desktop underwriter - advanced guidelines and updates · 2020. 6. 22. · selling guide ....
TRANSCRIPT
Understanding Desktop Underwriter®
- Advanced Guidelines and Updates
June 2020
©2020 Genworth Financial, Inc. All rights reserved.
AgendaIn Today’s Session
– Fannie Mae Website– Understanding Recommendations– Understanding DU® Risk Analysis– Credit, Income and Asset and Appraisal Messages– Data Integrity Reminders and Fannie Mae Updates– Genworth Website
1Understanding Desktop Underwriter Advanced
Today’s Session Addresses Only Conventional Loans
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https://singlefamily.fanniemae.com/news-events
Understanding Desktop Underwriter Advanced
Understanding Desktop Underwriter Advanced
https://singlefamily.fanniemae.com/selling-and-servicing-guide-forms-and-communications
Fannie Mae COVID-19 ResourcesFannie Mae Updates, FAQs, Fannie Mae’s COVID 19 webpage
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https://singlefamily.fanniemae.com/
Fannie Mae LL-2020-04 and LL-2020-03
Fannie Mae COVID-19 ResourcesFannie Mae Updates, FAQs, Fannie Mae’s COVID 19 webpage
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https://singlefamily.fanniemae.com/originating-underwriting#selling-promo
Fannie Mae LL-2020-04 and LL-2020-03
Fannie Mae appraisal policies are effective immediately and have been extended for applications taken on or before July 31, 2020
– Temporary appraisal requirement flexibilities: Allowing exterior-only inspection appraisal or desktop appraisals for certain transactions, see LL-2020-04 for full details
– Desktop appraisals: allowing for purchase transactions when an interior and exterior appraisal is not available
– Exterior only inspection appraisals: allowing for on purchases and limited cash-out refinance of Fannie Mae-owned loans
– Identification of a Fannie Mae loan: reminding lenders and Sellers about the Loan Lookup tool to identify a Fannie Mae-owned loan
– Desktop Underwriter messaging updated to identify when Fannie Mae owns an existing loan on a limited cash-out refinance
– Revisions to the scope of work, statements of assumptions and limited conditions, and appraiser’s certifications: requiring modified language to be used with exterior-only and desktop appraisals
– No changes to CTP loans
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Fannie Mae LL-2020-04
Fannie Mae LL-2020-04 and LL-2020-03
Fannie Mae appraisal policies are effective immediately and have been extended for applications taken on or before July 31, 2020:
– New Construction: where appraisals are “subject to completion per plans and specifications” and when properties are 100% complete but an interior and exterior inspection appraisal cannot be completed, permitting a desktop appraisal form* (applies to purchases only) see LL 2020-04 for list of acceptable forms based on property type
• For new construction where construction has not yet begun or is partially complete and the appraisal is made “subject to completion per plans and specifications” lenders must provide the appraiser with required documentation per LL 2020-04
• For new construction where the property is 100% and the appraisal report is completed “as is” the lender must provide the appraiser with required documentation per LL 2020-04
• Builder Certification form is required attesting that the information provided is true and correct. This certification must be maintained in the loan file.
• Completion of Construction Certification form is required for new construction when the appraisal was completed “subject to completion per plans and specifications” if the lender is unable to obtain a completed Appraisal Update and/or Completion Report (Form 1004D)
*Fannie Mae permits a desktop appraisal on the forms identified in LL-2020-04 but lenders must also adhere to the LTV ratio requirements in Temporary appraisal requirements flexibilities, including the requirement for second homes with LTVs greater than 85% require a traditional appraisal (Excluded CTP)
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Fannie Mae LL-2020-04
Fannie Mae LL-2020-04 and LL-2020-03
Fannie Mae appraisal policies are effective immediately and have been extended for applications taken on or before July 31, 2020:
– Appraisal waivers: encouraging lenders to accept waiver offers when eligible– No changes to delivery at this time for either agency– Completion report (Form 1004D): allowing a letter signed by the borrower
confirming that the work was completed for appraisal reports completed “subject to” (excludes new construction)
– Form Instructions: Map Reference field will be used when a “desktop” or “exterior” only appraisal report is completed on a form for an interior and exterior inspection
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Fannie Mae LL-2020-04
Fannie Mae LL-2020-04 and LL-2020-03
Fannie Mae appraisal policies are effective immediately and have been extended for applications taken on or before July 31, 2020 unless noted:
– HomeStyle® Renovation loans in process, allowing “Completion of Construction Certification” for draws when planned work has been completed. Additional supporting evidence, including photographs, site videos, paid invoices must also be provided to confirm work was completed per the renovation contract. These loans require a traditional appraisal report and a Form 1004D Appraisal Update/Completion Report is required when work is completed.
– Fannie Mae will allow draws on a HomeStyle® Renovation Loan while in forbearance, all other program requirements, including the flexibilities applicable to HomeStyle loans in this lender letter, continue to apply
– Recourse can be removed for a HomeStyle Renovation Loan that was subject to a COVID-19 forbearance as long as the loan is not delinquent at the time of the request and the loan meets the criteria set out in LL-2020-04 (effective until further notice)
– Allow standard seasoning of no more than 12 months after the note date provided the renovation has been completed according to plans and the loan is delivered with SFC 279. HomeStyle Reno loans the lender delivers prior to completion of renovation are subject to temporary six month delivery seasoning requirements
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Fannie Mae LL-2020-04
Fannie Mae LL-2020-04 and LL-2020-03
Fannie Mae appraisal policies are effective immediately and have been extended for applications taken on or before July 31, 2020:
– Condo Waiver of Project review for loans with LTV ratios greater than 80% and up to 90% for Fannie Mae-owned, limited cash-out refinance owner occupied units only
• Lenders must confirm the project meets the following existing requirements– The litigation requirements described in Selling Guide B4-2-1-03, Ineligible Projects and – All policies in the Selling Guide B4-2.1-02, Waiver of Project Review, for all loans with LTV ratios
greater than 80% using the waiver of review for Fannie Mae-owned limited cash-out refinance transactions
– Lenders must deliver the loans with Project Type Code “V” in loan delivery data file– Condo Projects where there is a delay in ratifying their 2020 budgets, lenders may
use 2019 budget when a budget review is required.• To use this flexibility, lenders must confirm the project currently meets the HOA dues
delinquency requirements in Selling Guide B4-2.-02, Full Review Process.• All other project standards requirements in Selling Guide B4-2, continue to apply• New projects are excluded from this flexibility
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Fannie Mae LL-2020-04
Fannie Mae LL-2020-04 and LL-2020-03
Fannie Mae appraisal policies are effective immediately and have been extended for applications taken on or before July 31, 2020:
– Reminder: Lenders may use other sources of condo project data to complete their project reviews, including, but not limited to appraisals, MLS records, plat map and site surveys, public records, state laws or local ordinances, and tax searches
– Reminder: If a lender completed a project review for an established condo project, that project review may be used for additional condo unit loans in the same condo project for up to one year (measured to the note date of the subsequent loans).
