During the weekend of December 13th, Fannie Mae will implement DU Version 7.1. This release will contain revised eligibility parameters and LTV's as described in Fannie Announcements 08-16 and 08-22.
FAMC has previously released and implemented the majority of the policy/credit changes announced by
Fannie Mae to date with the exception of the following:
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The minimum time frame between bankruptcy filing date and the borrowers credit report date is increased from 2 to 4 years
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Clarified and expanded the credit history requirements for borrowers who have a foreclosure, filed a deed in lieu of foreclosure, short sale or have a short payoff or a restructured a loan whether on the subject property or previous residence. All requirements must be met regardless of DU or LP Findings.
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Expanded the 6 month seasoning requirement for investment properties to include title transfers to or from the borrower during the previous six months which are not allowed regardless of the nature of the relationship between the transferees.
This is is tough! If you have property in an LLC and you want to refinance.. it looks like you willhave to wait 6 months after the transfer. -
Expanded the requirements for borrower's employed by a relative from 1 year's tax returns to 2.
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The following will be the minimum income/employment documentation issued by DU:
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Salary/Bonus/Overtime - the minimum documentation level required will be one current paystub and a verbal verification of employment.
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Commission/Self Employment - the minimum documentation level required will be one year's federal income tax return.
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The new parameters will apply to all case files submitted to DU on and after December 13th. Loan case files created in DU Version 7.0 and resubmitted after the weekend of December 13 will continue to be underwritten through DU Version 7.0.
So if you have a file in the works and these new guidelines mught bite you.. get your loans approved in 7.0 ASAP!
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