Fannie Mae Articles
|Fannie Mae Updates for HomeReady® Product - Dated February 2017 - HomeReady® FAQ’s | HomeReady® Features & Benefits | HomeReady® Product Matrix | HomeReady® Education Requirements | HomeReady® Non-borrower Income Flexibility
Fannies HomeReady Program March 2017|
The material for Fannie’s HomeReady® product just keeps on coming! In this update they add all sorts of materials that help you understand the program better and communicate the benefits of this program to your referral sources. If you are looking to target the Millennial population, make sure you read this update. (Fannie Mae Updates Multiple Supporting Documents for HomeReady® Product - Dated February 2017)
|Fannie Mae Selling Guide- Announcement SEL-2017-02 (Effective 2-28-2017) Market Rent Calculations | 4506-T with Validated Income | Required Homebuyer Counseling
Fannie Mae Rental Income March 2017|
Updates that are effective immediately for Fannie Mae are included here. Important news on the 4506-T requirements, HomeReady® Education and Counseling, and a new update to figuring rental income. (Fannie Mae Selling Guide Announcement SEL-2017-02 – Dated February 28, 2017-Effective Immediately)
|Fannie Mae-DU Validation Service – New FAQ’s & Approved Vendor List - Validation Service FAQ (Updated 2-14-2017) | Property Inspection Waiver FAQs (Updated 2-18-2017) | Updated List of Approved Report Vendors for Day 1 Certainty (Dated 3-3-2017)
Fannie Mae continues to update and add to their frequently asked questions for Day1 Certainty and Property Inspection Waivers. Stay in the know by reading this article about the new and updated FAQs that our expert took the time to pull out of the ever-growing list of questions. (Fannie Mae-DU Validation Service – Frequently Asked Questions – Updated February 14, 2017; Property Inspection Waiver FAQs – Updated February 28, 2017 and Fannie Mae Updates List of Approved Report Vendors for Day 1 Certainty – Dated March 3, 2017 )
|Fannie Mae-DO/DU Release Notes – Income & Employment Messages Updated - DU Version 10.0 – Dated February 21, 2017 - Scheduled to release March 25-2017
Fannie Mae continues to release update after update on improvements to DU Version 10.0 and this month is no exception. In this month’s update, they make improvements that you must know about for Income and employment messages and income calculation. Stay current on these updates, and you will keep up with your market competition. (Fannie Mae-DO/DU Release Notes – Income & Employment Messages Updated - DU Version 10.0 – Dated February 21, 2017 - Scheduled to release March 25-2017)
|Fannie Mae SEL-2017-01 – Dated 1/31/17 • Comparables in New Projects or Subdivisions
• Property Inspections by Appraiser Trainees
• Adjustments to an Appraisal for Sales Concessions: • Selling Guide Update regarding Site Condos – Effective 4-1-17
Fannie Mae New Construction February 2017|
This is a big update from Fannie on appraisal comps and adjustments. They continue to fine tune their requirements, and this update talks about the use of appraisal comps for new projects or subdivisions, acceptance of appraisals from “Appraiser Trainees” and Sales Concessions adjustments. Important updates that you will not want to miss. (Fannie Mae Selling Guide Announcement SEL-2017-01 – Dated January 31, 2017-Effective Immediately-General Information on Project Standards-Effective on loans delivered on or after April 1, 2017.)
|Fannie Mae - Updated FAQs and Vendor Lists – Feb. 2017 • DU Validation Service – Frequently Asked Questions • Certainty on Appraised Value FAQs • Fannie Mae Issues List of Approved Report Vendors for Day 1 Certainty
Fannie Mae has updated their FAQ on a number of topics that are important to income, employment and asset validation. A few new questions and answers. A few more that have been “clarified”. Subscribers will also find a list of all approved vendors as of 1/27/17. Read this article to ensure that you are up to date on the latest requirements. (Fannie Mae-DU Validation Service – Frequently Asked Questions – Updated January 24, 2017; Certainty on Appraised Value FAQs – Updated January 31, 2017; and Fannie Mae Issues List of Approved Report Vendors for Day 1 Certainty – Dated January 30, 2017)
|Fannie Mae-DO/DU Release Notes DU Version 10.0 - New Release scheduled for the weekend of February 25, 2017
Fannie Mae DU is making some important updates regarding Income, Employment and Asset Message updates. These will help you in validating income – which is why you should read through this update. (Fannie Mae-Desktop Originator/Desktop Underwriter Release Notes DU Version 10.0 – Dated January 31-2017-New Release scheduled for the weekend of February 25, 2017)
|Fannie Mae-Collateral Underwriter Version 4.1 Release Notes (Effective March 25, 2017)
Fannie Mae continues to update and enhance collateral underwriter to assist lenders by making the appraisal process easier. If you are presently utilizing Day 1 Certainty or even considering the use of this program, you will want to read through these updates. (Fannie Mae-Collateral Underwriter Version 4.1 Release Notes – Dated January 31, 2017-Effective March 25, 2017)
|Fannie Mae-DU Validation Service – Quality Control Considerations-Job Aid (Dated December 2016)
Underwriters and Managers, this is an important QC update from Fannie, which will assist you with re-verification procedures outlined in the selling guide for validated components. With the Day 1 Certainty program, you can really streamline your operation and become more efficient. Read this article to find out how this new Job Aid helps in the validation process. (Fannie Mae-DU Validation Service – Quality Control Considerations-Job Aid – Dated December 2016)
|Fannie Mae-Project Insurance Requirements – FAQ – Updated January 2017 [Mortgage Talking Points™, Fannie Condo Project Approval Rules - Updated 11-10-2016]
Fannie MaeProject Insurance Requirements January 2017|
Refinances are drying up, so many savvy loan officers are seeking information on other types of programs that can help their business grow. Fannie Mae released a great resource with this update for those of you who want to work with condominiums. Condominiums are a favored choice of urban Millennials, so you will want to understand Fannie’s condominium policies by reading this article. (Fannie Mae – Project Insurance Requirements – FAQ – Updated January 2017)
|Fannie-DU Validation Service – Frequently Asked Questions (Updated December 13, 2016)
Fannie Mae is trying hard to educate lenders on their program offerings. In this release, they offer an unprecedented 55 FAQs! We have picked out the new and updated questions to give you the information you need now, so be sure to keep your business updated and competitive by reading through this article. ()Fannie Mae-DU Validation Service – Frequently Asked Questions – Updated December 13, 2016
|Fannie Mae “Certainty on Appraised Value” FAQ – Dated December 10, 2016
Fannie Mae continues to release FAQ documents on the new Day1 Certainty program. This article will update you on the appraisal requirements needed to exercise the freedom from reps and warranties. Anyone that works with Fannie Mae needs to read this FAQ update as you will likely be pleasantly surprised by the percent of appraisals that actually receive a qualifying score. (Fannie Mae Certainty on Appraised Value FAQ – Dated December 10, 2016)
|Fannie - DU for Government Loans Release Notes – Loan Limits dated December 20, 2016 – New Release scheduled for the weekend of January 21, 2017
Although loan limits have increased as of January 1, 2017, DU will not update until the weekend of January 21, 2017. Read this important update to understand how to handle your DU approvals and submissions in the interim. (DU for Government Loans Release Notes – dated December 20, 2016 – New Release scheduled for the weekend of January 21, 2017)
|Fannie Collateral Underwriter 4.0 Release Notes Updated November 29, 2016
As part of the big release for DU this weekend, on December 10, 2016, CU is also being updated. All underwriters and managers should pay close attention to this update so that you understand the changes and the other nuances you will need to know. (FNMA Collateral Underwriter Version 4.0 Release Notes – Updated November 29, 2016 )
|Fannie DO/DU - Updated Release Notes DU Version 10.0 (Effective December 10, 2016)
This weekend DU has a MASSIVE update. There are many items being added and changed, so read this latest update on what has changed from last month’s announcement. (FNMA Desktop Originator/Desktop Underwriter Release Notes DU Version 10.0 – New Release scheduled for the weekend of December 10, 2016 – Dated November 28, 2016)
|Fannie ENHANCED Property Inspection Waiver FAQ & Fact Sheet – Dated November 28, 2016
More updates have been announced at Fannie Mae regarding the Property Inspection Waiver that goes into effect with the December 10, 2016 DU release. They have updated their FAQs and issued a new fact sheet. Read the recap of some of the more important answers. (ENHANCED Property Inspection Waiver – Frequently Asked Questions – Dated November 28, 2016 and ENHANCED Property Inspection Waiver Fact Sheet – Dated November 28, 2016)
|Fannie Mae - DU Validation Service; DU Validation FAQ Document; Fannie Mae DU Validation Checklist (Effective 12-10-2016)
Fannie Mae Validation Service November 2016|
New validation processes released by Fannie Mae this month reveal the secret behind one huge lender’s ability to press a button and get a mortgage. Now that the process has been tested, your company can likely take advantage of this new process too! This is one of the most powerful changes to simplify the origination processes that we have ever seen, and the positive consequences are immeasurable. (Fannie Mae Fact Sheet for DU Validation Service; Fannie Mae DU Validation FAQ Document; and Fannie Mae DU Validation Checklist – all dated October 24, 2016)
|Fannie - Collateral Underwriter Version 4.0 Release Notes & Collateral Underwriter FAQs – October 2016
As Fannie Mae continues to refine the Collateral Underwriter (CU) platform, they have released important updates including a FAQ and Release Notes for the update to be released December 10, 2016. This is very interesting and important information to find out how Fannie’s CU is reshaping the appraisal environment. (Collateral Underwriter Version 4.0 Release Notes – October 18, 2016 and Collateral Underwriter FAQs – Updated October 2016)
|Fannie Mae Selling Guide Announcement SEL-2016-09 (Dated October 24, 2016) [Updated Chart - 97% Fannie/Freddie Comparison Chart (updated and effective 12-10-2016)]
Fannie Mae HomeReady November 2016|
This selling guide announcement is filled to the brim with updates that will increase your competitive advantage and help you increase your conventional loan business in 2017. Read about these awesome updates. DU Validation Service Property Inspection Waivers (PIW) HomeReady® Enhancements Site Condo changes Garnishments Co-Borrower Self-Employment Income Evaluation changes Extension of DU Refi Plus and Refi Plus to September 30, 2017 (application dates) (Fannie Mae Selling Guide Announcement SEL-2016-09 – Dated October 24, 2016)
|Fannie - ENHANCED Property Inspection Waiver – FAQ & Fact Sheet (Effective 12-10-2016)
Fannie Mae Conventional Loan Program November 2016|
Fannie Mae is continuing to build its database of property information. As they do, this could mean great news for you and your borrowers. Effective December 10, 2016 DU will contain an update that may save you and your borrower’s time and money on their refinance transaction. Be sure to read this update to stay one step ahead of your competition. (ENHANCED Property Inspection Waiver – Frequently Asked Questions – Dated October 24, 2016 and ENHANCED Property Inspection Waiver Fact Sheet – Dated October 24, 2016)
|Fannie – Condo Project Insurance Requirements; FAQs for Project Standards Requirements; Fannie Mae Ineligible Project Characteristics for Condos; Fannie Mae Condo Project Review and Insurance Requirements – Updated September 29, 2016 [UPDATED Mortgage Talking Points™, Fannie Condo Project Approval Rules - Updated 11-10-2016] AND [Mortgage Talking Points™, Fannie Prohibited Condo Projects]
Fannie Mae has issued four guidance documents for Condominium financing. Condominium financing can be a little tricky so you want to stay up to date and add these to your reference materials. Share the Mortgage Talking Points™ info with your real estate agents so they have a heads-up when listing a condo for sale. (FNMA-FAQs for Project Insurance Requirements; FAQs for Project Standards Requirements; Fact Sheet: Fannie Mae Ineligible Project Characteristics for Condos; At a Glance: Fannie Mae Condo Project Review and Insurance Requirements – All Dated September 29, 2016)
|Fannie Mae FAQs 97% LTV Options for Purchases and Limited Cash-Out Refinances of Fannie Mae Loan (Effective 9-9-2016) [Updated Mortgage Talking Points™, Fannie HomeReady® Mortgage Guidelines]
Fannie Mae FAQs 97 LTV Options for Purchases and Limited CashOut Refinances of Fannie Mae Loans Effective 992016 October 2016|
Fannie Mae continues to release more information on their higher LTV program, HomeReady®. This article is packed with lots of resource tools to help you tap into this very lucrative market, so make sure you make this article a priority. I’m sensing great marketing material if you choose to use it to expand your business! (Fannie Mae FAQs 97% LTV Options for Purchases and Limited Cash-Out Refinances of Fannie Mae Loans-Dated September 2016)
|Fannie Mae - DO/DU – Test Credit Reports & Test Social Security Number Procedures – 9/26/2016
Fannie Mae just released a great training tool that allows you to use DU to test credit scenarios. Take the time to read through the instructions in this article, and use the test cases to increase your understanding of different credit scenarios & error messages. (Fannie Mae-Desktop Originator/Desktop Underwriter Test Credit Report Procedures-September 26, 2016)
|Fannie Mae – DU Red Flag Messages – Dated August 19, 2016
Isn’t it frustrating when you get Red Flags from DU and you are not sure why? With this release, Fannie Mae works to clear up some of those issues in a matrix designed to help you get to the bottom of the issue. Most of the Red Flags are centered on property valuation for various loan purposes. Read the article and print the matrix as a reference. Fannie Mae - Desktop Underwriter Potential Red Flag Messages – Dated August 19, 2016
|Fannie Mae – Collateral Underwriter™ Redesigned Appraisal Risk Assessment Pages – Dated August 30, 2016
Collateral Underwriting® (CU)™ continues to make more advancements in the ease of use and design. This update keeps you “in the know” on the upgrades being made to a system that will likely reshape how we do appraisals in the future. (Fannie Mae – CU Redesign – Making CU Even Easier to Use – Dated August 30, 2016)
|Fannie Mae Selling Guide Announcement SEL-2016-07 – Effective Immediately for Liability Requirements and Non-Traditional Credit – Effective September 24, 2016
Fannie Mae Liability Requirements and NonTraditional Credit September 2016|
Fannie Mae is updating their non-traditional credit guidelines. If you’ve had clients who were unable to qualify in the past because of this issue, you will definitely want to check out this article! Also included in this important update are details on PUD and Condo Liability Insurance. (Fannie Mae Selling Guide Announcement SEL-2016-07 – Dated August 30, 2016 – Effective Immediately for Liability Requirements and Effective September 24, 2016 for Non-Traditional Credit Updates.)