• For new condo projects, the timeframe is 180 days prior to the note date– CPM (Fannie Mae’s Condo Project Manager) can be used to help track and
communicate project review status and review dates within your organization– Appraisal flexibilities announced in LL-2020-04 may be combined with existing
lender variances unless Fannie Mae notifies the lender that it may not combine negotiated terms with these flexibilities
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Fannie Mae LL-2020-04
Fannie Mae LL-2020-04 and LL-2020-03
Fannie Mae LL-2020-04 Fannie Mae appraisal policies are effective immediately and have been extended for applications taken on or before July 31,2020:
– Virtual inspections:• Appraisers may use virtual inspection methods to augment the data and imagery that is
used for either a desktop or exterior-only appraisal.• Traditional appraisals require the appraiser to perform a complete onsite interior and
exterior inspection of the property; Virtual inspections cannot be used to substitute for the onsite interior and exterior inspection.
• Virtual inspections using video and photographs provided by the borrower or contractor can be used to evidence renovation progress to disburse renovation funds. See LL-2020-04 for all requirements
12Fannie Mae LL-2020-04 and LL-2020-03
13Fannie Mae LL-2020-04 and LL-2020-03
Continuity of Income*: Effective March 23, 2020 to July 31, 2020– Verbal VOE
• Lenders may obtain a written VOE confirming the borrower’s current employment status within the same timeframe as the verbal VOE requirements.
• An email directly from the employer’s work email address that identifies the name and title of the verifier and the borrower’s name and current employment status may be used in lieu of a verbal VOE. In addition, the lender may obtain the VOE after loan closing, up to the time of loan delivery
• Paystubs: Lenders may obtain a year-to-date paystub from the pay period that immediately precedes the note date.
• Bank Statements: The lender can provide bank statements (or other alternative documentation as permitted by the Selling Guide (B3-4.2-01) evidencing the payroll deposit from the pay period that immediately precedes the note date.
*If employment has been validated by the DU validation service, the validation will remain eligible for representation and warranty relief on employment provided the lender complies with the “close by” date in the DU message
Fannie Mae LL-2020-03
14Fannie Mae LL-2020-04 and LL-2020-03
Effective for applications taken April 14, 2020 through July 31, 2020– Age of Documents
• For most income and asset documents age requirements is reduced from four months to two months or 60 days from the note date. If an asset statement is issued quarterly, lenders must obtain the most recently quarterly statement.
• Employment and income verification received directly from a third-party verification vendor, the information in the vendor’s database cannot be more than 60 days old as of the note date.
• No change to age of documentation requirements for Military income using and LES, Social Security, retirement income, long-term disability, MCC, public assistance, foster care or royalty payments.
• Due to the federal income tax filing extension grated through July 15,2020, eliminating the following documentation requirements.
– A copy of the IRS Form 4868 (Application for Automatic Extension of Time to File US Individual Tax Return)– IRS Form 4506-T (Request for Transcript of Tax Return) transcript confirming “No Transcript Available” for the 2019
tax year
• CTP Single Close transactions require income and asset documentation to be dated within 60 days of the original closing
Fannie Mae LL-2020-03
15Fannie Mae LL-2020-04 and LL-2020-03
Effective for applications taken April 14, 2020 through July 31, 2020 unless noted
– Self-Employment• Lenders must confirm that the borrower’s business is open and operating within 10 business
days of the note date (or after closing but prior to delivery). See LL 2020-03 for examples to confirm the business open and operating.
– Market-based assets• When using stocks, stock options or mutual funds for down payment or closing costs,
evidence of the borrower’s actual receipt of funds from the sale or liquidation must be documented in all cases
• When used for reserves, only 70% of the value of the asset must be considered– Powers of Attorney
• More flexibility, See LL 2020-03, FAQs, POA Job Aid and Fannie Mae Selling Guide B8-5-05for full details
– Remote online notarization (RON) Effective immediately and remain in place until further notice, requirements will be added to the Selling Guide
• Lenders may sell loans with remotely notarized documents if they meet the requirements of LL 2020-03 and Selling Guide Chapter A2-5.1-03 Electronic Records, Signatures, and Transactions, including specific state locations
Fannie Mae LL-2020-03
16Fannie Mae LL-2020-04 and LL-2020-03
Age of Documents: Effective for applications taken April 14, 2020 through July 31, 2020
– Lender Quality Control• QC processes are designed to inform organizations of the level of quality risk they are
incurring and are extremely important. Fannie Mae recognizes the unique challenges in the market today and will allow temporary post-closing flexibilities related to reverifications and appraisal field reviews. See LL 2020-03 for Lender options
– Notes, electronic records, signatures reminder• Electronic signatures are permitted under the terms of the Selling Guide but promissory
notes may not be signed electronically unless the promissory note is an electronic note (eNote) sold in accordance with A2-5.1-03
– Title Insurance• Lenders must comply with requirements in Selling Guide B7-2 but with recording offices
closing this presents challenges for lenders• Fannie Mae accepts lender’s policies of title insurance written on the 2006 ALTA loan title
insurance form or equivalent. Covered Risk 14 in the 2006 ALTA form includes “gap coverage” for matters arising between the loan closing date and the mortgage recording date. This is acceptable so long as there is no exception for this coverage under Schedule B of the policy
Fannie Mae LL-2020-03
17Fannie Mae LL-2020-04 and LL-2020-03
Reminders and Suspension of Employment Validation Service– Reminder that unemployment may only be used if it clearly is associated with
seasonal employment reported on the signed federal tax returns and lenders verified the income by following B3-3.1-09 of the Selling Guide.
