HomeBridge is reminding brokers that Fannie Mae will be upgrading to DU Version 9.1 on November 16, 2013 as announced in Fannie Mae Selling Guide Announcement 2013-07 issued September 24, 2013.
The following applies to loans submitted to DU version 9.1:
• A maximum 95% LTV will be allowed on the Agency Conforming program (currently max 97%)
• 7/1 and 10/1 ARMs will be qualified at the greater of the fully indexed rate or the Note rate (currently qualified at Note rate).
DU Refi Plus Specific
• HomeBridge is lowering our credit score requirement on the DU Refi Plus program to a minimum of 620 regardless of occupancy type/LTV (currently ranges from 640-680).
• Loans with a Note date prior to June 1, 2009 are now eligible (currently loan had to be sold to Fannie Mae prior to June 1, 2009).
• Appraisal requirement per DU Findings.
NOTE: DU will no longer issue an estimated value message. The broker submitted DU value and the 1003 value must match. For value discrepancies between the broker submitted DU and the 1003, a 2055 or appraisal can be used to establish value.
• While Fannie Mae is removing the waiting period for borrowers with a significant derogatory credit event HomeBridge will continue to require the standard Fannie Mae waiting period for the event type. Refer to the DU Refi Plus matrix, Derogatory Credit topic for waiting periods.
NOTE: Exceptions to the waiting period requirement will be considered on a case-by-case basis.
• If a loan is determined to be a higher priced mortgage loan (HPML) the maximum DTI is 45%. Loans with a DTI greater than 45% are ineligible. No exceptions will be granted.
The HomeBridge Agency Conforming, High Balance and DU Refi Plus guidelines will be updated with this information and posted on the HomeBridge website at www.homebridgewholesale.com.
If you have any questions, please contact your Account Executive.