|Fannie Desktop Originator/Desktop Underwriter Release Notes DU Version – New Release Date - September 24, 2016
Fannie Mae and Trending Credit September 2016|
DU Version 10.0 was originally delayed due to Trended Credit. Now, You only have two weeks to review these changes! There are many important updates, FAQs, and Fact Sheets highlighted in this article to guide you through this massive update. 1) Enhanced Credit Risk Assessment Including Use of Trended Credit Data 2) Underwriting for Borrowers with No Traditional Credit 3) Underwriting for Borrowers with Multiple Financed Properties. Anyone who originates and underwrites with Fannie Mae loans will want to pay careful attention to this article. (Desktop Originator/Desktop Underwriter Release Notes DU Version 10.0 February 23, 2016 Last Updated June 20, 2016 - New Release - Effective September 24, 2016)
|Fannie Mae HomeReady® Enhancements - SEL-2016-06 (Effective 7-26-2016)
Fannie Mae HomeReady Enhancements August 2016|
More updates to the Fannie Mae HomeReady® program are in this article! This is a powerhouse program for marketing and educational opportunities to your referral sources. Be sure to read about the new updates, to keep yourself and those referral sources up to date with this month’s changes. (Fannie Mae Selling Guide Announcement SEL-2016-06 – Dated July 26, 2016-Effective Immediately)
|Fannie Mae- HomeReady® Lender Documents Updated -SEL-2016-06-Dated July 26-2016 (Effective Immediately) [Download Updated Chart - 97% Financing Options Comparison Chart - Effective 7-26-2016] AND [Download Mortgage Talking Points™, Fannie HomeReady® Mortgage Guidelines - Updated 7-16-2016]
Fannie Mae HomeReady Lender Documents Updated August 2016|
Fannie Mae has updated its selling guide with a lot of new documents to help you implement the HomeReady® Program! Attached in this article are a lot of great reference tools to help you get more buyers in the door. (Fannie Mae-Selling Guide Announcement-SEL-2016-06-Dated July 26-2016-Effective Immediately)
|Fannie Mae Selling Guide Announcement SEL-2016-05 – Dated June 28, 2016 [Download Updated Chart - 97% Financing Options Comparison Chart (effective 7-16-2016)] AND [Download Updated Mortgage Talking PointsTM flyer, Fannie HomeReady® Mortgage Guidelines (effective 7-16-2016)]
Fannie Mae has changed the eligible income requirements for their HomeReady program July 2016|
There are a lot of important updates in this article, if you use Fannie Mae products. Changes to the HomeReady™ Income Limits are making it easier to qualify - Effective 7-16-15. Some guideline changes regarding Self Employed buyers are included - Effective 10-1-16. Also, if you work with Condos you’ll want to read about the updated rules on the master policy. This update is worthy of a branch meeting! Throw away your old Mortgage Talking Points™ and comparison chart regarding the Home Ready™ program, and use the new ones provided. (Fannie Mae Selling Guide Announcement SEL-2016-05 – Dated June 28, 2016 - Updated HomeReady® MTP & Chart - Effective July 16, 2016)
|Fannie Mae – Student Loan Repayment Changes; Modifications to Single Close Construction Loans, Condo FAQ, Lender Self-Reporting Compliance – SEL-2016-04 [Download Updated Chart - Student Loan Chart/Checklist- FHA/VA/USDA/Conventional Comparison (updated 6-10-2016)]
Trending Credit Methods Fannie Mae June 2016|
Fannie Mae is getting ready for the big release of DU Version 10 on June 25, 2016. There are many important updates that you will need to know about, so that you don’t have any surprises in processing or underwriting. Be sure to read through this update and the articles that we have previously written, which are attached for your reference. (Fannie Mae Selling Guide Announcement SEL-2016-04 – Dated May 31, 2016)
|Fannie Mae Updates HomeReady® Lender Fact Sheet; Product Matrix and an FAQ Document (Dated May 24, 2016 and June 2, 2016) [Download Mortgage Talking PointsTM flyer, HomeReady™ Mortgages Using Fannie Mae Financing]
Myths about Fannie Maes HomeReady Program June 2016|
The ease with which a broker, lender, or individual originator can determine if a borrower qualifies for this product has been handed to us on a silver platter. As the HomeReady® program continues to thrive and become more popular, Fannie Mae is putting out more guidance on this program. This article is chock full of information and fact sheets that you will not want to miss, along with reference sheets that you will find handy as your clients and referral sources inquire about the program. (Fannie Mae Updates Lender Fact Sheet; Product Matrix and an FAQ Document – Dated May 24, 2016 and June 2, 2016)
|Fannie Homeownership Education and Counseling – FAQ and How It Affects HomeReady® Loans (Dated May 27, 2016)
Fannie Homeownership Education and Counseling June 2016|
The Fannie Mae HomeReady® program can be a real competitive advantage, especially if you are working with first-time homebuyers! This newly released FAQ provides some great questions and answers that help you understand the process. (FNMA Homeownership Education and Counseling – FAQ – Dated May 27, 2016 )
|Fannie Mae FAQ’s for Underwriting Questions – Updated June 1, 2016
Fannie Mae is answering their most frequently asked questions this month in FAQ format. Considering Fannie has not done this since 2015, this article is important to read to keep you up to date! (Fannie Mae FAQ’s for Underwriting Questions – Updated June 1, 2016 )
|Fannie Mae FAQ Document for DU Version 10.0 (Effective 6-25-2016)
Fannie Mae Trended Credit May 2016|
New terminology to learn in this article! Is your borrower “a transactor” or “a revolver,” and which borrower is a bigger credit risk according to Fannie Mae? There are 25 questions on this FAQ document – 14 of these questions are dedicated to Trended Credit Data. The best way to find out about “trending” credit reporting is to read this article and the Fannie Mae FAQs. (Fannie Mae FAQ Document for DU Version 10.0 – Dated April 26, 2016)
|Fannie Mae Collateral Underwriter Version 3.2 (Effective 5-21-2016)
The agencies are making the appraisal process more and more automated through Collateral Underwriter. Understanding how this is going to affect your client’s appraisal now and in the future is paramount to your success. It may limit your ability to transfer appraisals and may restrict your autonomy on choosing where to send your loan if you receive an unfavorable response on your first submission, especially if you have already delivered the appraisal to the lender. Keep up to date with Collateral Underwriter by reading this update! (Fannie Mae Collateral Underwriter Version 3.2 Release Notes – Updated April 11, 2016)
|Fannie Mae: HomeStyle™ Renovation Energy Efficient Loans, Financing Multiple Properties, Co-ops, Flood Insurance for Condo Projects, Misc. Updates. Announcement SEL-2016-03 (Dated March 29, 2016) [Download Mortgage Talking Points™ flyers, Fannie - Using HomeStyle™ Energy Loans to Sell More Homes] and [Comparison Chart, HomeStyle™ Renovation vs. HomeStyle™ Energy]
Fannie Mae HomeStyle Energy Mortgages April 2016|
There are many important updates in this announcement, especially if you are interested in Fannie Mae Energy or Renovation products as they have been updated and re-branded. Financing Multiple Properties: If your business includes multiple properties or Co-ops you’ll want to pay close attention to those updates. And if you are in the State of Texas, be sure to read this update for important changes to loans in your State. (Fannie Mae Selling Guide Announcement SEL-2016-03 – Dated March 29, 2016)
|Fannie Mae Announces Free Online Marketing Center – April 2016
Fannie Mae has created a free online marketing resource center for lenders, originators and other housing professionals. There are many types of materials available, like FAQ documents for 97% Financing Options and for HARP refinances, and even Down Payment Assistance. The materials also include options to send out letters, statement inserts, flyers, fact sheets and much more. They are available in both English and Spanish. (Fannie Mae Announces their New Free Online Marketing Center – April 2016)
|Fannie Mae Rental Income Worksheets. Continuity of Obligation. Misc. Updates. SEL-2016-02 [Download 2 Updated Charts - Fannie Mae Provides Four New Fillable Rental Income Forms AND Fannie Mae & Freddie Mac Refinances Seasoning, Continuity of Obligation, Listing]
Fannie Mae Continuity of Obligation March 2016|
Finally, we have an income sheet that computes the income on rental properties directly from Fannie Mae, should you need to defend how you calculated the income. Continuity of Obligation has been eliminated. Updated definition of “Relocation Loans.” (Fannie Mae Selling Guide Announcement SEL-2016-02 – Dated February 23, 2016)
|Fannie Eligibility LTV, CTLV & HCLTV Ratio Matrix Updated - February 23, 2016
New reference material is attached to this article that you will want to keep in an easily accessible spot. Fannie Mae’s eligibility matrix is a quick way to keep up to date on the “latest” requirements. I suggest saving this to your desktop for easy and quick reference, or even printing it out and taking it with you on sales calls. (Eligibility Matrix Updated – Dated February 23, 2016)
|Fannie Four FAQ’s Updated – Dated February 2016 [Lender Responsibilities Related to Environmental Hazards; Appraisal and Property Related FAQ; TILA-RESPA Disclosure FAQ; Homeownership Education and Housing Counseling]
Four FAQs Updated from Fannie Mae March 2016|
If there is a question that is frequently asked by other lenders, you’ll probably want to know about it! Fannie Mae released 4 new FAQs on various topics that address issues on TRID, Homeownership Education and Counseling, Environmental Hazards and Appraisals. Importance stuff if you want to be up to date or are seeking clarification. (Multiple FAQ’s Updated– Dated February 2016)
|Desktop Originator/Desktop Underwriter Release Notes DU Version 10.0 [Effective June 25, 2016 – Dated February 23, 2016]
Fannie Mae Trended Credit Data March 2016|
This announcement is a business-changer from many perspectives. If you only have time to read one article, this is the one! Fannie Mae changes for underwriting loans in DU as it relates to a new credit scoring methodology known as “Trending Credit,” along with increased scrutiny of your self-employed buyers and non-traditional credit buyers, will really rock your business. You are going to want to heavily review your pipeline before any of these changes take place to avoid a lot of drama come June 25th. Be sure to check out the FHA/VA version article on this subject, which is linked below and contained in this issue. (Desktop Originator/Desktop Underwriter Release Notes DU Version 10.0 – New Release Scheduled for the weekend of June 25, 2016 – Dated February 23, 2016)
|Fannie Issues Six Multiple FAQ’s and Fact Sheets Updated– Dated January and February 2016
Frequently Asked Questions and Fact sheets are periodically published by Fannie Mae. There were no guideline changes in these, but it’s nice to keep on hand the most recent reference. The FAQ’s or Fact Sheets that have been updated are: Uniform Collateral Data Portal FAQ’s (Updated February 7, 2016) Homeownership Education and Housing Counseling (Updated January 15, 2016) Property Inspection Waiver (PIW) (Updated January 7, 2016) Project Insurance Requirements (Updated January 11, 2016) HomeReady Mortgage FAQ’s (Updated January 15, 2016) Community Seconds Fact Sheet (Updated January 2016) (FNMA Multiple FAQ’s and Fact Sheets Updated– Dated January and February 2016 )
|Fannie Mae HomeReady® Fact Sheet/Interactive Map for Income Eligibility [Download Mortgage Talking PointsTM flyer, HomeReady™ Mortgages Using Fannie Mae Financing]
HomeReady Eligibility Map January 2016|
HomeReady® is going to be a game changer for Millennial and First Time Homebuyers. Fannie Mae has created an interactive map to determine if the property is eligible. You can click around on the map in various areas and it will give you the AMI information for that particular property. If you hover over the little house icon on the map it will tell you the address of that property, which is pretty cool. (Fannie Mae HomeReady Fact Sheet for Income Eligibility – Dated December 18, 2015)
|Fannie Collateral Underwriter Version 3.1 Release Notes (Effective December 12, 2015)
Fannie Mae continues their efforts to update CU as their database of individual property metrics. This is an important update because you will likely see more messages from CU as the information on appraisals continues to build year over year. The UCDP data collection and CU System is eventually going to capture every property sold to the agencies, and the data inconsistencies are going to be flagged, which will impact everyone in the industry. (Collateral Underwriter Version 3.1 Release Notes – Updated December 12, 2015)
|Fannie Mae Top Trending Questions – Updated December 2015
Fannie Mae has updated their Top Trending Questions December 2015|
There are always so many questions that a loan originator or processor faces each day. With guidelines constantly changing, it’s hard to keep up at times. Fannie publishes a Top Trending, Frequently Asked Questions list periodically, and this tool is extremely helpful. In this issue there are a lot of tidbits of information that you can share with your referral partners to get more business, close more deals and make conversations with your underwriting staff much easier. (Fannie Mae Top Trending Questions – Updated December 2015 )
|Quick Tips to Manage Collateral Underwriter Findings – Dated October 2015
With the electronic acquisition of data, systems are becoming more sophisticated in detecting errors or fraud. This is becoming more and more evident with appraisals as well. All appraisals are uploaded to UCDP. This information is archived, and any subsequent appraisals that come in are compared to the baseline data on all appraisals for that property. As you can imagine, this is causing some issues for lenders, so it’s important to know what to look out for! (Quick Tips to Manage Collateral Underwriter Findings – Dated October 2015)
|Fannie Mae New FAQ’s for Underwriting Questions – Updated October 2015
Fannie Mae has updated their FAQs document with the most frequently asked questions by underwriters. Sometimes we all get stumped by what is the “latest” interpretation, and documents like this help keep us all up to date. Many times a quick read of the latest information will give you an edge over your competition, add credibility about your services to a referral partner, or help you justify an approval to an underwriter. (Fannie Mae FAQ’s for Underwriting Questions – Updated October 2015 )
|Fannie Mae Condos, Co-Ops, Second Home Income, Updates - SEL-2015-12 – Dated November 03, 2015
Fannie made some important updates to Coops Condos and Second Home qualifications November 2015|
If you are in the business of working with Co-ops, then you want to pay attention to the numerous changes Fannie is making in this update. For those of you that work with condos, there are some important updates regarding the eligibility of condos that will come in handy if you are trying to stimulate the first time home-buyer market, as these are popular dwellings for those just getting started. Fannie is also updating some second-home income requirements that left out many borrowers and it will now allow them to refinance a property even if rental income is reported. (Fannie Mae Selling Guide Announcement SEL-2015-12 – Dated November 03, 2015)
|Fannie Mae Announces Improved Affordable Lending Product-HomeReady™ (Effective 12-12-2015) [Download Mortgage Talking PointsTM flyer, HomeReady™ Mortgages Using Fannie Mae Financing]
Fannie Mae HomeReady November 2015|
Fannie Mae is jumping back into affordable lending, and with these new guidelines you’re going to be able to ramp up your production! HomeReady™ is replacing the outdated MyCommunity. The features that have been added make this a great product for buyers just getting started. Of interest is Fannie’s new take on “boarder income” and being able to detect if a buyer qualifies for this program from DU 9.3. What a great product to stimulate millennial buyers. Use the fantastic tools we have developed for you to get the word out on this product! (Fannie Mae Announces Improved Affordable Lending Product-HomeReady®-Dated-August 25-2015)
|Fannie Mae – High Balance Loans, Non-occupant qualifying, Homeownership Education, Home Ready™ Program - Announcement SEL-2015-10 – Various Effective Dates [Download Fannie/Freddie Comparison Chart - Non-Owner Occupant Co-Borrower Underwriting Rules]
Fannie Mae NonOccupant Borrower Income October 2015|
We are delivering this news to you on a silver platter. With the addition of being able to add non-occupant borrower income for qualification and an increased 5% in LTV guidelines for High-balance loans, you should be able to get more borrowers qualified. This announcement is also full of updates for High Balance loans, and the easing of non-occupant and updates on homeownership education. The November issue will explain in greater detail on the HomeReady™ product info. (Fannie Mae Selling Guide Announcement SEL-2015-10 – Dated September 29, 2015)
|Fannie - Homeownership Education and Counseling – FAQ (dated September 29, 2015)
For those of you who are going to participate in programs that require Homeownership Education and Homeownership Counseling, this FAQ will clear up the mystery of the difference between phasing out My Community Mortgage and moving over to the Home Ready™ program. This FAQ will also guide you through many of the questions that you will need to be able to answer to participate in this program. (Homeownership Education and Counseling – FAQ – Dated September 29, 2015)
|Fannie Release Notes DU Version 9.3 – Home Ready™,, Non-occupant borrowers, High-Balance Mortgages, Turning Primary Homes Into Rental, Updated DU/DO Messages – Scheduled for 12-12-15 [Download Mortgage Talking PointsTM flyer, What are the Fannie Rules when a Client Buys a Home & Current Home is Not Sold or Not Going to be Sold?] AND [Download Fannie/Freddie Comparison Chart - Non-Owner Occupant Co-Borrower Underwriting Rules]
Get ready, because here it comes! DU is being updated to accommodate the new HomeReady™ product, which is replacing the MyCommunity™ Mortgage effective December. As discussed in previous issues, this program will greatly increase the eligibility of low- to moderate-income buyers. To do this Fannie will retire DU Version 9.1 and replace it with DU Version 9.3. (Desktop Originator/Desktop Underwriter Release Notes DU Version 9.3 – New Release Scheduled for December 12, 2015 – Dated September 29, 2015)
|Fannie Mae Updates Multiple Selling Guide Topics – SEL 2015-09 (Effective 2-1-2016) [Download Chart/Checklist, Cash Flow Analysis - Form 1084 (with detailed explanations) - Effective 2-1-2016]
Self-employed borrowers can be a little tough to navigate. With this latest release, Fannie addresses some detailed issues on this income that should assist your borrowers. The alternative income requirements for self-employed borrowers are not necessarily easy, but still provide another option for a borrower who does not have a history of receiving income distributions from their business. You can start using the updated Cash Flow Analysis – Form 1084 (with detailed explanations) now but it’s mandatory at of 2-1-16. You’ll also find a myriad of other updates regarding increased leniency on PUD reviews, removal of lender recourse on HomeStyle loans and other updates that apply to your business. (Fannie Mae Selling Guide Announcement SEL-2015-09 – Dated August 25, 2015)
|Fannie Mae Announces Improved Affordable Lending Product – HomeReady™ Mortgage!
