Welcome to Scribd. Sign in or start your free trial to enjoy unlimited e-books, audiobooks & documents.Find out more
Download
Standard view
Full view
of .
Look up keyword
Like this
2Activity
0 of .
Results for:
No results containing your search query
P. 1
Fannie Mae Desktop Originator/Underwriter Release Notes Update

Fannie Mae Desktop Originator/Underwriter Release Notes Update

Ratings: (0)|Views: 1,283|Likes:
Published by AccessLending
Fannie Mae release jan 3, 2012 from https://www.efanniemae.com/sf/guides/duguides/pdf/current/rndodu83marupd.pdf
Fannie Mae release jan 3, 2012 from https://www.efanniemae.com/sf/guides/duguides/pdf/current/rndodu83marupd.pdf

More info:

Categories:Types, Business/Law
Published by: AccessLending on Jan 05, 2012
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less

09/26/2014

pdf

text

original

 
 
 © 2012 Fannie Mae. Trademarks of Fannie Mae. 1.3.2012 1
Desktop Originator/Desktop Underwriter Release NotesDU Version 8.3 March Update
January 3, 2012
During the
weekend of March 17, 2012
, Fannie Mae will update Desktop Underwriter
 ® 
(DU
 ® 
)Version 8.3 to implement enhancements to DU Refi Plus
TM
.The updates included in this release will apply to DU Version 8.3 loan casefiles submitted orresubmitted to DU on or after the weekend of March 17, 2012.
DU Refi Plus Enhancements
As specified in Announcement SEL-2011-12, the HARP program has been extended. The followingenhancements will be made in DU to expand eligibility.
Updated Credit Risk Assessment 
With this release, modifications are being made to the credit risk assessment in order to give more borrowersthe ability to refinance using DU Refi Plus. As a result, the number of DU Refi Plus loan casefiles that receivean EA-III recommendation will be expanded.
Maximum LTV Ratios and Eligible Products 
As stated in Announcement SEL-2011-12, the maximum LTV ratio for DU Refi Plus loan casefiles is beingremoved for DU Refi Plus fixed-rate mortgages with terms up to 30 years, and there will continue to be nolimits on the CLTV or HCLTV ratios. The maximum LTV ratio limits for all occupancy and property types are:
No maximum LTV ratio for fixed-rate mortgage loan casefiles with terms up to 30 years.
A maximum LTV ratio of 105% for fixed-rate mortgage loan casefiles with terms greater than 30 years up to40 years, and for adjustable rate mortgage loan casefiles with initial fixed periods greater than or equal tofive years and terms up to 40 years (as permitted by the ARM plan).
NOTE:
 
Though DU will issue an eligible recommendation on DU Refi Plus fixed-rate mortgages with terms of 15 years or less and an LTV over 105% after March 17, 2012, those loans 
will not be eligible for delivery 
to Fannie Mae until 
June 1, 2012 
.
Borrower Benefit Requirement 
Announcement SEL-2011-12 updated the borrower benefit criteria to also include a reduction in the interestrate or a reduction in the loan amortization term as eligible borrower benefits. The DU message that remindslenders of the borrower benefit requirement will be updated to reflect this change.
DU Refi Plus Property Fieldwork Waiver 
The property risk assessment that determines eligibility for the DU Refi Plus property fieldwork waiver will beupdated to further increase the number of loan casefiles that are considered for the DU Refi Plus propertyfieldwork waiver.
 
 
 © 2012 Fannie Mae. Trademarks of Fannie Mae. 1.3.2012 2
The following transactions will be eligible for consideration for a DU Refi Plus property fieldwork waiver with theDU Version 8.3 March Update:
one- to four-unit properties;
primary residences, second homes, and investment properties;
loan casefiles with an LTV, CLTV, or HCLTV greater than 125%; and
attached and detached properties, units in a condominium or cooperative project, and manufacturedhomes.Loan casefiles that receive an Ineligible recommendation will continue to be ineligible for the DU Refi Plusproperty fieldwork waiver.
Project Review Requirements 
The project eligibility requirements for DU Refi Plus loan casefiles are being updated to reflect that in additionto the current representation and warranty that the property is not in a condominium hotel or motel, or acooperative hotel or motel, the lender must also represent and warrant that the property is not in a houseboatproject or a timeshare or segmented ownership project. As a result, the project review message that is issuedon DU Refi Plus loan casefiles secured by a property in a condominium, PUD, or cooperative project will beupdated to state that the lender must ensure the project meets the project review requirements for DU RefiPlus loan casefiles, as specified in the DU Refi Plus section of the Selling Guide. This updated requirement willbe added to the Selling Guide in the next monthly update.
Loan Level Price Adjustments (LLPAs) 
The cap applicable to the sum of the LLPAs and the Adverse Market Delivery Charge (AMDC) on HARPmortgage loans (loans secured by principal residences with LTV ratios greater than 80%) with amortizationterms less than or equal to 20 years was reduced to 0.00% with Announcement SEL-2011-12. As a result, theAMDC/LLPA message will not be issued by DU on these transactions.
Miscellaneous
The following changes, which are not specific to DU Refi Plus, will also be made with the DU Version 8.3March Update.
Cooperative properties with subordinate financing 
Announcement SEL-2011-05 clarified Fannie Mae’s long-standing policy that cooperative share loans that aresubject to subordinate financing are not eligible for delivery to Fannie Mae. DU will be updated to issue anIneligible recommendation on any cooperative loan casefile that is subject to subordinate financing. Thischange will not apply to DU Refi Plus loan casefiles.
Subject net cash flow 
The subject net cash flow message is being updated to provide clarity regarding the acceptable documentationthat may be used to obtain rental income amounts for the purpose of reporting gross monthly rent, as specifiedin Announcement SEL-2011-10.
Calculate and document the net cash flow on the subject property according to the Fannie Mae Selling Guide. If the borrower is being qualified with the entire payment, without benefit of rental income, rental income documentation for the subject property is not required for  qualifying purposes. However, the lender must report the monthly rent at delivery. Refer to the Fannie Mae Selling Guide for permissible sources for obtaining monthly rent for reporting purposes. 

Activity (2)

You've already reviewed this. Edit your review.
1 thousand reads
1 hundred reads

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->