du_refi_plus_faq by qingyunliuliu

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									                                                   DU Refi Plus FAQ
  CATEGORY                          QUESTION                                                 ANSWER
Appraisal        Are Property Fieldwork Waivers acceptable?           Yes, DU will waive the requirement of an appraisal or
Fieldwork Waiver                                                      exterior-only property inspection for certain DU Refi
                                                                      Plus loans.
                                                                      If the Property Fieldwork Waiver is not offered, a full
                                                                      1004 is required.
                  How do you know if a DU Refi Plus Property          If a loan casefile is eligible for the DU Refi Plus
                  Fieldwork Waiver is offered on a loan casefile?     Property Fieldwork Waiver, the loan casefile will
                                                                      receive two fieldwork messages:
                                                                      1. One message indicating that the loan is eligible for
                                                                      delivery to Fannie Mae without an appraisal or
                                                                      property inspection, if the DU Refi Plus property
                                                                      fieldwork waiver is exercised by the lender; and
                                                                      2. A second message indicating the minimum
                                                                      fieldwork required if the Property Fieldwork Waiver
                                                                      option is not executed.
                  Was there a change to DU for DU Refi Plus loans      Yes.
                  with regard to whether or not the property was       Fannie removed borrower affidavit that property was
                  listed for sale?                                     not listed at time of application with 09-13 bulletin.
                                                                       DU was updated weekend of May 2nd to suppress the
                                                                       message reminding lenders of the listing history
                                                                       requirement.
                  Is there a fee associated with the Property          A fee of $75 will be charged at closing for each
                  Fieldwork Waiver?                                    exercised waiver.
                  If a loan casefile receives an offer for the DU Refi Yes.
                  Plus property fieldwork waiver, are there            If the file contains an appraisal or if warranted by the
                  situations in which the underwriter would still      underwriter.
                  need to obtain an appraisal?
Closing           May closing costs and prepaids be rolled into the Yes.
                  loan amount?
Condos            Do we need to recertify condominium projects? A review will not be required except to confirm the
                                                                       property is not a condo hotel or motel
                  Does the underwriter/closer still need to confirm Yes. Confirmation of hazard, flood, liability, and
                  adequate insurance coverage for the project or fidelity insurance coverage is required.
                  unit?
Credit History    What is an acceptable mortgage payment               The existing mortgage must be current (0 x 30 during
                  history?                                             past 12 months or life of loan if less than 12 months)
                                                                       • Bankruptcy: 4 years since discharge, multiple
                                                                       Bankruptcies in the last 7 Years are not allowed.
                                                                       • Foreclosure: 7 years since discharge.

Credit Score      What is the minimum credit score requirement?       620 regardless of DU

Documentation     What is the minimum income documentation            • Salary/Bonus/Overtime - one current paystub
                  requirement?                                        equivalent to 30-days, current year W2 and a verbal
                                                                      VOE.
                                                                      • Self-employed/Commission - one year's tax returns.


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                                                 DU Refi Plus FAQ
Documentation   What is the minimum asset documentation            As determined by DU.
(Continued)     requirement?
                Is there any additional documentation that is  • A payoff statement is required at the time of
                required?                                      underwrite.
                                                               • 4506T must be signed and processed.
Borrower        What drives DU Refi Plus eligibility?          • Fannie Mae owned (prior to March 1, 2009)
Eligibility                                                    • Rate/term refinance
                                                               • Same borrower(s) on current loan
                                                               • Acceptable mortgage payment history.
                Is there a way to determine whether Fannie Mae Yes. Fannie Mae has an online tool, the Fannie Mae
                is the investor on an existing loan other than Loan Lookup, for borrowers to determine whether
                having the borrower contact their servicer?    Fannie Mae is the investor on their loan. The Loan
                                                               Lookup is available on
                                                                   FannieMae Lookup.
                If the Fannie Mae Loan Lookup returns a “Match     A “Match Found” result in the Fannie Mae Loan
                Found” result, why might the underwriter not get   Lookup only confirms that Fannie Mae owns or
                DU Refi Plus messaging for a refinance             guarantees a loan at the entered address; it does not
                application for a loan at the same address?        confirm that the loan qualifies for DU Refi Plus.