Fannie Mae HomeReady September 2015|
Fannie Mae is replacing their MyCommunity program with HomeReady™ sometime later this year, and is prepping the industry for these changes in this update. An interesting change is the allowable income from non-borrowing household members as well as other changes that will greatly affect how we qualify clients. (Fannie Mae Announces Improved Affordable Lending Product – Dated August 25, 2015)
|Fannie Collateral Underwriter Version 3.0 Release Notes – Updated September 1, 2015 (Effective September 26, 2015)
Life has gotten a little easier for Fannie appraisals with their new enhancements for CU. You’ll now receive messages on any issues that could pop up as problematic, allowing you to get in front of the problems and resolve them faster! This update adds Message ID’s numbers with the message text explaining the problem. (Collateral Underwriter Version 3.0 Release Notes – Updated September 1, 2015 – Effective September 26, 2015)
|Fannie Mae Project Standards Requirements – FAQ (Effective 8-5-2015) [Updated Mortgage Talking Points™ flyer, Fannie Changes Condo Project Approval Rules - Effective 8-5-2015] AND [Updated Chart, Condo Eligibility Comparison Chart - Fannie/Freddie/FHA/VA/USDA]
Fannie Condo Project Approval Rules August 2015|
Condo financing is back with changes by both Fannie and Freddie! In this update, Fannie provides deep detail on project requirements through a new FAQ document that will give you a leg up on the competition. Changes such as a reduction in the pre-sale requirements, HOA fee timelines and mixed-use updates will give you a strong understanding of how to increase your business in this market segment. (Fannie Mae Project Standards Requirements – FAQ – Update July 2015 )
|Fannie Mae Desktop Originator/Desktop Underwriter Release Notes DU Version 9.2 A, Updated Again – July 28, 2015 [Updated Mortgage Talking Points™ flyer, Fannie Acceptable Sources of Cash Reserves When Purchasing or Refinancing a Primary Residence – Effective 8-15-15 ]
DU is updating to reflect quite a few new changes. These updates are of importance to those who work with low-to-moderate income buyers or wish to expand into that market. Fannie is offering these programs in conjunction with their 97% programs to expand affordable housing options. (Fannie Mae Desktop Originator/Desktop Underwriter Release Notes DU Version 9.2 August Update – Updated Again – Updated July 28, 2015)
|Fannie Mae Selling Guide Announcement SEL-2015-08 – Dated July 28, 2015
Fannie Mae Condo Review Guidelines August 2015|
As condo projects become an option to the Millennials who are seeking smaller property sizes, it’s important to stay up to date on the changes Fannie is making to their project reviews. It seems like their limited review guidelines are loosening a bit. Also, this announcement offers important updates for condos, solar panels and affordable loan products which will assist you in expanding your marketplace. (Fannie Mae Selling Guide Announcement SEL-2015-08 – Dated July 28, 2015)
|Fannie Fact Sheet – Obtaining IRS Transcripts – Dated July 28, 2015
The IRS is having big fraud problems, and as a result, getting borrower transcripts has been problematic for lenders, to say the least. Combine that issue with IRS capacity issues and the problem gets even bigger as delays in the mortgage process increase. Fannie has now issued its fact sheet regarding their rules on this subject, and the “real” guidelines for the 4506T vs. the interpretations or overlays many lenders are exercising. (FNMA Fact Sheet – Obtaining IRS Transcripts – Fannie Mae Policy – Dated July 28, 2015)
|Fannie Mae Selling Guide Announcement SEL-2015-07 (Effective 6-30-2015)
Fannie Mae Big News and Score One for the MoveUp Buyers July 2015|
Big changes are happening with some of Fannie Mae’s long-held underwriting standards, and this update contains the ones that you need to know. Of particular interest are the changes regarding the Conversion of a Principal Residence to a rental, which no longer requires the 30% equity position! Additionally there is relief on unreimbursed business expenses, assets, tip income and other great updates that will expand your buyer pool. We have updated the Mortgage Talking Points ™ to reflect these new rules. (Fannie Mae Selling Guide Announcement SEL-2015-07 – Dated June 30, 2015)
|Fannie Desktop Originator/Desktop Underwriter Release Notes DU Version 9.2 August Update (Effective 8-15-15)
Fannie Mae is updating DU to align with the new guidelines. As of August 15, 2015 you should start to see your Feedback forms from DU begin to align with their new requirements. Many of these updates include enhancements to Affordable LTV and Average Median Income. However, there are also important updates to asset verification and not requiring equity in an exit property that is due to be rented. (FNMA Desktop Originator/Desktop Underwriter Release Notes DU Version 9.2 August Update – Dated June 19, 2015)
|Fannie Borrower Income Verification Policies – FAQ’s (dated June 2015)
Fannie Mae continues to update their income verification policies, and this month is no exception with additional FAQs. Of note in this article is the reasoning behind Fannie Mae requirements as they relate to specific IRS forms including the 4506-T. There is an update to how 2106 expenses are handled as well, which is great news! (FNMA Borrower Income Verification Policies – FAQ’s – Dated June 2015)
|Fannie Mae Announces that Desktop Underwriter and Desktop Originator is now free of Charge – Dated June 23, 2015
Although a bit behind Freddie, it looks like Fannie is not backing down from gaining a competitive edge by announcing that DU and DO are now free to use. Effective June 23, 2015 you will no longer be charged for using this service! Just a reminder that Freddie offered free LP back on June 1, 2015. (Fannie Mae Announces that Desktop Underwriter / Desktop Originator is now free of Charge – Dated June 23, 2015)
|Fannie -Eligibility Matrix Updated – Dated June 30, 2015
The updated Fannie eligibility matrix has just been released and is without a doubt one of the handiest tools you can keep in your arsenal. Rather than scour through web page after web page, they have included a quick 9-page matrix to make sure you can get to eligibility information quickly! (FNMA-Eligibility Matrix Updated – Dated June 30, 2015)
|Fannie Community Land Trusts and Resale Restricted Properties (Effective 8-15-2015) [Download Mortgage Talking PointsTM flyer, Community Seconds Drive More Qualified Buyers]
Fannie is breaking out the Affordable Programs again, and this time they have updated DU to better accommodate those types of loans! In an effort to re-acclimate lenders to these great niche products, they have issued guidance on Community Land Trust, Community Seconds and Resale Restriction loans. We’ve attached several checklists and resources as part of the article, so be sure to check them out. Who knows, you may discover an untapped niche in your area! (Fannie Community Land Trusts and Resale Restrictions – Dated June 2015)
|Fannie Mae Selling Guide Announcement SEL-2015-06 – Dated May 26, 2015
With this release, Fannie Mae is making some changes that will assist a few more of your clients when applying for a mortgage loan. They are removing some restrictions on paying off revolving debt and clearing up some condominium nuances in Florida. (Fannie Mae Selling Guide Announcement SEL-2015-06 – Dated May 26, 2015)
|Fannie Mae Lender Job Aid – Flexibilities for Creditworthy Borrowers – Dated June 2015
Fannie Mae Lender Job Aid Flexibilities for Creditworthy June 2015|
Fannie Mae is striving to make credit available to creditworthy clients. This most recent Lender Job Aid provides you with the flexibilities regarding assets, credit and income as there are often many variances in these categories. Understanding that there are flexibilities is the first step in assisting the client who may not fit into the proverbial “box.” (Fannie Mae Lender Job Aid – Flexibilities for Creditworthy Borrowers – Dated June 2015)
|Fannie New Eligibility Requirements for Seller/Servicers – FAQ - 5-20-2015 (effective 12-31-2015)
Profound changes are being made to Fannie Mae sellers and servicers that may affect your present position in lending. If you work directly with Fannie Mae, they are announcing increased net worth requirements and new operational requirements. If you work as a broker or mini-correspondent, you want to pay attention to this announcement as it is likely to affect your minimum financial requirements, as the seller/servicers pass down the requirement. (New Eligibility Requirements for Fannie Mae Single-Family Seller/Servicers – Frequently Asked Questions – Dated May 20, 2015)
|Fannie Appraisal and Property-Related FAQs – Updated May 2015
As many of you know, there has been a lot of craziness around appraisals since the market crash due to undeterminable property values. Fannie Mae is working hard to help lenders align their policies to the real world originators have been facing for years. Of particular note in this update is Fannie’s view on comparables. (Appraisal and Property-Related Frequently Asked Questions (FAQs) – Updated May 2015 )
|Fannie Lender Job Aid – Second Home with Rental Income (dated April 2015) [Download Mortgage Talking PointsTM flyer, Second Homes & Rental Income - What You Need to Know]
Guidance for underwriting a refinance of a second home with reported rental income. One of the requirements for second homes is that the property may not be a “rental property.” If the borrower is refinancing a second home and reports receiving rental income from the subject property – either on Schedule E of their income tax returns or on some other documentation in the loan file – can the transaction be eligible as a second home? This FNMA update addresses this issue. Additionally, MortgageCurrentcy has created a Mortgage Talking Points for you to share with your referral base. (FNMA Lender Job Aid – Second Home with Rental Income – Dated April 2015)
|Fannie Mae News Release - Launches 3% Closing Cost offer on Fannie Mae Owned Properties (effective April 14, 2015) [Download Mortgage Talking PointsTM flyer, HomePath Ready Buyer™ Program ]
Fannie Mae and HomePath May 2015|
Fannie Mae announced the HomePath® Ready Buyer™ program, qualifying first-time homebuyers to receive up to 3% of the purchase price in closing cost assistance toward the purchase of a HomePath property, upon completion of an online homebuyer education course. MortgageCurrentcy has created a helpful Mortgage Talking Points document to help you spread the word and get more business! (FNMA News Release – Launches 3% Closing Cost offer on Fannie Mae Owned Properties – Dated April 14, 2015)
|Fannie Mae-DU Version 9.2 April Update-Frequently Asked Questions (dated April 21, 2015)
During the weekend of April 18, 2015, Fannie Mae implemented an update to Desktop Underwriter Version 9.2. There really is no riveting information here—the FAQ is mostly for underwriters. However, loan officers should read the clarification (for the 4th update) on disputed tradelines. (DU Version 9.2 April Update – Frequently Asked Questions - Dated April 21st, 2015)
|Fannie Mae Property Inspection Waivers – Frequently Asked Questions (Dated 4/20/2015)
Fannie Mae and Appraisals May 2015|
The Property Inspection Waiver (PIW) is a fieldwork recommendation that results in an offer to waive the appraisal for certain lower-risk transactions. As the program continues to gain more momentum, Fannie Mae is continuing to address those questions. We have reviewed several new ones that you’ll probably want to read about. (Property Inspection Waiver – Frequently Asked Questions – Dated 04/20/15 )
|Fannie Fact Sheet - Community Seconds [Download Mortgage Talking PointsTM flyer, Community Seconds Drive More Qualified Borrowers]
Fannie Mae Community Second Mortgage Loans May 2015|
Understanding how community seconds work can be a great niche for your business. The Community Seconds program is especially helpful in marketing to first-time homebuyers who often struggle with the down payment despite their ability to repay the mortgage debt. Be sure to check out the Mortgage Talking Point™ that we have created for this topic, to assist you in marketing this program to your referral sources. (FNMA Fact Sheet - Community Seconds - Dated March 2015)
|Fannie Mae- Collateral Underwriter User Interface Implementation Guide for Non-Seller Correspondent Lenders (Dated April 20, 2015)
For those of you who are not direct sellers to Fannie Mae, you will now have access to the CU messages in your DU findings report if you choose to implement this. Read instructions on how to get approved. (Collateral Underwriter User Interface Implementation Guide for Non-Seller Correspondent Lenders – Dated April 20th, 2015 )
|Fannie Lender Job Aid – Borrowers with Multiple Financed Properties (dated March 2015)
Assisting clients who own multiple financed properties can be a complex transaction. Fannie Mae is seeking to assist lenders in this scenario by creating a checklist and grouping all the guidelines relevant to this type of borrower into one location. We’ve attached the checklist and guidance below for easy reference.
|Fannie Mae Selling Guide SEL-2015-03 - Updated Clarifications for Disputed Trade Lines, Derogatory Credit, Disabled Borrowers & Legal Guardians.
Fannie and Disabled Borrowers and Legal Guardians April 2015|
The majority of this release does not involve new guidelines. Instead, it seeks to clarify previous guidelines on various topics. Read the new update on Disputed Tradelines--clarification of the “to” and “from” date for derogatory credit and when the credit report can be issued is a good change. (Fannie Mae Selling Guide Announcement SEL-2015-03 – Dated March 31, 2015 )
|Fannie Mae Delays Use of Self-Employed Income Form 1084
Fannie Mae is going back to the drawing table to determine if the “income” that a borrower may receive on their individual K-1’s under the “distributions” area of this form is an actual cash disbursement or if it is limited to non-cash distributions. Our suggestion is to continue with the old 1084 form. Let Fannie Mae revisit their policy on the treatment of business income on K-1’s. (Fannie Mae Selling Notice – Self-Employed Income Policy – Dated March 24, 2015 )
|Condo Project Manager Release Notes (CPM) – Version 5.0 (Effective 4-18-2015)
Fannie Mae is updating Condo Project Manager™ (CPM™) to make it easier to get projects approved. It is our belief that CPM is not used enough by lenders. This is a great tool to gain further variances on projects than what is offered by the selling guide. We suggest that you reach out to any lender you do business with to make sure they are using CPM at every available opportunity to help you streamline conditions and/or approvals on condo projects that you originate. (Condo Project Manager Release Notes – Version 5.0 – Dated March 17, 2015)
|FNMA Selling Guide Announcement SEL-2015-02 – New Condo Projects Become Standard (Effective April 1, 2015) New Pricing for Borrowers Without Credit Scores (Effective May 1, 2015)
Fannie Mae Condo Projects March 2015|
This article is just a reminder (and a few clarifications) about the “relaxed” condo project requirements that will go into effect on April 1, 2015 and the new pricing for borrowers without credit scores— effective May 1, 2015. (Fannie Mae Selling Guide Announcement SEL-2015-02 – Dated February 24, 2015)
| Fannie Mae – IRS Form 4506 – T Tips for Underwriting and Quality Control
Fannie Mae has relaxed the guidelines on when a 4506-T is needed from your client. However, this also opens up buyback risk or post-closing issues if the form is not executed for the appropriate situation. Pay attention to the finer details of when and when not to get the 4506-T from your client will prevent complications in the loan process, closing and post-closing review. (Fannie Mae – IRS Form 4506 – T Tips for Underwriting and Quality Control – Dated February 2015)
|Fannie Mae – Home Affordable Refinance (DU Refi Plus and Refi Plus) FAQ's – Charts/Checklist – HARP Solicitation Letter Examples
Fannie Mae HARP Program ends Dec 31 2015 March 2015|
Fannie Mae has issued the FAQs on the HARP program and announced the final dates for loan applications and loan purchases under this program. If you have any previous clients who may qualify, now may be the time to discuss HARP as an option for them, as the window is closing. (Fannie Mae – Home Affordable Refinance (DU Refi Plus and Refi Plus) FAQs – Updated February 3, 2015)
|Fannie Mae Collateral Underwriter (CU) FAQ’s
Fannie Mae is releasing more FAQ’s on Collateral Underwriter as lenders begin using this tool, and policies within each lender start to become clearer. Expect that the FAQ updates will continue until the market witnesses how the post-closing issues will affect individual lender practices and this “new” way of assessing home values becomes mainstream. (Collateral Underwriter (CU) FAQs – Updated February 2015)
|Fannie Mae – FAQ – Borrower Income Verification Policies – Video Class – How to Read Tax Returns and Close More Loans 2014 Version
Fannie Mae has issued a FAQ that interprets how to verify income—including self-employed, when tax returns are required, Form 4506T, how to treat auto allowance, etc. Be sure to review with you lenders and if they are going to require overlays. View video class: How to Read Tax Returns and Close More Loans 2014 version. (Fannie Mae – FAQ – Borrower Income Verification Policies – Dated February 2015)
|Fannie Mae – Desktop Originator/Desktop Underwriter Release Notes DU Version 9.2 April Update: CU and Disputed Tradelines Messages (Effective April 18, 2015)
Fannie Mae monitoring appraisal values March 2015|
Collateral Underwriting (CU) was introduced on January 26th and we wrote about this in the November 2014 issue of Mortgage Currentcy. Of importance is a dedicated area for messaging on CU, which will require the lender to be aware of specific fields that need to be filled out.. You may see some bumps and delays in the processing and underwriting. Another update: DU is being updated when a disputed tradeline occurred within the last 2 years. (Fannie Mae – Desktop Originator/Desktop Underwriter Release Notes DU Version 9.2 April Update – Dated February 17, 2015)
|Fannie Mae – Energy Improvement Feature Fact Sheet (Effective January 2015) [View Video Training Course, Creating a Niche with Energy Efficient Mortgages] AND [Download Mortgage Talking PointsTM flyer, Energy Improvement Financing with Fannie & Freddie Can Help You Sell More Homes]
Fannie Mae Energy Efficient Loan Program February 2015|
Fannie Mae has issued an update for Energy Improvement features. Since it can be used to provide sustainable funding for improvements to lower homeowner costs through energy efficiency, the EI feature can be used with most standard products for transactions that include funding for energy improvements to the financed property, up to 10 percent of the as-completed appraised value. (Fannie Mae Energy Improvement Feature – Fact Sheet – Dated January 2015)
|Fannie Mae Selling Guide Updates, SEL-2015-01 (Effective January 27, 2015) [Download Mortgage Talking PointsTM flyer, My Community Mortgage - Fannie's Best Kept Secret (updated 1-27-2015)]
There is nothing riveting here, just some simple updates, reminders and clarifications that you may or may not get value from. Focus primarily on the topics that impact your business. I would suggest really diving deep into the product options at the 97% LTV’s to see how this can increase your business and get you in front of more Realtors. (Fannie Mae Selling Guide Announcement SEL-2015-01 – Dated January 27, 2015)
|Fannie Mae – Mortgage Insurance (MI) Plan Comparison, Questions and Answers, and Examples
Fannie Mae Mortgage Insurance February 2015|
Fannie Mae has issued a MI Plan Comparison for Monthly Premium, Single Premium and Split Premium to assist lenders in determining the best MI for a consumer. The comparison explains what a lender should illustrate to clients prior to finalizing an MI plan. (Fannie Mae – Mortgage Insurance (MI) Plan Comparison, Questions and Answers, and Examples – Fact Sheet – Dated January 2015)
|Fannie Mae Appraisal Tools, Processes, and Policies Lender Letter LL-2015-02 (Effective 1-26-2015)
The purpose of this Lender Letter is to provide clarifications and additional information regarding Fannie Mae’s valuation-related tools and policy updates announced within the past 12 to 18 months. These include Collateral Underwriter™ (CU™), Appraiser Quality Monitoring (AQM), and updates to the Property Eligibility and Appraisal Requirements (Fannie Mae Lender Letter LL-2015-02 – Appraisal Tools, Processes, and Policies – Dated February 4, 2015)
|Fannie Mae Selling Guide Announcement SEL-2014-16 [Download Chart – Student Loan Repayment Rules - FHA, VA, USDA & Conventional Comparison Chart (updateD)] AND [Download Chart – Self-Employed Analysis Form 1084 (effective 4-1-2015)]
SelfEmployed Borrowers Income January 2015|
Fannie Mae has released updates to their selling guide that include important revisions for Self-Employed Income, Solar Panels, Adjustments to Comparable Sales, Flood Insurance, Cure Provisions for Points and Fees, Payment Calculation for Student Loans. Download the updated Student Loan Comparison Chart and updated Self-employed analysis form 1084. (Fannie Mae Selling Guide Announcement SEL-2014-16 – Dated December 16, 2014)
|Fannie Mae 97% LTV Options for First-Time Homebuyers FAQs, and Fannie Homebuyer Education and Counseling FAQs
Fannie Mae 97 LTV Options for FirstTime Homebuyers January 2015|
Fannie Mae is reintroducing the 97% LTV My Community Program. This product will assist lenders in offering lower down payment mortgages and allowing higher CLTV for certain residences and qualified clients. Keep in mind that a caveat of this program is for buyers to complete Pre-purchase Homebuyer Education and Counseling. This program also presents an opportunity for the lender to demonstrate diversity in their lending as it is likely to assist those buyers in underserved markets. (Homebuyer Education & Counseling – Frequently Asked Questions (Dated December 8, 2014) & 97% LTV Options for First-Time Homebuyers - Frequently Asked Questions (Dated December 8, 2014) )
|Fannie Mae Ineligible Project Characteristics for Condos AND
Fannie Mae Condo Project Review and Insurance Requirements [Download Mortgage Talking PointsTM flyer, Fannie Condo Insurance Requirements]
Fannie Mae Project Approvals January 2015|
Condominium financing can be complex without the correct resources. Fannie Mae recently published two documents, “Ineligible Project Characteristics for Condos” and “Fannie Mae Condo Project Review and Insurance Requirements,” that will assist a lender in determining which condominiums may be available for financing. Download Condo Insurance Requirements chart and give to real estate agents when listing a condo for sale. (Fannie Mae Condo Project Review & Insurance Requirements – Dated November 10, 2014 and Fannie Mae Ineligible Project Characteristics for Condos – Dated November 10, 2014)
|Fannie Mae Property Inspection Waiver FAQs AND Fannie Mae Automated Property Service FAQs
Fannie Mae Property Inspection Waiver January 2015|
Fannie Mae will allow lenders to waive the appraisal requirements on properties that receive approval in DU. This is known as a Property Inspection Waiver or PIW. If DU allows for a PIW your file will not be required to have an appraisal per Fannie Mae, saving your clients quite a bit of money. Please check with your lenders to make sure they will honor this program, and for additional overlay details that they may have.
|Fannie Mae Loan Defect Categories
Fannie Mae has identified by category, the loan defects on files they acquired after closing. In some cases, these defects can result in loan ineligibility and buyback issues. Originators can use this guide to make sure they are providing the information necessary to their processors. Processors and underwriters can use this information to ensure that common defects are cured prior to closing, saving all parties remediation time and money. (Fannie Mae - Loan Defect Categories – Dated December 17, 2014)
|Fannie Mae Re-introduces the 97% Loan Product: Announcement SEL-2014-15 (Effective December 13, 2014)
Fannie Mae Reintroduces the 97 Loan Product December 2014|
Read the 16 rule requirements. This may be a good alternative for higher FICO borrowers because with conventional MI you may be able to get a better MI cost monthly than an FHA loan. You also can solicit that with a conventional loan with MI, generally MI will eventually fall off the loan when the LTV reaches a certain point, and with FHA loans monthly MI never falls off.
|Fannie FAQ’s for Project Standards and Special Approval Designation for Established Florida Condominiums (Effective November 10, 2014 )
Fannie and Condo Projects December 2014|
One of the two FAQ’s included in this article was written at the same time Fannie released Annc. SEL 2014-13, which related to Condo Project Approval Updates. And if you lend in Florida, the second FAQ covers established “special” rules in the attempt to finance more Florida condos.
|Fannie Mae Selling Guide: Various Topics Announcement SEL-2014-13 – Various Effective Dates [Download Mortgage Talking Points™, Fannie Changes Condo Project Approval Rules – Effective April 1, 2015] AND [Updated Mortgage Talking Points™, Financing Multiple Properties - What You Should Know (updated 12-10-2014)]
Fannie Changes Condo Project Approval Rules December 2014|
Holy Cow! Condo Presale requirements from 70% to 50%! Delinquencies on HOA fees allowed on 15% of units can now be at 60 days instead of 30 days! Allowable commercial space increased from 20% to 25%! Get this information to your referral partners, to your borrowers and anyone else that will listen. Another change includes making it easier to qualify borrowers with 5-10 investment properties.
|Fannie Mae Announces Release of Collateral Underwriter (Effective January 26, 2015)
Collateral Underwriter is designed to provide a risk score of between 1 and 5 along with detailed messages to highlight specific aspects of the appraisal that may warrant further attention. It’s expected to go into effect January 26, 2015. Read the FAQ document on this new system.
|Fannie Mae Underwriter Release Notes Version 9.2 (Effective December 13, 2014)
Fannie Changing Refi Limit from 75 to 80 November 2014|
With the release of DU Version 9.2, DU Version 9.0, lenders will no longer be able to resubmit loan casefiles to DU Version 9.0; however, lenders will continue to be able to view online loan applications and DU Underwriting Findings reports that were created under DU Version 9.0. After the weekend of December 13, lenders must create a new loan casefile and submit it to DU.
|Fannie Mae Highlights Top Trending Questions [Download Chart/Checklist, Rules for Qualify for a Home Using Retirement Income - FHA/VA/USDA/Conventional ]
Fannie and IRA Distribution as Income November 2014|
There is one new answer this month regarding how to count income from IRA distributions. The Help Desk gets quite a few questions on this topic, and Fannie provides two options on how to count the income. Download the comparison chart provided that outlines what retirement verification documents are required for each type of loan.
|Fannie HomeStyle® Renovation [Updated Mortgage Talking Points™, Fannie Renovation Mortgage - Close Now, Fix It, Move In!]
