August 2017 Question and Answer

View The Latest Rules Issue


Compliance - Follow Up on Notice of Loan Action/Adverse Action: If a Notice of Loan Action is sent to a pre-qualified borrower within 30 days, does ECOA require any sort of follow-up?

Fannie Mae/Freddie in Brief

Fannie and Freddie - Non-U.S. Citizen Borrower Requirements: I have a client that is an E-2 visa holder and wants to buy a home. Can they get a conventional loan?

Fannie Mae

Fannie Mae - Real Estate Commission as Down Payment: If a Realtor is purchasing a home, can their real estate commission be used towards their down payment on a conventional loan? [Includes Chart - Interested Party Contribution Rules - FHA/VA/USDA/Conventional]


Fannie Mae - Divorce and Cash Out: A couple is divorcing; one is quit claiming “off” the property and the other is quit claiming “onto” the property. Can the one being quit claimed “on” do a cash-out refinance?


Fannie Mae - Borrower Funds for Down Payment: Can a client use a personal loan from a family member as a down payment? [Includes Chart - Fannie Mae Source of Funds Chart]


FHA - Flipping Rules: A borrower purchased a home from an investor that picked up bulk properties in an auction. The investor has owned the property for only 5 days. Can I use FHA financing? [Includes Mortgage Talking Points™ flyer, FHA Property Flipping Rules, Restrictions & Exceptions]


FHA - Non-Occupying Borrower: Can a person have more than one FHA loan as a non-occupying co-borrower, if neither is a primary residence?


FHA - Cash-Out/Equity from Other Property for Down Payment: Can a borrower take cash out of a conventional financed property to get the down payment for an FHA loan for a primary residence?


FHA - Judgment Not on Credit Report: A QC check picked up a judgment on my borrower that did not show up on the credit report. How did this happen?


FHA - Establishing Familial Relationship for Gift Funds: My borrower received a gift for an FHA loan from a friend of 50 years; the underwriter says no, and that they must be related! [Includes Chart - FHA - Gift Funds Donors and Documentation]


VA - Collection of Appraisal Fees: How can we collect for an appraisal on a VA loan?