Here are two more items I notice that have changed in regards to DU 7
1-The level of risk associated with each amortization type is as follows, starting with those loan types representing the least amount of risk:
• Fully amortizing fixed-rate mortgages;
• Fully amortizing five-year, seven-year, and ten-year adjustable-rate mortgages;
• Six-month, one-year, and three-year ARMs as well as fixed-rate interest-only mortgages; and
• Interest-only ARMs and balloon
2. DU will continue to use the amortization term of the loan in its risk assessment for fixed rate mortgages, but will no longer look at the loan term in combination with LTV.\
Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to www.naultfhatips.blogspot.com or www.mtgview.blogspot.com
Friday, June 20, 2008
Thursday, June 19, 2008
DU 7 Tips
Fannie Mae News (continued)
DU 7 has made changes each day I have been pointing out two things I noticed different from DU 5 version to the current.
1- Purchase transactions continue to represent less risk than refinance transactions. When evaluating refinance transactions, a limited cash-out refinance transaction represents less risk than a cash-out refinance transaction, and lower LTV/CLTV refinance transactions will be viewed as representing less risk than higher LTV/CLTV refinance transactions. DU will no longer analyze the UPB increase when assessing the risk of a refinance transaction, but will use the purpose of refinance entered on the loan application, when the loan purpose is refinance. On construction-to-permanent transactions, DU will continue to determine the purpose of refinance based on the amount of cash theborrower is receiving at closing.
2-DU will continue to use the LTV and CLTV in its risk assessment; however, the existence of mortgage insurance will no longer be considered a mitigating factor
Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to www.naultfhatips.blogspot.com or www.mtgview.blogspot.com
DU 7 has made changes each day I have been pointing out two things I noticed different from DU 5 version to the current.
1- Purchase transactions continue to represent less risk than refinance transactions. When evaluating refinance transactions, a limited cash-out refinance transaction represents less risk than a cash-out refinance transaction, and lower LTV/CLTV refinance transactions will be viewed as representing less risk than higher LTV/CLTV refinance transactions. DU will no longer analyze the UPB increase when assessing the risk of a refinance transaction, but will use the purpose of refinance entered on the loan application, when the loan purpose is refinance. On construction-to-permanent transactions, DU will continue to determine the purpose of refinance based on the amount of cash theborrower is receiving at closing.
2-DU will continue to use the LTV and CLTV in its risk assessment; however, the existence of mortgage insurance will no longer be considered a mitigating factor
Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to www.naultfhatips.blogspot.com or www.mtgview.blogspot.com
Wednesday, June 18, 2008
Freddie Mac News
You are reading key updates from Freddie Mac Today's News...
With the June 17 Single-Family Seller/Servicer Guide (Guide) Bulletin, we continue to provide you with additional information about our requirements as you manage your origination and servicing operations to meet the needs of borrowers in today’s market. The Bulletin announces the retirement of our temporary selling requirements for mortgages affected by Hurricanes Katrina and Rita, and includes updated Guide exhibits to incorporate new state laws and authorized changes applicable to Uniform Instruments.
For Servicers, the Bulletin includes important information about increases to our foreclosure time lines in Maryland and Massachusetts that stemmed from recent changes in foreclosure law.
You’ll find complete details on these changes in today’s Guide Bulletin available on FreddieMac.com. It is important that you’re familiar with all changes announced in the Bulletin, including the following changes we are making to our:
Selling requirements:
Announcing that our temporary selling requirements for mortgages affected by Hurricanes Katrina and Rita will not be extended, and reminding Sellers that our temporary special collateral requirements for these mortgages remain in effect until further notice
Revising Guide Exhibits 4 and 5 to incorporate new state laws and authorized changes that are applicable to the Uniform Instruments listed in these exhibits
Reminding Sellers that they must provide information regarding the source and amount of secondary financing for all mortgages with secondary financing when completing Forms 11 and 13SF at delivery
Reinforcing the requirement that the mortgage file contain all relevant title policy endorsements
Adding a reference to Texas Constitution Article XVI Section 50, which describes the determination of fair market value for Texas Equity Section 50(a)(6) Mortgages
Selling and servicing requirements:
Updating existing Seller/Servicer obligations to comply with all applicable laws and regulations by adding a specific reference to compliance with The Bank Secrecy Act, the Money Laundering Control Act and Title III of the USA PATRIOT Act
Servicing requirements:
Extending our allowable foreclosure time lines in Maryland and Massachusetts in response to recent changes in foreclosure law, and to help Servicers provide assistance to borrowers facing financial hardships.
Providing additional guidance regarding reimbursement of condominium, homeowners association (HOA) and PUD special assessments
Revising and moving instructions to Servicers regarding their obligation to notify Freddie Mac in the event a disaster affects their operations
Revising the Guide to reflect that all property valuation requests must be submitted to us via our BPOdirect® Web site
Removing Section 81.4, Preparation of documents for delivery of second mortgages, as we do not currently purchase second mortgages
Updating the Guide to reflect the new address for BPO cost reimbursements and REO redemption proceeds, which resulted from the JP Morgan Chase acquisition of Bank One
Updating the designated counsel/trustee list to remove Stern, Lavinthal, Frankenberg & Norgaard, L.L.C. of New Jersey that ceased accepting new referrals under the Designated Counsel Program referrals as of May 1, 2008
We encourage you to review the entire Guide Bulletin to become familiar with all changes and updates to the Guide. Read more
Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to www.naultfhatips.blogspot.com or www.mtgview.blogspot.com
With the June 17 Single-Family Seller/Servicer Guide (Guide) Bulletin, we continue to provide you with additional information about our requirements as you manage your origination and servicing operations to meet the needs of borrowers in today’s market. The Bulletin announces the retirement of our temporary selling requirements for mortgages affected by Hurricanes Katrina and Rita, and includes updated Guide exhibits to incorporate new state laws and authorized changes applicable to Uniform Instruments.