Fannie HomeStyle Renovation Mortgage October 2014|
Mortgage Currentcy has a Mortgage Talking Points™ on this topic for you to share with your referral partners. This product is truly beneficial to you, to your Realtors and to your borrowers. This can set you apart from your competition and separate you from rate spikes by offering a product that works in all rate environments for both purchases and refinances.
|Fannie Appraisal and Property Related FAQ’s – Updated September 2014
Fannie Appraisal Property Related FAQs October 2014|
You’ll find a total of 46 FAQ’s with 29 new ones. We suggest that LO’s choose 10 to 12 FAQ’s that are relevant to their area of the country and set up sales meetings to discuss some of the new updates. Read this FAQ list so you can gauge when or where to push back with your lender/underwriter and challenge them with the flexibilities provided by Fannie Mae in many cases. We also suggest that LO’s choose 10 to 12 FAQ’s and set up sales meetings to discuss some of the new updates.
|Fannie Waiting Periods: What it “Was” and what it “Is Now” – The Real Story (Effective September 2014) [Download Updated Chart, Fannie vs. Freddie Waiting Periods for Derogatory Credit] AND [Updated Mortgage Talking Points™, Fannie vs. Freddie Waiting Periods for Derogatory Credit]
Fannie Waiting Periods for Derogatory Credit October 2014|
Fannie Mae continues to try and market this as a benefit to borrowers, but the underlying issue continues to be that they really removed the ability to assist a borrower that did not have an extenuating circumstance and provide a 2-year waiting period if they had a substantial down payment of 20% or more. What Fannie Mae does not address here and conveniently avoids telling you is that the changes will impact your loan even if your application date is before 8/16/2014.
|Fannie Mae Selling Guide Announcement SEL-2014-12 (9-30-14) – Rental Income Treatment, Asset Verification, Employment-related Assets, Misc. Updates. [Download Chart/Checklist, Fannie Mae Rental Income Forms Comparison Chart (effective 12-1-2014)]
The BIG updates from Fannie are the new worksheets they created with instructions and guidance contained in each form on how to figure rental income, depending on how your borrower reports it on their tax returns. They provide consistency, direction, guidance, insight and instruction. In fact, this is so cool that Mortgage Currentcy has created a new Chart on our website to quickly interpret when to use each new Fannie Mae Form and what to gather from the borrower
|Fannie Mae Selling Guide Announcement SEL-2014-11, Disputed Tradelines & Suspended Counterparty Program – Effective 8-26-14
Fannie Disputed Tradelines and Suspended Counterparty Program September 2014|
The only important topics that are meaningful in this selling guide update are: Disputed Tradelines Suspended Counterparty Program Allowable Age of Documents Share the news about disputed accounts with Realtors, borrowers, a referral partner. Also, you should go back through your loans to see if you lost any loans because the underwriter applied disputed tradeline requirements to a DU-approved loan where DU did not address the disputed tradeline.
|Fannie Mae DU Version 9.1 August Update – Frequently Asked Questions (Dated August 19, 2014) [Download Mortgage Talking PointsTM flyer, Fannie vs. Freddie Waiting Periods for Derogatory Credit]
Fannie Mae issued an FAQ for the changes made to DU Version 9.1 that was released over the weekend of August 16, 2014. The document includes a total of 16 Questions. We have highlighted 6 of the most important FAQ’s for your review.
|Top Trending Questions that Lenders Ask Fannie
Top Trending Questions that Lenders Ask Fannie Mae August 2014|
It is so easy to get wrapped up in various scenarios and lose sight of the useful information available on the Fannie Mae website to address various underwriting complications.
|Significant Derogatory Credit Event Changes - Fannie Mae Annc. 2014-10 – Dated July 29, 2014. [Download Chart/Checklist, Fannie vs. Freddie - Extenuating Circumstances Comparison Chart] Also updated to 3 Mortgage Talking Points™ and one Chart!
Significant Derogatory Credit Event Changes Fannie Mae Annc 201410 August 2014|
In reality, who cares about anything else in this announcement but the changes to the waiting periods? Get some marketing out there right away! Reach out to prior clients in your database! Get on the phone, send an email, what are you waiting for?! This really simplifies the waiting periods and LTV limitations (remember no LTV limitations once the waiting period has expired). Also check out three updated Mortgage Talking Points™ articles, an updated chart and checklists, and a brand new Chart called “Extenuating Circumstances Comparison Chart.”
|Fannie Mae Updates Various Topics, HomePath Flexible Financing Terms – Ann. 2014-07 (Effective July 1, 2014 - Expires October 6, 2014)
Fannie Mae Updates HomePath Flexible Financing Terms July 2014|
If you are not involved in this business opportunity, I strongly encourage you to start working with a referral partner that lists and sells Fannie Mae REO properties. As of the publish date of this article, Fannie’s website has not been updated with the new financing terms.
|Fannie Mae Underwriter Release Notes Version 9.1 –“Kinda” Clarifying Foreclosure Waiting Periods (Effective 8-16-14)
Fannie Mae Clarifying Foreclosure Waiting Periods July 2014|
This announcement is confusing because Fannie does not say they will allow a maximum LTV per the eligibility matrix when the four-year waiting period expires for a Deed-in-Lieu of Foreclosure or a Preforeclosure. In fact, the fine print says that they will “clarify” what it means in future Release Notes. This does not go into effect until August 16, 2014, so we are not updating the Comparison Chart or the Mortgage Talking Points™ until we get further info from Fannie.
|Fannie Mae Anti-Money-Laundering - SEL-2014-09, (Effective 8-24-14) [Download Charts/Checklists - Anti-Money-Laundering Sample Template for Small Businesses]
Loan Officers are the front line on this. If you gather information during the loan interview stage or during the origination process that indicates a potential that the loan has a reporting requirement under AML and BSA requirements, you should immediately communicate your concern and/or findings with your manager and legal or compliance department.
|Fannie Mae DO/DU User Interface Release Notes, July 1, 2014
These changes will likely make it easier to navigate through DU or DO and minimize the number of pop-up windows that appear. These changes do not impact the underwriting of the loan casefile, only the navigation of the interface. The new “save” function will empower you to historically save various findings on your own system.
|Fannie Mae Highlights Top Trending Questions
Fannie Mae Rule Clarification June 2014|
Fannie Mae’s website addresses various underwriting complications. Keep the links handy and when faced with a unique situation, or when trying to navigate a discussion on a loan in processing or underwriting. And of course you can always log in to Mortgage Currentcy and hit the “Ask the Experts” link and one of us will answer your question, usually within 24 hours or less!
|Fannie Mae Selling Guide Announcement SEL-2014-06 Dated May 27, 2014
Fannie Mae Annc 201406 Updates June 2014|
Fannie steps up to the plate and delivers a home run. The Continuity of Obligation section and Cash-Out refinance section have needed an overhaul for quite some time. These clarifications and changes greatly improve flexibility, interpretation issues and general confusion. It is just unfortunate that the timing is when refinances have slowed down considerably. Check the lenders you work with to make sure they don’t add overlays on top of these more liberal rule changes.
|Fannie Mae Website Training and Tutorials
Fannie has a new website line with awesome training and tutorials for loan officers, processors and underwriters. And managers—this is a way to keep your expenses lower by not having to pay for training. Promote from within. Use as test cases on new hires or present as a test at the interview stage to determine their overall knowledge base.
|Fannie Quality Control Self-Assessment Program [Download Worksheet - Fannie Quality Control Self-Assessment Worksheet ]
This is a simple and direct way to compare your plan to what Fannie Mae expects of you, and if you do not have a plan, this gives you a methodology to begin to build one. This applies to all positions / roles outlined below. The QC plan is a pivotal and necessary component to the success of our industry. The more we collectively care about it, regardless of the role we serve, the better off we will be as loan officers, as managers, and as business owners within this business.
|Fannie Mae Updates SSN Verification Message for DU Casefiles – Dated 4-24-14
If DU picks up that the SSN may not belong to the borrower, the lender must validate that the SSN does in fact belong to the borrower and still must deliver that loan with a Special Feature Code number
|Fannie Mae Addresses Miscellaneous Selling Guide Updates – SEL 2014-03 dated 4-15-14
Fannie Home Types May 2014|
Quite a few updates to the appraisal section of the selling guide. This announcement is probably geared more for an underwriter, but Loan Officers will benefit — especially when real estate agents call and ask questions about unique properties and technicalities when it comes to appraisals.
|Fannie Now Allowing Unemployment Benefits HARP Loans – SEL 2014-04 (Effective May 6, 2014)
Fannie Now Allowing Unemployment Benefits HARP Loans May 2014|
Being able to count unemployment income without regard to a history of receiving it or the continuance of it for 3 years is a guideline change for DU Refi Plus and Refi Plus loans ONLY. Remember that this will not show up in DU findings yet—but it’s effective May 6, 2014.
|Fannie - FAQ’s Updated for Project Insurance Requirements – April 8, 2014
This is one of those documents you should keep close when working on projects, especially when challenged on the insurance coverage any single project may have in place. It can help you navigate through a conversation with an underwriter/closer or lender along this topic line.
|Fannie Mae New Consumer HARP Marketing Materials Available – Making it Easier for You to Play the HARP – Link to HARP Marketing Material Examples
Fannie Mae is updating their resource materials to assist lenders and servicers to solicit the HARP loans. You can still keep your primary focus on purchase money relationships and increase your incoming calls by utilizing these HARP materials. These are eligible to be used regardless of your relationship to the borrower. Link to download door hangers, flyers, newspaper ad examples. By the way, Fannie Mae continues to offer incentives of anywhere from $500 to $2,000 for closing costs or mortgage balance.
|Fannie Quality Control [Download Chart/Checklist, Measuring Your Quality Control Program Worksheet]
While this checklist is a handy guide for senior management and administration staff, we suggest that you provide copies to LO’s, processors, underwriters, vendors and third-party originators. Review in a sales meeting. Everyone involved needs to know what compliance issues the auditors are looking for and how to spot them at the time the loan is originated and processed.
|Fannie Mae – Priority of Common Expense Assessments for Condos and PUDs – SEL-2014-02 (Effective January 14, 2014)
Fannie Mae Priority of Common Expense Assessments for Condos and PUDs February 2014|
You may want to become familiar with your jurisdiction’s requirements for how many months your state will allow for HOA fees to exceed a lender’s first lien. Avoid uncomfortable situations with your Realtor or builder because the jurisdiction allows for greater than six months lien priority.
|Appraisal Quality – Fannie Mae Creates Watchlist - LL-2013-10 Dated December 10, 2013
Fannie Mae Creates Watchlist for Appraisers February 2014|
If you find that one of your favorite appraisers is on this list, you may want to think about changing that relationship. This AQM list indicates that a specific appraiser has continuously submitted low-quality appraisals with inconsistencies and inaccuracies. Check with Fannie or your Seller/Servicer to obtain the list for your area.
|Fannie Mae Approved Mortgage Insurers List – LL 2014-01 dated 2-4-14
Make a lunch date with your MI reps! Update your knowledge base on the who’s who of MI companies. You never know what you may learn at lunch…. You may learn something from an MI rep that helps you close more loans , marketing ideas, product comparison ideas to avoid using a FHA insured loan, etc., etc. Editor’s Note: Of course, see if they will pay for lunch!
|FNMA Announces Miscellaneous Selling Guide Updates – SEL 2013-10 (Various Effective Dates)
While there are several updates, the one to review right now is the 5 clarifications to completing the 1003. There seems to be some confusion as to what has changed, but our suggestion would be to double check with your LOS provider to make sure that they have made the appropriate changes.
|Have you “PACE’D” Yourself? Fannie Reminder Regarding Property Assessed Clean Energy Programs - November 14, 2013
PACE marketing options December 2013|
We’ve listed some PACE “marketing” options for you to consider. Just exploring any opportunities to increase your marketing abilities increases or deepens existing relationships and forms new ones where you would be a source of knowledge. People will remember you because you have information that is not actively being promoted by other lenders. We have also provided a link at the end of the article that provides a complete listing of known PACE programs in your area of the country.
|Fannie Desktop Originator/Desktop Underwriter Release Notes – DU Version 9.1 (Updated November 12, 2013)
This the third update to 9.1 that went into effect on 11-16-13. Because DU does not have the ability to determine if a loan casefile is a higher-priced mortgage loan or a higher-priced covered transaction under Regulation Z, DU will issue a message on all DU Refi Plus loan casefiles stating that the lender must determine if the DU Refi Plus loan casefile is either a higher-priced mortgage loan or a higher-priced covered transaction.
|Fannie Creates FAQ for DU Version 9.1 FAQ’s – Issued 11-26-13
The biggest impacts from this FAQ are the topics surrounding lowered LTV caps and ‘toxic’ loan features that are going away to make way for QM eligibility. So babysit these loans and find out your timelines. Check your pipeline for loans that have I/O features, terms greater than 30 years, or loans that exceed the new maximum LTV/CLTV/HCLTV of 95%. Make sure you monitor these loans and can still honor them based on delivery deadlines. If you are a mortgage banker, you will still be allowed to close these loans post January 10, 2014.
|Fannie Desktop Originator/Desktop Underwriter Release Notes - DU Version 9.1 – Dated August 20, 2013; Updated August 22, 2013; Updated September 10, 2013; Updated October 22, 2013
This is the 3rd update to DU 9.1 and I have never seen FNMA make so many updates and/or additions to a set of release notes for a new version of DU. We have highlighted the changes in red letters and our comments with yellow highlights.
|FNMA Miscellaneous Updates - Announcement SEL-2013-08 Dated October 22, 2013 - Power of Attorney, HARP Eligibility Dates, Master Blanket Insurance for Projects.
Fannie Mae and Power of Attorney November 2013|
If you have a deal with a POA, a whole new section has been added to the selling guide that gives clear guidance on when it can be used and what restrictions apply. Of course the eligibility improvements to the DU Refi Plus are a pretty sweet deal… see article in this issue, Fannie & Freddie Agencies Announce New Closing Date to be Eligible for HARP Refis, for more guidance on this topic.
|Fannie Provides List of “Loan Defect Categories” (Effective 8-27-13) [Download Charts/Checklists, Fannie Loan Defect Chart for Post Closed Loans. ]
We are sharing this chart from Fannie regarding post-close loan defects because it’s important you know the possible reasons (ahead of time) why a loan can’t be sold in the secondary market. [Download Charts/Checklists, Fannie Loan Defect Chart for Post Closed Loans. ]
|Fannie Updates DU/DO Release Notes for Version 9.1 – Updated September 10, 2013 (Effective 11-16-14)
Fannie and Underwriting for DU Refi Plus Loans October 2013|
This is the second update and clarification to the upcoming DU/DO 9.1 update that will occur on 11-16-13. There are 3 significant updates that should be reviewed in their entirety - like being required to obtain two months bank statements on standard loan casefiles run through DU or what to do if the DTI exceeds 45%. And if you are hot and heavy on DU Refi Plus loans, I suggest you close these up or run through DU 9.0 as soon as possible.
|Fannie Miscellaneous Updates Selling Guide Announcement SEL-2013-07 (dated Sept. 24, 2013)
Fannie Mae and Master Flood Insurance Policy October 2013|
Last month, we published the changes that will be occurring on 11-16-13 when Fannie made updates to 9.1. However, with this update, they have clarified “temporary leave income,” flood insurance for attached condos and the one to REALLY wrap your head around – the “age and date of tax returns.” Filing an extension and trying to get it through underwriting no longer applies. Fannie has provided a chart for this one.
|Fannie DU / DO Underwriter Release Notes – DU Version 9.1 (Effective November 16, 2013)
Conventional Underwriting of ARMs becomes more restrictive 11162013 September 2013|
Lots of changes with 9.1 DU update. If you are hot and heavy on DU Refi Plus loans, I suggest you close these up or run through DU 9.0 as soon as possible so that you can use the more relaxed parameters from 9.0 as long as you can. Same goes for ARM loans, do not delay running these through 9.0 sooner than later.
|Fannie Rolls out a Newsletter called “The Quarterly Compass”
The first Quarterly Compass is available on Fannie’s website. It is a great summary resource and contains links to many of the most important topics to keep you current on changes/trends/requirements/obligations and the like. But, there are a couple of issues (no pun intended) that we’d like to point out.
|Fannie Updates Condo Project Manager Version 4.0 (Effective 6-27-13)
This is a good update. The CPM system was designed to be used as an AUS system for condominium projects, similar to how DU is used to evaluate a borrower; CPM is used to evaluate various risks associated with condo projects, including 2-4 unit condo projects. There are some pretty neat clarifications and enhancements, essentially making CPM easier to understand/use.