• The CARES Act allows for unemployment for furloughed and unemployed individuals but it is considered short-term income in nature and not a reliable and predictable source of income
– Furloughed borrowers are workers who are suspended from active employment and do not typically have a guarantee of when they will return to work; therefore use of this income is “ineligible” under Fannie Mae’s Temporary Leave Income Policy B3-3.1-09
– New Casefiles created May 4, 2020 through June 30, 2020 Fannie Mae is suspending Rep and Warrant Relief for employment validation with the DU validation service. Lenders must perform a Verbal Verification of Employment current Fannie Mae policies per the Selling Guide or applicable Lender Letter
Fannie Mae LL-2020-03
18Fannie Mae LL-2020-04 and LL-2020-03
Sale of Loans to Fannie Mae Effective Immediately– Fannie Mae is suspending bulk transactions and requires that loans sold on a flow
basis be no more than six months old to be eligible for sale to Fannie Mae.– The loans age will be based on
Fannie Mae LL-2020-03
19Fannie Mae LL-2020-04 and LL-2020-03
Updated Policy for new Purchases and refinance transactions– Lenders must review borrower’s credit report to determine the status of all
mortgage loans. In addition, lenders must apply due diligence for each mortgage loan on which the borrower is obligated, including co-signed mortgage loans and mortgage loans not related to the subject transaction to determine whether the payments are current as of the note date of the new transaction. For purposes of these requirements, “current” means the borrower has made all the mortgage payments due in the month prior to the note date of the new loan transaction by no later than the last business day of that month. Examples of acceptable additional due diligence methods to document the loan file include:
• A loan payment history from the servicer or third-party verification service• A payoff statement (for mortgages being refinanced)• The latest mortgage account statement from the borrower, and• A verification of mortgage
– A borrower who is not current and has missed payments on any mortgage loan is eligible for a new mortgage loan if those missed payments were resolved in accordance with the requirements in the table on the next slide
Fannie Mae LL-2020-03 Effective June 2, 2020 And Remains Effective Until Further Notice
20Fannie Mae LL-2020-04 and LL-2020-03
Fannie Mae LL-2020-03 Effective June 2, 2020 And Remains Effective Until Further Notice
21Fannie Mae LL-2020-04 and LL-2020-03
Due to the pandemic’s continuing impact on businesses throughout the country, lenders are now required to obtain the following additional documentation to support the decision that the self-employed income meets Fannie’s requirements:
– An audited year-to-date profit and loss statement reporting business revenue, expenses, and net income up to and including the most recent month preceding the loan application date; or
– An unaudited year-to-date profit and loss statement signed by the borrower reporting business revenue, expenses, and net income up to and including the most recent month preceding the loan application date, and two business depository account(s) statements no older than the latest two months represented on the year-to-date profit and loss statement. Fannie Mae is suspending bulk transactions and requires that loans sold on a flow basis be no more than six months old to be eligible for sale to Fannie Mae.
– Lenders must review the two most recent depository account statements to support and/or not conflict with the information presented in the current year-to-date profit and loss statement. Otherwise, the lender must obtain additional statements or other documentation to support the information from the current P & L.
Fannie Mae LL-2020-03 Effective June 11, 2020 And Remains Effective Until Further Notice
Note: The year-to-date profit and loss statement must be no older than 60 days as of the note date consistent with current Age of Documentation requirements in LL-2020-03
22Fannie Mae LL-2020-04 and LL-2020-03
Lenders must review the profit and loss statement, and business depository accounts, if required, and other relevant factors to determine the extent to which a business has been impacted by COVID-19. LL-2020-03 addresses:
–Business Operations–Business Income–Business Stability–Business Income Calculation Adjustments
• When the lender determines current year net business income has been impacted by COVID-19 and is:
– Less than the historical monthly income calculated using Form 1084, but is stable at its current level, the lender must reduce the amount of qualifying income calculated using Form 1084 to no more than the current level of stable income as determined by the lender
– More than the historical income calculated using Form 1084, the lender must use no more than the currently stable level of income calculated using Form 1084 to qualify the borrower
Fannie Mae LL-2020-03 Effective June 11, 2020 And Remains Effective Until Further Notice
Fannie Mae COVID-19 SEB UpdatesFannie Mae LL-2020-03 updated from original issuance.
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https://singlefamily.fanniemae.com/media/22316/display
COVID-19 Self-Employed Updates
24COVID-19 Self-Employed Updates
Effective for applications taken April 14, 2020 through July 31, 2020 unless noted
– Self-Employment• Lenders must confirm that the borrower’s business is open and operating within 10 business
days of the note date (or after closing but prior to delivery). See LL 2020-03 for examples to confirm the business open and operating.
– Due to the federal income tax filing extension granted through July 15,2020, eliminating the following documentation requirements.
– A copy of the IRS Form 4868 (Application for Automatic Extension of Time to File US Individual Tax Return)
– IRS Form 4506-T (Request for Transcript of Tax Return) transcript confirming “No Transcript Available” for the 2019 tax year
Fannie Mae LL-2020-03
25COVID-19 Self-Employed Updates
Due to the pandemic’s continuing impact on businesses throughout the country, lenders are now required to obtain the following additional documentation to support the decision that the self-employed income meets Fannie’s requirements:
– An audited year-to-date profit and loss statement reporting business revenue, expenses, and net income up to and including the most recent month preceding the loan application date; or
– An unaudited year-to-date profit and loss statement signed by the borrower reporting business revenue, expenses, and net income up to and including the most recent month preceding the loan application date, and two business depository account(s) statements no older than the latest two months represented on the year-to-date profit and loss statement. Lenders must review the two most recent depository account statements to support and/or not conflict with the information presented in the current year-to-date profit and loss statement. Otherwise, the lender must obtain additional statements or other documentation to support the information from the current P & L.
