Conforming products update, effective immediately.
fannie mae sel-2019-09
NewRez will align with the following updates in Fannie Mae announcement SEL-2019-09:
- Clarification for inclusion (or exclusion) of a bridge loan payment in the monthly debt obligations and DTI for loan qualification.
- Non-applicant debt clarification
In addition, Fannie Mae have published 2019 Titling Requirements for Manufactured Homes containing information on titling manufactured homes as a real property for each state.
Freddie Mac 2019-22
NewRez will align with the following updates in Freddie Mac Bulletin Mac 2019-25:
- Clarification and guidance for income-based resales restrictions:
- 2-unit eligibility
- Cash-out refinance eligible with subsidy provider or program administrator approval
- Down payment calculation
- Guidance for appraisal adjustments, recognizing that large adjustments are common and acceptable in rural markets.
- Condominium Projects with approved Project Waiver Requests (PWR) are eligible as long as the PWR does not expire within 220 days after the Note date.
freddie mac 2019-25
NewRez will align with the following updates in Freddie Mac Bulletin Mac 2019-25:
- Manufactured homes are eligible when no borrower has a credit score, per LPA guidelines.
- Updates and clarification made to rental income for properties that have not been in service for a full tax year.
- A Leave and Earnings statement may be used for verbal confirmation of employment and may be dated 120 days prior to the Note date (previously 30 days).
- No-Cash-Out Refinance: clarified that proceeds may be used to pay down junior liens (that were used to acquire the property). Remaining balance must be subordinated.
- Frozen credit: No more that one credit repository may be frozen.
In addition, the product profiles and/or overlay matrix has been updated with the following:
- Permit singlewide manufactured homes in a Fannie Mae PERS approved project in compliance with Fannie Mae and Freddie Mac requirements.
- Added co-ops as an ineligible property type.
- Added barndominiums and shouses as ineligible, unique property types.
- Added 4506-T requirements for NewRez underwritten loans.
- Loans without an address are not eligible (prequalification not permitted).
- Properties listed for sale must be taken off the market before the disbursement date (previously Note date) for Fannie Mae refinance transactions. The requirement has been removed from the Home Possible product profile.
Please reference the NewRez Product Profiles for the changes outlined in this announcement.