Construction End Loan Pre-Approval

Construction End Loan Pre-Approval

When you submit your loan for underwriting you will need to let MRG know by email ([email protected]) or by placing a message in the message tab of your file that the loan is being submitted as a Construction End Loan Pre-Approval. PLEASE NOTE: This process involves two files. See instruction on the following pages.

Merchants Underwriter will complete review similar to current end-loan submission. Underwriter would review and condition Prior to close (PTC) and At Close (AC) for items concerning:

- Appraisal - Flood

- SSR - XML for SSR

- Title - Findings in Final Status

- Credit - Assets

- Income

No At Close conditions (AC) for cash to close, 4506T, Verbals, or QA.

MRG to add Prior-to-Close (PTC) Condition to Construction file stating, “Underwriting to let MRG know when to collect $350 Underwriting fee upon Construction loan

Approval.”

Underwriter would include blanket statement for:

 Pre-approval receipt does not guarantee an approval at the end-loan

submission. Approval at the time of the end loan is subject to review of all updated credit documents and subject to any guidelines changes since the time of the pre-approval.

 All credit documents expired (over 120 days) must be updated at the time of the end loan submission.

 Pre-Approval from Construction file to be uploaded to documents by correspondent when submitting the End Loan to underwriting.

Underwriter to release Findings back to Lender once Pre-Approval of Construction file has been completed so they can be utilized for End Loan Submission. Underwriter to also change the status in Path to Rerun Services/Services Need Update.

CONSTRUCTION PROCESS

Tracking: Ideally, tracking will be done through our CALYX PATH system. If not available, MRG would be responsible for manually tracking for receipt of end loans in underwriting.

Turn Time: Turn Time will be as it is for Refinances Submission: Follow normal submission process

HMDA: Disposition not required until submission of end loan

UW Fee: $350 at time of pre-approval and $175 at final approval. MRG will deduct the fee by ACH. If end loan is underwritten more than 12 months after construction loan underwriting approval is issued, the underwriting fee for the end loan will be $350. No Pre-funding review of construction loan by QA. End loan will be subject to normal QA review process.

YOU WILL SUBMIT TWO FILES IN TWO DIFFERENT STAGES:

The 1st _{File – the construction file}

The 1

_file

order to obtain DO findings you must change loan to C-to-P (Construction to Perm), run findings and submit to underwriting. To run DO and obtain findings on the Construction Pre-Approval –Submit>application>product>Construction-Perm

When submitting your Construction Pre-Approval file to Merchants Underwriting – You will go under the tab Submit>application>product>and change the Loan Purpose to Construction

The 2nd file

 Appraisal: Recertification and completion certification, and UCDP successful SSR

 Credit docs: Updated and additional, of needed  Title: Updated showing construction loan

 Underwriting Receipt from Pre-approval: Lender to provide construction loan underwriting receipt. This is needed to ensure that only a $175.00 underwriting fee is charged on the end loan. Put a message (using the message tab) that the receipt is in the documents.

 Loan will be underwritten using the standard Merchant’s underwriting guidelines: 4506T, QA, Etc.

 See instruction on page 4 of how to keep the Casefile ID form the construction loan the same for the end loan.

 Lock your loan in the C-P refinance loan (second file), do not lock in the construction file

You will create a new file just as you do on a normal submission of a file - see Calyx Path Correspondent User Guide on our landing page for full input information on a file

How to Use the Existing Construction Loan Casefile ID on Your End Loan

Submit>Loan Application>Addendum>enter Casefile ID from construction loan

NOTE: Casefile ID’s are only good for 240 days, so if your end loan is more than 240 days after

your construction pre-approval findings, you will need to start a new casefile ID. Ordering DO on the end loan

When you order DO on the end loan, you will most likely have new credit. If so, choose the submission request of CREDIT & UNDERWRITING. Complete your passwords and user ID’s. Put in the Casefile ID from the construction loan if not over 240 days old.

Do NOT check the box

“Update existing Loan Data!” This is only used if you have changed data directly in DO and want those changes to update from DO to Path.