PCF Wholesale COVID-19 Temporary changes through May 1, 2020

April 10, 2020

Suspended products

  • Non-QM is suspended
  • Manual underwriting is suspended unless the loan is an IRRRL or Streamline
  •  Jumbo loans are suspended
  • FHA and VA High Balance loans are suspended unless the lock desk approved an exception and loan priced without failing ATR/QM points and fees test
  •  VA Cash out with an LTV greater than 90% is suspended unless an exception was granted by management
  • Investment loans are suspended unless an exception was granted by management
  • No Odd terms allowed 

Guideline updates

  • Sub 680 Wholesale FHA and VA FICO not allowed unless exception granted by the lock desk
  •  Conventional Mortgage Insurance is currently suspended on investment transactions
  • Cash out transactions are being reviewed by management on a case by case basis due potential forbearance
  • Bank statements must be dated within 30 days of the note date
  • Paystubs must be dated within 30 days of the note date
  • 2 months PITI reserves required on all purchase transactions
  • The use of rental income being used for qualifying is currently suspended
  • Student loans are currently in forbearance. There will be a 1% payment added to the liabilities on FNMA and a .50% on Freddie Mac
  • Loans with a DTI > 50% require a 700 minimum FICO or 6 months reserves
  • Self-employed income will be reviewed on a case by case basis. Non-Essential self-employed businesses are currently suspended
  • If using essential business self-employed income or 1099 income, the income will be reduced by 25% to account for disruption in the business unless the borrower can document 12 months reserves
  • Tax transcripts are waived at this time, but the file will need the most recent P&L (2019 and/or 2020 YTD) along with all pages of the 1040’s (if possible try to have the borrower create an account online to obtain transcripts)
  • PCF will follow Fannie/Freddie new appraisal requirements
  • Verbal VOE must be dated the day of funding unless exception was granted
  • COVID-19 Attestation form is required to be signed prior to funding


  • GAP coverage is not accepted nor are Title Indemnification Letters. The County Recorder’s office must be open at time of funding and or can e-record & e-file
  •  No COVID-19 indemnification clauses allowed on prelims.

Verbal VOE

  • Verbal VOE must be dated the same day of funding. All non-essential verbal VOEs must have a manager’s exception to proceed prior to docs. Essential businesses are considered.

1.      Agriculture and food processing

2.      Warehousing, storage and distribution

3.      Transportation

4.      Educational institutions, for the purposes of facilitating distance learning

5.      Food banks

6.      Veterinary clinics and pet stores

7.      Post offices and shipping businesses

8.      Banking institution

9.      Gas stations and auto-repair shops

10.  Hardware stores

11.  Government jobs

12.  Healthcare operations and Pharmacies

13.  Supermarkets and grocery stores


  • Self-Employed businesses must be an Essential Business and must be verified that they are still fully operating prior to funding.
  • All Streamline’s and IRRRL’s must have employment listed on the initial and final 1003. Employment must be verified to show sufficient income to cover the mortgage payment. If the borrower is retired or disabled, you must obtain documentation to support the payment of the mortgage.
  • COVID-19 PCF verbal voe form is required
  • If using an employer email, it must reflect all information listed on the COVID-19 PCF verbal VOE form

Have questions? Contact your AE or have an AE contact you: Marketing@pcfwholesale.com

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