|Fannie Form 4506-T - Tips for Underwriters – June 2013
Although primarily created for underwriters, this is good information to share throughout the office and get into the hands of the originators, processors and of course, the underwriters. It provides great insight into the available uses for the 4506-T along with a very useful chart. Another useful piece of information is the indication of the timeline that may be involved when new filings are made or when corrections are made to its database… it could take up to 6-8 weeks!
|FNMA Selling Guide Announcement: Quality Control Plan Required; Misc. Updates. SEL-2013-05 dated 7-30-13
The most important topic in this selling guide update is the topic(s) related to Quality Control and the obligation of lenders of all sizes, including mortgage brokers, to have a QC plan in place that you actually follow. They have also clarified the use of 4506-T forms. Read the related article (in this issue) entitled, Fannie 4506-T Form: Tips for Underwriters.
|Fannie Updates Selling Guide – New Construction Age of Documents; SSI Documentation; Tax Transcripts; Other Types of Income; Announcement SEL 2013-04 (Effective May 28, 2013)
Fannie Other Income June 2013|
Fannie’s updates are good news for everyone. Use the Facebook Posts and Tweets we have written for you to notify your business partners/Realtors of the changes that are being made. It will help you qualify more borrowers. Don’t over-document if you do not have too. Review the full article for specific details.
|Fannie Updates Selling Guide to Incorporate Changes SEL 2013-03 – April 9, 2013
You’ve read about these Fannie updates since October, 2012. Basically SEL 2013-03 is saying that all of these changes have now been incorporated into the selling guide—so you don’t have to switch around from lender letter to announcement. You’ll find links to previous articles covering all of the changes mentioned.
|FNMA Provides Guidance and Clarification for DU Interpretation of Foreclosure and Pre-Foreclosure Sales (aka Short Sales)
FNMA Provides Guidance and Clarification for DU Interpretation of Foreclosure and PreForeclosure Sales April 2013|
This is a good opportunity to make sure you are probing for information during your interview process about prior homes that the borrower may have owned or been obligated on in the past. What is the bottom line? Lenders are solely responsible for ensuring that DU has correctly identified any foreclosure or pre-foreclosure (short sales) on the credit report, and if it has not, then they must manually apply all rules associated with these derogatory events and underwrite the loan accordingly.
|Fannie Mae - DO/DU- 9.0 Underwriter Release Notes [Effective May 18, 2013]
The most useful part of DU Version 9.0 will be the updates to the messaging that you will receive to align certain topics with the selling guide. A good example of this is the update regarding collections and charge-offs. FNMA has essentially indicated that there is no way that these types of accounts would endanger their lien position and the lender no longer needs to acquire documentation to prove this. The DU findings report will now clearly indicate this is not necessary when the credit report reflects collection or charge-off accounts. Remember, this is not true for IRS liens and similar accounts.
|Fannie New Principal Curtailment Policy; Refunding Borrower Overpayment of Fees; Inter Vivos Revocable Trusts – Announcement 2013-01
Inter Vivos Revocable Trusts February 2013|
Lots of moving parts to this announcement, but the biggie here is in establishing acceptable principal balance curtailments rules. It clearly defines what the reasons should be and the documentation necessary to apply funds as a principal balance curtailment. Read the examples on how this would work in real life for limited-cash out and DU Refi’s, and read why you’d want to do this versus reducing the loan amount and re-scheduling the closing. (FNMA Selling Guide Announcement SEL-2013-01 (dated 01/17/13))
|Fannie Lender Incentives for Borrowers to Refinance AND Introduces Private Flood Insurance Policies as an Alternative to the NFIP – SEL 20-13-02.
Fannie Mae Private Flood Insurance Policies February 2013|
This is huge: For purchase and refinance transactions, Fannie is allowing lenders to provide “incentives” for people to do business with you, while it looks like Freddie is only allowing the incentives on Relief Refis. Oh, and now borrowers don’t have to buy their flood insurance from FEMA—they can shop for private flood insurance as long as it meets minimum standards.
|Fannie Updates FAQ’s For DU 9.0 Version (Effective 12-18-12)
Two new questions (and answers) have been added, one having to do with “total funds verified” as a negative number and the other having to do with verifying 30-day charge account funds if not listed on DU. Clarification is a good thing and these will help you get more loans approved if you know how Fannie interprets them. (DU Version 9.0 Frequently Asked Questions as of 12/18/2012)
|Fannie Outlines Updates to Selling Guide with Changes that Occurred Over the Last Several Months - Announcement SEL-2012-14
Fannie Outlines Updates to Selling Guide with Changes that Occurred Over the Last Several Months January 2013|
This Fannie announcement is merely a recap of a bunch of other announcements that we have written about in the past. Nothing new here other than the updates have finally been incorporated into the selling guide. (FNMA Selling Guide Announcement SEL-2012-14 (dated 12/18/12))
|Fannie Updates Appraisal Messaging Notification Revised 11-12-12 (Effective 1-28-13)
This update is for Fannie direct seller/servicers. It can provide insight into the quality of your appraisals and may assist you in identifying weaknesses among various appraisers’ quality and make decisions on amending your active appraisers’ list based on historical feedback on their work.
|Fannie Answers 13 FAQ’s for DU 9.0 as of 11/19/12
Fannie and Personal Charge Accounts December 2012|
You’ll find two clarifications that affect your files run through DU 9.0 – the manual requirement for reserves as it pertains to a borrower that has a current residence pending sale or is converting the property to a second home or investment property, and the requirements surrounding reserves for open 30-Day Charge accounts. FNMA is addressing these questions to clear up any confusion on this topic.
|Fannie Makes Many Updates to Selling Guide SEL 2012-13 (Effective 11-13-2012)
Fannie Delayed Financed Property December 2012|
These changes are impressive especially as they relate to Outstanding Collections, Escrow State HUD-1 signature requirements and the treatment of Capital Gains losses, escrow account requirement for when you include taxes in your new refinance transactions, or the discount that may now be required for retirement accounts.
|Fannie Compares DU 8.3 & DU 9.0 Underwriting Requirements for DU Refi Plus loans (11/14/12) [Download Chart/Checklist, Fannie Income and Assets Documentation Requirements for DU Refi Plus™ Loan Case files DU 8.3 & DU 9.0]
This chart covers your questions about what Fannie is requiring and what messaging can be ignored in Version 9.0 as it relates to DU Refi Plus casefiles. It compares Version 9.0 with Version 8.3 and the procedure to follow if you are still working on case files underwritten using DU Version 8.3. Be careful though, FNMA has a little tiny note at the bottom of each page of the document that says: Note: If the DU Underwriting Findings report includes any messages not listed in this job aid, the requirements of those messages must be satisfied.
|Fannie Home Affordable Refinance FAQs Updated 11/08/2012
The update to question Q98 gives guidance with an example on when a lender may still be required to obtain an appraisal when DU responds with a PIW (Property Inspection Waiver). Question Q99 was necessary because of the update to the Disaster Policy that was spurred on by Hurricane Sandy.
|Fannie Updates HARP FAQ’s – October 11, 2012
Three questions have been updated this time around. All have to do with Lender Paid & Investor Paid Mortgage Insurance. We are now at 108 FAQ’s and still counting!
|FNMA Launches New Website Portal - November 5, 2012
Fannie claims that this new portal will offer better functionality and that we will be able to access tools and available resources with fewer clicks! This will replace efanniemae.com for single and multifamily information and was designed with feedback from their customers. Just so you know, they did not contact us for any input on the new portal… how about you? (Fannie Mae’s New Business-to-Business Web Portal Dated October 11, 2012)
|Fannie Mae Updates Mortgage Insurance Eligibility Requirements for DU Refi Plus Loans SEL 2012-11 (Effective October 13, 2012) [Download Mortgage Talking Points™, Fannie Mae Makes it Easier to Qualify for Refi Plus & DU Refi Plus Loans (updated 10-13-12)]
Fannie and InvestorPaid MI November 2012|
What’s changing? Well, the loans that were closed, delivered and packaged with investor-paid coverage where the lender secured the coverage through premium pricing, higher rates, and/or was covered by pool insurance coverage were not showing up in the DU Refi Plus database. Borrowers that would otherwise be eligible were unable to take advantage of the DU Refi Plus loan program and the benefits that come with this program, such as reduced documentation parameters and reduced property requirements. Now they can! (FNMA Selling Guide Announcement SEL-2012-11)
|Fannie Announces Major Disaster Policy Change to DU Refi Plus Guidelines – SEL 2012-12 (Effective November 1, 2012)
Fannie Mae underwriting rules November 2012|
Fannie is establishing a permanent selling guide policy pertaining to mortgages impacted by disasters for now and in the future. For DU Refi Plus and Refi Plus Loans, FNMA does not require a lender to determine if an additional inspection or a new appraisal is required for these two loan programs, even if there has been a disaster in the area.
|FNMA Updates Various Topics on Refi Plus and DU Refi Plus – Annc. SEL 2012-09 (Effective 9-14-12) [Download Mortgage Talking Points™, Fannie Makes it Easier than Ever to Qualify for DU Refi and DU Refi Plus Loans] AND [Mortgage Talking Points™, What You Need to know About the Home Affordable Refinance Program]
Fannie eases qualifications October 2012|
The reduced documentation and reps & warranties should really help you increase your business. Market this as soon as you can! And review all of your files that did not make it the first (or even the second) time around. (Selling Guide Announcement SEL-2012-09 dated 9/14/12)
|Fannie HARP 2.0 – Updated FAQ’s 8/16/2012
FNMA made minor changes on this document. Read what FNMA is saying about what representation and warranty relief is provided for on the DU Refi Plus product line (Question 20). The information may give you peace of mind when you are looking to assist someone currently being serviced by another lender, and wondering how responsible you will be for any mistakes or issues in the original loan. (Home Affordable Refinance FAQs dated 8/16/2012)
|FNMA Summarizes Primary Selling Guide Topic – DU Version 9.0, SEL 2012-7 (Effective 10-20-12)
Three major changes in this new selling guide update. When all is said and done, the best thing I can recommend is to really focus your attention on the updates to DU Version 9.0 and the Eligibility Matrix and the income and employment changes made earlier this year. (Selling Guide Announcement SEL-2012-7 dated 8/21/12)
|FNMA announces DU Version 9.0 – Major Overhaul of Employment Verification and Income SEL 2012-04 (Effective 10-20-12). [Download Chart/Checklist, Fannie/Freddie Comparison Chart: Investment Property Guidelines (updated 8-12) ]
Fannie Underwriting Changes August 2012|
The overhaul is impressive. Many things are being updated, including new selections for Other Sources of Income so that FNMA can provide more direct guidance to income sources like Capital Gains, Foreign Income, Seasonal Income, Tip Income, etc. The new income types will assist FNMA in providing appropriate feedback and documentation messaging for each source of income. (Desktop Originator/Desktop Underwriter Release Notes DU Version 9.0 Updated August 2, 2012)
|Fannie Mae Hardest Hit Funds Information - SEL 2012-14
Fannie HARP Loans June 2012|
If you live in these 18 states and you actively market the HARP programs, there is $7.6 billion in funding to pay down the mortgage balance at the time of closing. Read the article about the states affected and what you need to do to get the funds to your borrowers! (Selling Guide Announcement SEL-2012-04 - Dated May 15, 2012)
|Fannie Mae Overhauls Income/Employment Guidelines - SEL 2012-04
This is a biggie and one update you’ll need to read! Fannie overhauled the income and employment rules with 9 specific key updates and 60 clarifications. Right now, it’s for manually underwritten loans and the DU version will be announced shortly. It’s time to review your files in process because it could affect the loan approval. (Selling Guide Announcement SEL-2012-04 - Dated May 15, 2012)
|Fannie Mae Improves DU Refi Plus - SEL 2012-4
Fannie is again clarifying the refi to make it easier to qualify—but again, the problem is the overlays. The big change here is the ability to simultaneously refi the existing subordinate lien with a new subordinate lien. But you’ll need to hold off on this one change. The date when the simi-refi’s can be implemented has not yet been set. (Selling Guide Announcement SEL-2012-04 - Dated May 15, 2012)
|Fannie Updates HARP 2.0 – FAQ’s 5/15/2012
HARP Refinance June 2012|
FNMA has issued 12 new questions with answers as well as updating 20 existing questions and answers. Two new ones – 82 and 83 – I believe may have the most interest to subscribers. (Home Affordable Refinance FAQs dated 5/15/2012)
|Communication Time Lines for Short Sales Established [Download Mortgage Talking PointsTM flyer, Fannie Mae & Freddie Mac Short Sale Servicing Timeline] (FNMA Annc. SVC 2012-7 - Effective June 25, 2012 | FHLMC Bulletin 2012-9 - Effective June 15, 2012)
FannieFreddie Short Sales May 2012|
Why is this important to you? Right now there is a backlog of homes and borrowers that could benefit from a quicker path to a short sale as a foreclosure alternative, as well as myriad processes and paperwork – but no accountability or service that the servicer is obligated to follow on a consistent basis. This will empower the borrower and the realtor that is assisting with the short sale with the expectations and knowledge to challenge the servicer when the new timelines are not met. (FNMA Annc. SVC 2012-7 - Effective June 25, 2012 | FHLMC - Bulletin 2012-9 - Effective June 15, 2012)
|Fannie Changes Pricing – SEL 2012-03
FNMA is putting everyone on notice that they can increase the base g-fee or the loan-level price adjustments (LLPA’s) whenever they want, and if you do not like it, oh well, too bad. If you are a direct seller to FNMA you should contact your Account Team right away to discuss this. If you are a broker, correspondent (regardless of size) or a direct seller, this will really impact you. (Selling Guide Announcement SEL-2012-03)
|Fannie Mae DU Version 8.3 HARP 2.0 Appraisal Enhancements – FAQ’s Updated April 16, 2012
DU has a new appraisal FAQ for Refi’s to help you take advantage of everything you can in today’s market! You want those property fieldwork waivers on every loan. Make sure you understand how to input the right information up front to increase your chances for the fieldwork waiver. The benefit of getting FNMA’s reps and warrants without an appraisal on these transactions reduces your risk on these high LTV/CLTV’s. (Desktop Originator/Desktop Underwriter Release Notes DU Version 8.3 April Update – 4/17/2012)
|Fannie Updates HARP 2.0 - Frequently Asked Questions (FAQ’s) 3/15/2012 [Download Mortgage Talking PointsTM flyer, What You Need to Know About HARP - Home Affordable Refinance Program]
HARP Refinance Program April 2012|
FNMA has updates on HARP 2.0 FAQ questions 12, 59, 61, 86 and 91. The biggie here is the clarification that you can add a non-owner occupant to the refinance. [Download Mortgage Talking PointsTM flyer, What You Need to Know About HARP - Home Affordable Refinance Program]. (Home Affordable Refinance FAQs dated 3/15/2012)
|Fannie Project Eligibility Review Service & Premium Pricing Recaptures – SEL 2012-02
Fannie Doubling Condo Review Fees March 2012|
If you are active in the condo market and have used Fannie Mae’s Condo Project Review Service, be aware of these increases and get your condos submitted prior to April 1, 2012 to save your sellers/developers some money.
|Fannie Updates Construction Loans and other Miscellaneous Clarifications – Annc. SEL 2012-01, Jan. 31, 2012.
For those of you that offer construction loans, more housekeeping by Fannie than substance. The elimination of the date of lot purchase is nice if the land is worth more than the borrowers paid for it. Also covers Delayed Financing, Joint assets of non-occupant co-borrowers, Clarification of an “affiliated condo.” (Fannie Mae SEL 2012-01)
|Fannie DU Release Notes 8.3 Version! This Is What You’ve Been Waiting For! Expanded HARP goes into effect March 17, 2012.
HARP February 2012|
There is unprecedented refinance opportunity with this program. With the release of DU/DO 8.3 many of these enhancements will start to become reality. Read the miscellaneous updates to DU support changes and clarifications to the DU feedback users will receive. (DU Release Notes v 8.3)
|Fannie Home Affordable FAQ’s DU Relief Ref & Refi Plus - Updated 12-20-11
The last time we checked, there were about 30 FAQ’s, and now we are up to 100 even. The 5 listed are the new and updated ones that affect loan originators and processors. (Fannie Home Affordable Refinance FAQ’s )
|Fannie Updates Temporary Leave Income; Condo Project Insurance, Multiple Loans to One Borrower – Announcement SEL 2011-12 – December 20, 2012. [Download Mortgage Talking PointsTM flyer, How Your Clients Can Qualify for a Mortgage if on “Temporary Leave” from Job!]
