fannie mae: FNMA announced DU adjustments. Higher risk buyers may be affected.
- 06/05/19 12:40 PM
Back in March FHA announced they would be adjusting underwriting making it more difficult in certain situations to get an approval. (you can read about that here: https://activerain.com/droplet/5j25 ) Just today we we received a "Lender Letter" from Fannie Mae (LL2019-06) with similar changes after review of loan performance. We anticipate we will see more negative Desktop Underwriting (DU) findings when this goes into effect July 20th. While we cant be 100% sure, we anticipate "ineligible" DU findings when there are multiple high risk factors. For example: Higher DTI’s combined with higher payment shock. Higher payment shock combined with a lack of savings. Lower FICO combined with … (0 comments)
While each of these bullet points are a topic unto themselves, I though it would be important to touch upon the positive changes we have seen over the past year that have made it easier to be approved for a mortgage. We have seen the reversal of some guidelines originally implemented during the financial crisis. With property values and loan performance at more stable levels, the “over the top” requirements as a result of the crisis are being re-evaluated. FannieMae is leading the way with Freddie closely following and GNMA lagging behind a bit:
Student Loan Debt: ¨ Income Based repayment is OK, even … (2 comments)
fannie mae: FNMA & FHLMC Limits Increase for 2018
- 11/29/17 09:15 AM
We have some more good news from Fannie and Freddie. Both have increased their loan limits significantly for 2018, The second year in a row after sitting stagnant for almost 10 years. This is a clear sign that housing prices have increase across the nation. The general loan limit for 2018 is up to $453,100 for a single family home which is a big step up from 2017's $424,100. Even better news is the high cost limit is up as well, just keep in mind that not all areas are eligible for the "high cost" figure. while most of NJ does fit into the high … (0 comments)
FNMA has announced the discontinuance of the HomePath and HomePath Renovation products. Any FNMA owned property, wishing to use the current enhancements such as no MI and no appraisal, must have the contract of sale executed on or before October 6, 2014. All loans with a fully executed contract dated on or before October 6, 2014 can use the existing features, although the loan will need to close sometime in January/February 2015 (final date to be determined). The HomePath Program also allows for 10% down investment property with NO PMI. This will also go away leaving only the … (2 comments)
fannie mae: FNMA is Requiring additional Insurance on Most Condos
- 06/05/09 05:06 AM
This is a bit of old news that most are NOT aware of is new insurance requirements for condo projects The end of 2008 FNMA came out with Announcement 2008-34. which touched on many condo issues. The one that will potentially affect ALL of us that sell or finance condominiums is: (straight from the announcement) Hazard Insurance for Units in Attached Condominium Projects Including 2-4 Unit Projects
The Selling Guide, Part XII, Chapter 5, Insurance Requirements require that lenders verify that hazard insurance for all condominium projects with attached units, including two- to four- unit projects, covers fixtures, equipment, and … (5 comments)
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