Lender Alerts

Dear Licensed Partner,

In accordance to VA Circular 26-20-10 and 26-20-11 that offer temporary flexibilities on VA loans amid the COVID-19 national emergency, Sun West Mortgage Company, Inc. has updated its policy for VA programs to align with the VA guidelines as given below:

• Income Verification (Verification of Employment): Sun West will continue to use good judgment and flexibility when verifying stable and reliable income. If written verification of employment is not available, Sun West will accept one of the following documents in lieu of Verification of Employment if the proprietary method is impacted due to temporary business closure:
  • Employment and Income verification from third-party services, or

  • Evidence of direct deposit from a bank statement and paystubs covering at least one full month of employment within 30 days of closing date

• Verbal Verification of Employment (VVOE) for Wage Earners: Sun West will accept one of the following documentation in lieu of VVOE:
  • Written Confirmation: An email directly from the employer’s work email address that identifies the name and title of the verifier and the borrower’s name and current employment status; or
  • Paystub: Most recent year-to-date (YTD) paystub from the pay period that immediately precedes the note date; or

  • Bank statements: Borrower’s bank statement evidencing the payroll deposit from the pay period that immediately precedes the note date.

• Verbal Verification of Employment (VVOE) for Self Employed Borrower: Sun West will complete an additional due diligence for self-employed borrowers regarding continuity of employment and income. An example of additional due diligence would be verifying that the borrower’s business is operational within 10 days of the Note date.



• For an applicant impacted by COVID-19 (furlough, curtailment of income); Sun West will not consider a break in employment or income provided the applicant has returned, or is anticipated to return, to work in the same capacity and income levels. If the income is reduced during this period, the most recent income (reduced income) will be used to qualify the borrower if the reduced income is likely to continue.

• VA Appraisal Flexibility: Effective immediately, Sun West is allowing temporary flexibility for appraisal inspections and reporting requirements. An appraisal may be in form of an Exterior-only Inspection or Desktop Appraisal except for:
  1. Purchase Transaction (vacant property): When the appraiser’s assigned geographic jurisdiction does NOT have restrictions imposed by authorities prohibiting individuals leaving their domicile, such as mandatory quarantine or shelter-in-place orders.
  2. Purchase or Refinance Transaction (property occupied): When the appraiser’s assigned geographic jurisdiction does NOT have restrictions imposed by authorities prohibiting individuals leaving their domicile, such as mandatory quarantine or shelter-in-place orders. In addition, all parties must agree to the interior inspection and meet the following:
     • Either party has not been instructed by health authorities to stay home or practice social distancing; or
     • Does not have flu-like symptoms (such as fever, cough, or shortness of breath); or
     • Has not been quarantined under direction of public health authorities; and
     • No parties are within the CDC guidance of high risk found at: https://www.cdc.gov/coronavirus/2019-ncov/specific-groups/high-risk-complications.html
  
  

  • If either party does not wish to move forward with the interior inspection or do not meet the criteria listed above, the appraisal may be done with an exterior-only appraisal with enhanced assignment conditions.

• All the above policies are effective immediately until further notice.

If you have any questions, please contact your Client Relations Manager at (855) AT-SUNWEST or (855) 287-8693.