Plaza Home Mortgage^® just removed the self-employment overlays plus made other enhancements to our popular Jumbo 1 program. We also have updates to mortgage insurance and Jumbo AUS we want to tell you about.

Jumbo 1 Self-Employed Overlay Removal and Other Enhancements:

Effective for new commitments on or after July 23, 2021, Plaza’s Jumbo 1 program has been updated to remove overlays for self-employed borrowers. The update also includes other improvements and clarifications, highlighted below. These updates may be applied to existing commitments on an exception basis.

• Removed the maximum 70% LTV for self-employed purchase and rate/term.
• Removed max 35% DTI for self-employed rate/term.
• Cash-out refinances are now eligible for self-employed borrowers.
• Self-employed minimum FICO is 720. This is in lieu of the previous overlays. The 720 minimum does not apply if self-employed income is not required to qualify.
• Removed 80% max LTV/CLTV bullet point for first-time homebuyers in section 10 of the guidelines. The 80% max LTV/CLTV does not apply and the bullet was initially included in error.
• Clarified that 3 months business bank statements are required when considering the impact of COVID-19 on the business and the stability of income when the P&L provided is an unaudited P&L. Business bank statements are not required when an audited P&L is provided.
• A CDA (appraisal review) will no longer be required when the CU score <= 2.5 and LTV <= 80% and loan amount <= $1,500,000 (all 3 must apply).

As always, refer to the updated Jumbo 1 Program Guidelines for complete details.

Mortgage Insurance Updates:

• Genworth Mortgage Insurance has changed their name to Enact^SM. Plaza’s guidelines have been updated to reflect this change.
• Arch MI has been added as an eligible Mortgage Insurance Company for manufactured homes.

Jumbo AUS:

Clarified insurance coverage requirements when the coverage amount does not cover the loan amount. A cost estimate is required if the insurance coverage on the declaration page does not cover the loan amount. If a cost estimate is not provided, the policy must clearly and specifically indicate 100% replacement cost or Guaranteed replacement cost. The words 100% or Guaranteed must be on the policy if the coverage amount is less than the loan amount.

Jumbo AUS Guidelines

Please reach out to your Plaza Account Executive or email us at hereforyou@plazahomemortgage.com if you have questions on these changes.