To submit a loan, do we need to go through your web portal?
Yes, everything is done on line through the portal.
How do we obtain login credentials?
Our Admin Department gives out credentials to all new loan officers and processors when the first loan is submitted. If a processors work with multiple loan officers, let us know so they are able to access/view all of their loans.
Do you allow loans to be submitted TBD/No Appraisal?
Yes, a loan can be submitted TBD and we also accept loans without an appraisal. Please upload the loan like you normally would but make sure the “Pre-Approval” box is checked. Do not “Register” the loan under Forms and Docs. (Registering the loan would trigger compliance alerts). You still need to upload a 1003/1008, income, asset, and all other pertinent documentation. How to submit a tbd.
Does 5th Street Capital disclose the LE (Loan Estimate) for us?
5th Street Capital will disclose the LE electronically to your borrower once we receive the requirements for disclosing from your office. Fees and a full submission package, as defined by 5th Street Capital, must be provided within 24 hours of loan application, all in accordance with applicable laws, rules, and regulations.
What documents need to be uploaded for 5th Street to disclose?
1003 dated within 24 hours of loan import
Broker Submission / Fee Sheet Estimated Settlement Statement from escrow
Do you require a credit report?
Yes, but will also pull our own credit when the loan is submitted.
Does your company do the verifications, such as the VOE?
We order the VOE’s unless its specified on the condition sheet that we would require you to order it.
Are there specific forms that we need to download to provide to the borrowers for the initial disclosures or do we just use our disclosures?
No, you can use your own and we don’t ask for or require your disclosures.
Do any initial disclosures need to be wet signed?
Yes, the 4506 -T must be wet signed but will not hold up your file from moving through the loan process, once received we will order transcripts for you.
If we run AUS we will need to assign it over to 5th Street Capital?
No, we don’t require a copy of an AUS finding.
What documents need to be provided by you?
CPL – needs to be in 5th Street Capital’s name
Hazard Insurance – needs to reflect 5th Street Capital as the loss payee
Appraisal – if performed for another lender we require an appraisal transfer letter
Preliminary Title Report
Desk/Field Review (if required)
What are the insurance & condo requirements?
All property types (with the exception of condo’s**)
Required coverage equal to the lesser of the following:
100% of the insurable value of the improvements, as established by the appraisal or property insurer; or
the unpaid principal balance of the mortgage, as long as it at least equals the minimum amount—80% of the insurable value of the improvements.
Insurance must cover 100% of the insurable replacement cost of the project improvements, including the individual units in the project. An insurance policy that includes any of the following coverage, either in the policy language or in a specific endorsement to the policy, is acceptable: Guaranteed Replacement Cost – the insurer agrees to replace the insurable property regardless of the cost, Extended Replacement Cost – the insurer agrees to pay more than the property’s insurable replacement cost, or Replacement Cost – the insurer agrees to pay up to 100% of the property’s insurable replacement cost.
If the policy is a “bare walls policy” This policy typically provides no coverage for the unit interior, which includes fixtures, equipment, and replacement of interior improvements and betterments. As a result, the borrower must obtain an individual HO-6 policy that provides coverage sufficient to repair the condo unit to its condition prior to a loss claim event, as determined by the insurer.
Liability Insurance Requirements
The amount of coverage must be at least $1 million for bodily injury and property damage for any single occurrence.
**if property is a site condo without a master policy follow all property type coverage requirements
Are we required to use 5th Street Capital’s forms available on the resource center?
You can use your forms.
Who underwrites and funds the loan?
We underwrite, draw docs and fund the loan for you.
What is the licensing requirements for the LO’s?
The loan officer must have their NMLS license.