TIGHTER GUIDELINES...
<strong>reduced LTV ratios for all three- and four-unit properties;
•
reduced HCLTV ratios for all loans;
•
reduced LTV ratios for second home properties;
•
reduced LTV and CLTV ratios for MCM loans (if subordinate lien is not a Community Seconds® );
•
reduced LTV ratios for HomeStyle Renovation investment properties; and
•
reduced LTV ratios for certain Streamlined Refinance Products.
Due to the current market environment and minimal interest in this product, Fannie Mae is retiring the Streamlined Purchase Money Mortgage product.
Excessive Mortgage Delinquency
Selling Guide, Part X, Chapter 3, Section 302.09, Previous Mortgage Delinquency
Loans with excessive prior mortgage delinquencies will not be eligible for delivery to Fannie Mae. Excessive prior mortgage delinquency is defined as any mortgage tradeline that has one or more 60-, 90-, 120-, or 150-day delinquency reported within the 12 months prior to the credit report date. This policy applies to both manually underwritten mortgage loans and loan casefiles underwritten with DU. Refer to the DU Version 7.0 Release Notes for additional information.
Effective Date
This change is effective for all manually underwritten mortgage loans with application dates on or after June 1, 2008 and for loan casefiles submitted to DU Version 7.0. Mortgage loans that were underwritten to our prior guidelines must be purchased by Fannie Mae on or before October 31, 2008 for whole loans, or delivered into MBS pools with issue dates on or before October 1, 2008.
</strong>