                How does DU determine that our subject is a         Borrower(s) SSN, property address (it is critical that
                current FNMA customer?                              SSNs and property address are correct, including unit
                                                                    #, if applicable).
                When DU matches the subject property address DU uses the “standardized” property address to
                on the loan casefile to an existing eligible Fannie establish a match with an existing eligible Fannie Mae
                Mae loan, does DU require an exact match on the loan. In the example above, 123 Main St. and 123
                property address? For example, would 123 Main Main Street would be considered a match.
                St. be matched to 123 Main Street?

                If the subject property contains a unit number,   For DU to match the property to an existing eligible
                can DU match the property to an existing eligible Fannie Mae loan, the subject property data for the
                Fannie Mae loan?                                  existing loan must also contain the unit number.

                What transactions may represent a benefit to the • Reduction in monthly principal and interest- 15 year
                borrower?                                        to 30 year
                                                                 • Moving into a more stable mortgage product ARM
                                                                 to fixed
                                                                 • Building equity faster - 30 year to 15 year term
                May a borrower be added or removed from the • Borrower(s) on existing mortgage must match
                loan?                                            borrower(s) on the new loan.
                                                                 • Borrower(s) may be added in the new transaction
                                                                 provided the original borrowers remain on the loan.
                                                                 • Borrower(s) may not be removed in the new
                                                                 transaction.




                                                                                                         June 2009 Page 2 of 3
                                                  DU Refi Plus FAQ
Mortgage         If mortgage insurance is required for the new     • FAMC will accept loans that don't require MI.
Insurance        loan can we proceed?                              • If the original LTV on the existing Fannie Mae loan is
                                                                   less than or equal to 80%, MI is not required.
                                                                   • If the original LTV on the existing Fannie Mae loan
                                                                   was greater than 80%, and the existing loan does not
                                                                   currently have MI (for example, if MI was canceled or
                                                                   terminated), MI is not required.
                                                                   • Loans requiring MI will not be eligible.



Non Occupant     Are non-occupant borrowers allowed?               • Allowed if an existing borrower on the note is no
Borrowers                                                          longer occupying the subject property.
                                                                   • Adding a new non-occupant co-borrower is not
                                                                   allowed.
Number of Loans What is the maximum number of DU Refi Plus         One (1) primary residence.
                loans that a borrower can refinance?               To be eligible for DU Refi Plus, the existing loan must
                                                                   have been delivered to Fannie Mae before March 1,
                                                                   2009. Once an existing loan delivered before this date
                                                                   has been refinanced, the new loan will not be eligible
                                                                   for further DU Refi Plus consideration because the
                                                                   loan will have been delivered after the March 1, 2009
                                                                   cutoff date.
Number of        What is the maximum number of DU Refi Plus        One (1) primary residence.
Properties       loans FAMC will provide to one (1) borrower?

Occupancy Types What are allowable occupancy types?                Primary Residence

Pricing          Is there separate pricing for this product?       Yes.
                                                                   See FAMC Rate Sheet for Refi Plus pricing.
Pricing Engine   How does a broker enter a DU Refi Plus into the   The loan will be entered into the Pricing Engine just
                 Pricing Engine?                                   like a regular Conventional Conforming Fixed Rate
                                                                   with eligibility rules as applicable for the product.

Subordinate      Can you pay off subordinate financing with DU     No, all existing subordinate lines must be
Financing        Refi Plus?                                        resubordinated. No new liens may be added.
Loan Term        What terms are currently available?               15 and 30 Year Fixed
Underwriting     Can we do a manual underwrite?                    No. DU must indicte DU Refi Plus on the DU Findings.




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