Assistance for Our Brokers and Your Customers Impacted by COVID-19

Assistance for Our Brokers and Your Customers Impacted by COVID-19

Posted on April 1, 2020

By now, we are sure you have received a plethora of emails and communications from businesses related to COVID-19 and how they are handling it. We want this message to be different as we want to focus on one thing:

We are all in this TOGETHER.

During these unprecedented times, we know you have questions about such topics as appraisals, VOE’s, and EPOs. Our priority is to be transparent and as fast as possible with any news that will have an effect on your business.

Employment Verifications

Will CF Wholesale still fund loans if we cannot reach an employer to perform the verbal verification of employment (VOE)?

Yes. We’ve adopted alternative methods for VOE suggested by the agencies with some additional protections.

Property Valuation Requirements

If my borrower did a purchase or refinance within the last year and wants to use the appraisal prepared for that transaction where CF Wholesale was the lender, can we reuse it?

Yes, we will allow the use of an origination appraisal for subsequent Fannie Mae or Freddie Mac conventional transactions as outlined below:

  • The subsequent transaction may only be a Limited Cash-Out Refinance.
  • The appraisal report must not be more than 12 months old on the note date of the subsequent transaction. If the appraisal report is greater than 4 months old on the date of the note and mortgage, then an appraisal update is required.
  • We must ensure that the property has not undergone any significant remodeling, renovation, or deterioration to the extent that the improvement or deterioration of the property would materially affect the market value of the subject property.
  • The borrower and the lender/client must be the same on the original and subsequent transaction.

Are we going to adopt Freddie Mac’s new guidance related to Appraisal Waivers for Cash Out Refinances?

Yes, we are. Effective for submissions and resubmissions to Loan Product Advisor (LPA) on or after March 29, 2020, appraisal waiver eligibility for cash-out and limited cash-out transaction has been updated.

If a borrower doesn’t want anyone inside their home, including the appraiser, can they take photos of their home interior and send it to the appraiser to avoid contact? Can we use an exterior only Limited Appraisal (Form 2055) in lieu of a full appraisal?

For conventional loans, FHA and USDA Loans (that are not associated with community lending), we are following temporary flexibilities afforded by the agencies related to appraisal inspection and reporting requirements. If a traditional appraisal order is attempted but can’t be obtained due to COVID-19 concerns, we will accept an alternative appraisal as outlined in the following table:

For FHA and USDA existing construction only. Appraisal Flexibilities are not accepted on New Construction, Construction to Permanent, Building on Own Lands, and 203(k) transactions

Loan PurposeAccepted Appraisal Report Flexibilities
  • Desktop Appraisal
  • Exterior-only
  • Rate/Term RefinanceExterior-only
    Cash-Out RefinanceNo alternative accepted. Interior and exterior inspection must be obtained


    Loan PurposeOccupancyProgramAccepted Appraisal Report Flexibilities:
  • Conventional
  • FHA1
  • Desktop Appraisal
  • Exterior-only
  • Second HomeConventional
    LTV ≤ 85%
  • Desktop Appraisal
  • Exterior-only
  • Second HomeConventional
    LTV > 85%
    No alternative accepted. Interior and exterior inspection must be obtained
    Rate and TermPrimaryFHAExterior-only
    AllConventional: Mortgage being refinanced owned by same agency as current proposed loan program i.e. Fannie to Fannie or Freddie to FreddieExterior-only
    Conventional: Mortgage being refinanced not owned by same agency as current proposed loan program i.e. Fannie to Freddie or Freddie to FannieNo alternative accepted. Interior and exterior inspection must be obtained
    Cash-Out RefinancePrimary
  • Conventional
  • FHA
  • No alternative accepted. Interior and exterior inspection must be obtained

    1 New construction loans are not eligible for Exterior-Only Appraisals. A Desktop Appraisal must be ordered if a traditional appraisal cannot be completed.

    2  In order to take advantage of the appraisal report flexibilities offered by the agencies for conventional Rate and Term Refinances, our team members must validate that the mortgage being refinanced is owned by the same agency as the current proposed loan program to be eligible for an exterior-only appraisal. The Loan Officer is responsible for inputting the current agency on the Credit > Liabilities > Mortgage Liability Financing Type. If this information can not be validated on the credit report, Fannie Mae and Freddie Mac loan look up tools can be utilized. The Transaction Assistants and appraisal desk team members can also utilize the look up tools to confirm that an external only appraisal is only being ordered for Fannie Mae to Fannie Mae or Freddie Mac to Freddie Mac transactions.

    Does CF Wholesale charge EPO for Borrower Paid transactions?

    No. CF Wholesale does not charge the Mortgage Broker an EPO for borrower paid transactions.

    Borrower Payments

    We strongly encourage your customers to use our digital tools for self-service on our website. Access your account online 24/7 via their computer or mobile device. From there, they can make payments, view their loan history, access e-statements, and more. If they haven’t created an account online, it only takes a few minutes. Register now.

    We understand that financial situations can change quickly. Rest assured, we are here to help. A range of hardship programs is available for our mortgage customers through our service provider, Dovenmuehle Mortgage, Inc. We encourage customers who may be impacted to contact Dovenmuehle to discuss the range of options that are available.
    Please direct your request to one of the following:

    • In order to evaluate what options are available to you as a homeowner, speak with one of our Dovenmuehle specialists at 866-397-5370.
    • As call volumes are currently high, you may also visit to submit a hardship application online. If you have not been to this site before, you will need to register as it is different from the website that contains your general mortgage loan information.

    Tax Transcripts

    Borrower Provided Tax Transcripts: As a reminder, CF Wholesale WILL accept borrower provided Tax Transcripts during this time. Please have your borrower reference the Customer Guide | Accessing Tax Transcripts step by step guide to accessing records related to tax filing status and tax transcripts on the IRS Website.

    Our Continuing Action

    We are constantly monitoring the supply chain and at this time, we see appropriate Business Continuity plans put in place for Appraisers, Notaries, Closing Agents, etc. For those elements in the chain that become problematic, we will keep you updated as close to real-time as possible. Please know that CF Wholesale is working remotely on your behalf and we do not expect any disruptions on our end to satisfy your client needs. Whether it’s personal or professional, if there’s anything we can do to help you, please let us know. We are in this together.