B-007 Updates to Closed-End Seconds and HELOCs
Florida Capital Bank is updating certain requirements in the Closed-End Second and HELOC mortgage products.
The following changes are effective immediately regardless of loan lock status:
- Self-Employment – Verification that the borrower’s business is active: Lenders can now follow AUS timing requirement (the verification must be completed within 120 days prior to loan closing).
- Appraisal/Property Valuation:
- Reduced the validity age of AVMs from 120 days to 60 days from the loan closing date.
- Increased the AVM’s Confidence Score from 80 to ≥ 90 and the forecasted standard deviation was reduced from 20% to a maximum deviation of 10%.
- If the property is located in a PUD, an HOA statement confirming the monthly amount due along with evidence these fees are paid current is now required.