November 2017 Question and Answer

View The Latest Rules Issue


Compliance - HMDA: We don’t presently collect GMI (Government Monitoring Information) for HELOC or Closed End Equity Loan applications. Will this change January 1, 2018?

Fannie Mae/Freddie in Brief

Fannie Mae vs. Freddie Mac - Maximum DTI: Since Fannie now allows up to a 50% DTI, is Freddie allowing that too?


Fannie Mae and Freddie Mac - Cash-Out Requirements: Does Fannie or Freddie require a letter of explanation for a cash-out in a refinance?

Fannie Mae

Fannie Mae - Duplex Purchase - Rental Income: Can the rental income on a duplex be counted as income in order for the purchaser to qualify for the loan?


Fannie Mae - Second Home Requirements: Can a property be classified as a second home if rented 355 days and used for personal use for 10 days per year?

Freddie Mac

Freddie Mac - Multi-Unit - Home Possible: Is a “notice to vacate” letter required when a borrower is purchasing a 2-unit Home Possible home, and both units are rented month-to-month?


FHA - Using Rental Income on Departing Residence: What are the guidelines and documentation requirements for using new rental income from a departing residence in order to qualify for the new home?


FHA - 2-Unit-Rental Income: Can the borrower use the rental income for the non-owner occupied unit to qualify for the purchase, if the unit is currently not under lease?


FHA - Second Appraisal Requirements - Flipped Properties: Is a 2nd appraisal required between 91-120 days after a flip when the price is 100% higher than the previous owner’s acquisition cost? [MC Comparison Chart-All Agencies Property Flipping]

Supporting Resources:


FHA - Gift Funds - Documentation Requirements: Does FHA require us to document that a check cleared from a donor’s account when the borrower has received the gift in their bank account and is documented as cleared? [MC Gift Funds-Gift of Equity-All Agencies Charts AND MC MTP-Who Can Give a Gift-PLUS-The Paper Trail-Rules for Verifying Gift Funds on FHA Loans.]

Supporting Resources:


FHA - 203(h) Program-Manufactured Homes: Will FHA allow manufactured homes under the FHA 203(h) disaster relief program?


FHA - FHA 203(h) Disaster Program: Do you have any reference materials about how we can assist FHA borrowers in disaster areas with the FHA 203(h) program? [Includes New MTP™, FHA 203(H) Disaster Relief Program]

Supporting Resources:


VA - ECOA Compliance - Name on Mortgage: The underwriter is requiring that the borrower take title to the property in the exact name as the DD214; is that a VA Requirement?


VA - Widow Rights to Refinance: Can a widow of a VA veteran who was not on the mortgage refinance the mortgage into their name?