Effective Immediately, Provident Funding has made the following changes to the Program Guidelines.
- Non-Arms Length Transactions - Updated the definition and clarified the program restrictions and documentation requirements (Conforming: Section 3.7, Non-Conforming: Section 3.6).
- Borrower Litigation - Added a section addressing the ineligibility of a Borrower currently engaged in litigation. (Conforming: Section 2.1.8, Non-Conforming: Section 2.1.9)
- Refinance Transactions - Updated to require at least one Borrower to be titled to the property and vested on the current mortgage. (Conforming: Section 3.6.1, Non-Conforming: Section 3.6.1)
- Interior Photos - Now required for the subject property when upgrades or improvements are stated on the appraisal as a reason for increased value. (Conforming: Section 4.2.4, Non-Conforming: Section 4.2.2)
- Non-Occupant Co-Borrowers - Updated definition as well as Desktop Underwriter specific requirements. (Section 2.8)
- Open Collection Accounts - Require all collection accounts to be paid when the combined amounts exceed $500 for loans evaluated by both LP and DU. (Section 2.3.3)
- Maximum Contribution - Home Possible Loans Only - Contribution limit increased to 6%. (Section 2.6.3)
These changes are effective immediately. Please review the updated program guidelines for more information.