On June 30th, Fannie Mae published an updated Selling
Guide that includes a number of key policy changes that will simplify our
requirements and result in less documentation from your borrowers.
Below are some of the key changes:
·
Removal of
conversion of principal residence policy: Fannie Mae removed the additional reserves and rental income
overlays that were required when borrowers are selling or renting out their
previous home. The 30% equity in the departing residence is no longer required
to use rental income to qualify.
·
Verification of
stocks, bonds, and mutual funds: Borrowers using verified stocks, bonds
and mutual funds to complete a transaction no longer need to document that the
assets were liquidated when the verified amount is at least 20% more than is
needed for the transaction. In addition, borrowers can now get 100% credit for
the value of these accounts toward reserves (up from 70%), which means more
assets can be factored into qualifying the borrower.
·
Unreimbursed employee
business expenses: No
documentation or deduction of 2106 expenses from monthly income is required for
salary, bonus, overtime, or commission income of less than 25% of the monthly
income. This mirrors the existing Prospect Mortgage Policy.
These changes are effective immediately and will be implemented in DU the weekend of August 15, 2015.
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