Fannie Mae
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Fannie Mae Updates Lender-Placed Property Insurance and Claims Processing
by Carolyne MunyuiAssistant Vice President On March 14 2012, Fannie Mae issued an announcement to update the Servicing Guide, on its policy regarding the use, coverage requirements, deductibles, carrier eligibility requirements & allowable reimbursable expenses for lender placed insurance. The Announcement (SVC-2-12-4) requires implementation no later than June 1, 2012. Servicers must obtain lender-placed coverage […]
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Fannie Mae Updates Delinquency and Default Management Requirements
by Carolyne MunyuiAssistant Vice President On April 25, 2012, Fannie Mae released the announcement No. SVC-2012-06 that describes policy changes under delinquency management and default prevention. The announcement provides an update and clarification as it applies to Fannie Mae HAMP modifications, Fannie Mae Standard modifications and directive or delegated modification programs in the following categories; […]
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Best Practices for Borrower Ability to Repay Rules
by Anna DeSimonePresident & Founder About one year ago, I published an article entitled Borrower Repayment Ability on the Radar. The article highlighted the “ability-to-repay” requirement of the Qualified Mortgage (QM) under Dodd-Frank. The article included a matrix of all U.S. states as of that had passed legislation requiring mortgage lenders to determine the borrower’s […]
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Fannie Mae Launches “EarlyCheck” Business Process
by Anna DeSimonePresident & Founder As a continuing part of its Loan Quality Initiative (LQI) Fannie Mae has launched a new optional service called EarlyCheck.™ EarlyCheck will enable lenders to identify and correct potential eligibility and/or data issues as early in the loan origination process as possible. The program is available across all underwriting methods […]
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Fannie Mae Updates Refi Plus and DU Refi Plus
by Ellen BrodyAssistant Vice President Fannie Mae (FNMA) recently announced Selling Guide updates in SEL-2011-13 (12/20/11) which reflect many changes detailed in prior Announcement SEL-2011-12, Updates to Refi Plus and Du Refi Plus. The Selling Guide has also been updated to reflect clarifications/changes in regard to Refi Plus and DU Refi Plus loans. Of note […]
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Fannie Mae Publishes Recommendations for Quality Control
by Anna DeSimonePresident & Founder In October 2011, Fannie Mae published a new booklet named “Beyond the Guide” that provides a more comprehensive description for recommended best practices for pre- and post-funding quality control. Since launching the Loan Quality Initiative (LQI) in September of 2010, Fannie Mae has listened to feedback from both lenders and […]
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Fannie Mae Announces Updates to Refi Plus and DU Refi Plus
by Ellen BrodyAssistant Vice President As a result of recently announced changes to the Home Affordable Refinance Program (HARP) made by the Federal Housing Finance Agency (FHFA), Fannie Mae (FNMA) is implementing changes to Refi Plus and DU Refi Plus. The announcement was made in SEL-2011-12: Updates to Refi Plus™ and DU Refi Plus™ (11/15/11). […]
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Fannie Mae Clarifies and Updates Underwriting Guidelines
by Sarah LagattollaDirector of Credit Risksarah@bankersadvisory.com Fannie Mae Mae has just issued an update to the Selling Guide (SEL-2011-04) that affects underwriting of loans as follows: Deferred Student Loans While it has been Fannie Mae’s policy to include payments for deferred student loans in the DTI, Fannie Mae has required verification of the payment amount. […]
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Borrower Repayment Ability is on the Radar
by Anna DeSimone, President The Federal Reserve Board has proposed a Rule to implement a provision of the Dodd-Frank Act that prohibits lenders from originating mortgages without regard to the borrower’s ability to repay the loan. Creditors must make a reasonable and good faith determination of that repayment ability, based on verified and documented evidence. […]
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Fannie Mae Clarifies Loan to Value Ratios in the Selling Guide
by Anna DeSimonePresident & Founder On March 31, 2011 Fannie Mae updated the Selling Guide clarify policy changes made regarding the calculations of ratios. The Selling Guide contains a number of references to the calculation of LTV, CLTV, and HCLTV ratios and the vast majority of these references indicated that ratio calculations were to be […]