Fannie Temporary Leave Income January 2012|
A couple of key updates with this change as Fannie really clarified its policy about “temporary leave” from a job. Most underwriters may not be aware of this recent change. The use of assets to supplement temporary income could help keep a deal together. In regard to multiple loans to one borrower, be aware of ownership and how title is held. It impacts your number of units financed in total. Pay attention to properties titled to an entity in which the borrower is personally obligated for repayment. (FNMA SEL 2011-13)
|Fannie Clarifies Condo Insurance Requirements – SVC 2011-23 (Effective January 1, 2012)
Fannie Mae Condo January 2012|
Fannie Mae clarified the requirements servicers must meet in regards to condominium insurance coverage. While this is a servicing announcement, it is our belief that this will make its way to the originators within a short period of time. ()FNMA SVC 2011-23
|Fannie Home Affordable Refinance Program (Second Time Around): Hype over HARP – SEL 2011-12 (Effective 12-1-11)
Fannie Mae and HARP November 2011|
There was a lot of HYPE over HARP II. Eligible loans: Sold (not closed) to Fannie by 6-1-2009. Long story short, there are some welcome improvements as part of this process but nothing to make me want to go dance in the streets. Two big points about sums this thing up, no LTV limit, great for those of you in states that have seen massive property depreciation. And the lowering of LLPA caps for primary residences is a good thing. WATCH out for the “Refinance Solicitation Policy”. Fannie is VERY specific as to what you can and cannot say to consumers! Read Freddie’s version because there are differences. (Fannie Mae SEL 2011-12)
|Fannie and the Uniform Appraisal Dataset (UAD) and Uniform Collateral Data Portal (UCDP) – Effective 12-1-11. Minor Underwriting Updates (Effective 10-25-11) [Download Mortgage Talking PointsTM flyer, House Swapping/Trading Homes - What You Need to Know]
FannieFreddie House Swapping November 2011|
Long story short, Fannie and Freddie at the direction of the FHFA are now collecting a lot more information in uniform formats. In addition, Fannie clarified DU’s handling of bankruptcy, single premium financed MI and trade equity. This just makes Fannie’s guidance on these subjects crystal clear. (FNMA SEL-2011-11)
|Fannie HomePath.com Financing Options. [Download Mortgage Talking PointsTM flyer, Fannie HomePath & HomePath Renovation Programs: Incentives to Buy REO properties - As of November, 2011]
Fannie Mae HomePath November 2011|
We recommend that you sign up to receive notices of new foreclosures in your area. Go to HomePath.com , click on the “property alerts” tool bar, and when you get a notice from Fannie, let your key real estate agents know about the new listings. And, you may want to hold sales meetings, using the Mortgage Talking Points article included.
|Fannie Mae Updates Requirements for Reporting Rental Income – SEL 2011-10
Just a little bit of housekeeping by Fannie clarifying that Form 1007 is not required as part of a rental property transaction when the borrower is being qualified with the entire monthly payment on the subject property. When rental income is being used to qualify the borrower, standard income verification policies for verification of rental income are required. (SEL-2011-10)
|Fannie Mae Selling Guide Updates – SEL 2011-09
No changes here that would blow up the loans that you have in process, but they did do something cool! They created DU Quick Steps, a series of resources on how to properly input data into DU to insure proper findings. Fannie receives many inquiries on Construction loans as well as second homes and investment property loans, the DU Quick Steps for those articles are available to assist in insuring you have accurate feedback from DU. (SEL 2011-09)
|Fannie Updates Median Incomes for My Community Mortgage® – Selling Notice 7-19-11 (Effective August 20, 2011)
These median income figures are required to be used to determine a borrower’s eligibility for Fannie Mae’s My Community Mortgage. Note that Fannie Mae’s Median Income figures may vary compared to those provided by HUD. You must use Fannie’s figures when determining eligibility. (07-19-2011 Selling Notice)
|Fannie Answers More Questions about Loan Originator and Appraiser Identifier – FAQs Updated 7-26-11
22 FAQs but we are interpreting 10 of them that have been significantly updated. It’s not earth-shattering but it does outline Fannie’s requirements for different origination methods. System warnings will kick in October 3, 2011 for delivery without IDs. (Selling News: July 26, 2011 Release )
|Fannie Replaces “Qualified Participants Policy” to “Lender Hiring Requirements” - SEL 2011-06 [Part 1] (Effective July 26, 2011)
We find it odd that Fannie has backed off checking all parties to the transaction on the GSA Excluded Parties List and HUD LDP List and limited the scope to the origination parties alone. Freddie has not! Don’t be surprised that lenders will still require you to do BOTH! (SEL 2011-06)
|Fannie Updates Selling Guide – SEL 2011-05: Delayed Financing Exceptions, Condo & Co-op updates, Eliminates Reverse Mortgages, Multiple Financed Properties to Same Borrower! [Download Mortgage Talking Points™ flyer, Financing Multiple Properties--What You Need to Know]
Mortgage Talking Points July 2011|
For just a minute, I am starting to think that someone at Fannie might have a small portion of common sense. The Delayed Financing Exception is far overdue. Even the exception is still restrictive, but something is better than nothing. One nugget is borrowers with properties 5-10 financed can now cash out refinance (subject to restrictions listed) properties that they paid cash for. (SEL-2011-05)
|Fannie Version DU 8.3 – To Be Updated 8-20-11. Ready or Not, Here it Comes!
Here is my version of what the DU release notes should have said (would have saved Fannie a lot of time): “DU 8.3 will turn down more loans, don’t be surprised”. Watch your loans! If you resubmit a loan after the weekend of August 20th you will get an 8.3 recommendation that may kill your deal!!!! Make sure you are on top of your files and you have your final submissions prior to that weekend! (DU 8.3 Release Notes – June 14, 2011)
|Fannie Updates Incentive for Fannie REO Buyers (Homepath®) – June 14 to October 31, 2011.
Mortgage Talking Points July 2011|
Fannie has extended their HomePath® Incentive and added a bonus to the selling agent if their clients will be occupying the property. Here’s the kicker: It’s not automatic — RE agent must ASK for both incentives when submitting the offer. Get the word out to your agents and yes, you can finance these homes with any loan program. (General Homepath Announcement)
|Fannie Updates Deferred Student Loans; Retirement Account Assets; Non-applicant debts; Waiting Periods Derogatory Credit – SEL 2011-04 (Effective 5-24-11).
FannieFreddie June 2011|
Document those student loan payments if your DTI is close to Fannie’s 45% cap or any MI company’s caps you may deal with because the 2% may exceed the actual payment amount. Document that retirement funds can be withdrawn or don’t count them in your reserves. Derogatory credit updated (MTP and Chart/checklist)
|Fannie Approves New PMI Company – LL 2001-03 - Includes General Explanation of PMI Strategies [Download Charts/Checklist, Know Your PMI Options: Single Premium; Lender-Paid & Monthly]
Know Your PMI Options June 2011|
No big whoop that GRMAC has been approved as a new PMI company. However, it’s critical to know your options, because if you are competing with someone who is sharp and knows their stuff, they can structure a deal with a higher rate then you but a lower payment due to the PMI structure used. That’s why we’ve created a handy Charts/Checklist, Know Your PMI Options: Single Premium; Lender-Paid & Monthly]. (Includes comparison examples.) (SEL-2011-03)
|Understanding Fannie’s 5% Limit on Fees and Points – The Details
If you work in a market where the average loan size is very small, you may have run into Fannie Mae’s 5% limit on fees and points. The truth is when you follow Fannie’s rules and do the math, there truly should not be many loans (if any) that exceed that 5% limit because credit-related LLPAs & Bonafide rate-reduction discount points are EXCLUDED from the 5% rule.
|Fannie Mae Adds New Podcasts to iTunes
Fannie Podcasts May 2011|
Welcome to the tech world Fannie! They have 5 podcasts that can be downloaded free using iTunes! Burn on your own CD and give to clients and real estate agents.
|Fannie Offers New Incentive for Fannie REO Buyers (Homepath – Homepath Renovation) [Effective April 11, 2011]
Fannie Mae Special Offer on REO Properties April 2011|
Fannie has done this before. It is a nice way to help more buyers of their REO properties. When Fannie has offered this in the past, your clients cannot assume they will get the 3.5%. Have your agents make sure they are writing it in as part of the offer to insure the clients receive it. (General Homepath Announcement)
|Fannie Extends Home Affordable Refinance Program – SEL 2011-02 (Expires June 30, 2012)
I personally have had clients that could not take advantage of the HARP program because they closed after March 1, 2009. Now may be a time to revisit some of those opportunities to capture some additional business. (SEL 2011-02)
|Fannie Updates the Selling Guide – SEL 2011-03
In case you didn’t know, the following changes have been previously announced but finally added to Selling Guide. Clarification of LTV’s, Land Contracts and Cash-Out Refis, Age of Documents, Property Values and HARP—find links to previous updates here. (SEL 2011-03)
|Fannie Reminds Lenders Employed by “Agency-Regulated Institutions” about Mortgage Loan Data Requirements – LL-2011-02 (Effective July 29, 2011)
If you are a LO at a bank, thrift, credit union or Farm Credit Administration, you need to get your unique identifier number and register on the NMLS site or lose your ability to make a living. This goes for processors/assistants that quote rates and take loan applications.
|Fannie Has New Underwriting FAQs Link – Top 10 Questions – January 2011
This is just our humble opinion, but we think that Fannie is copying MortgageCurrentcy when it comes to FAQs—but I can tell you that these questions are NOT on our top 10 list! Read the shortened version of their top questions.
|Fannie Mae Selling Guide Updates – SEL 2011-01(Effective 1-27-11)
Nothing earth-shattering—they just finally got around to updating the manual. What’s new however is that if you offer a bi-weekly payment service or something to that effect, be careful not to have those agreements in place prior to your loan being sold to Fannie Mae as this is prohibited. Such an agreement can be done after the loan is sold but should not be done prior to. (Fannie Mae SEL 2011-01)
|Fannie Increases Delivery Fees – Updated Flow Business Pricing Requirements – SEL 2010-17 (Effective April 1, 2011)
Fannie has a professional approach and does not try to pass this off or make absurd excuses & assertions (See December 2010 Freddie Article). Pricing is periodically reviewed and changed to ensure Fannie Mae’s position and stability. While I believe 1.50 points is more than sufficiently charging someone for a 680 credit score and 80% LTV, Fannie believes they should now be paying 1.75 points. (SEL-2010-17)
|Fannie Updates Home Path® & HomePath® Renovation Foreclosed Home Incentives Program for 2011.
Fannie Mae Foreclosed Homes January 2011|
Fannie’s taken away the real estate agent bonus incentives and are no longer offering to pay closing costs. However, there are two marketing strategies to share with your real estate agents—even if your company does not offer HomePath® financing. (Link to HomePath® & Financing Details)
|Fannie’s FAQ Covering Revolving Debts in the DTI – What You Need to Know!
Fannie New Rule December 2010|
Fannie New Rule: May have closing delay if a client has to pay off a credit card to qualify for loan. New requirement to close a credit card account is in effect – just like a mortgage, revolving accounts may need to be paid off on HUD-1 & documentation account is closed. (DU Version 8.2 FAQs )
|Fannie DU Release Notes – 8.2 – Tons of Updates Go into Effect 12-11-10
Fannie updates several changes that have occurred over the past few months—but are now being programmed into DU system. Changes were extensive and this will hopefully make it easier and less likely that you will make a mistake. It is not every day that DU Release Notes come with their own FAQ – Be sure to look that over, too! (Also refer to article in this issue, Fannie\'s FAQ Covering Revolving Debts in the DTI - What You Need to Know.) (DU Version 8.2)
|Fannie New Energy Feature and New HomeStyle Renovation (Finally Making Sense) – SEL 2010-15. (Effective 12-1-10) [Download Mortgage Talking PointsTM flyer, New Energy Improvement Financing Can Help You Sell More Homes]
Fannie Mae Energy Improvement Loans December 2010|
WOO-HOO! Lots to be happy about with this announcement-so get the word out to your real estate agents! Start pushing your investors to add energy efficient loans to the rate sheet. If you sell Fannie direct and do not need investor permissions – this is a great alternative to Renovation Products for small, energy only, needed improvements. And HomeStyle Renovation Lenders – Great news for your builders big in the remodeling business – use the MortgageTalking Points™ flyer, New Energy Improvement Financing Can Help You Sell More Homes, to spread the good word! (Fannie SEL 2010-15)
|Fannie Makes 4 Major Updates – SEL 2010-16: Income Documentation (Eff. 12-13-10); PACE Loans (Eff. 1-1-11); Condo Conversions (Eff. 3-1-11); Condo Project Ligation (Eff. Immediately)
Fannie Mae December 2010|
Lots of updates but you only need to know about 4 of them. Selling Guide Updates continue to dazzle as a direct result of years of neglect…when I said they were rewriting the thing, I meant it – all 1,249 pages of it. Quick tidbit – the Selling Guide was 1,126 pages in April 2009. (Fannie SEL-2010-16)
|Fannie Offers EarlyCheck™ Optional to Lenders – EarlyCheck™ Release Notes 1.0 (Effective 12-20-10)
Look for this to be implemented for loans prior to closing – not sure when, but if Lenders find it saves them problems with delivery, you can count on it becoming part of your world—which begs the answer to this question, “How long will this be optional?" (EarlyCheck™ Release Notes 1.0)
|Fannie LQI Updated Fact Sheet - Will LQI save the mortgage industry?
The future from Fannie is a fairly intrusive business model. LQI is simple and yet massive in scope. It adds several processes and issues for both pre-funding and pre-delivery. LQI will add cost to the process, while getting fewer loans to the finish line – talk about sobering. And the updates just keep on a coming!!! (LQI Fact Sheet)
|Appraiser Independence Replaces HVCC: FHFA & Fannie SEL 2010-14 9 (Effective 11-1-2010) [Download Mortgage Talking PointsTM flyer, Appraisal Independence Requirements - Frequently Asked Questions]
Mortgage Talking Points flyer AIR FAQs November 2010|
There are some publications out there stating that the Interim Rule doesn’t prohibit production staff from ordering, paying for, or participating in the appraisal process directly with appraisers – but I’m here to tell you differently. The link to the Federal Reserve gives you access to the actual Federal Register – Interim Final Rule – the rule is out for comment for 60 days…a few tweaks are likely, but this was developed with all the HVCC problems in mind and all the players having input – not much will change. (Fannie SEL-2010-14)
|Fannie Offers New Incentives for HomePath® - Effective September 23 to December 31, 2010.
Get out and let your agents know about the bonus of $1,500 to them – Fannie wants their properties to stand out above the crowd. Also, for HomePath loans, they will still negotiate a full 6% sales concession – but with that concession, I do not expect the Agent bonus will be offered – it is hooked to the 3.5% buyer incentive. Facebook post for you to let your agents know! (Fannie Mae News Release: Fannie Mae Announces New Incentives for HomePath® Properties [Sept. 23, 2010])
|Fannie Loan Upgrades Data Delivery & Launches EarlyCheck™ System on September 25, 2010
Fannie & Freddie keep making announcements telling us that they will make announcements later… especially when Fannie says that it’s “available” but you don’t have to USE it! Can’t wait for Investor and Lender requirements! (Hot Topics – EarlyCheck, UAD: Uniform Appraisal Dataset, Update ULDD: Uniform Loan Delivery Dataset, LQI Reminder )
|Fannie Underwriter Release Notes –New DU Version 8.2 (Effective December 11, 2010)
Fannie Pay Check Stubs October 2010|
Fannie’s DU 8.2 will be incorporating derogatory credit, short sale, foreclosure rules that went into effect on October 1 AND employment, income and asset rules going into effect on December 13, 2010. Time to dust off the Download Mortgage Talking PointsTM flyer, Waiting Periods for Derogatory Events.
|Fannie Is Becoming More “Flexible”: Announcement SEL 2010-13 (Effective 12-13-10) [Download Mortgage Talking PointsTM flyer, Show Me The Money - OK Sources of Funds AND Charts/Checklists Fannie Mae Sources of Funds.]
Mortgage Talking PointsTM flyer October 2010|
This announcement is chockfull of information – unwinding the special Flex product and making the benefits and features part of standard eligibility took some effort. This is a great move by Fannie – instead of another round of tightening Fannie is looking to continue assisting higher-LTV borrowers with flexible sources of funds. Download Mortgage Talking PointsTM flyer, Show Me The Money - OK Sources of Funds and Charts/Checklists, Fannie Mae Source of Funds Chart.
|Fannie’s Ever-Changing FAQ – LQIs Maddening Twists and Turns – July 29 & August 19 Updates.
Fannie Mae updated the FAQ again in August. This review is all about the July new and updated Q & A’s. The Loan Quality Initiative (LQI) FAQs keep changing… Questions and Answers that I know were there – just disappear. I feel like I am taking part in a new addition of the TV show – “LOST! – The Fannie Saga”. (LQI FAQs)
|Fannie Updates Unexpired Redemption Period & Condo Warranty Rules – SEL 2010-10 [Effective August 12, 2010]
While this update had a lot of “servicing” updates, there were 2 updates that affect the origination side of things: Unexpired Redemption Periods & Warranty of Condo Project Eligibility! Basically, they are back-pedaling on SEL 2010-07 and clarifying Selling Guide B4-2.1-01. No biggie changes here! (Fannie Mae Announcement - SEL-2010-10)
|Fannie Clarifies Undisclosed Liabilities and Re-underwriting Requirements – SEL 2010-11 [Effective December 1, 2010]
Fannie Clarifies Undisclosed Liabilities and Reunderwriting Requirements September 2010|
Fannie now says they never intended for everyone to be pulling new credit reports or re-underwriting the loan just before closing – so then why did Fannie suggest doing just that? The only difference now, with SEL 2010-11, it explicitly states you do not need a new credit report – But you are still responsible to have processes in place that detect undisclosed and/or increased liabilities up to the closing date. (Fannie Mae Announcement - SEL 2010-11)
|Fannie Updates and Clarifies Appraisal Policies - SEL 2010-09 (Effective 9-1-10)
Appraisal Rule Update July 2010|
Finally some reasonable guidance on dealing with value and deficiencies… for the most part, we now have a reasonable solution to those appraisals that are just plain awful. Interior photos will be required AND Fannie clarifies that you DON’T have to order your appraisals thru an AMC! (Fannie Mae SEL 2010-09)
|Fannie Clarifies Underwriting Foreclosure Borrowers – SEL 2010-08 – Effective October 1, 2010.
Mortgage Talking PointsTM July 2010|
This officially demonstrates a good decision by Fannie, to really give a clear incentive to borrowers for working with their servicers regarding property disposition. However, Fannie SEL-2010-05 rules are still in effect until 10-1-10. Mortgage Talking PointsTM flyer & Reference Chart for LOs and Processors Included. Mortgage Talking PointsTM flyer (from May 2010) Updated - Advising Foreclosure, Short Sales, Deed-In-Lieu Clients.
|Fannie Mae Hasn’t Been Clear In The Past, So We’re Saying It Again: Mortgage Insurance Clarified; Foreclosure Redemptions; Refi Rules to Buy Out an Owner’s Interest and Misc. Updates. SEL 2010-07 – May 27, 2010. [Download Mortgage Talking PointsTM flyer, Fannie Cracking Down on Foreclosure Redemption Periods]
Fannie Cracks Down Redemption Periods June 2010|
If financed MI is still bothering you after you read this, please email your questions. As for the Foreclosure issue – become familiar with your state’s rules. If you are doing loans in states where you are not familiar with the laws, proceed very carefully – make sure your seller can actually transfer the property and the redemption has actually expired. [Mortgage Talking PointsTM flyer, Fannie Cracking Down on Foreclosure Redemption Periods]
|The REAL Scoop about Undisclosed Liabilities - Fannie Loan Quality Initiative FAQ (5/28/10 & 6/7/10) [Links to Fannie's Frequently Asked Questions]
Straight from the horse’s mouth! We’ve picked the FAQs that deal with Fannie’s “Undisclosed Liabilities Policy” and this is a MUST READ because there is a lot of misinformation out there, too. Prepare to add “soft credit reports” to your processing checklist! (LQI FAQ 5/28/10 & 6/7/10)
|Fannie Issues Lender Quality Initiative (LQI) FAQ Highlights [Download LQI Reference Chart Matrix Included]
The LQI, FAQ, has 29 questions (for now anyway). We’ve interpreted 8 of the biggies for you—with real-world applications and understanding what they mean in plain language! [Download LQI Reference Chart Matrix Included] (LL 2010-03)
|Fannie’s Tips for Identifying Undisclosed Liabilities – An Update to Annc. SEL 2010-01
Fannie makes the “tips” sound easy enough – but have you ever “refreshed” a credit report? Me either. However, these changes are coming – before July 2010. Start getting used to chasing down inquiries and coach your borrowers – NO BUYING THINGS, INCEASING CC BALANCES OR APPLYING FOR CREDIT UNTIL AFTER THEY CLOSE! (Announcement SEL-2010-01)
|Fannie How to Underwrite Pre-Foreclosure or Deed-in-Lieu Borrowers – SEL 2010-05 (Effective July 1, 2010)
Good News Fannies New ShortSaleDeedinLieu Rules May 2010|
For a long and frustrating time, we have been commenting on and responding to Fannie’s lack of policy specific to Short Sales – WELL IT IS FINALLY HERE, AND YES, IT IS CONSIDERED A “PREFORECLOSURE SALE”. I do appreciate the simplification of the whole mess, but still…what took so long? And why don’t they just call it what it is - a “short sale”. (SEL 2010-05)
|Fannie DU Version 8.1 – To be updated on June 19, 2010 to incorporate changes from Annc. 2010-05 and 2010-06 that are in effect NOW!