Fannie Mae LL-2020-03 Effective June 11, 2020 And Remains Effective Until Further Notice
Note: The year-to-date profit and loss statement must be no older than 60 days as of the note date consistent with current Age of Documentation requirements in LL-2020-03
26COVID-19 Self-Employed Updates
Lenders must review the profit and loss statement, and business depository accounts, if required, and other relevant factors to determine the extent to which a business has been impacted by COVID-19. LL-2020-03 addresses:
–Business Operations–Business Income–Business Stability–Business Income Calculation Adjustments
Fannie Mae LL-2020-03 Effective June 11, 2020 And Remains Effective Until Further Notice
27COVID-19 Self-Employed Updates
28COVID-19 Self-Employed Updates
Business Income Calculation Adjustment
LL-2020-03
29COVID-19 Self-Employed Updates
Fannie Mae And Analyzing P & Ls
Fannie Mae CommunicationsAnnouncements, Lender Letters, Release Notes…
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Desktop Underwriter Release Notes
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https://singlefamily.fanniemae.com/applications-technology/desktop-underwriter-desktop-originator
Selling Guide SEL 2020-03
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https://singlefamily.fanniemae.com/announcement-sel-2020-03-selling-guide-updates
Selling Notice
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https://singlefamily.fanniemae.com/selling-notice-homeready-income-limits-2020
Desktop Underwriter Release Notes
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https://singlefamily.fanniemae.com/applications-technology/desktop-underwriter-desktop-originator
Selling Guide SEL 2020-02Fannie Mae released the attached Selling Notice. Highlights include the following: Secured Overnight Financing
Rate (SOFR) ARMs: Provides additional details for SOFR ARM products Fannie Mae will begin to accept as of Aug. 3, 2020
Property tax and escrow clarification: Revised the underwriting changes previously made on Dec. 4, 2019
Miscellaneous update: Special Feature Code 785 has been added to the Guide
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file:///C:/Users/213024593/Documents/DU%20LP/DU%202020/Ann%20SEL-2020-02_0.pdf
Updated Timeline for URLA
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URLA- Redesigned
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https://www.fanniemae.com/singlefamily/uniform-residential-loan-application
Day 1 CertaintyTM
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DU Validation Service and Day 1 CertaintyTM
https://www.fanniemae.com/singlefamily/day-1-certainty
Understanding Desktop Underwriter Advanced
https://www.duvalidationcenter.com/
DU Validation ServiceOptional Service via DU – Lenders Must Activate to use
– Execute contract with vendor(s), then execute contract/agreements with Fannie Mae
– Validation Options for Income, Assets and Employment verified by Third Party Data Vendor (i.e. The Work Number® from Equifax®)
– Tax transcripts used from a tax transcript Service used for Social Security Income, pension/retirement income, and self-employment income for sole proprietors (schedule c income)
– Lenders can use one or all of the services– DU validation service will be applied for ALL DU casefiles underwritten by
participating lenders that have activated the service
40Understanding Desktop Underwriter Advanced
DU Validation Service– Lenders obtain borrower consent then orders the “verification report(s)”– Lender reviews report for any discrepancies with borrower– Lender enters details into DU and submits– DU obtains a “duplicate” report from the vendor using loan number or reference
number. (Lender loan #, social security number must match in DU to the report)– DU performs its own income and asset calculation to arrive at a value that is
compared to DU.– Employment status can also be verified– DU returns messages related to the components submitted for validation:
• Income is validated on a per-borrower and per-income basis• Assets are validated on a loan-level basis• Employed is validated on a per-borrower and per-employer basis
– When a component of the file (income, assets, or employment) is validated in DU, Fannie Mae will not enforce representations and warranties with regard to:
• Accuracy of income calculation, asset calculation, and borrower employment status at the time of closing
• Integrity of the data from the designated vendor
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How It Works - Income Example
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The DU Findings ReportAlways Read Through All Messages
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Analyzing Desktop Underwriter Findings ReportSUMMARY OF FINDINGS: Contains “DU” Recommendation and Purchase Eligibility– DAY 1 CERTAINTY MESSAGES: Day 1 certainty or Enforcement relief on property
value)
– RISK AND ELIGIBILITY: Provides details on risk recommendation and why loan is NOT eligible for delivery and possible data entry errors
– FINDINGS SECTION: Indicates strengths in the file/loan application
– VERIFICATION MESSAGE/APPROVAL CONDITIONS SECTION: Contains minimum DU requirements for documentation and potential red flag messages
– OBSERVATIONS SECTION: Contains “FYI” for you and your lender
– UNDERWRITING ANALYSIS REPORT: Modern 1008/Summary of the transaction
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https://fanniemae.articulate-online.com/p/7778781313/story_html5.html?Cust=77787&DocumentID=a3ab487e-ffd9-4787-8b23-f90ed9997b3b&Popped=True&v=8&InitialPage=story.html
Verification Messages Broken out by Topic:– General messages
•Potential Red Flag Messages•Document Expiration date•MI requirements
– Credit and Liabilities•Bankruptcy, foreclosures, charge offs•Late pays, payoff of accounts, omitted liabilities
– Employment and Income•Documentation requirements
– Assets and Reserves•Amount to verify•Liquidation
– Property and Appraisal Information•Appraisal Type•Project Review Type
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Sample DU Findings Report
Understanding Desktop Underwriter Advanced
When Viewing In HTML You Can Sort Messages In Any Order
Desktop Underwriter Potential Red Flag Messages - Updated
Messages Must Be Cleared– Provides message text– Why message appeared– Possible ways to clear or resolve
https://www.fanniemae.com/content/tool/du-potential-red-flag-message-matrix.pdf
Understanding Desktop Underwriter Advanced
Desktop Underwriter Potential Red Flag Messages - Updated Messages Must Be Cleared– Provides message text– Why message appeared– Possible ways to clear or resolve
https://www.fanniemae.com/content/tool/du-potential-red-flag-message-matrix.pdf
Understanding Desktop Underwriter Advanced
General MessagesBest Practices
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General MessagesClear Potential Erroneous Information
– Confirm SS#
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Watch the expiration date of your documents!
General Messages
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It’s 4 months - not 120 days!
See temporary guidelines
Check Pricing
General Messages
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Reminder-
If the loan can be submitted as a HomeReady loan -
All LLPA waived for transactions with credit score of 680 or greater and LTV of 80% or greater.
https://www.fanniemae.com/content/pricing/llpa-matrix.pdf
• Check for MI coverage• Check MI guidelines
General Messages
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Reminder -If the loan can be submitted as a HomeReady loan or is an HFA loan, the MI coverage requirement is lower when the LTV is greater than 90%!
Credit and Liabilities Best Practices
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Credit and Liabilities • Check for overlay of minimum credit score• Check for overlay of minimum number of credit scores• Check for overlay of minimum number of tradelines used in credit
score
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Credit and Liabilities DU Credit-related Error Codes Job Aid
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https://www.fanniemae.com/content/job_aid/desktop-underwriter-credit-related-error-codes-job-aids.pdf
Credit and Liabilities
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Borrowers with Credit Freeze– DU will underwrite if only one repository is frozen
• A warning message will be issued by DU reminding lenders of their responsibility – If two repositories are frozen DU will issue an error message– If no credit score is generated by the two repositories available, DU will
underwrite under the guidelines specific for borrowers without traditional credit
Understanding Desktop Underwriter Advanced
https://www.fanniemae.com/content/release_notes/du-do-release-notes-11182017.pdf
Credit and Liabilities
https://www.consumer.ftc.gov/articles/0497-credit-freeze-faqs
If consumers ask for a freezeonline or by phone, the credit reporting agency must have the freeze in place within one business day. And when consumers want to lift the freeze, the credit reporting agencies have to make that happen within one hour. If consumers make the request by)mail, the agency must place or lift the freeze within three business days.)
