| Fannie Issues FAQ Updates to Announcement 09-19 — January 2010
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
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| Fannie Rejects FHA-Approved Condos and Improves the Refi Plus Products (Effective Immediately) and February 1, 2010 – Announcement 2009-37 — January 2010
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)
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| Fannie Reorganizes the Selling Guide — November 2009
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)
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| Fannie Mae Loan Data Requirements – Required Use of New 1003 - Changed to July 1, 2010 — November 2009
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?
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| Fannie Mae Provides Lender Tips for the 4506-T and FAQ for Misc Underwriting, Eligibility and Property Updates – Announcement 09-19 & FAQs — November 2009
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)
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| Fannie Mae Lender Letter 2009-07 Energy Loan Tax Assessment Programs 9-18-09 — November 2009
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)
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| Fannie Mae DU 8.0 Version Release Notes Packs Quite a Punch (Effective Weekend of December 12, 2009) — November 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.
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| 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] — October 2009
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)
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| 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") — September 2009
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).
Supporting Resources:
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| Fannie Mae Construction-to-Perm Financing Eliminated – Announcement 09-28 (Effective 11-30-09) — September 2009
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)
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| Fannie Mae Higher Priced Loans - Clarification on Qualifying, Point & Fee Limits and HMDA Reporting! (Includes Reg Z High Priced Mortgage Determination Checklist) — August 2009
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. )
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| Fannie Mae Announces New 2009 Area Median Income Limits (Effective 9-1-09) — August 2009
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)
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| Fannie Mae Additional Updates to Home Affordable Refinance Options 125s (Effective August 3, 2009) — August 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)
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| Fannie DU 7.1 September Update Release Notes (Updating DU System 9-19-09) — August 2009
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)
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| Fannie Updates Forms - 1003, 1008 and adds New Forms 3747 and 3748 (Effective January 1, 2010) — July 2009
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)
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| Fannie Home Affordable Refinance Announces 125% LTV Option – Effective August 1, 2009 — July 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)
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| Fannie Updates Home Affordable (DU Refi & Refi Plus) Guidance and Pricing (Effective July 1, 2009) — June 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)
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| Fannie & Freddie - High Balance - Super Conforming - (Includes - Freddie vs. Fannie Reference Chart) — June 2009
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.
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| Fannie Updates Home Affordable Refinance Q&A (Updated 5-29-2009) — June 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)
Supporting Resources:
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| 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] — June 2009
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)
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| Fannie Updates DU Refi Plus Rules to Include More Options — May 2009
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 )
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| Fannie Mae’s New Selling Guide: The Good, Bad & The Ugly! (Effective April 1, 2009) — May 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)
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| Fannie Updates Credit Score and Non Traditional Credit Guide – Announcement 09-12 (Effective August 1, 2009) — May 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)
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| Fannie Mae Mortgage Loan Data Requirements for SAFE Act - Announcement 09-11 (Effective January 1, 2010) — May 2009
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.
Supporting Resources:
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| Fannie Raises High Balance Loan Limits & Minimum Credit Scores - Fannie High-Balance LTV & Credit Score Chart Included (Effective March 30, 2009) — April 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)
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| Fannie Mae Project Eligibility Review Service (PERS) Launched for Condo/Project Approvals. Project Submission Forms Included (Effective January 15, 2009) — April 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
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| Fannie Releases New Selling Guide (Effective April 1, 2009) — April 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)
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| Fannie Updates Selling Guide Rules for Government Loans, Lease-Purchase Option for Non-Profits and Community Living Loans (Effective 4-1-09) — April 2009
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)
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| Fannie Mae DO/DU Underwriter Release Notes & FAQs: Refi's, Appraisals, Condos, Feedback Messages - Updated! — March 2009
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)
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| Fannie Unveils New Refinance Options - Refi Plus and DU Refi Plus (Effective 4-1-09 to 6-10-2010) — March 2009
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)
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| Fannie Mae Amends Rules to Home Valuation Code of Conduct (HVCC) Again! (Effective 5-1-09) — March 2009
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)
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| Fannie Mae Condo Project Reference Chart & Condo Project ManagerTM System - Fannie Condo Chart Included (Effective 3-1-09) — March 2009
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!
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| Fannie Updates Investor & Second Home Policy; Defines Cash Reserve Requirements (Announcement 09-02, dated Feb. 6, 2009) — February 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)
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| HomePath for Fannie REO Properties - What a Deal! — February 2009
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)
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| Fannie Versus Freddie: Handy Streamline Refi Comparison Quick Reference Guide — February 2009
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!
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| Comparing Fannie & Freddie Qualifying Rules for Investment Properties - Including Mortgage Talking Points® Flyer "Working with Real Estate Investors - Know the Rules" — February 2009
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)
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| Fannie Revises Minimum Credit Scores (Government Loans), Debt to Income Ratios, Community Seconds and Seller/Builder Affiliations — January 2009
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)
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| Fannie Mae Revises Loan Level Price Adjustments Again - Download Fannie LLPA Matrix — January 2009
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)
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| Fannie Clarifies More Underwriting Issues with DU/UO 7.1 Release Notes & FAQs — January 2009
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 )
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| Fannie Mae MyCommunityMortgage® Refinance Best-Kept Secret! — January 2009
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.
