Please see details below for the unified strategy for home buyers financing now till Sept 30th 2020.
If you have any questions or clients who need assistance, I am here to help.
INSURED/INSURABLE & UNISURABLE PURCHASE (30yr/$1M+) DEALS – unified strategy from insurers:
In light of the current environment related to COVID-19, we understand that certain borrowers may have had income temporarily interrupted that may be in the midst of the home-buying process. The Mortgage Insurers have collaborated to provide further guidance on the treatment of applications for these situations currently in the pipeline as noted below.
Where a Lender has been advised that a borrower with a previously approved application is experiencing income disruption due to COVID-19 and the borrower still wants to move ahead with the application, the Mortgage Insurer will maintain its previous approval provided all the following conditions are met:
- The application was approved as of March 25, 2020
- The borrower has entered into a legal binding purchase and sale agreement and waived financing conditions as of March 25, 2020
- The closing date is on or before September 30, 2020
In such cases, the Lender will maintain the previously provided income that was originally used to qualify the mortgage insurance application (a resubmission is not required). The Lender must continue to complete appropriate income/employment confirmation (based on the income/employment prior to the interruption) and document their file accordingly.
If the situation does not fall into the criteria above, Lenders should adjudicate the file based on the current income situation. Exceptions may be considered on a case-by-case basis, the Lender should refer the application to the Mortgage Insurer for further assessment.
Cheers
Pauline