Fannie has incorporated most all of the changes for this year into DU 8.1. The only updated surprise for this release is the Property Fieldwork Waiver enhancement. And, Fannie is offering this up to 125% LTV on the expanded approval products – this should be a nice feature…wish they had done it sooner. (Desktop Underwriter Release Notes; SEL 2010-05; SEL 2010-06 [Effective 4-30-2010])
|Fannie Updates ARMs, Balloons & Interest-Only Loans and Clarifies Employment Documents all in Announcement 2010-06 (Effective April 30, 2010)
ARM qualifying changed with no warning - just out of the blue – so watch your ratios. I/O loans are still alive and Fannie is the only avenue. You’ll find one more multiple-finance-property loophole closed. Misc. updates on employment verification. (SEL 2010-06)
|Fannie Continues to Change the Refi Plus Product and Other Misc. Updates – SEL 2010-04 (Effective DU Updates 4-17-10)
Removing borrowers just got a whole lot easier – DU eligibility means this is open to ANY Fannie eligible loan. Watch the March 1, 2009 date for Refi Plus loans – we just lost our eligibility for loans done when rates went up last year – Any one considering this needs to apply before April 15, 2010. RESPA – be sure to look into Short Sale processing fees – nothing worse than Tolerance Cures. (SEL 2010-04)
|Fannie’s Loan Quality Initiative –Updating Quality Control Standards - Effective SEL 2010-03 (Effective July 1, 2010) [Download Mortgage Talking PointsTM flyer, Don’t Close Late—Don’t Close Ugly! New Rules Make for Bumpy Ride to Closing]
Closing On Time is Getting Tougher April 2010|
This change is HUGE and we don’t have good news for you…Brokers, Correspondents, and Everyone else – look for your QC on the post-closing side to tighten-up. The Third-Party origination section will really end up affecting everybody in some way as Lenders tweak their QC models – GOOD NEWS – Fannie Mae is offering training in order to help lenders implement the changes to QC Policy. (SEL 2010-03)
|Fannie Selling Guide Going Thru Huge Transformation - Announcement SEL 2010-02
With the new Selling Guide, Fannie has changed everything...from the way they organize it and update it, to a new Announcement categorization method. Can\'t say any of it is easier to follow, but one thing is for sure - Fannie is reinventing itself. (Fannie SEL 2010-02, dated March 2, 2010)
|Fannie Approves New Mortgage Insurers – LL 2010-02 (Effective February 18, 2010)
Existing MI companies are maneuvering with these affiliates to allow them to continue to write new business. Don’t expect guidelines to relax though… For now, Fannie will not differentiate MI issued from these affiliates from their existing mortgage insurer. The new player is Essent Guaranty. (Fannie LL 2010-02)
|Fannie Brings Post-Closing Reviews to Pre-Closing Auditing – Introduction to Loan Quality Initiative – LL 2010-03 – [Most Effective June 1, 2010 (Various dates)]
Loan Quality Initiative or LQI for short - is a major change for the industry and will affect every aspect of the loan origination and delivery process. Coaching your borrowers is more important than ever. Make sure no one is out there getting additional credit during the process – it will stop your loan in its tracks. (SEL-2010-01/LL 2010-03)
|Fannie Changes More Than a Dozen Messages and Requirements – DU Version 8.0 (Effective April 17, 2010)
We are all so used to DU having dated messages and even inaccurate messages with regard to condos…nice to see Fannie finally cleaning things up – as I’ve said before, Fannie Mae is going through a mid-life crisis and is remaking themselves from top to bottom. Nip/Tuck… (Fannie Mae DU Release Notes - Version 8.0)
|Fannie Sweetens the Deal for REO Properties thru HomePath®
Fannie seems to have thrown this together quickly. Fannie makes their own rules for their REO – as they should. This incentive is not an issue for HomePath underwriting, but watch for Lenders to view this incentive within the restrictions of Interested Party Contributions (IPC) for non-HomePath financing.
|Fannie Mae Provides Florida Condo Financing Some Relief - Lender Letter 2010-01
Now that Florida is a Condo wasteland, Fannie is taking steps in an attempt to stabilize the market. Fannie Mae is providing liquidity to this specific market. Based on the information provided, you begin to understand the extraordinary need for this in Florida – wish they would consider some other markets, too. (Lender Letter 2010-01)
|Fannie Issues FAQ Updates to Announcement 09-19
You know the announcement was fairly intense when the FAQs have FAQs to answer the 1s set of FAQ’s. Some operational flexibilities are noted – I’ve not seen some of them before and would not have guessed that was Fannie’s position. (Fannie 09-19 FAQ - Nov 2009 )
|Fannie Rejects FHA-Approved Condos and Improves the Refi Plus Products (Effective Immediately) and February 1, 2010 – Announcement 2009-37
Fannie just gave you a gift…those past clients with funky subordinate loans can finally refinance. Rates are still good enough…time to start dialing for dollars. Watch your condos…what was easy just became more difficult. (Fannie Mae Annc. 2009-37)
|Fannie Reorganizes the Selling Guide
I’ve just started to swim around in this thing, so I can’t tell you that it’s great…all I can tell you that the jargon and difficulty for interpretation still exists. As always Mortgage Currentcy will break it down to give you solutions and help you apply the information to what you do on a daily basis. Free access to the Selling Guide through www.efanniemae.com. (Fannie Mae Announcement 2009-32)
|Fannie Mae Loan Data Requirements – Required Use of New 1003 - Changed to July 1, 2010
Why is it that Fannie is throwing in an arbitrary date? What is it? Why do they need to put the potential for problems for Sellers and Servicers on March 1, 2010?
|Fannie Mae Provides Lender Tips for the 4506-T and FAQ for Misc Underwriting, Eligibility and Property Updates – Announcement 09-19 & FAQs
While Fannie doesn’t come right out and say it, a real sense of DOOM comes over me. No one addresses the elephant in the room for the 4506-T rules. What do you do when you discover issues with discrepancies such as the last bullet? Undisclosed Self-Employment Loss? For co-borrower? For non-borrowing spouse? Undisclosed anything is bad and investors and lenders do not mess around. (Fannie Mae Announcement 2009-19)
|Fannie Mae Lender Letter 2009-07 Energy Loan Tax Assessment Programs 9-18-09
Energy Loan Tax Assessment Programs are becoming more common across the country as local governments enact legislation to assist energy efficiency programs for housing. Lenders should treat ELTAP payments as a special assessment in underwriting a borrower where the security property is subject to an existing ELTAP loan. (Fannie Mae Announcement 2009-07)
|Fannie Mae DU 8.0 Version Release Notes Packs Quite a Punch (Effective Weekend of December 12, 2009)
If you haven’t committed to memory all of the changes that occurred in the last few months, you are not alone – who could keep up? The list in the Rule Synopsis is a quick reference, but the real meat is going to be on the Mortgage Currentcy Fannie Mae page. There is a new Selling Guide – I mean come on… the last one just came out in April – mind you that was late, but I think they FINALLY did rewrite all of it.
|Fannie Mae Tightens Credit. Also Streamlines MI - All in Announcement 2009-29 (Effective Dates November 1 & December 12, 2009) [Includes Mortgage Talking PointsTM flyer, Take the Mystery Out of Financed Mortgage Insurance]
Some real positives for Fannie loans and MI coverage requirements -- Fannie intends to simplify MI option. Financed MI – quite possibly the best MI option available – and Fannie seem to finally “get it”. Fannie is removing some barriers to this old dog – get back into school with your favorite MI Rep. And Credit Scores Jump Again. The only exceptions are nontraditional credit and Refi Plus or DU Refi Plus loans. (Fannie Mae Announcement 2009-29)
|Fannie's Conventional Alternative to the FHA 203k Program – HomeStyle® Renovation Program- (Includes Mortgage Talking Points™ called “HomeStyle® Renovation – The Conventional Alternative to an FHA 203K")
What you probably don’t know about this product is the fact that it has been around since 2005! So where have we all been? As FHA 203k loans grow in popularity, so does the frustration associated with those loans and their limitations. Fannie’s HomeStyle Renovation loan is a great alternative with much more flexibility then a 203k loan. This is a great alternative for homebuyers purchasing a home. If you are doing the remodel of an existing home, the LTV calculations are far less favorable (see HomeStyle Renovation Worksheets in the article).
|Fannie Mae Construction-to-Perm Financing Eliminated – Announcement 09-28 (Effective 11-30-09)
If you were one of the lenders who used the Fannie Mae CTP product, you better hurry up and get your pipeline closed. Make sure you communicate to your builders and clients the fact that this product is being eliminated. Be prepared to discuss alternative options. Don\'t confuse this product with the HomeStyle® Renovation loan. The HomeStyle® Renovation loan is still available and was NOT eliminated as part of this product retirement. (Fannie Mae 09-28)
|Fannie Mae Higher Priced Loans - Clarification on Qualifying, Point & Fee Limits and HMDA Reporting! (Includes Reg Z High Priced Mortgage Determination Checklist)
Lots of unrelated info in one announcement—however, watch out for the impending Higher Priced Mortgage Loans and Reg Z. You can expect to hear more from lenders on this as October approaches. Refer back to Article: Reg Z New "High Priced" category, HOEPA/Section 32 Expanded - This WILL affect your loans! (Part 2) - [Includes Reg Z High Priced Mortgage Determination Checklist] (Effective 10-1-2009). (Fannie Mae Announcement 09-24: Delivery of Higher-Priced Mortgage Loans, Revised Qualifying Rate Requirements, Assessment of Late Charges, Clarifications to Points an Fees Limitations and updates to reporting Under the Home Mortgage Disclosure Act. )
|Fannie Mae Announces New 2009 Area Median Income Limits (Effective 9-1-09)
Remember, these income limits affect many affordable housing products, not just those offered by Fannie Mae. Often times Housing Finance Agencies use these to determine eligibility for a host of affordable housing initiatives. (Fannie Mae Selling Notice 07-30-2009)
|Fannie Mae Additional Updates to Home Affordable Refinance Options 125s (Effective August 3, 2009)
Nice that Fannie opened up the 125 LTV option to all lenders, not just those that are the current servicer of the loan as the program was originally rolled out. Now is a great time to go back to those who you were not able to help earlier in the year. The ability to go to 125 LTV will help many who we were not able to help the first time around. (Fannie Mae Announcement 09-26: Updates to Home Affordable Refinance)
|Fannie DU 7.1 September Update Release Notes (Updating DU System 9-19-09)
Not much new here, we have covered most of this in Mortgage Currentcy already as the announcements have been made. Finally DU is catching up with all of the changes. If I have said it once, I have said it a million times to my lenders, read your DU findings! Seriously, most lenders stop at Approve/Eligible and figure they are done. (Fannie DU 7.1 - September 2009 Update)
|Fannie Updates Forms - 1003, 1008 and adds New Forms 3747 and 3748 (Effective January 1, 2010)
The biggest news here is that the new form incorporates Loan Originator and Company ID Numbers in anticipation of the Nationwide Mortgage Licensing System & Registry (NMLS) – Effective January 1, 2010. (Fannie Mae Announcements 09-21: Form Updates - Revisions to Forms 1003 and 1008, and New Forms 3747 and 3748)
|Fannie Home Affordable Refinance Announces 125% LTV Option – Effective August 1, 2009
Big news is the ability to do a Refi Plus to 125 LTV. Remember Refi Plus deals are limited to the current servicer of the loan. So unless you service the loan currently this option will not help you. In addition, the ability to switch from a DU Refi Plus back to a Refi Plus loan is limited to the current servicer of the loan. (Fannie Mae Announcements 09-23 and 09-20)
|Fannie Updates Home Affordable (DU Refi & Refi Plus) Guidance and Pricing (Effective July 1, 2009)
Finally, you get some substantial rep and warrant relief on top of the documentation relief. DU Refi Plus loans are a one-time shot. Refi Plus loans are not limited to only one refinance. By using Refi Plus, the process is quicker, less painful to the borrower and beneficial to both the borrower and lender should rates drop again. (Fannie Mae Announcements 09-13 and 09-15)
|Fannie & Freddie - High Balance - Super Conforming - (Includes - Freddie vs. Fannie Reference Chart)
Reference Chart of some of the differences between Fannie and Freddie when it comes to Super Conforming loans. In most cases Freddie tends to be more flexible in not only cash-out refinance LTV’s, but LTV’s in general.
|Fannie Updates Home Affordable Refinance Q&A (Updated 5-29-2009)
Fannie recently updated its Home Affordable Refinance with 78 FAQ’s. We wanted to highlight 16 of the Q&A that we felt was worth reiterating. To assist you, we have provided the question number from Fannie and a quick summary of the question and answer. (Fannie Mae Home Affordable FAQ, dated 5-29-09)
|Fannie Clarifies Several Important Changes to Guidelines - Underwriting, Eligibility & Property-Related Updates (Effective 6-8-2009) [Read FAQ FM 1109 relating to Announcement 09-19]
We took this 9-page announcement and broke it down to the real world. The devil is in the details and a minor difference could cost you your approval--so many minor little changes that can trip you up. Date of documents, the “highly recommended” (translation = you better do it or else!) 4506-T, Verbal VOE (seriously they label it Verbal VOE but then say you can get a written VOE within 10 day’s in lieu of a Verbal VOE, ugh!!), changes to how you calculate reserves, etc. At the end of the day, you better get to know all of these changes so you can head off problems with loans that could have been avoided. (Fannie Mae Announcement 09-19: Miscellaneous Underwriting, Eligibility, and Property-Related Updates)
|Fannie Updates DU Refi Plus Rules to Include More Options
I know a lot of lenders automatically assume that if the loan has MI they cannot do a refinance for the borrower unless they are a current servicer. That is not necessarily true. You can indeed do the loan for the borrower. The MI company that appears to be modifying the existing certificate for a new lender is Genworth. (Fannie Mae DO/DU Release Notes: April 20, 2009 )
|Fannie Mae’s New Selling Guide: The Good, Bad & The Ugly! (Effective April 1, 2009)
An improvement—but it’s still the same information organized in a different way. Difficult to read and even harder to interpret. Changes are not made on a timely basis and often times, they link to other sections of the guide so you feel like you are on a wild goose chase. If you can’t sleep at night, print all 1,126 pages and you’ll be amazed what it will do for your insomnia. (Fannie Mae Announcement 09-06: New Selling Guide)
|Fannie Updates Credit Score and Non Traditional Credit Guide – Announcement 09-12 (Effective August 1, 2009)
Enough already! I honestly am not sure that Fannie Mae\'s goal is to help achieve homeownership as much as it is to discourage it. It hurts the kid who saved 20% down, has lived with mom and dad and now wants to buy a home but doesn\'t have a credit history because he has been responsible and paid cash for everything. Just another way Fannie increases the cost of homeownership. (Fannie Mae Announcement 09-12: Updates to Credit Score Requirements and Nontraditional Credit Report Requirements)
|Fannie Mae Mortgage Loan Data Requirements for SAFE Act - Announcement 09-11 (Effective January 1, 2010)
This is an important piece of legislation headed our way. LOs and appraisers will be nothing more than a number. SAFE goes into effect 8-01-09 and new fields will be added to the 1003 on 1-1-10. You and your loans can now be tracked. Read SAFE Act article here.
|Fannie Raises High Balance Loan Limits & Minimum Credit Scores - Fannie High-Balance LTV & Credit Score Chart Included (Effective March 30, 2009)
It’s about time--borrowers who were previously eligible under the temporary higher loan limits in 2008 will now be eligible again. Take a look at the loans you closed in 2008 that would benefit from expanded loan limits. Link provided to the Loan Limit Geocoder to assist in determining the maximum loan amount available for a specific property. (Fannie Mae Announcement 09-08 - Fannie Temporary High-Cost Area Loan Limits & Revised Eligibility Requirements for High-Balance Mortgage Loans)
|Fannie Mae Project Eligibility Review Service (PERS) Launched for Condo/Project Approvals. Project Submission Forms Included (Effective January 15, 2009)
Fannie has brought back PERS—it’s a way to determine IF a new—or newly converted—condo project even qualifies in the first place. While CPM™ is still around, condos in Florida MUST used PERS…no exceptions. The real benefit? LTV’s—up to 97% OO! E-Fannie Mae Notice - March 2009 Fannie Announcement 08-34: Project Review Service & Changes to Condo and Co-Op Project Policies Fannie Project Review Summary FAQs
|Fannie Releases New Selling Guide (Effective April 1, 2009)
So Fannie puts out a new selling guide meant to make life easier. Seriously, you have to wonder how they thought it makes the process easier—now you have to FIND the individual announcements in the guide! But you can still count on Mortgage Currentcy to keep it simple and to the point. (Fannie Mae Announcement 09-06 – New Selling Guide)
|Fannie Updates Selling Guide Rules for Government Loans, Lease-Purchase Option for Non-Profits and Community Living Loans (Effective 4-1-09)
If you are selling government loans to Fannie—then you need to read this. If not, don’t waste you time! Fannie establishes 580 as a minimum FHA credit score. Another biggie is the VA 25% guarantee of the ORIGINAL LOAN AMOUNT. Oh, and Construction/Perm rules have become more liberal. (Fannie Mae Announcement 09-09 – Product Updates: Government Mortgage Loans, Lease-Purchase Option, and Community Living Group Homes)
|Fannie Mae DO/DU Underwriter Release Notes & FAQs: Refi's, Appraisals, Condos, Feedback Messages - Updated!
