU loans registered on or after April 15, 2017.

If an LPA loan was initially run through LPA initially prior to March 6 and will be closing prior to May 15, 2017 OR is a DU loan that was registered prior to April 15, 2017, the 3/28/17 version of the Lender's Underwriting Guide (click here) should be followed.

The Lender's Underwriting Guide and Product Overlay Sheets have been updated to reflect the changes listed below. Click here to download LGA 17-17 CS for details. The documents may be viewed in their entirety OcwenFunding.com

LGA 17-16 CS - Issued 4/15/2017: Beginning April 15, 2017, all loans scored through Loan Product Advisor (LPA) must use the NEW Freddie Guidelines. Guidance and important deadlines have been provided in LGA 17-16 CS. The document may be viewed in its entirety on the Ocwen Funding website.

LGA 17-15 Issued: 3/30/2017 The FHA Overlay Sheet has been updated to reflect the changes as listed on LGA 17-15 CS. The document may be viewed in its entirety on the Ocwen Funding website.

LGA 17-14 Issued: 3/28/2017 The Lender's Underwriting Guide and Product Matrices have been updated to reflect changes as listed on LGA 17-14 CS. The documents may be viewed in their entirety on the Ocwen Funding Website.

LGA 17-13 CS - Issued 3/21/2107:Effective March 6, 2017 Loan Product Advisor®(LPA) began issuing updated messaging based on the revised underwriting requirements related to income and assets. While the AUS messaging was updated with NEW guideline messages, Homeward is not requiring new Freddie Mac guidelines at this time. Guidance and important deadlines have been provided on LGA 17-13 CS.

Click here for LGA 17-13 CS
Click here for Loan Product Advisor® March 2017 Release

LGA 17-12 Issued: 3/16/2017 The Lender's Underwriting Guide, Product Matrices and FHA Overlay have been updated to reflect changes as listed on LGA 17-12 CS. The documents may be viewed in their entirety on the Ocwen Funding Website.

LGA 17-11 Issued: 2/24/2017 The Lender's Underwriting Guide has been updated to reflect changes to Tax Return Requirements as listed on LGA 17-11 CS. The documents may be viewed in their entirety on the Ocwen Funding Website.

LGA 17-005 Issued: 2/1/2017 The Lender's Underwriting Guide, FHA Overlay Sheet and Conventional Overlay Sheet have been updated to reflect the changes listed on LGA 17-05CS. The documents may be viewed in their entirety on the Ocwen Funding Website.

LGA 17-04 CS Issued: 1/23/17 Based on the most recent HUD announcement precipitated by the United States' New Administration, Ocwen has updated the FHA Matrices to reflect the annual MIP previous to the reduction implemented by HUD Mortgagee Letter 2017-01. Ocwen will communicate any changes to this policy in the future. In other words, there is no reduction in annual MIP for FHA loans at this time. The FHA Product Matrices may be viewed on the Ocwen Website. For complete details, click here.

LGA 17-03 CS Issued: 1/13/17 - Client Select Announcement for FHA
The FHA Product Matrices have been updated to reflect the reduction in in annual MIP.
The FHA Product Matrices may be viewed on the Ocwen Funding Website. For complete details, click here.

LGA 17-02 CS Issued 1/10/2017 - Client Select Underwriting Announcement - The Lender's Underwriting Guide, FHA Overlay Sheet and Conventional Overlay Sheet have been updated. The documents may be viewed in their entirety on the Ocwen Funding Website. For complete details, click here.

LGA 17-01 CS Issued 1/3/2017 - Announcement for Conventional Conforming and FHA - Please see Underwriting Guide, Overlay Sheet and Product Matrices. For complete details, click here.

LGA 16-083 CS Issued 12/22/2016 - Changes to Lender's Underwriting guide and FHA Overlay sheet. Please see Guide or Overlay Sheet for complete details(click here).

LGA 16-081 CS Issued 12/12/2016 - New Conforming Loan Limits for loans delivered on or after January 1, 2017. The changes have been made and published. All Product Matrices may be viewed on the Ocwen Funding Website. Click here to download LGA

LGA 16-080 CS Issued 12/12/2016 - Introducing Fannie Mae's HomeReady Product Beginning December 13, 2016.The changes, outlined below, have already been made and published. The Lender's Underwriting Guide and the Conventional Overlay may be viewed on the Homeward Funding Website. Please see Guide for complete details. Click here to download LGA

LGA 16-079 CS Issued 12/12/2016 - Overview: All FHA ARM Product Matrices have been updated to reflect the new ARM Change dates as listed below. The Product Matrices may be viewed on the Homeward Funding Website. Click here to download LGA

LGA 16-078 CS Issued:12/05/2016 - Overview The changes, outlined below, have already been made and published. The Lender's Underwriting Guide and the Conventional Overlay may be viewed on the Ocwen Funding Website. Please see Guide for complete details.

