The frequently asked questions list is intended to assist Carrington Mortgage Services, LLC (CMS) customers when completing the Request for Mortgage Assistance (RMA) Application.
1. What is the process after borrower submits the RMA?
The Intake Department has up to five business days to review the initial RMA and provide written notice whether the application is complete or incomplete (documents and/or information is missing or outdated). Additionally, if incomplete, Loan Servicing makes follow up calls to convey the application status until the application is complete and in review with underwriting.
2. Does CMS obtain credit report copies of a borrower and contributor?
CMS obtains copies of the credit reports for borrower and contributor to ensure credit obligations are included under a qualifying review process.
3. Does borrower’s income determine the eligibility for approval?
Each borrower and loan modification options are unique; therefore, many factors take consideration in the approval process in accordance with investor guidelines.
4. Are borrowers required to include the ordered child support in Section D of the RMA (expenses for the household)?
The ordered child support is an expense; therefore, borrowers must include the amount on Section D (expenses for household).
5. What is a Profit and Loss Statement?
A profit and loss statement summarizes gross sales, net income and business expenses. The most recent profit and loss statement for 3 months requires a date range in months, borrowers name, name of business, and borrower’s signature.
6. Are contributors required to live in the property when submitting an RMA application?
All applicants not currently obligated under the Note along with borrowers must live in the home and supply all information as if they were obligated under the mortgage.
Note: FHA loans require all applicants and borrowers to sign any trial, modification and or partial claim documents and formally assume the obligation of the note if a loan modification or partial claim is completed.
7. What are the qualified proof of occupancy items for a contributor?
Utility bills are preferred as proof of occupancy; however, pay stubs and bank statements are often considered proof of occupancy for contributors. When these items are not available, the contributor must provide any available items mailed to the subject address.
8. What are 1040, 1120 and 1065 tax forms?
These are federal tax forms from the Internal Revenue Services (IRS). Most non-business owners file a 1040 form. An S Corporation as well as Limited Liability Company (LLC) files 1120 or 1120S tax forms. A 1065 form is a partnership return. Instruct customer to refer to the most recently filed tax return.
9. Are customers required to check the 4506-T signatory attest box?
Yes, the signatory attest box is required. Otherwise, the 4506-T form is illegible and deemed incomplete.