Understanding Desktop Underwriter Advanced
Verification Messages Broken out by Topic:–Credit and Liabilities
•Bankruptcy, foreclosures, charge offs, late pays, omitted accounts•What accounts were indicated as “to be paid off”•Mortgage payment that need additional attention
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Credit and Liabilities
Understanding Desktop Underwriter Advanced
This message is NOT on your sample findings
Credit and Liabilities B3-5.3-07, Significant Derogatory Credit Events — Waiting Periods and Re-establishing Credit (07/29/2014)
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Not ALL Lenders Allow For Extenuating Circumstances
Credit and Liabilities Bankruptcy And Mortgage Delinquency
– With 10.2 lenders will have the ability to instruct DU to disregard bankruptcy information in the eligibility assessment that is incorrect or due to extenuating circumstances, or disregard excessive mortgage delinquency information that is incorrect
– DU will then issue a message stating the bankruptcy information was not used in the eligibility assessment because DU was instructed to underwrite without it.
– Lenders must document the borrower did not declare bankruptcy, or that the loan meets the applicable waiting period requirements
– For mortgages reported in error, DU will issue a message stating the mortgage delinquency information was not used in the eligibility assessment because DU was instructed to underwrite without it
– Lenders must document the mortgage is not currently past due by two or more payments and that it has not been 60 days or more past due in the last 12 months
– NOTE: Prior updates only allowed lenders to disregard foreclosures due to extenuating circumstances or incorrect information
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Credit and Liabilities DU Sample Data Entry
– Check your specific policy if you are able to override DU with these options
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Credit and Liabilities – When DU issues “Approve/Eligible” using the disputed trade lines:
• Include the payment, if any, in the DTI but no further documentation is required.
– When loan casefile does not receive Approve recommendation including the disputed trade line, risk will be assessed EXCLUDING the trade line:
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Authorized User Accounts DU considers authorized user accounts in it’s credit risk assessment. FICO scores may be impacted but DU’s risk engine looks at the trade lines and makes a credit recommendation.
– Lenders should underwrite without the benefit of these trade lines unless your borrower is the authorized user and you have confirmed they have been making the payments on the account.
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Credit and Liabilities
Accounts Paid off at Closing– Funds must be verified to pay off the account (if indicated in DU loan to be paid,
DU will add amount to be verified); Underwriters will use discretion and MAY include a payment even if the account is being paid off. The account may remain open after closing
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Credit and Liabilities
Understanding Desktop Underwriter Advanced
For loan casefiles underwritten through DU– DU determines the maximum allowable debt-to income ratio based on the overall
risk assessment of the loan casefile– DU will apply a maximum allowable DTI ratio of 50%
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Credit and Liabilities
Understanding Desktop Underwriter Advanced
The total monthly obligation is the sum of the following:– Monthly housing expense (PITI)– Monthly payments on installment debts and other mortgage debts that extend
beyond ten months (including deferred installment loans); – Monthly payments on revolving debts (unless evidence paid off)
• If debt (all types) verified paid by someone else for at least 12 months the payment may be excluded; Policy includes all types of debts including mortgages
• Payment history must have no history of delinquencies in the most recent 12-month period
– Continued on next slide……..
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Credit and Liabilities
Understanding Desktop Underwriter Advanced
SEL 2017-06
The total monthly obligation….cont– 30 Day charge accounts - monthly balance will not be calculated in the DTI but included as
reserves in the “required funds to be verified” – Do not Omit or mark paid by close
• Verify MOP is “O” on credit report and mapped correctly into DU
– Monthly payments on lease agreements, regardless of expiration date of lease– Any net rental loss from a rental property– Properties owned free and clear still have tax and insurance that must be documented and
included
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Credit and Liabilities...cont
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Student Loans – Is it Deferred or in Repayment?
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Credit and Liabilities...cont
– Student Loans in repayment:• Use the actual payment documented from credit report; If no payment listed
– Use verified loan terms from student loan lender – Documentation supplied by the borrower or– 1% of the outstanding student loan balance– Or verify loan is an income based repayment and there is a zero payment due
SEL 2017-04
The total monthly obligation is the sum of the following:– Monthly alimony, child support, or maintenance payments that extend beyond
ten months
– Business debt in the borrower’s name does not need to be considered if:• the account in question does not have a history of delinquency, • the business provides acceptable evidence that the obligation was paid out of company
funds (such as 12 months of canceled company checks), and • the lender’s cash flow analysis of the business took the obligation into consideration
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Credit and Liabilities...cont
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SEL 2017-06 allows option to reduce income by the monthly Alimony obligation in lieu of a liability
The total monthly obligation is the sum of the following:
– Selling Guide requirements are:
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Credit and Liabilities...cont
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SEL 2018-01 allows option to include a payment in the DTI if certain requirements are met
The total monthly obligation is the sum of the following:
:
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Credit and Liabilities...cont
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SEL 2018-09 requires SBA loans secured by the subject to be treated as a subordinated lien
Employment and IncomeBest Practices
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Documenting Employment and Income
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Break Out Income Type For Proper AUS Results
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Employment and Income
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Paystub
Reminders:– The borrower’s name and SSN# must be consistent with the application (spelling, middle
initial or a JR or III)– Computer generated?– If paid hourly, the number of hours must be noted on the paystub– Dated within 30 days of application; if stale dated, ask applicant for more recent stub– YTD income must be provided and should be consistent with monthly income– Note any commission, overtime, or bonus income - don’t use if you don’t need– Review for possible liabilities that may need to be included in your debt ratio (child
support or alimony or IRS garnishment or a new loan take out)– If automatically deposited, cross reference the income to the bank statement– We are calculating income but also validating the document. Does employer match back
to application? To the W-2?
