HomeBridge is enhancing its current policy on collection and charge-off accounts on the Agency Conforming and High Balance programs to align with Fannie Mae guidelines. These enhancements are effective immediately and apply to loans currently in the pipeline as well as new submissions.
Requirements for collection and charge-off accounts have been enhanced as follows:
• One Unit Owner-Occupied Primary Residence
– The borrower is not required to pay off outstanding collections or charge-offs regardless of the amount.
• Two-to-Four Unit Owner-Occupied Primary Residence and Second Home
– If the combined total of collections and charge-offs accounts is greater than $5,000, the accounts must be paid in full prior to or at closing.
At underwriter discretion payoff of collection/charge-off accounts may be required.
As a reminder, the following still applies:
• Past-due accounts (that have not gone to collection) must be brought current.
• Investment Property
– Individual accounts greater than or equal to $250.00 or, if the combined balance of all accounts is greater than $1000.00, the accounts must be paid in full prior to or at closing.
The Agency Conforming and Agency High Balance matrices have been updated with this information and posted on the HomeBridge website at www.homebridgewholesale.com.
If you have any questions, please contact your Account Executive.
