NewRez will align with Fannie Mae Announcement SEL-2019-08, effective for new loan case files submitted to Desktop Underwriter on or after the weekend of December 7, 2019.
Homeownership education requirements
With this update, at least one borrower must complete homebuyer education for the following transactions:
- HomeReady purchase transactions when all occupying borrowers are first-time homebuyers, regardless of the LTV ratio; or
- Purchase transactions with LTV, CLTV, or HCLTV rations greater than 95% when all borrowers are first-time homebuyers.
retail income policy
Fannie Mae has update their rental income policy when determining the amount of rental income from the subject property that can be used for qualifying when the borrower is purchasing a two- to four-unit property or one- to four-unit investment property.
This policy does not apply to HomeReady loans with rental income for an accessory unit.
Please reference the NewRez Lending Library for the changes outlined in this announcement.