See temporary guidelines
Employment and Income
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Verbal Verifications– Verbal verifications of employment for employed borrowers are required to be
completed within 10 business days of closing or, if lenders choose, a VVOE can be completed prior to loan delivery
– Verbal verifications of employment for self employed borrowers can now be completed within 120 days of note date or prior to loan delivery (Check for investor overlays)
See temporary guidelines
Employment and Income
www.irs.gov
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The IRS Form 4506-T– IRS document used to retrieve past federal tax return transcripts, 1065, 1120S, 1120, or W-2 and 1099
transcripts that are on file with the IRS.– Gives permission for a third party to retrieve the tax payer’s data.– The form is valid for 120 days once signed– If the form is executed prior to closing it must be used to validate the income documentation provided by
the borrower and used in the underwriting process.When Completing A Blank 4506-T Form Lenders Must
– Fill in the recipient of the tax documents – either its name or the name of the servicer, if servicing will be transferred within 120 days of the taxpayer signing the form
– Indicate that the request is for documentation concerning the year or years for which the borrower’s income was or will be used in underwriting the loan
– Date the form with the date on which the borrower signs the form (or ascertain that date the borrower signed)
See temporary guidelines
Employment and Income
Commission income effective immediately with 2018-09– All commission income will be treated the same, individual tax returns or tax
transcripts will no longer be required– Or a written verification of employment (Written VOE 1005) can be used in place
of either of the above documentation as long as it contains applicable info
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Employment and Income
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Automobile allowance Policy
– The full amount of an automobile allowance may now be included as income and the lease or financing expenditure must be included as a debt in the calculation of the debt-to-income (DTI) ratio. NOTE: A history of receipt of this income continues to be required.
– Loan files that include qualifying income from an automobile allowance that is calculated following the “actual cash flow approach” must continue to include IRS Form 2106. This includes the practice of directly offsetting an automobile lease payment with an automobile allowance if the lease payment is captured as an expense on Form 2106
DU Messaging Was Updated The Weekend Of March 23rd
Employment and Income
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Self Employment
See temporary guidelines
•Use of LoanBeam for income 1084 workbook– Fannie Mae has approved the use of this tool and if lender uses it to calculate income and
enter the monthly income amount in DU, Fannie Mae will provide representation and warranty enforcement relief* on the accuracy of the calculation of the amount of self-employment income.
– Lenders must
• **Determine eligibility of the self-employment income
• Enter complete and accurate data in the vendor tool
• Cannot perform any manual overrides of the output results
• Accurately enter the calculated self-employment income amount in DU and
• Deliver the loan using Special Feature code 777
Employment and Income
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See temporary guidelines
•Use of LoanBeam for income 1084 workbook– Lenders may receive enforcement relief when using a Fannie Mae-approved tool
immediately.
– The list of Approved Vendor Tools is available on Fannie Mae’s website
Employment and Income
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See temporary guidelines
•General Underwriting Requirements– Lenders must review the “type” of income earned and entered in DU; income used for
qualifying must be reasonably stable and likely to continue at the current levels. RED FLAG: Declining income
– Bonus and Overtime must be annualized or not used at all.
– Employment by a relative or an interested party to the transaction requires applicant to provide tax returns regardless of the DU income documentation message
– Second Job must have a minimum typically of a two year history
– Enter self employed income in “base” income field & sure to mark the self employment box
– Non taxable sources of income can typically be grossed up 25% if evidence provided to verify the income is non-taxable
– Handwritten pay stubs, pay stubs that do not contain ytd income or “stale dated” pay stubs are typically not acceptable
– For loans where the borrower will begin employment after the note date, enter time on job as zero years and zero months
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Income and Employment
AssetsBest Practices
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Assets
Do not enter gift funds in Section 2. Gifts are entered in Section 4.
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Assets
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Other Assets - These asset types are the less common – Verify acceptability of the assets type and check to see if any program
restrictions apply
Observation Section Lists Total Assets Entered By Type; Underwriting Analysis Report Lists Total Funds Required, Including Any Reserves
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Assets
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Additional Reserves May Need To Be Verified If Paying Down Accounts, Paying Off Collections Or Judgments Or Tax Liens
Assets Entered By Type Total Funds Required
Minimum Borrower Contribution
1. If the borrower receives a gift from a relative or domestic partner who has lived with the borrower for the last 12 months, or from a fiancé or fiancée, the gift is considered the borrower’s own funds and may be used to satisfy the minimum borrower contribution requirement, as long as both individuals will use the home being purchased as their principal residence.
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https://selling-guide.fanniemae.com/Selling-Guide/Origination-thru-Closing/Subpart-B3-Underwriting-Borrowers/Chapter-B3-4-Asset-Assessment/Section-B3-4-3-Verification-of-Non-Depository-Assets/1736868951/B3-4-3-04-Personal-Gifts-09-29-2015.htm
Standard Depository Messages:– Number of months documentation– Refers lenders to Selling Guide for large deposits (we will discuss on a future slide)
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Assets
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Assets
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Indications of Borrowed Funds…– Fannie Mae and Freddie Mac have the same definition of a “large deposit”– A large deposit and any deposit that is 50% or more of the total qualifying income
being used to qualify– If using the funds, lenders must obtain borrower’s written explanation and
documentation of the source of large deposits that are reflected on bank statements– If the source of a large deposit is readily identifiable on the account statement, such
as direct deposits where the source of the deposit is printed on the statement, lenders do not need to obtain further explanation; documentation deposit is printed on the statement, but the lender still has questions as to whether the funds may have been borrowed, the lender should obtain additional documentation
– Lenders must investigate accounts opened within 90 days of the application date and account balances that are considerably greater than the average balance reflected on the Verification of Deposit Form 1006
– For asset statements that are older than 45 days from application, lenders should request an updated statement
– Use of business assets is acceptable, but lenders must perform a cash flow analysis to determine if any withdrawal will have a negative impact on the business
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Assets - The Use of Gift Funds
– A borrower of a mortgage loan secured by a principal residence or second home may use funds received as a personal gift from an acceptable donor.
– Gift funds may fund all or part of the down payment, closing costs, or financial reserves, subject to the minimum borrower contribution requirements.
Gifts are not allowed on an investment property.
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https://www.fanniemae.com/content/guide/selling/b3/4.3/04.html
Assets - Gift Funds - DocumentationGifts must be evidenced by a letter signed by the donor, called a gift letter. The gift letter must:
– specify the dollar amount of the gift;– specify the date the funds were transferred;– include the donor’s statement that no repayment is expected; and– indicate the donor’s name, address, telephone number, and relationship to the
borrower.When a gift from a relative or domestic partner is being pooled with the borrower’s funds to make up the required minimum cash down payment, the following items must also be included:
– A certification from the donor stating that he or she has lived with the borrower for the past 12 months and will continue to do so in the new residence.
– Documents that demonstrate a history of borrower and donor shared residency. The donor’s address must be the same as the borrower’s address. Examples include but are not limited to a copy of a driver’s license, a bill, or a bank statement.