CORRECTED VERSION - LTV, TLTV and HTLTV Ratios - Loans being refinanced are NOT Ocwen Serviced loan. Click here to download LGA

LGA 16-077 CS Issued:11/30/2016 - Overview The changes, outlined below, have already been made and published. The Lender's Underwriting Guide and the Conventional Overlay may be viewed on the Ocwen Funding Website. Please see Guide for complete details.

NEW POLICY - Escrow Accounts/Impound Waivers. Click here to download LGA

LGA 16-071 CS Issued: 11/01/16
OVERVIEW
:
The changes, outlined below, have already been made and published. The Lender's Underwriting Guide may be viewed on the Ocwen Funding Website. Please see Guide for complete details. Guidance has been added in the following sections of the Lender's Underwriting Guide:

CHAPTER 5: HOME AFFORDABLE REFINANCE PROGRAM (HARP)

5C - FREDDIE MAC RELIEF REFINANCE MORTGAGES SM

Click here to download LGA

LGA 16-066 CS Issued 10-28-2016
OVERVIEW: The changes, outlined below, have already been made and published. The Lender's Underwriting Guide and Product Matrices have been updated. These may be viewed on the Homeward Funding Website. Please see documents noted for complete details.

CHAPTER 1: LOAN ELIGIBILITY STANDARDS
1J - Types of Transactions

f) Texas Equity 50(a)(6) - Limited Cash Out Refinance and Cash Out Refinance
Texas 50(a)6 guidelines were clarified regarding transaction types involving purchase money secondary financing.

CHAPTER 2: PROPERTY
2Q - Disaster Area Lending Policy

Policy was clarified and additional guidance was added

CHAPTER 3: CONVENTIONAL UNDERWRITING

3F - Income
g) Commission Income
Updated to clarify differences between DU and LPA when calculating Commission Income.
3L - Appraisal Review
Accessory Units
only ONE accessory unit permitted; multiple accessory units are not permitted

The hyperlink for loan limits has been updated on the following Matrices:

  • CS High Balance Fixed and ARM
  • CS Super Conforming

Click here to download LGA

LGA 16-053CS Issued: 9/22/2016
OVERVIEW: The Lender's Underwriting Guide has been updated to reflect the NEW Insurance Mortgagee Clause in the following sections:

CHAPTER 2: PROPERTY
2M - Hazard Insurance

a) Hazard Policy Requirements
e) Planned United Development (PUD) Requirements for Hazard Insurance
f) Condo Requirements for Insurance

NEW Insurance Mortgagee Clause

Ocwen Loan Servicing, LLC
Its Successors and/or Assigns,
P.O. Box 6723
Springfield, OH 45501-6723
Phone: (866)317-7661


The CS Conventional Overlay Matrix Sheet was updated (page 2):

Verbal Verification of Employment

  • For Self-Employed Borrowers - it is necessary to verify the existence of the Borrower's
    business within 30-calendar days prior to the note date. The Note Date is defined as the date on the front of the Note, which may or may not be the date the note is signed.

Click here to download LGA 16-053

LGA 16-051 CS Issued: 9/20/2016
OVERVIEW: A correction reflecting PMI guidance on Fannie Mae loans with LTVs between 95.01-97% in the following:

CHAPTER 2: PROPERTY
2K - MORTGAGE INSURANCE & CONVENTIONAL MATRICES

The following Overlay has been updated on the CONVENTIONAL OVERLAY SHEET:

CUSTOMER LOANS

Affiliated Mortgage Brokers, owners of mortgage firms, employees of affiliated mortgage brokers and/or mortgage firms are not permitted to obtain financing through Ocwen. Any loans meeting this criteria would require an exception to this overlay.