Wow, even the “updates” have “updates”. Not all of the flexibility of DU Refi Plus will be reflected in the April update. With the May updates, DU will really help to make DU refi loans much easier. Won’t be updated until 4-4-09 AND 5-2-09 so you must do manually! (Desktop Underwriter Release Notes - March 4, 2009)
|Fannie Unveils New Refinance Options - Refi Plus and DU Refi Plus (Effective 4-1-09 to 6-10-2010)
Two distinct refi options covered in this one announcement — one for servicers and another for mortgage bankers and brokers who do not retain servicing! Lots going on here — Fannie to Fannie only, LTV’s, new LLPA’s, MI waivers or cert transfers, manual or DU underwriting, plus current streamline refi options are going away. (Read Freddie\'s refi version in this issue)! (Fannie Mae Announcement 09-04 - March 4, 2009)
|Fannie Mae Amends Rules to Home Valuation Code of Conduct (HVCC) Again! (Effective 5-1-09)
The HVCC is supposed to be implemented on May 1, 2009 and already Fannie is “revising” the “revised” code”. Loan Officer-- Have you thought about ordering Restricted Use Appraisals? Read about the benefits BEFORE your appraisal is ordered from an Appraisal Management Company! (Fannie Mae Announcement 09-01 - January 7, 2009)
|Fannie Mae Condo Project Reference Chart & Condo Project ManagerTM System - Fannie Condo Chart Included (Effective 3-1-09)
Confused about the difference between Fannie & Freddie Condo projects and who will accept what? Both agencies have made huge changes within the last few months! Download a Fannie Mae Condo Project Reference Chart! (Current as of March 2009) Compare it with the Freddie Condo Chart to see which one works better for you!
|Fannie Updates Investor & Second Home Policy; Defines Cash Reserve Requirements (Announcement 09-02, dated Feb. 6, 2009)
The big news here is “expanded” investment property guidelines--huge opportunity for investors. It is aimed at well-qualified investors. Watch the reserve requirements, as DU will not catch that for you. Fannie gave us more flexibility in the number of units, but also increased the reserve requirements for all investment properties. Mortgage Talking Points® flyer, Working with Real Estate Investors - Know the Rules!, includes these new changes! (Fannie Mae Announcement 09-02, dated February 6, 2009)
|HomePath for Fannie REO Properties - What a Deal!
Amazing what Fannie will do to sell their REO’s and flexibility when it comes to cleaning their own house. No MI. 10 properties. First 4—only 10% down. This is a negotiated product and not all lenders will have access to it. Real estate agents have to be approved to list Fannie REOs. Link to check out who’s approved in your area. (Negotiated Commitment)
|Fannie Versus Freddie: Handy Streamline Refi Comparison Quick Reference Guide
Review the new comparison chart we have provided and use it to expedite your approvals and close your loans quickly. Both Fannie and Freddie offer options that have no seasoning requirements. This can help should we see rate move down even further. Do NOT run DU on a streamline refinance. And yes, Freddie is much tougher than Fannie!
|Comparing Fannie & Freddie Qualifying Rules for Investment Properties - Including Mortgage Talking Points® Flyer "Working with Real Estate Investors - Know the Rules"
Investors are buying more properties then ever and it’s about time one of the agencies realized that investors could help with the housing crisis. Mortgage Talking Points® Flyer includes Fannie Announcement 09-02 (2-6-09) new guidelines. Fannie opened the doors for well- qualified investors to purchase property at reasonable terms. Show your real estate agents to get investors back in the game. (Freddie Mac - Fannie Mae Selling Guides)
|Fannie Revises Minimum Credit Scores (Government Loans), Debt to Income Ratios, Community Seconds and Seller/Builder Affiliations
There are 4 updates that you need to know about…the minimum credit score requirements for government loans: added guidance to maximum debt to income ratios for manually underwritten loans as well as Community Seconds and Seller/Builder Affiliation Rules. (Fannie Mae Announcement 08-35, December 18, 2008)
|Fannie Mae Revises Loan Level Price Adjustments Again - Download Fannie LLPA Matrix
Ok, enough already! Remember, all LLPA’s are cumulative. This could result in a substantial adjustment to your pricing. Before quoting a rate, a missed price adjustment can be a costly mistake. Freddie can be a better choice for some transactions. In October 2008 they did adjust some of their LLPA’s but did not change as many as FNMA. (Fannie Mae Announcement 2008-38, Fannie Mae Exhibit 19, Fannie Mae LLPA Matrix)
|Fannie Clarifies More Underwriting Issues with DU/UO 7.1 Release Notes & FAQs
Fannie was a little sneaky in making some of these changes in Release Notes and not in an official Announcement - like the Chapter 13 waiting period; the authorized user accounts and new "verbal verification" rules! But wait, there\'s more... (DODU 10-16-08 08 & DODU 11-3-08 08 DODU 12-08 )
|Fannie Mae MyCommunityMortgage® Refinance Best-Kept Secret!
Most LO’s think that MCM is only for purchases! Simply put, it’s one of the biggest loopholes in Fannie Mae’s guidelines and most loan officers don’t even know exists. It’s their refi option and you can get many more loans approved, with better rates, cheaper MI and no FICO score pricing adjustments. PLUS, it’s easier to get DU approvals.
|Fannie Mae Issues Home Valuation Code of Conduct FAQs
Both agencies have adopted the HVCC—Freddie sent out an email with a link to the “actual code” and Fannie sent out a Frequently Asked Questions Notice. Read the Freddie article for the down-and-dirty details, and read the FAQ’s—but keep in mind that Fannie does not always interpret them EXACTLY the same way as Freddie!
|Fannie Mae New Selling Guide Highlights - Download the Preview Version.
Yippee! Fannie finally figured out that it took 10 times longer to find specific guidelines on their site than it does on Freddie’s site. Sheesh…what took so long! There are so many fantabulous features you may actually like reading this stuff, but YOU CAN LITERALLY USE IT TO SAVE YOUR DEALS!! (Download the preview version of the 2009 Selling Guide.) (Fannie Mae Lender Letter 03-08)
|Fannie Establishes Additional Appraisal Requirements and New Appraisal Addendum (Form MC1004) - Mortgage Talking PointsTM Flyer Included
There’s more to this announcement than the new 1004MC form, like trends in values, supply & demand, marketing times, prior listings, new construction comps, etc. Understanding how the appraiser reached his/her conclusions is critical in explaining them to your clients and real estate agents. Mortgage Talking PointsTM Flyer explaining how it will affect your agents and builders! (Fannie Mae Announcement 08-30, November 14, 2008)
|Home Buyer Education for MyCommunityMortgage® Borrowers! MCM® First-Time and Non-Traditional Credit Homebuyer Counseling. (Links to Resources Included.)
Since this applies to applications dated on January 1, 2009 or after, you have some time to get yourself prepared. Create a list of approved counseling services in your area. Find out who is doing the course on-line. And remember, if you have clients whose credit history is solely comprised of non-traditional credit, they MUST go to counseling, regardless of the type of loan program. (Fannie Mae Announcement 08-25: Homebuyer Education and Counseling)
|Fannie Mae Publishes a Summary and FAQs to Previous Announcements
Wow, Fannie published a "summary" with a ton of questions from loan officers and underwriters from 3 of their most complicated announcements. Subscribers download FAQs, that clears up some of the confusion. (Fannie Mae Announcement 08-22, October 20, 2008: Miscellaneous Eligibility, Policy and Pricing Updates. Summary and Frequently Asked Questions (FAQs)
|Planned Fee Increase Cancelled
This information, while it announces no change, is still good news and can be a useful tool in demonstrating to your sources that you are always on the cutting edge of all updates. (Fannie Mae Announcement 08-24, October 2, 2008)
|Why Loan Officers May Want to Use the New Fannie Mae Risk Assessment Worksheet BEFORE Sent to DU?
Most loans are underwritten thru DU, BUT there has never been a fairly complete set of instructions in place for loans that are Manually Underwritten - that is until NOW! Why would you care? Because Fannie has also "interpreted" specific risk factors, including co-borrowers, liquid reserve and self-employed borrowers and how they now affect the overall risk of repayment. It\'s entirely updated with the new rules that aren\'t even reflected in the Selling Guide. In other words, this worksheet essentially analyzes a loan file the same way that DU does. It\'s a fantastic tool for those who want to look at where their loan stands before it\'s submitted to DU. (Fannie Mae Announcement 08-26, October 16, 2008 - Comprehensive Risk Assessment Approach to Manual Underwriting)
|Fannie Mae High Cost Loans - Phase Out of Temporary Jumbo to "Permanent" Loan Amount Status
Jumbo loans have NOT been eliminated! The maximum loan amount is reduced, but mostly, they\'ve been renamed: Fannie used to call them Jumbo Conforming but they are now called "High-Balance" Mortgage Loans. Freddie calls theirs "Super Conforming". (Sure would be nice if they\'d both use the same name.) Drop Dead of December 13th - DU Version 7.1 - DU is being updated to include "high-balance" rules as of December 13. As of the same date, they are taking away the "jumbo" rules. Bottom line, my guess is that no lender will take a jumbo if it\'s not entered into DU, regardless of how fast you can close it. (Announcement 08-27 - Permanent High Cost Area Loan Limits (10-16-08)
|Potpourri from Fannie Mae - Further Reduced LTVs; Investment Property Limitations; Maximum Number of Loans; Interest Only Loan - Now DU
Fannie\'s not looking at application or closing dates; instead, they gave the lenders barely enough time to clear out their pipelines. Any loan with the old rules must be originated, closed, and purchased by Fannie before 12-1-08, or Fannie won\'t take it. And that\'s unspeakable. So (most) everything is effective now! Thank goodness there are a few exceptions, which I\'ll point out. (Announcement 08-22, September 5, 2008)
|Rules on Buying Another Home Without Selling Current Residence (Reference Chart & Mortgage Talking PointsTM Flyer Included)
I decided it would be much easier to deal with all of the info from both Announcements if they were in one place. So Ta-Da! I have created a Buying a Home without Selling Current Residence Reference Chart for you and a Mortgage Talking PointsTM Flyer for your Realtors®/Builders/Sellers. (Fannie Mae Announcement 08-22, September 5, 2008)
|Fannie Mae's Convoluted Refinance Rules for Seasoning, Title and "Continuity of Obligation" - Reference Chart Included
Just looking at this stuff is scary, ladies and gentlemen. Fannie has seen all of the tricks in the book. As a result, Fannie has come up with some fairly complex rules. They\'re attempting to allow the legitimate transactions, yet ensure that a purchase is a purchase and a no cash-out is a no cash-out. And surprisingly, I think they did a pretty good job! (Announcement 08-22, September 5, 2008)
|Seller-Seconds with 5% Down and No MI - Qualify More Buyers!
This one thrills me to no end! You can save deals! You can’t do it every time because the seller or builder must have equity in the property – but if they do – it can be great for them, also! It not only helps sell the house, they end up with an excellent return on their “secured” investment, and a nice tidy income stream.
|Fannie Postpones Loan-Level Price Adjustments - It's a Good Thing!
Okay, technically it matters. The effective date refers to the date that Fannie Mae purchases the loan from the lender. There wasn’t nearly enough notice given to the lenders and they were coming unglued. After all, it would have cost them big time. The original date really was chicken on Fannie’s part, I’m glad they changed it. (Fannie Mae Announcement 08-18R (Reissue); August 11, 2008)
|Fannie Increases LLPA Fees Again; Adverse Market Fee Doubles
Geeze! I can\'t believe they\'re doing this again. Truthfully, I don\'t "get" the Adverse Market Fee - which is now a full half percent on EVERY loan. Why don\'t they just increase their rate to make up for it? It must sound better politically if Fannie (and Freddie) can quote lower rates for the media, yet still end up with a higher yield. And don\'t let the October 1st date fool you, either. (Fannie Mae Announcement 08-18, August 4, 2008)
|Fannie Mae, Freddie Mac, Maximum Loan Limits, 2009 and Beyond; End of Year Decrease - Mortgage Talking PointsTM Flyer/Email Notice Included
Are Limits Permanent? - I also keep hearing that the new limits are permanent. What\'s permanent is the methodology and percentages of the loan amount calculations. Also, thank goodness, the floor and the ceiling will never go down. Act Now - Send a written announcement to residents of the counties that you do business in that are currently at the $729,750. Include something like: "After 12-31-08, the maximum conforming mortgage loan in your area goes down and it can affect you personally! Act now to avoid higher mortgage rates!!" (H.R.3221.ENR Sec.1124.Conforming Loan Limits)
|Miscellaneous Updates: Interest-Only ARMs; New Median Income for MyCommunityMortgages, 1008, Underwriting Transmittal
Nothing huge here, but it\'s worth knowing and reading the few interesting habits that will affect your loans. Miscellaneous: Underwriting IO; Median Income for MCM; New 1008(Fannie Mae Announcement 08-13, June 13, 2008)
|Prior Foreclosure, Short Sale, Bankruptcy, Deed-in-Lieu - No longer are Fannie Mae Short Sales the same as Foreclosures!
Sure it\'s a lot more complicated than it used to be, but it\'s also SO much more equitable. EVERY other agency treats a short sale, a deed-in-lieu, and a foreclosure all exactly the same, and they\'re NOT! Read how Fannie\'s new rules make a huge difference, especially in today\'s market. Revised! Prior Foreclosure, Short Sale, Deed-in-Lieu, Bankruptcy Rules(Fannie Mae Announcement 08-13, June 13, 2008)
|New Rules for Borrowers Who Don't Sell Current Home before Closing; Includes Pending Sale, Turning Residence into Second Home or Rental Property (Can you count the rental income?)
What does any red-blooded American do when they can\'t sell their current home and they\'re ready to close on a new one? Rent it, of course! No more. Unless the borrowers have a 30% equity position, they must qualify for both payments. AND, they need substantial cash reserves, an authentic lease, and to validate the legitimacy of the lease - they need proof of security deposit from the new tenant. Read update on 2nd homes and what Freddie Mac says about it! Purchasing a New House without Selling Current Residence(Fannie Mae Announcement 08-13, June 13, 2008)
|DO/DU Update: DU Underwrites Jumbo Conforming - More Approvals; Declining Market Message Gone; Maximum LTV per National Down Payment Policy
Yes! DO/DU underwriting translates to more jumbo loan approvals! What\'s even better is that Fannie\'s pricing has also improved over time. It\'s ironic that the closer we move to the jumbo-conforming expiration date (12-31-08), the more viable the product becomes. DU Underwrites Jumbo-Conforming, More Approvals(DO/DU Release Notes, June 16, 2008)
|Expanded Fannie Mae Jumbos - With Freddie Jumbo Comparisons
It\'s about time that Fannie finally came up to the plate with their jumbo products! We all know that the details can make or break a loan, so I\'m doing a lot of Fannie/Freddie comparisons. I\'m surprised by how many differences there are between the two agencies. Use the differences to your advantage and go get\'em while you can! But beware! LP approvals do not override Freddie\'s Jumbo eligibility requirements, which include credit scores and DTIs. Expanded Fannie Mae Jumbos(Fannie Mae Announcement 08-11, May 16, 2008)
|Declining Value Policy Withdrawn - Replaced by "National Down Payment Policy"
As everyone knows by now, the "withdrawal" of the declining market policy is a joke considering the MI companies are not about to withdraw their policies. But as of this writing, there is one MI company that will do 95% LTVs in declining areas for loans that are submitted under a Fannie or Freddie 97% program. Declining Market Withdrawn, Reduced LTVs?(Fannie Mae Announcement 08-10, May 16, 2008)
|DU/DO Changes Everything, Oh My! Revised Underwriting & Program Guidelines!
Big changes and a mandatory read! Part II is a major Fannie Mae underwriting and loan eligibility overhaul. Everything becomes effective in conjunction with a new version of DU, Version 7.0, which will automatically be implemented over the weekend of May 31st. There\'s always Freddie Mac to fall back on. Freddie has reduced LTVs and tightened a lot of their eligibility requirements, yet most of their underwriting guidelines haven\'t changed. If you can\'t get something through DU, always try LP!
|Conforming Jumbo Rules Slightly Relaxed & Clarified
Fannie gives us one minor concession with their limited cash-out product, and they provide a few clarifications. What about everything else, like increasing the LTVs or adding a cash-out product? Amazingly, I STILL prefer Fannie to Freddie overall. Keep reading.
|Help for Clients Whose Mortgage is Past Due
This may not help any of you to originate a new loan, but I know that many of you are working with or have past clients who have become delinquent on their mortgage. The biggest limitation is that this is for Fannie Mae loans only, and it must be initiated by the Servicer. I’ve attached a HomeSaver Advance Fact Sheet for you to download and give to clients who are past due.
|Updates on Credit Underwriting Rules: Credit Scores; Foreclosures; Mortgage Delinquencies; Authorized Credit Users; Non-Traditional Credit, More
All of the revisions are in conjunction with a new version of DO/DU, Version 7.0, which is being implemented the weekend of May 31, 2008. In this announcement, Fannie Mae is trying to bring manual and DO/DU underwriting in line with each other. (What a novel idea!) There is so much - and since nothing is effective until 6-1-08, I\'m making this a 2-part article.
|Fee Adjustments (Again!) - New Pricing for LTV, FICO, Cash-out, 2-to-4 Units
As far as the actual fee adjustments are concerned, they\'re almost exactly the same as the fee changes that Freddie Mac just made. It\'s the cash-outs and low credit scores that are hurting the most. Of course. And the lenders are already implementing them.
|Conforming Jumbo Guidelines - Compare to Freddie and FHA
Everyone has been all up in arms upon finding out that loan limits in their particular area didn\'t go up. It just doesn\'t make sense. Take Las Vegas, for instance, which stayed at $417,000. What\'s the deal with the loan limits!? I know that your Realtors want to know this! The answer is that HUD got involved.
|Declining Market Exceptions and Clarifications
If you have a 95% LTV in a declining market, you don\'t have to reduce the LTV!! A few positive revisions for a change! But before I cover them, I will address the burning question: How does Fannie Mae, or any of the lenders, determine whether or not the property is in a declining market?
|Jumbo Conforming Guidelines are Introduced
|Credit Repair - "Authorized Users" No Longer Improve Credit Ratings!
|Condominium Warranties, CMP Projects, Condo Budgets, HOA Fees, Legal Requirements
|Private Road Maintenance Agreements NOT Always Required
|Acceptable Sources for Down Payment from IDA Accounts, Non-Profits, Matching Funds
|Streamlined Refinances - No Qualifying, No Verifying, Cash Out Available
|Beware - All Who View Credit Reports are Identified, Credit Report Charges Increase
|Trust, Flood Insurance, Canceling MI, Escrow for weather or other reasons, Short form appraisals
|Third Party Incentives, Financing & Sales Concessions, Buydowns/DAP
|No Cash Back on Purchases - New Refinance Rules: Who must be on title
|How to Adjust Your Loan Limits in a Declining Market - Effective January 15, 2008.
|Added .25% to Offset Adverse Marketing Conditions - Effective March 1, 2008.