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The lender must verify that sufficient funds to cover the gift are either in the donor’s account or have been transferred to the borrower’s account. Acceptable documentation includes the following:
– a copy of the donor’s check and the borrower’s deposit slip, – a copy of the donor’s withdrawal slip and the borrower’s deposit slip, – a copy of the donor’s check to the closing agent, or– a settlement statement showing receipt of the donor’s check (Fannie Mae Only)
When the funds are not transferred prior to settlement, the lender must document that the donor gave the closing agent the gift funds in the form of a certified check, a cashier’s check, or other official check with remitter as the donor.
Assets - Gift Funds
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In What Loan Situation Can A Gift NEVER Be Used?INVESTMENT PROPERTY
Assets
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:Mutual Funds and Other Non-liquid Account Types– Proof of liquidation
Proof Of Liquidation– When used for the down payment or closing costs, if the value of the asset is at least 20%
more than the amount of funds needed for the down payment and closing costs, no documentation of the borrower’s actual receipt of funds realized from the sale or liquidation is required
Applicable for loans submitted to DUand manually underwritten loans; Non-liquid Account Type Applies to:
– Stocks, Bonds, and Retirement Accounts in the form of stocks, bonds and mutual funds
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See temporary guidelines
Stocks or Bond Account Messages:– Non-vested stock options and non-vested restricted stock are not acceptable sources of funds for the transaction
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Assets
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See temporary guidelines
AssetsRetirement accounts (401k or IRA)
– Accounts that allow for withdrawals only in connection with the borrower’s employment termination, retirement, or death, or the account does not allow for any type of withdrawal should not be entered
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Look For Indications That the Account is an IRA or Retirement Account - Borrowers Do Not Always Tell You
– Many investment accounts can be retirement accounts, so carefully review for evidence of the account type
– If less than 100% vested, you can use only the vested portion– Look for any loans taken out again the account, as you must subtract those
when determining available assets– Borrowers must have access to the account and it must allow for withdrawals,
regardless of current employment status
See temporary guidelines
Updates – Sales Concessions Field or IPC is being removed from DU and lenders must
make the adjustment to the purchase price manually or the purchase contract must be amended to restrict maximum IPC paid
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IPC Updates in DU
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AssetsDU uses the number of financed properties to apply the following eligibility guidelines for casefiles when the borrower has multiple financed properties and the subject property is an investment or second home.:
– A minimum credit score of 720 is required for borrowers with 7-10 financed properties
– Borrowers are limited to a maximum of 10 financed properties
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AssetsFor borrowers with multiple financed properties. The policy requires fewer eligibility overlays and updated reserve requirements, which are automated by DU.
– A new field “Number of Financed Properties” added to additional data screen. It captures the number of 1-4 unit financed properties the borrower is personally obligated on.
– If that field is not completed, DU uses the number of properties in the REO Section that include a mortgage payment or are tagged to a mortgage in the liabilities section
– If neither of the Number of Financed Properties field or the REO section has been completed, DU uses the liabilities section to determine the number of financed properties
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DU Issues A Message Informing The Lender What Number Was Used As The Number Of Financed Properties And Where That Information Was Obtained.
DU determines the reserves required for the other residential financed properties (excluding the borrower’s principal residence and the subject property). The reserve amount is determined by applying a specific percentage to the aggregate of the outstanding unpaid principal balance (UPB) for all *mortgages & HELOC’s disclosed on the application. The percentage is based on the number of financed properties.
*If marked paid by close, omit or if associated with subject property, not included.
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Assets
https://selling-guide.fanniemae.com/Selling-Guide/Origination-thru-Closing/Subpart-B3-Underwriting-Borrowers/Chapter-B3-6-Liability-Assessment/1736872401/B3-6-04-Qualifying-Payment-Requirements-04-15-2014.htm
Property and Appraisal Information
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Property and Appraisal Information
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A Full Appraisal Is Always Required, Regardless Of The DU Appraisal Option, When The Last Sale Was An REO Or Foreclosure Sale
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Appraisal WaiversAppraisal and Property-Related
Property and Appraisal - FAQs
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https://singlefamily.fanniemae.com/media/6776/displayhttps://singlefamily.fanniemae.com/media/9456/display
See temporary guidelines
DU 10.3 Updates Appraisal WaiversEffective December 8, Rural High-Needs Appraisal Waiver Available
Property and Appraisal Information
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Note: Genworth does not insure loans in the Rural High Needs Appraisal Waiver Program
Property and Appraisal InformationAppraisal Waiver UpdatesAvailable for Certain Purchase and Refinance DU Casefiles
– When a casefile is eligible for an appraisal waiver, Fannie Mae accepts the “submitted” value estimate as the market value.
– Fannie Mae provides relief of reps and warranties on the value, condition andmarketability of the property if the lender exercises the appraisal waiver option.
– To even receive an appraisal waiver message on the DU findings:• A prior appraisal must be found for the subject property in Fannie Mae’s Collateral
Underwriter® (CUTM) data• That appraisal must be associated with one of the borrowers on the loan casefile for
refinances.• Property and transaction must meet criteria found in the Selling Guide...see next slide
– Fannie Mae no longer is charging the $75 fee to exercise the option; SFC 801 is used upon delivery
– While Fannie Mae offers an appraisal waiver option, always check your own policies and procedures to ensure no overlay for an appraisal exist
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See temporary guidelines
Property and Appraisal InformationFannie offers Enforcement Relief on reps/warranties related to property value on certain loan casefiles when:
– Appraisal received a CU Risk Score of 2.5 or below, and– Property type is a one-unit detached, attached or condominium property
The following fields must be provided in DU:– The Actual Vs Estimated Appraised Value indicator…it must be submitted as
“Actual” (Additional Data Screen)• The value entered and zip code in UCDP® must match what was entered in DU.
– Doc file ID assigned from UCDP must be provided (Additional Data Screen)– Message will appear either way “Eligible for Relief” or “NOT Eligible for Relief”
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If Property Type Condominium, Project Review Type Message Will Appear:
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Property and Appraisal Information
2018-01 detached condos no longer require project approval (excluded manufactured homes)
See temporary guidelines
Underwriting Analysis Report Take Note Of…
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Underwriting Analysis Report Page #2 Validate the Details
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Underwriting Analysis Report
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Amortization Type–Fixed or ARM?–ARM
•Note Rate vs. Qualifying Rate
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Underwriting Analysis ReportARM Qualifying Rate
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Always Enter The Index And Margin On ARM Loans
https://selling-guide.fanniemae.com/Selling-Guide/Origination-thru-Closing/Subpart-B3-Underwriting-Borrowers/Chapter-B3-6-Liability-Assessment/1736872401/B3-6-04-Qualifying-Payment-Requirements-04-15-2014.htm
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Presentation Title Insert Legal Copy
ARMS: LIBOR-SOFR Transition
https://www.fanniemae.com/content/news/libor-sofr-transition?utm_campaign=ssn-sell2019iss&utm_source=sfsfmc&utm_medium=email&utm_content=eml-noa-1120b-o-n&utm_term=b2b
Reminders
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•Lenders are responsible for integrity of the data submitted to DU– Do you have all pages to the bank statement and are all large deposits addressed and sourced?