Restrictions and guidance have been clarified in the following sections:

CHAPTER 5: HOME AFFORDABLE REFINANCE PROGRAM (HARP)

5A - HOME AFFORDABLE REFINANCE MORTGAGE (HARP)
5C - FREDDIE MAC RELIEF REFINANCE MORTGAGESSM
APPENDIX A - Freddie Mac Relief Refinance Mortgages Income & Asset Documentation
APPENDIX B - Manufactured Home Requirements

Click here to download LGA 16-051 CS

LGA 16-050 CS Issued: 9/9/2016
OVERVIEW: References to Freddie Mac's AUS have been updated to reflect the new name.
Loan Prospector (LP) is now Loan Product Advisor (LPA)

CHAPTER 1: LOAN ELIGIBILITY STANDARDS

1J - Types of Transactions

c) For All Non-HARP Refinance Transactions
Provided clarification on DU Scored Refinance Transactions
d) Limited Cash Out Refinance
Removed requirements related to Restructured Loans

Clarification of Significant Derogatory Credit Guidance has been provided in the following sections:

CHAPTER 3: CONVENTIONAL UNDERWRITING

3E - CREDIT

i) Derogatory Credit (Bankruptcy, Foreclosure, Deed-in-Lieu of Foreclosure,
Short Sale and Pre-Foreclosure Sale)
j) Bankruptcy (Chapter 7 or 11)
k) Bankruptcy (Chapter 13)
l) Foreclosure
m) Deed-in-Lieu (DIL) of Foreclosure, Pre-foreclosure (PFS) and Short Sale

3F - INCOME

m) Self-Employed Income
Document Alternatives for K-1 income on DU Loans

CHAPTER 5: HOME AFFORDABLE REFINANCE PROGRAM (HARP)
and DU Refi Plus and LP Open Access Product Matrices have been updated to reflect:

HARP has been extended to loans with application dates on or before September 30, 2017 and funded by Homeward with all documents received no later than March 30, 2018.

CONVENTIONAL OVERLAY SHEET was updated to include:

Correction made: LPMI is permitted on Super Conforming and High Balance Loans.

Click here to download LGA 16-050 CS

LGA 16-049 CS Issued: 9/8/2016
OVERVIEW: New Version of Fannie Mae's Automated Underwriting System being released & old version is being retired

On September 24th, Fannie Mae will be releasing Desktop Underwriter (DU) Version 10.0. With this latest release, DU Version 9.2 will be retired. This means that lenders will no longer be able to resubmit loan casefiles created under Version 9.2 after September 23rd.

Online applications and DU Underwriting Findings reports created under DU 9.2 will still be available for viewing. However, to obtain an updated underwriting recommendation on a DU 9.2 casefile, lenders must create a new loan casefile and submit to DU.

Loan casefiles created under DU 9.3 will not be impacted.

CHAPTER 5: HOME AFFORDABLE REFINANCE PROGRAM (HARP)
and DU Refi Plus and LP Open Access Product Matrices have been updated to reflect:
HARP has been extended to loans with application dates on or before September 30, 2017 and funded
by Homeward with all documents received no later than March 30, 2018.

CONVENTIONAL OVERLAY SHEET was updated to include:
Correction made: LPMI is permitted on Super Conforming and High Balance Loans.

Click here to download LGA

LGA 16-049 CS Issued: 9/8/2016
OVERVIEW: New Version of Fannie Mae's Automated Underwriting System being released & old version is being retired

On September 24th, Fannie Mae will be releasing Desktop Underwriter (DU) Version 10.0. With this latest release, DU Version 9.2 will be retired. This means that lenders will no longer be able to resubmit loan casefiles created under Version 9.2 after September 23rd.

Online applications and DU Underwriting Findings reports created under DU 9.2 will still be available for viewing. However, to obtain an updated underwriting recommendation on a DU 9.2 casefile, lenders must create a new loan casefile and submit to DU.

Loan casefiles created under DU 9.3 will not be impacted.

Click here to download LGA

LGA 16-047 CS Issued: 8/31/2016 The changes, outlined below, have already been made and published. The Overlay Matrix Sheet may be viewed in MortgagBot. Please see Overlay Matrix Sheet for complete details.
The CS FHA Overlay Matrix Sheet was updated (page 3):

Customer Loans

  • Affiliated Mortgage Brokers, owners of mortgage firms, employees of affiliate mortgage brokers and/or mortgage firms are permitted to finance 1- unit properties ONLY. All Affiliated Borrower or Employee Loans must be marked for
    QC Review.
LGA 16-043 CS Issued: 7/11/2016
Effective immediately, Ocwen is making several updates to the Lender's Underwriting Guide.
  • CHAPTER 2: PROPERTY
    • 2D - Property Inspection Waivers (PIW)
      PIW Recommendation may be available on certain loans.
  • CHAPTER 3: CONVENTIONAL UNDERWRITING
    • 3E - Credit
      • h) Mortgage Payment Verification History
        Verbiage updated for clarification.
    • 3F - Income
      • m) Self-Employed Income
        Verbiage updated for clarification.