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| Fannie Mae Issues Home Valuation Code of Conduct FAQs — January 2009
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!
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| Fannie Mae New Selling Guide Highlights - Download the Preview Version. — December 2008
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)
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| Fannie Establishes Additional Appraisal Requirements and New Appraisal Addendum (Form MC1004) - Mortgage Talking PointsTM Flyer Included — December 2008
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)
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| Home Buyer Education for MyCommunityMortgage® Borrowers! MCM® First-Time and Non-Traditional Credit Homebuyer Counseling. (Links to Resources Included.) — November 2008
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)
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| Fannie Mae Publishes a Summary and FAQs to Previous Announcements — November 2008
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)
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| Planned Fee Increase Cancelled — November 2008
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)
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| Why Loan Officers May Want to Use the New Fannie Mae Risk Assessment Worksheet BEFORE Sent to DU? — November 2008
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)
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| Fannie Mae High Cost Loans - Phase Out of Temporary Jumbo to "Permanent" Loan Amount Status — November 2008
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)
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| Potpourri from Fannie Mae - Further Reduced LTVs; Investment Property Limitations; Maximum Number of Loans; Interest Only Loan - Now DU — October 2008
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)
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| Rules on Buying Another Home Without Selling Current Residence (Reference Chart & Mortgage Talking PointsTM Flyer Included) — October 2008
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)
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| Fannie Mae's Convoluted Refinance Rules for Seasoning, Title and "Continuity of Obligation" - Reference Chart Included — October 2008
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)
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| Seller-Seconds with 5% Down and No MI - Qualify More Buyers! — September 2008
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.
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| Fannie Postpones Loan-Level Price Adjustments - It's a Good Thing! — September 2008
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)
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| Fannie Increases LLPA Fees Again; Adverse Market Fee Doubles — August 2008
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)
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| Fannie Mae, Freddie Mac, Maximum Loan Limits, 2009 and Beyond; End of Year Decrease - Mortgage Talking PointsTM Flyer/Email Notice Included — August 2008
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)
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| Miscellaneous Updates: Interest-Only ARMs; New Median Income for MyCommunityMortgages, 1008, Underwriting Transmittal — July 2008
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)
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| Prior Foreclosure, Short Sale, Bankruptcy, Deed-in-Lieu - No longer are Fannie Mae Short Sales the same as Foreclosures! — July 2008
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)
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| 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?) — July 2008
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)
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| DO/DU Update: DU Underwrites Jumbo Conforming - More Approvals; Declining Market Message Gone; Maximum LTV per National Down Payment Policy — July 2008
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)
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| Expanded Fannie Mae Jumbos - With Freddie Jumbo Comparisons — June 2008
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)
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| Declining Value Policy Withdrawn - Replaced by "National Down Payment Policy" — June 2008
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)
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| DU/DO Changes Everything, Oh My! Revised Underwriting & Program Guidelines! — May 2008
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!
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| Conforming Jumbo Rules Slightly Relaxed & Clarified — May 2008
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.
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| Help for Clients Whose Mortgage is Past Due — May 2008
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.
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| Updates on Credit Underwriting Rules: Credit Scores; Foreclosures; Mortgage Delinquencies; Authorized Credit Users; Non-Traditional Credit, More — April 2008
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.
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| Fee Adjustments (Again!) - New Pricing for LTV, FICO, Cash-out, 2-to-4 Units — April 2008
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.
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| Conforming Jumbo Guidelines - Compare to Freddie and FHA — April 2008
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.
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| Declining Market Exceptions and Clarifications — April 2008
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?
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| Jumbo Conforming Guidelines are Introduced — March 2008
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| Credit Repair - "Authorized Users" No Longer Improve Credit Ratings! — March 2008
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| Condominium Warranties, CMP Projects, Condo Budgets, HOA Fees, Legal Requirements — March 2008
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| Private Road Maintenance Agreements NOT Always Required — March 2008
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| Acceptable Sources for Down Payment from IDA Accounts, Non-Profits, Matching Funds — March 2008
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| Streamlined Refinances - No Qualifying, No Verifying, Cash Out Available — February 2008
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| Beware - All Who View Credit Reports are Identified, Credit Report Charges Increase — February 2008
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| Trust, Flood Insurance, Canceling MI, Escrow for weather or other reasons, Short form appraisals — January 2008
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| Third Party Incentives, Financing & Sales Concessions, Buydowns/DAP — January 2008
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| No Cash Back on Purchases - New Refinance Rules: Who must be on title — January 2008
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| How to Adjust Your Loan Limits in a Declining Market - Effective January 15, 2008. — January 2008
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| Added .25% to Offset Adverse Marketing Conditions - Effective March 1, 2008. — January 2008
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