– Retirement accounts? Access verified if required? Fully vested? Did you subtract any outstanding loans and is applicant fully vested?
– Truncated account numbers allowed as long as the last four digits are displayed
– Paying off a second mortgage? Verify it was used to purchase the property or treat the loan as a cash out. Also verify seasoning requirements for ownership and taking cash out.
– Refinance: Is the property currently offered for sale or has it been offered for sale in the past six months? For refinance transactions, properties must have been taken off the market as of loan disbursement date.
– Is Property type entered correctly (condo, PUD, manufactured home)
– Are the HOA dues, flood insurance or MI payments included in the housing payment, if applicable? Do you have written support?
– Does the occupancy make sense? Are the “Potential Red Flags” cleared as per the DU findings report?
– Are all the assets per DU verified plus any additional that are needed to payoff a judgment or collection? Evidence of liquidation if needed? Additional reserves?
See temporary guidelines
Reminders and Updates From Fannie Mae
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•Lenders are responsible for integrity of the data submitted to DU– Deferred loans must always be included in the debt ratio; Use amount on credit report, 1% of unpaid
balance or actual verified payment
– Student loans in repayment use actual payment per credit report or student loan documentation; Payment may be zero if verified and IBR plan and the payment is zero.
– Lease Payments must always be included in the debt ratio regardless of number of payments remaining
– Installment/lease debt without a payment on the credit report, you must obtain documentation to verify the actual monthly payment amount (Exception: Deferred Student loans see Selling Guide)
– Include revolving debt unless being paid off prior to or at closing; A payment may still be used based on underwriter judgment
– Income: Break it out by type, check trends, history of receipt
– Do names, addresses and social security numbers match from document to document?
Reminders and Updates From Fannie Mae
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•Lenders are responsible for integrity of the data submitted to DU– Loans in process where an appraisal as been ordered and submitted and the property is in a designated
disaster area, property will become eligible for a PIW on a future transaction if it meets requirements of Chapter B4-1,4-10, Appraisal Waivers
– Tax Liens may be included as a debt instead of having to payoff, see guidelines to be able to include as a payment
– Field reviews are no longer required for properties with values over $1,000,000 with LTV/CLTV over 75%
– Lenders required to choose the most reliable appraisal when two appraisals are obtained
– Waiver of project reviews for all detached condo units (excluding manufactured homes) and allow use of C-T-P financing for detached condo units
– HomeStyle Renovation eligibility allows LTV up to 97% for 1-unit primary homes
– Anything entered in these new fields, the casefile will be underwritten as a HomeStyle Energy Mortgage)
• Energy Improvement Amount PACE Loan Payoff Amount
– Allow lenders to underwrite loans (either with DU or through manual underwriting) for borrowers who have frozen credit at only one of the three national credit repositories.
– Native American tribes and their instrumentalities as eligible providers for Community Second Mortgages
Reminders and Updates From Fannie Mae
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•Lenders are responsible for integrity of the data submitted to DU– DU casefile or the Doc File ID may not be used more than once and a new error message will appear if
a lender attempts to do so
– DU loan casefile archival policy is extended from 270 days (9 months) to 28 months and DU will now use the date the casefile file was last submitted to determine archival date
– Fannie Mae does allow loans to be closed in the name of a trust but exceptions are allowed for Inter Vivos Revocable Trusts
– To exclude a liability that someone else pays requires documentation for 12 months showing timely payment and to exclude a mortgage, they must be a co-signer
– When excluding a mortgage payment that someone else has been verified making the payments, it is the PITIA that can be excluded as long as no rental income is being used from that property; Note that the property MUST be included in the borrower’s multiple financed property count & the UPB for the mortgage must be included in the calculation of reserves for multiple financed properties
– Premium pricing (which is a when a borrower selects a higher interest rate in exchange for a lender credit) cannot be used for any portion of the down payment or reserves and should not exceed the closing costs.
– Lender credits derived from premium pricing is not considered an IPC even if the lender is an interested party to the transaction
Reminders and Updates From Fannie Mae
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•Lenders are responsible for integrity of the data submitted to DU
– An appraisal waiver is not eligible for investment properties if you are using rental income from the subject property
– Appraisal waiver is not eligible if an appraisal has been uploaded through the UCDP
– Judgements will NOT appear on the credit report due to implementation of the National Consumer Assistance Plan in 2017; Fannie Mae policy did not change. The Selling guide defines lender responsibilities and requirements for payoff of liens, judgments and undisclosed liabilities
Genworth Underwriting Guidelines
Genworth Rate Express®
LOS Connections
Training Tools and Information
Training Tools and Information
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Additional MI Site Information
ActionCenter®: 800 444.5664
Your Local Genworth Regional Underwriter
Your Genworth Sales Representative
Your Genworth Resources
Legal Disclaimer Genworth Mortgage Insurance is happy to provide you with these training materials. While we strive foraccuracy, we also know that any discussion of laws and their application to particular facts is subject to individual interpretation, change, and other uncertainties. Our training is not intended as legal advice, and is not a substitute for advice of counsel. You should always check with your own legal advisors for interpretations of legal and compliance principles applicable to your business.
,GENWORTH EXPRESSLY DISCLAIMS ANY AND ALL WARRANTIES, EXPRESS OR IMPLIEDINCLUDING WITHOUT LIMITATION WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, WITH RESPECT TO THESE MATERIALS AND THE RELATED TRAINING. IN NO EVENT SHALL GENWORTH BE LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES OF ANY KIND WHATSOEVER WITH RESPECT TO THE TRAINING AND THE MATERIALS.
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Collateral Underwriter®, Home Ready® and Desktop Underwriter® or DU® are registered trademarks of Fannie MaeLoan Product Advisor®, Home Possible®, Loan Collateral Advisor® and Home Value Explorer® (HVE®) are registered trademarks of Freddie MacActionCenter®, Homebuyer Privileges® and Rate Express® are registered trademarks of Genworth Mortgage InsuranceSimply UnderwriteSM is a registered service mark of Genworth Mortgage Insurance