For Servicers, the Bulletin includes important information about increases to our foreclosure time lines in Maryland and Massachusetts that stemmed from recent changes in foreclosure law.
You’ll find complete details on these changes in today’s Guide Bulletin available on FreddieMac.com. It is important that you’re familiar with all changes announced in the Bulletin, including the following changes we are making to our:
Selling requirements:
Announcing that our temporary selling requirements for mortgages affected by Hurricanes Katrina and Rita will not be extended, and reminding Sellers that our temporary special collateral requirements for these mortgages remain in effect until further notice
Revising Guide Exhibits 4 and 5 to incorporate new state laws and authorized changes that are applicable to the Uniform Instruments listed in these exhibits
Reminding Sellers that they must provide information regarding the source and amount of secondary financing for all mortgages with secondary financing when completing Forms 11 and 13SF at delivery
Reinforcing the requirement that the mortgage file contain all relevant title policy endorsements
Adding a reference to Texas Constitution Article XVI Section 50, which describes the determination of fair market value for Texas Equity Section 50(a)(6) Mortgages
Selling and servicing requirements:
Updating existing Seller/Servicer obligations to comply with all applicable laws and regulations by adding a specific reference to compliance with The Bank Secrecy Act, the Money Laundering Control Act and Title III of the USA PATRIOT Act
Servicing requirements:
Extending our allowable foreclosure time lines in Maryland and Massachusetts in response to recent changes in foreclosure law, and to help Servicers provide assistance to borrowers facing financial hardships.
Providing additional guidance regarding reimbursement of condominium, homeowners association (HOA) and PUD special assessments
Revising and moving instructions to Servicers regarding their obligation to notify Freddie Mac in the event a disaster affects their operations
Revising the Guide to reflect that all property valuation requests must be submitted to us via our BPOdirect® Web site
Removing Section 81.4, Preparation of documents for delivery of second mortgages, as we do not currently purchase second mortgages
Updating the Guide to reflect the new address for BPO cost reimbursements and REO redemption proceeds, which resulted from the JP Morgan Chase acquisition of Bank One
Updating the designated counsel/trustee list to remove Stern, Lavinthal, Frankenberg & Norgaard, L.L.C. of New Jersey that ceased accepting new referrals under the Designated Counsel Program referrals as of May 1, 2008
We encourage you to review the entire Guide Bulletin to become familiar with all changes and updates to the Guide. Read more
Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to www.naultfhatips.blogspot.com or www.mtgview.blogspot.com
Tuesday, June 17, 2008
Fannie Mae News
Fannie issues two new bulletins.
08-13 Amends these Guides: Selling
2008 Area Median Income Estimates, Interest-Only Clarification, Revised Form 1008, FHASecure Special Feature Code read more
Announcement 08-13 June 13, 2008
Amends these Guides: Selling
2008 Area Median Income Estimates, Interest-Only Clarification, Revised Form 1008, FHASecure Special Feature Cod read more
Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to www.naultfhatips.blogspot.com or www.mtgview.blogspot.com
08-13 Amends these Guides: Selling
2008 Area Median Income Estimates, Interest-Only Clarification, Revised Form 1008, FHASecure Special Feature Code read more
Announcement 08-13 June 13, 2008
Amends these Guides: Selling
2008 Area Median Income Estimates, Interest-Only Clarification, Revised Form 1008, FHASecure Special Feature Cod read more
Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to www.naultfhatips.blogspot.com or www.mtgview.blogspot.com
Monday, June 9, 2008
DU User Guide Changes
DU News
Fannie Mae has annotated their DU Users Guide as of May 2008
I have also added this link to my blog under DU tip and then "Helpful Conventional Websites"
I thought I would point out a couple of changes for the next little while in regards to DU 7 here are two changes I noticed when reading the guide.
1-The level of risk associated with each property type is as follows, starting with those property types representing the least amount of risk:
• One-unit properties that are not in a cooperative project and are not attached condominiums;
• Attached condominiums, units incooperative projects, and two-unit properties;
• Three- and four-unit properties; and
• Manufactured homes, including those in a condominium or cooperative project
2-Self-employment will no longer be a risk factor with DU Version 7.0.
Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to www.naultfhatips.blogspot.com or www.mtgview.blogspot.com
Fannie Mae has annotated their DU Users Guide as of May 2008
I have also added this link to my blog under DU tip and then "Helpful Conventional Websites"
I thought I would point out a couple of changes for the next little while in regards to DU 7 here are two changes I noticed when reading the guide.
1-The level of risk associated with each property type is as follows, starting with those property types representing the least amount of risk:
• One-unit properties that are not in a cooperative project and are not attached condominiums;
• Attached condominiums, units incooperative projects, and two-unit properties;
• Three- and four-unit properties; and
• Manufactured homes, including those in a condominium or cooperative project
2-Self-employment will no longer be a risk factor with DU Version 7.0.
Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to www.naultfhatips.blogspot.com or www.mtgview.blogspot.com
Subscribe to:
Posts (Atom)