The Conventional Overlay Sheet was updated to include the following:
All investment property purchase transactions where the Borrower does not currently own a primary residence or own any other investment properties must qualify with the full PITI payment; No rental income from subject may be used in this instance.

Click here to download LGA

LGA 16-040 CS Issued: 7/1/16
Introducing the NEW Lender's Underwriting Guide for Client Select
OVERVIEW
Ocwen has consolidated all Product Summaries for Conventional Conforming Products into one guide, The Lender's Underwriting Guide. The Lender's Underwriting Guide and Newly Formatted Overlay Sheets and Product Matrices have been published to Mortgage Bot and to the Ocwen Website.
The Guides that have been retired are as follows:

  • 100 Conventional Lending Guide
  • 200 Conforming FRM-ARM Product Summary
  • 201 DU Refi Plus Product Summary
  • 202 Conventional High Balance FRM & ARM Product Summary
  • 203 LP Open Access Product Summary
  • 205 Conventional Super Conforming FRM & ARM Product Summary

In addition to consolidating the Guides, we have updated some guidelines to make the underwriting process more efficient. The changes, have already been made and published to the Lender's Underwriting Guide and Client Select Product Matrices and Overlay Sheets. Changes were made to the following:

  • Loan Eligibility Standards
  • Property
  • Conventional Underwriting

Click here to download LGA

LGA 16-033 CS - Issued 06/06/2016 -Effective immediately, Ocwen is making several updates to the Conventional Lending Guide (100). Please click here for a synopsis of the changes.

LGA 16-032 CS - Issued 06/06/2016 -Effective immediately, Ocwen is making several updates to the Conventional High Balance Lending Guide (202), FHLMC Super Conforming Lending Guide (205) and Overlay Matrix. Please click here for a synopsis of the changes.

LGA 16-031 CS - Issued 06/01/2016 - Corrections to LGA 16-030 (issued 05/31/2016) for Conventional High Balance Lending Guide (202), FHLMC Super Conforming Lending Guide (205) and Overlay Matrix. Please click here for the LGA.

LGA 16-030 CS Issue Date: 05/31/2016
Effective immediately, Ocwen is making several updates to the Conventional Lending Guide (100), Conforming FRM & ARM Lending Guide (200) and matrix, Conventional High Balance Lending Guide (202), FHLMC Super Conforming Lending Guide (205) and Overlay Matrix. Please click here for a synopsis of the changes.

LGA 16-026 CS Issue Date: 04/21/2016
Effective immediately, Homeward is making several updates to the Conventional Lending Guide (100) regarding allowable age of federal tax returns. Please click here for a synopsis of the changes.

LGA 16-024 CS Issue Date: 04/13/2016
Effective immediately, Ocwen is making several updates to the Conventional Lending Guide (100) and Conventional Overlay. Please click here for a synopsis of the changes.

LGA 16-018 CS Issue Date: 03/30/2016
Effective immediately, National MI is being removed from the list of approved MI providers. Ocwen has updated the following guides effective immediately:

  • 100 Guide Conventional Lending
  • 200 Guide Conforming FRM & ARM
  • 202 Guide Conventional High Balance
  • 205 GuideFHLMC Super Conforming

Click below for a synopsis of the update.

LGA 16-010 CS Issue Date: 03/11/2016
Ocwen is making several updates to the DU Refi Plus and LP Open Access Matrices. Click below for a synopsis of the update.

LGA 16-009 CS Issue Date: 03/01/2016
Ocwen is making several updates to the CS Conventional Lending Guide (100), Conventional High Balance (202), Non-Agency Jumbo Guide (400) Non-Agency Jumbo Matrix and Conventional High Balance Matrix. Click below for a synopsis of the update.

LGA 16-008 CS and LGA 16-008a Issue Date: 02/19/2016
Ocwen is making several updates to the CS Conforming FRM & ARM Lending Guide (200) and Conventional High Balance (202) effective immediately. Click below for a synopsis of the update.

LGA 16-007 CS Issue Date: 02/18/2016
Ocwen is making several updates to the CS Conventional Lending Guide (100) effective immediately. Click below for a synopsis of each update.

LGA-004 CS Issue Date: 02/01/2016

Ocwen is making several updates to the following guides effective immediately.

  • 100 - Conventional Lending Guide
  • 200 - Conforming FRM & ARM
  • 201 - DU Refi Plus
  • 203 - LP Open Access
  • 205 - FHLMC Super Conforming FRM & ARM
  • 300 - FHA
  • 400 - Non-Agency Jumbo FRM - ARM
  • Overlays - CS Homeward Overlays

Click below to download LGA for complete details.
Click here to download LGA 16-004

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