GMFS will be adopting both the VA Circular 26-20-10 and FHA Mortgage Letter 2020-05 related to flexibility during COVID quarantines.

In addition, we will be allowing temporary flexibility related to 4506-T on FHA and VA loans.

4506-T Updated:

For loans closed between now and May 17th there will be a change to the guidelines for self-employed and >25% commission borrowers:

• in lieu of tax transcripts you may obtain two years tax returns.
• Standard GMFS guidelines will apply after May 17th

Summary of VA and FHA Guidelines:

Relief from VA & FHA regarding VVOE (For loans closed by May 17, 2020):

• You can use the most recent pay stub immediately preceding the closing,
• OR one full month bank statement within 30 days of closing that shows that same deposit immediately preceding the closing, in lieu of the VVOE. This requires 2 months PITI reserves on purchases.

For FHA Relief regarding appraisals (For appraisals completed by May 17, 2020):

• See Mortgage Letter 2020-05 for more detail on when other inspections are allowed.
• Cash-Out refinances do not qualify for appraisal inspection relief.
• All reports must still be completed on Form 1004.