Non-Agency Updates for Flex-IQ

Effective April 27th for new locks, Onity Mortgage announces the following updates to our FlexIQ 
products.

• Section 1.1 - added “that at a minimum includes OFAC screening and background check.”
• Section 2.5 - updated PPP loan amounts for OH and PA. Clarified “exceeding 20% of the original loan balance in a given 12-month time period”
• NEW Section 3.10 – added language for Texas 50(a)(6) and Texas 50(a)(4) loans
• Section 4.7 – removed “vesting in a layered or nested entity”
• Section 4.8.3 – added clarifying language for Guarantors, 3rd party fraud and data check. Added bullet “All personal guarantees must be notarized.” Removed – bullet related to personal guarantees.
• NEW Section 4.8.4 “Layered Entities” – added this section detailing allowance of up to 2 layered entities
• Section 5.3 – inserted “AND”
• Section 6.4.2.1 – changed lowest acceptable expense ratio for Business Bank Statements using a 3rd party expense statement from 20% to 15%
• Section 6.5.3 – changed “bank statements” to “asset statements”, added “for qualification”, changed "verified within 10 days of the Note Date” to “verified within 60 days of the Note Date.”
• Section 7.1 – added “Where FlexIQ Guides are silent…”
• Section 7.4 – added “On a DSCR loan, if the entity name on the business bank statements is the same as the entity that will be on title, this is not applicable.” Added clarifying statement “excluding DSCR loans”
• Section 9.1.5 – added “Unpermitted ADU’s” as an ineligible property type. Note: this is a prohibited exception

• Added headers to clarify Full Doc and Alt Doc types
• Credit/Payment History Requirements – added “Significant” in front of Derogatory Credit Event
• Added Texas 50(a)(6) and Texas 50(a)(4) as Eligible Transaction Types

• Removed “rent free are not allowed” from matrix footnotes
• Borrower Eligibility section – added to Ineligible “First Time Investor living rent free”
• Credit/Payment History Requirements – added “Significant” in front of Derogatory Credit Event
• DSCR Calculation and Documentation section – removed from Refinance transactions requirement for a letter of explanation

If you have any questions, please contact your Correspondent Specialist, Sales Executive or contact us via the support line at 1-800-929-4744.