Announcement 19-0007: Carrington Advantage Program Guideline and Pricing Updates

Overview

Effective January 22, 2019, Carrington Mortgage Services, LLC (CMS) is pleased to announce the below guideline changes for the Investor Advantage, Carrington Flexible Advantage and Carrington Flexible Advantage Plus products. The Pricing Engine has been updated and the changes apply immediately for all loans in the pipeline that are not already locked.

Guideline Improvements

• Updated the Maximum DTI from 43% to 50% on 12-month bank statements and 1-Year Alt Doc types for Carrington Flexible Advantage and Carrington Flexible Advantage Plus
• Reduced the 6 month reserve requirement to 3 months for $1M+ on Carrington Flexible Advantage
• Reduced the 12 month reserve requirement to 6 months for $1.5M+ on Carrington Flexible Advantage Plus
• Increased the maximum loan size to $3M for Carrington Flexible Advantage Plus
• Reduced the minimum Debt Coverage Ratio (DCR) to 0.75 from 1.00 for Investor Advantage

Pricing Improvements

To coincide with the guideline changes described above, please note the Pricing Engine has been updated with the following pricing changes:

• Carrington Flexible Advantage and Carrington Flexible Advantage Plus: 12-month bank statement pricing adjustment is eliminated and there is no longer a separate add-on to 24-month pricing. 24-month bank statement gets a price improvement with a 12.5% price improvement!
• Carrington Flexible Advantage Plus: Loan size maximum increase to $3M with additional pricing adjustments for the $2-$3M range.
• Investor Advantage: Debt Coverage Ratio (DCR) pricing down to 0.75 DCR down from minimum DCR of 1.00 along with new pricing tiers that are more favorable.

NOTE: Loans already locked will not be impacted by these price changes.

Contacts

Please contact CorrespondentRM@carringtonms.com with any questions.

Carrington thanks you for your business.