SS Memo 07-06
SELLING GUIDE REVISIONS: CONTACT UNDERWRITING
Date: May 16, 2007
Title Requirements/ALTA 2006 Endorsements
AHFC amended Section 9001.07 to coincide with the ALTA 2006 Endorsements providing enhanced coverage. At the same time AHFC requirements were reviewed; please note the following changes:
Each mortgage must be insured by an ALTA extended mortgagee’s policy naming AHFC as the insured without general exceptions.
The CLTA 103.1 endorsement for blanket easements is no longer required. ALTA Endorsement 9-06, which replaces Endorsement 100, is a comprehensive endorsement that provides sufficient coverage and may only be modified with AHFC’s permission.
Manufactured Home Program
AHFC is pleased to announce that the Board of Directors has approved an increase to the maximum loan amount available for Type II Manufactured Homes. The new maximum amount for loans secured by a Type II manufactured home located on fee simple land is $175,000 and $100,000 for all other Type II units. All other program requirements remain unchanged.
VOE for Military Borrowers
(Section 4003.01, 5003.07, and 8000.02.B)
AHFC recently became aware that the U.S. Air Force will no longer complete verifications of employment. To calculate income for Air Force personnel, lenders and AHFC must rely on the borrower’s most recent LES (Leave and Earnings Statement) and updated information obtained from various online sources. Taking into consideration that other branches of the Armed Forces may institute a similar policy, effective with the date of this memorandum, AHFC will no longer require a completed VOE on active duty military borrowers. Lenders must obtain the most recent LES and verify the type and amount of entitlements the borrower receives.