Bulletin 2024-086 Smart Series Underwriting Guide Updates
Newrez LLC "Newrez" Approved Correspondent Clients; effective with applications on or after December 20, 2024, the Smart Series Product Summaries have been updated with the following:
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Current Policy |
New Policy |
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SmartEdge, SmartSelf and SmartVest Guidelines |
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23. Geographic Restrictions- SmartSelf/Edge/Vest |
23. Geographic Restrictions- SmartSelf/Edge/Vest |
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Not Applicable |
U.S. Possessions and Territories are not eligible. |
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SmartEdge Guidelines |
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32. Asset Qualifier – SmartEdge |
32. Asset Qualifier – SmartEdge |
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Ineligible Qualifying Assets · 529 or similar college fund · Annuity · Business assets · Cash value of life insurance |
Ineligible Qualifying Assets · Annuity · Business assets · Cash value of life insurance |
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SmartEdge, SmartSelf and SmartVest Guidelines |
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1A.10 (b) (ii) Non-Permanent Resident Alien |
1A.10 (b) (ii) Non-Permanent Resident Alien |
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Expiring Visas: if the authorization for temporary residency status will expire within one (1) year prior to the Note date and a prior history of residency status renewals exist, continuation may be assumed. |
Expiring Visas: if the authorization for temporary residency status will expire within one (1) year from the Note date and a prior history of residency status renewals exist, continuation may be assumed. |
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6A.4(I) Qualified Tuition Plan (529 Plan) |
6A.4(I) Qualified Tuition Plan (529 Plan) |
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Not stated |
A 529 Plan is a tax-advantaged savings plan designed to encourage saving for future college costs. A 529 plan, legally known as “qualified tuition plans”, are sponsored by states, state agencies, or educational institutions and are authorized by Section 529 of the Internal Revenue Code. When used for down payment or closing costs, if the value of the asset is at least 20% more than the amount of funds needed for down payment and closing costs, receipt of the funds realized from the sale or liquidation is not required. When used for reserves, 100% of the value of the assets may be considered and liquidation is not required. |
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7A.4 (s) Revolving Charges/ Line of Credit |
7A.4 (s) Revolving Charges/ Line of Credit SmartEdge & SmartSelf Only |