Just announced March 1st, the timeframe for completion and reporting of post close QC reviews to Fannie Mae is being reduced to 90 days from 120 days. As well, Fannie Mae is now requiring lenders complete a minimum number of prefunding reviews monthly. The total number of loans to be reviewed must equal the lesser of 10% of the prior…
Fannie Mae’s Selling Guide Announcement from 3/1/23 communicated a variety of updates. This blog is a two-part series to discuss in more detail two of the areas covered: Valuation Modernization and Lender Quality Control Updates. Also related is our recent blog, Appraisal Modernization is Now! The modernization of anything should include more flexibility and more reliance on tools versus people.…
As a part of the overall standardization efforts of the government sponsored enterprise (GSEs) Fannie Mae and Freddie Mac as directed by their regulator, the Federal Housing Finance Agency (FHFA)’s Uniform Mortgage Data Program (UMDP) is the latest “U” initiative coming to market is aimed at the loan application. Everyone from the borrower, to the loan originator, quality control vendors…
Last July, Fannie Mae began accepting loans with debt to income (DTI) ratios up to 50%. This is much higher than that allowable under the Truth Lending Act (TILA) for a Qualified Mortgage (QM). However, TILA offers an exception to the QM rules for loans that get approved by Fannie’s Automated Underwriting System (AUS). For now, as long as the…
In case you didn’t attend the National MBA Conference in Denver, here are some snippets on what’s going on. Fannie Mae Fannie Mae made some new announcements about more D1C authorized vendors and on expanding pilots to test out the use of single vendors for all required validations. They also announced their new Application Interfaces providing lenders with everything needed…
It seems like a simple question. According to Fannie Mae Quality Control guidelines, a lender need not reverify or recalculate, as applicable, information that is validated by Fannie’s Desktop Underwriter (DU), under their Day 1 Certainty Program. This includes the qualifying information for employment, income, and assets for each borrower. When a lender receives the validation of data from DU,…
